Chinese Economy

China’s top economic officials to convene amid gloomy forecasts

The mainland economy is facing clear downside pressures. Photo: Reuters

A raft of economic data due this week is likely to set a troubling backdrop for the central government's top economic officials when they meet to thrash out a plan for tackling key challenges next year.

Monday, 8 December, 2014, 6:24pm

Phasing out safe economic bets is no easy task for Beijing

Phasing out safe economic bets is no easy task for Beijing

It is hard to imagine Beijing leaving businesses to sink or swim on their merits any time soon, no matter how risky and poorly managed. While the expectation remains that the government will keep its unspoken promise of bailouts of failing ventures, ending it abruptly would involve too big a gamble with social and financial stability.

7 Dec 2014 - 7:00am

China rebalancing calls grow more urgent

Mainland urged to act fast on reform. Photo: AP

Calls to rebalance the mainland economy are growing more urgent with every piece of new data that points to structural weakness in the manufacturing industry and under-exploited potential in the services sector.

4 Dec 2014 - 7:56am 3 comments

China November PMI eases to eight-month low

Growth in mainland factories stalled last month as output shrank for the first time in six months, reinforcing expectations of more aggressive support measures. Photo: Reuters

Growth in the mainland's manufacturing sector slowed last month, suggesting the world's second-largest economy is still losing momentum and adding pressure on the authorities to ramp up stimulus measures.

2 Dec 2014 - 3:48am

Hong Kong not on borrowed time, says Monetary Authority chief

HKMA chief executive Norman Chan says trade, logistics and yuan business statistics are positive. Photo: Sam Tsang

Hong Kong may no longer be China’s sole international agent but the city can still keep growing as the country opens up and expands international use of the yuan, Monetary Authority chief executive Norman Chan Tak-lam told an economic summit on Monday morning.

1 Dec 2014 - 11:49am

PBOC’s Hu says falling inflation biggest risk to China’s economy

Deflationary pressures have made borrowing more costly on the mainland and are largely linked to the cooling property sector. Photo: Reuters

The People's Bank of China sees falling prices as the biggest risk to the economy and also the primary reason behind its first interest rate cut in two years, deputy governor Hu Xiaolian said.

28 Nov 2014 - 9:34am

China steps up bid to lure private funds in key sectors

Beijing aims to stem a slowdown in economic growth, which hit a five-year low of 7.3 per cent in the third quarter.

The State Council has set out a broad vision for encouraging private investment in key sectors of the economy but faces challenges in the invention of innovative financing methods to lure sustainable funds.

27 Nov 2014 - 6:17am

Rate cuts may put China on road to debasing currency

China plays with fire in cutting rates

Almost everyone applauded mainland's surprise move to reduce interest rates. Our reports carried only a single brief mention that cutting lending rates by 40 basis points and deposit rates by only 25 would further squeeze bank margins.

27 Nov 2014 - 11:24am

China's consumer sentiment shows tentative improvement

Consumer sentiment in China showed a slight improvement although other areas showed a sluggish tone. Photo: Bloomberg

Mainland consumer sentiment stabilised this month, although still hovering at record-low levels, as more pessimistic views on business conditions were offset by slight improvements in confidence about jobs and the property markets.

27 Nov 2014 - 3:00am

Slower economic growth no reason to panic

The unexpected rate cut of 40 basis points by the People's Bank of China is viewed as reflecting rising concerns about the slowing of the mainland economy.

The unexpected rate cut of 40 basis points by the People's Bank of China not only boosted global stock markets but prompted economists to predict it would be the beginning of an interest-rate cycle and not just a one-off cut.

26 Nov 2014 - 10:40am 1 comment

China takes step forward in interest rate reform

Analysts said simply relying on rate cuts without deepening structural reforms would hardly address the root causes of slowing credit growth. Photo: Reuters

Beijing's interest rate cut effectively announced the failure of Premier Li Keqiang's targeted easing strategy and signals the government's commitment to further interest rate liberalisation.

25 Nov 2014 - 11:16am

Beijing's easing policy tested as factory output slows

Factory output index slumped to 49.5 last month, the lowest in seven months, as funding costs hurt smaller manufacturers. Photo: Reuters

Mainland economic growth in the next few months may test Beijing's commitment to its targeted easing policy, which has so far proved ineffective in spurring real demand, with a private survey pointing to fresh softness in the factory sector.

21 Nov 2014 - 5:36am

Beijing vows to help companies cut funding costs as economy cools

Financing costs faced by factories soared 16.5 per cent on a yearly basis in the first half of the year, according to government data. Photo: AFP

The central government has promised to help companies lower their funding costs by giving banks more flexibility to lend and allowing loss-making companies to list in stock markets, among other measures.

20 Nov 2014 - 9:18am

Foreign passports play role in slowing growth in the ranks of China's rich

Rich mainlanders keep emigrating and acquiring new nationalities.

The mainland is home to wealth creation miracles, yet the number of ultra-wealthy individuals there is growing at a much slower pace than the global average because rich mainlanders keep emigrating and acquiring new nationalities.

20 Nov 2014 - 3:59pm

China outward investment loses momentum

China has seen a gradual decline in its manufacturing competitiveness as labour costs are on the rise compared with other emerging nations such as Vietnam and Brazil, dimming its appeal to foreign investors. Photo: Bloomberg

Chinese companies invested less overseas last month than in October last year, reversing sharp year-on-year rises seen earlier this year, due to a high comparison base with the same month last year.

19 Nov 2014 - 10:02am 1 comment