China - Economic Data & News 16 (May 17 - Dec 18)

China - Economic Data & News 16 (May 17 - Dec 18)

Postby winston » Tue May 02, 2017 8:11 am

Bad debts buildup fuels concern

China's level of leverage is rising at an "alarming pace," particularly in the finance sector, a senior central bank official said in a commentary, amid growing concern by the country's senior leaders over financial security.

Xinhua News Agency yesterday cited Xu Zhong, head of the People's Bank of China's research bureau, as saying the country needed to deleverage at a "proper pace" to reduce financial sector debt and avoid systemic financial risk.

"China's overall leverage level is reasonable but is rising at an alarming pace, especially in the financial sector," Xu said. The original commentary was published in business journal Caijing Magazine.

Xu said high levels of stimulus spending from government paired with poor corporate management and financial supervision were key factors causing rising levels of leverage, Xinhua said.

He added the government should stick to "prudent and neutral" monetary policy, reduce emphasis on economic growth targets, and improve corporate governance so authorities did not have to step in so frequently to help companies out.

"Financial security is achieved via reforms, not bailouts," Xinhua reported Xu as saying.

Last week President Xi Jinping called for increased efforts to ward off systemic risks and help maintain financial security. Analysts say financial risk and asset bubbles pose a threat to the world's second-largest economy if not handed well.

Former Chinese finance minister Lou Jiwei also said last month that high leverage was the biggest risk facing China's economy because debt has piled up despite government efforts to deleverage.

The Bank for International Settlements warned last year that excessive credit growth in China is signaling an increasing risk of a banking crisis in the next three years.

China watchers generally expect another modest increase in short-term interest rates by the central bank around June, after similar moves earlier this year, but see no aggressive or politically sensitive tightening moves ahead of a major leadership transition in the country later in the year.

The People's Bank of China and other regulators have ramped up pressures on several fronts as they look to contain financial risks after years of debt-fueled stimulus.

In particular, regulators are targeting riskier forms of financing which often interconnect the official and shadow banking sectors and other financial firms such as brokerages and trust companies.

Local governments have also adopted measures to cool heated housing markets, with mixed results so far. But again, taking harsh measures poses risks to economic growth.

Source: REUTERS
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby winston » Thu May 04, 2017 6:43 am

Say goodbye to easy money as China’s central bank puts squeeze on liquidity

PBOC moves to tighten funds in the banking system expected to push up short-term rates

“The good economic performance in the first quarter has given room for financial deleveraging, a key theme for this year”


Source: SCMP

http://www.scmp.com/news/china/economy/ ... -liquidity
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby winston » Mon May 08, 2017 11:54 am

China Apr Exports in RMB Terms Up 14.3% YoY, Missing Estimates

The General Administration of Customs (GAC) announced that the total value of imports and exports amounted to RMB2.22 trillion in April 2017, up 16.2%.

Exports grew 14.3% to RMB1.24 trillion, below estimates of 16.8% growth.

Imports climbed 18.6% to RMB979.1 billion, lower than that of 26.3% increase in the previous month.

During the period, trade surplus was RMB 262.3 billion.

For the first four months of 2017, exports added 14.7% to RMB4.57 trillion. Imports gained 27.8% to RMB3.85 trillion.

Source: AAStocks Financial News
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby behappyalways » Mon May 08, 2017 4:14 pm

China's April FX reserves rise, beating market expectations
http://www.cnbc.com/2017/05/07/china-ap ... -rise.html
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby behappyalways » Wed May 10, 2017 3:36 pm

China's consumer prices rose at a faster pace in April, producer prices slowed again
http://www.cnbc.com/2017/05/09/china-re ... rices.html
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby behappyalways » Fri May 12, 2017 5:00 pm

From The Economist


In the name of GDP

In China, a TV soap on corruption attracts a mass following

And one character—an official obsessed with GDP growth—becomes a cult hero


Print edition | Finance and economics

May 13th 2017

| SHANGHAI

RARELY has a Chinese city boss had more fans than Li Dakang, the earnest, driven Communist Party chief of Jingzhou. “I want development, I want speed and I want GDP,” he recently intoned. “But I want it to be modern GDP, GDP that comes without pollution.” Over the past month tens of millions have tuned in to watch him strive to fulfil these promises. On their smartphones, they share images of the heavy-eyed man with an easy smile, quoting his words and cheering him on. His policies have even been immortalised in a musical tribute, “The GDP Song”.

Li Dakang is not real, nor is Jingzhou. They exist only on “In the Name of the People”, a wildly popular 55-part television series about China’s battle against graft. Since its first broadcast in March, the show has attracted attention for its depiction of official corruption, unusual in the context of Chinese censorship. Less noted is the insight it has offered into a range of China’s economic problems—not just in its storyline but in the viewing public’s reaction.

The show touches on economic topics often too hot for the Chinese media to handle. Factory workers clash with police after a bankruptcy wipes out their company shares. A senior leader’s child amasses big stakes in local firms for his family. A small-business owner ends up in hock to loan sharks. Local bankers demand “consulting fees” when extending loans, pocketing the cash. (So realistic is this portrayal that the Chinese press reports that Guo Shuqing, the country’s most senior banking regulator, pointed to the show in a warning to banks at a recent meeting.)

The most consistent economic storyline is Li’s relentless pursuit of growth and the problems this narrow focus brings. He himself seems clean, but turns a blind eye to corruption around him. His insistence on moving quickly causes real harm. As a young official, a frenzied drive to build a country road leads to a village chief’s death. Later in his career, his hasty decision to bulldoze a factory sparks a protest in which more than 30 people are injured.

This sorry record seems grounds to object to Li. Instead, this flawed figure is by far the show’s most beloved, more so than the dedicated, upright officials who lead the party’s anti-graft battle. Online merchants, a good bellwether of trends, have started selling versions of the sleeveless jumper and tea Thermos that he favours. The internet memes doing the rounds—for instance, a pledge to “defend GDP” for Li’s sake—are partly in jest but do reveal support for public servants in his mould.

Why is Li Dakang so liked? In part because, warts and all, he is more believable than the saintly officials seeking to snuff out corruption. But there is more to it. Even when Li makes mistakes, his obsession with growth is very well received. Cautious, clean officials who err on the side of inaction are seen in a much less flattering light. In recent years China has started to emphasise policy goals other than GDP, from promoting culture to protecting the environment. Li Dakang-mania shows there are limits to this shift, and not just because of the government. Fast growth is still immensely popular.
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby behappyalways » Fri May 12, 2017 5:02 pm

China Has World's Biggest Productivity Problem
https://www.bloomberg.com/view/articles ... ty-problem
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby winston » Sat May 13, 2017 8:12 am

Many financial institutions should go bust, China central bank researcher says

Xu Zhong, chief analyst at People’s Bank of China, says lenders are being kept wrongly afloat because certain authorities ‘don’t want to open the jar’

“Not a single Chinese financial institution has gone bankrupt ... are China’s financial institutions really so good that not even a single one has gone bust?” Xu asked in a speech at Peking University.

“The real problem is that some authorities and local governments don’t want to open the jar.”


Regional banks often serve as tools for the local government to keep local state firms afloat and a source of financing for infrastructure projects, making it nearly impossible for regional banks to go under


China had 4,261 banks at the end of 2015, according to the latest data from the banking regulator. But among them, only big five state lenders, namely the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications, as well as 12 commercial joint-stock banks are regarded as systemically important institutions.


Source: SCMP

http://www.scmp.com/news/china/economy/ ... ntral-bank
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby behappyalways » Tue May 16, 2017 3:36 pm

New fears of China slowdown sparked by disappointing data
http://www.telegraph.co.uk/business/201 ... ting-data/
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Re: China - Economic Data & News 15 (Aug 16 - Dec 17)

Postby behappyalways » Wed May 17, 2017 12:38 pm

China Gives Markets Break as Deleverage Fever Begins to Ease

Source: Bloomberg

https://www.bloomberg.com/news/articles ... ns-to-ease
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