News and Reviews Asian Economic Zone

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China to Keep Control of Property Market

Wednesday, December 25, 2013

 

China will continue to control the property market in 2014 while adding supplai land and homes in the cities that experienced a surge in housing prices , according to the housing minister Jiang Weixin China . Home prices in major cities in China continues to set records even though the government has tried to dampen price spikes in the last 4 years . The increase in housing prices that are not controlled can create bubbles and as more and more social unrest inaccessibility of housing prices . However , Beijing also can not be too tight to prevent increases in housing prices due to potentially undermined economic activity .

 

" We will continue to run a tight policy in 2014 and run the appropriate policy , " said Jiang told Xinhua news agency . Comments Weixing is certainly a signal that Beijing would not loosen his attitude to stabilize housing prices in China . Jiang uttered the government will impose different policies for specific cities according to market conditions . Jiang also confirmed that the city is experiencing a surge in housing prices should be a policy of tightening next year

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BOJ Governor : Inflation Goal within Reach

Thursday, December 26, 2013

 

Prime Minister and the Governor of the Bank of Japan has just met this morning to discuss the dynamics of national policy . Both parties agree that the Japanese economy is running on the right track in order to pursue an inflation target of 2% .

 

In a press conference , the governor of the Bank of Japan said that the government satisfied with the results of the agency policy . " I told Abe that Japan is on track to achieve the 2 % inflation target , " said Haruhiko Kuroda told the media crew . He acknowledged that the prime minister Abe explanation listened more than talked .

 

Regardless of the lack of guidance from Kuroda , market participants interpret if a meeting between the government and the central bank contain a certain discourse . The media even claimed Shinzo Abe seeks to suppress the Bank of Japan to ease monetary policy again . Two of the prime minister's adviser , namely Koichi Hamada ( Professor Yale University ) and Etsuro Honda ( Professor Shizuoka University ) purportedly warned Kuroda to react quickly if the increase in the consumption tax from 5% to 8 % will have adverse effect to the economy .

 

In a recent interview with the Wall Street Journal , both economic adviser described some monetary strategies that can be taken by central banks , including the addition portion of asset purchases of government bonds and exchange-traded equity funds . They even saw the bond -buying program could take place in parallel with the chartering asset based mortgage debt .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Mobile Phone Manufacturers American and Korean Giant Challenge

Thursday, December 26, 2013

 

Competition in the mobile phone industry more exciting region in the last year . Not only is dominated by big players like Samsung and Apple , the smartphone market is also enlivened by the manufacturers ' dark horses ' are mostly from China .

 

Welcoming the year 2014 , the company specialized maker of cheap mobile phones from China , Xiaomi , ready to surprise . Not only by bringing new products , the company is said to be ready to embrace the international user community to spread the good reputation of its products throughout the world . Xiaomi will support the activities of cellphone users in internet forums so that they are located in any region can share information . By utilizing the communication between the user , the news spread about the quality of the phone can be faster than just using conventional media such as visual advertising .

 

Xiaomi really serious play in the global handset industry . To realize this dream , the directors should plow even former Vice President of Google's Android in the month of August. Hugo Barra , whose role is to advance the Android over the past half-decade , will resmii his work as Vice President in October Xiaomi yesterday .

 

Xiaomi is the largest smartphone manufacturer in China's sixth ambitious global mobile enliven competition . Named its CEO Lei Jun. often referred to as the ' Steve Jobs of his Chinese - style style because often the founder of Apple Inc. , which is dressed all in black with a combined subordinate denim pants . Apart from that title, one of China's richest people according to Forbes magazine does have great expectations of the companies they lead . Although it can be called a ' baby ' in the mobile market , Xiaomi has a target and a great program , one of which is the best in the Android attract people to enrich the company's business scope .

 

Founded in 2010 , targeting the middle class market Xiaomi armed with mobile phone deals at affordable prices . Company to gain revenue of $ 2 billion in sales last year and report cards even able to skip Apple's sales in the Chinese territory in the second quarter of 2013. Although still less than the Samsung , Lenovo , Yulong , ZTE and Huawei , Xiaomi phone made to contribute 5 % contribution to the total shipments to China . According to IDC research , Xiaomi an opportunity to expand market share in the global handset industry turnover is expected to reach 740.5 billion money yuan ( $ 117.8 billion ) in the year 2017 . Cheap mobile phones last issued by Xiaomi named ' Hongmi ' and successfully sold more than 100,000 units within 90 seconds of launch . The company is now producing a total of 7:45 million units of mobile phones in order to meet public demand .

 

Cheap mobile phone market is still quite large in China and Asian countries , regardless of trend use iOS and Android -based smartphones . Instead of bankruptcy , which belonged to the manufacturers ' underdog ' actually answered the challenge by making intelligent product -based operating systems were both at an affordable price . Mobile 3 artificial Xiaomi Mi series is an example of how competitive Chinese producers in determining the selling price . With the sophistication of a premium class Android phone or iPhone , 3 Mi priced at only half the price of similar products made ​​in famous brands . It is not possible within the next 3-5 years of existence Samsung and Apple in Asia actually harassed by manufacturers cheap mobile phone maker .

[mynameisandhy]

News and Economic Review Zone Asia

 

Face the Investment Bank Asia in the Year 2013 by Period

Thursday, December 26, 2013

 

The rate of economic growth in the region is much faster than the rate of progress that is printed by the developed countries . However, the performance of investment banks weakened to enter into the worst condition since 2008 .

 

Although the bid bond and stock sales welcomed by investors in the last few months of 2013, the numbers are not quite close the decrease in the number of managed fund investment banks . Almost all fund manager clients in the Asia Pacific region , including Japan , experienced a drop in revenue to only $ 11.8 billion this year . It is the lowest level since the financial crisis rocked the world market in 2008 .

 

According to the data provider , Dealogic , the investment banking revenues in the region reached $ 8.5 billion . Income year -on-year is down 10 % and down about a quarter of revenue in 2010 , which touched $ 15.7 billion . On the other hand , the global investment banking revenue jumped to its highest level since 2007 , with the increase in the ratio of 12 % in the United States to $ 36 billion and as much as 10 % in Europe at $ 17.5 billion .

 

The minimal volume of mergers and acquisitions is suspected as the cause of the decline in earnings in 2013 . The number of business cooperation deal is very low compared to usual , so that the business project should be contested by many investment companies . It made the commission earned will be lower .

 

In addition to minimal mergers and acquisitions , sales of new shares also fell drastically . Yet moments into wetlands IPO for investment banks operating in Asia . No one can be blamed for the phenomenon given the sluggishness of Asian investment sentiment in the financial markets are less favorable since the emerging discourse trimming stimulus by the Federal Reserve . The concerns prompted investors to withdraw funds and causing weakening currencies in some countries such as India and Indonesia .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Growth in China Estimate much as 7.6 % in 2013

Friday, December 27, 2013

 

China estimate that their growth will slow to 7.6 % this year , with the increasing challenges that put pressure on the country's traditional growth model which is led by investment spending , according to a statement from the official Xinhua News Agency .

 

Calculation of the increase in GDP for the year 2013 has been included in the report of the State Council , or cabinet , the legislature , and in comparison with the government's target of 7.5 % , in the report by Xinhua yesterday . A rate of 7.6 % will mark the third consecutive annual decline in the expansion rate of growth .

 

" We can not deny to a decline in economic growth , " said Xu Shaoshi , the minister responsible for the national development and reform commission , the legislature in the early explanations on the report , Xinhua said .

 

The State Council document listed indicate the soaring challenge is worsening in hadapai between pollution and social conflict . Xu said that the traditional growth pattern of the state was challenged by rising labor and environmental costs , Xinhua reported .

 

Twenty- seven provinces and cities in China have Rev minimum wage in the year 2013 with an average of 17 % , Xinhua said on Thursday , citing a statement from the Yin Weiming , minister of human resources and social security .

 

GDP release comes amid China's central bank seeks to reduce liquidity crisis in the market for loans between banks , as financial markets are volatile by the second surge in borrowing costs this year . People's Bank of China ( China's central bank ) on two days ago had surgery purchase back again for the first time in three weeks , stepping up efforts to provide the lenders with cash after the biggest surge in interest rates since 2011 that have triggered action selling shares in Chinese companies traded in Shanghai , Hong Kong and New York

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Pension Fund Allocation Shares Added

Friday, December 27, 2013

 

Federation of National Public Service Personnel Mutual Aid Association ( TRC ) has reduced the allocation of bonds and increase the share of the Japanese stock allocation as part of the investment strategy of the company . Japanese pension fund has an investment capacity of $ 75 billion and is one government agency that has been criticized for being too focused with bonds . In November last , Abe government -appointed panel has suggested that pension funds in Japan to review the investment strategies in order to increase the yield for the Japanese population . Japanese pension fund is the world 's leading financial institutions with assets worth $ 2 trillion .

 

KKR 's strategy following the trail made ​​by the GPIF , Japan's largest pension funds with assets worth $ 1.2 trillion . In the month of June, the GPIF has reduced the allocation of bonds and increase the share of stocks in its investment strategy . KKR will reduce the ratio of Japanese government bonds from 80 % to 74 % and increase the share portion of 5 % to 8 % .

 

Meanwhile , the Japanese stock market briefly rose to near 5 -year highs in early Asia . However , profit-taking began to look undermined the performance of the Nikkei . The Nikkei futures are now traded 16125 ; away from daily highs 16245

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

South Korea Cuts 2014 Growth Forecast

Friday, December 27, 2013

 

South Korea cut its growth forecast for 2014 from 4.0 % (target June 2013 ) to 3.9 % . But in its annual economic report , the Ministry of Finance remain optimistic that the economy has remained strong thanks to a solid fiscal strategy and the global recovery climate .

 

For the year 2013 is coming to an end , the economic growth forecast was revised up from 2.7 % to 2.8 % or above record GDP growth in 2012 is only 2.0 % . " The national economy will continue after the inter- quarter growth rose above 3 % in the fourth quarter of this year , " according to a ministry statement . Trend growth in the first half of 2014 will be supported by government capital expenditure , while for the second half of the rate of the South Korean economy will be helped by the recovery of the global climate .

 

Even if there are obstacles that hinder the government's target , it is none other than the dynamics of U.S. fiscal policy and the reduction of monetary stimulus . While the economic slowdown in developing countries are also vulnerable to block the entry of fresh funds into the financial markets and investment . In terms of inflation , consumer prices are expected to rise 2.3 % in 2014, lower than the June projection of 2.8 % . Even so , the rate of the consumer price much higher than the initial estimate of 1.3 % only . The headline inflation currently stands at 2.5 % -3.5 % or below the central bank's target .

 

South Korea 's current account surplus for 2014 is estimated to increase to $ 49 billion above forecasts in June , $ 30 billion . At the end of this year , the final surplus of $ 70 billion predicted translucent .

 

For the employment sector , as many as 450,000 new jobs are expected to open next year . The amount is smaller than the June projection of 480,000 vacancies .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Consumer Prices Jumped Quick Looks Central Efforts Increase In Wages

Monday, December 30, 2013

 

The Japanese businessmen in fiscal will fail in the next to consider the purpose of Prime Minister Shinzo Abe to the wage increases that exceeded inflation , highlighting the risk that the country's recovery will be slow , in the show in a survey of some economists .

 

Cash income workers , which is a benchmark for wages , will rise by 0.6 % in the year starting April 1 , according to the median forecast in a poll of 16 economists in a Bloomberg News . Consumer prices will rise five times faster , increased by 3 % , as rising sales tax for the first time since 1997 , on show in a separate surveu by Bloomberg .

 

Pressure on consumers from the risk of high prices have reduced public support and will transform Abenomics related to retail shopping , except Abe can convince companies to increase wages to mitigate that impact . That at stake is to maintain a recovery in the third largest economy in the world , which plans to expand this year at the fastest pace since 2010 as Abe tries to push the economy out of deflation that has lasted for 15 years .

 

" The wage increase will slow down rather than rising prices at least through 2015 , this is a blow to Prime Minister Abe , " said Yoshimasa Maruyama , chief economist at Itochu Corp. . in Tokyo . " It will take a long time for companies to change their mindset , which is still stuck in the thinking of deflation . "

 

In an interview in Tokyo this month , Abe urged the company to increase wages faster than the increase in cost of living . " For us to come out of the deflation that is very important is the increase in wages , " said Abe on December 6 .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Although Going Slow , China's economy will value the U.S. Approach

Monday, December 30, 2013

 

The growth rate in China increased rapidly in the last decade and a half . Although the trend began to slow down economic performance remains believed to be good next year as a national restructuring program .

 

Value of China's economy is expected to approach $ 21 trillion fantastic figure in eight to nine years. Capitalization amounted to was almost equal to the size of the world's largest economy , the United States . Although the rate of the economy is not as good as 3-4 years ago , remains optimistic growth estimates in future periods . Thus economic estimates published by the National Institute of International Strategy under the Chinese Academy of Social Sciences.

 

This year , the value of the country 's economy is predicted to weaken the bamboo curtain to be about 6 % to 7.5 % . However capitalize additional capital expenditure and the increase in purchasing power of citizens , the nominal gross domestic product likely to penetrate to $ 13.5 billion in 2017 and $ 20.8 trillion in 2022. Estimate does not take into account the effect of the strengthening of the yuan exchange rate . In 2022 , China's economy will contribute as much as 16.1 % of the world's total economic product or disproportionately thin with U.S. contribution of 20.6 % .

 

However, regardless of the positive projections about economic capitalization , China's annual growth is expected to fall to around 6 % of the current level of 7.5 % in the next ten years . The main reason behind these estimates is the high population of elderly citizens . The population of productive age population will reach its peak a few years before declining slowly .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's local government debt in Figures Up Fantastic to Rp36 thousand trillion

Tuesday, December 31, 2013

 

Surprising fact emerged from China in earlier this week . Country's National Audit Office stated that the amount of debt local governments jumped up to the fantastic figure .

 

The National Audit Office said in a statement called the total debt to be paid by the various local governments amounted to 17.9 trillion yuan ( $ 3 billion ) , equivalent Rp36 thousand trillion ! Figures compiled in June, it was much larger than the total debt in 2010 that ' only ' 10.7 trillion yuan . Economic actors began to worry that the magnitude of impact on local government debt crisis in the cash market .

 

Regardless of the magnitude of the burden of government payments , the audit firm claims the number was still under control . Government assesses the total local government debt is still smaller than the developed countries like USA , UK , France , Japan and Spain . Even if there are no other scary thing is the rapid rate of swelling the debt. Infrastructure development trend of recent years is forcing the government to borrow more money . On the other hand , prefer the government to borrow money ( credit ) raises its own concerns because of its history , a variety of financial crisis originated from the instability of the credit markets .

 

China is now challenged to eliminate dependence on loans . The central government has done little much anticipation to counteract the volatility of funds in the market this year . Authorities tested the durability of the financial system by pumping new money worth nearly $ 50 billion just in case . Even so , many people said that the government do its work late because they should be able to do it more quickly so that the potential cash shortages can be minimized .

 

Broadly speaking , economic growth slowed in the bamboo curtain . China is predicted to record 7.6 % rise in the value of GDP for the period 2013, slightly above the initial target of the central government . However, when compared with previous years , the growth rate markedly lower . In 2010 , China recorded a GDP growth of 10.4 % , then 9.3 % in 2011 and 7.8 % in the last year .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Barclays : Experiencing China's Potential Systemic Disorders

Tuesday, December 31, 2013

 

In the middle of the slow rate of the economy in the last two years , the Chinese government still holds the potential for big problems . The amount of local government debt in the last year the risk of creating turmoil in the financial system of Asia 's largest economy .

 

Financial institutions began to criticize poor credit management opportunities in China warning of the emergence of new problems . One of the institutions that criticized the swelling debt in the structure of China's area is Barclays . In a release this morning analysis , Barclays warned of huge risks for the short and medium term periods . In the midst of the lack of supervision of the banking climate , the economic slowdown and financial market liberalization , the risk of a systemic breakdown in the financial system go bigger .

 

" Fiscal policy should be tightened next year despite the central government had to be pro - active lately, " he explained in his research at Barclays . According to these financial institutions , the budget deficit is expected to rise from 1.2 trillion yuan this year to 1.3 trillion yuan in the next year .

 

Barclays statement is a response to the latest data release by the government audit office . The National Audit Office said in a statement called the total debt to be paid by the various local governments amounted to 17.9 trillion yuan ( $ 3 billion ) , equivalent Rp36 thousand trillion ! Figures compiled in June, it was much larger than the total debt in 2010 that ' only ' 10.7 trillion .

 

Regardless of the magnitude of the burden of government payments , the audit firm claims the number was still under control . Government assesses the total local government debt is still smaller than the developed countries like USA , UK , France , Japan and Spain . Even if there are no other scary thing is the rapid rate of swelling the debt. Infrastructure development trend of recent years is forcing the government to borrow more money . On the other hand , prefer the government to borrow money ( credit ) raises its own concerns because of its history , a variety of financial crisis originated from the instability of the credit markets .

 

China is now challenged to eliminate dependence on loans . The central government has done little much anticipation to counteract the volatility of funds in the market this year . Authorities tested the durability of the financial system by pumping new money worth nearly $ 50 billion just in case . Even so , many people said that the government do its work late because they should be able to do it more quickly so that the potential cash shortages can be minimized .

 

Broadly speaking , economic growth slowed in the bamboo curtain . China is predicted to record 7.6 % rise in the value of GDP for the period 2013, slightly above the initial target of the central government . However, when compared with previous years , the growth rate markedly lower . In 2010 , China recorded a GDP growth of 10.4 % , then 9.3 % in 2011 and 7.8 % in the last year .

[Guest mahdka]

Nice job!!.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

The Chinese government debt soars , but manageable

Wednesday, January 1, 2014

 

China revealed total government debt and the debt risk remained under control . Where China's total public debt to GDP is about 53.3 percent , with 31.5 percent and local government debt is 21.8 percent of the central government .

 

The National Audit Office ( NAO ) of China said , after two months of national audit in August and September , the Chinese government has recorded a total direct debt CNY 20.7 trillion ($ 3.4 trillion ) at the end of June , up 8.6 per cent of CNY 1.63 trillion since the end of 2012 .

 

Total debt is guaranteed by the government at various levels by the end of June amounted to CNY 2.93 trillion . In addition , the Chinese government may still have some debt obligations of CNY 6.65 trillion .

 

When specified , the central government direct debt at the end of June amounted to CNY 9.81 trillion, up 4 percent of CNY 375 billion at the end of 2012 . Where , nearly 84 percent of them in the form of treasury bonds , loans from international financial institutions and foreign governments account .

 

While the rest of CNY 10.89 trillion which is the local government borrowing . This number increased by 13 percent or CNY 1.25 trillion since the end of 2012 .

 

Debt guaranteed by the central government amounted to USD 260 billion , while the debt is guaranteed by the local government of CNY 2.67 trillion .

[mynameisandhy]

News and Economic Review Zone Asia (Hongkong)

 

Hong Kong Trade Deficit Rises Thin

Wednesday, January 1, 2014

 

In November , Hong Kong's trade deficit increased slightly to EUR 44.6 billion from EUR 44.1 billion USD in the same period the previous year . Where an annual basis , Hong Kong's exports recorded an increase of 5.8 percent , driven by good sales to Asia and the United States .

 

In November 2013 , the value of total exports of goods increased by 5.8 percent over the previous year to $ 325.5 billion after rising 8.8 percent year on year in October 2013.

 

The value of imports of goods increased by 5.2 percent over the previous year to $ 370.1 billion in November 2013 , after rising 6.3 percent year on year in October 2013 .

 

When specified , the total exports to Asia as a whole grew by 4.3 percent year on year . In this region , the increase in exports occurred to Vietnam ( 20.5 percent ) , South Korea ( 17.9 percent ) , the Philippines ( 5.9 per cent ) , India ( 5.0 percent ) , and mainland China ( 3.7 percent ) .

 

Apart from destinations in Asia , is also an increase in other countries outside of Asia , namely the United States ( 2.0 percent ) . Meanwhile, the decline in export shipments occurred in Germany ( 7.7 percent ) and Britain ( 0.6 percent ) .

 

The increase is the case for the delivery of telecommunication products and electronic equipment by 18 percent to $ 10.5 billion , machinery , equipment , and electrical components rose 11 percent to $ 9.3 billion , and non - metallic mineral manufacturing rose 33.3 per cent to USD 3.3 percent .

 

During the same period , Hong Kong also experienced an increase in imports of major supplier countries , particularly Malaysia ( 26.1 percent ) , United States ( 22.1 percent ) , Taiwan ( 11.1 percent ) , South Korea ( 10.9 percent ) , Thailand ( 10.4 percent ) , and mainland China ( 5.6 percent ) .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Exports Non-oil to China Rise

Thursday, January 2, 2014

 

The development of non-oil exports to China according to reports the Central Bureau of Statistics (BPS) recently, showed stronger performance as indicated by the addition of the non-oil exports to that country. BPS announced that in October to reach a value of 1835 million U.S. Dollars.

 

Meanwhile earlier in non-oil exports to these countries only reached a value of 1621.4 million U.S. dollar. Thus the performance of non-oil exports in the period gained by + 213.6 million U.S. dollars, or improved by + 13:17%.

 

The most recent data from the Central Bureau of Statistics also show that non-oil exports from the beginning of this year until October in total reached 16706.2 million U.S. Dollars. The report showed a decrease of -114 million U.S. dollars, down about -0.67%, whereas in the same period last year only reached a value of 16820.2 million U.S. Dollars.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Avoid Bankruptcy , Government of China invited Roll Over Debt

Friday, January 3, 2014

 

The Chinese government finally gave the green light to local governments ( LGs ) to issue bonds as a way to keep them from bankruptcy . Based on the statement of the National Development and Reform Commission , raising fresh funds through the sale of debt securities are considered as the best way at this time .

 

Party government that invited centers have mounting debt to roll over or new borrowing . Literally, roll over can be interpreted as a re-investment in assets that have matured through the issuance of new debt . So, the government will use capital from the issuance of new bonds to pay off old debt . Thus, the government does not need to bankrupt due to run out of financial resources to operate .

 

Central government was very allergic to the discourse of the new bond issue to finance the old debt . Beijing parties fear that the debt bubble burst at any time in some areas because of the way the roll over is often regarded as a shortcut that is misleading .

 

As is known , a surprising fact emerged from China in earlier this week . Country's National Audit Office stated that the amount of debt local governments jumped up to the fantastic figure . The National Audit Office said in a statement called the total debt to be paid by the various local governments amounted to 17.9 trillion yuan ( $ 3 billion ) , equivalent Rp36 thousand trillion ! Figures compiled in June, it was much larger than the total debt in 2010 that ' only ' 10.7 trillion yuan . Economic actors began to worry that the magnitude of impact on local government debt crisis in the cash market .

 

Regardless of the magnitude of the burden of government payments , the audit firm claims the number was still under control . Government assesses the total local government debt is still smaller than the developed countries like USA , UK , France , Japan and Spain . Even if there are no other scary thing is the rapid rate of swelling the debt. Infrastructure development trend of recent years is forcing the government to borrow more money . On the other hand , prefer the government to borrow money ( credit ) raises its own concerns because of its history , a variety of financial crisis originated from the instability of the credit markets .

 

China is now challenged to eliminate dependence on loans . The central government has done little much anticipation to counteract the volatility of funds in the market this year . Authorities tested the durability of the financial system by pumping new money worth nearly $ 50 billion just in case . Even so , many people said that the government do its work late because they should be able to do it more quickly so that the potential cash shortages can be minimized .

 

Broadly speaking , economic growth slowed in the bamboo curtain . China is predicted to record 7.6 % rise in the value of GDP for the period 2013, slightly above the initial target of the central government . However, when compared with previous years , the growth rate markedly lower . In 2010 , China recorded a GDP growth of 10.4 % , then 9.3 % in 2011 and 7.8 % in the last year .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Reduce Debt Habits , Credit Access difficult for the Chinese government

Monday, January 6, 2014

 

The shadow of the mounting debt will still overshadow China's economy during the year 2014. The government began to take preventive policies to reduce the ' hobby ' to borrow money on credit by businesses and local governments ( LGs ) via the issuance of debt .

 

After the financial crisis and a half decades ago , the Chinese government opened the access of funds into the financial system on a large scale . Outside investors who lost land investment in America and Europe are happy to put their money in China , the country with the most impressive growth in the world economy . Now the situation is different . Authorities are now actually close the access of capital in one by one to discipline financial market participants . Companies , and even the local government , which in the last three years could at will reap funds from the issuance of debt , are now required to be more credible in managing finances respectively .

 

The central government earlier this year to impose higher interest rates for financial assets based debt . Companies should think twice before issuing new debt because of the amount of interest they pay to investors becomes larger . Benchmark bond interest for debt securities with a tenor of 5 years quality AAA already rocketed to record highs ( 6:36 % ) on 31 December. In fact, in mid-May , the benchmark bond rate is still at a level of 4.51 % ( data from the National Interbank Funding Centre ) .

 

A total of 35 companies reported plans to postpone the sale of debt securities worth a total of 59 billion yuan ( $ 9.75 billion ) in the last two months ( Reuters ) . It includes good news , especially if you consider the amount of accumulated debt of all sectors are predicted to penetrate the percentage of 218 % of the total national gross domestic product in 2013. In other countries that have experienced similar things , swelling of the ascertained debt has triggered the financial crisis .

 

Specifically for local governments , is likely to be made more lenient rules that access the old debt payment can be done by taking money from a new bond issue ( roll over ) . Last week the central government has given the green light for local authorities to take on debt again , because they need money to pay for dependents who will be due . With given access to raise money from investors , governments are expected to avoid bankruptcy .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Not Just Debt , Bad Debt China also Shadowed

Tuesday, January 7, 2014

 

The Chinese government this week issued a policy to reduce the negative risk of disruption to the economy of the banking system . But it is still not enough due to potential bad loans given increasingly prominent .

 

The government yesterday issued new rules to strengthen the regulation of credit risk . Guide about lending to banks that tightened capital flows remain healthy in the middle of the swelling national debt . Even so , it does not mean that is the main concern of non - performing loans ( NPL ) or bad credit can be eliminated instantly . If the government failed to anticipate, then the bamboo curtain country could face a crisis similar to the East Asian countries in 1997 , although believed to be smaller in scale .

 

" In 1998 , approximately 40 % of bad loans . Now remain so , though not as large as it is , " said economist Andy Xie told CNBC . Xie worried that the financial industry , particularly credit , became the source of a new crisis because of the amount of bad loans in that sector alone has exceeded 10 trillion yuan . The quality of the borrowing portfolio in China is getting worse amid high arousal and investment business .

 

The shadow of the mounting debt will still overshadow China's economy during the year 2014. The government began to take preventive policies to reduce the ' hobby ' to borrow money on credit by businesses and local governments ( LGs ) via the issuance of debt .

 

After the financial crisis and a half decades ago , the Chinese government opened the access of funds into the financial system on a large scale . Outside investors who lost land investment in America and Europe are happy to put their money in China , the country with the most impressive growth in the world economy . Now the situation is different . Authorities are now actually close the access of capital in one by one to discipline financial market participants . Companies , and even the local government , which in the last three years could at will reap funds from the issuance of debt , are now required to be more credible in managing finances respectively .

 

The central government earlier this year to impose higher interest rates for financial assets based debt . Companies should think twice before issuing new debt because of the amount of interest they pay to investors becomes larger . Benchmark bond interest for debt securities with a tenor of 5 years quality AAA already rocketed to record highs ( 6:36 % ) on 31 December. In fact, in mid-May , the benchmark bond rate is still at a level of 4:51 % ( data from the National Interbank Funding Centre ) .

 

A total of 35 companies reported plans to postpone the sale of debt securities worth a total of 59 billion yuan ( $ 9.75 billion ) in the last two months ( Reuters ) . It includes good news , especially if you consider the amount of accumulated debt of all sectors are predicted to penetrate the percentage of 218 % of the total national gross domestic product in 2013. In other countries that have experienced similar things , swelling of the ascertained debt has triggered the financial crisis .

 

Specifically for local governments , is likely to be made more lenient rules that access the old debt payment can be done by taking money from a new bond issue ( roll over ) . Last week the central government has given the green light for local authorities to take on debt again , because they need money to pay for dependents who will be due . With given access to raise money from investors , governments are expected to avoid bankruptcy .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Shinzo Abe stretcher Wage Increase Workers in Japan

Wednesday, January 8, 2014

 

Outlook for the Japanese economy is starting to recover last year after stagnating for two decades , will be brighter with the " shock on wages , " according to Prime Minister Shinzo Abe . In an editorial released at the site of the World Economic Forum and Project Syndicate This week , Abe concluded after a meeting between government , business and labor leaders to discuss strategy in which the rate of wage growth leads to economic growth more strongly with the level of optimism .

 

Japan is the world's third largest economy , has been in deflation and low economic growth rates over the 2 decades . Outlook Japan last year thanks to improved monetary and fiscal stimulus aggressive . To boost long- term growth outlook , the Tokyo must maintain a growth rate of wages which last a long time to be out completely from deflation and low economic growth rate .

 

" The pressure of deflation in Japan there have been more than a decade long ... I launched what observers called a ' Abenomics , ' because only in this country nominal wage figures are still in the negative for a long time , " said Abe . " Workers in Japan have lost about 34.3 trillion yen ( 324 billion dollars ) in the past decade and a half or more than the annual GDP of Denmark , Malaysia , or Singapore . Trend is reversed only if the Japanese economy can continue to improve in the long term , " he added .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Vehicle Sales in China Rise 13.9% on Year 2013

Thursday, January 9, 2014

 

The level of vehicle sales in China rose as much as 13.9% last year from a year earlier, beating expectations and closed by an increase of 17.9% in December, according to the China Association of Automobile Manufacturers (CAAM) on Thursday. These results far exceeded the expectations of the industry group to increase by 7% to an annual rate, marking a rebound solud the world's largest auto market after stagnating for 2 years.

 

The recovery helped in part by improved sales levels of Japanese cars, which had plummeted in China in 2012 due to anti-Japanese sentiment triggered by a territorial row between the two countries. The rate of growth in vehicle sales in China fell in 2011 and 2012 and then to 2.5% and 4.3%, after growing for a decade when ever rising automotive demand levels by 30 to 40% per year.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

The level of China's exports under estimate

Friday, January 10, 2014

 

The growth rate of China's export sector was under-estimated in December, while the increase in the level of imports beat projections , according to Chinese government data today . The level of shipments abroad rose 4.3 % from last sethaun , according to the General Administration of Customs today in Beijing . Compared with forecasts for a growth rate of 5 % . The level of imports rose by 8.3 % , making a narrower trade surplus is forecast at 25.64 billion .

 

This data outlook worsen the world's second largest economy in the fourth quarter after reporting a decline in the manufacturing and services sector index in December and decreased to 22 consecutive months in the producer price index , the longest decline since the Asian financial crisis . Bureau of Statistics will release data on gross domestic product for the fourth quarter later on January 20 . Analysts expected export growth rate will be in the range of 0.5 % to 9 % , while the level of imports is expected to rise by 5 % , and the trade surplus is estimated at the level of 32.15 billion dollars .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Machinery Orders Rise estimated

Monday, January 13, 2014

 

A Reuters survey showed the main indicator of capital spending in Japan is expected to grow at a faster pace in November , amid signs of increased investment by firms to meet domestic demand .

 

Meanwhile Japan's current account deficit is expected to widen in November from the previous month , but economists expect the balance sheet should be returned to surplus quickly because the income of large investments outside Japan .

 

Japan's core machinery orders are expected to rise 1.2 % in November from the previous month , according to 26 economists polled by Reuters . This figure will be higher than 0.6 % growth in October . While compared to a year earlier , core machinery orders up 12.1 % .

 

The government and the central bank holds capital expenditure as an important component of economic growth because it can spur job creation , which can increase wages and consumer spending . Japan's core machinery orders data will be released on Thursday .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Supervision IPO process in China Tightened

Monday, January 13, 2014

 

China's capital market regulator , the China Securities Regulatory Commission ( CSRC ) has announced new measures to tighten oversight of the Initial Public Offering ( IPO ) . CSRC will launch an investigation and examination of the course of the IPO .

 

In the control measures as reported by the China Economics major issuers and underwriters who conceal information during the public expose suspension of the issuance of shares will be subject to penalties if they even found an illegal act .

 

In addition to the supervision of issuers and underwriters should major publishing timely investment risk report at least once a week, and for three weeks if the price earnings ratio ( PE ratio ) of the bid price or ceiling price exceeds the average PE ratio of peer companies in the market secondary recorded .

 

The investment risk report should mention the difference between the issuer and similar companies and the impact of the assessment , and the signal / warning investors of risks. In the announcement also CSRC will conduct an examination of the offline investors bidding procedures where the infringement procedure will be recorded and announced daily on the blacklist .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Bond Yields Rise In Central Stock Decline

Tuesday, January 14, 2014

 

Japanese bond yields on the 10 - year-old headed the largest gain in five months after the stock market 's slide that has increased the demand for the relative safety of government bonds .

 

Benchmark bond yield fell to 0.65 % level , at least in almost three weeks , after Treasury yields dropped for the last two days in the middle of the lower results than expected U.S. jobs data which is likely to weaken the case for ending the Federal Reserve's purchase program assets this year . Japanese bond yields rose after the Bank of Japan to buy bonds as much as 900 billion yen ( $ 8.7 billion ) on the market today in his fourth surgery this month .

 

" Purchases are doing great in the bond market amid a decline in the stock market , " said Daisuke Union , chief analyst at Sumitomo Mitsui Banking Corp. in Tokyo . " The Fed probably will not hesitate to reduce bond purchases this month . "

 

Japanese bond yields on the 10 - year dropped by 4 ½ basis points to 0.65 percent today in Tokyo based on data from the Japan Bond Trading Co. . That would be the biggest decline on the basis of closing since August 5 . One basis point is 0.01 percentage point .

 

5 -year bond yield fell 2 basis points to 0195 percent , after hitting a 12:19 percent , a level seen at least on December 12 . And for the yield on 20 - year bond fell as much as 3 basis points to 1.505 percent .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Loan Growth Slows In Surging Middle Reserves

Wednesday, January 15, 2014

 

Value measure widely in the amount of new loans in China fell in December while the growth of the money supply and new yuan loans trailed estimates amid cash crisis and the government's efforts to limit speculative borrowing .

 

1:23 as the aggregate amount of financing trillion yuan ( $ 204 billion ) , the People 's Bank of China said today in Beijing . That compared with a total of 1.63 trillion yuan in the previous year . China's foreign exchange reserves , which is the largest in the world , rose to a record high at $ 3.82 trillion at the end of December from $ 3.66 trillion in November .

 

Record decline in new loans in the second half is set to limit the rate of economic expansion this year as policy makers focus on controlling financial risks and implement widespread reforms that has never happened since 1990 . China has debt buildup poses a comparison against Japan prior decade ago and at the start of the financial crisis in Asia .

 

" Preview the future is to slowing credit growth , " said Yao Wei , a China economist at Societe Generale SA in Hong Kong . " Central bank has intervened in a very large scale , and clearly there is a strong pressure for the yuan to rise , " he added , in commenting on the size of China's foreign exchange reserves .

 

New yuan loans as much as 482.5 billion yuan in December and M2 money supply rose to 13.6 % from a year ago , the central bank said .

 

Analysts surveyed by Bloomberg projected aggregate financial financing at 1:14 trillion yuan , a new local currency loans as much as 570 billion yuan , and the growth of the money supply as much as 13.9 % , based on the median estimate