China's per capita GDP expected to reach $10,000 by 2020

[TaiShang]

RMB daily trading band may widen to 3%:economists
(Xinhua)Updated: 2015-07-28 09:06



BEIJING - Economists predict China will soon expand the daily trading band of renminbi, orthe yuan, to 3 percent after a recent promise for a more flexible exchange rate.

The State Council, or China's Cabinet, announced on July 24 that it will broaden the yuandaily trading range but did not disclose more details or the timeline.

Currently Chinese banks can exchange yuan at the foreign exchange (FX) spot market at 2percent above or below the central parity rate against the US dollar announced by the ChinaForeign Exchange Trading System each trading day.

Liang Hong, a macro analyst with CICC, wrote in a research note the plan is likely to beimplemented within the next 2 months by widening the band to 3 percent around the fixingrate.

If confirmed by the central bank, the move will mark an important step to let the market play alarger role in determining the yuan's relative prices, Liang said.

Giving out a similar forecast, a report of Huatai Securities noted the action showed China hasbegan hastening its financial reform in response to the vulnerability of a financial systemexposed by the volatile equity market.

China takes a gradual and steady pace in raising its currency's daily trading limit, from 0.3percent in 1994 to 0.5 percent in 2007 and 1 percent in 2012 to the latest 2 percent in 2014.

Both institutions believe a widened trading band will be a boon to the yuan's inclusion into thecurrency basket of the Special Drawing Rights (SDR) of the International Monetary Fund(IMF).

Liang said the move will reduce the technical barriers, while Huatai Securities thought it isanother step towards the liberalization of the currency and showed a positive signal thatChina will continue to push forward reforms.

The IMF is conducting its five-year review of the SDR basket this year and will decide whetherto include the yuan into its basket this fall.

The yuan appreciated by more than 30 percent after the central bank loosened its grip on theexchange rate in 2005, and analysts believe the value of the yuan has reached equilibrium.

The central parity rate of the yuan stood at 6.1176 against the US dollar on Monday.

Liang said policymakers are still cautious when reforming FX.

"China's financial markets, especially its FX market, remain underdeveloped and do not seemwell-prepared for even greater exchange rate fluctuations," Liang said, "the People's Bank ofChina (PBOC) may not let the dollar peg go any time soon."

However, "an increasingly market-based exchange rate regime implies that the PBOC willgradually withdraw from FX interventions." Liang added.

Analysts expect the yuan's exchange rate may stay on the weak side in the short term afterthe band widening but will not fall into a losing streak in the long run.

 

[Bussard Ramjet]

In 2008, the whole world believed that US stock may crash again like in 1933, thats why every one panic and tried to cut loss. But US didnt crash, so, the stock of the world go up again.

But things r different for CN now. US r trying all ways to bring CN economy down, US want CN economy collapse so CN cant take No 1 pos. from US. So, this time, if your stock go down, it never can go up again, thats the reason why your Govt.try to do everything they can to stop the crash

Why can't everyone just stop conversing with this stupid person. Let him live with his only hope of China collapsing.

 

[dy1022]

Why can't everyone just stop conversing with this stupid person. Let him live with his only hope of China collapsing.

Never Mind , haha...

 

[Kyle Sun]

Why can't everyone just stop conversing with this stupid person. Let him live with his only hope of China collapsing.

I laugh the moment I read his post.

Now you know the feeling of CN member here.

And be kind ! Man ! Do not break his day dream which never comes true.

He lives on it.

 

[Lure]

Hey please somebody ban this @NiceGuy troll. His nonsense makes it hard for me to follow @TaiShang important news collections about Chinese economy. Unlike this troll some of us actually come here to discuss in Civil manners and get information.

 

[cnleio]

OKay, OKay ... pls stop trolling, whatever troll here nothing can stop Chinese reaching the Per Capita GDP 10,000 USD before 2020(within next 5 years), just save our time and do ur best to help urself motherland development.

List of Chinese administrative divisions by GDP per capita

@NiceGuy, just find urself compared with ur neighour province of China: GuangXi ... where is the Vietnam GDP & GDP per capita ?! TROLL NONSENSE

List of countries by GDP (nominal)
China GuangXi province GDP:
1,567,297 million RMB == 255,26 million USD (1 USD = 6.14 RMB)

Vietnam GDP:

 

[sweetgrape]

Hehe, you are really a idiot, even learn much from China, still that fool.

I guess, next, you will say the source is uncredible.

China: GDP per capita, check left 5th.
Second picture.
中国第三次经济普查历年GDP修订情况表 - notheal的日志 - 网易博客

Vietnam: GDP per capita, check left 13th.
越南历年国内生产总值及人均生产总值（1970-2013） - notheal_2012的日志 - 网易博客

 

[Place Of Space]

I guess, just now, you received a warning, right? Now we will teach you how to behave like a human being, dog.

My bro, you just delete the last word, the rest content are not bad.

 

[Zhang Fan]

there's no need to wait until 2020,estimately Chinese income per capita will reach 8150$ by the end of 2015,with an average growth of 7% annually,in 2018 we'll get that done

 

[opruh]

China's poorest province is probably richer than Vietnam, poor Vietnamese trolls.

 

[TaiShang]

Neo-con nonsense on China's economy
July 29, 2015
The Chinese economy grew by 7 percent in the first half of this year. When comparable American GDP figures are published later this week, it will be seen that China's economy is growing twice as fast as the U.S. Yet, despite this obvious reality, a strange campaign is underway in sections of the international media declaring China's economy is in "deep crisis." We need to understand the reasons for this distortion.

First, to avoid misrepresentation, it should be clarified that leading international analysts are presenting factual studies of China's economy. For example, in the Financial Times, Goldman Sachs' former chief economist Gavin Davies, a leading analyst of the global economy, noted an increase in China's growth since the first quarter. Using the Fulcrum "nowcast" model -- a method of predicting current GDP based on correlations of various current data -- Davies noted: "Chinese activity has risen to 7.9 percent from the low point of 5 percent earlier in the year. This rebound has followed… a major shift toward reflation in macroeconomic policy in the second half of April."

Similarly, Ian Bremmer, president of Eurasia Group, America's best known political-risk consultancy, wrote an analysis for Time magazine with the self-explanatory title "No, China Is Not in an Economic Meltdown." Regarding international discussion of China's share market, he declared: "China's government has tools it can use to protect the market that Washington doesn't have."

But despite these statements, certain media sources have launched a concentrated campaign claiming China is in deep crisis. Bloomberg, in particular, has played a key role in promoting a claim that events on China's share markets threatened the stability of the entire world economy. The character of these stories is clear from their headlines, for example, "If China Isn't a Global Risk, What Is?" and "The Chinese Stock Meltdown That Makes the Greece Saga Look Trivial." Bloomberg highlighted claims by U.S. hedge fund manager Paul Singer that China faced a situation "way bigger than subprime [mortgages]" -- the financial meltdown leading to the 2008 international financial crisis.

The Wall Street Journal (WSJ) carried similar articles with headlines such as "China's Stock Plunge Is Scarier Than Greece."

Factually, such claims are pure nonsense. The argument China faces economic problems comparable to Greece is ridiculous. The latter is a country in which every bank was closed for weeks! No evidence was presented, nor could be presented, that China faced a financial crisis comparable to the U.S. 2008 subprime crash -- which virtually bankrupted the entire U.S. financial system and plunged the world into recession. Recent events on China's shares market do not even remotely approach in scale such seismic financial events as Greece, let alone the US sub-prime mortgage crisis. As already noted, China's economy is growing more than twice as fast as the U.S. So, facing these objective facts, why are such entirely inaccurate stories appearing?

The answer can be found by examining their editorial lines. Bloomberg and the WSJ strongly support Prime Minister Shinzo Abe's policy to remilitarize Japan and confront China -- a Bloomberg editorial declaring "Japan Is Right to Ramp Up Its Military" and one in the WSJ declaring "Full marks to President Obama for removing any ambiguity about whether the U.S. is treaty-bound to defend Japan's Senkaku Islands [Japan's name for the Diaoyu Islands]."

Bloomberg criticized the U.S. nuclear deal with Iran, with an editorial entitled "Obama's Unsatisfying Answer on Iran," while a similar WSJ editorial was headlined "The Iranian Inspections Mirage." Bloomberg and the WSJ seemingly are following a "neo-con" agenda.

The WSJ also specializes in articles regarding a supposed "Coming Collapse of China" -- to cite the title of Gordon Chang's 2001 book typifying the genre. In one analysis in the WSJ this year: "Washington should start paying attention if it wishes to avoid being surprised by political earthquakes in the world's second-largest economy." A recent lengthy WSJ essay was headlined "The Coming Chinese Crack-up." Yet, repeated predictions of China's "collapse" have failed to materialize over the decades in which they have been put forward.

For businesses, understanding this reality is crucial. It is impossible to cheat large scale economic processes. Businesses acting on such internationally inaccurate information lose large sums of money or give openings to competitors. George Soros lost a billion dollars because he was misled into supporting pro-Western groups during Russia's privatizations. Some Western construction equipment manufacturers left China's market to their rivals for years because they were advised for political reasons to prioritize India instead. More generally, readers should understand that Bloomberg and WSJ are not following standards of objective journalism but a game of carrying out a political attack on China in the form of factually ludicrous economic articles.

 

[Beidou2020]

Why are propaganda mouthpieces Bloomberg, Wall Street Journal, New York Times, Washington Post still allowed to operate in China?

 

[MAJESTICAL]

Thats just awesome...Congrats China

 

[Zhang Fan]

Why are propaganda mouthpieces Bloomberg, Wall Street Journal, New York Times, Washington Post still allowed to operate in China?

they have been doing that for dacedes wishing things about China could go as they project,they seem to never got tired of setting up sad scenarios for us and getting ready to cavort at them,maybe they are just a bunch of cheap tabloids selling arrogance for living and attracting the eye-balls of ppl grudging to see China rising,screw it,let them operate and say whatever the biased "analyzations" overwhelmingly cursing China they want to,you should have some faith in the judgement of our own people,peace!

 

[yunfei chen]

they have been doing that for dacedes wishing things about China could go as they project,they seem to never got tired of setting up sad scenarios for us and getting ready to cavort at them,maybe they are just a bunch of cheap tabloids selling arrogance for living and attracting the eye-balls of ppl grudging to see China rising,screw it,let them operate and say whatever the biased "analyzations" overwhelmingly cursing China they want to,you should have some faith in the judgement of our own people,peace!

你跟他吵什么，他只是内心空袭兼妒忌

我们要少说话，多做事！
我非常看好习大大，在他的带领下
我个人估计2030年左右，我们将重现我大天朝盛世