Friday, December 01, 2006

Chinese Economy Update Dec. 1, 2006

  • China's unemployment statistics to cover rural areas (accounting for almost two thirds of the country's population) for the first time, but the data are likely to be far from accurate.
  • China's Engel Coefficients for the year of 2005 (36.7% in urban areas and 45.5% in rural areas) calculated by the National Bureau of Statistics are widely questioned.
  • China's southern coastal province Guangdong witnesses a new wave of industrial shift, characterized by moving-in of technology-intensive industries from America and Europe
  • DB greater China economist Ma Jun says an overspeed growth in China's trade surplus is to bring about six major risks: dramatic changes in foreign exchage rates (particularly the greenback) and in global economy; increasing trade frictions; excess liquidity and ineffectiveness of monetary policy; bubbling of financial markets and property market; a contradiction between low yield of forex reserves and much higher rate of return on FDI in China; increasing possibility of a sudden correction of RMB's value, which may shock other economics (mainly the Asian ones) and global commodity markets.
  • WB's report shows that a third of global anti-dumping claims target China.
  • S&P predicts it will take at least five years before the newcome foreign-funded banks could make substaintial profits in China.
  • Brilliance China Automotive signed a contract to export 158,000 sedans to Germany in next 5 yrs, representing Chinese automakers' ambition to penetrate into the industrialized world.
  • China Post Group incorporated on Nov 29 with a registered capital of 80 bln yuan.

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