China Economy Forum

[shuttler]

Manufacturing hits four-month high


Updated: 2013-08-22 15:12 By Chen Jia ( Xinhua)

Chinadaily.com


Manufacturing activity hit a four-month high, according to the preliminary findings of a key index.

The HSBC Purchasing Managers' Index rose in August to 50.1 from 47.7 in July. A reading above 50 indicates expansion.

A sub-index indicating factory output went up to 50.6 in August from 48.0 in July, the highest level in three months.

"China's manufacturing growth has started to stabilize on the back of modest improvements of new business and output," said Qu Hongbin, chief China economist in with HSBC.

The August growth was mainly driven by recent measures and company restocking, despite weakness in external demand, Qu said.

"We expect further filtering-through, which is likely to deliver some upside surprises to China's growth in the coming months."

 

[shuttler]

Geely H1 net profit up 9% on overseas sales

Updated: 2012-08-23 09:35 ( Xinhua)

http://www.chinadaily.com.cn/business/2012-08/23/content_15699976.htm

Geely Emgrand EC7 Crash Tests 2011 - YouTube


GUANGZHOU - Chinese carmaker Geely Automobile Holdings Ltd said Wednesday that its net profit in the first half of the year rose 9 percent year-on-year, largely due to robust overseas sales.

The company's net earnings climbed to 1.02 billion yuan ($160 million), the privately-owned automaker said in a statement.
Meanwhile, its revenues in the first six months of the year rose 6 percent year-on-year to 11.2 billion yuan.

During the period, the company sold 222,390 vehicles, marking a 4 percent rise from a year earlier and meeting 48 percent of the sales target for all of 2012, according to the statement.

Of the total, domestic sales slid 9 percent year-on-year to 182,329 units, as local brands are losing consumers' favor nationwide. Sales of local brands in the first half fell 7 percent year-on-year against an annual sales growth of 6 percent for the entire sedan sector.

Meanwhile, the carmaker's overseas sales tripled to 40,061 units, mainly due to a strong sales recovery in its major overseas markets such as Eastern Europe and the Middle East, it said.

Shares of Geely Automobile retreated 5.88 percent to close at HK$2.56 (33 cents) in Hong Kong following the interim results report.

全球鹰 GLEAGLE GX7

 

[shuttler]

Geely McCar Comes with its Own Electric Scooter in the Trunk

Geely McCar

Credit: gizmag
Here’s a concept that carries some junk in its trunk. OK, so it’s not junk – it’s actually a three-wheeled scooter, and the McCar packs it away in its trunk to give you even more motoring mobility.



Unveiled at the Shanghai Auto Show, Geely (the Chinese manufacturer and owner of Volvo) introduced this unique concept to the world. The McCar (no, you won’t find it on the menu at McDonalds) is a cool and compact hybrid that comes with a folding three-wheeled electric scooter in the rear. With enough seating for four, the two-door Geely McCar charges its electric scooter while its packed away in the trunk.

Available with either battery or hybrid power, the McCar offers enough juice to get you to your destination at a reasonable pace. If you go with the 12kWh battery, it has range of 93 miles, a top speed of 52 mph and it takes six hours to recharge. When it comes to the 8kWh plug-in hybrid, the McCar can go 31 miles on electric power and 373 miles on gas and battery, with a top speed of 80 mph and a recharge time of two hours. When it’s time to pull out the scooter, you can clock speeds of up to 18 mph (it has a range of 18 miles and it takes two hours to charge). If you don’t want the scooter, feel free to swap it for a standard fold-up wheelchair.

Even though it’s still a concept, there’s a good chance that the McCar might actually go into production, as Geely has plans to mass produce electric and hybrid cars by the end of next year.

credit； lifestyle.dozor

credit: media.ft

credit: evolife.com
Geely McCar Concept - YouTube

 

[cirr]

REFORM，REFORM，and more REFORM。

The area could also be used as a testing ground for major financial reforms

Friday, 23 August, 2013

Victoria Ruan in Beijing

Shanghai has won approval from the State Council to set up the mainland's first free-trade zone, moving it closer to becoming a global financial, trade and shipping hub to rival other Asian cities such as Hong Kong.

The free-trade zone would also likely serve as a testing ground for the central government led by Premier Li Keqiang to launch major financial reforms as part of a plan to boost the service economy and cut reliance on exports.

A general plan governing the operation of the free-trade zone that spans 28.78 square kilometres in Waigaoqiao, Yangshan and Pudong districts in Shanghai has yet to be released. Lawmakers needed to approve amendments to existing laws to legalise certain experiments, a statement posted on the Ministry of Commerce said yesterday.

"Shanghai has its economic strength as well as geographical and political advantages in the greater China economic circle," said Professor Liu Yuanchun from Renmin University.

"It's possible that as Shanghai's free-trade zone plan proceeds, Hong Kong's status as the region's financial centre might be weakened, but when that day may come is uncertain."

The statement did not give more details about the plan.

A free-trade zone, or free port, is where customs authorities allow the flow of goods unhindered with zero tariffs on imports.

Sources said earlier that Li aimed to allow foreign banks to set up subsidiary or joint-venture operations and give permission for foreign commodities exchanges to own warehouses in the free-trade zone.

Liu said Shanghai may change the mainland's yuan internationalisation course by luring business from Hong Kong, currently the country's major yuan offshore trading centre.

"The most valuable part of the Shanghai free-trade zone plan is in the financial sector, such as allowing individuals to directly invest into overseas capital markets," Liu said. "Without free cross-border capital flows, there's no way Shanghai can really emerge as a global financial centre."

Shanghai gets approval to set up free-trade zone | South China Morning Post

 

[StarCraft_ZT]

I was going to post this news....You get first.

Good news.

 

[cirr]

Reform, not incentives, to drive expansion

Innovation in the investment system will be the driver for the economy rather than policy incentives, said a top official in Shanghai, as the city draws up reform plans ahead of the establishment of its free trade zone.

Yang Xiong, mayor of Shanghai, said the pilot free trade zone is as significant as the Pudong New Area to the world's second-largest economy.

"However, this time it's not about policy incentives, but about forming principles that will bridge global standards," he said, adding that these principles could be duplicated elsewhere in the country.

"The focus of the new free trade zone will be to facilitate investment rather than just achieve good trade figures, as China explores deeper reforms in its investment system," Yang told the deputies of the Shanghai People's Congress on Thursday.

On July 3, the State Council, or China's cabinet, approved a plan to set up a free trade zone in Shanghai. The area is expected to be an experimental field for reforms in the financial sector and other sectors, in a bid to release what Premier Li Keqiang regards as the biggest boost for future growth.

Yang said that initial research showed there are more than 90 detailed reform measures ready to be launched in the free trade zone, most of which will focus on innovations to the system.

One example is a change in customs supervision, which will allow non-taxed goods to enter the border. Other measures may include replacing the current approval system for investment with a registration system, he said.

Experts said that reforms might also include a foreign exchange management project.

"The full convertibility of the yuan, a larger quota for foreign exchange settlements, and free flow of foreign capital: such reforms will be carried out in the free trade zone soon," said Zhang Hanlin, head of World Trade Organization research with the Beijing-based University of International Business and Economics.

Imports and exports within the free trade zone will be able to be settled in yuan, Zhang said.

The Shanghai FTZ will likely be formally established in October, Time Weekly reported recently, citing a source close to the matter.

"The priority at the moment is the legal system," Yang said, adding that the reform measures will involve the modification of a dozen laws.

He said the FTZ will be a key task for Shanghai in the second half and in years to come, but he admitted it will not be an easy task.

Shanghai again stands on the frontline of China's reform process, as the city's half-year performance epitomized the country's economic transformation, and the FTZ pilot project is expected to point out the next steps in terms of reform measures for the country.

In the first six months, Shanghai's GDP increased 7.7 percent, 0.5 percentage point faster than in the first half of last year, while the city's consumer price index grew 2.3 percent year-on-year, 1.3 percentage points slower than a year before.

The city's performance seems to be on the right track pointed out by Li, who asked for economic growth to stay above the bottom line and inflation to be within the upper limit.

But such transformation does not come at no cost, as Shanghai's industrial sector has been contracting for five consecutive years, adding further pressure to increase the income levels of ordinary citizens.

The city also bore the brunt of recent economic volatility, including the liquidity crunch in June, which sent the interbank borrowing rate to an all-time high of 13.4 percent, and depressed the Shanghai Composite Index to 1,849 points in the last trading day of June, the lowest level since late 2008.

"As one of the most open cities, Shanghai embraced the direct impact from external factors," Yang said.

"The economy has shifted from high-speed growth to steady growth, and so should our mind-set," he said. "Growing at a lower speed is not something to be afraid of, but the transformation in the growth model should be implemented," he said, adding that 7.5 percent growth is a reasonable level for the transformation and upgrade process of the economy.

 

[cirr]

By Langi Chiang and Kevin Yao

BEIJING | Fri Aug 23, 2013 12:22am EDT

(Reuters) - Investment inflows into China quickened in July, the government said on Friday, suggesting foreign firms' confidence in the world's No.2 economy is holding up despite slowing growth.

China drew $71.4 billion in foreign direct investment (FDI)in the first seven months of 2013, up 7.1 percent from the same period of 2012, the Commerce Ministry said.

In July alone, China attracted $9.4 billion in FDI, up 24.1 percent from a year ago, quickening from the 20.1 percent pace in June -- the fastest in more than two years, although the amount was lower than June's $14.4 billion.

"This shows that foreign investors are still very confident in China's investment environment," Shen Danyang, the ministry's spokesman, told reporters.

The ministry said FDI from the United States rose 11.4 pct in the first seven months from a year earlier, while FDI from the euro zone grew 16.7 pct, including a 58.3 pct jump in investment from Germany.

FDI from 10 Asian nations was up 7.7 pct, including a 55.2 percent rise from South Korea, and 612.6 pct rise from Thailand.

The ministry said FDI inflows into the manufacturing sector in the first seven months fell 2.4 pct from a year earlier, while investment in the service sector rose 15.8 pct.

China aims to lure more FDI in advanced manufacturing to help move its industry make more sophisticated, high-value products.

It has recently stepped up efforts to attract more investment into high-end services including logistics, research and development and education.

Premier Li Keqiang has been pressing for foreign investors to open service industries, including financial services, in a pilot free-trade zone in Shanghai.

A private factory survey this week reinforced signs of stabilizing in China's economy after the government took targeted measures to support the economy, including scrapping taxes for small firms, offering more help for exporters and accelerating investment in urban infrastructure and railways.

China's pace of economic growth slowed to 7.5 percent in the second quarter, down from 7.7 percent in the three months ending March 31 -- the ninth such deceleration in the last 10 quarters.

The ministry said there were signs in early August that China's trade performance was stabilizing.

"China's growth in imports and exports will hopefully stabilizes further in the next few months, with global demand improving steadily and the gradual implementation of a series of trade facilitation measures," Shen said.

China's exports rose a stronger-than-expected 5.1 percent in July from a year ago, while imports jumped 10.9 percent from a year earlier, the latest data showed.

Foreign firms' confidence in China appears to have outweighed fears of increased regulatory scrutiny following investigations into alleged price-fixing and monopolistic behavior by foreign companies selling milk formula and pharmaceuticals.

Chinese authorities have visited the offices of numerous foreign pharmaceutical firms in the past month, and police have accused British drugmaker GlaxoSmithKline (GSK.L) of bribery. GSK has said some of its Chinese executives appear to have broken the law.

(Editing by Eric Meijer)

China FDI inflows quicken in July despite slowing growth | Reuters

 

[Chinese-Dragon]

Really great news. Shanghai is fantastic, probably the most impressive city I have ever seen anywhere in my travels (and I have been all over the world).

No hard feelings about drawing business away from Hong Kong. That's how the world works, and I always knew it was going to happen one day anyway.

The most important thing is the strength of China as a whole.

 

[Viet]

congrat to your great achievement. A friend of mine (a Chinese who lives in Germany) just came back from a trip to Shanghai and surrounding. He was impressed by Shanghai shinning city and got upset by dirty poor neighborhood.

 

[StarCraft_ZT]

PM Li Keqiang, as a Ph.D. Economics, has a professional knowledge of how to keep our economy on the right track. From his perspective, also called Likonomics, electricity consumption, volume of railway freight and loan amounts are good indicators to measure the effetiveness of our economy. It is said that Shanghai FTZ will be his masterpiece.

 

[Lightningbolt]

PM Li Keqiang, as a Ph.D. Economics, has a professional knowledge of how to keep our economy on the right track. From his perspective, also called Likonomics, electricity consumption, volume of railway freight and loan amounts are good indicators to measure the effetiveness of our economy. It is said that Shanghai FTZ will be his masterpiece.

Li Keqiang is a fraud. He is giving western corporation control of the Chinese economy. The guy looks like a traitor when you look at him.

 

[StarCraft_ZT]

Li Keqiang is a fraud. He is giving western corporation control of the Chinese economy. The guy looks like a traitor when you look at him.

Which corporation you mean?

Mergers and acquisitions are the most common economic behavior in both developing and developed country. Unless the most essential industry and corporations are under control of Chinese, it's OK. How about local government selling a mineral worth 2 billion only for 20 million? We can see many cases of national assets disposed by local governments with much underestimated value to private companies since 1978. This is real traitor.

 

[Chinese-Dragon]

I am really happy that the Chinese government is putting momentum into these reforms.

The most important thing is to be able to adapt to changing conditions. Evolution favors those who can survive in any situation.

Like Bruce Lee said:

"Empty your mind, be formless, shapeless - like water. Now you put water into a cup, it becomes the cup, you put water into a bottle, it becomes the bottle, you put it in a teapot, it becomes the teapot. Now water can flow or it can crash. Be water, my friend."

 

[Lightningbolt]

Which corporation you mean?

Mergers and acquisitions are the most common economic behavior in both developing and developed country. Unless the most essential industry and corporations are under control of Chinese, it's OK. How about local government selling a mineral worth 2 billion only for 20 million? We can see many cases of national assets disposed by local governments with much underestimated value to private companies since 1978. This is real traitor.

He is opening up strategic industries to Yankee corporations. That's compromising our national security. Li Keqiang is not a true believer in Chinese communism. He believes western models of economics and political systems are superior to our own modified models.

Do not trust Li Keqiang. He is greatly influenced by westerners. He is China's Gorbachev. No man that says he doesn't trust his own country's economic data is a trust worthy person to lead the country. Only China haters say these kind of propaganda. He gave western media more ammo to damage our image.

 

[armchairPrivate]

^^^

Chinese communism? What's that? Communism is long dead. Communism didn't work, don't work, haven't work and will not work.

China Communism in name only. "China Communism" in bracket.

Adapt Adapt Adapt. You don't adapt you die. A country is a living thing not a piece of dead wood.