Chinese government to sell sovereign bonds worth $340bn by year-end

The issuance of a total of 3.45 trillion yuan in local government special bonds for infrastructure has been completed by the end of June. (Shutterstock)
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Updated 29 September 2022
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Chinese government to sell sovereign bonds worth $340bn by year-end

RIYADH: China will sell sovereign bonds totalling $340 billion in the final months of this year as the Asian giant taps the remaining annual quota and refinances maturing special bonds.

The government has issued 1.09 trillion yuan ($151 billion) of general bonds so far this year ⁠— less than 40 percent of the budgeted central deficit of 2.75 trillion yuan for 2022, Bloomberg reported based on its calculations.

According to the report, the government is expected to issue a total of 2.45 trillion yuan in sovereign bonds between October and December, which comprises 1.66 trillion yuan of new bonds and 786 billion yuan to refinance maturing special debts.

Meanwhile, Reuters, citing people familiar with the matter, said that the treasury bond issuance plan was made during a meeting of the finance ministry on Wednesday.

According to the Reuters report, the ministry also urged local governments to complete issuing the roughly 500 billion yuan in special bonds by the end of October under carryover quotas from previous years, the sources said.

The issuance of a total of 3.45 trillion yuan in local government special bonds for infrastructure has been completed by the end of June.

Amid weak consumption recovery and softening export growth, authorities are doubling down on an infrastructure push, dusting off an old playbook by issuing debt to fund big public works projects to revive the economy.

China’s economy generally recovered and stabilized in the third quarter and the country will push ahead with its economic program in the fourth, state media quoted Li Keqiang, premier of the State Council of the People’s Republic of China, as saying on Wednesday.

But with few signs China will significantly ease its zero-COVID policy soon, many analysts expect the economy to grow by just 3 percent this year, which would be the slowest since 1976, excluding the 2.2 percent expansion during the initial COVID hit in 2020.

(With input from Reuters)


Iranian Revolutionary Guards officer killed in Syria, SNN reports

Updated 8 sec ago
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Iranian Revolutionary Guards officer killed in Syria, SNN reports

DUBAI: Iranian Revolutionary Guards Brig. Gen. Kioumars Pourhashemi was killed in the Syrian province of Aleppo by “terrorists” linked to Israel, Iran’s SNN news agency reported on Thursday without giving further details.
Rebels led by Islamist militant group Hayat Tahrir Al-Sham on Wednesday launched an incursion into a dozen towns and villages in northwest Aleppo province controlled by Syrian President Bashar Assad.

Israel-Hezbollah ceasefire unlikely to hold: UK ex-spy chief

Updated 1 min 49 sec ago
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Israel-Hezbollah ceasefire unlikely to hold: UK ex-spy chief

  • Richard Dearlove: Agreement suits both parties in ‘short to medium term’
  • Deal leaves Iran ‘exposed’ as its Lebanese ally is temporarily incapacitated

LONDON: The ceasefire deal struck this week between Israel and Hezbollah is unlikely to hold, a former head of MI6 has warned.

Richard Dearlove, who headed the British intelligence service from 1999 to 2004, told Sky News that the deal, which came into effect on Wednesday, is a “retreaded agreement from 2006.”

That initial deal was designed to keep Hezbollah away from the border region with Israel, overseen by the Lebanese military and the UN, but in effect it “did absolutely nothing,” he said.

This week’s deal suits both Israel and Hezbollah “in the short to medium term,” Dearlove said, adding: “The Israelis must know how much of the infrastructure of Hezbollah they’ve taken down … They haven’t taken it down completely, but maybe the Lebanese state can reassert some of its authority as the government of Lebanon and keep Hezbollah to an extent under control. We just have to wait and see what happens.”

He said the ceasefire deal will be a blow to Hezbollah’s backer Iran, leaving the latter “exposed” with one of its allies temporarily incapacitated.

But he warned that this could escalate into “direct” confrontation between Israel and Iran were the latter to launch another ballistic missile attack.


Riyadh fintech forum ‘a turning point’ in Swiss-Saudi partnership

Updated 11 min 41 sec ago
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Riyadh fintech forum ‘a turning point’ in Swiss-Saudi partnership

RIYADH: The Switzerland Embassy in coordination with the Saudi Ministry of Investment and Fintech Saudi organized the first Saudi-Swiss Fintech Forum in Riyadh.

Swiss and Saudi experts took part in the event on Nov. 25-26 under the theme “Connecting Leaders across Borders.”

The forum provided a platform for the exchange of ideas and the rethinking of traditional financial models.

Switzerland is an established financial hub and Saudi Arabia has the largest financial services industry in the Middle East.

Swiss Ambassador to Saudi Arabia, Yasmine Chatila Zwahlen, said the forum marked a turning point in the development of the partnership between Switzerland and Saudi Arabia.

Nezar Al-Haidar, CEO of Fintech Saudi, said the collaboration between Fintech Saudi and its Swiss counterparts creates opportunities for knowledge sharing, and paves the way for access to new markets.

The leaders are working to make Saudi Arabia a global fintech hub, and this collaboration deepens the ties between our ecosystems, he added.

Arab News met Saudi and Swiss experts at the forum, who discussed finance, market opportunities and the importance of Swiss expertise in Saudi Arabia’s fintech development.

Yazeed Al-Shamsi, co-founder and CEO of Ejari, said: “Our perception of Swiss cooperation is positive. Fintech is the sector that has received the most funding in Saudi Arabia in the last three or four years. There is still room for growth.”

Al-Shamsi said that the banking and insurance sectors contribute significantly to gross domestic product, and there are still opportunities in wealth management, investment, financing, and alternative financing. 

Abdulmajeed Al-Askar, CEO of MoneyMoon, told Arab News that Saudi companies see Swiss-Saudi cooperation as a chance to bridge two diverse but complementary markets.

Switzerland has a long history of financial expertise, while Saudi Arabia is becoming a hub of entrepreneurial energy and digital adoption.

This collaboration is about building long-term partnerships that enable both sides to innovate and scale faster, Al-Askar said.

Saudi Arabia has many talented financial leaders and professionals, he added.

“By combining expertise with a forward-thinking approach, we can create an ecosystem that sets new benchmarks. Saudi Arabian leaders can design solutions tailored to the population’s needs. With new talent, we are creating an entirely new financial paradigm for the region.” 

Eva Selamlar, head of the Swiss Financial Innovation Office, said that Swiss companies can contribute their expertise to help Saudi Vision 2030. 

Andreas Iten, CEO of Tinety, said: “There are many opportunities in this market. The regulatory framework is favorable, so Swiss companies should look at it because there are great opportunities and a big need for digital solutions.”

The forum explored the opportunity for Switzerland and the Kingdom to advance their ambitions in the financial technology sector, in line with Vision 2030.


Over 1,100, including 60 ‘illegal’ Afghan nationals, held in Pakistan after pro-Imran Khan protests

Updated 12 min 49 sec ago
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Over 1,100, including 60 ‘illegal’ Afghan nationals, held in Pakistan after pro-Imran Khan protests

  • Government has accused PTI of deploying Afghan nationals to take part in anti-government protests
  • PTI says at least 20 of its supporters have been killed in security crackdown, government says four troops dead

ISLAMABAD: Authorities have arrested over 1,100 supporters of jailed former prime minister Imran Khan who stormed the capital this week to demand his release, Regional Police Officer Rawalpindi Babar Sarfraz Alpa said on Thursday, saying 60 Afghan nationals living illegally in the country were among those being held. 

Clashes broke out between law enforcers and supporters of Khan’s Pakistan Tehreek-e-Insaf (PTI) party this week after they set out for Islamabad in caravans from different parts of the country to demand the release of Khan, who has been in jail since August 2023.

The government has accused the PTI of deploying Afghan nationals to take part in the anti-government protests.

Speaking at a news conference, Alpa said protesters shot directly at police officers and used teargas while police showed restraint. 

“Police have registered 32 cases in the total region and till now have arrested 1,151 suspects successfully,” Alpa told reporters. “When these suspects’ data was checked, it came to light that there were 64 Afghans among them, out of which four have resident cards and 60 are illegal [nationals],” he said. 

Police and Khan supporters clashed in Rawalpindi city near Islamabad on Sunday and Monday night, with the government saying four troops were killed. The protesters were dispersed after a late night raid on Wednesday, after which the PTI said at least 20 of its supporters had been killed. 

Alpa said at least 170 police officers had been injured in the protests, including senior police officials. 

On Wednesday, soon after the Islamabad police chief said Afghans were among those arrested in the protests, Interior Minister Mohsin Naqvi announced Afghan citizens would not be allowed to live in the federal capital after Dec. 31 unless they were issued a special certificate by the district administration.

The move is the latest blow to Afghans living in Pakistan, with nearly 800,000 that Islamabad says were residing in the country ‘illegally’ expelled since November last year when the government launched a deportation drive that has drawn widespread criticism from international governments and rights organizations.

Authorities began expelling illegal foreigners from Nov. 1, 2023, following a spike in bombings which the Pakistan government says were carried out by Afghan nationals or by militants who crossed over into Pakistan from neighboring Afghanistan. Islamabad has also blamed illegal Afghan immigrants and refugees for involvement in smuggling and other crimes. The Taliban government in Kabul says Pakistan’s security and other challenges are a domestic issue and cannot be blamed on the neighbor.


Israeli FM: ‘No justification’ for ICC to take steps against Israeli leaders

Updated 25 min 33 sec ago
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Israeli FM: ‘No justification’ for ICC to take steps against Israeli leaders

  • The foreign minister also said Israel would finish the war in Gaza when it “achieves its objectives”

PRAGUE: Israeli foreign minister Gideon Saar said on Thursday that the ICC had “no justification” for issuing arrests warrants for Israeli leaders, in a joint press conference with Czech Foreign Minister Jan Lipavsky.
Saar told Reuters Israel has appealed the decision and that it sets a dangerous precedent.
The foreign minister also said Israel would finish the war in Gaza when it “achieves its objectives” of returning hostages being held by Hamas in Gaza and ensuring the Iranian-backed group no longer controls the strip. Saar said Israel does not intend to control civilian life in Gaza and that he believes peace is “inevitable” but can’t be based on “illusions.”