China Economy Forum

[JSCh]

Holding of renminbi by world's central banks rises
By ZHOU LANXU, XIN ZHIMING | China Daily | Updated: 2018-10-11 03:06

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Central banks across the world increased their holdings of renminbi by 32.6 percent in the second quarter, despite the currency's depreciation against the greenback, according to the latest figures released by the International Monetary Fund.

Analysts said the steady increase signals a strong momentum in use of the renminbi abroad, or renminbi internationalization, and the ratio could further rise in the coming years.

"It is certain that yuan internationalization will continue in the long term, immune to short-term market fluctuations and economic headwinds," said Zhang Xingrong, managing director at the Bank of China's Institute of International Finance.

By the end of June, total renminbi reserves of 149 monetary authorities, who report forex holdings to the IMF's Currency Composition of Official Foreign Exchange Reserves database, has risen for four consecutive quarters from 1.07 to 1.84 percent of their total forex reserves.

This was the first time the renminbi's proportion exceeded that of Australian dollar, official data released by the end of September said.

"China has made significant progress in financial market opening-up and participated in an expanding scale of trade, cross-border investment and human resource movement, naturally strengthening the yuan's international role," Zhang said, adding that the growth of the yuan's share in global reserves could help stabilize global financial markets with currency diversification.

Mei Dongzhou, an associate professor at the Central University of Finance and Economics, regarded the inclusion of the yuan into the Special Drawing Right currency basket as a major reason for its greater role in global reserves. The inclusion has induced automatic yuan allocation in official reserves and buoyed worldwide acceptance of the currency, he said.

Oct 1 marked the second anniversary of the yuan being included in the SDR — a reserve currency built from a basket of important national currencies assigned by the IMF — with a weight of 10.92 percent.

A recent report from Goldman Sachs Group estimated the renminbi's share in global reserves "should rise to around 3 to 4 percent by the end of 2022".

Fulfillment of yuan internationalization's great potential will rely on progress in the opening-up of China's financial markets and the development of financial markets' depth and breadth, which dictates the attractiveness of renminbi assets, Mei said.

Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, told reporters in September that the country will keep improving both the convenience of foreign capital investing in China and fundamental market rules, including trading suspension, information disclosure and trade settlement.

Mei warned about the risk associated with further renminbi internationalization, given the potential pressure on the safety of cross-border capital flows.

 

[aziqbal]

Can someone give me accurate figure of Chinese GDP in Yuan for 2017?

So many variations what’s the official line ?

 

[JSCh]

Friday, October 19, 2018, 12:03
China's GDP grows 6.7% in first 3 quarters
By Xinhua

In this undated photo, industrial robots move production material in a factory of Wenzhou Ruiming Industrial Co Ltd in Ruian. (PHOTO / XINHUA)​

BEIJING - China's gross domestic product (GDP) expanded 6.7 percent year on year in the first three quarters of 2018 to about 65.09 trillion yuan (about US$9.38 trillion), data from the National Bureau of Statistics (NBS) showed Friday.

The pace was in line with market expectations and higher than the government's annual growth target of around 6.5 percent.

In the third quarter, China's GDP rose 6.5 percent from a year ago, compared to a 6.7-percent increase in the second quarter, the NBS said in a statement.

ALSO READ: China manufacturing activity expansion slows in September

The economy has expanded in a reasonable range and maintained a trend of overall stability and steady progress, the statistical authority said, while acknowledging that the country faces more external challenges and rising downward pressure.

The service sector gained 7.7 percent year on year in the January-September period, picking up from a 7.6-percent increase in the first half, and outpacing 3.4 percent in primary industry and 5.8 percent in secondary industry.

China's industrial output up 6.4%

China's value-added industrial output, an important economic indicator, expanded 6.4 percent year on year in the first three quarters of 2018, the NBS said Friday.

The growth rate was 0.3 percentage points lower than that recorded in the first half.

In September, industrial output increased 5.8 percent year on year, down 0.3 percentage points from August.

Industrial output is used to measure the activity of certain large enterprises with an annual revenue of at least 20 million yuan (about US$2.9 million).

In the first three quarters, manufacturing output expanded 6.7 percent year on year, mining output rose 1.8 percent, while the production and supply of electricity, thermal power, gas, and water posted the fastest growth of 10.3 percent among the three major sectors.

During the period, the production index for the country's service sector rose 7.8 percent year on year, down 0.2 percentage points from H1, the NBS data showed.

China's fixed-asset investment up 5.4%

China's fixed-asset investment grew 5.4 percent in the first three quarters of the year, up from 5.3 percent for January-August, data showed.

China's retail sales up 9.3%

China's retail sales of consumer goods grew 9.3 percent year on year in the first three quarters this year, official data showed Friday.

The growth slightly slowed from the 9.4-percent rise seen in the first half, according to the NBS.

READ MORE: China's industrial profits up 17.1% in Jan-July period

China's property investment up 9.9%

China's real estate investment increased 9.9 percent year on year in the first three quarters of this year, the NBS said.

The growth was slightly slower than the 10.1-percent expansion recorded in the January-August period.

 

[JSCh]

China draws clear picture of state-owned assets
Source: Xinhua| 2018-10-24 17:06:28|Editor: xuxin


BEIJING, Oct. 24 (Xinhua) -- The State Council, China's cabinet, for the first time reported on the condition of state-owned assets (SOAs) in full length to the top legislature on Wednesday.

The Standing Committee of the National People's Congress (NPC) reviewed exhaustive reports on the status, management and reform progress of SOAs.

According to the report, total SOAs in non-financial enterprises had reached 183.5 trillion yuan (26.4 trillion U.S. dollars) by the end of 2017, while that in financial enterprises had hit 241 trillion yuan.

Finance Minister Liu Kun, on behalf of the State Council, delivered a special report on SOAs in financial enterprises, which offered statistics on different layers of the assets.

From 2013 to 2017, revenue of centrally-administered state-owned financial enterprises increased from 4.3 trillion yuan to 5.8 trillion yuan, with the net profit attributable to parent companies growing from 1.2 trillion yuan to 1.4 trillion yuan, according to Liu's report.

The Central Committee of the Communist Party of China introduced the reporting mechanism in December 2017 to enhance NPC supervision over SOAs, a move analysts believe will boost transparency and credibility of SOA management.

 

[JSCh]

Nation produces 181 unicorns
By Global Times – Reuters Source:Global Times - Reuters Published: 2018/11/4 18:53:40

China gave birth to a new unicorn every 2.6 days in the third quarter, and the country now has 181 unicorns, which has exceeded the US to be the world's largest source of unicorns in terms of numbers, according to the Hurun Greater China Unicorn Index.

The top 2 in the list are Ant Financial Services Group, the financial arm of Alibaba Group, which is valued at 1 trillion yuan as well as news aggregating platform Toutiao, valued at 500 billion yuan.

Luckin Coffee, a local rival of the US' Starbucks which was founded 270 days ago, was the fastest-rising unicorn in China in the third quarter of 2018 amid ongoing China-US trade tensions.

 

[JSCh]

RMB's role swells in overseas commerce
By Shi Jing in Shanghai | China Daily | Updated: 2018-11-07 07:21

Chinese 100 yuan banknotes. [Photo/VCG]
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The ongoing internationalization of China's renminbi has become an important currency for cross-border trade and investment, according to company representatives and other experts during a forum held at the China International Import Expo on Tuesday.

Pan Gongsheng, deputy governor of the People's Bank of China, said the internationalization of the renminbi, which started in 2009, has provided more financing possibilities for import and export companies. Investment channels have been increased and the business environment has improved, Pan said.

Li Chenggang, assistant minister of commerce, said the internationalization of the renminbi has helped to lower costs and prevent foreign exchange risks. Meanwhile, investment and free trade have been greatly facilitated, he said.

He Yajun, chief finance officer of IKEA Supply China, said the internationalization of the renminbi has led to more convenient transaction procedures and helped companies to avoid certain risks, enabling IKEA China to integrate into the corporation's global settlement strategy.

At the same time, IKEA Supply China has promoted renminbi settlement to its domestic suppliers, the majority of which are small and medium-sized enterprises, He said. Although these SMEs held a wait-and-see attitude at the beginning, the relatively stable renminbi rate has convinced them to go for the change, she said.

"At present, about 50 percent of the suppliers have converted to renminbi settlement, and the ratio is expected to top 90 percent soon," she added.

Dutch technology giant Philips started cash pool management in renminbi in China earlier this year. With an offshore account opened in the China (Shanghai) Pilot Free Trade Zone, Philips China can be included in the company's global headquarters' management, said Liu Ling, senior vice-president of Philips Greater China.

"In the past, the currency rate was an important issue when we negotiated with our suppliers. But with the internationalization of the renminbi and transactions settled in renminbi, the problems can be solved and we can focus more on the business itself," said Liu.

Qu Hongbin, chief China economist at HSBC, said the renminbi will rise as the world's third-largest reserve currency in the next five years. The internationalization of the renminbi is the key to the further opening-up of the financial sector and thus should be placed at an international level, he said.

 

[aziqbal]

Ok so when is Chinese going to officially confirm their GDP per capita is above the $10,000?

Believe it or not I remember when it was $3,000

What a milestone

Unofficially I believe they have already reached that mark

Last year $13.6 trillion GDP at 1.386 billion people makes it $9,800 from 84.56 trillion Yuan

 

[polanski]

• Nov 11 2018 at 4:58 PM
• Updated Nov 11 2018 at 6:09 PM

China-led investment under the Belt and Road infrastructure program has faced increasing scrutiny in neighbouring countries out of concerns over potential debt-related risks. Jamie Brown
by Han Wei

Beijing | China and Myanmar are moving ahead with a China-backed deep-sea port project in Kyaukpyu, 250 miles northwest of Yangon, following nearly three years of twists and turns.

Myanmar officials and Chinese investors signed a framework agreement for the Kyaukpyu port project on Thursday in the capital city, Nay Pyi Taw, a spokesman at Myanmar's Ministry of Commerce told Caixin.

A consortium led by China's state-owned investment conglomerate Citic Group won a tender to build the port in 2015. It was part of a broader project for the Kyaukpyu special economic zone launched by Myanmar's former President Thein Sein. Total investment in the port was estimated at more than $US7 billion, of which China could account for as much as 85 per cent, according to the original agreement.

But the project was held up after elections in 2015 ended Myanmar's military rule and the new government had concerns about financing, equity and debt issues related to the project.

Elections in 2015 ended Myanmar's military rule and the new government, including Myanmar's Foreign Minister Aung San Suu Kyi, had concerns about the proposed project with China. AP
China-led investment under the Belt and Road infrastructure program has faced increasing scrutiny in neighbouring countries out of concerns over potential debt-related risks. In early October, Pakistan cut the size of a key Chinese railway project by $US2 billion, citing debt worries.


In August, Malaysia's newly elected Prime Minister Mahathir Mohamad announced that more than $US23 billion of Chinese projects, including railways, were "cancelled for now".

On the Myanmar port project, negotiations had made little progress by October 2017 as Myanmar investors "want more shares, but they don't want to take more financing responsibility," Yuan Shaobin, executive president of Citic Myanmar, told local media.

In May this year, several international media outlets reported that the Myanmar government launched a re-evaluation of the port project because of concerns that it might put Myanmar heavily in debt to China.

But the freeze apparently thawed after the two countries signed a memorandum of understanding in September to establish the China-Myanmar Economic Corridor as part of the Belt and Road program. The Kyaukpyu port is the first project to move forward under the accord.


According to Aung Naing Oo, director of Myanmar's Investment and Company Administration (DICA), the Chinese consortium will take a 70 per cent stake in the port project with the remaining 30 per cent split between the Myanmar government and a consortium of local businesses. The Myanmar stake was increased from the previously agreed 15 per cent.

Investors in the China consortium include China Merchants Group, China Harbour Engineering, Tianjin Teda Group, Yunan Construction Engineering Group and Thailand's Charoen Pokphand Group.

Earlier this month the Myanmar Times quoted deputy commerce minister U Aung Htoo saying that the port project would be carried out in four phases. The first-phase construction of a terminal with capacity for two to three vessels will involve initial investment of $US1.3 billion, down from a previous estimate of $US1.6 billion.

Citic Myanmar's Yuan said the framework agreement will be just the beginning of a lengthy procedure before construction starts, including the signing of several related contracts and regulatory approvals.


This article was originally published by Caixin.

 

[艹艹艹]

Samsung electronics suffered a crushing defeat in the Chinese market, becoming a marginal brand with a near-zero share.In the Q3 of 2018, samsung electronics delivered only 600,000 phones in China, and it expects to sell only 3 million phones in China this year.

Previous agencies reported that samsung's share of the Chinese smartphone market had fallen to a paltry 2%

China's smartphone market has already formed, is huawei, xiaomi, OPPO, vivo four major Chinese brands, as well as the American apple. The report by several agencies shows that the four big Chinese brands' market share and sales are still growing.

 

[TaiShang]

Samsung electronics suffered a crushing defeat in the Chinese market, becoming a marginal brand with a near-zero share.In the Q3 of 2018, samsung electronics delivered only 600,000 phones in China, and it expects to sell only 3 million phones in China this year.

Previous agencies reported that samsung's share of the Chinese smartphone market had fallen to a paltry 2%

Too bad. The real casualty from THAAD should be Apple, not Samsung. But, there is a price for being a minion with imperfect sovereignty and little national dignity.

 

[Zibago]

Samsung electronics suffered a crushing defeat in the Chinese market, becoming a marginal brand with a near-zero share.In the Q3 of 2018, samsung electronics delivered only 600,000 phones in China, and it expects to sell only 3 million phones in China this year.

Previous agencies reported that samsung's share of the Chinese smartphone market had fallen to a paltry 2%

China's smartphone market has already formed, is huawei, xiaomi, OPPO, vivo four major Chinese brands, as well as the American apple. The report by several agencies shows that the four big Chinese brands' market share and sales are still growing.

View attachment 520132

They are not giving the bang for buck they once did they need to offer something really spectacular to actually gain interest

 

[war&peace]

Too bad. The real casualty from THAAD should be Apple, not Samsung. But, there is a price for being a minion with imperfect sovereignty and little national dignity.

So you're saying it has more to do with the politics of the countries than the product itself?
I think Galaxy S9 is marginally better than S8 and it is priced high while Huawei and Xiaomi are offering good phones at different price points. However I think S10 will change this.

 

[艹艹艹]

So you're saying it has more to do with the politics of the countries than the product itself?
I think Galaxy S9 is marginally better than S8 and it is priced high while Huawei and Xiaomi are offering good phones at different price points. However I think S10 will change this.

The main reason is that when samsung note7 phone has a serious quality problem,the Samsung's official approach has disappointed Chinese consumers.

Samsung mobile phone market share in China has been irretrievable, and India will be samsung's lifeline.

 

[aman_rai]

Samsung mobile phone market share in China has been irretrievable, and India will be samsung's lifeline.

In India, Samsung don't have much mobiles in mid range section... Maximum of Indians go for mid range(10k-20k)
This is the reason for Xiaomi and Redmi sucess in India...
Moreover daddy of mobiles NOKIA is back in India and its Nokia 5.1 plus and 6.1 plus are doing great... So it will be difficult for Samsung

 

[TaiShang]

So you're saying it has more to do with the politics of the countries than the product itself?
I think Galaxy S9 is marginally better than S8 and it is priced high while Huawei and Xiaomi are offering good phones at different price points. However I think S10 will change this.

I think has to do with politics, as well as Samsung's declining image as cool. But, of course it has more resources to revive interest than, say, HTC, among young folks.

They really need to come up with distinct products, but, quite difficult given that domestic brands match them easily and at times surpass them in features.

The main reason is that when samsung note7 phone has a serious quality problem,the Samsung's official approach has disappointed Chinese consumers.

Samsung mobile phone market share in China has been irretrievable, and India will be samsung's lifeline.

Yes, that's another reason. For some reason they took Mainland customer as fool and failed to show a similar sensitivity toward their customers as they did in the US, for example.

This is, I guess, also a result their subjugated political system; they innately think they need to first and foremost please foreigners while ignoring or disregarding their own historical-cultural neighbor.