As consumers are paying more for basic necessities and are more willing to spend in the face of rising inflation, China’s retail sales increased 22 percent in April from a year earlier. According to the National Bureau of Statistics (NBS), sales of foodstuff and beverage climbed 25.3 percent while spending on grain and edible oil surged by 36.3 percent.
After some research, Song Yu and Liang Hong, Goldman Sachs’ economists said, “With inflation at a decade high level, it is not surprising to see nominal retail sales reaching Read more…
Popularity: 2% [?]
consumer, decade-high, inflation, retail, sale
The government has introduced a series of measures to help small and medium-sized enterprises (SMEs).
Compared with State-owned enterprises, SMEs are much more vulnerable. Latest statistics from the National Development and Reform Commission show that in the first six months of 2008, about 10 percent of SMEs reported an average 15 percentage point drop in their industrial output growth from a year earlier to 30 percent. This indicates a significant shrinkage in their profit margins. SMEs have also been hit by the credit Read more…
Popularity: 3% [?]
inflation, SME, state-owened, unfavourable, vulnerable
According to a report by the Asian Development Bank (ADB) economic growth in China is expected to dip to hit 9.9 percent this year and 9.7 percent in 2009. Concerning the East Asia in general the growth rate will moderate to 7.6 percent in 2008 and 2009 comparing with a growth rate of 9 percent in 2007. Such economic growth slowdown is attributable to the global economic slowdown, sharp rise in food and energy prices and inconstancy of the financial markets.
Rising inflation is a serious threat to the region’s sustained, strong growth as high import costs of food and fuel threaten to trigger a price and wage spiral, unleashing more inflation, the insider commented. Although the inflation rate had dropped 1.6 percent in February, the possible energy price liberation may bring the high rate back. And all signs show that a second-round price effect may be underway.
And the worsen economy situation especially the banking crisis has triggered global worry that the economic slowdown across the globe may continue. And Chinese economy is influenced by it.
Popularity: 3% [?]
chinese economy, inflation, slowdown, US economy
With China’s prospective economic outlook and its appreciating currency, hot money will continue flowing into China.
China’s comparatively quick economic growth still makes it one of the destinations for international speculators, although it’s stock market has become lusterless because of the global turbulence caused by American subprime crisis. Moreover, the central bank has taken several monetary measures, which has proved “effective”, to bring down the main stock index and stem the inflation. For example, raising the reserve requirement ratio 11 times and the benchmark interest rates 6 times since last year to absorb excess liquidity.
As the yuan is rising, it’s difficult for some enterprises to stay in the competitive market. If they wanted to survive in this competition, they had better upgrade their technology and strengthen their competitive power to lessen the impact of rising labor cost and possible energy pricing mechanism.
Even though many investors in China seemed to think the government would do whatever it could to keep stock prices high before the Olympics.
Popularity: 2% [?]
appreciation, China Yuan, competiton, inflation
As consumers are paying more for basic necessities and are more willing to spend in the face of rising inflation, China’s retail sales increased 22 percent in April from a year earlier. According to the National Bureau of Statistics (NBS), sales of foodstuff and beverage climbed 25.3 percent while spending on grain and edible oil surged by 36.3 percent.