China Economy: News & Discussion

[Pulkit]

https://pbs.twimg.com/media/BxvbSdCCUAAywwH.jpg


List of Agreements signed today between India & China in Ahmedabad

 

[arpakola]

 

[arpakola]

delete please

 

[prohumanity]

It's so hard these days to separate true news from half truths and white lies as there are a lot of news web sites spreading distorted facts based on who is financing these sites and what spin they want on the news. To give you a simple example...Some Indian web sites hinted that BJP is the one who is
interested in deeper ties and trade with China. Then, I was reading Chinese new site, XinHua and was surprised to see a photo of former PM MM Singh, Sonia Gandhi etc. with Chinese Prez, Xi on Sept18,2014.. Mr. Singh was saying " there is no difference among our both parties(Congress and BJP)
when it comes to out China Policy , we both support a stronger and deeper relationship and trade with China. Most notably, neither this picture nor this statement was there on any major Indian (English)news site.
Now a days, I like to watch the direct interviews and statements of leaders on U Tube. Just today, I finished watching CNN ,Farid Zakaria's interview (09/21/2014) of Mr Modi...No spin..clear cut views..no ambiguity, clear answers from Mr. Modi....that was very insightful to watch. Hearing it directly from the mouth of the horse.
Waiting to watch Mr. Modi speak in U.N. General Assembly meeting on Sept 27 in NYC and his press conference with Mr.Obama on Sept 28-29. More facts directly from mouth of the horse !

 

[stockbrokers]

It's very possible for China to be the leader as long as they focus on fixing the regulations for foreign investors

 

[Zebra]

Mark Zuckerberg Speaking Chinese - Facebook's Mark Zuckerberg Holds Q&A Session in Chine


Published on Oct 23, 2014, by Prank And Vine Video

Mark Zuckerberg - Speaking Mandarin (Q&A in Chinese at Tsinghua University in Beijing) October 22, 2014. Mark Zuckerberg speaking Mandarin fluently - Full Version - Full Interview Mark Zuckerberg...

 

[sorcerer]

China's Economy Slowing Further Despite Liquidity Injections

12:46 15.11.2014(updated 13:22 15.11.2014)

China's economy has slowed further in October, as data by People's Bank of China (PBOC) indicated as the limited stimulus action had no effect amid high volatility in the nation's finance.

MOSCOW, November 15 (Sputnik) – The economy of mainland China continued its slowdown in October, as commercial lending contracted, manufacturing growth decreased and the recent governmental attempts at bolstering activity through money injections have had no decisive effect, while experts call for monetary easing.

Mainland China's authorities have been struggling to redesign the nation's economy to be based on a more sustainable domestic consumption model instead of the export-oriented growth model that provided for an extraordinarily fast pace of expansion during the last two decades. However, as October's data has shown, the nation is still facing more trouble than success in their transit. The economy continues to cool as foreign demand on the Chinese-produced industrial goods is shrinking.

"We do have problems that have been accumulating over time," China's Vice Finance Minister Zhu Guangyao said during the G20 summit in Australia as quoted by Reuters.

According to Bloomberg estimates, China's cumulative production amounts in October reached only 662.7 bn renminbi ($108 bn), down by 36% compared to September's 1.05 tn renminbi ($170 bn). This is also lower than Bloomberg experts' earlier median estimate of 887.5 bn.

The decline in commercial credit is attributed to the multiple reports concerning bad loans, which have been on the rise recently, having accelerated in summer. Furthermore, deposits in banks have decreased, severely restraining the banks' lending ability. The local government debt has also contributed to pressure on the nation's financial system.

"The downward pressure on the economy will increase if we don't step up policy support," Wang Jun of the Beijing-based China Centre for International Economic Exchanges (CCIEE) told Reuters. In his opinion, the government should undertake several easing measures like lowering reserve requirements for commercial banks so that they could maintain volumes of lending with decreased financial resources.

China's authorities have been reluctant to implement monetary easing measures as they may further destabilize the looming asset bubble in the real estate sector. However, the People's Bank of China has poured about 770 bn renminbi ($125.6 bn) into the nation's economy by providing three-moths loans to several commercial banks in order to support lending. Surprisingly, this did not help, as the October data have shown.

"The central bank seems to be more inclined to use innovative tools to release liquidity, but such tools have limited effectiveness," Niu Li of the State Information Centre said as quoted by Reuters. In his opinion, the government in Beijing has opportunities to implement some limited easing measures as inflation is low and credit is still expensive. However, some experts argue, cutting interest rate may spawn asset bubbles in some sectors.

China's manufacturing rose 7.7% in October year-on-year, while fixed-asset investment was at its lowest since 2001, Bloomberg data have shown.

"I believe that targeted easing so far are not effective enough to support China's slowing growth momentum," Shen Jianguang of Mizuho Securities Asia Ltd. in Hong Kong told Bloomberg. In his words, interest rate cuts are possible as early as this December. Others say decisive easing will not come into effect before 2015, as Peaople's Bank of China (PBOC) is still more interested in addressing credit risks than stimulating financial sector, which in the current volatile situation may be dangerous.

Larger stimulus seems unlikely anytime soon because the total amount of local government debt amounts to 4 tn renminbi ($650 bn), and accelerating commercial lending is only exacerbating this burden. As these debts are ultimately guaranteed by the central government in Beijing, the authorities are unlikely to undertake any action to complicate their own financial position. On the other hand, sluggish growth demands a decisive response. One way or another, China is in a trap of low growth, high volatility, bubble risks, and high local indebtedness, which have left it lowering the reserve requirements ratio (RRR) the only possible tool of easing in the current circumstances. The RRR shift is likely to be undertaken as soon as this year, however, it is yet unclear whether it will prove efficient.

Beijing'
s growth target for 2014 is 7.5%, but third quarter data has fallen short of the figure, reaching only 7.3%, while the current trends suggest little optimism for fourth quarter results.
China's Economy Slowing Further Despite Liquidity Injections / Sputnik international

 

[RAM]

America usurped: China becomes world's largest economy - putting USA in second place for the first time in 142 years


Highlights

Figures show the Chinese economy is worth $17.6 trillion, compared to America's $17.4 trillion

The IMF estimates China's economy will be worth a whopping $27 trillion in 2019

The US has been the global economic performance leader since it overtook Britain in 1872

White House seemed oblivious on Wednesday, crowing that 'the economic policies that this president put in place are the envy of the world

Read more: China overtakes US as the world's largest economy, says IMF | Daily Mail Online
Follow us: @MailOnline on Twitter | DailyMail on Facebook

 

[Compersion]

 

[ezsasa]

China's president makes ... $22,000 a year?!

Chinese President Xi Jinping is getting a whopping 60% raise, boosting his salary to roughly $22,000 a year.
Chinese civil servants -- including Xi -- are getting their first salary increases since 2006, even though the economy is now growing at its slowest pace in 24 years. Part of the reason is to entice officials to keep their jobs, as some have quit over low pay, according to state media.

As part of the initiative, China's Ministry of Human Resources and Social Security says government workers can expect at least one raise every two years going forward.

Xi's salary lags far behind the $400,000 that President Obama takes home -- even with various allowances Xi is given based on his duties and rank. (President Obama is also given a similar expense budget and funds to cover travel costs, and he and first lady Michelle Obama reported $481,098 adjusted gross income on their most recent tax return.)

But could Xi possibly earn only 136,620 yuan ($22,000) a year? At that rate, Xi's salary is actually under the U.S. poverty line for a household of 4 -- $23,850 a year.
After all, Xi is often spotted in sharp suits, and his wife, Peng Liyuan, has become something of a fashion icon, much like her American counterpart.
Even at his new salary level, Xi would have a tough time affording rent in Beijing. A quick look at current listings for the city show that 1,400 square foot homes rent for around 15,000 yuan ($2,400) a month.

Looks like Modi and Xi Earn more or less the same isn't it?

 

[Ray]

China: nutrition guiding light or ticking time bomb?
The world's second largest economy is leading the world in reducing malnutrition, but its overweight children threaten to impact economic growth
Fat China: how are policymakers tackling rising obesity?

China: nutrition guiding light or ticking time bomb? | Global Development Professionals Network | The Guardian

 

[Martian]

Taiwan Hiwin Endoscopic Robotic System

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Touring Taiwan’s Medtech Sector: Hiwin Enters Medical Space | medGadget

 

[roxanwright]

China's economy is slowly dropping now. I am focusing on making a thesis about this and I've read some reply on this thread, some has wonderful insights. Thanks

 

[amoy]

China's economy is slowly dropping now. I am focusing on making a thesis about this and I've read some reply on this thread, some has wonderful insights. Thanks

Do browse 【the doom and gloom of Chinese economy】on DFI lasting many years where u'd be able to thread your way through the fall of China inside out for yr papers. [emoji33]

~Tapa talks: Orange is the new black.~

 

[blueblood]

China's economy is struggling. Here's why;

• China's auto sales growth is expected to be a tiny 3%.
• China's electricity consumption growth is reduced to 1.3%, lowest in thirty years.
• China's steel consumption is witnessing negative growth, at -3.3% in 2014.
• According to China's premier Li Keqiang, GDP figures are man-made and unreliable.
• China's real GDP is now a negative -1.1%
  

 

[saipaimai]

you know what,？China has a great national bureau of statistics. The negative impact of poor can fool in front chinapigs.

 

[I_PLAY_BAD]

China's economy is struggling. Here's why;

• China's auto sales growth is expected to be a tiny 3%.
• China's electricity consumption growth is reduced to 1.3%, lowest in thirty years.
• China's steel consumption is witnessing negative growth, at -3.3% in 2014.
• According to China's premier Li Keqiang, GDP figures are man-made and unreliable.
• China's real GDP is now a negative -1.1%

There will be ups and downs in any countries growth story. Even the great USA dwindled in 2008 crisis. So lets not make a big news out of current economic situation of China. Lets wait and watch.

 

[Martian]

China's huge $57.7 billion August 2015 trade surplus

China Aug trade surplus up, imports collapse | FXStreet

 

[blueblood]

China forex reserves slump by record $93.9B in August

China's foreign exchange reserves posted their biggest monthly fall on record in August, reflecting Beijing's attempts to halt a slide in the yuan and stabilize financial markets following its surprise move to devalue the currency last month.

China's reserves, the world's largest, fell by $93.9 billion last month to $3.557 trillion, central bank data showed on Monday.


The drop left market watchers questioning how sustainable China's efforts to support the yuan are, as capital flows out of the country due to fears of an economic slowdown and prospects of rising U.S. interest rates.

"Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore.

http://www.cnbc.com/2015/09/07/china-foreign-currency-reserves-fall-by-record-amount-in-august.html

 

[amoy]

China Sells U.S. Treasuries to Support Yuan

China's Record Dumping Of US Treasuries

But what is likely the take home message for non-Chinese readers from all of this, is that while there has been latent speculation over the years that China will dump US treasuries voluntarily because it wants to (as punishment or some other reason), suddenly China is forced to liquidate US Treasury paper even though it does not want to, merely to fund a capital outflow unlike anything it has seen in history. It still has a lot of 10 Year paper, aka FX reserves, left: about $1.3 trillion at last check, however this raises two critical questions: i) what happens to 10 Year rates when whoever has been absorbing China's Treasury dump no longer bids the paper and ii) how much more paper can China sell before the entire world starts paying attention, besides just JPM and Goldman... and this website of course.

Finally, if China's selling is only getting started, just what does this mean for future Fed strategy. Because one can easily forget a rate hike if in addition to rising short-term rates, China is about to dump a few hundred billion in paper on a vastly illiquid market.