China :: Business & Economy

SHANGHAI'S key stock index dipped in the morning session after China's industrial data showed slow expansion of manufacturing activities, but the growth of export, domestic consumption, and investment may all fell in the future. The benchmark Shanghai Composite Index edged down 0.19 percent to 2,562.52 points in the morning session. Turnover fell to 31.4 billion yuan (US$4.9 billion) from yesterday morning's 33.8 billion yuan. The official Purchasing Managers' Index, a comprehensive gauge of manufacturing activities across the country, rose to 50.9 percent in August from 50.7 percent in June, the China Federation of Logistics and Purchasing said today. Zhang Liqun, an analyst with the federation, said the rebound of the index, though small, was a sign of stabilizing economy. But he noted that a sub-index for new export orders dropped significantly, which signals a possible drop in growth of exports. He also warned of rising costs and possible slowdown of investment in p...

Revenue and net profit at Chinese mainland-listed firms grew at a slower pace in the first half of this year, according to data compiled by Securities Times . A total of 2,209 firms listed in the mainland markets have released their half-year earning reports by Tuesday, which showed them making a combined revenue of more than 9.33 trillion yuan (US$1.46 trillion) in the six months, up 26 percent from same period of last year, the newspaper said. Net profit climbed 22 percent annually to 965.4 billion yuan. In contrast revenue and net profit jumped 45 percent each from January to June last year. For 2010, revenue and net profit soared more than 30 percent each. The top 30 net profit earners among these 2,209 firms, including China's big four banks and oil giants such as PetroChina and Sinopec, had a combined net earnings of 652.12 billion yuan, or nearly 68 percent of the overall net profit amount, according to the data. The earnings reports of companies on the small-and-medium-siz...

China's Purchasing Managers' Index (PMI) rebounded to 50.9 percent in August from a 29-month low of 50.7 pct for July, the China Federation of Logistics and Purchasing said Thursday.

A model of the newly-revealed 737-MAX passenger airplane, which features redesigned CFM International LEAP-1B engines, is pictured in Renton, Washington. The Commerce Department yesterday reported US factory orders rose strongly in July on the biggest jump in demand for autos in more than eight years and a surge in commercial airplane orders. The increase suggests supply chain disruptions caused by the Japan crisis are easing. Factory orders climbed 2.4 percent, the largest increase since March.

The general manager of the Dalian Petrochemical Company of China National Petroleum Corporation (CNPC), a leading on-shore oil producer, was removed from his post Tuesday following the branch's second fire in two months, a company source said Wednesday. Jiang Fan, former general manager of Dalian Petrochemical Company in Liaoning Province's coastal city of Dalian, was replaced by Leng Shengjun, former general manager of Daqing Refining & Chemical Company of CNPC, according to its official website. The Dalian branch has been the scene of two fires in the past two months. The latest incident occurred when a diesel oil tank caught fire on Monday. Fortunately, no one was injured or killed in the accident. On July 16, a fire was triggered by a leak in a distillation device at the Dalian branch. No one was killed or injured as a result. The CNPC also decided that the corporation would set up its own investigation team to assist with an on-going investigation conducted by the muni...

Watch Video Play Video The last decade has seen many Indian entrepreneurs take the plunge, and explore previously uncharted sectors. One such pioneer is Captain Gopinath - the man who launched low-cost air travel in India. He made air travel affordable in the country for the very first time. Captain Gopinath is one of India's real rags to riches stories. CCTV's India correspondent meets him in Bangalore, where he is now working on his next start-up. Captain Gopinath - the man who launched low-cost air travel in India. Related stories India sets up Japanese investment zones to boost trade ties 2011-08-31 Northern india hit by floods 2011-08-31 Gulf Air plane skids off runway in S. India, 7 injured 2011-08-29 India Reform: Economic reform 2011-08-29 Editor: Li Wanran | Source: CNTV.CN

Hong Kong-listed Gome Electrical Appliances Holdings Ltd tumbled by nearly 5 percent, the most in three weeks, following rumors that shareholder Bain Capital LLC intended to reduce its stake. China's second-largest electronics retailer fell 4.69 percent to HK$3.25 (42 US cents), while the Hang Seng Index added 1.71 percent to end at 20,204.17 points in Hong Kong yesterday. The shares opened at HK$3.42 yesterday morning, slightly up from HK$3.41 they closed at on Monday. But the shares fell after Bain was reported to have appointed Morgan Stanley to sell its shares in Gome, according to Hong Kong newspaper Apple Daily which cited unidentified sources. The private-equity firm holds around 9.98 percent in Gome, second only to the company's jailed founder Huang Guangyu who owns 32.19 percent. Tim Payne of the Brunswick Group LLC, who manages public relations for Bain, declined to comment on the rumor in an interview with Bloomberg News earlier yesterday while He Yangqing, Gome...

Shanghai's key stock index continues to fall as market sentiment remained low amid tightening measures. The benchmark Shanghai Composite Index fell 0.72 percent to 2,548.19 points. Turnover fell to 33.8 billion yuan (US$5.3 billion) from yesterday morning's 42.3 billion yuan. "Prices level is still high in August and the liquidity is under pressure of more strict control on banks' reserves," the Founder Securities wrote in a report. Baoshan Iron & Steel Co dropped 1.5 percent to 5.25 yuan after reporting first half net profit dropping 37 percent from a year earlier on slowing demand and rising costs. The company also predicted a gloomy outlook for the second half of the year. Distillers led the gainers after three largest firms reported profits rose averagely 35 percent in the first half from last year. Wuliangye Yibin Co gained 1.7 percent to 40.06 yuan. Sichuan Swellfun Co edged up 0.4 percent to 24.15 yuan.

Baoshan Iron and Steel Co yesterday reported a worse-than-expected 37 percent drop in first-half net earnings on slowing demand and rising costs, and predicted a gloomy outlook for the second half of this year. China's largest listed steel maker earned 5.08 billion yuan (US$796 million) in the first six months, compared with 8.05 billion yuan in the same period a year earlier. That missed the 6.06 billion yuan average estimates of five analysts polled by Bloomberg News. Revenue rose 13 percent year on year to 111.1 billion yuan in the first half. Major Chinese steel companies have seen profit margins average 3.14 percent in the first half, compared with 3.54 percent a year earlier, according to the China Iron and Steel Association, citing competition and higher costs of raw materials such as iron ore and coking coal. Other Chinese steel companies have earlier reported a plunge in interim results, with Angang Steel Co's first-half profit slumping 91 percent. Shanghai-based Baost...

EvergrandeReal Estate Group Ltd, one of China's top home sellers, said yesterday net profit more than doubled in the first half of this year as it gained from its strategy of focusing on smaller cities instead of first-tier ones which helped boost its sales. Net income attributable to shareholders for the six-months ended June 30 soared 145 percent from a year earlier to 5.7 billion yuan (US$892 million), the Guangzhou-based developer said in a statement to the Hong Kong stock exchange. Its sales between January and June jumped 102 percent annually to 42.32 billion yuan while the total area sold surged 83 percent to nearly 6.12 million square meters, the most in the country, the developer said. Six-month revenue surged 57 percent from same period a year earlier to 32.06 billion yuan, while income from property development accounted for 98.9 percent of the total. Evergrande said it will launch all its projects in the second half in second- and third-tier cities. The developer projec...

People take a rest on the bench at a park in Tokyo yesterday. Japan's jobless rate rose for the second straight month in July while household spending fell, the government said yesterday. The seasonally adjusted unemployment rate climbed to 4.7 percent in July, edging up from 4.6 percent in June.

SHANGHAI'S key stock index fell for the third day on concerns that continuous tightening measures may drain liquidity and threat profitability of small firms. The benchmark Shanghai Composite Index edged down 0.38 percent to 2,566.59 points after rising as much as 1.5 percent in the morning session, taking cue from strong performance of the US stock market on encouraging consumer data. Turnover rose to 79.5 billion yuan (US$6.62 billion) from Monday's 78.4 billion yuan. Concerns that China's central bank will not loosen its monetary policy intensified after China's top economic planning body, the National Development and Reform Commission, said in a report that the price level in China will remain high amid excessive global liquidity and natural disasters in China. "Sluggish economic growth in Japan and debt problems in the US and Europe will also impact China's economy from a variety of aspects," the report said. Meanwhile, market liquidity was tightened ...

China will eliminate tariffs and value-added taxes on equipment and components used to develop coalbed methane (CBM) refining in mines starting this year, according to a joint statement issued by the Ministry of Finance (MOF) and other central government departments. The tariffs will be dropped in order to accelerate the exploration of CBM in China's coal mines, according to the statement. CBM is a type of natural gas that can be extracted from coal beds. China CBM, a Chinese company that is engaged in prospecting and developing the country's CBM resources, and its domestic and foreign partners will be exempted from tariffs and value-added taxes on imports of machines, instruments and components that are used in CBM exploration operations from 2011 to 2015, according to the statement. Other domestic companies engaged in CBM exploration will be able to enjoy similar treatment after their applications are approved by the MOF, the General Administration of Customs and the State Ad...

Watch Video Play Video Under pressure to spur job growth, US president Barack Obama has chosen Princeton University's Alan Krueger as the White House's new top economist. The president is also set to announce a new jobs-plan next week. In a Rose Garden ceremony with Krueger at his side, Obama said he would rely on the economist to help bring down the 9.1-percent jobless rate and restore growth to the struggling economy. Obama described job creation as an urgent challenge, and said he would outline a plan next week to put more money in Americans' pockets and get construction crews working. Princeton University's Alan Krueger Many analysts have interpreted this as a sign the administration will go ahead with plans to propose an extension of a payroll tax cut and seek money for infrastructure improvements. Republicans have taken a dim view of new stimulus spending, which means Obama could have trouble gaining bipartisan support. US president Barack Obama has chosen ...

China's steelmakers saw their profits dented by surging iron ore prices in the first half of the year, according to preliminary statistics. Twenty-seven listed Chinese steel producers released their H1 results as of Monday night. Their combined net profits slumped 15.7 percent year-on-year to 9.98 billion yuan (1.56 billion U.S. dollars), according to Wind Information, a Shanghai-based financial data provider. Of the 27 listed steel companies, 16 reported lower profit margins, accounting for 59.3 percent of the total, the Economic Information Daily quoted an unnamed steel analyst from CITIC Securities as saying on Tuesday. The shrinking profits contrasted with the more-than-85- percent annual profit growth posted by global mining company BHP Billiton for the year ending on June 30. In the first half of 2011, China imported 334 million metric tons of iron ore, 8.1 percent more than the amount imported during the same period last year, according to official data. The average price fo...

SHANGHAI'S key stock index rose in the morning taking cue from strong performance of the US stock market on encouraging consumer data. The benchmark Shanghai Composite Index added 0.99 percent to 2,602.02 points. Turnover dipped to 42.3 billion yuan (US$6.62 billion) from yesterday morning's 44.8 billion yuan. The Dow Jones Industrial Average rose 2.26 percent yesterday after data showed that damage of hurricane Irene was lower than expected and US consumer spending rebounded to a five-month high in July. Brokerages led the gainers after earning reports showed all listed firms made profits in the first half. Combined profits of 17 listed brokerages hit 13.4 billion yuan, market watchers said. Everbright Securities Co jumped 2.4 percent to 11.82 yuan. GF Securities rose 1.5 percent to 32.27 yuan. Banks rebounded. China CITIC Bank Corp added 1.1 percent after reporting profits in the first half rose 40 percent from a year earlier to 15 billion yuan. China Construction Bank rose 1...

Shares in SAIC Motor fell 2.6 percent yesterday after its net profit growth slowed during the first half. But analysts said the nation's largest auto group nonetheless leads the overall industry after the withdrawal of government incentives resulted in slower vehicle sales. SAIC said net income was 8.6 billion yuan (US$1.3 billion) during the first six months of this year, 46 percent higher than the same period last year compared with a 306 percent first-half surge in 2010. Shanghai-based SAIC, which partners General Motors and Volkswagen to make Buick and Passat saloon cars, boosted sales by 13 percent to 2 million units in the first six months, four times the 3.4 percent increase for China's overall auto market. Most sales were contributed by its flagship venture Shanghai GM and Shanghai VW, which each reported sales growth of 28 percent. Sales of its own-brand Roewe and MG totaled 80,395 units, almost unchanged from a year earlier as Chinese brands are more sensitive to the ...

THE likelihood of China defaulting on its government debt is low, the nation's top economic planning agency said yesterday in response to concern about local authorities' ability to repay their borrowings and a jump in bad loans. The total debts held by China's central government and local governments account for less than half the nation's gross domestic product, "far below" the levels in European nations and the United States, Xu Lin, head of the National Development and Reform Commission's fiscal and financial department, said on its website. Xu said that although China should learn from the debt problems in Europe and the US and strengthen monitoring over government debts, the situation here was different. China's local government debts are largely used to fund infrastructure such as roads, subways and airports, which would generate income in the long run and boost local economies, Xu said. "Of course, this doesn't mean the government coul...

China's Supreme People's Court (SPC) and Supreme People's Procuratorate (SPP) on Monday jointly issued a legal interpretation that aims to fight hacking and other Internet crimes more aggressively. According to a statement released jointly by the SPC and SPP, a crime endangering information network security poses a threat not only to network security but also to national security and public interests. The legal interpretation on handling cases involving activities that endanger information network security is aimed at cracking down on such crimes with greater force, according to the statement. The interpretation has defined relevant terms, and clarified criteria for imposing penalties in cases regarding illegally obtaining computer network data or providing hacking tools or programs, among others. One prominent provision is that those who knowingly purchase, sell or cover-up illegally obtained data or network control will be subject to criminal penalties. The statement say...

Watch Video Play Video Japan's Nikkei rose on Monday but erased some of the early gains, as Finance Minister Yoshihiko Noda, a fiscal hawk, won the DPJ leadership election. The benchmark Nikkei index rose over 53 points or 0.6 percent at around 8,850, down from an intraday high of over 8,900. South Korean stocks closed higher with Kopsi up 2.8 percent. Hong Kong's Hang Seng rose 1.5 percent, while Taiwan's TAIEX index rose 132.91 points. But on the Chinese mainland, the benchmark Shanghai Composite Index lost half a percent and the Shenzhen Composite Index was 1.1 percent down. Elsewhere, Australia's S&P/ASX 200 gained 1.9 percent. Related stories Yoshihiko Noda selected to become Japan's next PM 2011-08-29 Editor: Xiong Qu | Source: CNTV.CN

China's July lottery sales rose 37.1 percent year-on-year to 18.2 billion yuan ($2.85 billion), the Ministry of Finance said in a statement on Monday. Of the lottery boom, sales of welfare lottery tickets surged 43.5 percent from a year earlier to 11.26 billion yuan, while sales of sports lottery tickets rose 27.9 percent to 6.95 billion yuan, said the statement. The July sales figure took the total lottery sales in the first seven months to 119.35 billion yuan, up 31.9 percent year-on-year. According to China's Regulations on Lottery Management, the money raised through lotteries is divided into three parts: the jackpot, lottery management fees, and lottery public funds.

Customers examine a Chevrolet Captiva in an automobile market in Beijing. China sold 111,514 SUVs in July, a 15.3 percent increase over last year, according to the China Passenger Car Association.[Photo/ China D aily] Yang Liu, an 28-year-old advertising designer in Xi'an, Shaanxi province, recently found that the options were limited in choosing a car that fits with her life in the city. "I prefer a sport utility vehicle (SUV), which has a sporty look, full of energy, perfect for a girl like me, who is in innovative profession. But those tall and bulky SUVs seem too big for me to handle," said Yang, who at 164 centimeters tall could be described as slight. "And the price of the models I prefer - more than 250,000 yuan ($45,166) - is too expensive for me," she added. The young, fashionable woman, who has a modern and outgoing lifestyle, told China Daily that if "there were more choices for a smaller and cheaper SUV, it would really help me open my wallet ...

THE Shanghai market lost more than 1 percent in the morning session after financial shares declined among tighter liquidity concerns and weak performance of property developers. The benchmark Shanghai Composite Index was down 1.06 percent, or 27.79 points, to 2,584.40 points. Turnover was 44.8 billion yuan (US$7 billion). Reuters reported on Friday that China has ordered banks to include their margin deposits in required reserves at the central bank to mop up excessive liquidity. Barclays analysts estimated in a research note today the around 900 billion yuan will be drained from the banking system under the new requirement. China Construction Bank lowered 1.32 percent to 4.50 yuan. China Life Insurance Co was down 1.91 percent to 15.93 yuan. Shanghai Pudong Development Bank retreated 2.33 percent to 9.24 yuan. Property developers also dragged down the market after the Beijing Times newspaper reported today China will step up its efforts to curb speculation in the housing market, a...

Chinese retailers are paying close attention to the mobile commerce sector in the country's large cities, and experts said the development of mobile commerce will depend on the development of Internet environment in China. Figures from Analysys International, a consulting firm specialized in Internet market research in China, suggested that sales revenue generated through purchases made by mobile phone reached 1.67 billion yuan ($261 million) in the second quarter of 2011, an increase from 880 million yuan in the same period of 2010. Twenty-seven percent of the 1.67 billion yuan was generated through transaction terminals installed on mobile phones, and the remaining 73 percent came through web transactions on mobile phones. Mindful of the tremendous business opportunities in this market sector, retailers are investing heavily to promote mobile commerce in large cities such as Beijing and Shanghai. Yihaodian, one of the locally developed online shopping stores, has introduced ...

Poly Real Estate Group Co., the country's second-largest developer by market value, said on Sunday its first-half net profits surged 71.7 percent year-on-year to 2.8 billion yuan (about 437.5 million U.S. dollars). The company's sales revenue increased 35.1 percent to 15.2 billion yuan in the January-June period, it said in its first-half report to the Shanghai Stock Exchange. From Jan. to June, Poly's transaction value surged to 39.5 billion yuan, a year-on-year increase of 81.4 percent. Its transaction area was up 27.6 percent to 3.41 million square meters. The company expected China's economic growth to face a bigger challenge in the second half of the year because of the complicated global political and economic environment. "The sovereign debt crisis in Europe and United States as well as political turmoil in some regions will make the global economic recovery process more uncertain," it said. Poly said the possibility of "a localized price volatilit...

Solar panels are seen in the desert at Wulan County, Qinghai Province. The 50-megawatt solar power station will start power generation by the end of September. It is China's largest solar power station above 3,000 meters.

About 2.79 billion non-tradable A-shares of 25 listed companies will be unlocked in the coming week and become available for trading starting Monday, according to the Shanghai and Shenzhen stock exchanges. The market value of the unlocked shares stood at 53.1 billion yuan (8.3 billion U.S. dollars) as of Friday. The volume of unlocked shares more than triples that of last week, while the market value of those unlocked shares more than quadruples week-on-week. The newly unlocked shares account for 0.39 percent of the current volume of non-tradable shares, while their market value is about 0.66 percent of the total market value in circulation at the Shanghai and Shenzhen stock exchanges, according to the Southwest Securities.

China's stock market is approaching its bottom, as the recent slump was triggered by the turmoil in the global capital market rather than a domestic slowdown. That's the view of the chairman of the country's leading investment bank, China International Capital Corporation (CICC). "I personally predict that the price of A shares is close to a bottom now after several weeks of declines," Li Jiange, said in an exclusive interview with China Daily. He added: "The possibility of a double-dip global economic recession remains low." The main Shanghai Composite Index (SCI) fell slightly on Friday, trimming the first weekly gain in six weeks after losing 2.27 percent the week before. Despite the weekly rise, however, the SCI remains at a low level. It is valued at 12 times estimated earnings, compared with a record low of 11.57 times set on Aug 22, according to data compiled by Bloomberg. It has lost 7 percent this year as the central bank raised interest rates f...

SHAANXI Coal Industry has applied to enter into an initial public offering in Shanghai to fund 17.3 billion yuan (US$2.7 billion) of spending. The China Securities Regulatory Commission said it would review Shaanxi Coal's application next Monday, according to a statement on the commission's website today. Shaanxi Coal has 10.5 billion tons of recoverable coal reserves, which would make it the third largest among listed coal producers in China, according to its listing prospectus. Chinese coal miners are increasing capacity to meet demand from power stations, benefiting from rising prices. The IPO's size could make it the largest on China's mainland since China Everbright Bank Co's IPO raised 18.9 billion yuan in August last year. Sinohydro Group, China's biggest dam builder, also last month applied for a 17.3 billion yuan Shanghai IPO.

Some IT and gaming industry leaders' departure from their positions has a great impact because of their influence on their industry at home and around the world. Steve Jobs Steve Jobs, who has been on medical leave since Jan. 17, resigned Wednesday from his role as the head of Apple. [Photo/52pk.com] Steve Jobs, who has been on medical leave since Jan. 17, resigned Wednesday from his role as the head of Apple, pushing the company's shares down 5.39 percent. Former chief operating officer (COO) Tim Cook has been named as the company's new CEO. Apple announced that Jobs will become chairman of the board, effective immediately. I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role, said Jobs in his resignation letter. 1 2 3 4 5 Next

Domestic prices might stay high even as government measures to rein in rapidly rising inflation take effect, Zhang Ping, chairman of the National Development and Reform Commission (NDRC), said on Thursday. "The fact that global liquidity remains excessive is unlikely to change in the short term, and global commodity prices remain at high levels, which means that China's imported inflationary pressure will not weaken," Zhang said at a conference of the National People's Congress, the country's top legislature. Zhang noted that rising domestic production costs, combined with potential weather-related shortfalls of some agricultural products, are likely to heighten inflationary expectations. "These factors will all make it difficult for the government to meet the full-year inflation target of 4 percent," he said. Inflation hit a three-year high in July, with the consumer price index (CPI) rising 6.5 percent year-on-year, driven by soaring food prices, accor...

China's economic development is facing unprecedented challenges amid worldwide financial uncertainties resulting from the risk of debt default by some developed economies, analysts said. However, they predicted relatively steady, high growth for the world's second-largest economy in the long run, since the country still has considerable maneuverability in economic policy. "The effect of high US sovereign debt is likely to reduce consumer demand, so China's exports may experience rapid decline in the coming months," said Xia Bin, an academic adviser to the People's Bank of China (PBOC), China's central bank. The recent debt crisis in the United States signals an ongoing economic downturn, which may result in a long-run depreciation of the dollar, he said. Xia believes that the Chinese government - the largest holder of US debt at $1.16 trillion at the end of June - is worried about the safety of its foreign exchange reserves. He said the US may choose to st...

China's outbound direct investment in non-financial sectors slowed drastically in the first seven months of the year, according to official figures released Wednesday. Chinese companies invested 27.6 billion U.S. dollars in non-financial sectors in 117 countries and regions in the Jan.-July period, up 3.3 percent year-on-year, Ministry of Commerce spokesman Shen Nanyang said during a press conference. The growth was sharply lower than the 34 percent year-on-year increase in the year's first half and the 36.3 percent annual rise in 2010. China's outbound investment dropped substantially in July but was probably somewhat of an anomaly, an official with the ministry's press office told Xinhua on the condition of anonymity. Shen said China's investment in the United States, Russia, Japan and members of the Association of Southeast Asian Nations and the European Union all declined in the first seven months from a year earlier, while that in Australia and Hong Kong soared...

As the LED industry looks to light up even further, the Fujian Bureau of Information Industry plans to unveil the first cross-Straits standards for light-emitting diode street lights in the second half of this year, according to an industry insider. With rules on designs and inspections, the standards are expected to help regulate the market, said Liu Jieming, chairman of Fujian High-Tech Industry Promotion Association. LED technology is seen as revolution in lighting over conventional bulbs due to greatly lower energy consumption and longer lifespan. "There are currently no national standards of this kind so the team will base them on the existing standards in Taiwan," said Liu, also head of a Fujian-Taiwan LED team that participated in the standardization work. The standards will be revised yearly to keep up with the rapid technological progress in the industry, he added. "Unified standards are expected to further the already-close cross-Straits cooperation in this eme...

CHINESE consumers remained optimistic despite an overall drop in consumer confidence in the second quarter of this year, according to a report released yesterday by the Nielsen Co, a market research firm. The consumer confidence index fell 3 points from the previous quarter to 105 in the second quarter, according to the report, based on a survey of more than 3,500 Chinese consumers. The firm's latest report shows that global consumer confidence fell to its lowest level in six quarters, down 3 points from the previous quarter's 92 points. A consumer confidence index above 100 points indicates consumers are optimistic - a score below 100 signals pessimism.

CHINA'S manufacturing improved slightly in August but remains in contractionary territory for the second time in one year, an HSBC survey showed. A preliminary reading of the HSBC Purchasing Managers' Index, the earliest available indicator of the industrial sector's operating conditions, rebounded to 49.8 from a final reading of 49.3 for July. August's low reading was attributed to tighter monetary policies, higher production costs and sluggish overseas demand. A reading of more than 50 indicates expansion and less than 50 means contraction. QuHongbin, chief economist for China at HSBC, said: "The data suggests that the hard landing risk is still remote. This provides leeway for the People's Bank of China to keep the current tightening measures in place."

THE president of Standard & Poor's will step down next month, to be replaced by a senior Citibank executive, an announcement coming only weeks after the rating agency's unprecedented move to strip the United States of its AAA credit rating. S&P's parent, McGraw-Hill Companies Inc, said today that Deven Sharma, who has served as S&P president since 2007, would step down on September 12, to be succeeded by Citibank chief operating officer Douglas Peterson. "S&P will continue to produce ratings that are comparable, forward looking and transparent," McGraw-Hill said in a statement, adding that Sharma would stay on as an adviser at the parent company until leaving at year-end. Sharma, 55, "was ready for new challenges" after helping S&P separate its data, pricing and analytics business from its ratings business, McGraw-Hill said. The company unveiled that restructuring at S&P late last year. McGraw-Hill's statement did not mention ...

Workers clean the side of a building in the Lujiazui area in Shanghai. The city has the most expensive prime office rents on China's mainland and is the 11th-most costly in the Asia-Pacific region, an industry report showed yesterday. Shanghai has the most expensive prime office rents on China's mainland and is the 11th-most costly in the Asia-Pacific region, according to a report released yesterday by a major international property services provider. The city's average prime office rents rose 2.7 percent from the first quarter to 7.8 yuan per square meter, or an equivalent of US$41 per square foot per year, in the second quarter of this year, Colliers International said yesterday. The rise was mainly fuelled by strong fundamentals of the local economy as well as robust demand triggered by the inflow of foreign direct investment in the service industry, Colliers said. Hong Kong topped the quarterly list in the region with prime office rents of more than US$120 per square f...

When Chinese shares tumbled amid a global market rout this month, a letter accusing regulatory authorities of being lax in their duties was widely circulated around major websites and struck a chord with investment netizens. The open letter, written by a person identified only as "an ordinary stock investor," was addressed to Shang Fulin, president of the China Securities Regulatory Commission. It blamed "human factors" - including weak administrative rules and inadequate controls over initial public offerings - for much of the market's ills. The letter was originally posted on Tianya.com, one of the country's most popular online communities. "New listings have gotten out of control," the letter said. "The number of listings falling below the initial public offer price has been atrocious, which has made IPOs simply a cheap, personal blood bank for those firms and their bosses. Ordinary shareholders like me are bleeding." The writer contin...

CHINA Construction Bank yesterday said 93 percent of its local-government loans were covered by cash flow at the end of June as it sought to curb concern that the nation's US$2.7 trillion credit boom will drive up bad debts. The percentage of loans "fully or basically" covered rose from 79.3 percent at the end of December, Guo Shuqing, chairman of China's second-biggest bank, said in Beijing yesterday. Provisions for these loans stood at 325 percent, said Huang Zhiling, chief risk officer. About 50 billion yuan (US$7.8 billion) in loans to localgovernment financing vehicles, or less than 10 percent of the total, are due to be repaid by the end of this year, said Chen Zuofu, an executive vice president.

The world economy will not experience a double-dip recession and emerging countries, including China, will not be much affected by turmoil in Western markets, a senior economist said on Saturday. "Currently, there is no double-dip trend. It's just a less optimistic situation," said Fan Gang, a former adviser to the central bank's monetary policy committee. Fan said the slump in major stock markets was a correction of earlier overheating that would have a limited influence on other economies. He made the remarks during the fifth Annual China Bankers Forum 2011 in Beijing. Investor confidence in a global economic recovery took a hit after international rating agency Standard & Poor's downgraded the US long-term credit rating from AAA to AA+. Meanwhile, China's stocks fell nearly 1 percent on Aug 19 after Wall Street slumped more than 3 percent amid rising concerns about a global double-dip recession. "There is no need to panic. Since the depths of the f...

Beijing Vantone Real Estate Co. posted a 161 percent increase in its first-half profits, boosted by soaring sales in Tianjin. Net profits rose to 7.16 million yuan (1.12 million U.S. dollars), or 0.0059 yuan per share, from 2.75 million yuan, or 0.0023 yuan per share, one year earlier, the developer said in a statement filed to the Shanghai Stock Exchange. Total assets hit 11.89 billion yuan at the end of June, up 0.16 percent from the end of last year. The company's property sales in Beijing decreased 29.56 percent to 194.61 million yuan during the first half, as the city introduced tighter-than-ever rules to cool its runaway property market this year. Beijing families who own two or more apartments and non-Beijing registered families who own one or more apartment are banned from buying more homes. In January, the central government raised the minimum down-payment for second home purchases from 50 percent to 60 percent of the property's value. And Beijing allows banks to furth...

SHANGHAI'S key stock index yesterday dropped for the fourth straight day, taking its cue from global markets that tumbled as concerns over a worsening economic outlook weighed on US investors.The Shanghai Composite Index fell 1 percent to 2,534.36 points. The index dropped 2.3 percent this week, its fifth consecutive weekly decline. It was the longest stretch of weekly losses since December 2010 as speculation continues that the central bank will not loosen its monetary stance under inflationary pressure and that slower economic growth both domestically and globally may crimp corporate earnings.Other Asian markets also dropped yesterday after the Dow Jones Industrial Average plummeted 3.7 percent on Thursday as data showed worse-than expected industrial expansion and poor home sales. Hong Kong's Hang Seng Index lost 3.1 percent to 19,399.92 points, and Japan's Nikkei 225 Stock Average dropped 2.5 percent."Investors should be cautious about cyclical shares, taking into ...

A growing belief that the US economy may be headed toward recession gave the stock market its fourth straight week of losses. The anxiety in the market was obvious Friday as the major indexes went from moderate gains early in the day to another sharp loss. The Dow Jones industrial average had its 10th move of more than 100 points in 15 trading days this month. "We just don't know whether we're going to have a recession," said John Burke, head of Burke Financial Strategies. Oil ended the day below US$83 a barrel yesterday, finishing down about 4 percent for the week, on fears that another recession could cut demand for energy. Benchmark West Texas Intermediate crude for September delivery fell 12 US cents to finish at US$82.26 per barrel on the New York Mercantile Exchange after earlier rising as high as US$83.55 per barrel. There was little news to help investors determine their next moves. However, JPMorgan Chase & Co. joined other financial firms and cut its for...

SHANGHAI'S key stock market dropped for the fourth day taking its cue from a Dow Jones market tumble as concerns over a worsening economic outlook bear down on US investors. The benchmark Shanghai Composite Index fell 0.98 percent to 2,534.36 points by close. Turnover rose to 74.7 billion yuan (US$11.7 billion) from yesterday's 76.9 billion yuan. Yesterday the Dow Jones Average plummeted 3.68 percent after data showed worse-than-expected industrial expansion and poor home sales. Neighboring markets were also weak. Hong Kong's Hang Seng Index lost 3.2 percent to 19,372.2 points and Japan's Nikkei 225 dropped more than 2.5 percent. China's vice President Xi Jinping said today that China's economy would not experience a hard landing, and that the US economy was "highly elastic." "Turmoil in the global financial markets intensified and the world's economy is facing severe challenges," Xi said during a meeting with US counterpart Joe Biden. ...

Vice President Xi Jinping Friday urged the United States to take "concrete action at an early date" to relax restrictions on hi-tech exports to China. He also called on the U.S. side to provide a fair investment environment for Chinese enterprises in the United States. Xi made the remarks at a high-level meeting of Chinese and U.S. businesses, which was also attended by his U.S. counterpart Joe Biden. Xi said that the method of cooperation that has been used for the past three decades, in which the U.S. provided funds and technology while China provided labor, resources and markets, has greatly changed. Bilateral economic and trade cooperation is reaching wider areas and higher heights. Competition will definitely arise between businesses from both countries in the process of cooperation and development, but that kind of competition is benign and fundamentally beneficial to common development, he added. "We would like to see such benign competition bring benefits to both...

THE price of gold hit another record high, at US$1,829.70 per ounce yesterday, as investors sought a safe haven for their money. Gold prices have more than doubled since the winter of 2007, and are up about 19 percent since the beginning of June. The metal's value, unlike that of a currency, doesn't depend on the health of a single country's economy. Its swift rise has made it popular with investors seeking big returns, as well as presumed safety from turbulent stock and currency markets. While gold has recently hit a series of record highs, when adjusted for inflation it remains below a 1980 peak of US$850. That's about US$2,400 in 2011 dollars.

CHINA'S top securities regulator is considering lowering financial thresholds to allow more mainland firms to go public in Hong Kong, according to the vice president of Guotai Jun'an Securities. The remarks from Yan Feng, vice president of the Shanghai-based brokerage, came after Vice Premier Li Keqiang yesterday offered a package of measures to support Hong Kong's economy over the coming 8 years, including allowing more two-way investment in shares between the mainland and the special administrative region. The visiting Li made it clear in his speech yesterday that China would continue to encourage more mainland firms to list in Hong Kong as part of the country's efforts to boost the region's reputation as a global financial hub at a time when its economy has slowed 0.5 percent in the second quarter. Yan, who's also the head of Chinese Securities Association of Hong Kong, added that his company, along with many other mainland brokerages, hoped that the China Se...

Over 10 years, three presidents representing three nationalities have guided ABB China Ltd in stable but higher-than-market-speed development to dominate the local market from an unassailable leading position. The three executives, while maintaining the same overall strategy, have advanced the Switzerland-based company with a focus that grew from "in China" to include "for China" and then "for the world". Peter Leupp, who took the helm in 2001, finished his tenure in 2006 with the achievement of making China ABB's largest market in the world in terms of revenue. Under his leadership, another milestone came in 2006 when the power and automation specialist became the first multinational company to move the global headquarters of one of its major businesses to China. It said that relocating its robotics business headquarters from Detroit, Michigan, to Shanghai indicates that ABB is committed to helping Chinese manufacturers improve quality and productivit...

SHANGHAI'S key stock index fell for the third day on concerns for more tightening measures on liquidity and the property market. The benchmark Shanghai Composite Index edged down 0.34 percent to 2,592.36 points. Turnover fell to 38 billion yuan (US$5.9 billion) from yesterday morning's 41.1 billion yuan. China's central bank resumed issuing 1 billion three-year bills after a four-week suspension. Analysts regard it as a sign of new measures to control liquidity, such as further raising interest rates or reserve requirement ratio. Property developers sagged on concerns for more tightening measures after 14 cities reported a drop in home prices last month, compared with only one from a year before. China Vanke lost 1.1 percent to 8.13 yuan. Poly Real Estate Co dropped 1.4 percent to 10.90 yuan. Airlines led the decliners after crude oil prices rose 1.1 percent in New York to US$87.58 per barrel yesterday. Air China fell 1.7 percent to 9.34 yuan. China Eastern Airlines shed 2....

The prices of most rare earths have risen by three to five times this year since China began consolidating the industry. Surging rare-earth prices will hinder the country's targets for energy conservation and emissions reduction as the increased cost of raw material has affected downstream producers, industry experts warned. Zhang Anwen, deputy secretary-general of the Chinese Society of Rare Earths, said that the "quite elevated" rare-earth prices helped producers earn billions of dollars, but the country will face a challenge meeting its energy conservation target. "If one fifth of the lamps in China are equipped with energy-efficient bulbs, the country can save at least 100 billion kilowatt-hours of energy each year, equivalent to the annual energy output of the Three Gorges hydroelectric dam," Zhang said. "But because of high raw-material costs, downstream companies such as producers of energy-efficient bulbs have cut or halted production, which will gr...