http://mynews.mychinab2b.com Your Source for Latest B2B iNews Tue, 31 Jan 2012 22:09:27 MST en http://mynews.mychinab2b.com/Economy/january-pmi-shows-chinas-economy-stabilizing-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-/
Their results, however, pointed to a stabilizing trend in the world's second-largest economy which remained a star performer last month amid slow economic growth worldwide, analysts said.

The official Purchasing Managers' Index, a comprehensive gauge of manufacturing activities weighted more towards large state-owned enterprises, sat at 50.5 in January, up 0.2 point from a month earlier, the China Federation of Logistics and Purchasing said.

In comparison, the HSBC China Manufacturing Purchasing Managers' Index, which is slanted more towards private and export-oriented companies, remained below 50 in January at 48.8, although it edged up a bit from December's 48.7.

In both surveys, a reading above 50 indicates expansion; below 50 means contraction.

"The rebound for a second month in the official PMI shows China's economy is stabilizing," said Zhang Liqun, an analyst appointed by the federation. "The improvement in new orders reflects a recovery in manufacturing thanks to healthy domestic demand."

Component indices showed that new orders rose 0.6 point from December to 50.4, while production gained 0.2 point to 53.6. Trading was weak as new export orders fell 1.7 points to 46.9 and imports shrank 2.2 points to 46.9 as well.

Chang Jian, an economist at Barclays Capital, said the official PMI increase should be treated with more optimism because it defied the seasonal decline in the month of the Chinese New Year.

"In our view, the upside surprise also suggests the stronger-than-expected momentum in December's data is not temporary or driven solely by seasonal factors," Chang said. "It reflects the effect of earlier selective monetary easing and proactive fiscal policy, and hence can be sustained."

For private and export-oriented manufacturers which still reported activities contraction, Qu Hongbin, chief economist for China at HSBC, said it called for more aggressive easing measures to support their growth.

"Given the inflation is no longer a concern, China should launch more supportive policies for smaller manufacturers," Qu said. He added that once filtering through, the policy easing should ensure a soft-landing this year in China's economy.

"But first quarter is likely to be tough, with gross domestic product to be around 8 percent," Qu said.

China's economic growth stood at an annualized 9.2 percent last year, compared with 10.4 percent in 2010. But the pace moderated to 8.9 percent in the final quarter of last year, the slowest in two and a half years. ]]> Tue, 31 Jan 2012 22:09:27 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/january-pmi-shows-chinas-economy-stabilizing-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-/ http://mynews.mychinab2b.com/Economy/economy-davos-leaders-focusing-on-china/ Thu, 26 Jan 2012 19:44:22 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/economy-davos-leaders-focusing-on-china/ http://mynews.mychinab2b.com/Economy/china-gdp-gains-9-2-in-2011-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/
China's GDP totaled 47.16 trillion yuan... ]]> Mon, 16 Jan 2012 18:32:10 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/china-gdp-gains-9-2-in-2011-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/ http://mynews.mychinab2b.com/Economy/december-export-growth-slows-trade-surplus-expands-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/
Overseas shipments rose 13.4 percent from a year ago, slowing down from a 13.8 percent increase in November, the... ]]> Mon, 09 Jan 2012 19:03:25 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/december-export-growth-slows-trade-surplus-expands-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/ http://mynews.mychinab2b.com/Economy/tax-china-vat-reform-to-benefit-120000-businesses-in-shanghai/ Thu, 29 Dec 2011 18:58:39 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/tax-china-vat-reform-to-benefit-120000-businesses-in-shanghai/ http://mynews.mychinab2b.com/Economy/china-eyes-11-industrial-growth-in-2012-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/
Miao said development... ]]> Mon, 26 Dec 2011 00:45:50 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/china-eyes-11-industrial-growth-in-2012-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/ http://mynews.mychinab2b.com/Economy/reserve-ratio-for-banks-decreased-%7C-markets-%7C-chinadaily-com-cn/
The central bank will reduce the ratio of money that banks have to set aside on deposit by 50 basis points among commercial lenders, effective on Dec 5, said the People's Bank of China in a statement on Wednesday.

After the move, the reserve ratio for major banks will be 21 percent, while the ratio for small and medium-sized lenders will stand at 17.5 percent. Analysts expect the cut in the ratio will inject 350 to 400 billion yuan ($55 to $63 billion) into the market.

"The cut falls within expectations. The current liquidity in the Chinese banking system has become too tight and the liquidity shortage forced the central bank to inject money into the market," said Ma Jun, chief economist at Deutsche Bank Greater China.

China has increased the reserve ratio 12 times since 2010 to soak up liquidity and curb inflation, including six times in the first half of this year.

The latest move came a little earlier than expected and was mainly due to the dramatic decrease of yuan positions for foreign exchange purchases among Chinese bankers, said Li Huiyong, a Shanghai-based economist with Shenyin & Wanguo Securities Co.

In October, the yuan positions - an indicator of "hot money" inflows or outflows - fell for the first time in four years as it went down by 24.9 billion yuan.

"The passive contraction of liquidity and non-optimistic economic prospects jointly generated the necessity to inject more money," Li said, adding the cut indicated that the yuan positions for November will probably continue to decline.

Analysts expected the tone of China's macro policy may change during the nation's annual Central Economic Work Conference, which is scheduled this month, as inflation has already started easing.

Lu Zhiming, economist at the Bank of Communications Ltd, said the country's inflation rate is predicted to fall for a fourth consecutive month in November as the consumer price index, a main gauge of inflation, is likely to drop to 4.3 percent, dragged down by lower food prices, declines in global commodity prices and a higher base figure of one year earlier.

The index for 2011 will be 5.4 percent, before it falls to somewhere between 3 and 3.5 percent next year, he predicted.

Liu Ligang, head of Greater China economics at ANZ Banking Group, predicted an official purchasing managers' index for November will be around 49.7, the first time that the index would have fallen below the contraction line of 50 since February 2009.

"We believe it's very necessary for authorities to loosen the monetary stance generally to stimulate the economy."

He said a slide in property transaction volumes of more than 30 percent and slumping real estate prices add to the likelihood the Chinese economy may experience a hard landing.

But Guo Tianyong, economist at the Central University of Finance and Economics, said the cut in the reserve ratio should not be seen as a change in macro policy tone, because it mainly targeted the net liquidity drain among banks due to capital outflows in October.

"The monetary stance needs to remain relatively tight given that inflation is still at high levels, and given that economic restructuring as well as curbs on the real estate market are still ongoing," Guo said.

"We indeed predicted that China will loosen its monetary policies, but the government will not make the change high profile," said Wang Tao, head of China economic research at UBS Securities Co Ltd, adding the traditional year-end increase in expenditures of the nation's fiscal deposit will inject more liquidity into the system.

Lu said interest rates will stay the same for a while. "The right time for an interest rate cut has not arrived," Lu said.

Tian Yuan, a macroeconomics analyst at Bank of America Merrill Lynch, said the move doesn't necessarily mean that the People's Bank of China will change the direction of its monetary policy.

"The move is within our expectations, but it's mainly targeted at the banking system, which has witnessed a decline in deposits in recent months," she said.

"If the banks don't have enough money to lend, that will be a big problem in China, where bank loans are the main source of funding."

But she added that liquidity is still ample in society as a whole, and loosening monetary policies too much threatens to fuel inflation, which has just slightly eased.

Tian added that lowering the reserve ratio won't have an impact on the country's property market, which has just shown signs of decline after various government measures.

"The banks are simply not allowed to lend to developers. It's not about how much money they have," she said.

Wang Jianhui, chief economist with Southwest Securities Co Ltd, said the move marks the end of this round of tightening.

"Exports will probably face a sharp decline next year and the country's enterprises are seeing increasing raw material prices and wages. So if the tightening continues there will be problems in economic growth," he said.

The faster-than-expected reduction in the reserve ratio should be read in the context of the latest data from the purchasing managers' index, said Fan Cheuk Wan, managing director of Credit Suisse.

"If the index only declines modestly, a reduction in the reserve ratio may signal that economic growth is just slowing down. However, if the index drops drastically, it could flag the possibility of a hard landing," Fan said.

The reduction could be a pre-emptive action to buffer the impact of a possibly poor purchasing managers' index, suggested Banny Lam, associate director and economist at CCB International Securities. ]]> Wed, 30 Nov 2011 14:18:59 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/reserve-ratio-for-banks-decreased-%7C-markets-%7C-chinadaily-com-cn/ http://mynews.mychinab2b.com/Economy/gdp-growth-forecast-reduced-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/
The gross domestic... ]]> Tue, 29 Nov 2011 12:50:30 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/gdp-growth-forecast-reduced-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/ http://mynews.mychinab2b.com/Economy/economic-growth-set-to-slow-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-/
The ministry's prediction is more optimistic than the projection by the World Bank which said on Tuesday that China's growth will slow to 9.1 percent this year, with expansion at a slower 8.4 percent next year.

In 2012 China's industrial sector may continue to weaken and the rate will moderate 1 to 2 percentage points from this year's 14 percent, said Huang Libin, deputy director of the ministry's Operation, Monitoring and Coordination Bureau.

"Industrial production has shown signs of moderation, but it is still on track to a relatively stable growth," Huang said. "While exports of manufactured goods are slumping due to deteriorating global economic conditions, domestic demand helps to keep industrial production at an elevated level."

In the first 10 months, industrial output in China grew 14.1 percent annually but it slowed to 13.2 percent in October from the same month last year amid shrinking demand from overseas markets.

But Jin Bei, a professor at the Chinese Academy of Social Sciences, said domestic demand has started to ease and "consumption in China has not lived up to expectations that it would lead the (economic) growth. The economy is still held up by investment, which can't be sustained for a very long time."

He also suggested Chinese manufacturers be prepared to cope with challenges, including rising production costs, higher standards in using natural resources and protecting the environment as well as shrinking domestic and overseas demand.

The preliminary reading for the HSBC Purchasing Managers' Index for November, released on Wednesday, declined to a 32-month low of 48. A reading below 50 indicates contraction. ]]> Thu, 24 Nov 2011 23:41:32 MST admin Economy 2 http://mynews.mychinab2b.com/Economy/economic-growth-set-to-slow-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-/ http://mynews.mychinab2b.com/Economy/service-sector-on-the-increase-%7C-industries-%7C-chinadaily-com-cn-1/
BEIJING - Since China entered the World Trade Organization 10 years ago, national economic restructuring has substantially improved, with the service industry playing a more important role in the growth of gross domestic product (GDP).

According to the latest data from the National Bureau of Statistics (NBS), China's economic output grew 9.4 percent year-on-year to 32.07 trillion yuan ($5.02 trillion) for the past three quarters this year, more than three times that of the 9.6 trillion yuan in 2001, with the tertiary industry accounting for 42 percent of the GDP figure, compared with 33.6 percent 10 years ago.

In contrast with the performance of the service industry, primary industry contributed only 9.5 percent to GDP, a decline compared with 15.2 percent a decade ago, while secondary industry saw a slight dip from 51.2 percent to 48.3 percent, according to the NBS data.

Similarly, the country's domestic consumption also saw a large increase during the period.

Retail sales for first three quarters of this year totaled 13.1 trillion yuan, up 17 percent from a year earlier, more than four times the figure of 3.76 trillion yuan for the whole year of 2001, according to the NBS annual report.

Liang Da, an economist with the NBS, said in an article that the past 10 years saw "rapid growth" in domestic demand and investment, which contributed significantly to economic growth. He also warned about challenges caused by difficulties in economic transition, mainly from dependence on foreign trade and investment to domestic consumption.

In the first three quarters, domestic consumption and investment contributed 47.9 percent and 53.4 percent respectively to the economic growth, compared with 50.2 percent and 49.9 percent in 2001, according to Liang. Because of the minus growth of exports, foreign trade contributed nothing to the economic growth in the same period.

In 2009, domestic demand driven by the Chinese government's 4 trillion yuan stimulus package contributed a 100 percent share to economic growth, an increase of 15.2 percentage points compared with the 2005 level, mitigating the impact caused by the decline in external demand due to the financial crisis in 2008, Liang wrote.

Since 2008, because of external economic uncertainties, the government unveiled a package of measures to stimulate domestic demand and consumption in an attempt to shift focus from heavy reliance on exports to the domestic market.

Prosperity in urban and rural markets was reflected in retailing sales of consumer goods, which rose to 15.7 trillion yuan last year from 3.8 trillion yuan in 2001 with an annual growth rate of 14.9 percent, marking the decade in Liang's words as "one of the golden periods" for rapid growth of the consumer market.

The past decade also witnessed changes in consumption structure with consumers spending more on housing, medical care, tourism and education rather than food and clothing, the former category of which Liang saw as emerging "consumption hot spots".

According to data from the National Tourism Administration, a record-breaking 302 million people traveled during the seven-day National Day holiday this year, compared with 254 million last year, with revenues from tourism during the holidays rising to 145.8 billion yuan from 116.6 billion yuan in 2010.

In the 2006-2010 period, retailing sales of automobiles reported the most rapid growth rate of 39 percent, followed by 38.1 percent in jewelry, 37.9 percent in architecture and upholstery materials, 20.3 percent in home appliances and 15.9 percent in telecommunications equipment, according to data provided by Liang.

Liang said the country's sound economic development, which laid "a solid foundation" for the rapid expansion of the domestic consumer market, also contributed to growing consumption and residents' increasing income and purchasing power.

"The government also formulated a series of measures and policies to stimulate domestic demand and consumption," said Liang, seeing the policies as forming "a favorable condition" for the release of consumption potential.

Investment also played a large part in China's economic growth, said Liang. According to NBS statistics, investment in fixed assets rose from 3.72 trillion yuan in 2001 to 27.81 trillion yuan last year, an annual increase of 23.8 percent.

According to data from the NBS, in the 11th Five-Year Plan (2006-2010) period, completed investment of fixed assets in urban areas amounted to 79.49 trillion yuan, with an annual growth rate of 26.1 percent on average, while the figures for rural areas were 12.79 trillion yuan and 21.7 percent.

Money was also spent on infrastructure, which accounted for a large part of investment. The past five years saw a completed spending of 22.06 trillion yuan on urban infrastructure with an annual growth rate of 21.8 percent.

Last year also saw completed spending on urban infrastructure rising ]]> Mon, 14 Nov 2011 12:13:56 MST admin Economy 1 http://mynews.mychinab2b.com/Economy/service-sector-on-the-increase-%7C-industries-%7C-chinadaily-com-cn-1/ http://mynews.mychinab2b.com/Economy/tight-credit-could-ease-as-inflation-hits-brakes-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-/
The Consumer Price Index, the main gauge of inflation, expanded 5.5 percent from a year earlier in October, the National Bureau of Statistics said yesterday. It marked the third consecutive month of moderating inflation, and October's rate was the lowest since May. August's rate of 6.5 percent was a three-year high. In September, inflation still hung at 6.1 percent.

"The CPI growth cooled sharply as expected," said Lian Ping, chief economist at Bank of Communications. "The future slowdown may be faster than our previous projection."

Lian said earlier that the CPI may reduce to 4 percent in December and settle at 5.5 percent for the whole year.

Food costs, a major force in driving prices up in this round of inflation, jumped 11.9 percent year on year last month, down from 13.4 percent in both September and August. Prices of non-food items added 2.7 percent from the previous October, according to the statistics bureau.

Inflation pressure also eased further down the pipeline, with the Producer Price Index, the factory-gate measurement of inflation, cooling markedly to 5 percent in October from 6.5 percent a month earlier on a sharp correction in global commodity prices.

"The easing inflation provides more room for monetary policy flexibility," said Chang Jian, an economist at Barclays Capital. "But the possible change will remain selective because the slowdown is not sufficient for a broader easing."

Other analysts expected that even though a sharp change in monetary stance is unlikely, China may start easing by reducing the reserve requirement ratio, which now orders commercial banks to set aside a record 21.5 percent of their capital as reserves.

"We think the time is right for the authorities to first lower the rate to hedge against an increasingly uncertain external environment," economists with ANZ wrote in a report yesterday.

To combat price rises, China has lifted interest rates three times so far this year, along with six reserve requirement ratio increases. Such tightening measures managed to squeeze speculation out of the market as prices of ginger and onion, once wildly speculated, have returned to normal levels.

China's inflation expanded 5.6 percent annually in the first 10 months, still far exceeding the official target of 4 percent. But it was mild compared with other emerging markets like India, where inflation has remained above 10 percent in recent months.

"Cooling inflation allows China to strike a balance between inflation and growth," said Qu Hongbin, chief economist for China at HSBC. "However, it is still too early for a policy U-turn."

Premier Wen Jiabao said last month that China needs to fine-tune its macroeconomic policies to support troubled small firms and sustain steady growth. It was considered a signal for the country to loosen its grip on credit.

The nation's gross domestic product expanded 9.1 percent year on year in the third quarter, a slowdown from 9.5 percent second-quarter growth and 9.7 percent in the first three months.

China's economy is challenged by two main factors: a global slowdown, particularly in Europe and the United States, on which it depends for exports, and a cooling of the housing market, a secondary economic driver.

China's economy is unlikely to double dip but a slew of institutions have lowered their forecast for China's growth, including Standard Chartered, which estimated China's economy may expand 8.5 percent next year.
]]> Wed, 09 Nov 2011 16:26:10 MST admin Economy 2 http://mynews.mychinab2b.com/Economy/tight-credit-could-ease-as-inflation-hits-brakes-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-/ http://mynews.mychinab2b.com/Economy/chinas-inflation-eases-to-6-1-in-september-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-english-window-to-china-new/
On a monthly basis, consumer prices rose 0.5 percent in September, said the NBS in a statement at its website.

In the first nine months of this year, China's CPI climbed 5.7 percent from the same period last year, up from 5.4 percent year-on-year in the first half, said the NBS.

Food prices, which account for nearly one third of the basket of goods in the nation's CPI calculation, was up 13.4 percent in September from a year earlier and 1.1 percent month-on-month, according to the NBS.

China's CPI hit a 37-month high of 6.5 percent in July this year, which was far above the Chinese government's full-year target of 4 percent for 2011.

China's Producer Price Index (PPI), a major measure of inflation at the wholesale level, rose 6.5 percent in September year-on-year, down from 7.3 percent in August. ]]> Thu, 13 Oct 2011 12:54:10 MDT admin Economy 1 http://mynews.mychinab2b.com/Economy/chinas-inflation-eases-to-6-1-in-september-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5-english-window-to-china-new/ http://mynews.mychinab2b.com/Economy/economy-chinas-inflation-eases-to-6-2-in-aug/ Thu, 08 Sep 2011 22:35:37 MDT admin Economy 2 http://mynews.mychinab2b.com/Economy/economy-chinas-inflation-eases-to-6-2-in-aug/ http://mynews.mychinab2b.com/Economy/economy-chinas-inflation-accelerates-to-6-5-in-july/ Mon, 08 Aug 2011 18:03:46 MDT admin Economy 3 http://mynews.mychinab2b.com/Economy/economy-chinas-inflation-accelerates-to-6-5-in-july/ http://mynews.mychinab2b.com/Economy/economy-gdp-growth-eases-fears-of-hard-landing/ Wed, 13 Jul 2011 18:59:16 MDT admin Economy 3 http://mynews.mychinab2b.com/Economy/economy-gdp-growth-eases-fears-of-hard-landing/ http://mynews.mychinab2b.com/Economy/economy-chinas-cpi-hits-three-year-high-of-6-4-in-june/ Fri, 08 Jul 2011 22:17:05 MDT admin Economy 3 http://mynews.mychinab2b.com/Economy/economy-chinas-cpi-hits-three-year-high-of-6-4-in-june/ http://mynews.mychinab2b.com/Economy/finance-chinese-interestrates-rise-once-again/ Wed, 06 Jul 2011 17:09:07 MDT admin Economy 4 http://mynews.mychinab2b.com/Economy/finance-chinese-interestrates-rise-once-again/ http://mynews.mychinab2b.com/Economy/economy-official-refutes-guangdong-bankruptcy-claims/ Fri, 24 Jun 2011 19:42:04 MDT admin Economy 1 http://mynews.mychinab2b.com/Economy/economy-official-refutes-guangdong-bankruptcy-claims/ http://mynews.mychinab2b.com/Economy/luxury-number-of-chinese-millionaires-rises-by-12/ Thu, 23 Jun 2011 18:54:50 MDT admin Economy 3 http://mynews.mychinab2b.com/Economy/luxury-number-of-chinese-millionaires-rises-by-12/ http://mynews.mychinab2b.com/Economy/economy-chinese-global-private-sector-growth-accelerates/ Sun, 12 Jun 2011 23:31:07 MDT admin Economy 1 http://mynews.mychinab2b.com/Economy/economy-chinese-global-private-sector-growth-accelerates/