Business Times – 11 Mar 2008 Country may face headwinds of a US recession as its stock market, property sector cool THE beginning of Wen Jiabao’s second term seems remarkably similar to his first. In 2003, when Hu Jintao and Wen Jiabao, first took the helm as president and prime minister respectively, they were tested […]
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China faces ‘very severe’ unemployment
20m new jobseekers expected every year: labour minister (BEIJING) China’s labour minister yesterday admitted that the booming economy faced a ‘very severe’ unemployment situation as millions of new jobseekers join the market every year. The flood of new entrants in both urban and rural areas will continue for a long time, labour and social security […]
Inflation likely to have hit 8.3% in Feb: Bank of China
Reports of bank’s estimate trigger speculation of interest rate hike (BEIJING) China’s inflation likely hit a new 11-year high of 8.3 per cent last month on the back of rising food prices, state media reported yesterday, triggering speculation of a modest hike in interest rates. Severe winter weather which crippled transport networks, and the Chinese […]
China losing competitive edge in some industries: survey
(SHANGHAI) China is fast losing its manufacturing competitiveness in some industries, and companies need to upgrade their operations there to stay profitable, according to a survey released yesterday. The study comes amid reports that thousands of manufacturers, both Chinese and foreign, are shifting operations away from coastal regions, where labour and other costs are eroding […]
China’s economy leads world: poll
(WASHINGTON) More Americans believe China, not the United States, is the world’s top economic power, according to an opinion poll.The Gallup World Affairs survey found that four in ten Americans say China’s economy leads the world; only 33 per cent picked the United States.In 2000, the United States was top in the poll, with the […]
China no more the source of cheapest goods
Rising costs hit its competitive edge, forcing some firms to relocate overseas (SHANGHAI) The teddy bears selling for US$1.40 each in Shanghai’s Ikea store may be just about the cheapest in town, but they’re not made in China – they’re stitched and stuffed in Indonesia. The fluffy brown toys reflect a new challenge for China: […]
Rising costs squeeze Chinese factories
SHANGHAI – THE teddy bears selling for US$1.40 (S$1.97) in Shanghai’s Ikea store may be just about the cheapest in town, but they are not made in China: They are stitched and stuffed in Indonesia.The fluffy brown toys reflect a new challenge for China. Its huge economy, which has long offered some of the world’s […]
MAS fears Asia will hurt if US engine seizes
A negative spiral can take hold, affecting even the real economy (SINGAPORE) A sharp and deep recession in the United States will hit Asian economies, warned Heng Swee Kiat, managing director, Monetary Authority of Singapore (MAS), yesterday. And in his first public comment on the global financial turmoil, Mr Heng said the credit crisis has […]
Only one way to go for yuan – up, say analysts
Rapid economic growth, soaring inflation leave China with no choice (BEIJING) China has no choice other than to let the yuan appreciate against the dollar, analysts say. The combination of the world’s fastest economic growth, the highest inflation rate in 11 years and the rising cost of intervention will force gains in the yuan to […]
Inflation in China hits 11-year high, set to rise further
(BEIJING) China’s inflation rose to its highest level in more than 11 years in January after devastating snowstorms worsened food shortages, according to data reported yesterday, and analysts warned there might be sharper increases to come. Consumer prices in January climbed 7.1 per cent from the same month last year, driven by an 18.2 per […]
China, wary of social unrest, scrambles to contain food prices
It wants to avoid mistakes of 1988 as inflation hits 10-year high of 6.9% (HONG KONG) Rocketing food prices in China have sown deep concern among the communist leadership, ever wary of social unrest, as they fumble to control inflation without repeating past mistakes, analysts say. Overall inflation in China is running at a 10-year […]
2008 not necessarily like 2007: UBS
(ZURICH) UBS AG does not expect 2008 to be a year like 2007, when the Swiss bank wrote down US $18 billion in bad credits and posted the first loss since its creation, its chief executive was quoted as saying yesterday. ‘I view the environment as difficult due to great uncertainties related to the US […]
IMPROVING OUTLOOK: UBS expects this year to be a better one
ZURICH – UBS does not expect this year to be like the last, when the Swiss bank wrote down US$18 billion (S$25.5 billion) in bad credits and posted the first loss since its creation, its chief executive officer (CEO) was quoted as saying yesterday. ‘I view the environment as difficult due to great uncertainties related […]
China’s economy may grow around 10% in 2008: IMF
Its MD says a faster pace of appreciation of yuan is needed to address economic challenges (BEIJING) China’s economy is likely to grow around 10 per cent this year despite a global slowdown stemming from the US sub-prime mortgage crisis, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), said yesterday. Mr Strauss-Kahn said […]
IMF predicts 10% growth in China
Beijing – THE International Monetary Fund (IMF) still sees China’s economy expanding 10 per cent this year. ‘The current financial crisis, which began in the United States housing market, is spreading to affect the real economy in the US and elsewhere,’ IMF managing director Dominique Strauss-Kahn told reporters in Beijing yesterday. ‘There will be some […]
China faces economic, political woes on price fears
(CHONGQING, China) China is supposed to be getting richer, but for Liu Gaohua, rising prices on everything from cabbages to houses mean life is only getting tougher. ‘It’s hard to get by day-to-day,’ said the resident of Chongqing, a western Chinese industrial city on the upper reaches of the Yangtze river. ‘We eat less pork […]
Shanghai stocks jump 8.1% as govt comes to rescue
SHANGHAI – CHINA’S main stock index jumped more than 8 per cent yesterday in its biggest daily rise since June 2005, after the authorities intervened to halt a three-week slide in share prices. Regulators’ approval of two new stock funds after a freeze of several months, official criticism of Ping An Insurance’s plan for a […]
ICBC sets reserves aside for possible 30% sub-prime loss
BEIJING – CHINA’S biggest bank, Industrial & Commercial Bank of China (ICBC), has set aside reserves equal to 30 per cent of its US$1.2 billion (S$1.7 billion) in sub-prime holdings to cover possible losses, a state news agency reported yesterday. The report, if confirmed, would be the first indication that Chinese banks, which have so […]
China economy expands 11.4%
But slower pace seen for 2008 on credit curbs, weaker global demand (BEIJING) China grew 11.4 per cent in 2007, the fastest pace in 13 years, but is headed for a modest slowdown this year as global demand weakens and credit curbs to cap inflation ripple through the economy. The softening was evident in figures […]
Overheating of Asian economies likely: Lehman
Better growth rate will attract massive capital inflows GOOD economic news now could lead to tough times later, an American investment bank is warning. The bank, Lehman Brothers, says that a soft landing for the global economy could lead Asia ex-Japan economies to overheat later this year or into next year. Lehman’s chief economist Asia […]
Inflation to ease to 4%: govt economist
(BEIJING) China’s inflation will recede in 2008 due to a slowing economy and a drop in food prices, a senior government economist said in a report published yesterday. Fan Caiyue, a deputy head at the economic research institute under the National Development and Reform Commission, said that China’s consumer price inflation would drop to 4 […]
Soros warns of worst financial crisis since WWII
(VIENNA) Billionaire investor George Soros said the world was facing the worst financial crisis since World War II and the United States was threatened with recession, according to an interview by the Austrian daily Standard. ‘The situation is much more serious than any other financial crisis since the end of World War II,’ Mr Soros […]
Governments urge calm in face of market turmoil
Ministers in Asia and Europe advise investors to stay rational and not overreact HONG KONG – GOVERNMENTS urged calm yesterday while calling for international cooperation to cope with a global slide in stock markets sparked by fears of a United States recession. Asian markets experienced a day of heavy losses, with Hong Kong share prices […]
Recession in US, Europe could shake Asia, S’pore
Region still relies heavily on world’s biggest markets, say economists A RECESSION in the United States and Europe would badly hurt Asian economies, including Singapore’s, which still rely heavily on these two export markets for growth, according to economists. Indeed, analysts at Lehman Brothers believe economic growth in Singapore could slump to as low as […]
Analysts see Asian economies weathering a US recession
Reason: Asia is now less dependent on the US economy (BANGKOK) Asia would be able to weather any recession in the United States, analysts say, because rising trade and investment within the region make it less dependent on the US economy than in the past. While a severe downturn in the US would drag on […]
Southern China fights inflation by hiking wages
Officials hope raise will offset rising prices and stave off social unrest SOUTHERN China took steps to combat rising inflation yesterday with the manufacturing hub of Guangdong province set to raise minimum wages by 13 per cent after the Chinese New Year. Over in the autonomous casino enclave of Macau, its government yesterday also proposed […]
Dubai govt investment arm eyeing China, says CEO
(SINGAPORE) Dubai government investment agency Istithmar is mulling investments in China, the Wall Street Journal quoted its chief executive as saying yesterday. Istithmar comes under the umbrella of the state-owned Dubai World, which also includes DP World, a container port handler that was forced by lawmakers in the United States to sell its US assets […]
CHINESE ECONOMY’S SUPER-GROWTH
‘Growth’ problems won’t go away yet THE Chinese economy, having chalked up an average growth rate of 9.7 per cent for over two decades, sustained another year of double-digit growth last year, at 11.5 per cent. This was first announced by Premier Wen Jiabao on Nov 20 last year whilst visiting Singapore. Soon after this, […]
US hurdles force Dubai state fund to look to China
Istithmar among such funds seeking out less developed markets to avoid excessive scrutiny DUBAI government investment agency Istithmar is considering investments in China, after being rebuffed in the United States, The Wall Street Journal reported yesterday. Istithmar comes under the umbrella of state-owned Dubai World, which also includes Dubai Ports World (DP World), a container […]
China increases penalties for price-fixing to fight inflation
Firms that hoard goods can be fined up to one million yuan: Cabinet (BEIJING) China’s Cabinet yesterday sharply increased penalties for price-fixing, expanding an anti-inflation campaign that has failed to cool a surge in politically sensitive food costs. Food costs soared by 18.2 per cent in November, pushing the overall monthly inflation rate to 6.9 […]
Big China firms’ bonds better: ING
(HONG KONG) Investors in Chinese property bonds should adjust their portfolios in favour of larger, diversified firms and cut their exposure to smaller developers which are focused on fewer cities, ING Bank said in a report yesterday. The bank advised bond investors to remain invested in bigger firms like Shimao Property Holdings, Agile Property Holdings […]
China may be cooling off at the wrong time
Global economy will take double hit if US goes into recession (PARIS/BEIJING) China is starting to gain control of its turbocharged economy, just as a US slowdown raises the risks of doing so. A narrowing trade surplus and declining money- supply growth are among the first signs that China is pulling back from its fastest […]
China economy may cool down at worst time
Combination of a US recession and a hard landing in China could cause global slowdown PARIS – CHINA is starting to gain control of its turbocharged economy, just as a United States slowdown raises the risks of doing so. A narrowing trade surplus and declining money-supply growth are among the first signs that the world’s […]
EU seeking partnership with China in Africa
Proposal comes as Chinese presence is eroding Europe’s influence in region LONDON – THE European Union has announced that it is seeking Chinese cooperation in Africa. EU Development Commissioner Louis Michel has pledged to present Beijing with an ‘African partnership’ when he visits China in March. But Mr Michel, a former Belgian foreign minister known […]
Developing nations to lift world economy amid US slowdown
They will be the biggest drivers of global growth as pace slows to 3.3% this year: World Bank DEVELOPING nations will be key in helping the global economy mitigate the drag from a slowing United States. With their domestic economies coming into their own, poor countries will be the world’s biggest growth driver this year, […]
Inflation and trade surplus driving yuan: Central bank
BASEL (SWITZERLAND) – CHINESE central bank governor Zhou Xiaochuan has said the trade surplus and faster inflation are driving the yuan’s appreciation. The currency’s gains reflect ‘economic data’, Mr Zhou told reporters yesterday in Basel, where he was meeting Group of 10 central bankers. The surplus, rising prices and Chinese institutions selling currency reserves ‘may […]
Consumption to hit record low
(BEIJING) China’s consumer spending, blamed for lacklustre contribution to the world’s fastest-growing economy compared with investment and trade, will hit a record low in more than two decades, despite anticipated higher growth in urban income than that of the aggregate economy, according to analysts. The inflation-adjusted disposable income of Chinese urban residents would increase by […]
China’s growth, inflation expected to slow
SHANGHAI – CHINA’S economic growth and consumer price inflation are expected to slow moderately this year as cooling policies take effect and food supplies increase, a major government research institute forecast yesterday. Gross domestic product growth is projected to ease to 10.8 per cent this year from an estimated 11.4 per cent last year, the […]
Bombs, security fears mar revelry as world greets 2008
(NEW YORK) Millions staged midnight parties at iconic landmarks around the world to ring in 2008, but bomb attacks and security fears quickly darkened New Year festivities in places. In New York, hundreds of thousands of revellers crowded the fabled Times Square, braving cold temperatures and stringent security measures to see Mayor Michael Bloomberg release […]
Global economy facing threat of stagflation
Growth may slow to 4-year low and inflation could hit 10-year high WASHINGTON – THE world economy is facing the risk of stagflation – the double whammy of suffering both recession and faster inflation. Global growth this quarter and next may be the slowest in four years, while inflation might be the fastest in a […]
IMF expects to lower global growth outlook
(ZURICH) The International Monetary Fund will lower its growth outlook as the continued credit crisis hurts the US and European economies, while global imbalances also weigh on growth, its top economist was quoted as saying. ‘Given this background, the numbers will indeed be weaker than in our latest World Economic Outlook,’ IMF chief economist Simon […]
Factory, property spending growth slows on loan curbs
Industrial output in Nov grows slowest, while loans rose the least in 8 months (BEIJING) China’s factory and property spending growth has slowed – another sign that government lending curbs may be starting to cool the world’s fastest-growing major economy. Fixed-asset investment in urban areas rose 26.8 per cent in the first 11 months from […]
China’s ’07 inflation may exceed 4.4%
Nov consumer prices likely at 6.5%, the highest in a decade (BEIJING) China’s 2007 inflation may exceed 4.4 per cent, driven mainly by rising food prices, China’s banking regulator said. ‘We will focus on preventing the structural rise in prices from transforming into overall inflation,’ Liu Mingkang, chairman of the China Banking Regulatory Commission, said […]
China’s policy shift signals concerns about inflation
BEIJING – CHINA’S announcement that it will move to a tight monetary policy from what it called the prudent stance of the past decade may not mark a radical new departure. But the change in rhetoric suggests the Chinese leadership wants to signal concern about living standards as people fret about inflation. Analysts say the […]
OECD warns of inflation risk in China
PARIS – CHINA’S economy faces serious inflation risks which, if unchecked, could fuel yet more speculation in stocks and property, the Organisation of Economic Cooperation and Development (OECD) said yesterday. Economic growth is likely to reach 10.7 per cent next year and 10.1 per cent in 2009, the OECD said in its twice-yearly Economic Outlook […]
Boom times could soon be over for China banks
Bad loans are set to rise, even as govt moves from prudent to tight policy SHANGHAI – THE fat years may be ending for Chinese banks as bad loans increase and monetary policy tightens. After government bailouts and reforms ended a debt crisis early this decade, bad loans could rebound because of exposure to China’s […]
Oil price falls below US$90
(LONDON) The price of oil fell back below US$90 yesterday as the market speculated about the chances of an increase in Opec output at the cartel’s meeting next week, dealers said. They said prices also fell after it appeared more likely that an explosion on a key pipeline from Canada into the United States would […]
China, India seen driving Asia’s wealth market
SG PRIVATE Bank is looking to China and India to drive Asia’s wealth markets, and the sub-prime crisis is a short-term hiccup, says chief executive Pierre Baer. The firm advises on some US$20 billion in Asian clients’ assets, posting an annual growth of about 30 per cent. It set up its Singapore office in 1998. […]
Large yuan revaluation ‘would hurt growth’
SEOUL – A BIG Chinese currency revaluation would invite speculation and damage growth, said Dr Fan Gang, a monetary policy adviser to the People’s Bank of China. Sharp increases in the yuan’s value would trigger ‘large speculative capital inflows and outflows that will kill China’s growth and financial stability’, Dr Fan, a member of the […]
China supports strong US dollar, says official
Beijing hopes for an orderly solution following recent market turbulence (CAPE TOWN) China supports a ‘strong dollar’ because it would be conducive to fostering a healthy global economic system, the country’s central bank governor Zhou Xiaochuan said yesterday. Speaking to reporters, Mr Zhou said that Beijing hoped for an orderly solution following recent market turbulence […]
S’pore, China to jointly develop eco-city
Tianjin Eco-City to be a model of sustainable devt (SINGAPORE) In a highly anticipated landmark signing at the Istana yesterday, the governments of Singapore and China inked a framework agreement to jointly develop an eco-city in Tianjin, which will deepen cooperation and bring bilateral relations to greater heights. The vision is for the Sino-Singapore Tianjin […]
Tough times ahead seen for China if bubble pops
Retired Japanese official says soft landing unlikely, social disquiet rising IN TOKYO CHINA’S economy has little chance of achieving a soft landing once the ‘bubble’ in stock market and real estate prices there bursts, according to former senior Japanese finance ministry official Toyoo Gyohten, who now heads one of Asia’s leading economic research institutes. Meanwhile, […]
Inflation rising as Hong Kong looks to grow 6% this year
Govt revises target from 5-6%, but inflation hits 2.5% for first nine months IN HONG KONG HONG Kong’s economy is tipped to grow by 6 per cent this year as the city continues to enjoy strong domestic demand and low unemployment, but inflation has hit levels not seen since the 1997 handover. ‘The momentum for […]
US credit woes hurt foreign funds to Asia
While inflow is fast slowing for HK, China and India, S’pore is experiencing outflow THE flood of foreign funds surging into Asian bourses over the past four weeks has been reversed by the ongoing credit woes in the United States. Singapore has started experiencing an outflow, with a net sale of US$2.1 million (S$3 million) […]
World Bank sees robust East Asia growth next year
But if oil prices hit new highs, region’s resilience will be tested, it cautions IN TOKYO THE East Asian economies will continue to see robust growth next year despite a likely US slowdown, but new highs for oil prices will test the region’s resilience, says the World Bank. The bank has, in its […]
Credit crisis ‘unlikely to faze East Asia’
World Bank expects region to shrug off sub-prime woes, high oil prices to log in solid growth THE sub-prime crisis in the United States is not posing a significant risk to East Asia‘s rapid growth, according to the latest World Bank forecasts. Â The region is expected to expand by a solid 8.2 per cent […]
Frustrated Taiwanese rage against rising prices
Consumers heckle govt leaders over economic hardship as elections loom  TAIPEI – THE stout man in a blue apron was busy handing out discounted fried dough stuffed with minced green scallions to Taiwanese office workers in a back alley lined with low-priced eateries.  ‘Prices of everything from soybean oil to flour to scallions […]
China’s prosperity a boon for S’pore: MM Lee
Minister Mentor lauds efforts at greening Beijing before Olympics A GROWING and prosperous China is good for Singapore, Minister Mentor Lee Kuan Yew said yesterday. Â Mr Lee, who is in Beijing to meet China‘s top leaders, made the remarks when he held talks with Chinese Foreign Minister Yang Jiechi. Trade and investment between the […]
China economy may be 40% smaller than estimated
About 300m Chinese living below poverty line, three times larger than current estimates  WASHINGTON – CHINA‘S economy is actually 40 per cent smaller than most recent estimates, a United States economist has said, citing a new way of measuring growth based on purchasing power.  Dr Albert Keidel, a senior associate at the Carnegie Endowment […]
Credit crisis, inflation threaten world growth, says Fukui
GLOBAL economic growth is under increasing threat from two fronts – the United States sub-prime crisis and soaring commodities prices that may push up inflation. The warning came from Bank of Japan governor Toshihiko Fukui at a function in Singapore last night. He said the sub-prime turmoil could severely disrupt financial markets, which could then […]
US$ still the anchor of Chinese reserves
Central bank official affirms policy after calls for a switch to stronger currencies  WASHINGTON – THE US dollar will remain the anchor currency of China‘s massive foreign reserves, despite suggestions that they were too heavily skewed towards the weakening greenback, said a senior Chinese central bank official. Mr Yi Gang, the People’s Bank of […]
High oil price demands good policies
IT would be a fallacy to imagine that the prospect of a US$100 price tag for a barrel of oil will lead to a push for renewable fuels any time soon. Simply put, there is nothing definitive yet on the horizon offering a reliable, continuous and cheap alternative in the face of mounting energy demand. […]
Inflation back to 6.5% in Oct as food prices rise
More monetary tightening, further rate hikes seen to rein in inflation (BEIJING) China’s consumer prices rose sharply in October, tying a decade- high monthly inflation rate of 6.5 per cent, the government reported yesterday, adding to pressure for measures to cool a politically sensitive surge in food prices. Food prices jumped 17.6 per cent in […]
Sub-prime crisis: New push to review rating firms’ role
IN TOKYO US Securities and Exchange Commission (SEC) chairman Christopher Cox promised yesterday that regulators would ‘aggressively’ pursue the new mandate they have been given to review the role that rating agencies played in the sub-prime mortgage loan crisis. He was speaking at a briefing in Tokyo as new evidence emerged that the fallout from […]
China’s trade surplus may top $43b in October
Figures due soon seen adding fuel to US complaints that yuan is still undervalued BEIJING – CHINA’S monthly trade surplus probably topped US$30 billion (S$43.3 billion) for the first time, adding fuel to United States complaints that the yuan is undervalued. The gap widened 29 per cent last month from a year earlier to US$30.8 […]
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