daily menu » rate the banner | guess the city | one on oneforums map | privacy policy (aug.2, 2013) | DMCA policy | flipboard magazine
Old February 18th, 2009, 02:01 AM   #4001
pearl_river
Registered User
 
Join Date: Feb 2009
Posts: 241
Likes (Received): 0

Quote:
Originally Posted by tiger View Post
A well balanced shit. The figures he quoted are mostly from unreliable sources that don't make any sense. All he tried to prove is that Chinese economy is as bad as other major economies but unfortunately it's not. Every phrase he stated looks funny and desperately childish.
You are funny.

The state (from which we get practically all info from for the purpose of this forum) is now "unreliable". Suddenly became unreliable. But if the news is good I'm sure you won't hesitate to question the data.
"And it don't make sense" you say without any elaboration.

"funny and desperately childish" That would be you.
pearl_river no está en línea   Reply With Quote

Sponsored Links
 
Old February 18th, 2009, 02:58 AM   #4002
big-dog
Moderator
 
big-dog's Avatar
 
Join Date: Mar 2007
Posts: 14,108
Likes (Received): 6029

could you all talk in a non-childish way? Statement targeting to any individual is not necessary here. Please constrain yourself. 对事不对人。
big-dog no está en línea   Reply With Quote
Old February 18th, 2009, 08:14 AM   #4003
tiger
BANNED
 
Join Date: Aug 2004
Location: Chongqing,重庆
Posts: 2,962
Likes (Received): 13

Quote:
Originally Posted by pearl_river View Post
You are funny.

The state (from which we get practically all info from for the purpose of this forum) is now "unreliable". Suddenly became unreliable. But if the news is good I'm sure you won't hesitate to question the data.
"And it don't make sense" you say without any elaboration.

"funny and desperately childish" That would be you.
^Will you call the statement below reliable?

Quote:
China has a substantial shadow banking system of unauthorised lenders and off-balance sheet lending by banks trying to get around their loan quotas. Some estimates peg the size of this system at around 30% of conventional lending, so it's significant by any standards.
Since it's a very rough estimation, of course, it doesn't make any sense.

And stop bashing me. we'd better concentrate on the news.
tiger no está en línea   Reply With Quote
Old February 18th, 2009, 09:33 AM   #4004
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China trade unions aim to aid 10 million migrant workers

2009-02-18

BEIJING -- China's trade unions are planning to extend aid to more than 10 million migrant workers this year, according to a telephone conference organized by the All China Federation of Trade Unions (ACFTU) Tuesday.

The effort is meant to ease the plight of more than 20 million migrant workers who have been driven out of employment after the global financial turmoil forced many factories to close in China.

The federation said it aimed to cover about 5 million migrant workers with employment assistance, such as job training and vocational instructions. It would help the other 5 million safeguard their legal rights or offer them living assistance.

The federation also expected to add 5 million migrant workers this year to more than 66 million who have become trade union members by the end of 2008.

The federation used to only organize workers with urban residence permits, but is now giving more attention to recruiting and helping migrants.

Sun Chunlan, the ACFTU deputy chairperson, said trade unions in10 big cities would vouch for migrant workers, on a pilot basis, to secure small loans for migrants.

She said the ACFTU would also work closely with government human resources departments, enterprises, and social groups to organize various job fairs so as to find jobs for migrant workers.

http://www.chinadaily.com.cn/china/2...nt_7488166.htm
snow is red no está en línea   Reply With Quote
Old February 18th, 2009, 09:36 AM   #4005
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China's yuan continues to weaken against US dollar

2009-02-18

BEIJING -- The Chinese currency yuan weakened against the US dollar for the fourth consecutive trading day on Wednesday morning as safety-seeking investors pushed the dollar high.

The central parity was 6.8363 yuan against the US dollar on Wednesday, compared with 6.8352 on Tuesday, according to the People's Bank of China, China's central bank.

The Federal Reserve Bank of New York reported Tuesday that the Empire State Manufacturing Survey hit a new low of negative 34.7, suggesting that the manufacturing sector remained weak.

The gloomy data increased buying on the US dollar, which is often seen as a safe heaven for investors feeling uncertain about markets.

The US Dow Jones industrial average fell 3.79 percent to 7,552.60 on Tuesday as investors were concerned that the US economic stimulus package would not be enough to revive the economy.

On Wednesday, the yuan edged up to 8.6103 yuan against the euro from 8.7241 yuan on Tuesday.

The yuan's exchange rate is allowed to fluctuate daily within a band of 0.5 percent against the US dollar on either side of the central parity (reference) rate.

http://www.chinadaily.com.cn/china/2...nt_7488569.htm
snow is red no está en línea   Reply With Quote
Old February 18th, 2009, 09:54 AM   #4006
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

State Grid to invest 31b yuan to upgrade power grid

2009-02-18

The State Grid Corp of China (SGCC), the country's largest power supplier, said it would invest 31.3 billion yuan ($4.58 billion) this year to upgrade its power grid.

This will be an increase of 30.1 percent over 2008. A significant chunk of the money would go for projects in Northwest China. About 13.9 billion yuan, accounting for 44.4 percent of the total amount, would go towards construction of 750-kV power grids in Northwest China, and connecting the major power grids there with local grids in the Xinjiang Uygur and Tibet autonomous regions.

Besides, the company also plans to start construction of 11,015-km of 110-kV and above 110-kV power transmission and substation lines, while 8,843 km of power lines will be put into operation within the year.

The company said it would also promote the construction and upgradation of rural and urban power grids. The investment is in line with government policies of expanding domestic demand and economic growth.

Experts said the construction of power grids could benefit industries such as metallurgy, building materials, electricity and machinery manufacturing, as it would promote investment, consumption and trade.

Industry data show that the construction of every 100 km of power lines of a 500-kV grid project consumed 5,000 tons of steel, 2,000 tons of aluminum and 7,000 cu m of cement.

By the end 2010, SGCC will complete 27 substations of 750-kV capacity in Northwest China. The total capacity of that would be 57.3 million kV, involving 12,420 km of 750-kV power lines.


http://www.chinadaily.com.cn/bizchin...nt_7486752.htm
snow is red no está en línea   Reply With Quote
Old February 18th, 2009, 12:48 PM   #4007
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China approves support plan for elctronics and information industry

2009-02-18

China approved Wednesday a support plan for the country's electronics and information industry.

The government will boost innovation, increase financial input and promote the use of information technologies in various fields in the next three years, according to an executive meeting of the State Council, China's Cabinet, in Beijing.


http://www.chinadaily.com.cn/bizchin...nt_7489429.htm
snow is red no está en línea   Reply With Quote
Old February 18th, 2009, 12:49 PM   #4008
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

New funds help shore up stock market


2009-02-18

The number of new social security fund, qualified foreign institutional investor (QFII) and common fund accounts in mainland markets in January reached the highest level since last July, according to statistics from China Securities Depository and Clearing Corp.

The 34 newly opened accounts include 16 from social security funds, six from QFII and 12 from common funds, compared with 43 new accounts in July 2008.

The rejuvenation of social security funds, QFII and common funds contributed to the 9.33 percent surge in the stock market in the 15 trading days in January, experts said.

As of last December, the number of social security funds accounts reached 132, with 122 QFII accounts and 920 from common funds.

The total number of A-share trading accounts reached 120.73 million by the end of last year, with more than 321,000 accounts being added to the market in January.

http://www.chinadaily.com.cn/bizchin...nt_7489402.htm
snow is red no está en línea   Reply With Quote
Old February 18th, 2009, 12:50 PM   #4009
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China seeks slimmer, more efficient steel sector

2009-02-18

China is considering raising steel industry standards to force its mammoth steel sector to slim down and consolidate, leaving China - the world's top producer and consumer - with a few globally competitive steelmakers.

The country's central government will restrict steel production, force mills to move to coastal regions and ditch inefficient equipment under a draft proposal being discussed by the government, an industry source said on Wednesday.

The draft plan would limit China's crude steel output from 2011 onwards to 500 million tons a year.

That restriction may not take much of a bite out of existing production, since last year crude steel output was 500.49 million tons. But China has huge surplus capacity after its runaway economic boom of the last few years.

The plan would also require 40 percent of steelmaking capacity to be located in coastal areas, up from 35 percent now, but the government would put a mechanism in place to help companies assist those losing their jobs.

That move could put more steelmakers in the most economically developed areas of China and within reach of imported iron ore, coking coal and other materials, cutting costs and increasing competitiveness.

The plan would also increase the minimum size of blast furnaces from 300 to 400 cubic metres and the minimum size of converters, which turn melted pig iron into crude steel, from 20 to 30 tons.

The government is expected to finalize the package of measures by the end of this month, the source said.

The country's largest steelmaker is Baosteel Group, the parent company of Baoshan Iron and Steel Co Ltd, but the fragmented nature of the sector means that it accounts for less than 10 percent of crude steel production.

"The draft means the country will force the industry to consolidate and offer more advantages for its state-owned majors to acquire smaller rivals," said analyst Henry Liu at Macquarie Bank.

China, which produces more than one-third of global steel output, has been urging the sector to optimise itself as the fragmentation of the industry reduces its efficiency and weakens its bargaining power over price for raw materials.

China's policymakers have long wanted to crunch the sprawling sector into a few big players, hoping to have 10 steelmakers account for half the country's production instead of 20.

The plan, which aims to improve efficiency and cut pollution as well as adding to China's bargaining power, would gain traction as the economic crisis forces once swaggering steelmakers to look for a way to survive the economic bloodbath.

Late last year, Tangshan Iron and Steel Co, the listed unit of China's third-largest steel mill, with two smaller rival agreed to merge into the country's biggest listed steelmaker, creating a second Chinese industry champion in the world's top five steel producers.

The merger followed the creation of Shandong Iron and Steel Group in March from the State-owned parents of Laiwu Steel Corp and Jinan Iron and Steel Co and the formation of Anben Iron and Steel Group in northeastern Liaoning province three years ago.


http://www.chinadaily.com.cn/bizchin...nt_7489154.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 03:57 AM   #4010
big-dog
Moderator
 
big-dog's Avatar
 
Join Date: Mar 2007
Posts: 14,108
Likes (Received): 6029

China's trade of electronics, information products total $885 bln last year

www.chinaview.cn 2009-02-19

Quote:
BEIJING, Feb.18 (Xinhua) -- China's imports and exports of electronics and information products reached 885.4 billion U.S. dollars in value last year, said the Ministry of Industry and Information Technology here Wednesday.

The figure represented a 10 percent growth from 804.7 billion U.S. dollars in 2007. The growth rate was less than 23.5 percent in 2007.

Among the total, exports rose 13.6 percent to 521.8 billion U.S. dollars, which accounted for more than a third of China's total exports last year. Imports of these products expanded by 5.4 percent to 363.7 billion U.S. dollars, accounting for 32.1 percent of the country's total.

A big proportion of exports, or more than 75 percent last year, continued to be telecommunication products, computers and home audio and video products.

But more than 80 percent of the exports in terms of value were only processed or assembled in China with materials supplied by overseas clients, said the ministry.

Meanwhile, on the domestic market, China's electronics and information industry raked in 6.3 trillion yuan (950.3 billion U.S. dollars) of revenue from the sector's major operations, up 12.5 percent year on year.

The ministry said the sector experienced shocks from the global financial crisis as foreign-funded firms in the sector began to report slower growth in revenue, profits and export values in the second half of last year.

Large foreign-funded firms in the sector saw their revenue up 9.6 percent in the second half last year, profits down two percent and exports up 12 percent, which were 15.7 percent, 22.8 percent and 9.6 percent lower than those of domestic firms, respectively, according to the ministry.

In addition, growth in revenue of foreign-funded firm slowed down by 8.9 percent from the first half, while domestic firms decelerated by 3.8 percent.

The ministry predicted that exports of China's electronics and information products may continue to slow down amid weakening overseas demand.

It also said the industry's growth would more rely on domestic demands this year with huge investment pouring into the country's 3G (third-generation) mobile communication services.

The ministry expected revenue of the industry to grow by 12 percent year on year on the domestic market this year, the same as in 2008.

China approved Wednesday a support plan for the sector to boost innovation, increase financial input and promote the use of information technologies in various fields over the next three years.

The government said without elaboration that investment would focus on boosting the progress of the 3G services and promoting the use of digital TVs.
big-dog no está en línea   Reply With Quote
Old February 19th, 2009, 03:58 AM   #4011
big-dog
Moderator
 
big-dog's Avatar
 
Join Date: Mar 2007
Posts: 14,108
Likes (Received): 6029

Baidu Profit Increases 31% as China Web Use Grows

Quote:
By John Liu and Brian Womack

Feb. 18 (Bloomberg) -- Baidu.com Inc., operator of China’s most-used online search engine, posted a 31 percent increase in fourth-quarter profit after more of the nation’s citizens began using the Internet.

Net income rose to 288.7 million yuan ($42.2 million), or 8.31 yuan an American depositary receipt, from 219.8 million yuan, or 6.32 yuan, a year earlier, the Beijing-based company said today in a statement. Sales advanced 58 percent to 902.1 million yuan.

Chief Executive Officer Robin Li responded to a report by China’s state broadcaster in November, which alleged Baidu displayed misleading search results, by removing offending links and issuing a public apology, helping head off criticism of its services. Growing Internet usage in China, which added 88 million Web users last year, helped Baidu boost profit for the 15th consecutive quarter since its 2005 listing.

“Given the economic backdrop and limited visibility, we fall back on the one trend that we expect to see unaffected and that is for the continued growth of Internet users in China,” RBC Capital Markets Corp. analyst Stephen Ju wrote in a Feb. 17 report. Ju rates Baidu’s stock “outperform.”

Baidu’s profit trailed the 324 million yuan average of eight analysts’ estimates compiled by Bloomberg. Sales were projected to be 892 million yuan, based on 13 analysts’ estimates.

Revenue for the first quarter will probably be 780 million yuan to 800 million yuan, Baidu said today. That compares with the 811 million yuan predicted by 10 analysts.
big-dog no está en línea   Reply With Quote
Old February 19th, 2009, 04:02 AM   #4012
pearl_river
Registered User
 
Join Date: Feb 2009
Posts: 241
Likes (Received): 0

Financial Times: Spotlight into China's Bad Banks (AMCs)

Crux of article: China solved it's c. 2000 banking crisis by moving all the burdens onto the taxpayers from the big banks.

This is the best insight into what will happen in the UK/US/others in the years to come.



http://www.ft.com/cms/s/0/924d3b00-f...nclick_check=1
By Jamil Anderlini in Beijing

Published: February 18 2009 02:00 | Last updated: February 18 2009 02:00

While western governments argue over how to revive their ailing financial institutions, China's statecontrolled banks have been relatively unscathed by the global financial turmoil.

That is partly because -Beijing decided a decade ago to set up four bad banks, or asset management companies, to manage toxic assets. The move allowed the country's commercial banks to be transformed quickly into more market-oriented -institutions.

"China's banking system is very healthy and has even been able to withstand such a huge global financial crisis," says Tian Guoli, chief executive of Cinda Asset Management Corporation, the largest and most successful of the bad banks.

However, many analysts say although the establishment of the AMCs cleaned up the state banks, the transferred assets have become hidden risks within the financial system - at a time when Beijing is ordering banks to make huge loans as part of a fiscal stimulus designed to shore up crumbling economic growth.

The banking system's problems started in the late 1970s, when China's leaders began using financial institutions as piggy banks to fund pet projects.

In the wake of the Asian financial crisis in 1997 many of these projects were unable to service their debts and the country's banking system teetered on the brink of collapse.

In 1999 and 2000 China's largest banks transferred a combined Rmb1,400bn ($205bn, €163bn, £144bn) to the AMCs at full face value and in return mostly received 10-year bonds paying 2.25 per cent per annum - a clever piece of financial alchemy that allowed them to turn holes in their balance sheets into interest-bearing assets.

According to government estimates, the AMCs lowered the aggregate nonperforming loan ratio at the big commercial banks by 10 percentage points, from well over 30 per cent, and helped lower the debt to asset ratio of the state-owned industrial sector by 30 percentage points.

"The benefit of the Chinese model is that it happened virtually overnight but the full liability went to the government and the taxpayer," says Charlene Chu, a Beijing-based banking analyst at Fitch Ratings. "That's a little harder to do politically in the west."

In the wake of the initial bail-out two things quickly became clear. First, there would need to be another large transfer of toxic assets from the banks as more non-performing loans appeared on their books, and second there was no way the AMCs would ever be able to repay the principal on the bonds they had issued to the banks.

"At the beginning there was an unrealistic expectation that they could quickly reduce the magnitude of the problem but they eventually realised the quality of the assets were abysmal," says Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics, a think-tank, in Washington.

Beginning in 2003, the government carved out another Rmb1,000bn of non-performing loans from the banks and handed them to the AMCs, this time in exchange for a variety of government-backed bonds, often at discounts to their face value. Cinda says it has received about Rmb1,000bn in bad loans. The AMC says it made a profit last year of Rmb1.2bn, compared with combined profits for all four bad banks of Rmb2.3bn.

This is a rare insight into the finances of these entities, which have not released public figures for years but it is unclear how the profits are accumulated, or what the asset base of the AMCs is.

Until three years ago the AMCs were reporting -aggregate returns of about 20-22 fen on the renminbi - a 20 per cent to 22 per cent return on the face value of the assets they received from the banks. However, they have since been much less forthcoming.

"These AMCs must by now be massively insolvent because all the better assets have been sold and they have used the proceeds to pay the interest on the bonds they issued," says Mr Lardy.

Many of those bonds are due to mature in the coming months. However, in dozens of interviews Chinese officials have proved unwilling to answer any questions on how the principal of bonds totalling at least Rmb1,000bn - the minimum face value of bonds thought to be still on their collective books - will be repaid to the banks.

In a report last year, China's own state auditor said it was concerned that the AMCs were no longer able to pay the interest, let alone the principal, on the bonds they had issued to the banks.

In the run-up to initial public offerings by the largest state banks in 2004, the ministry of finance said it would guarantee the bonds issued by the AMCs but the banks have warned in public filings that this is not a legal guarantee.

Fitch Ratings regards these bonds as sovereign liabilities and says when they are taken into account, total outstanding Chinese government debt increases from the official estimate of 18 per cent of gross domestic product to almost 22 per cent.

China has not yet fully dealt with the fallout from its last financial crisis but analysts say a new crop of bad loans is already starting to emerge as the economy softens.
pearl_river no está en línea   Reply With Quote
Old February 19th, 2009, 10:00 AM   #4013
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China PC sales up 15.2% despite market gloom

2009-02-19

More than 32 million personal computers (PCs) were sold in China in 2008, up 15.2 percent year-on-year, with sales revenue reaching 161.24 billion yuan ($23.61 billion), a rise of 9.6 percent year-on-year, according to a report on Tuesday from CCID Consulting, a leading IT consulting firm in China.

Including desktop PCs, laptops and servers, the growth of both PC sales volume and value in China was slower in 2008 amid market gloom, the report indicated.



Around 22.49 million desktop PCs were sold in 2008, up 6.8 percent year-on-year, with sales revenue falling 0.8 percent to 85.37 billion yuan compared with 2007.

Meanwhile, the laptop market performed better than average, with sales volume and revenue of 9.02 million units and 63.55 billion yuan, up 43.2 and 27.1 percent respectively.



Server sales revenue witnessed a moderate increase of 11.1 percent to 12.32 billion yuan, the report revealed.

The report also said that the growing popularity of laptops, saturated first- and second-tier markets and the global financial crisis had dampened China's desktop market in 2008.

In addition, companies, especially small- and medium-sized firms, slashed their IT budgets as the financial crisis began to hit China, it said.

Chinese PC brands will find it difficult to cope amid soaring raw material and labor costs, and challenges from international brands, according to the report.

http://www.chinadaily.com.cn/bizchin...nt_7493114.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 10:02 AM   #4014
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

Chinese imports to get forex fund boost

2009-02-19

The government will use its abundant foreign exchange reserves to boost imports and domestic demand as part of its efforts to check the economic slowdown caused by the global financial crisis.

Addressing a press conference Wednesday, Fang Shangpu, deputy director of the State Administration of Foreign Exchange (SAFE), said the administration would introduce more measures to support Chinese firms to expand overseas, too.

But the government is determined to keep the yuan's rate "generally stable", another SAFE official said.

Fang's remarks confirm what Premier Wen Jiabao told the World Economic Forum in Davos last month - that China could use its foreign exchange reserves to boost the domestic market.

As a step toward that, the government will send a business delegation to four European countries later this month with purchase orders worth 15 billion yuan ($2.2 billion) for technologies, equipment and other goods.

SAFE will encourage trade credit and cross-border financing, and take steps to match these actions with proper risk management, Fang said. A number of Chinese companies are already said to be pursuing major merger and acquisition deals overseas, most noticeably in the raw materials sector.

Government spokespersons, including SAFE officials, denied Internet reports that the yuan would be devalued at 6.95-7 against the US dollar.

Keeping the yuan exchange rate at "a reasonable and balanced level" is conducive to not only China, but also many other economies, said Deng Xianhong, another SAFE deputy chief. "It will contribute to the fight against the global financial crisis, too."

The country has about $1.95 trillion in foreign exchange reserves, the world's largest. And it has the lion's share of investment in low-risk, low-yield assets such as the US treasury bonds.

The government de-pegged the yuan from the US dollar in July 2005, after which the Chinese currency has risen about 20 percent against the greenback.

But since the country's economic growth dropped to a seven-year low of 6.8 percent in the fourth quarter of 2008, there has been speculation that the yuan could be devalued to bolster exports.

Officials and economists have, however, warned that such a move could lead to a competition among Asian economies to devalue their currencies, which in turn would harm China's export sector. A weaker yuan could trigger a capital flight, too, they said.

The country's foreign exchange reserves increased by about $280 billion in the first six months of 2008, but its rise was about half of that in the second half. Despite that, the current account surplus for the whole of last year reached $440 billion, up 20 percent from the previous year.

Deng said that though the financial crisis has prompted some foreign firms to pull money out of China in the past few months, the capital outflow was "limited" and not a major cause for concern. The country's foreign exchange assets are generally safe, he said.

http://www.chinadaily.com.cn/china/2...nt_7490301.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 10:49 AM   #4015
big-dog
Moderator
 
big-dog's Avatar
 
Join Date: Mar 2007
Posts: 14,108
Likes (Received): 6029

Quote:
Originally Posted by snow is red View Post
China PC sales up 15.2% despite market gloom



Around 22.49 million desktop PCs were sold in 2008, up 6.8 percent year-on-year, with sales revenue falling 0.8 percent to 85.37 billion yuan compared with 2007.
people are replacing their desktops with laptops
big-dog no está en línea   Reply With Quote
Old February 19th, 2009, 01:44 PM   #4016
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China's treasury debt holdings up

2009-02-19



China's treasury debt holdings in the US grew by $14.3 billion in December amidst speculation that it was seeking other options to deploy its nearly $1.95 trillion in foreign exchange reserves.

The nation's holdings of the treasuries totaled $696.2 billion in December, up from $681.9 billion in November 2008, the US Treasury international capital flow report released yesterday showed.

The rise in treasury debt has triggered concerns that the country's continual pile-up of US debt would lead to investment losses if treasury prices tumble in future.

China has accelerated its holdings of treasury debt since August 2008, when holdings grew by $23.7 billion month-on-month. By September, it had replaced Japan as the primary holder of these debt instruments.

Analysts said since the treasuries are relatively stable in value compared to other financial products, China has apparently aimed to play safe by buying up these US bonds.

However, now that China's holdings of treasuries account for one-third of its foreign exchange reserves, some warned that "putting all eggs in one basket" is risky.

"China needs to diversify its foreign exchange reserves basket," said Zhang Ming, economist with the Institute of Finance and Banking at the Chinese Academy of Social Sciences. "Its holdings of these treasuries face the danger of a price drop as the US is expected to issue more bonds to stimulate its economy," he told China Daily.

With US interest rates at near-zero levels, the dollar's value may slide, and its recent strong rally may not sustain, economists said. The sliding dollar will push down treasury debt prices, economists said.

"As these treasuries are much sought after by international investors, it is time China took advantage of the timing to cut its holdings," Zhang said.

China should use its abundant foreign exchange reserves to buy commodities and energy products to support its economic growth, said Guan Qingyou, a researcher with Tsinghua University.

Premier Wen Jiabao has said that the country is studying ways to use its foreign exchange reserves to buy equipment and technologies that are key to its economic development.

Despite uncertainties about the prices of US treasuries, international investors remain invested in the US market. The report has shown that net capital inflows into the US rose to $74 billion in December from $61.3 billion in the previous month.

Foreign holdings of dollar-denominated short-term US securities, including treasury bills, increased $2.1 billion in December.

Net foreign purchases of long-term securities reached $22.4 billion in December compared with a net selling of securities worth $37.6 billion in November, according to the report.

http://www.chinadaily.com.cn/bizchin...nt_7491029.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 03:35 PM   #4017
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

VC firms optimistic about China investment prospects

2009-02-19

Over half of venture capital (VC) companies from home and abroad remain optimistic about investment prospects in China, though most of them are more cautious due to the current financial turmoil, a report said.

China Venture Capital Research Institute Ltd surveyed 402 VC companies over the past three months, including 261 local companies and 141 overseas ones.

According to the survey, 57 percent of VC companies believed there would be investment opportunities for China in the current financial crisis, while only about 1.64 percent of respondents said they were pessimistic about future investment in the country.

http://www.chinadaily.com.cn/bizchin...nt_7493922.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 03:36 PM   #4018
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China holding up well in sourcing plans

2009-02-19

Many international buyers expect to source more goods from China this year even as they plan to cut overall spending on imports, according to a survey released on Thursday.

Global Sources, which matches buyers and sellers of Chinese goods, said 54 percent of respondents to its annual importer survey are budgeting on spending less on imports in 2009; however, 40 percent plan to buy more from China, with another 17 percent expecting no change.

"That tells you that China remains centre stage as the main supply base for these buyers," Craig Pepples, the chief operating officer of Global Sources, said in a telephone interview.

Global Sources received survey responses from 129 companies that import more than $1 million of goods.

A companion survey showed Chinese suppliers in an optimistic mood, with 36 percent of 202 export-focused companies and 57 percent of 191 domestically-orientated firms expecting double-digit sales growth this year.

"Are the orders coming back? I'm hearing from suppliers that yes, they are," Pepples said from Hong Kong.

"They're not as large often in terms of volume, but it seems like some of the inventory levels are down low enough that they need to be replaced. That is encouraging, but we're not seeing the light at the end of the tunnel yet," he said.

http://www.chinadaily.com.cn/bizchin...nt_7493731.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 03:37 PM   #4019
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China unveils support package for light industry, petrochemical sector

2009-02-19

China's State Council, or the Cabinet, announced Thursday support plans for the country's light industry and petrochemical sector.

China said it would unveil support plans for 10 industries to stimulate the economy. So far, similar plans for the auto, steel, shipbuilding, textile, machinery-manufacturing, electronics and information industries have already been announced.

http://www.chinadaily.com.cn/bizchin...nt_7494116.htm
snow is red no está en línea   Reply With Quote
Old February 19th, 2009, 03:38 PM   #4020
snow is red
Vicky Pollard lol
 
snow is red's Avatar
 
Join Date: May 2007
Posts: 5,091
Likes (Received): 89

China Merchants Group's profit falls 29% in 2008

2009-02-19

China Merchants Group, a industrial and trading conglomerate, said on Thursday it had posted a profit of 13.92 billion yuan ($2.04 billion) in 2008, a 29 percent decrease year-on-year, the first slump in seven years, as a result of the economic downturn.

The group said challenges will be tougher in 2009 and it will focus on cost control and risk management this year to limit the downward trend.

As one of the 10 biggest enterprises in terms of profit, it had total assets worth 217.19 billion yuan in 2007.


http://www.chinadaily.com.cn/bizchin...nt_7493990.htm
snow is red no está en línea   Reply With Quote
Reply

Tags
china, chinese, economy, gdp

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 12:28 AM. • styleid: 14


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2015, vBulletin Solutions, Inc.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2015 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2015 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

Hosted by Blacksun, dedicated to this site too!
Forum server management by DaiTengu