News and Reviews Asian Economic Zone

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News and Economic Review Zone Asia (China)

 

The city government of China agreed relieving Property Rules

Friday, August 29, 2014

 

Officials of the European Central Bank Ewald Nowotny worried about the eurozone economy, which it says shows a poor outlook signals. Asked about inflation and unemployment, he said "I am also worried. What we have achieved today is not a great success. We estimate a recovery in the euro zone and we have to have a better 2014 than 2013, but still weaker than expected." The ECB is not likely to take new policy measures next week except August inflation data released on Friday showed the euro zone sank to the significant deflation, ECB sources said.

 

Nowotny declined to discuss monetary policy approach, related to the quiet period ahead of ECB policy meeting next week. "I can not give exact figures forecast the euro zone according to the ECB projections next week, but it's no secret that the economy is likely to have a poor outlook," he said on Thursday night. He said he expects the ECB will use the loan tenure of 4 years will be available from next month for a trigger level of bank loans.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese vehicle Failing to host at Home

Monday, September 1, 2014

 

The Japanese economy is still sluggish despite the government released a series of monetary stimulus since last year. Consumer purchasing power is still very low and the prices do not go up terkerek.

 

Weak spending power of Japanese citizens still continues until August. This indication is reflected in a decrease in sales of motor vehicles both cars, trucks and buses as much as 0.5% compared to the volume of sales in July 2014 Reduced consumer transactions in the automotive sector is the second year in a row, continuing a decline that occurred in July.

 

Japanese automotive product sales in the country amounted to 206 606 units or less than the previous month's data. The result of this automotive sales data can be used as a reference to the results of the next consumer spending data. Vehicle sales report is the first spending data are released every month.

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News and Economic Review Zone Asia (China)

 

China Service Sector Activity Rises in August

Wednesday, September 3, 2014

 

Chinese service sector activity showed an increase in August, is inversely proportional to the activity of the manufacturing sector the second largest economy in the world. The data from the Chinese government showed service sector activity index rose to 54.4 from 54.2 in July at. While a report from HSBC also showed service sector activity index rose to 54.1 from the previous 50.0.

 

Earlier on Monday the Chinese government reported the data on manufacturing activity index dropped to 51.1 in August from the previous month at 51.7. While the final data from HSBC showed a decline to 50.2 from the initial release of 50.3. Both data released is lower than economists forecast, but still indicates expansion. A reading above 50 indicates expansion, while below 50 indicates contraction.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Bank of Japan Keep Monetary Policy

Thursday, September 4, 2014

 

Bank of Japan (BOJ) on Thursday refrained tidakmengumumkan new stimulus, as expected, despite increasing evidence that the recovery in the nation's third-largest economy in the world faded. The central bank also stick to its promise to increase the amount of base money as much as 60-70 trillion yen (572-667 billion dollars) each year through the purchase of assets, particularly in Japanese government bonds. One of the BOJ board member, Takahide Kiuchi, proposes to make the central bank's inflation target at 2% as medium to long-term targets, but the proposal was rejected by the vote 8-1.

 

In a statement released after the decision, the BOJ expects slow economic recovery trend will continue. The central bank also cut its forecast for the housing sector related investment levels continued impact of the sales tax increase in April, but warned that the level of private consumption remains solid.

Japan's economy gets more crushing blow than expected due to the increase in the national sales tax effective last April; The recent data from the level of public expenditure to indicate weakening factory output. The economy contracted in the annual pace of 6.8% in the second quarter, the worst result since 2011. market also seems increasingly in doubt whether the BOJ can achieve the 2% inflation target sebeasr until next year. Recent data showed inflation at the consumer level beyond the impact of rising sales tax remained at 1.3% in July. The BOJ has maintained optimistic view, that perekononmian can overcome the impact of a 3% increase in the consumption tax to 8%, effective from April last.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Aso Give Signals Japan Additional Stimulus Set

Friday, September 5, 2014

 

Prime Minister of Japan, Shinzo Abe, began to signal concerns about the impact of the sales tax increase on the economy, Finance Minister of Japan, Taro Aso, said it would set up a backup plan for stimulus.

 

Economics is constantly changing and we need to prepare a plan for immediate action. Additional budget is one method of sharing existing methods "Aso said that also served as Deputy Prime Minister.

 

The steps taken before deciding whether the government will raise taxes back to 10% in the next year, after last April raised the sales tax from 5% to 8%. The Japanese government tried to control the debt burden while at the same time attempting to lift the economy out of the slump for two decades. Prime Minister of Japan said it will decide whether to raise taxes or not at the end of this year.

 

International Monetary Fund says Japan's debt burden is equal to 243.5% of the Japanese economy this year. Japan Ministry of Finance projected that the debt burden will reach 1,144 trillion yen in the fiscal year ending March 2015

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News and Economic Review Zone Asia (China)

 

China's Trade Surplus Record Back Print

Monday, September 8, 2014

 

Chinese trade data released on Monday, which shows the level of foreign demand is still healthy, while the level of domestic demand appears to worsen. The level of exports in August menlonjak 9.4% from a year ago, exceeding estimates for a gain of 8% of the following increase of 14.5% in the previous month. However, the level of imports fell to an annual pace of 2.4%, compared to expectations for a rise of 1.7% and a decrease of 1.6% post in July. Such data bring the trade surplus in August to record a new high at 49.8 billion dollars, melehihi estimated at 40 billion dollars and hit a high last July at 47.3 billion dollars.

 

"Slowing the growth rate of imports showed a slowing of investment, particularly in the property sector, which has been pressing the level of demand for commodities," said Julian Evans-Pritchard, chief economist at Capital Economics. "Going forward, we estimate the export sector will remain healthy as the condition of the pasa developed countries continued to improve. Meanwhile, the level of demand for commodities will likely pressure hinders the growth of imports. As a result, we expect China will continue to print a large trade surplus, which can be continues to provide upward pressure on the renminbi exchange rate, "he added.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Government Warns On Sharp Weakening Yen

Tuesday, September 9, 2014

 

The Japanese government on Tuesday warned of high fluctuation in the exchange rate of the yen is not good for the economy, indicating that further sharp weakening in the exchange rate may not be welcomed after the yen fell to as low as ternedah 6 years against the dollar.

 

Economy Minister Akira Amari said that while the market, not the government, menentuh yen exchange rate, the exchange rate is expected to stabilize at a level corresponding to the fundamental economists. "High Fluctuations in currency exchange rates are not good for Japan and the global economy, regardless of weakening or strengthening," Amari said at a press conference, when asked about the strengthening of the dollar to its highest level in 6 years against the yen on Tuesday.

Finance Minister Taro Aso, who has jurisdiction on exchange rate policy, issued a statement quieter than the Amari but voiced peringatakan sharply on weaker yen lately. "I have said that currency exchange rate fluctuations are not desirable," Aso said. "We want pergerkan gradually. Was the rationale for the currency." Both ministers declined to comment on specific yen level.

Dolla rmenguat terhadpa yen in the expectation that the Federal Reserve will raise interest rates sooner than anticipated by the markets. A weaker yen is usually positive for Japan's economy by making Japanese goods more competitive overseas. However, the export sector has not recovered despite a weaker yen lately, disappointing that policy makers expect an increase in the level of exports will sustain economic recovery and to help cushion the impact of the decline in domestic demand after sales tax increase in April.

BOJ Governor Haruhiko Kuroda stressed that the weakening of the yen is still positive for Japan's economy, and quite reasonable if the dollar higher since the Fed will soon raise interest rates whilst maintaining BOJ monetary policy remains loose. However, a number of Japanese officials and market analysts warn that further weakening yen could have a negative impact such as increase in fuel costs of imported raw materials for the Japanese company. Pandagan would probably be true if the export sector is still weak even after accelerating global growth. Minutes of the BOJ policy meeting in August showed some central bankers think that exports become less responsive to a weaker yen, partly because many Japanese companies have shifted production abroad

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BOJ Iwata Optimistic on the Economy

Wednesday, September 10, 2014

 

Deputy Governor of the Bank of Japan Kikuo Iwata on Wednesday reiterated the central bank's belief that the economy can recover from the downturn, said that the community and the company will raise the level of expenditure as the impact of a sales tax increase in April eased. Iwata acknowledged that the weak kespor sector and the increasing burden on society due to tax increases pose a risk to the outlook, but said improving global demand and wage rates will sustain the country's third-largest economy in the world in a moderate recovery path.

 

"Quantitative and qualitative easing (QQE) of us have had a corresponding impact on the economy of our expectations. Along the cycle of output, income and expenditure are positively retained, the impact of monetary easing will be strengthened," he said in a speech in Kanazawa, Ishikawa prefecture cities in Japan middle.

Japan's economy contracted at an annual rate of 7.1% in the second quarter, the biggest contraction since the global financial crisis in the year 2009, due to the impact of the sales tax increase in April. This raises doubts on the market that can accelerate the rate of inflation BOH consumers, which currently stands at 1.3%, towards the 2% target in the next year.

However, Iwata break the view that the rate of increase in the wage rate is still lemabat despite massive stimulus from the BOJ, saying that it takes time for companies that are familiar with deflation and reluctant to raise wages, to consider raising the basic salary. He also does not agree with most private sector analysts say consumer inflation will slow as the urge of a weaker yen began to fade, there is a history told them that no strong correlation between the yen and inflation. "The biggest factor behind the rate of price increase is an increase in demand in the economy is partly the impact of our monetary policy," he said.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Inflation Eases Back in August

Thursday, September 11, 2014

 

The rate of consumer inflation in China slowed to the lowest level in four months in August while the price level at the factory gate extending losses for 30 months, providing a space for government stimulus to prop up the economy amid the downturn in the property sector. The consumer price index rose by 2% from a year ago, according to the National Bureau of Statistics said in Beijing today, compared with an estimated 2.2% and 2.3% in July. The producer price index fell by 1.2%, compared with a projected decline of 1.1%.

 

The leader in China is trying to achieve the annual target growth rate of 7.5% while maintaining sebeasr CPI increase at 3.5%. Data this week showed a decline in imports and a slowing rate of expansion of the money supply, refer to weak domestic demand and strengthen the chances of additional policies to sustain the activity.

 

"We expect inflation to remain under control," said Julian Evans-Pritchard, China economist at Capital Economics Ltd. in Singapore. "The easing of pressure on housing costs, commodity prices, and monetary policy measures are relatively neutral to prevent uncontrolled inflation."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Impact of China's Reform May Be Tasted in 2015

Friday, September 12, 2014

 

China's economy is likely to slow again in 2015 as the impact of the reform becomes more acute, according to experts warning at the World Economic Forum (WEF) in Tianjin, China. "In the year 2015, the period of property market sector will continue to slow down, creating problems for the economy which is looking for a new engine of growth," said Li Daokui, dean of the Schwarzman Scholars Program at Tsinghua University on the sidelines of the annual meeting of the WEF meeting in China. "The new engine for growth takes time," said Li, a former Chinese central bank adviser, adding that the government should set a target growth of gross domestic product (GDP) next year as low as 7%, down from a target of 7.5% in 2014.

 

Second largest economy in the world, which is located in the middle of a transition towards a model of growth led by consumption level, growing at a rate of 7.5% in the second quarter, up from 7.4% in the previous quarter.

"I would say the government would still have to be very proactive in putting a large infrastructure project together to protect against a slowdown in the property sector, like what they did this year," he said. Dariusz Kowalczyk, senior economist and strategist at Credit Agricole, also expects China's economy to slow down to around 7% next year. He estimates that the government will reduce the economic stimulus and lowered its growth target.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BoJ easing Still Got Instruments If Needed

Friday, September 12, 2014

 

In an interview with a Japanese TV last night, Governor of the Bank of Japan Haruhiko Kuroda said the central bank has instrument if further monetary easing is needed. "There is no limit to what we can do," Kuroda said when answering a question whether the central bank has used all options when launching an aggressive stimulus last year. "If necessary, we can take the appropriate action." However, Kuroda has not uttered the need to take action at this time.

 

Regarding the weakening of the yen that happened lately against the United States dollar, Kuroda confirmed that it is a reflection of the Fed is preparing to tighten its monetary policy at a time when the BoJ still run a large-scale stimulus. Kurodo also denied the perception that sustained yen weakness will only give more negative impact due to the soaring price of imported products. "I think the yen's recent weakness has extreme negative impact on Japan's economy. Yet, regardless of whether the yen strengthened or weakened; important that the movement of the yen reflects economic conditions," said Kuroda.

 

Meanwhile, the yen looks to continue pelemahannya in the Asian session. USD / JPY is now trading 107.25; after reaching 107.29, the weakest level 5 1/2 years new

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Along Li narrows choice Slowing Chinese Growth

Monday, September 15, 2014

 

Chinese premier choice Li Keqiang has narrowed or loss that stimulates growth target in 2014.

 

Output production running at its weakest pace since the global financial crisis, and investment as well as growth in retail sales show a moderate walk in the data released on September 13, it underscores the risk of the deepening economic slowdown led by the decline of the property market. Stocks, precious metals and currencies including the Australian dollar fell as analysts reduced growth forecasts for 2014.

 

"This is a wake-up call that they need to act more," said Helen Qiao, chief economist at Morgan Stanley China in Hong Kong. "The government is trying to work very hard to achieve this at a certain target level, which is not necessarily impossible if they perform certain steps in from now on. Risk at this time is if they underestimated how much more easing tools they need."

 

The slowdown in economic data in August that included a second consecutive decline in imports and a decrease of 40% in the broadest measure of the new loan will test the resolve of Li who want to avoid a more powerful stimulus to achieve its growth target of 7.5%. The loan amount that occurred during the start of the year 2009 to 2013 has triggered a surge in debt on a large scale that triggered the banking crisis in other countries, according to the International Monetary Fund, which underscores the reluctance of Chinese premier in opening the tap stimulus.

 

GDP growth may fall to 6.5% to 7% in the third quarter if the economic numbers are also weak in September, according to analyst estimates of Australia & New Zealand Banking Group Ltd., down from 7.5% in the period from April to June. Monthly GDP report compiled by Bloomberg showed that the economy expanded by 6.3% in August from a year ago, down from 7.4% in July.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Foreign Direct Investment To Fall to Lowest Level 8 Month In August

Tuesday, September 16, 2014

 

Foreign direct investment into China, which is to measure the degree of external trust, slumped to the lowest level in four years amid increasing investigations into distrust of multinational companies.

 

Total investment of $ 7.2 billion coming in August, down 14% from a year ago, in the report by the finance ministry said on its website today in Beijing after a decline of 17% in July. It was the second straight decline more than 10% since 2009, according to a report on the previous data compilation by Bloomberg.

 

US companies and Europe have marked their anxiety that the government is discriminating against non-corporations of China, they say that the inquiry has reduced the attractiveness of the country. Prime Minister Li Keqiang last week trying to fight that perception, by promising a wider opening to outside investment and said that the outside has been in the business of targeting only 10% of the anti-monopoly investigation.

 

The fall in inward investment is another hurdle for 7.5% growth target for this year after production output in August only expanded at a rate of late since the global financial crisis.

 

In the first eight months of 2014, foreign investment into China fell by 1.8% from a year ago to $ 78.3 billion, in the report by the finance ministry.

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News and Economic Review Zone Asia (China)

 

Stocks Rally On China Banking Liquidity Report From PBOC

Wednesday, September 17, 2014

 

Chinese banking stocks rally in Hong Kong trading as Sina.com said that the central bank provides funds to institutions of the biggest lenders in China of 500 billion yuan ($ 81.4 billion) loan to boost growth and boost economic performance.

 

Industrial & Commercial Bank of China Ltd., entrusted the world's largest bank by assets, and China Construction Bank Corp., gained at least about 1.4% this afternoon.

 

People's Bank of China yesterday began giving each of 100 billion yuan to China's five largest banks through quarterly loan facility, in the report by a news website, quoting from banking your analysis Guotai Junan Securities Co. The PBOC did not respond to questions sent by fax. The report came after the Shanghai Composite Index slumped to the deepest since March when the data showed yesterday as foreign direct investment fell to its lowest level in four years, it is the latest sign that growth slowed in the country with the second largest economy in the world .

 

"This is a signal that China's policy makers concerned with the weakening in economic data and their bersedian to provide more stimulus," said Michael Wang, an analyst with the market growing at Amita Capital LLP in London. "Injections of liquidity to the biggest banks is equal to the ratio of foreign reserves to reduce them."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China May Not Need Stimulus Aggressive

Thursday, September 18, 2014

 

China may not need aggressive stimulus for economic growth rate is still in the government's target range, according to the Chinese central bank officials Chen Yu. Yu comments can sinyalkan that Beijing will continue its policy stimulus may selectively sake sustain economic activity.

 

A series of economic data of China last quite disappointing and this has given rise to expectations that Beijing might launch an aggressive stimulus in order to maintain economic growth in the world's biggest 2. Yesterday, the media reported that the PBOC has injected liquidity of $ 82 billion to the 5 largest banks in China.

 

"Monetary policy is currently appropriate. We do not need to launch an aggressive stimulus for economic activity is not far from the range of the target," said Chen, who also point out that the PBOC will continue the mini stimulus in order to maintain the growth momentum. "Pressure drop in economic activity in the fourth quarter can not be ignored and this will mean continuing a mini stimulus. However, we should have to prevent the stimulus mini does not turn into an aggressive stimulus," Chen said when interviewed by Financial News.

 

Ma Jun, chief economist for the research division at the PBOC, is also wary of the aggressive stimulus policies point out that while the economic growth rate lower can contribute to the policy reforms being carried out by the government. Meanwhile, Hang Seng fell in trading Thursday. Hang Seng futures are now traded 24100; away from a daily high of 24 331.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

PBOC Survey: New Loan Demand Weakens In Third Quarter

Friday, September 19, 2014

 

The demand for new loans from Chinese entrepreneurs weakened in the third quarter, this indicates that entrepreneurs are still pessimistic about the growth rate in the country with the second largest economy in the world, on show in the central bank survey on Friday.

 

The index measures the bank's assessment of the demand for loans fell to 66.6% in the quarter ended in September from 71.5% in the second quarter, based on the survey of the People's Bank of China to approximately 3,100 financial institutions across the country.

 

The central bank conducted three separate surveys on businesses, financial institutions and depositors in each quarter.

 

The manufacturing sector showed the largest decrease in the demand for loans than in the non-manufacturing sector, while the loans from large and small companies fell in the third quarter, on show in the survey.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Will Not Change Dramatically Policy

Monday, September 22, 2014

 

China will not dramatically change the economic policy simply because the economic indicators, according to Finance Minister Lou Jiwei statement. Comments Lou managed to dampen expectations for aggressive stimulus from Beijing after a series of Chinese economic data confirms the continued slowdown of the Chinese economy. The comments also contributed to the fall of stock indices of Hong Kong and China on Monday.

 

"China can not rely on government spending to boost infrastructure investment. Economic stimulus ever run China as it navigates the global financial crisis has indeed helped create economic growth, but is also contributing to the creation of excess capacity, environmental pollution, rising local government debt, and other issues. as a result, China can not simply rely on public funds to invest in infrastructure on a large scale, "said Lou

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News and Economic Review Zone Asia (Japan)

 

Ex Deputy BOJ: Weakening Yen Give Risks In Japan

Monday, September 22, 2014

 

Japan are in danger of falling into recession as the decline in the yen reduces the purchasing power of the household sector and drain company profits, the former deputy governor of the Bank of Japan.

 

"The yen is weakening a bit excessive," said Kazumasa Iwata, the deputy governor of the period 2003-2008 in an interview on October 19 in Tokyo. "Abenomics entails risk the consequences of" begging of yourself "and the signs are already emerging."

 

The yen is currently traded near six-year lows against the dollar due to differences in the monetary policy of the United States to Japan are threatening to increase the volatility of currency exchange rates. The rising cost of imported again strained the economy as Prime Minister Abe to consider whether Japan can do other tax increases to control the world's largest debt in the country at this time.

 

"Level the right currency to reflect Japan's economic fundamentals are in the range of 90-100 yen per dollar," said Iwata, who is currently the president of the Japan Center of Economic Research.

 

The yen traded at this point in the range of 108.75 per dollar at 11:48 pm after hitting 109.46 on September 19, it is the weakest level since August 2008 Yen terdepresiai much as 4.4% during the last month, the movement of the largest among the 16 major currencies which is followed by Bloomberg.

 

Haruhiko Kuroda, the BOJ governor chosen by Abe in 2012, said last month that he will do what is needed to achieve the 2% inflation target in the middle of her continued policy easing unprecedented.

 

Speaking at a meeting of the G-20 in Cairns, Australia, on September 19, Kuroda said that he did not see any big malasah with the movement of currency exchange rates today.

 

"It's important for currency exchange rates to move stable because it will reflect the economic fundamentals of a country," it said. "Reasonable for the exchange rate to move in line with changes in the economic fundamentals."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Manufacturing Index Rises in September

Tuesday, September 23, 2014

 

China's manufacturing index beat estimates on the results of this month, shows that in the target stimulus to help the economy cope with the decline in the property sector began to fade.

 

Initial PMI index from HSBC Holdings Plc and Markit Economics was at 50.5 for the month of September, compared with the median estimate in a Bloomberg survey of 50 level in late August and reading at the level of 50.2. A reading above 50 indicates expansion. The size of the new reservations and bookings for new exports rose at the fastest pace, on show in the report.

 

The increase in the factories will ease the pressure for greater easing measures, including liquidity injections and accelerate expenditure for the railway. At the moment the central bank for liquidity poured $ 81 billion in the last week to the five largest banks in China, Finance Minister Lou Jiwei of China reiterated that a stable economy and job creation continues.

 

Final reading of the HSBC-Markit PMI for September is scheduled to be released on September 30. Separate manufacturing index report from the National Bureau of Statistics and China Federation of Logistics and Purchasing will be published on October 1. That number dropped to 51.1 in August from 51.7 in July.

 

Today's report, which was known by the name of the Flash PMI, is usually based on 85% to 90% of the responses to a survey sent to the purchasing managers at more than 420 companies. Estimates today from 21 analysts ranged from 48.5 to 50.5.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

IMF Estimate Growth Rate of China in 2015 'Far Above' 7%

Wednesday, September 24, 2014

 

China's economic growth rate is likely to grow faster than previously forecast in 2015, according to the International Monetary Fund on Wednesday, dismissed the risk of slowing real estate market in the country the world's second largest economy. Economic growth in China is likely to be "well above" 7% next year, said Changyong Rhee, director of the IMF's Asia Pacific department. His statement indicates that the IMF would raise China's growth projection in front of the estimate of 7.1% in July. For 2014, the IMF estimates that China's growth will reach 7.4%, slightly below the target of the Chinese government around 7.5%.

 

"We estimate they still have the policy tools to maintain a growth rate well above the 7% level next year," said Rhee. However, Rhee said the IMF does not expect the market China property sector which melampat can be a serious problem, saying it is only "gradual adjustment" rather than a hard landing. "Evidence suggests that there will be a gradual adjustment in the real estate market, but we have to pay attention to whether the scenario will last," said Rhee. Chinese slowdown should not be considered a "pure risk" as it gives the other countries in Asia better chance to compete with Beijing, and attracted foreign direct investment, Rhee added.

The rate of growth in Asia is likely to remain robust, Rhee said, placing the country in the Asian region in a better position to deal with the impact of rising interest rates in the United States in terms of capital flows and market volatility. "We have to prepare, but the impact on Asian economies will be much more minimal compared to the risk of impact on other areas. We can not be complacent, but I think the countries in Asia are ready," said Rhee.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

The two Chinese state-owned bank Starting Give Incentives for Home Loans

Thursday, September 25, 2014

 

The two Chinese state-owned bank branches reportedly asked to increase the number of housing loans for the sake of exciting industrial properties. Agricultural Bank of China Ltd. and Bank of China is committed to boost the number of residential loan demand throughout maximum possible.

 

How that is done by them is to give relief to prospective home buyers credit to the public interest to have back home. Nelum still unknown whether this strategy will be followed by two other state banks, namely the Industrial and Commercial Bank of China Ltd. and China Construction Bank Corp. known diligently to offer loans to their customers maisng.

 

Policy banks is an instruction is government, which wants to re-excited the housing industry. As is known, the Chinese economy grew 7.4% (year-over-year) in the first half of 2014, or lower than the performance the same period last year, 7.7%. Economic observers warned that the decline in interest in buying property can suppress the national economy that the government is expected to further loosen the rules in the housing business. Because the property sector contributes more than a quarter of China's economic income, ranging from upstream to downstream. This sector involves so many types of businesses from small to medium-such as building tools, to interior design home furnishings.

 

Home sales in China fell 10.9% in the eight months of the beginning of 2014 compared to the same period last year. Therefore, the central government in recent months loosen strict rules that used to apply in the housing sector bubble fears. In May, the central bank has met with officials of commercial banks to formulate the best way that could increase the credit application.

 

More than 30 local governments already provide relief for home ownership through the facilities of the interest rate lower preference. This strategy is considered as the best way at least until the end of the central government actually disburse greater economic stimulus than cutting the reserve requirement ratios and liquidity injecting cash directly to commercial banks.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

If Changing Commander, PBOC Policy Not Changed Drastically Predicted

Friday, September 26, 2014

 

News of the replacement plan Governor of People's Bank of China (PBoC) continues to be a discussion of a variety of media and financial analysts the world. Although not yet confirmed, but rumors of market participants began to incorporate this into consideration investment.

 

There is hope that the appointment of a new central bank governor will make the PBOC monetary strategy turned aggressive. However, some of the pessimism that the pattern of the central bank's policy will change drastically if a leadership position in the reshuffle. "Zhou replacement Xiaochuang news coincides with China's national meeting next month," commentator research team Daiwa financial institutions. Even if true will be replaced, most likely done in conjunction with the announcement of the moment.

 

On the other hand, Daiwa will not see drastic policy changes when leadership PBOC overhauled. Because the dismissal was in accordance with the procedures Xiaochuang, because of his age was already entered retirement. Anyone who was appointed as his successor will not have a large space for monetary easing in the extreme.

 

Bleak reported yesterday, the President of China, Xi Jinping dilaporka plans to replace the current central bank governor, Zhou Xiaochuan, the new figure. Discourse reshuffling in the body People's Bank of China (PBOC) sticking out in the middle of the different institutions acceleration strategies opinions about the national economy.

 

The strongest candidates will replace Xiaochuan at the highest leadership of the central bank is Guo Shuqing. He is a former banker and capital markets watchdog that now serves as the governor of East Shandong province. Even so, this news can not be confirmed and is still limited assurance reports in the media.

 

In an interview with the Wall Street Journal, Xiaochuang governor insisted he would not resign despite often disagree with the government. The man who has become the leader of the central bank since 2002, claiming its policy is always in line with China's growth target. Market participants speculate the slow flow of recovery in most Asian countries was the main discourse Xiaochuang dismissal because the government wants the central bank to act more aggressive monetary easing than what they do now. But until now there has been no party dares confirmed this news, both from the PBOC and the cabinet ministers.

 

Apart from the various outstanding issues, the central bank is believed to be still releasing new stimulus because some economic indicators do not get better. Figures industrial production grew slowly in the ratio of 6.9% in August compared to a year ago. While the growth in fixed investment fell 13.8% (annually) compared to a record in July, 15.7%. Consumer prices also dropped to only 2% in the month of August or below the official target of the government, 3.5%.

[mynameisandhy]

News and Economic Review Zone Asia (Hongkong)

 

Action Demonstration Hong Kong City Still Paint

Monday, September 29, 2014

 

Hong Kong Police fired tear gas in order disperse demonstrations that have taken place over the last few days. Pro-democracy protesters are still visible in some areas in Hong Kong before the start of trading hours in Hong Kong. Many roads leading to the Hong Kong business center closed as thousands of protesters ignored police warnings to disperse. Schools that are near the demonstration area were closed while some financial companies have called for his staff to work from home.

 

This is the worst demonstrations since China took over the former British colony two decades ago. Demonstrators are still wandering around Hong Kong government buildings, ignoring the warnings of his fellow students and pro-democracy leader to step down due to fears they would use rubber bullets to disperse demonstrations. Meanwhile, CNN reported that at least 38 people were injured amid efforts by police to disperse demonstrators

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Manufacturing Activity Stable in September

Tuesday, September 30, 2014

 

China's manufacturing activity stable in September from August, but a sharp decline in August from the previous month showed China's economy will face the challenge of reviving growth momentum dakam.

 

Index of manufacturing activity released by HSBC final revised down to 50.2 from the initial release of 50.5. Numbers in the index is unchanged in September from August which is also 50.2. HSBC chief economist Qu Hongbing, said the data in September showed manufacturing activity continued to expand, although the pace is slow. A reading above 50 shows expansion and below 50 indicates contraction. Qu also said that the growth is still at risk of decline and in need of development policy accommodative monetary, as well as fiscal policy.

 

HSBC manufacturing activity index derived from monthly replies to questionnaires of more than 420 small manufacturing firms, private and export-oriented.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Service Sector Activity Weakens

Friday, October 3, 2014

 

Index of service sector activity or non-manufacturing China in September fell to eight-month low. National Bureau of Statistics and the China Federation of Logistics and Purchasing reported activity index of non-manufacturing sector fell to 54.0 from 54.4 in August. Although still berkespansi (number above 50 indicates the expansion), but the slowdown is giving out the pressure on the Chinese government to provide additional stimulus, after the manufacturing sector also has not shown an increase in expansion.

 

The data from the Chinese government showed manufacturing activity index of 51.1 was unchanged from August and according to economists' estimates. The same was seen in the data released by HSBC manufacturing activity.

 

HSBC chief economist Qu Hongbing, said the growth of the manufacturing sector is still at risk of decline and in need of development policy accommodative monetary, as well as fiscal policy.