Chinese Economy

Caution over bubble as China urged to ease policy amid slowdown

The mainland's industrial activity is cooling on weak demand and a temporary closure of factories during the Apec talks. Photo: Reuters

Calls are rising for Beijing to ease policy to stem a slide in economic growth, although analysts say the timing may be complicated by the volatility on the domestic stock markets.

Saturday, 13 December, 2014, 6:09am 6 comments

State Council approves free-trade zones for Tianjin, Fujian and Guangdong

State Council approved plans to set up three more free-trade zones in an executive meeting chaired by Premier Li Keqiang. Photo: Xinhua

Tianjin, Fujian and Guangdong will follow Shanghai's lead and establish free-trade zones in their jurisdictions.

13 Dec 2014 - 1:53am 3 comments

China's retailers expected to see slow recovery

Mainland retailers will be facing more rental and labour cost pressure and fierce competition from e-commerce players. Photo: Bloomberg

Mainland retail sales are expected to see slow recovery next year as operating costs increase, economic growth continues to be sluggish and competition from e-commerce intensifies, say analysts.

13 Dec 2014 - 6:00am

China central bank chief must fend off deflation without spooking markets

Zhou Xiaochuan is expected to fend off the deflation descending upon China.

Zhou Xiaochuan can forget a next year. The world is counting on the People's Bank of China governor to fend off the deflation descending upon the mainland.

12 Dec 2014 - 7:02am

Top Chinese leaders stress 'new normal' growth

Analysts widely expect China's economic growth to slow to a 24-year-low of 7.4pc this year. Photo: AFP

China's top leaders said they were confident of achieving their major economic goals for this year as they laid out a blueprint for 2015 designed to keep growth steady while pursuing new investment-led initiatives.

12 Dec 2014 - 8:11am 9 comments

China, as world's new No 1 economy, still struggles with soft power

Last week, the International Monetary Fund confirmed that mainland China's economic output this year should overtake the United States. Photo: AFP

It's official now. China is No1 and America is No 2. I'm talking about which economy is the world's largest.

8 Dec 2014 - 7:22am 1 comment

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.

8 Dec 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