Weekly Market Update - 10 April 2023

China Crackdowns

Chinese authorities warned the nation’s top banking executives that a corruption crackdown on the $60 trillion industry is far from over, as they announced a probe into the most senior state banker in nearly two decades. Executives from at least six state owned banks were summoned by regulators to discuss a probe into Bank of China’s former Chairman Liu Liange, who is suspected of “serious violations of discipline and law.” Regulators said the bankers should draw lessons from Liu and strengthen self discipline, sources said. At least 20 financial executives have been probed since late February.

Source: Bloomberg

Macron In China

French President Emmanuel Macron is on a three-day trip to China as Xi Jinping launches a charm offensive to repair the country’s tattered image. Before meeting Xi, Macron made clear his strategy was to appease tensions and find common ground with Beijing on several fronts, starting with Russia’s invasion of Ukraine. He suggested that China could use its close ties with Russia to push for peace while adding that he opposes moves to decouple from the world’s second-biggest economy.

Source: Bloomberg

Military Drills

China held a second day of military drills around Taiwan, with multiple exercises involving aircraft and ships, after the island’s president, Tsai Ing-wen, returned from a visit to the US. Taiwan’s Defense Ministry said it detected 70 aircraft from China’s People’s Liberation Army and 11 warships near Taiwan, with 35 of the airplanes crossing the median line of the Taiwan Strait and entering the island’s air-defense identification zone. The PLA’s Senior Colonel Shi Yi said Saturday that drills from April 8-10 are a “stern warning against Taiwan separatist forces’ collusion with foreign elements.”

Source: Bloomberg