• Sat
  • Dec 27, 2014
  • Updated: 9:34am

Chinese Economy

Rising wages and doubts over reform dent business optimism in China

A textile factory in Linhai. Photo: Reuters

European companies are more pessimistic about profits in China because of rising labour costs and a lack of confidence in reforms, a survey has found. Foreign investors' shrinking confidence may not bode well for the country's growth in the long run unless the new leadership can further liberalise the market, analysts have warned.

Friday, 31 May, 2013, 10:06am 1 comment

China and Brazil: tension building between BRIC duo

The Chinese government was slow over its pledge to give Chinese airlines incentives to buy Brazilian jets. Photo: Reuters

China and Brazil are two countries with steady growth, activist state sectors and hugely popular governments. They will be in the same corner of the world stage for decades. Both argue for a more multipolar and equitable world order - one that is less US-driven.

30 May 2013 - 4:33am

Concern raised over China credit growth

Concern raised over mainland credit growth

Total lending from banks and other financial institutions on the mainland was 198 per cent of gross domestic product last year, compared with 125 per cent four years earlier, according to calculations by Chu, the company's Beijing-based head of China financial institutions.

30 May 2013 - 4:33am

IMF cuts China's growth outlook on weak demand

Analysts say mainland leaders must boost domestic spending to help rebalance the economy. Photo: EPA

The International Monetary Fund has cut its forecast for China's economic growth this year, despite expectations that an expansion of credit and a mild recovery in the global economy will offer solid support to activity in the second half of this year.

30 May 2013 - 3:45am

MNI index adds to fears China recovery losing momentum

Fears are mounting that China’s growth is slowing, which could put the brakes on global economic recovery. Photo: AFP

China’s economic recovery may be losing momentum, as indicators for new orders and financial conditions worsened, according to the latest MNI China business sentiment indicator.

24 May 2013 - 10:59am

Overpriced IPOs spell longer-term misery for A share investors

Room for improvement. Overvalued listings have cast a pall over China’s stock market, which has failed to match the stellar growth of the underlying economy. Photo: AP

For 10 years a yawning chasm has existed between the performance China’s stock market and its economy, according to a veteran China expert, who likens the market to a casino – with all the risk that that entails for foreign investors.

20 May 2013 - 3:17pm

Bird flu outbreak costs China's poultry industry US$65b

H7N9 avian influenza has infected 130 people in China, killing 35, since it was found in humans for the first time, according to the latest official data. Photo: AFP

China’s human H7N9 bird flu outbreak has cost the country’s poultry industry more than 400 billion yuan (HK$500 billion) as consumers shun chicken, government officials said according to state media Monday.

20 May 2013 - 1:53pm

On the road to currency reform

Chinese Premier Li Keqiang said China would unveil an operational plan this year to make the currency fully convertible under the capital account for a free two-way flow of funds.

Ever since China's new top leaders were named in November, investors at home and abroad have been watching for pointers to financial reform as China integrates further with the world economy.

14 May 2013 - 2:57am

China's mild inflation rise leaves door open for rate cut

A 5.9 per cent rise in vegetable prices due to cold weather drove a 2.4 per cent year-on-year increase in prices in April. Photo: Xinhua

Chinese inflation rose in April from March but remained relatively low, leaving room for the central bank to cut rates to stem capital inflows and spur domestic demand. Central banks the world over have been lowering interest rates to spur growth, putting pressure on China to follow suit. But the People's Bank of China should be cautious as inflation may rebound later, some analysts warned.

10 May 2013 - 5:22am 1 comment

China export growth tipped to slow to 10pc

Cement mill barrels dwarf this worker at a factory in Henan. Higher wages have added to the pressures facing exporters. Photo: Reuters

In a research report published in the China Securities Journal yesterday, the think tank forecast imports may grow about 8 per cent in the second quarter, slightly below the 8.4 per cent in the first three months, generating a trade surplus of about US$128 billion.

7 May 2013 - 4:24am

Data on exports raises capital inflow concerns

China's exports slowed in March.

In March, mainland Chinese export growth slowed to 10 per cent from a year earlier, after a year-on-year gain of 21.8 per cent in February. Imports rose 14.1 per cent after falling 15.2 per cent in February. Faster capital inflows have been seen by way of a jump in foreign-exchange assets held by financial institutions, as interest rates are higher on the mainland than in Western countries.

11 Apr 2013 - 5:32am

Interview with George Soros

Billionaire investor George Soros speaks at the World Economic Forum in Davos. Photo: EPA

t is going to be a very difficult transformation, because the household consumption is only 1/3 of the Chinese economy. Exports and investments are 2/3. The growth of 1/3 cannot make up for the slower growth in the 2/3. Therefore, the overall growth rate will have to be significantly slower than it has been up to now. That is a very important point.

8 Apr 2013 - 3:58pm 5 comments

China's industrial profits up as raw material costs fall

Steel firms made 14.6 billion yuan in the first two months.

Industrial companies posted profits totalling 709.2 billion yuan (HK$877 billion) during the January-February period, 17.2 per cent higher than a year earlier, the National Bureau of Statistics said yesterday. In contrast, profits declined 5.2 per cent in last year's first two months from the same period in 2011.

29 Mar 2013 - 5:18am

BlackRock goes for industrial counters

The fund managed by Jing Ning has reached US$1.46 billion.

Jing Ning, BlackRock's top China fund manager, told the South China Morning Post in an exclusive interview that the firm had sold some mainland property and bank stocks earlier this year and was now investing more money in firms in the industrial and health-care sectors.

20 Mar 2013 - 5:29am

China’s annual inflation rises to 3.2pc in February

Chinese shoppers browse through fireworks for the celebration of the Chinese New Year in Liaoning province. Photo: AFP

China’s annual consumer inflation quickened to 3.2 per cent in February from January’s 2.0 per cent, data showed on Saturday in a further sign that China’s burgeoning recovery could be stoking price pressures.

The National Bureau of Statistics said in the same release China’s producer price index dropped 1.6 per cent in the year to February, the same pace as in January.

9 Mar 2013 - 2:47pm