Tag: China Small And Medium-sized Enterprises

China’s PMI Drop Adds to Concerns over Global Recession

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Nov. 25 – The HSBC flash purchasing managers’ index (PMI) – the preliminary readout of China’s industrial activity – fell sharply this month to 48 from October’s 51, reflecting signs of a domestic economic slowdown. The contraction of China’s manufacturing sector has further unnerved investors who are already fearful of an expanding global recession amid persistent signs of a struggling U.S. economy and the rampant debt crisis affecting the Eurozone.

PMI plummet
With a reading above 50 indicating expansion, and below 50 signalling contraction, November’s flash PMI reached a 32-month low, revealing a decline in both industrial output and new orders even as export orders continue to grow. Continue reading…

Financial Institutions Eligible for Stamp Duty Exemptions

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Oct. 26 – Following the Chinese State Council’s call for providing more financial support to cash-strapped small enterprises under the country’s tightening monetary environment, the State Administration of Taxation and Ministry of Finance recently co-issued a new circular that will grant favorable tax treatment to financial institutions when they offer loans to small enterprises.

The “Circular on Stamp Duty Exemption on Lending Contracts between Financial Institutions and Micro and Small Sized Enterprises (MSEs) (caishui [2011] No.105),” released on October 17, stipulated that the loan contracts signed between financial institutions and MSEs will be exempt from stamp duties during the period between November 1, 2011 and October 31, 2014. Continue reading…

China’s Economic Slowdown Triggers Guesses on Policy Modification

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By Vivian Ni

Oct. 21 – China’s third-quarter economic statistics showed the lowest GDP growth rate in the past two years, according to the National Bureau of Statistics (NBS) on Tuesday. The continuing economic slowdown – amid the deteriorating external environment and slightly tamed domestic inflation – has made economists wonder whether or not some adjustment in the current tightening policy is approaching.

Slowdown in GDP growth
China’s GDP growth rate during the third quarter edged down to 9.1 percent, from 9.5 percent in the second quarter and 9.7 percent in the first quarter. The figure – although still considered by the NBS as an indicator representing steady and rapid growth – appears to be lower than the medium estimate of 9.3 percent by Bloomberg and 9.2 percent by Reuters. Continue reading…

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