China Slashes Lending Rate to Support Slowing Economy
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJd1Td6ZKAao&refer=home

On Nov 12, 3:28 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
> My comment: Excellent news, the best posible news are happening these
> days. Finally it seems that also householders are joining the effort
> to boost consumption moderately. Roughly, it means that saving rate
> will move from 30% to around 20% this year. Also, foreign account are
> in line. Export slow down as a consequence of the global slow down,
> but import also slow down at a similar pace.
>
> Peace and best wishes.
>
> Xi
>
> ChinaRetail Sales Rise 22%, Help to Counter 
> Slowdownhttp://www.bloomberg.com/apps/news?pid=20601087&sid=alXgzyRr0I6A&refe...
>
> Chinareports $35.2 bln record high trade surplus in 
> Oct.http://news.xinhuanet.com/english/2008-11/11/content_10341604.htm
>
> On 11 nov, 05:03, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
>
>
> > My comment: Besides to ease financial rules that the Peoples Bank will
> > do without any doubt. We could take advantage of this momentum to
> > reduce subsidies to some products such as gas for private cars. It
> > will not last forever and then we should use that funds for other
> > energy sources.
>
> >ChinaCPI eases to 4% in October. PPI 
> >6.6%http://news.xinhuanet.com/english/2008-11/11/content_10339778.htm
>
> >China'sInflation Slows, Giving Room for Rate 
> >Cutshttp://www.bloomberg.com/apps/news?pid=20601087&sid=abFzM2IfLNNI&refe...
>
> > Peace and best wishes.
>
> > Xi
>
> > On 1 nov, 15:25, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
> > > My comment: Once the basic welfare system is close to be extended
> > > across the wholeChinaand in particular the basic infraestructrure of
> > > education and healthcare is on its way,Chinahas been trying to
> > > change its growth model since some years ago. From low value added
> > > manufacturing (such as metal processing) toward higher value added
> > > jobs, and from an export oriented economy to a balanced export-
> > > domestic consumption economy. Obviously a crisis like this is not the
> > > best time to produc such huge changes. But that is the time that we
> > > have to deal with and, on the other hand, to produce such dramatic
> > > changes while economy growth is still high is almost mandatory for any
> > > country that does not want to produce a human crisis.
>
> > > Most of those industries are moving toward other countries (mostly
> > > Vietnam). We do not see a serious negative human impact on
> > > unemployment or human conditions inChinadue to this process. But
> > > this crisis makes that authorities will have to play even closer
> > > attention to those indicators to avert any damage to Chinese people.
>
> > >ChinaManufacturing Contracts as Crisis Trims Exports 
> > >(Update1)http://www.bloomberg.com/apps/news?pid=20601087&sid=asxpXKBhstjU&refe...
>
> > > On 20 oct, 19:41, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
> > > > My comment: Excellent news. Growth is slowing down as a consequence of
> > > > global slow down and Chinese fight against inflation. But its pace, 9%
> > > > in Q3, is still really high.
>
> > > > Investments are strong enough to sustain development.  "Investment in
> > > > urban areas grew 27.6 percent to 9.9871 trillion yuan, 1.2 percentage
> > > > points higher than the same period of last year, and rural fixed
> > > > assets investment rose 23.3 percent to 1.6375 trillion yuan, 2.1
> > > > percentage points higher." Good news, investments in rural areas grew
> > > > faster than in urban areas, probably it means that the fight to trimm
> > > > inequalities between urban and rural areas are producing good
> > > > results.
>
> > > >China'sCPI rises 4.6% in 
> > > >Septemberhttp://news.xinhuanet.com/english/2008-10/20/content_10222532.htm
>
> > > >China'sGDP up 9.9% in Jan.-Sept. period, 9 percent for the third
> > > > quarterhttp://news.xinhuanet.com/english/2008-10/20/content_10222493.htm
>
> > > >China'sfixed assets investment up 27.0% in 1st three 
> > > >quartershttp://news.xinhuanet.com/english/2008-10/20/content_10222671.htm
>
> > > > Peace and best wishes.
>
> > > > Xi
>
> > > > On Oct 15, 3:24 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
> > > > > My comment: It means that ifChinais the engine of global growth, to
> > > > > keep it on track despite global crisis is contribution enough to the
> > > > > global economy.
>
> > > > >Chinaairs resolve to keep economy in good 
> > > > >shapehttp://news.xinhuanet.com/english/2008-10/14/content_10195060.htm
>
> > > > >  BEIJING, Oct. 14 (Xinhua) --Chinaon Tuesday reaffirmed its resolve
> > > > > to keep its economy on track amid the global financial turmoil.
>
> > > > >     In a meeting with visiting U.S. Senator Chuck Hagel, Vice Premier
> > > > > Wang Qishan said the financial crisis, triggered by the U.S. credit
> > > > > crunch, had exerted a grave impact on the global financial market.
>
> > > > >     "As a responsible country,Chinahas always valued the
> > > > > communication and cooperation with other nations to ensure world
> > > > > financial and economic stability."
>
> > > > >     Wang saidChinawould make great efforts to keep its economy on
> > > > > the right track, which would be the country's greatest contribution to
> > > > > the world.
>
> > > > >    Chinahad implemented and would continue measures to ensure the
> > > > > stability of finance, economy and the capital market, he said,
> > > > > referring to a package of new policies to spur economic growth.
>
> > > > >     The central bank cut interest rates on Sept. 15 for the first time
> > > > > in six years.
>
> > > > >     The People's Bank ofChina, the central bank, announced the
> > > > > deposit and lending rates would be lowered by 0.27 percentage points
> > > > > and the reserve-requirement ratio would be reduced 0.5 percentage
> > > > > points starting Oct. 15.
>
> > > > >     "With tools at our disposal, we are confident and capable of
> > > > > prevailing over the overall difficulties and challenges," Wang told
> > > > > Hagel.
>
> > > > >     He added the overall bilateral relations of the two countries had
> > > > > moved forward and become increasingly interdependent since forging
> > > > > diplomatic ties in 1979.
>
> > > > >     To promoteChina-U.S. ties was in the fundamental interests of the
> > > > > two nations, he said.
>
> > > > >     Wang proposed the two deepen a strategic trust and take a candid
> > > > > and pragmatic approach in addressing differences. They should work
> > > > > more closely on economy, trade, investment, energy, environment and
> > > > > high-tech.
>
> > > > >     He also urged the United States to observe the three joint
> > > > > communiques, refrain from anything harmful to bilateral ties and the
> > > > > stability of the Taiwan Straits, so as to ensure the sound and steady
> > > > > progress of bilateral constructive cooperation.
>
> > > > >     As all nations were becoming more connected, Hagel, a Republican
> > > > > senator from Nebraska, said the stronger cooperation between the
> > > > > United States andChinawould help ensure world financial and economic
> > > > > stability.
>
> > > > > On Oct 14, 3:33 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
> > > > > > My comment: Thanks to the drop of commodity prices, price inflation
> > > > > > will be under control. Because of that, and because global slow 
> > > > > > down,
> > > > > > we can and have to focuss our effort on development. Not just on
> > > > > > growth but on a certain type of growth. I already posted about what
> > > > > > sort of consumption we can address (mostly services, rural
> > > > > > development, etc.).
>
> > > > > > The main decissions of the CC of the CPC target it, to enhance
> > > > > > healthcare, to develop rural areas, education, environmental
> > > > > > opportunities, consumption.
>
> > > > > > Lot of work ahead.
>
> > > > > >China'sTrade Surplus Widens to Record $29.3 
> > > > > >Billionhttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aX4Pl63eHKbA
>
> > > > > > On Sep 15, 11:30 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]>
> > > > > > wrote:
>
> > > > > > > As expected,
>
> > > > > > >China'scentral bank reduces credit interest rate, reserve 
> > > > > > >requirement
> > > > > > > ratiohttp://news.xinhuanet.com/english/2008-09/15/content_10011166.htm
>
> > > > > > > It will allow banks to improve their profit and loss account, as 
> > > > > > > 17.5%
> > > > > > > was extremely high. If price inflation goes down and down as 
> > > > > > > expected,
> > > > > > > we should expect more cuts of rates.
>
> > > > > > > Also, it will release the economy a little bit. But not much. 
> > > > > > > Higher
> > > > > > > taxes will keep growth at a healthy 9%-10%. Higher would be too 
> > > > > > > risky
> > > > > > > as commodities might rise and, therefore, price inflation could 
> > > > > > > rise
> > > > > > > again if economy is too hot.
>
> > > > > > > Peace and best wishes.
>
> > > > > > > Xi
>
> > > > > > > On Sep 10, 4:19 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
> > > > > > > > My comment: After two years fighting against inflation, price
> > > > > > > > inflation are now under control but still high. The 
> > > > > > > > "unbelievable"
> > > > > > > > rate in August is 4.9%, in this way they can reach the initial 
> > > > > > > > goal
> > > > > > > > (4.8%) or any other goal. Much more realistic and healthy would 
> > > > > > > > be the
> > > > > > > > revised one 7.2%. In this way, they could ease finantial rules 
> > > > > > > > to curb
> > > > > > > > investments and growth. The lower fees of oil and other 
> > > > > > > > commodities
> > > > > > > > along next months will help to keep it under control while for 
> > > > > > > > example
> > > > > > > > they can ease reserve ratio of banks, increase liquidity, etc.
>
> > > > > > > > As you can see US government is not the only one where official
> > > > > > > > inflation does not match real inflation. A more resonable rate 
> > > > > > > > and
> > > > > > > > what everybody predicted is between 6.5% and 7%, declining 
> > > > > > > > month after
> > > > > > > > month, but still high. When you distribute thousands of food,
> > > > > > > > umbrellas, and all sort of gimmies for free (price = 0) for the
> > > > > > > > Olympics the average price falls, but it does not mean that the 
> > > > > > > > real
>
> ...
>
> read more »
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