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/Investments/cic-buys-minority-stake-in-thames-water-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/
China Investment Corp said in a statement yesterday that it acquired an 8.68 percent stake in Thames Water through a wholly-owned unit. But CIC did not provide a value for the deal.

The CIC transaction followed a visit to Beijing earlier this week by George Osborne, the UK's finance minister, who is seeking Chinese investments in his country's infrastructure sector.

"It is a vote of confidence in Britain as a place to invest and do business. This (CIC) investment is good news for both the British and Chinese economies," Osborne was quoted as saying by Reuters.

The deal marks the second recent foreign acquisition of a stake in Thames Water, the UK's largest water and wastewater service provider, after the Abu Dhabi Investment Authority bought 9.9 percent in Kemble Water Holdings, the parent of the utility.

CIC executives previously said it was keen to invest in infrastructure of Western countries. The lingering European sovereign debt crisis has made assets there attractive to investors all over the world.

Thames Water says it services 8.8 million customers across London and the Thames Valley and handles sewage for an area with 14 million customers.

CIC faced criticism over the performance of investments made just as the 2008 global crisis was developing.

But its performance has improved since, and the fund said that it made an 11.7 percent return in 2010, the latest year for which results have been reported. ]]> Sat, 21 Jan 2012 19:11:16 MST admin Investments 1 http://mynews.mychinab2b.com/Investments/cic-buys-minority-stake-in-thames-water-shanghai-daily-%7C-%E4%B8%8A%E6%B5%B7%E6%97%A5%E6%8A%A5/ http://mynews.mychinab2b.com/Finance/fdi-registers-another-drop-in-dec-%7C-economy-%7C-chinadaily-com-cn/
BEIJING - Foreign direct investment (FDI) in China registered the sharpest year-on-year decline in December since August 2009, when the country was hit by the global financial crisis, the Ministry of Commerce said on Wednesday.

Officials and analysts attributed the slowdown to a fragile recovery for the world economy and increasing labor costs.

Yet they still believed China will maintain stable FDI growth in the future as the country continues to open up its market and improve its investment environment.

FDI in China declined by 12.73 percent in December from the year before, the second month in a row that had seen such a decrease, the ministry said.

In 2011, the country's total amount of FDI reached a new high of $116 billion but its growth rate slowed to 9.72 percent from 17.4 percent in 2010, according to the ministry.

Investment from the United States decreased by 26.1 percent in 2011 to $3 billion, while that from the European Union decreased by 3.65 percent to $6.3 billion, the ministry said.

"China's FDI increase in 2011 was one of the lowest in recent years," said Shen Danyang, a ministry spokesman.

He said the slowdown was mainly the result of a sluggish economic recovery in the US, the European Union and other developed economies, which has prompted investors to hold back.

In the meantime, foreign direct investment in the Chinese service industry outstripped the manufacturing industry for the first time, making up 47.6 percent of the total investment recorded in 2011, the ministry said.

"Pushed by a stronger yuan, China's labor costs have been increasing in recent years," said Lu Zhengwei, an economist with the Industrial Bank Co Ltd.

"This may squeeze the manufacturers' profits and pose difficulties to attracting FDI to the manufacturing sector."

Nevertheless, analysts said China still has the potential to retain its position as the most attractive place to invest in.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a think tank of the Ministry of Commerce, said the country should continue opening up its service industry to foreign investors.

China has improved its FDI structure with more investments flowing into the service industry. A more open service industry, along with improving investment opportunities in the western parts of China, will help the country maintain stable FDI growth, Huo said.

The value of China's outbound investment in 2011 stood at $60 billion, an increase of 1.8 percent from the year before - much lower than the growth rate of 36.3 percent recorded for 2010, the ministry said.

Pressed by the dismal world economy, countries have increasingly begun to take protective measures against investments by China's State-owned enterprises, Shen said, citing a report by the United Nations Conference on Trade and Development.

Investment outflows to the European Union jumped by 94.1 percent in 2011 to hit $4.3 billion and those to Africa increased by 58.9 percent from 2010 to hit $1.7 billion, according to the ministry.

Huo said the eurozone's debt crisis might provide an opportunity to bring about more cooperation among Chinese and European companies.

"The world has now reached a consensus: If we are to overcome the current global economic stasis, we must cooperate," Huo said.

This will provide an opportunity for Chinese companies to invest abroad, especially in the European Union, he said. ]]> Thu, 19 Jan 2012 19:00:35 MST admin Finance 1 http://mynews.mychinab2b.com/Finance/fdi-registers-another-drop-in-dec-%7C-economy-%7C-chinadaily-com-cn/ 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/Finance/eurozone-debt-deal-welcomed%7Cpolitics%7Cchinadaily-com-cn/
European leaders sealed a last-ditch agreement after days of negotiation. Their plan is to reduce Greece's debt by 50 percent and expand the European Financial Stability Facility (EFSF), the eurozone's bailout fund, to 1 trillion euros ($1.4 trillion) from 440 billion euros.

The European debt plan is "conducive to lifting market confidence" and China supported the measures adopted by the European Union (EU) to tackle the financial crisis, Foreign Ministry spokeswoman Jiang Yu said at a news briefing.

"The plan will promote the sustainable economic development of the EU and the eurozone, and will inject new vitality into European integration," Jiang said, adding that China was ready to increase cooperation with the EU in investment, trade and finance.

European nations are also looking to boost the EFSF fund through investment from cash-rich emerging economies such as China. But Jiang declined to comment on whether China would participate in Europe's special rescue fund.

On Thursday, President Hu Jintao spoke with French President Nicolas Sarkozy by telephone on global economic issues and next month's G20 summit in Cannes, France.

Hu told Sarkozy that he hoped the measures would "help Europe stabilize financial markets, overcome difficulties and push forward economic recovery and development", according to the Foreign Ministry website.

Hu said he also hoped that next week's G20 meeting would send a "strong signal to promote stability".

Analysts said that China should extend support to EU efforts to tackle the ongoing financial turmoil because it is threatening the demand for Chinese exports to the region. However, they said China should be cautious about the risk of investing in European sovereign bonds.

"China would like to see the EU find a solution toward sustainable recovery. But the specific method should be evaluated very carefully," said Zhang Yuyan, director of the Institute of World Economics and Politics with the Chinese Academy of Social Sciences.

Analysts said that China is unlikely to invest directly in European sovereign debt because of the high risk. But it has been reported that China may help the EU boost its bailout fund through the International Monetary Fund (IMF). ]]> Thu, 27 Oct 2011 14:06:16 MDT admin Finance 1 http://mynews.mychinab2b.com/Finance/eurozone-debt-deal-welcomed%7Cpolitics%7Cchinadaily-com-cn/ 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/Investments/cold-war-mindset-behind-conspiracy-theory-on-chinas-overseas-investment-%7C-opinion-%7C-chinadaily-com-cn/
These barriers cannot be easily overcome and remind people that the clear division of East and West remains deeply rooted, though the iron curtain has been raised for two decades.

Many significant commercial moves of Chinese companies, no matter mergers or direct investment, have come across similar conspiracy theories as the one the Zhongkun Investment Group faced when it planned to build a resort in an isolated part of Iceland.

Some analysts in the West have argued that the project, the first big one from a Chinese firm in Iceland, could provide a cover for China's geopolitical interests around the Arctic.

Media reports hinted there was a connection between the company and Chinese government, but the only evidence raised was the previous work experience of Huang Nubo, the company's chairman.

It's true he did work for a party department and the Ministry of Construction in the 1980s but quit in the early 1990s when many officials turned to business during the economic boom.

The implication of political motivations might stir controversy within the local community and hold back a project that very well may benefit both investors and locals.

Huang is only the latest victim of these so-called security concerns. Huawei, a private IT firm based in south China, has repeatedly faced such charges as it tried to win contracts or set up ventures in overseas markets.

Over the past three decades, the flow of money has been one way from developed economies to China.

As China's foreign reserves increase, and its economy becomes more closely linked with the global market, it's a natural option to take part in the intentional capital market. The government can buy foreign government debt and companies can be listed or invest abroad.

A two-way flow of goods and money should not surprise supporters of globalization, which stresses a free market.

Of course, Chinese investors are newcomers in the international market and doubts against them are understandable. It will always take time to build credibility; however, frequently categorizing business maneuvers as politically motivated makes it much harder. ]]> Sun, 04 Sep 2011 19:10:49 MDT admin Investments 3 http://mynews.mychinab2b.com/Investments/cold-war-mindset-behind-conspiracy-theory-on-chinas-overseas-investment-%7C-opinion-%7C-chinadaily-com-cn/ http://mynews.mychinab2b.com/Finance/bright-food-plans-us156m-bond-issue-shanghai-daily-%7C-%C3%A4%C2%B8%C5%A0%C3%A6%C2%B5%C2%B7%C3%A6%E2%80%94%C2%A5%C3%A6%C5%A0%C2%A5-/
The Shanghai-based food conglomerate said in a statement that about 700 million yuan of the proceeds would be used for increasing the operating capital of its affiliate Shanghai Tangjiu Group Co and the rest will be used to reduce bank debt.

The 336-day bonds will go on sale next Friday.

Bright Food also said yesterday that it has formed a strategic partnership with Manassen Foods and that it will buy a 75 percent stake in the company.

The deal will cost Bright Food A$400 million (US$415 million), according to a Reuters report, which cited unidentified sources.

The food group, which makes White Rabbit candy, has missed out on other overseas targets since last year, including the sugar business of CSR and French yogurt maker Yoplait.

Bright Food also made unsuccessful bids for United Biscuits and US vitamin products retailer GNC.

Bright Food Chairman Wang Zongnan said the company will stick to long-term investments in Australia.

"We hope to boost Manassen's export business through access to the rapidly growing Chinese market, and we could also introduce Bright products into Australia through Manassen's distribution network," he said.

According to media reports, the final agreement will be signed later this month.

The purchase is also subject to regulatory approvals in both China and Australia. ]]> Sun, 21 Aug 2011 20:34:25 MDT admin Finance 2 http://mynews.mychinab2b.com/Finance/bright-food-plans-us156m-bond-issue-shanghai-daily-%7C-%C3%A4%C2%B8%C5%A0%C3%A6%C2%B5%C2%B7%C3%A6%E2%80%94%C2%A5%C3%A6%C5%A0%C2%A5-/ http://mynews.mychinab2b.com/Investments/mainland-firms-may-see-easier-hk-listing-shanghai-daily-%7C-%C3%A4%C2%B8%C5%A0%C3%A6%C2%B5%C2%B7%C3%A6%E2%80%94%C2%A5%C3%A6%C5%A0%C2%A5/
Yan Feng, vice president of Guotai Junan Securities, made the remark after Vice Premier Li Keqiang offered the biggest package of measures in more than eight years by the central government to support Hong Kong's economy, including allowing more two-way investments in shares.

Li pledged in his speech that China will continue to encourage more mainland firms to list in the city.

Yan, who's also the head of the Chinese Securities Association of Hong Kong, added that mainland brokerages hoped the China Securities Regulatory Commission could bring its listing standards to those of the Hong Kong Exchanges and Clearing Ltd.

Under the CSRC requirements, mainland firms must have a net asset value - the value of an entity's assets less the value of its liabilities - of not less than 400 million yuan (US$62.5 million) while annual net profit should be at least 60 million yuan in the past year. Entities which seek to list in Hong Kong should raise at least US$50 million from initial public offerings.

The conditions set by the Hong Kong authorities are less stringent. Companies need a combined net profit above HK$50 million (US$6.41 million) in the past three years. They only need to earn HK$20 million in net profit for the previous year. The total market value of issued shares should be not less than HK$100 million. ]]> Thu, 18 Aug 2011 19:18:18 MDT admin Investments 2 http://mynews.mychinab2b.com/Investments/mainland-firms-may-see-easier-hk-listing-shanghai-daily-%7C-%C3%A4%C2%B8%C5%A0%C3%A6%C2%B5%C2%B7%C3%A6%E2%80%94%C2%A5%C3%A6%C5%A0%C2%A5/ http://mynews.mychinab2b.com/Finance/yuan-reaches-new-dollar-high-shanghai-daily-%7C-%C3%A4%C2%B8%C5%A0%C3%A6%C2%B5%C2%B7%C3%A6%E2%80%94%C2%A5%C3%A6%C5%A0%C2%A5/
The appreciation follows China's record trade surplus in July and after a statement by the United States Federal Reserve that it would maintain low interest rates until 2013 at least.

The yuan is allowed to trade up to 0.5 percent on either side of the official rate released by China's central bank, and it touched 6.4120 yesterday during over-the-counter trading, the dollar's lowest level since China's revaluation in 1994.

Though the possibility of another round of quantitative easing, or printing money, was not mentioned in the Fed's statement, analysts believe the US will carry on with a relatively loose monetary policy to tackle its debt problems.

"China should definitely increase currency flexibility to ensure an independent monetary policy," said Li Miaoxian, an analyst with BOCOM International. "Serious inflation in China won't allow the government to adopt as easy a monetary stance as the US."

China's currency is around 5 percent stronger against the dollar than at the same time last year, but is weaker against other currencies such as the euro and the pound.

Li said the yuan had weakened by a weighted average of 1.5 percent against a basket of currencies since the beginning of 2011, and the depreciation had not affected China's exports significantly.

"A record surplus in trading allowed further appreciation of the yuan against the US dollar," a Beijing-based trader said. "But the jump in the exchange rate yesterday was larger than expected."

The DBS Bank said yesterday that the yuan would maintain stable appreciation and reach 6.30 against the US dollar by the end of 2011. ]]> Wed, 10 Aug 2011 17:14:29 MDT admin Finance 2 http://mynews.mychinab2b.com/Finance/yuan-reaches-new-dollar-high-shanghai-daily-%7C-%C3%A4%C2%B8%C5%A0%C3%A6%C2%B5%C2%B7%C3%A6%E2%80%94%C2%A5%C3%A6%C5%A0%C2%A5/