China :: Business & Economy

It’s not how they open. It’s how they close. The market shrugged off worries about the Chinese rate hikes. The market sees the rates hikes as a sign of strength in the Chinese economy. This will be the case until more weakness is seen in the Chinese economy and the yield curve becomes flatter. The tipping point will come as the media begins to downplay any future rate increases by the Chinese government. So, for something different, we will look for Chinese rate hikes to go from page one to page sixteen. Market had its slowest full day of the year yesterday as the snowstorm paralyzed the Northeastern United States. Money managers tend to spend to last week of the year on pins and needles as their performance numbers are put in stone for the year. This time of high anxiety can be punctuated by volatility as trading desks remain understaffed with inexperienced traders. This can lead to the old rush for the exits before year-end performance gets trounced. We can thank t...

Reuters A vendor sits in front of sacks of potatoes at a market on the outskirts of Jiaxing, China, Sunday. Rising food prices, which have fueled inflation this year, have eased recently. BEIJING—Chinese Premier Wen Jiabao voiced confidence Sunday that his government can contain rising prices, seeking to reassure the public about inflation a day after the central bank raised interest rates for the second time in 10 weeks. Speaking to listeners Sunday during a visit to state radio headquarters, Mr. Wen acknowledged that recent price increases have “made life more difficult” for middle- and lower-income Chinese. But, pointing to measures the leadership has taken in recent months, he said: “As it looks now, we are completely able to control the overall level of prices.” The remarks, in a session where Mr. Wen was asked repeatedly about prices, reflect the issue’s political sensitivity for Beijing. Accelerating inflation in recent months has been driven large...

After a hike, most residents are rushing to blurb banks to replenish their deposits to get a aloft rate upon their money. But analysts contend residents need to count a time, or their a single some-more earning won't cover a lost. At an ICBC bend in Shanghai, most business are backing up to renovation their deposits. One proprietor in Shanghai pronounced "I deposited upon a 25th. Now I want to replenish it." But analysts advise a a single some-more earnings may be reduction than a volume they lose by renewing their deposit. For example, a seductiveness of a a single year deposit of 10,000 yuan is 25 yuan a year some-more than underneath a previous rate. But if a bound deposit is not yet due, banks will give seductiveness formed upon a current rate not a bound a single as well as business could actually earn less. After a hike, most residents are rushing to blurb banks to replenish their deposits to get a aloft rate upon their money. An...

Editor's note: You may think statistics are dull. But some may attract you the first moment you see or hear about them. A single number may not tell the whole story, but there is a story behind it, for sure. 5.1% Everybody in China may have felt the price hikes in all kinds of goods. The acronym CPI is now one of the best known economic terms. China's CPI (Consumer Price Index), a major gauge of inflation, rose to a 28-month high of 5.1 percent in November, the National Bureau of Statistics (NBS) said on Dec 11. The growth rate picked up from 4.4 percent in October, according to the NBS. The inflation was driven by an 11.7 percent of surge in food prices, which accounts for one third of the basket of goods used to calculate China's CPI. [Full Story] $7.24 billion Trade deficits are rare for China. But it did come, albeit only once this year. China's trade balance turned red in March, the country's first monthly trade deficit in six years, the General Administration ...

Volkswagen brand cars?sales have surpassed 800,000, surpassing total sales of Shanghai Volkswagen in 2009. [ China Daily ] On December 26, Shanghai Volkswagen Automotive Co Ltd passed a new milestone - its output and sales both surpassed 1 million vehicles. The company said in a statement that successful marketing enabled such rapid and healthy development. Its output 26 years ago was 1,700 cars in its first year. Beginning in 2004, Shanghai Volkswagen moved from product-oriented promotion to an emphasis on customers and market demands. In 2007 the company started a 'proactive marketing mode' to help its dealers nationwide improve their outreach and enhance customer satisfaction. The 1 million mark is the result of deeper customer trust and continuing improvements at both the manufacturing level and by dealers, the company said. Dual-brand strategy Another driver of the company's growth was its successful branding strategy. Since it began local production of the Czech brand...

E-Commerce China Dangdang Dangdang’s Peggy Yu at the New York Stock Exchange, where the company listed on Dec. 8. E-Commerce China Dangdang, a Beijing-based online bookseller often likened to Amazon.com, is looking to follow in Amazon’s steps by expanding its product range to fuel growth, especially with its pockets full after listing on the New York Stock Exchange this month. Dangdang has already started with items like cosmetics, furniture and clothes, and it still aims to expand its book-selling business. But the Chinese market offers unique challenges. In an interview, Dangdang co-founder and Chairwoman Peggy Yu discussed her company’s strategy and her thoughts on book piracy, e-readers and rival e-commerce site Taobao. Edited excerpts: What are some of your planned investment areas to fuel growth? Yu: [In the] first nine months of the year we grew our business [revenue] about 55%, and we think we are going to keep the high growth for quite some time. The growth comes from several...

The value of yuan gained as a executive relation rate of Renminbi, China's currency, was set during 6.6305 per U.S. dollar Monday, compared with Friday's 6.6371, according to a interpretation released by a China Foreign Exchange Trading System. At present, a yuan is authorised to boyant upon a inter-bank unfamiliar sell market inside of a daily limit of 0.5 percent each way of a executive relation rate. Source: Xinhua