Budget 2018-19

  Decision shows party takes precedence on business decisions China’s move to abruptly halt the world’s biggest stock-market debut sends global investors a clear message: Any financial opening will only be done on terms that benefit President Xi Jinping and the Communist Party. Policy makers in Beijing shocked the investment world on Tuesday by suspending an initial public offering by Ant Group Co, owned by billionaire Jack Ma — China’s second-richest man. The timing of the decision showed once again that for Xi and the party, financial and political stability take precedence over ceding control of the economy — especially to a private company. In Beijing’s view, allowing the IPO to go forward could effectively give  Ant Group  too much sway over the financial system, posing broader risks that could ultimately undermine the party’s grip on power. For foreign investors, the Ant saga has raised questions about the viability of Hong Kong and Shanghai as premium financial cen...

The Shanghai Stock Exchange’s surprise suspension of Ant Group’s record-breaking initial public offering Tuesday night changed the landscape Nov. 3 was a sad, sad day for China. Not because America’s election changes anything about its hawkish stance toward Beijing — that’s bipartisan — but because China lost a golden investment opportunity by shooting itself in the foot. Looking purely at the numbers, China is in a sweet spot right now. Its bonds are attractive, as the yield differential with U.S. Treasuries hovers near a five-year high. Beijing’s virus-containment strategy is working, and the economy has bounced back. Meanwhile, President  Xi Jinping ’s latest five-year economic blueprint, which favors innovation and domestic consumption, is a win for tech companies — exactly the kind of growth stocks investors love. Foreigners have been buying the China story this year, even as President Donald Trump threatened to sanction and delist mainland companies. They are crowding into Be...