China Economy Forum

[cirr]

7% GDP growth likely in second half

2017-10-17 08:57 China Daily Editor: Li Yahui

Zhou Xiaochuan, governor of the People's Bank of China. (Photo provided to China Daily)

Increase in consumption helped improve economic fundamentals, central bank chief tells global meeting

The world's second-largest economy is likely to reach a growth rate of 7 percent in the second half of this year, China's central bank governor Zhou Xiaochuan said on Sunday in Washington.

China's growth has slowed over the past few years, tumbling from more than 10 percent for years to 6.7 percent last year.

But since this year, the driving force of economic growth has somewhat recovered, thanks partly to the rapid growth in consumption, Zhou told an international banking seminar that coincided with the fall meetings of the International Monetary Fund and the World Bank.

The IMF forecast on Oct 9 that China's gross domestic product would grow by 6.8 percent in 2017.

"The country's GDP grew at 6.9 percent in the first half of 2017. In the next half, it may hopefully reach 7 percent," said Zhou, governor of the People's Bank of China.

China has made strenuous efforts in recent years to restructure its economy while maintaining steady growth. As a result, it has seen its economic fundamentals improve, with the consumption and service sectors playing a more important role and prices remaining stable.

Latest consumer price inflation data released by the National Bureau of Statistics on Monday show that the consumer price index rose by 1.6 percent year-on-year in September, down from 1.8 percent in August and well within the country's target of 3 percent for this year.

The producer price index increased by 6.9 percent year-on-year in September, up from 6.3 percent in August. The gain, the strongest since March, indicates that corporate profitability is robust and the overall economy remains resilient, analysts said.

China is scheduled to release its third-quarter data, including GDP figures, on Thursday. Economists widely expect GDP growth to reach an impressive 6.8 percent.

Zhou said China's efforts to cut overcapacity in the steel and cement sectors have yielded positive results, but the country needs large output from these industries to meet the needs of urbanization.

China is expected to attain this target, he said.

But the nation's accelerating urbanization requires a sizable output in those areas, he added.

"Excess capacity in the steel and cement industries has been a result of large-scale infrastructure construction and the quickening urbanization pace," Zhou told the seminar, which was also attended by US Federal Reserve Chair Janet Yellen and central bank governors from other major economies.

Overcapacity, especially a steel glut, has also been a concern of the US administration.

At the first China-US Comprehensive Economic Dialogue in late July, both sides agreed that steel overcapacity is a global issue that requires a global solution.

As part of its measures in this regard, China plans to reduce steel capacity by 100 million to 150 million metric tons from 2016 to 2020, according to Vice-Minister of Finance Zhu Guangyao.

Zhou also said that China has made much headway in deleveraging. "The overall leverage has begun to lower down and, although not drastically, it has become the trend."

http://www.ecns.cn/business/2017/10-17/277274.shtml

 

[JSCh]

Economy on course to faster growth
Shine
00:55 UTC+8, 2017-10-20

China’s economic growth looks set to accelerate for the first time in seven years this year, after GDP growth stayed stable in the third quarter, buoyed by strength in retail spending.

The country’s gross domestic product expanded at a robust 6.8 percent annual pace in the three months ending in September, a marginal change from the previous quarter’s 6.9 percent, according to data released by the National Bureau of Statistics yesterday.

This is the ninth straight quarter that China has seen growth of 6.7-6.9 percent, maintaining medium-high growth and adding to evidence of further economic resilience, bureau spokesman Xing Zhihong told reporters.

In the first three quarters combined, the economy expanded 6.9 percent year on year, holding steady from a 6.9 percent increase in the first half of the year.

The economy is expected to comfortably beat the government’s 2017 target of around 6.5 percent and 2016’s 6.7 percent, which was a 26-year low.

“The Chinese economy has maintained steady growth with a positive outlook in the first three quarters,” Xing said.

“The sound economic expansion in the first three quarters has “further laid a solid foundation for achieving the annual development target,” Xing said.

Economic structure and growth quality both improved, he said, and new growth engines are gaining steam as employment had expanded, consumer prices were stable, and the balance of international payments had improved.

Growth in the service sector outpaced the overall GDP to reach 7.8 percent year on year in the first three quarters.

Yesterday’s data also showed that total sales of consumer goods rose 10.4 percent year on year to 26.32 trillion yuan (US$4 trillion) in the first three quarters. The pace was unchanged compared with the same period of last year.

“Consumption demand has become a main engine of China’s economic growth,” Xing said, contributing 64.5 percent of GDP growth, up 2.8 percentage points from the same period of last year.

Last month, retail sales expanded by 10.3 percent year on year, up from August’s 10.1 percent in August.

The bureau attributed the growth partly to booming online sales, which surged 34.2 percent year on year, 8.1 percentage points faster than a year earlier.

Online sales of physical goods rose 29.1 percent to 3.68 trillion yuan in the first three quarters, accounting for 14 percent of total retail sales.

From January to September, retail sales in rural areas rose 12.1 percent, outpacing the 10.1 percent expansion in urban areas.

China is trying to shift its economy toward a growth model driven more by consumer spending, innovation and services while weaning it off reliance on exports and investment.

Fixed-asset investment expanded 7.5 percent in the first nine months, marking the slowest rate of growth since a 6.3 percent reading in December 1999.

Investment growth has slowed in recent years amid efforts by authorities to move from investment-driven economic growth.

But private sector fixed-asset investment continued to lag state spending, slowing to 6 percent growth for the January-September period, compared with 11 percent growth in investment by state firms.

China’s industrial output growth accelerated to a three-month high of 6.6 percent in September, up from 6 percent in August.

In the first three quarters, industrial output expanded 6.7 percent year on year, faster than the 6 percent increase in the same period of last year and flat with that of the first eight months of this year.

Sales of residential property in terms of area rose 7.6 percent in the first three quarters, compared with 13.5 percent in the first half.

Focus placed on quality

Wang Tao, chief China economist with UBS, said GDP growth may moderate to 6.6 percent in the fourth quarter, weighed by a further slowdown of property sales and infrastructure investment.

Wang said President Xi Jinping’s opening speech at the 19th National Congress of the Communist Party of China “was notable for the focus placed on quality and equality of development over the coming years, rather than specific growth targets, though the goal of doubling 2020 GDP from 2010 levels remains.”

“We see the drive to deleverage and incrementally tighten property policy continuing in the coming months. Any policy change, if needed, will likely only come at or after next March’s National People’s Congress, when more information should be available on any potential notable slowdown.”

Julia Wang, China economist for HSBC, said continued manufacturing recovery and strong growth in services and consumption points to a positive outlook in 2018.

“There are signs that underlying demand is still holding up well,” Wang said in a note. “We have turned more positive on growth since last year, arguing that the manufacturing sector is on the cusp of a more structural revival in the next two to four years. So far, data are still broadly supportive of that view.”

Economic indicators for September showed strong expansion in the manufacturing sector as the official Purchasing Managers’ Index rose to 52.4, the highest this year. Growth of imports and exports both accelerated.

China’s average per capita disposable income grew 9.1 percent year on year to 19,342 yuan in the first three quarters, yesterday’s data showed. Deducting inflation, the real growth was 7.5 percent, up 1.2 percentage points from a year earlier. The figure exceeded GDP growth for the same period.

The bureau’s data also showed income gaps between urban and rural residents continuing to narrow, with the real growth of per capita disposable income in rural areas 0.9 percentage points higher than in urban regions.

Per capita consumption averaged 13,162 yuan, up 7.5 percent from a year ago. The inflation-adjusted growth was 5.9 percent.

In the job market, 10.97 million new jobs were created in the first three quarters, nearly completing the annual target of 11 million.

 

[ChineseTiger1986]

@Martian2

China's 2016 Q1-Q3 GDP: ￥52.9971 trillion
China's 2017 Q1-Q3 GDP: ￥59.3288 trillion

China's 2016 GDP: ￥74.4127 trillion

China's 2017 GDP = 59.3288 / 52.9971 * 74.4127 = ￥83.3 trillion

83.3 trillion / 6.7 = $12.43 trillion

So China's 2017 GDP in the USD could have a chance to hit 12.5 trillion.

 

[bobsm]

Golden China dominates the medals table at the end of WorldSkills Abu Dhabi 2017

Asian and European countries take home the most medals from the world's biggest vocational skills contest

James Langton
October 20, 2017
Updated: October 20, 2017 01:13 PM

China led the winners table at the conclusion of WorldSkills Abu Dhabi 2017 on Thursday night, capturing 30 medals, including 15 gold.

Asian countries dominated what has been dubbed the “skills Olympics”, taking home 30 gold medals from the 51 different vocational skills contested at the four-day event, held at the Abu Dhabi National Exhibition Centre.

The medals were awarded in a colourful closing ceremony, as nearly 10,000 people packed the du Arena on Yas Island.

Simon Bartley, president of WorldSkills, told the competitors: “Whether you are leaving here with a medal or not you all leave here as champions, individuals who have reached higher than you could ever have imagined when you started your journey three years ago."

South Korea captured 25 medals, including eight gold, while Taiwan, which competes internationally as Chinese Taipei, went home with four gold medals.

Russia, who will host the competition in two years’ time, won 11 medals, including five gold.

Although this was the first time the world’s largest vocational skills competition had been held in the Mena region, Arab countries, including the UAE, did not feature in the main medal table. However, the UAE was awarded three medals for excellence, for reaching high scores in three skills.

The results are a window into the changing face of economic power, as reflected in manufacturing. The United States, the world’s largest economy, did not win a single medal, while Brazil took home 15, including six gold.

In Europe, Switzerland, which has a long tradition of vocational training, managed eight golds, with France capturing five. Italy, whose team is represented by the North Tyrol region, won two gold medals, while the UK’s haul of seven medals included one gold and three silver. Germany, on the hand, took just one silver and one bronze.

Of the 59 countries taking part at WorldSkills Abu Dhabi, 29 went home with a medal. Liechtenstein, the smallest nation competing, won the gold for plastering, while India managed a silver and bronze, with Iran also winning bronze in plumbing.

The depth of China’s success can be measured in the variety of competitions won, ranging from baking and bricklaying to tiling and welding. China's Bia Song also won the Albert Vidal Award for the best competitor, after taking gold in the industrial mechanic millwright skill.


https://www.thenational.ae/uae/gold...he-end-of-worldskills-abu-dhabi-2017-1.668813

 

[TaiShang]

Golden China dominates the medals table at the end of WorldSkills Abu Dhabi 2017

Asian and European countries take home the most medals from the world's biggest vocational skills contest

James Langton
October 20, 2017
Updated: October 20, 2017 01:13 PM

China led the winners table at the conclusion of WorldSkills Abu Dhabi 2017 on Thursday night, capturing 30 medals, including 15 gold.

Asian countries dominated what has been dubbed the “skills Olympics”, taking home 30 gold medals from the 51 different vocational skills contested at the four-day event, held at the Abu Dhabi National Exhibition Centre.

The medals were awarded in a colourful closing ceremony, as nearly 10,000 people packed the du Arena on Yas Island.

Simon Bartley, president of WorldSkills, told the competitors: “Whether you are leaving here with a medal or not you all leave here as champions, individuals who have reached higher than you could ever have imagined when you started your journey three years ago."

South Korea captured 25 medals, including eight gold, while Taiwan, which competes internationally as Chinese Taipei, went home with four gold medals.

Russia, who will host the competition in two years’ time, won 11 medals, including five gold.

Although this was the first time the world’s largest vocational skills competition had been held in the Mena region, Arab countries, including the UAE, did not feature in the main medal table. However, the UAE was awarded three medals for excellence, for reaching high scores in three skills.

The results are a window into the changing face of economic power, as reflected in manufacturing. The United States, the world’s largest economy, did not win a single medal, while Brazil took home 15, including six gold.

In Europe, Switzerland, which has a long tradition of vocational training, managed eight golds, with France capturing five. Italy, whose team is represented by the North Tyrol region, won two gold medals, while the UK’s haul of seven medals included one gold and three silver. Germany, on the hand, took just one silver and one bronze.

Of the 59 countries taking part at WorldSkills Abu Dhabi, 29 went home with a medal. Liechtenstein, the smallest nation competing, won the gold for plastering, while India managed a silver and bronze, with Iran also winning bronze in plumbing.

The depth of China’s success can be measured in the variety of competitions won, ranging from baking and bricklaying to tiling and welding. China's Bia Song also won the Albert Vidal Award for the best competitor, after taking gold in the industrial mechanic millwright skill.


https://www.thenational.ae/uae/gold...he-end-of-worldskills-abu-dhabi-2017-1.668813

Vocational schools are the core of education, teaching kids the skills needed to promote economic development. In this area, I am glad to see that East Asian (NEA, to be exact) countries/regions dominate. The US' absence tells a lot about the quality of their education and the future of their manufacturing. I guess the only way they make up for the scarcity is to import blue-color workers from the third world. But, Trump's policies are not helping in this regard, as well. US needs more immigrants from the Middle East and Africa.

 

[cirr]

China's industrial profits up 22.8 pct in first nine months

2017-10-27 10:50

Xinhua　Editor: Mo Hong'e

China's major industrial firms posted faster profit growth in the first three quarters of this year, the National Bureau of Statistics (NBS) said Friday.

The companies reported a 22.8 percent year-on-year profit increase in the nine-month period, up from 21.6 percent in the January-August period, the NBS said in a statement.

In September alone, profits of major industrial firms rose 27.7 percent year on year, much faster than the 24-percent growth in August, it said.

http://www.ecns.cn/business/2017/10-27/278666.shtml

 

[cirr]

China's tax revenue higher in first nine months

2017-10-27 14:08

Xinhua　Editor: Mo Hong'e

China's tax revenue rose 10.6 percent to 9.92 trillion yuan (1.5 trillion U.S. dollars) in the first three quarters of this year, official data showed Friday.

The growth was higher than the 8.9 percent recorded in the first half of the year, according to figures from the State Administration of Taxation.

The authority attributed the strong tax revenue growth primarily to steady and sound economic growth during the period thanks to the effects of the country's macroeconomic policies.

China's economy expanded by 6.9 percent in the first three quarters, higher than the government target of about 6.5 percent for 2017.

Profits of major industrial firms rose 22.8 percent in the same period, higher than the 21.6 percent recorded in the January-August period, data from the National Bureau of Statistics showed.X In a sign of improvement in the real economy, tax income in secondary industries rose 19.9 percent in the first nine months.

Regionally, tax income from eastern, central and western China grew 7.8 percent, 18 percent and 15.3 percent, respectively.

http://www.ecns.cn/business/2017/10-27/278686.shtml

 

[JSCh]

Yuan-denominated bonds held by overseas institutions is over RMB1 trln
Xinhua Finance in www.cnstock.com
2017-10-26 14:46

Under the background that China’s economy enjoys stable and sound development and RMB’s exchange rate is stabilized gradually, the value of yuan-denominated bond held by overseas institutions is more than 1 trillion yuan.

The yuan-denominated bond held by overseas institutions reached 1,042.152 trillion yuan in September, exceeding 1 trillion yuan for the first time and hitting a historically new high, according to China Central Depository & Clearing Co., Ltd. (CCDC) and Shanghai Clearing House (SHCH).

While the market develops steadily, the non-renminbi sovereign bonds, which haven’t been issued for 13 years, will be launched again. China’s Ministry of Finance (MOF) recently announced that it will issue 2 billion US dollars of dollar-denominated sovereign bonds in the Hong Kong Special Administration Region, including 1 billion US dollars of five-year bonds and 1 billion US dollars of 10-year bonds, according to a roadshow held by the MOF held in Hong Kong yesterday.

Yuan-denominated bonds held by overseas institutions increase for 7 days consecutively

Overseas institutions have bought 257.007 billion yuan of yuan-denominated bonds since this year, and the yuan-denominated bonds held by overseas institutions have increased for 7 months consecutively and were over 1 trillion yuan at the end of September. Data from CCDC and SHCH showed that the overseas institutions held 877.121 billion yuan and 165.031 billion yuan of renminbi-denominated bonds in the two institutions in September, respectively.

In terms of types of bonds, national debts, bonds issued by policy-based banks and negotiable certificate of deposit (NCD) are favored by overseas investors. By the end of September, overseas institutions had 526.174 billion yuan of national debts, accounting for more than half of total national debts. They were followed by bonds issued by policy-based banks. “Foreign insurance institutions and pension funds need investment from long-term and stable financial assets.” Chen Ruihui, financial marketing director of Bank SinoPac (China) told the reporter of Shanghai Securities News (SSN) the bonds issued overseas by domestic policy-based banks were liked by outbound institutions before. Therefore, it is a good choice for investing in sovereign bonds.

Noticeably, the NCDs held by foreign funds are also surging rapidly. They purchased 50.126 billion yuan of NCDs in September and the outstanding NCDs hiked by 57 percent from previous month. “NCDs were issued among banks with shorter duration and higher interest rate. The yield of 6-month NCDs rating at AA+ can reach 4.8 percent, and that of NCDs issued by joint-stock banks can be more than 4.5 percent. Such yield is very attractive to outbound institutional investors.” Chen predicted that the outstanding yuan-denominated bonds held by overseas institutions will continue to pick up under the stable RMB’s exchange rate.

Non-renminbi sovereign bonds favored by many participants

China’s central government issued non-renminbi sovereign bonds to international investors again 13 years later. It is learnt that many banks including Citibank and Hong Kong and Shanghai Banking Corporation (HSBC) will participate in the issuance of 2 billion US dollar of dollar-denominated bonds, and overseas investors are quite passionate in the subscription.

China doesn’t adopt debt rating of international rating companies when it issues the dollar-denominated sovereign bonds this time. “Without applying the rating results provided by international rating companies won’t influence the successful issuance.” Lian Ping, chief economist from Bank of Communications, predicted that it is very likely that the issuing price may be basically the same with the price of sovereign bond rating at AA, and it may be better than the latter. This result will objectively indicate that China’s actual sovereign credit is better than the evaluation of international rating companies.

“Issuing dollar-denominated sovereign bond will help improve overseas market’s confidence in China’s economy and sovereign credit and accumulate sovereign credit to boost international investors to know China better and to invest in China.” In the opinion of Lian, China can continue and form relative sovereign credit data by issuing dollar-denominated sovereign bonds again 13 years later, which will further improve recognition of China’s sovereign credit.

Historical data showed that the MOF issued a total of 6.7 billion US dollars of dollar-denominated national debts during 1993 and 2004. Principal and interests of these bonds have been paid as scheduled by now.

This issuance will help Chinese enterprises raise funds from overseas investors. A head from MOF said previously that “issuing appropriate number of non-renminbi sovereign bonds in international markets which will be traded through secondary market can enrich national bond yield curve, reflect pricing level of sovereign credit, provide important pricing reference for Chinese-funded enterprises to raise funds from international markets, and improve pricing efficiency.” Lian viewed that China issuing dollar-denominated sovereign bonds at a lower cost can reduce costs for Chinese enterprises raise funds overseas by issuing dollar-denominated bonds.

Translated by Vanessa Chen

 

[cirr]

China's producer price up 6.9 pct in September

2017-10-16 10:10 Xinhua Editor: Gu Liping

China's producer price index (PPI), which measures costs for goods at the factory gate, rose 6.9 percent year on year in September, data showed on Monday.

The pace of PPI increase accelerated from 6.3 percent registered in August and surpassed market forecast of 6.4 percent. On a month-on-month basis, the index was up 1.0 percent last month, according to the National Bureau of Statistics.

For the first nine months of the year, PPI climbed 6.5 percent from one year earlier.

http://www.ecns.cn/business/2017/10-16/277168.shtml

China's consumer inflation up 1.6 pct in September

2017-10-16 10:11 Xinhua Editor: Gu Liping

China's consumer price index (CPI), a main gauge of inflation, rose 1.6 percent year on year in September, the National Bureau of Statistics said Monday.

The pace moderated from August's 1.8 percent. On a monthly basis, the index was up 0.5 percent, according to the bureau.

China's producer price up 6.9 pct in September

China's producer price index (PPI), which measures costs for goods at the factory gate, rose 6.9 percent year on year in September, data showed on Monday.

http://www.ecns.cn/business/2017/10-16/277169.shtml

Looking good

China's producer price up 6.9 pct in October

2017-11-09 10:13 Xinhua Editor: Gu Liping

China's producer price index (PPI), which measures costs for goods at the factory gate, rose 6.9 percent year on year in October, data showed on Thursday.

http://www.ecns.cn/business/2017/11-09/280256.shtml

China's CPI up 1.9 pct in October

2017-11-09 09:56 Xinhua Editor: Gu Liping

China's consumer price index (CPI), a main gauge of inflation, rose 1.9 percent year on year in October, the National Bureau of Statistics said Thursday.

The pace accelerated from September's 1.6 percent. On a monthly basis, the index was up 0.1 percent, according to the bureau.

http://www.ecns.cn/business/2017/11-09/280246.shtml

 

[cirr]

China's yuan strengthens to more than 3-month high

2017-12-26 14:08 Xinhua Editor: Gu Liping

The central parity rate of the Chinese currency renminbi (the yuan) strengthened 267 basis points to 6.5416 against the U.S. dollar Tuesday, the highest level since Sept. 13.

The yuan strengthened through the day Monday, reaching its highest level in over three months against the U.S. dollar at the close, according to data of the China Foreign Exchange Trade System.

The country's banking liquidity is at a comparatively high level, and the central bank said it would not launch open market operations Tuesday.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

China will maintain a proactive fiscal policy and prudent monetary policy in 2018 to foster high-quality development while containing financial risks.

"The proactive orientation of fiscal policy will be maintained, while the structure of fiscal spending should be optimized," said a statement released after the Central Economic Work Conference concluded last week.

http://www.ecns.cn/business/2017/12-26/285926.shtml

 

[JSCh]

China makes strides in expanding FTA network
Source: Xinhua| 2017-12-28 14:31:18|Editor: pengying



BEIJING, Dec. 28 (Xinhua) -- China has made strides in expanding the network of free trade areas (FTAs) in 2017.

The country has signed two new free trade agreements this year, taking the total number of FTAs to 16, benefiting 24 countries and regions, said Zhang Shaogang, an official at the Ministry of Commerce.

"The next year will be a year of bumper harvest for FTA development, as there will be negotiations on 10 new FTAs and a joint feasibility study of another 10 FTAs," Zhang said.

Zhang also expects solid progress to be achieved on the negotiations of the Regional Comprehensive Economic Partnership, an FTA scheme of the 10 ASEAN member states and its six FTA partners - China, Australia, India, Japan, the Republic of Korea and New Zealand.

"China has vowed to open wider to the world, and accelerating the development of FTAs will be a crucial part of the country's opening-up," said Bai Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation.

 

[cirr]

PMI boost points to stable economic growth

2018-01-05 08:34 China Daily Editor: Li Yan

China's services sector activity expanded at its fastest pace in more than three years last December, which analysts said signals stable growth in the world's second-largest economy.

The Caixin services Purchasing Managers' Index, a major private survey, rose to 53.9 in December, from 51.9 in November 2017, according to survey results released by Caixin Media on Thursday. It is the highest reading since August 2014. A reading above 50 indicates growth, while a reading below that signals contraction.

In a similar trend, the Caixin Composite PMI, which covers both the manufacturing and services sectors, rose to 53 in December, compared to 51.6 in November, the highest in a year.

New orders and export business have increased strongly, leading to increased employment, according to the results of the services survey. New business increased at its fastest pace since May 2015, the survey shows.

"The growth in total new orders and new export business supported optimism among manufacturers and service providers toward the business outlook for the year ahead," Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, said after the publication of the Caixin report.

"Although China's economic growth continues to face downward pressure, it remains resilient. However, special attention should be paid to whether future policies will become tighter than expected."

China achieved higher-than-expected GDP growth of 6.9 percent in the first nine months of last year, and the whole-year growth could be around 6.8 percent in 2017, according to various economist forecasts, showcasing the global growth engine's economic resilience.

But to ward off potential financial risks and achieve more sustainable growth, last year the country tightened financial regulation, strengthened environmental protection, and moved to strictly control property prices, which had soared in recent years, measures that have also dampened growth.

Analysts have forecast that growth this year could slow slightly. Zhu Baoliang, a senior economist at the State Information Center, said at a recent forum that economic growth could dip to 6.5 percent this year.

http://www.ecns.cn/business/2018/01-05/287047.shtml

 

[JSCh]

China's economic growth remains solid: World Bank
Source: Xinhua| 2018-01-10 11:02:15|Editor: Yang Yi



LONDON, Jan. 9 (Xinhua) -- Growth in China remained solid throughout 2017 and its growth slowdown was well managed, the World Bank (WB) said on Tuesday.

China's trade flows recovered markedly in 2017, with tighter enforcement of capital flow management which "helped ease capital outflows and exchange rate pressures and reverse a reduction in foreign reserves," WB said in its report "Global Economic Prospects" published Tuesday evening.

In the latest report, the bank forecast China's annual economic growth in 2017 at 6.8 percent, a two-basis point increase on its forecast six months ago.

"Currently the growth slowdown in China is very well managed. It is very steady and gradual and the authorities have managed to calibrate it properly," Franziska Lieselotte Ohnsorge, manager of development prospects group at WB, told Xinhua on Tuesday afternoon.

"Reserves are high, government debt is manageable especially compared with advanced economies," said Ohnsorge, who is one of the lead authors of the report of the bank which is headquartered in Washington D.C.

Threats to economic stability are being tackled, said Ohnsorge. "The authorities have already taken a lot of regulatory steps to cool housing markets, to slowly unwind financial vulnerabilities."

"We see the same risk as in other emerging markets, slower than expected growth," she added.

"But the authorities still have ample buffers to absorb or to mitigate any big shock," she noted.

Ohnsorge forecasts that annual GDP growth in China would be between 6 and 6.5 percent over the next decade.

 

[JSCh]

China Focus: China 2017 FDI rises to record high, ODI falls
Source: Xinhua| 2018-01-16 21:22:53|Editor: Zhou Xin



BEIJING, Jan. 16 (Xinhua) -- Foreign direct investment (FDI) in the Chinese mainland grew steadily in 2017, while outbound direct investment declined.

FDI rose 7.9 percent to reach 878 billion yuan (135 billion U.S. dollars), an all-time high, the Ministry of Commerce (MOC) said in an online statement Tuesday.

According to the MOC, 35,652 foreign-funded companies were set up in China last year, up 27.8 percent from a year before.

MOC official Tang Wenhong attributed the steady momentum to a better business environment, structure and distribution of investment.

In 2017, the government eased restrictions and simplified procedures for foreign investment, the official said.

"The structure of foreign investment continued to improve, with strong investment in high-tech services, which rose 93.2 percent year-on-year to reach 185 billion yuan," he said. Some 66.6 billion yuan flowed into high-tech manufacturing, an increase of 11.3 percent.

FDI into central China registered rapid growth in 2017, with total volume up 22.5 percent year on year to 56.1 billion yuan, faster than the other regions.

Last year, FDI in the 11 free trade zones hit 104 billion yuan, up 18.1 percent year on year, much higher than the national average.

Tang expects foreign investment to keep steady in 2018, despite slow growth and an uncertain world economy.

In contrast, Tuesday's MOC data showed non-financial outbound direct investment (ODI) declined in 2017 amid government curbs on investment overseas.

Chinese investors spent a total of 120 billion U.S. dollars in 6,236 enterprises in 174 countries and regions last year, a 29.4 percent drop.

Han Yong, an MOC official, said that "irrational outbound investment has been curbed."

The country's ODI had grown rapidly in recent years, but Chinese authorities have set stricter rules and advised companies to make investment decisions more carefully following a number of inexplicable investments.

In a document released in August, the State Council said overseas investment in areas including real estate, hotels, cinemas, and entertainment would be limited, while investment in sectors such as gambling would be banned. Investment in 2017 mainly went to leasing and commercial services, manufacturing, wholesale and retail, and information technology.

Non-financial ODI to countries involved in the Belt and Road Initiative has been encouraged. ODI in those countries totaled 14.4 billion U.S. dollars, 12 percent of the total, up from 8.5 percent in 2016.

 

[艹艹艹]

China's GDP growth reached 6.9% in 2017
By Xin Zhiming | chinadaily.com.cn | Updated: 2018-01-18 15:09

China's year-on-year GDP growth reached 6.9 percent in 2017, up from 6.7 percent in 2016, marking the first acceleration since 2011, the National Bureau of Statistics (NBS) said on Thursday.

The country registered a 6.6 percent industrial output growth last year, compared with 6 percent in 2016.

Fixed-asset growth was 7.2 percent, compared with 8.1 percent in 2016. Real estate investment growth rose by 7 percent, compared with 6.9 percent in 2016.

Retail sales increased by 10.2 percent in 2017 year-on-year, down from 10.4 percent in 2016, the NBS said.

The Chinese economy has been stable and improving and its performance is better than expected, said Ning Jizhe, head of the NBS, in a statement