China - Economic Data & News 04 (Feb 10 - Sep 10)

China - Economic Data & News 04 (Feb 10 - Sep 10)

Postby winston » Mon Feb 01, 2010 7:15 am

Overcapacity in crosshairs

People's Bank of China deputy governor Zhu Min says Beijing plans new measures to rein in overcapacity in steel, cement and other industries amid a surge in bank lending.

"This year is particularly important because the structural changes have become such a top priority, so we will have more policy issues to guide industry and the commercial banks to follow this policy," said Zhu in Davos at the World Economic Forum.

The central banker's comments come as Beijing tries to staunch a surge in lending and shift the economy away from a decades-old reliance on exports.

China has tried to rein in overcapacity in steel and cement in recent years by closing the most energy-intensive and polluting companies.

Zhu also said inflation expectations are a major concern.

He said inflation is not there yet, but expectations have emerged.

Vice Premier Li Keqiang, who was also in Davos, said the government wants to keep growth intact while containing inflation risks.

The goal is to strike a balance among promotion of steady and fast growth, readjustment of economic structure and proper management of inflation risks, Li said.

China wants to ensure the growth path is stable all the year along, between 8 and 9 percent, Zhu said.

He told a panel discussion that governments need to coordinate efforts to bolster financial regulation. Proposals by US President Barack Obama and French President Nicolas Sarkozy are not in line with the G20 spirit, Zhu said.

It is absolutely essential for all leaders this year to push global coordination, he said.

Source: BLOOMBERG
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby winston » Tue Feb 02, 2010 7:19 am

Mainland factories keep humming

Tuesday, February 02, 2010

The mainland manufacturing sector continued to expand in January, mainly on the back of improving external orders and rising inflation pressure.

That is according to two sets of data on the nation's purchasing manager index out yesterday.

The news caused a slide in most Asian stock markets, as it rebooted concerns about more tightening measures from Beijing policy makers.

The PMI fell to 55.8 in January, after seasonal adjustment, from 56.6 in December, according to the government- backed Federation of Logistics and Purchasing. But it still recorded the second- fastest growth since April 2008.

Meanwhile, another PMI released by HSBC Holdings (0005) and Markit Economics rose to 57.4 in January from 56.1 in December, a record since the survey began in April 2004.

JP Morgan researcher Grace Ng said the January manufacturing PMIs reflect widening and balancing growth drivers in China as fixed investment growth moderates, consumption continues to expand and exports rebound.

Citi Investment Research economist Shen Minggao warned that, although trading activity will continue to improve, economic growth will ease in the second half if it relies solely on exports.

Both the Shanghai and Shenzhen stock markets fell about 1.6 percent, to close at 2,941.36 points and 1,102.69 points, respectively.

The local benchmark Hang Seng Index closed at 20,243.75 points with a slight rise of 0.61 percent.

Source: BETH YE AND AGENCIES


http://www.thestandard.com.hk/news_deta ... 00202&fc=2
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby winston » Tue Feb 02, 2010 3:43 pm

Giving ammunition to the guys in the US to brand them "currency manipulators" and to stop all imports of Chinese goods.


==========================================


DJ China: To Impose Sanctions On US Firms Involved In Taiwan Arms Sales

*DJ China: Urge US Companies To Halt Arms Sales To Taiwan


BEIJING (Dow Jones)--China will impose sanctions on U.S. companies that are involved in arms sales to Taiwan, Ministry of Foreign Affairs spokesman Ma Zhaoxu said Tuesday.

China urges U.S. companies to halt arms sales to Taiwan, Ma said at a regular press briefing.

Ma declined to comment on whether every company involved in the sale of arms to Taiwan, including Boeing Co. (BA), would face sanctions.

The White House said Monday any move by China to impose sanctions on U.S. firms as a punishment wouldn't be justified.

The Obama administration said last week it is proceeding with the sale of antimissile systems, helicopters and other arms to Taiwan.

Source: Aaron Back, Dow Jones Newswires
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby kennynah » Tue Feb 02, 2010 4:13 pm

clap clap clap..... :!: :!:

i'm curious how this episode will end...

it is a dangerous proposition to have the americans continue influencing taiwan's political agenda...
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby winston » Tue Feb 02, 2010 5:19 pm

kennynah wrote: it is a dangerous proposition to have the americans continue influencing taiwan's political agenda...


And the Chinese Political Agenda is less safe ? :?
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby kennynah » Tue Feb 02, 2010 5:28 pm

chinese are not as mighty in arms and technology as the americans, imo unqualified opinion.... other than the occupation of tibet, the chinese have proven themselves over the several millennium and history that they do not practice hostility towards its neighbours... not that they wont in future, but history is a good guide of what is to be expected...

on the contrary, the americans have resorted to atrocities against other nations under the disguise of democracy in their short existence.... it is in their nature to seek domination....

i prefer a balance of power to counter balance....
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby winston » Tue Feb 02, 2010 7:41 pm

I can see where you are coming about having a balance of power...

If a country who supposedly has some internal "Check & Balances" eg. Democracy, Free Press, 2 Term Presidency, Independent Judiciary etc. can "misbehave", what will happen when ...
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby Blackjack » Tue Feb 02, 2010 9:48 pm

http://www.google.com/hostednews/ukpress/article/ALeqM5gIqaWUV26C9ZDD79vJgygCpTsXjQ

China raises alarm over poison milk
(UKPA) – 3 hours ago

China has launched an emergency crackdown on contaminated milk products after they were found on sale again despite a massive scandal that poisoned hundreds of thousands of children in 2008.

No-one knows how many of them are still on the market, Chen Junshi of the country's food safety committee said.

The sweep comes after milk products tainted with the industrial chemical melamine were removed from sale in Shanghai and the provinces of Shaanxi, Shandong, Liaoning and Hebei, the state-run Xinhua News Agency said. Some had been recalled in the previous scandal and repackaged.

At least six children died and more than 300,000 fell ill in the 2008 scandal, where melamine, normally used in making plastics and fertiliser, was added to watered-down milk to fool inspectors testing for protein and increase profits.

At the time, China promised sweeping changes for the country's food safety.

But health concerns peaked again early this year after authorities in Shanghai said they secretly investigated a dairy for nearly a year before announcing it had been producing tainted milk products.

The case was especially troubling because the Shanghai Panda Dairy was one of the 22 named by China's product safety authority in the 2008 scandal, with its products having among the highest levels of melamine.

This time, China is again promising a thorough crackdown. "All melamine-tainted milk products will be found and destroyed," Health Minister Chen Zhu said.

Last month officials said tainted dairy products from three companies were taken from more than a dozen convenience stores around the southern province of Guizhou. Products recalled during the previous scandal somehow made it back to the market.

In December, the general manager of a dairy in northern Shaanxi province and two employees were accused of producing and selling more than five tons of tainted milk powder.
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby winston » Fri Feb 05, 2010 8:31 pm

China not going to save the world ?

China Defaulting Loans Soar, Insolvency Lawyer Says (Update1) By Shelley Smith

Feb. 5 (Bloomberg) -- Non-performing loans in China have risen into the “trillions of renminbi” because of poor lending practices, an insolvency lawyer said.

“We work really closely with SASAC, the state-owned enterprise regulator in China, and there are literally trillions and trillions of renminbi of, frankly, defaulting loans already in China that no one is doing anything about,” Neil McDonald, a Hong Kong-based business restructuring and insolvency partner with Lovells LLP, said at an Asia-Pacific Loan Market Association conference yesterday. “At some point there’s going to be a reckoning for that.”

China’s government is tightening controls, including banks’ reserve ratios, to prevent record lending from fueling inflation. The Shanghai office of the China Banking Regulatory Commission warned yesterday that a 10 percent fall in property values would treble the number of delinquent loans in the city. Liu Mingkang, chairman of the CBRC, said Jan. 4 that loans were channeled into stock and property speculation last year, which China has been taking measures to stop. CBRC’s press officer is not immediately available for comment today.

Chinese banks issued a record 9.6 trillion yuan ($1.4 trillion) of new loans last year as part of a 4 trillion yuan stimulus package aimed at bolstering growth through the global financial crisis.

“At some point in China, maybe it will be two, three or five years, but at some point there will be in the property markets and in the markets generally, there will be rationalization of very poor lending practices,” McDonald said during the panel discussion on restructuring and refinancing at the Global Loan Market Summit in Hong Kong.

Bad Loan Ratio

Over the past decade China’s government has spent more than $650 billion bailing out state banks after years of government- directed lending caused bad loans to balloon. The average non- performing loan ratio at Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. dropped to about 1.6 percent as of Sept. 30 from more than 20 percent before each bank was bailed out, according to earnings reports.

New loans last year helped ignite a Chinese real-estate boom, with prices in 70 cities rising at the fastest pace in 18 months in December.

Should property prices fall 10 percent in Shanghai, China’s second-most-expensive property market, the ratio of delinquent mortgages would almost triple for the city’s banks to 1.18 percent, according to the Shanghai branch of the CBRC yesterday, citing a stress test based on Sept. 30 figures. A 30 percent decline would cause the ratio to jump almost fivefold, the agency said.

Fitch Ratings said Dec. 17 that Chinese banks’ capital strength is probably more “strained” than it appears as lenders use more off-balance sheet transactions to make room for loans.

It was the first time the CBRC announced estimates for how much a property-market slump in Shanghai would hurt banks, underscoring the government’s concern that real-estate speculation may spur bad debts.

The regulator reiterated that banks should monitor property loans more closely and curb lending to developers with weak capital.

The State-Owned Assets Supervision and Administration Commission supervises and manages state-owned assets.

http://www.bloomberg.com/apps/news?pid= ... hBD4AeX8WA
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Re: China - Economic Data & News 4 (Feb 10 - May 10)

Postby winston » Sat Feb 06, 2010 12:29 pm

China to Impose Dumping Penalties on U.S. Chicken (Update3)

Feb. 5 (Bloomberg) -- China, the largest market for U.S. chicken, will impose anti-dumping duties of as much as 105.4 percent on imports of American poultry products, threatening to deepen a trade rift.

Importers of U.S. broiler-chicken products will be required to pay after an investigation showed they had caused “material damage” to local suppliers by selling at below-market prices, the Ministry of Commerce said in a statement on its Web site, citing a preliminary ruling. The duties are effective Feb. 13.

The ruling may further strain trade relations between the U.S. and China, which began its investigation in September, two weeks after the U.S. imposed tariffs on Chinese tire shipments. Ties have soured over proposed U.S. arms sales to Taiwan and President Barack Obama’s plan to meet the Dalai Lama this month.

“This is probably a result of political tension, although a trade war between the two economies is unlikely,” said Li Qiang, a managing director of Shanghai JC Intelligence Co. China consumed almost 800,000 metric tons of U.S. chicken in 2008, valued at $722 million, according to the USA Poultry & Egg Export Council.

China’s chicken probe also was a response to a decision by Congress that effectively bans imports of cooked poultry, James Sumner, the president of the poultry export council, said on Sept. 14.

Trade Spat

The U.S. and China, with $409 billion in annual trade, have been engaged in a spat over allegations of dumping and subsidies. China says U.S. complaints are signs of protectionism, while the U.S. says it’s enforcing trade rules. World Trade Organization judges agreed last month to review whether tariffs on Chinese tires are proper.

Imports by Pilgrim’s Pride Corp. will be levied with an 80.5 percent preliminary duty and Tyson Foods Inc. imports 43.1 percent, according to the ministry.

“We just heard the ruling, and we are a bit surprised,” said Hu Jijun, the chief China representative of the U.S. Poultry & Egg Export Council, when reached by telephone. The group will be meeting with the ministry to seek clarification, he said.

Still Assessing

Tyson, based in Springdale, Arkansas, is “still assessing” the impact of the ruling, Chief Executive Officer Donnie Smith said. About 14 percent of Tyson’s $1.6 billion of international chicken sales were to China during the 2009 fiscal year, according to the company’s Web site.

“We haven’t had a chance yet to sort out all the issues associated with the potential anti-dumping,” Smith said today on a conference call with analysts. He declined to comment further.

Mike Cockrell, the chief financial officer of Sanderson Farms Inc., said he won’t be in a position to comment until he has seen a copy of the order translated from Chinese.

“We are certainly aware of the order, and it’s going to take up a good portion of my day trying to figure out what they have done,” Cockrell said from Laurel, Mississippi.

China, EU

China’s trade relations with the European Union have also been strained, with Beijing yesterday complaining to the World Trade Organization against the European Union’s anti-dumping measures targeting leather shoes made in China.

Beijing submitted its request for WTO consultations with the EU after bilateral talks failed to address its concern, Yao Jian, a Ministry of Commerce spokesman, said in a statement on the ministry’s Web site. In December, the EU prolonged tariffs of as much as 16.5 percent on leather shoes from China and Vietnam for 15 months to help producers in the bloc counter below-cost, or “dumped,” imports.

http://www.bloomberg.com/apps/news?pid= ... P0m5BS7oe8
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