China - Economic Data & News 03 (Jun 09 - Jan 10)

China - Economic Data & News 03 (Jun 09 - Jan 10)

Postby winston » Mon Jun 01, 2009 7:29 am

Industries strengthen bottom lines by Kathy Wang, The Standard HK

Industrial profits in 22 Chinese provinces rebounded in April, narrowing the profit drop for the first three months.

Aggregate net income fell 27.9 percent year-on-year for the first four months, an improvement from 32.2 percent in the January-March period, the National Bureau of Statistics said yesterday.

Combined profits for companies covered by the survey, which have annual sales of more than 5 million yuan (HK$5.7 million) in the 22 provinces, account for 78.6 percent of the nation's total, the bureau noted.

Earnings improved from sectors such as non-ferrous metals processing and oil refining, the bureau said.

Power generators made 1.37 billion yuan profits for the four months, compared to losses of 2.19 billion yuan in the first quarter.

"Recent purchases by the State Reserve Bureau of copper, nickel, tin and zinc have been aimed at increasing state stockpiles when materials prices are low," said Jing Ulrich, chairman of China equities at JPMorgan.

"Crude oil imports have been down 4.5 percent in the first four months, but rose by 13.6 percent year-on-year in April. Overall demand in China has been lower, but an initiative to increase strategic stockpile levels could lend incremental support going forward," Ulrich said.

The National Bureau of Statistics report tracks industrial companies in 22 provinces, excluding Beijing, Chongqing, Guangdong, and some other areas. The economy is recovering, even though difficulties still linger.

Expanding investment is still the most effective way to stimulate the economy, the bureau said earlier.

The mainland's semi-official purchasing managers' index and the CLSA PMI for May will be released today and are likely to record a seasonal drop, said Barclays Capital China strategist Peng Wensheng.

"We argue that overall economic conditions, including the rapid expansion of credit in recent months, remain favorable for a growth recovery," the strategist said.

"Private sector contribution has been muted in the recent surge in fixed investment, and the government is keen to stimulate private investment to complement the increase in public expenditure," Moody's Economy.com analyst Sherman Chan wrote.
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby millionairemind » Mon Jun 01, 2009 6:02 pm

Chinese Manufacturing Grows, Adding to Recovery Signs (Update1)
By Bloomberg News

June 1 (Bloomberg) -- China’s manufacturing expanded for a third month, driving stocks to the biggest gain since March and adding to evidence that the economy is recovering.

The official Purchasing Manager’s Index was at a seasonally adjusted 53.1 in May after registering 53.5 in April, the Federation of Logistics and Purchasing said today in Beijing in an e-mailed statement. A reading above 50 indicates an expansion.
http://www.bloomberg.com/apps/news?pid= ... refer=home
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby millionairemind » Mon Jun 01, 2009 7:18 pm

Got green shoots or not??

June 1, 2009
China's bank regulator glum
BEIJING - CHINA'S economy faces marked economic difficulties that are contributing to serious credit risks for the nation's lenders, the China Banking Regulatory Commission said on Monday.

In its annual report, posted on its website, the agency said the global financial crisis had yet to bottom out, while the domestic economy was under pressure. -- REUTERS
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby millionairemind » Tue Jun 02, 2009 8:10 pm

CCB reveals aversion to western banks stakes
By Jamil Anderlini in London and Sundeep Tucker in Hong Kong
Published: June 1 2009 23:30 | Last updated: June 2 2009 08:15

Chinese banks are shunning investments in western banks because they hold doubts about their financial health, one of China’s most senior bankers has warned.

Guo Shuqing, chairman of China Construction Bank, said Chinese banks also were being deterred by a lack of growth potential in developed markets

“It’s very difficult at the moment because there are still so many uncertainties,” Mr Guo told the Financial Times in an interview on Monday. “We are not very interested on expanding our business in developed countries because the market is limited and growth potential is not there because of over-banking.”

The warning came as Goldman Sachs on Monday sold up to $1.9bn worth of shares in Industrial and Commercial Bank of China, in the latest high-profile divestment of stock in a mainland lender.

As recently as the beginning of last year, all of China’s largest state-controlled banks were looking to acquire stakes in western banks that would give them instant access to developed markets. But Chinese financial institutions have subsequently lost billions of dollars from poorly timed investments in western companies.

CCB, now the second-largest bank in the world by market capitalisation, had been interested in investing in Standard Chartered, according to people familiar with the situation, but Mr Guo denied the bank would now consider such an investment.

Mr Guo said Bank of America has assured him that it wanted to remain CCB’s second-largest shareholder, after the Chinese government.

“[BofA] earns a lot of money because we give them a big dividend,” he said. “The experience has been different from bank to bank but in general it was a correct choice we made in banking reform by introducing investors and international leading banks – at least they were leading banks at that time – to be involved in our restructuring and reform.”

BofA still owns about 11 per cent of CCB and cannot sell the bulk of that until August 2011.

Goldman Sachs is in advanced talks with institutional investors to sell up to 3.03bn Hong Kong-listed shares in ICBC, the world’s biggest bank by market capitalisation and deposits, according to people familiar with the matter.

Goldman has offered the shares – about a fifth of its overall holding – at between HK$4.80 and HK$4.90 each, and expects to close the sale on Monday afternoon New York time.

The sale price represents a 4-6 per cent discount to Monday’s closing price of HK$5.11 a share. Goldman, the sole bookrunner on the deal, declined to comment.

The stake sale will leave Goldman with a 4 per cent holding in ICBC, which it will retain until at least April 2010.
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby LenaHuat » Fri Jun 05, 2009 9:28 am

Anecdotal feedback tells me that factory output is improving in a broad spread of Chinese factories in the mid and southern belts. The Chinese rehaul of their medical system is boosting international pharmaceuticals' sales. Wonder if cif5000 who is posted in China has any insight to share?
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby winston » Mon Jun 08, 2009 12:21 pm

The market is expecting a "V" though ..

China's recovery likely to be U-shaped: think-tank

BEIJING - Chinese economy has bottomed out but will need two to three years to regain its rapid growth, a researcher with the country's top think-tank was quoted by state media as saying.
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby winston » Thu Jun 11, 2009 12:01 pm

China's Exports Dropped Again in May By TERENCE POON

BEIJING -- China's exports in May fell 26.4% from a year earlier, the seventh consecutive month of decline, government data showed Thursday.

The drop in May was bigger than April's 22.6% decline, and steeper than the median 23.1% fall forecast by 18 economists surveyed by Dow Jones Newswires.

China's imports in May fell 25.2% from a year earlier, a bigger drop than April's 23.0% plunge and steeper than the survey's median forecast of a 22.0% drop.

May exports totaled US$88.76 billion, while imports totaled US$75.37 billion.

China's trade surplus for the month was US$13.39 billion, up a tad from April's surplus of US$13.14 billion, according to the General Administration of Customs.

Economists had expected a May trade surplus of US$14.9 billion, according to the survey.

Meanwhile, fixed-asset investment in China's urban areas, a benchmark measure of capital spending, in the January-May period grew 32.9% from a year earlier, the National Bureau of Statistics said Thursday.

The pace exceeded the 31% median growth forecast in an earlier Dow Jones Newswires survey of 18 economists, and represents an acceleration from the 30.5% rise in the first four months of this year.

Investment in central government projects rose 28% in the first five months of this year compared with a year earlier, while state-owned or state-controlled investments rose 40.6%. Beijing started implementing a 4 trillion yuan (about $586 billion) stimulus program in November.

Real-estate investment, one of the main forms of private investments in China, rose 6.8% in January-May from a year earlier, picking up from the 4.9% rise in the first four months of this year.
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby millionairemind » Mon Jun 15, 2009 2:39 pm

June 15, 2009
W-shaped recovery for China?

BEIJING - CHINA'S economy will not experience a rapid recovery because it will take time to find a new growth engine to replace sagging exports, an influential economist said in remarks published on Monday.

Li Yang, a former adviser to the People's Bank of China, the central bank, said he expected the world economy would need at least five years to fully get over the current recession.

'China should not count on a turnaround of external demand to bring about its recovery,' Mr Li, director of the finance institute at the Chinese Academy of Social Sciences, was quoted by the Shanghai Securities News as saying.

Mr Li said he expected China's recovery to be W-shaped - meaning that growth would falter once current fiscal and monetary stimulus wears off before regaining momentum.

Premier Wen Jiabao also struck a note of caution over the weekend, restating his government's view that the foundations for economic recovery were not solid.

Speaking in Hunan province, Mr Wen said Beijing would stick to its relaxed monetary stance and fully implement its 4 trillion yuan (S$852 billion) fiscal stimulus.

Mr Wen said the government would beef up the stimulus package if needed, the official Xinhua News Agency reported.

In a separate speech, Fan Gang, a member of the PBOC's monetary policy committee, said policymakers could prime the economy without fretting about a resurgence of inflation.

State radio quoted Mr Fan as noting that consumer and producer prices had been falling from year-earlier levels for several months.

'There's no need to worry about inflation now. The inflation threat is still far away,' he said. -- REUTERS
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby LenaHuat » Mon Jun 15, 2009 4:57 pm

Li Yang, a former adviser to the People's Bank of China, the central bank, said he expected the world economy would need at least five years to fully get over the current recession.

iam802 will be speechless when he/she read this. :lol:
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Re: China - Economic Data & News (Jun09 - Dec09)

Postby millionairemind » Wed Jun 17, 2009 8:14 pm

China's 'Buy Chinese' decree with £400bn stimulus package risks US protectionism row
China has issued a ‘Buy Chinese’ order as part of its £400bn government stimulus package in a move that could fuel tensions between Beijing and Washington over claims of trade protectionism during the current financial crisis.

http://www.telegraph.co.uk/finance/fina ... m-row.html
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