Investing.com -- European chipmakers dipped on Friday, tracking a fall in some of their Asian peers, after China's Semiconductor Manufacturing International Corp (HK:0981) posted an 80% slide in its quarterly income.

SMIC’s profit attributable to owners fell to about $94 million in the three months to Sept. 30, tumbling from the $470.8 million seen in the same period last year.

Quarterly revenue declined by 15% to $1.62 billion, while the chipmaker’s gross margin nearly halved to 19.8% from 38.9% last year.

This is the first time the gauge has turned negative in 25 years, when records began, according to data compiled by Refinitiv Eikon. It suggests foreign companies may be taking their money out of the country, instead of re-investing in their operations.

The SAFE data is organized according to whether an investment is an asset or a liability for China. Direct investment liabilities include profits belonging to foreign companies that have not yet been repatriated or distributed to shareholders, as well as foreign investment in financial institutions, according to the government.

China’s main measure of FDI, which is released by the Commerce Ministry, showed a decline of 8.4% in the first nine months of this year, accelerating from a 5.1% drop in the first eight months.

China hasn’t been this scary for investors in 25 years
By Laura He, CNN
Updated 5:30 AM EST, Mon November 6, 2023

Hong Kong
CNN
—
The world’s second largest economy is struggling to attract foreign companies and investments, despite Beijing’s efforts to address its myriad economic challenges, according to new data from China.

A gauge of foreign direct investment (FDI) into China has slipped into the red for the first time since 1998, underscoring the country’s failure to stem capital outflows.

Direct investment liabilities, a measure of FDI, stood at minus $11.8 billion in the third quarter, according to data published by the State Administration of Foreign Exchange (SAFE) on Friday. In the third quarter of 2022, China’s direct investment liabilities was at $14.1 billion.

But Beijing has limited headroom to loosen monetary policy further, given that interest rates are already at record lows. Any further loosening in policy will also dent the yuan, which is trading close to one-year lows.

Still, the government plans to shore up growth with a massive 1 trillion yuan ($136 billion) bond issuance in the fourth quarter.

Chinese consumer sentiment has worsened substantially this year, keeping retail spending and CPI inflation under pressure.

China was the sole major economy working to shore up inflation this year, as most of its global peers struggled to contain a post-COVID inflationary boom.

This trend was also evident in trade figures released by the country this week, which showed exports sinking more than expected, while imports unexpectedly grew.

Thursday’s weak inflation readings indicate that Beijing will likely have to do more to shore up local economic activity, especially as the country’s key manufacturing sector faces an extended downturn. October was also the second time that both CPI and PPI inflation shrank this year.

Chinese manufacturing activity unexpectedly contracted in October, recent data showed, as mild improvements in local demand were largely offset by worsening economic conditions in China’s biggest export destinations.

This trend was also evident in trade figures released by the country this week, which showed exports sinking more than expected, while imports unexpectedly grew.

Weakness in the yuan also limited overall spending, while consumers also remained on edge over any more economic headwinds in the country, especially as business activity remained weak.

Producer price index (PPI) inflation shrank 2.6% in October, slightly better than expectations for a drop of 2.8%, but contracted from the prior month’s reading of 2.5%. PPI has now shrunk for a 13th consecutive month.

Month-on-month, CPI inflation shrank 0.1%, reversing the 0.2% rise seen in September.

October’s data shows that continued stimulus measures from Beijing and some pent-up demand did little to improve overall spending. CPI inflation contracted despite the Golden Week holiday in the first week of October, which usually sees a jump in discretionary spending.

Consumer price index (CPI) inflation shrank at an annualized 0.2% in October, data from the National Bureau of Statistics showed. The reading was in line with expectations, and worsened from the 0% reading seen in September.

Investing.com-- China re-entered disinflationary territory in October, data showed on Thursday, as both consumer and producer inflation contracted amid weak retail spending and a worsening slump in the manufacturing sector.

From the past proven results, CCP failed to provide a better place for citizens especially under silly evil Xi administration.

When typical chinese has nothing to back-up their view, this is what normally they would do to manupulate us thru their own understanding of moral or racial card hijacking our emotion feeling of guilty.

Most of the CCP supporters trying to play race cards it manupulates all Chinese MUST support CCP. CCP does not represent 100% China. Communism and Socialism are not original from ancient China. Those are rubbish from Westerns.

Posted by foongsh > 1 hour ago | Report Abuse

Posted by IDQWE001 > 4 minutes ago | Report Abuse

Evil Xi follow the foot step of Mao and abandoned the strategies from Deng, Jiang, Hu leading country to wrong direction.

70 years ago Mao blowed water wanted to exceed Westerns end up GDP per capital very far away and local chinese suffered from negative assets, bad debts, jobless, homeless due to unfinished units.

Silly following the foot step of Mao, end up Cultural revolution version 2.

CCP total debts 300% GDP compare to US 240% GDP, CCP is printing more money now.

Evil Xi follow the foot step of Mao and abandoned the strategies from Deng, Jiang, Hu leading country to wrong direction.

By comparison, local Chinese trapped in negative assets, bad debts, jobless, homeless due to unfinished units. Building white elephants projects without proper drainage systems and retention ponds could not generate revenues to achieve targeted GDP. The above top 20 countries did not build white elephant projects wasting resources.

9. Republic of San Marino
GDP Per Capita In 2023: $78,926
8. United States of America
GDP Per Capita In 2023: $80,035
7. Kingdom of Norway
GDP Per Capita In 2023: $82,655
6. Swiss Confederation
GDP Per Capita In 2023: $87,963
5. United Arab Emirates
GDP Per Capita In 2023: $88,221
4. Republic of Ireland
GDP Per Capita In 2023: $124,596
3. State of Qatar
GDP Per Capita In 2023: $124,834
2. Grand Duchy of Luxembourg
GDP Per Capita In 2023: $142,490
1. Singapore
GDP Per Capita In 2023: $157,354

CCP very far behind, none of the above countries are communism. Those countries enjoy freedom of speaking and electing their leaders. Communism is totally failure political system such as collapsed USSR and North Korea. Communism power crazy dictator political system rubbish from Westerns.

World’s 20 Richest Countries by GDP (PPP) per Capita
Published on October 30, 2023 at 2:12 pm by RAMISH CHEEMA in Economy, Lists, News

20. Commonwealth of Australia
GDP Per Capita In 2023: $65,366
19. Kingdom of Belgium
GDP Per Capita In 2023: $65,501
18. Kingdom of Sweden
GDP Per Capita In 2023: $65,842
17. Federal Republic of Germany
GDP Per Capita In 2023: $66,132
16. Principality of Andorra
GDP Per Capita In 2023: $68,998
15. Republic of Austria
GDP Per Capita In 2023: $69,502
14. Iceland
GDP Per Capita In 2023: $69,779
13. Netherlands
GDP Per Capita In 2023: $72,973
12. Republic of China (Taiwan)
GDP Per Capita In 2023: $73,344
11. Kingdom of Denmark
GDP Per Capita In 2023: $73,386
10. Brunei Darussalam
GDP Per Capita In 2023: $75,583

Export compare to last year MCO still dropped -6.4%. Never seen a country export dropped so much 1 year re-opening after MCO.

5% GDP growth 1 year after re-opening MCO is nothing. Malaysia achieve 10% GDP growth 1st year after MCO.

When typical chinese has nothing to back-up their view, this is what normally they would do to manupulate us thru their own understanding of moral or racial card hijacking our emotion feeling of guilty.

Most of the CCP supporters trying to play race cards it manupulates all Chinese MUST support CCP. CCP does not represent 100% China. Communism and Socialism are not original from ancient China. Those are rubbish from Westerns.

At least not CCP permanent member.

China’s chips push is mired in corruption allegations

China’s habit of pouring cash into strategic industries creates opportunities for corruption. Just look at the microchip business. The “Big Fund” was created in 2014 to spur self-reliance in chipmaking. Backed by state investors, it has raised 343bn yuan ($50bn). But several of the fund’s executives are suspected of corruption, including its head, Ding Wenwu.

The investigation may be motivated by more than just concern over graft. Chips are used in everything from mobile phones to missiles, which is why China’s leaders don’t want to rely on other countries to make them. But the progress of China’s chip industry has not met expectations. Self-reliance may be decades away, if it is achievable at all.

CCP culture always cheating. Huawei P60 Mate Pro chips 5 years ago technology, due to EUV banned could only manufactured limited production by using N+2 technology. That's why there is no export to oversea. In addition, who will buy 5 years handphone which is equivalent to Iphone 12 at the price of RM 5000.

CCP big funds for CHEATS full of corruption.

Posted by IDQWE001 > 3 hours ago | Report Abuse

Export compare to last year MCO still dropped -6.4%. Never seen a country export dropped so much 1 year re-opening after MCO.

5% GDP growth 1 year after re-opening MCO is nothing. Malaysia achieve 10% GDP growth 1st year after MCO.

few years ago CCP claimed to take over TSMC, CCP cheats and not CHIPS

Export compare to last year MCO still dropped -6.4%. Never seen a country export dropped so much 1 year re-opening after MCO.

CCP life members always blow water. Trade balance USD actual 56.53B VS targeted 82.0B. Only happen in CCP trust at your own risk.

Not Huawei P60 Mate Pro replace Apple phone meh ? No oversea market to boost up exports ?

Not all muslim countries friendly to CCP meh, why didn't they buy more EV to boost up exports ? Not entire world buying CCP EV meh ??

China's imports unexpectedly grow in Oct, exports extend declines

BEIJING (Reuters) - China's imports unexpectedly grew in October while exports contracted at a quicker pace, in a mixed set of indicators that showed the recovery in the world's second-largest economy remains uneven.

Exports shrank 6.4% from a year earlier in October, customs data showed on Tuesday, faster than a 6.2% decline in September and worse than a 3.3% fall expected in a Reuters poll. Imports rose 3.0%, faster than the 6.2% fall in September and an expected 4.8% contraction.

Recent indicators suggest policy measures introduced since June are helping bolster a tentative recovery, although a protracted property crisis and soft global demand remain major headwinds.

The Baltic Dry Index, a bellwether gauge of global trade, hit its lowest since December 2020 in October, due to congestion in North American and European ports.

However, in a sign trade is finding its footing, South Korean exports to China fell at their slowest pace in 13 months in October.

China posted a trade surplus of $56.53 billion in October, compared with a $82.00 billion surplus expected in the poll and $77.71 billion in September.

Analysts say it is too early to tell whether recent policy support will be enough to shore up domestic demand, with property, unemployment and weak household and business confidence threatening a sustainable rebound.

China's manufacturing activity unexpectedly contracted in October, data showed last week, complicating policymakers' efforts to revitalise economic growth as the year draws to a close.

Investing.com-- Chinese exports fell more than expected in October amid worsening overseas demand, while an unexpected rise in imports saw China’s trade surplus shrink to its worst level in 17 months.

China’s trade balance fell far more than expected to $56.53 billion, missing expectations of $81.95 billion and falling sharply from the $77.71 billion seen last month, data from the General Administration of Customs showed on Tuesday.

The surplus was at its worst level since May 2022, when Chinese economic activity had ground to a halt due to the COVID-19 pandemic.

Thank you HSI, the best trading sectors in Bursa for the year of 2023.

Chinese exports fall further in Oct, trade surplus hits 17-mth low

Chinese exports slid 6.4% year-on-year in October, missing expectations for a decline of 5.4% and accelerating from a 6.2% drop in the prior month. The decline was driven chiefly by worsening economic conditions in China’s biggest trade destinations- Europe and the U.S..

Chinese business activity data for October had also shown that local businesses- particularly in the manufacturing sector- were suffering from weakening overseas demand, as foreign importers faced increased pressure from high interest rates and sticky inflation.

But local demand seemed to have improved slightly, amid a slew of stimulus measures from Beijing to foster economic growth. Chinese imports grew 3%, beating expectations for a decline of 4.8%, and improving from a 6.2% drop seen in September.

Still, Tuesday’s trade data highlighted continued headwinds for the Chinese economy, especially as its key export sectors face worsening demand.

Thank you HSI, the best trading sectors in Bursa for the year of 2023.

Posted by foongsh > 17 minutes ago | Report Abuse

Posted by IDQWE001 > 14 minutes ago | Report Abuse

Posted by foongsh > 32 minutes ago | Report Abuse

Posted by IDQWE001 > 39 minutes ago | Report Abuse

Bravo CCP Xi:

Changes not seen for hundred years - entire real estate market bubble burst.

Changes not seen for hundred years - more and more developer founders go to jail.

Changes not seen for hundred years - homebuyers no home to stay with bad debts.

Changes not seen for hundred years - banking system loan to developers became non performance loan

Few years already Silly CCP Xi not able to solve the issues worse than 3rd world countries.

Cultural revolution was CCP killing CCP members, this is happening now. Ministers kena ISA self disappeared.

The purpose of CCP killing CCP members was to strengthen CCP. Good logic.

With the above big "achievements" for sure no i.diot in this universal could beat CCP silly evil Xi.

qqq could not master his mother language and lost his own identity. He might be suspected as a spy and kena ISA by writing only 26 alphabets.

Posted by foongsh > 32 minutes ago | Report Abuse

Posted by IDQWE001 > 39 minutes ago | Report Abuse

Bravo CCP Xi:

Changes not seen for hundred years - entire real estate market bubble burst.

Changes not seen for hundred years - more and more developer founders go to jail.

Changes not seen for hundred years - homebuyers no home to stay with bad debts.

Changes not seen for hundred years - banking system loan to developers became non performance loan

Few years already Silly CCP Xi not able to solve the issues worse than 3rd world countries.

Cultural revolution was CCP killing CCP members, this is happening now. Ministers kena ISA self disappeared.

Bravo CCP Xi:

Changes not seen for hundred years - entire real estate market bubble burst.

Changes not seen for hundred years - more and more developer founders go to jail.

Changes not seen for hundred years - homebuyers no home to stay with bad debts.

Changes not seen for hundred years - banking system loan to developers became non performance loan

Posted by foongsh > 5 minutes ago | Report Abuse

Posted by IDQWE001 > 1 minute ago | Report Abuse

China’s Youth Silently Protest, Yearning for XI’s Fall, Taken by Police

https://youtu.be/qt3eAAA6oPE?si=9k3aADY-3br45bE0

Local citizens got angry.

Yes. Obviously.

Local Chinese very politely reject CCP and Xi.

China’s Youth Silently Protest, Yearning for XI’s Fall, Taken by Police

https://youtu.be/qt3eAAA6oPE?si=9k3aADY-3br45bE0

Local citizens got angry.

CCP Xi brought the country to wrong direction, end up local citizens suffered from unfinished units, bad debts and jobless.

ha .... if u don't understand chips industry u better only keep on talking about how to build more white elephants to boost up GDP lah.

PHLX Semiconductor index increased 1000 points to 3455 from 2500 points January 2023 almost 30% lah.

Video shows moment Ukraine’s Storm Shadow missiles strike Russian Fleet in Kerch

A video capturing the moment of the Ukrainian Air Force's Nov. 4 missile attack hit the shipyard in Russian-occupied Kerch was published by the Krymsky Veter (Crimean Wind) Telegram channel.

The clip shows the explosion at the shipyard and the work of the enemy’s air defense systems.

13 of the 15 Ukrainian cruise missiles fired at the Kerch shipyard were destroyed in the air, while one hit a ship, Russia’s Defense Ministry said earlier, without naming the ship.

NATO have more nuclear submarines than Russia with more advanced ballistic missiles.

Russia's Putin issues new nuclear warnings to West over Ukraine

MOSCOW, Feb 21 (Reuters) - President Vladimir Putin on Tuesday delivered a warning to the West over Ukraine by suspending a landmark nuclear arms control treaty, announcing that new strategic systems had been put on combat duty, and threatening to resume nuclear tests.

Evil and evil supporters always said that,.

Netanyahu learned from evil Xi how to divide and jail millions of muslim.

Both Netanyahu and Putin are evil killers. Killing civilians are war cime.

More than 2,000 Ukrainian civilians killed during Russian invasion, as shelling hits residential areas across the country

The Russian invasion of Ukraine has killed more than 2,000 Ukrainian civilians and destroyed hundreds of structures including transport facilities, hospitals, kindergartens and homes.

Communism is the rubbish from westerns got nothing to do with ancient chinese. Master your own mother language and don't forget your own identity.