Category: Economy

Figures published by the Bank for International Settlements (BIS) in October showed foreign currency loans booked in China, as well as cross-border borrowing by Chinese companies, had reached $880bn (£535bn) as of March 2013, from $270bn in 2009. Analysts say this figure is now likely to exceed $1 trillion and is continuing to grow, raising the prospect of the potentially dangerous vulnerability of the Chinese financial system to a rising dollar. “It is very hard to work out the exposures of individual banks to the Chinese financial system, but it seems to us there are some very large numbers on some of the bank’s balance sheets,” said the analyst. “Without a doubt, that has been on the rise [foreign currency borrowing] and was really starting to grow fast in the latter half of last year and it’s only going to continue. For the time being, it is only a […]

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Figures published by the Bank for International Settlements (BIS) in October showed foreign currency loans booked in China, as well as cross-border borrowing by Chinese companies, had reached $880bn (£535bn) as of March 2013, from $270bn in 2009. Analysts say this figure is now likely to exceed $1 trillion and is continuing to grow, raising the prospect of the potentially dangerous vulnerability of the Chinese financial system to a rising dollar. “It is very hard to work out the exposures of individual banks to the Chinese financial system, but it seems to us there are some very large numbers on some of the bank’s balance sheets,” said the analyst. “Without a doubt, that has been on the rise [foreign currency borrowing] and was really starting to grow fast in the latter half of last year and it’s only going to continue. For the time being, it is only a […]

Click here to view full article at www.telegraph.co.uk

Global stocks were mostly lower Monday as signs of weakness in another China manufacturing survey added to lingering jitters about developing economies. In early European trading, major benchmarks were lackluster. Britain’s FTSE 100 inched up 0.2 percent to 6,522.24 but France’s CAC-40 was down 0.1 percent to 4,163.23. Germany’s DAX fell 0.1 percent to 9,293.72. Futures augured modest gains on Wall Street, with Dow Jones and S&P 500 futures both up 0.1 percent. The Nikkei 225, the barometer for the Tokyo Stock Exchange, closed down 2 percent at 14,619.13 as the yen has reversed some of its weakness against the dollar in recent days, which is a negative for exporting stocks. Also negative for sentiment was an official Chinese manufacturing survey that showed factory output grew at a slower rate in January compared with December. The survey released on the weekend followed a HSBC […]

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The purchasing managers’ index (PMI) for China’s non-manufacturing sector slipped for a third straight month in January due to a slowdown in the real estate sector, new data showed. The index dropped to 53.4 percent last month, the lowest since February 2012, from 54.6 percent in December, according to official figures released on Monday. The index tracks non-manufacturing sectors including construction, software, aviation, railway transport and real estate. A PMI reading above 50 percent indicates expansion, while a reading below 50 percent reflects contraction. The monthly indicator is released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). CFLP Vice Chairman Cai Jin attributed the drop mainly to a slowdown in the real estate sector in the past two months. The price index for real estate dropped to below 50 percent from December to January, while that […]

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The purchasing managers’ index (PMI) for China’s non-manufacturing sector slipped for a third straight month in January due to a slowdown in the real estate sector, new data showed. The index dropped to 53.4 percent last month, the lowest since February 2012, from 54.6 percent in December, according to official figures released on Monday. The index tracks non-manufacturing sectors including construction, software, aviation, railway transport and real estate. A PMI reading above 50 percent indicates expansion, while a reading below 50 percent reflects contraction. The monthly indicator is released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). CFLP Vice Chairman Cai Jin attributed the drop mainly to a slowdown in the real estate sector in the past two months. The price index for real estate dropped to below 50 percent from December to January, while that […]

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Chinese manufacturing activity slipped to its lowest level in six months, with indications of slowing growth for the quarter to come in the world’s second-largest economy. The National Bureau of Statistics said its purchasing managers’ index (PMI) for January slipped to 50.5 , a reading just above the threshold for quickening growth. While output was still expanding, a sub-index for new export orders hovered for the second month below the midpoint, indicating slowing growth, and pointing to a lull in factory operations for the next few months. Concern over a slowdown in the Chinese economy contributed to the turmoil that has hit some emerging markets over the past 10 days. Saturday’s data are unlikely to ease those worries. The Chinese new year holiday, which began on Friday, normally corresponds with lower manufacturing activity as overseas orders dry […]

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China’s purchasing managers’ index (PMI) for the manufacturing sector dropped to five-month low to 50.5 percent in January, according to official data released on Saturday. January continued December’s decline and marked the lowest factory activity since August 2013, according to a statement jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). In January, the sub-index for production stood at 53 percent, down 0.9 percentage points from December, while the sub-index for new orders lost 1.1 percentage points to 50.9 percent, said the statement. Major PMI compounds all declined in January, indicating downward pressure on the economy, said Zhang Liqun, an analyst with the Development Research Center of the State Council. […]

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China’s purchasing managers’ index (PMI) for the manufacturing sector dropped to five-month low to 50.5 percent in January, according to official data released on Saturday. January continued December’s decline and marked the lowest factory activity since August 2013, according to a statement jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). In January, the sub-index for production stood at 53 percent, down 0.9 percentage points from December, while the sub-index for new orders lost 1.1 percentage points to 50.9 percent, said the statement. Major PMI compounds all declined in January, indicating downward pressure on the economy, said Zhang Liqun, an analyst with the Development Research Center of the State Council. […]

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