Slowdown fears as Chinese economy grows by 7.5pc

Slowdown fears as Chinese economy grows by 7.5pc

China’s economy grew 7.5 per cent in the second quarter, its slowest pace in a year, though data from the National Bureau of Statistics on Monday revealed that resilience in the domestic sector helped offset a decline in the rate of expansion in the export-oriented indust

Monday, 15 July, 2013, 10:48pm 4 comments

China GDP to test reformers’ stomach for weaker growth

Economists polled by Reuters expect second quarter figures to show that China’s economy likely grew 7.5 per cent year-on-year. Photo: Reuters

China’s resolve to revamp its economy for the long-term good will be tested this month when a slew of data show growth is grinding towards a 23-year low, with no recovery in sight.

8 Jul 2013 - 1:14pm

True size of Beijing's deficit matches Japan's black hole

True size of Beijing's deficit matches Japan's black hole

Most analysts, when they look at the economic challenges facing China, end up noting that no matter how daunting the problems, Beijing enjoys a far healthier budget balance than the governments of the world's other major economies.

12 Jun 2013 - 3:56am 1 comment

China credit risks grow as debt produces less GDP, loans rolled over

Analysts say low-quality credit-financed investments are a substantial risk to mainland economic growth. Photo: Reuters

The mainland is requiring more and more debt to produce less and less growth. This raises the issue not just of where exactly all the money is going, but what happens once we all find out.

It is also causing concern that China might suffer a "Minsky moment", a classic debt bust when investors liquidate positions to satisfy debts taken out for speculation.

4 Jun 2013 - 3:57am

Economic growth slows in first quarter as inflation looms

Real gross domestic product rose only 0.2 per cent on a seasonally adjusted quarter-to-quarter basis. Photo: Bloomberg

Real gross domestic product rose only 0.2 per cent on a seasonally adjusted quarter-to-quarter basis, down from 1.4 per cent in the last three months of 2012. Year on year, output in the first quarter rose 2.8 per cent, beating market estimates.

11 May 2013 - 4:23am

Talking points

Financial Secretary John Tsang Chun-wah

Financial secretary meets filibuster lawmakers

10 May 2013 - 4:43am

Economy at risk of overheating warns HKMA chief

Hong Kong's current account balance plunged to 1.1 per cent of GDP at the end of last year from 15 per cent in 2008. Photo: Bloomberg

Soaring household debt and rampant consumer spending have put Hong Kong's economy at risk of overheating, the city's central bank boss said yesterday.

4 May 2013 - 4:52am 1 comment

China must not overreact to slower growth numbers

A Chinese migrant worker passes by The People's Bank of China as he heads to a bus station in Beijing. Photo: AFP

China's economy is facing tough times. Gross domestic product grew by 7.7 per cent year-on-year in the first quarter of this year, worse than expected and lower than the 7.9 per cent growth recorded in the fourth quarter of 2012. No doubt local companies are feeling the bite. What are we to make of this sputtering economic recovery from the global financial crisis?

2 May 2013 - 1:30am

Taiwan disappoints with slowing growth rate

Taiwan's gross domestic product rose 1.54 per cent in the three months to March from a year earlier, after increasing 3.72 per cent in the fourth quarter of last year. Photo: AFP

Taiwan's economy expanded at a slower pace than economists estimated in the first quarter as a faltering global recovery hurt exports, increasing pressure on the central bank to extend an interest-rate pause to aid growth.

1 May 2013 - 3:46am

Slowdown is nothing to fret over, says PBOC chief

Zhou Xiaochuan says China's economic shift has hit growth.

China's slower expansion in the first quarter was "normal" as the world's second-largest economy sacrifices growth to make structural reforms, People's Bank of China governor Zhou Xiaochuan said in the US at the weekend.

22 Apr 2013 - 2:50am

SCMP Debate: What's your expectation for China's GDP growth?

Illustration: Lau Ka-kuen

Reporters Victoria Ruan and Celine Sun spoke to senior executives and observers from several countries on the sidelines of this month's Boao Forum. Many believe China will maintain its rapid economic growth despite rising labour costs.

22 Apr 2013 - 6:02am

The indebted consumer's guide to growth in China

The indebted consumer's guide to growth in China

In recent months, China's financial system, including its shadow banking market, has been making new loans at a blistering pace. In the first three months of this year, total social financing - Beijing's broadest measure of credit creation - expanded by a record 6 trillion yuan (HK$7.5 trillion).

19 Apr 2013 - 4:05am 1 comment

Manageable GDP growth the best option for China

Chinese President Xi Jinping. Photo: Xinhua

China's years of spectacular growth have become so second-nature that when data fails to meet analysts' expectations, investors get worried. Figures released yesterday showed that in the first quarter, the economy grew by 7.7 per cent compared with a year earlier, below most forecasts of 8 per cent. Stock markets immediately took a tumble.

16 Apr 2013 - 3:27am

No need to worry about China's competitiveness

Advantage, China

Fears have been growing recently for China's competitiveness. On one hand, investors fret that the appreciation of the yuan is eroding the competitive edge of China's factories compared with their rivals in Southeast Asia.

15 Apr 2013 - 5:08am 3 comments

China to miss growth mark as big reforms bite

Bitter economic reforms ahead.

Most economists expect growth of 8.1 per cent this year, with the exception of Nomura, which has forecast 7.7 per cent. Bad debt and excess capacity have been brought on by years of overinvestment. Over half of mainland GDP, including property purchases, is fuelled by investment.

4 Apr 2013 - 3:35am