AmCham South China releases Special Report on the State of the Business in China

GUANGZHOU, March 12 – The American Chamber of Commerce in South China launched its 2010 special report on the state of the business in South China and a white paper on the business environment in China yesterday.

The special report details the results of a study conducted by AmCham South China among their members from December to February 2010, with the aim of reporting the pulse of the current economic situation. It also presents an in-depth economic overview of the Guangdong, Fujian, Guangxi, Hainan, Hong Kong and Macau provided by the foreign investment consulting firm Dezan Shira & Associates. Read the rest of this entry »

China’s CPI Rise Stokes Inflation Fears

Mar. 12 – China’s consumer price index in February rose at its fastest clip in 15 months, putting pressure on the government to tighten monetary policy.

A key gauge of inflation, the country’s CPI last month grew by a stronger than expected 2.7 percent year-on-year, up still from the 1.5 percent increase experienced in January.
Food prices rose 6.2 percent last month, with non-food prices rising one percent from a year earlier. This is partly due to the Lunar New Year holiday falling in February this year, a time when Chinese spend a lot of money on food, alcohol, cigarettes and gifts. Severe weather conditions also drove up food prices. Read the rest of this entry »

China’s Foreign Trade up 45 Percent in February

Mar. 11 – China’s exports grew for the third straight month in February to US$94.52 billion, up from 45.7 percent year-on-year, indicating a rebound in global demand.

Imports also increased according to statistics released by the General Administration of Customs on Wednesday, rising 44.7 percent to US$86.91 billion. Exports grew 8.2 percent compared with the same month in 2008 before the global financial crisis, while imports increased 9.8 percent. Read the rest of this entry »

China to Fine-Tune its Stimulus Plan

Mar. 11 – China will reform the RMB exchange rate in a gradual and controlled manner and Chinese economic stimulus plans will be continuously implemented but fine-tuned, China’s Minister of Commerce Chen Deming said before the National People’s Congress on March 8.

Chen explained that all of China’s current financial policies, including the policy of the RMB exchange rate, are the ones adopted during the global financial crisis to stimulate the economy. Withdrawal of the stimulus plan does not mean that all of the previous financial policies will be moved accordingly. These policies will be continuously carried out, but may be slightly fine-tuned. Read the rest of this entry »

New Board to Bring Major Multinational Firms to Mainland Soon

Mar. 10 – The Shanghai Stock Exchange completed draft listing and trading rules of its international board which will allow overseas companies to float shares in China’s A-share market, SSE Chairman Geng Liang said on Monday.

The draft rules are completed, but they are still working on the details, and the revised rules will be available for public comment soon, according to Geng. Read the rest of this entry »

Morgan Stanley Divests Assets as Mainland Property Growth Rises 16%

Mar. 9 – Morgan Stanley is divesting its mainland China property assets and has sold off US$700 million worth of assets in the past year, the latest being its 50 percent holding in a Foshan residential project, which it has sold back to the developer for US$25million.

Other sales that have taken or are taking place include Infinity Plaza, the Xujiahui Shama serviced apartment block, and Nanjing Road’s Exchange mall, all in Shanghai. This comes as mainland property growth rose 16.1 percent, with sales increasing 42.1 percent year on year. Over 930 million square meters of property were sold last year. Read the rest of this entry »

China Curbs Property Speculation to Avert Real Estate Bubble

Mar. 8 – Whether or not it is an appropriate time to launch a property tax and curb skyrocketing housing prices in China has aroused hot debate at the annual sessions of the National People’s Congress, China’s top legislature, and the Chinese People’s Political Consultative Conference, the top advisory body.

China reintroduced a nationwide real estate sales tax last November in an attempt to reduce speculation and cool the bubbling property market after price rises accelerated across the country. Read the rest of this entry »

CPPCC Starts Annual Session

Mar. 4 – The Chinese People’s Political Consultative Conference (CPPCC), China’s top political advisory body, opened the Third Session of the 11th National Committee in the Great Hall of the People in Beijing Wednesday.

China’s premiere members of the ruling Communist Party, including President Hu Jintao, top lawmaker Wu Bangguo, and Premier Wen Jiabao, were seated on the central rostrum when the session opened. Read the rest of this entry »

Mainland Media Presses for Hukou Reform

Mar. 2 – Thirteen mainland Chinese newspapers have jointly issued front page stories pressing for immediate reform of the national hukou system, in an unusual show of the central government being placed under political pressure by its own media.

The hukou system was introduced in the 1950s and limits travel by rural workers to urban areas. It was originally planned to help rebuild the local economy from the grass roots up following the devastation of the World War II and the Chinese Civil War and to assist the Communist Party to manage labor resources. In recent years it has also helped prevent mass migration from rural areas to wealthy cities such as Shenzhen, which would not be able to cope with millions of relatively poor migrant workers descending upon it. Read the rest of this entry »

China Manufacturing Output Decreases

Mar. 2 – China’s manufacturing output decreased in February, with the benchmark Purchasing Managers’ Index (PMI) slipping for the first time in more than four years, to 52 from 55.5 the previous month.

The PMI is compiled by China’s National Bureau of Statistics with numbers above 50 indicating growth and figures below 50 suggesting contraction. Read the rest of this entry »

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