Source: You Tube
Posted March 17th, 2010 by Denis Ouellet
The World Bank has raised its economic growth forecast for China from 8.7 percent to 9.5 percent, citing a boost in exports, strong growth in real estate and robust domestic spending. (…)
Posted March 16th, 2010 by Denis Ouellet
China’s electricity consumption in the first two months grew 26 percent year-on-year to 626.4 billion kWh, People’s Daily reported on Tuesday, citing the National Energy Administration.
The electricity consumption volume in February was 272.1 billion kWh, up 10.54 percent from the previous year.
Consumption in the primary industry sector topped 12.5 billion kWh last month, up 13.36 percent year-on-year.
Secondary industry consumption rose 30.18 percent to 455.4 billion kWh, and the tertiary sector demand was up 20.15 percent to 74.2 billion kWh in February.
Residential power use rose 12.8 percent to 84.3 billion kWh.
China Daily
Posted March 15th, 2010 by Denis Ouellet
Pretty clearly stated: controlling inflation is the Communist Party’s top priority.
Wen Jiabao, the Chinese premier, put tackling inflation at the top of the policy agenda on Sunday and suggested that the survival of Communist party rule might depend upon it.
Posted March 14th, 2010 by Denis Ouellet
China sales of automobiles totaled 2.876 million units for the first 2 months of 2010, a spectacular jump of 84% on last year’s sales during the same 2 months.
January and February are normally the two weakest sales months due to the Chinese New Year festivities and winter. Some economists now extrapolate that car sales could exceed 21 million units in 2010, a 54% jump over strong 2009 sales.
Posted March 12th, 2010 by Denis Ouellet
Northwestern’s Shih Interview on China Loans, Economy March 12 (Bloomberg) — Victor Shih, a professor at Northwestern University, talks with Bloomberg’s Susan Li in Hong Kong about the possibility of a financial crisis arising in China and the outlook for the nation’s economy.
WatchRelated post: CHINA: ARE THE BEARS OUT TO LUNCH?
Posted March 12th, 2010 by Denis Ouellet
- There is a rising chorus of sceptics who argue that the recovery is hollow and that the miraculous growth rates China has achieved over the last 15 years will soon be over.
- At its most basic level, the bear argument is derived from the fact that China has had what is probably the biggest, longest economic boom in history. The logic applied is that the bigger the boom, the bigger the bust.
- A reckoning may well come to pass at some future point but it won’t be soon. Over the time horizon of most investors, it has a low enough probability of occurrence that people should not pay much attention to it.
- We remain positive on risk assets—equities, commodities and corporate bonds—for the short term, a time frame of roughly six to twelve months. The basic backdrop continues to be one of plentiful liquidity, very low interest rates, gradual healing in the financial system, virtually non‐existent inflation, recovering economies and a stable dollar.
- Fundamentally, the U.S. dollar is a weak currency. Its main attribute is that it doesn’t smell as bad as the euro and the yen and, as we have said many times, no one, apart from hedge
funds, has any interest in a dollar crisis. - Stay long risk, stay worried and don’t forget to keep your focus on long‐term wealth preservation. Enjoy the better times because they won’t last.
Posted March 11th, 2010 by Denis Ouellet
Many important stats from China today. The inflation data are particularly worrisome as they could force China to raise interest rates. Unlikely in the short term since most of the inflation pressures stem from higher food prices.
Fixed-asset investment in urban areas rose 26.6% in the January-February period from a year earlier. That’s the slowest growth rate in a year, and down from the 30.5% expansion for all of 2009.
Posted March 10th, 2010 by Denis Ouellet
The combined auto sales in January and February surged
84 percent from a year earlier to 2.9 million units, with February’s figures alone reaching 1.2 million units, up 46 percent year-on-year, according to the China Association of Auto Manufactures (CAAM) Tuesday.
China, the world’s largest auto market, adjusted the auto tax-cut policy and old-for-new program in January this year, to boost domestic consumption.
Posted March 10th, 2010 by Denis Ouellet
There is a bit of controversy on the recent Chinese export data. Here are the facts:
China’s foreign trade posted a 45.2 percent year-on-year growth in February.
Exports in February stood at $94.52 billion, up 45.7 percent, in a new indication of a rebound in global demand, while imports rose 44.7 percent to $86.91 billion, reflecting continued strong domestic demand.
