Archive for March, 2009

fragile Chimerica

The proposal that SDR gradually replace the status of the dollar has been supported by BRICS and the IMF, but has encountered opposition from the United States and the European Union. It expected at the G20 meeting, the proposal will not be produce the actual results, but in my opinion, at least people will recognize that if the United States attempt to shift their domestic crisis onto the world by printing the banknote, then we at least have other options . This proposal will make the United States take full account of the crisis of their cost burden when they decide to alleviate their own crisis by making a new global crisis.
FDI issue a large amounts of banknotes and the Chinese proposal on SDR, fully illustrated the fragility of the relationship of chimerica.

Chinese alternative proposal about US dollar supported by the United Nations

Chinese alternative proposal about US dollar supported by the United Nations

People’s Bank of China Governor Zhou Xiaochuan on the 23rd of this month promoted to set up a new international reserve currency to replace the US dollar, at present, this proposal was echoed not only by Russia, Brazil and other emerging markets, but also by the United Nations and the International Monetary Fund ( IMF) and other international organizations.

China is not the first who give the proposal, but China’s official support for this proposal, would restrict the United States who manipulate the exchange rate for their own country to seek the benefits, and restrict the possibility of some international speculation Groups to the global economic crisis .

The nationwide scale industrial enterprises profit fell 37.3% on Feburay

The nationwide scale industrial enterprises profit fell 37.3% on Feburay

from Jan to Feb, the national industrial enterprises above designated size (main business enterprises with annual revenue more than five million yuan, the same below) realized a total profit of 219.1 billion yuan, 37.3% decline compared to the period last year. In 39 industrial sectors, the oil and gas exploration industry profits fell 86.1%, the chemical industry profits fell 49.3%, 3.6% decline in building material industry, electronic communication equipment manufacturing industry has declined 96.3%, and special equipment manufacturing industry has declined 13.4%, transportation equipment manufacturing industry has declined 40.4%, 77.0 % decline in the power industry,

Experts said the oil price increasing will make the downstream industry under pressure

Experts said the oil price increasing will make the downstream industry under pressure
Media said that in view of the recent international market crude oil prices continued to rise, the Government decided from 0:00 today,gasoline and diesel prices were increased by 290 yuan RMB per ton and 180 yuan RMB. This is the second National Development and Reform Commission adjust oil prices since new pricing mechanism for oil products.
Experts said that the new refined oil pricing mechanism difficult to understand how to implement. HAN Xiao-ping, president of China Energy Net said that when the international oil prices fall some times ago, the government did not simultaneously reduced the price of oil; meanwhilecurrent low domestic demand, coupled with the current downstream enterprises operating difficulties at this time oil prices rise is still above questionable.

Experts believe that house prices have 40% to 50% price reduction Spaces

  According to media reports, experts believe that house prices are still declining trend the times, the current prices compared to income of residents is still too high. At the international level, the reasonable proportion of house prices compared to household income is 3-5 times, but now China ratio reach about 12 times, that means all the income of a resident for 12 years without food or drink are only enough to pay one Suite son. This is far beyond the reasonable proportion, housing consumption influenced and overdraft other consumption of a lot of buyers. Experts said house prices have 40% to 50% of the declining price space, probably the bottom after two years.

Steel has fallen to the price levels in 1994

Steel has fallen to the price levels in 1994

Recently media reports, because excess steel production capacity led to price fluctuations in steel prices this year, in early March steel has fallen below the price level in 1994. In addition, the international market demand decline seriously result in a substantial decline in this year, in the first two month steel exports decline more than 50% year-on-year. It is estimated that Steel exports this year will drop 80%, much more serious than the original prediction.

30,000 yuan to buy the minibus to enjoy 4,500 yuan subsidy

30,000 yuan to buy the minibus to enjoy 4,500 yuan subsidy
Chinese official open the National Automobile Motorcycle going to the countryside,if a farmers purchase mini-buses worthy of 30,000 yuan, he would be able to get 4,500 yuan subsidies, the implementation of car to the countryside, will expand automobile consumer market.

the new management regulations of securities broker introduced

the new management regulations of securities broker introduced
Securities management announced new management regulations of securities dealers, securities brokers should pass the qualifying examination, and who possess the required conditions for securities practitioners practice; securities companies should train securities brokers for no less than 60 hours before work, and test the effect of pre-service training. After Implementation of new regulations, some brokers induced customer to repeated buying and selling for a commission, this behavior should be under control effectively.

Chinese exports fell

Chinese exports fell
China’s foreign trade imports and exports on February is 124.95 billion U.S. dollars ,for the same period last year dropped 24.9 percent, the trade surplus compared with January drop nearly 90% , far more than previously forecast by economists. news media commented that exports will continue to fall on February to further expand, indicating that the financial crisis on China’s impact is deepening. Analysts believe that because of the impact of financial crisis has not yet been completely released, the situation of China’s exports during the first half year seems to hard to be improved.

China’s industrial added value grew 3.8% from January to February

China’s industrial added value grew 3.8% from January to February
National Bureau of Statistics said that the January-February this year, China’s industrial added value from Jan to Feb grew 3.8% year-on-year, growth in February is 11.0%