China Economy

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China manufacturing falls again

The HSBC China Manufacturing PMI (purchasing managers index) has been released for December, showing a second month of falls in the manufacturing sector. Although the measure, seasonally adjusted, rose from 47.7 to 48.7 from November to December, production still decreased (a reading below 50 is a contraction), with the index reading its lowest quarterly average

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China Links

China executes 12 people in single day – Yahoo! News – China has executed 12 people in a single day, including a man who bombed a local tax office. China Reveals Its Space Plans Up to 2016 – NYTimes.com – China plans to launch space labs and manned ships and prepare to build space stations

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China Links

December 29th China Readings from Sinocism: Australia Looks to China for Iron Ore Project – WSJ.com – Western Australia invited China to invest in a A$5.94 billion (US$6 billion) port and rail project that aims to open up a new iron ore province in the state’s Mid West after Wednesday stripping a Mitsubishi Corp.-led venture

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Chart of the Day: Shanghai Tower

Today’s chart comes from Doug Shorts blog, and shows the remarkable rise and fall of the Shanghai Composite stock index since 2000, with some resemblance to the Eiffel Tower: The above chart is in linear scale, which is not helpful in analysing the proper magnitude of rises and falls (a 50% drop from 2000 to

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When bubbles bite back

A cracking article was published yesterday in Caixin, discussing how China’s local governments, which are addicted to revenue from land sales, are feeling the pinch now that the volumes of land sales and prices are falling. The article also illustrates the corruption endemic within the Chinese economy: The development-ready land market, long a reliable revenue

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China Links

William Farris – Google+ – Another Protest, Another City Is Censored by Sina Weibo -… – Real-name registration crucial to microblog|Hot Issues|chinadaily.com.cn – BEIJING – It is an undeniable fact that Twitter-like microblogging services, or weibo, are developing rapidly in China. Seven microblogging sites with nearly 600 million accounts have opened in Beijing since the

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Here comes the Chinese burn

Over the last few days, a large selection of articles have appeared exposing cracks within the Chinese economy and suggesting that the China’s housing bubble might finally have burst. Paul Krugman, has finally weighed-in to the China debate drawing eerie parallels with the 1980s Japanese economy: Consider the following picture: Recent growth has relied on

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China Links

Courtesy of Sinocism: Taylor & Francis Online :: Response to David Wright’s Commentary – Journal of Strategic Studies – Volume 34, Issue 5 – Taylor & Francis Online :: Response to ‘Space, China’s Tactical Frontier’ by Eric Hagt and Matthew Durnin – Journal of Strategic Studies – Volume 34, Issue 5 – Taylor & Francis

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China links

Courtesy of Sinocism: Chinese scientists finish sequencing Genghis Khan descendant’s genome – Xinhua | English.news.cn – Joint sea & air patrol in East China Sea – Xinhua | English.news.cn – 人民日报-社交网络管理是各国共同课题 – Today’s People’s Daily p3. Management of Social Networking Sites is an issue in every country 唐季礼之谜 上海“东方好莱坞”开发争议 – 宏观 – 21世纪网 – 用车:坐豪华奥迪的局长们 – 宏观 – 21世纪网 –

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China links

Courtesy of Sinocism: China abroad: Sun Tzu and the art of soft power | The Economist – Crazy English couple go to court|Society|chinadaily.com.cn – BEIJING – The wife of Li Yang, founder of a well-known English education institution in China, Crazy English, is determined to divorce her husband and is fighting in court to get the properties

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The Chinese property market

Find below a useful background document on the Chinese property market from Jones Lang Lasalle. I could pick some holes in the macro analysis but I still found it reasonably balanced and a useful primer. SKMBT_C55011121514400 (1)

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China links

Courtesy of Sinocism: U.S. Air Force Study Reports Vulnerabilities in Drone C2 Systems | Digital Dao – Analysis: China’s $300 billion fund a wake-up call to U.S. – Yahoo! News – BEIJING (Reuters) – China’s plan for a new $300 billion sovereign wealth fund is as much a warning to Washington as it is a body blow

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China links

Courtesy of Sinocism: School bus safety draft regulation released – Xinhua | English.news.cn– BEIJING, Dec. 11 (Xinhua) — A draft regulation on school bus safety management was made public Sunday by the Legislative Affairs Office of the State Council, with the public invited to submit comments on it.The draft stipulates that local governments above the

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Slipping traction for Chinese stimulus

Recently, we saw the People’s Bank of China begin easing by cutting reserve requirement ratio ahead of a rather disappointing PMI figure. That 50 basis points cut made CNY400 billion available for banks to lend. It is always worth saying that central banks ease policy when things are getting bad, so for starters, I am

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China’s inflation bust

So then, Chinese inflation is falling precipitously: There’ll be more big falls in the next few months too with some big numbers from twelve months ago dropping out of the series. It’s not hard to see where such a swift change is coming from: Look at that food bust go! As Zarathustra predicted last month on the

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China links

Courtesy of Sinocism: US Feds Falsely Censor Popular Blog For Over A Year, Deny All Due Process, Hide All Details… | Techdirt – China would be proud Should Pearson Its Buy of Beijing’s Global Education Due To Insider Trading?– Absaroka says short global education and technology $gedu because Pearson may now cancel the deal. Pearson should

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Chinese inflation falls

Here’s some good news, if expected, from Bloomberg: China’s inflation cooled to the slowest pace in 14 months in November, giving policy makers more room to loosen policies as export growth slows because of Europe’s debt crisis. Consumer prices rose 4.2 percent from a year earlier, the statistics bureau said on its website. That was lower

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China’s ghost city busts

China’s most famous ghost city, Ordos in inner-Mongolia, has regularly been cited as a prime example of China’s unsustainable construction-led economy. Last year, AlJazeera posted an explosive video showcasing Ordos’ ghost apartments and frenetic pace of construction, which exemplified the “build it and they will come” approach that has underpinned the Chinese economy. Then Business

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China links

Courtesy of Sinocism: SEC sues four Chinese for insider trading – FT.com – Four Chinese citizens have been sued on civil charges of insider trading for allegedly making more than $2.7m in profits by buying shares of Global Education and Technology before the language-testing company announced its takeover by Pearson last month. The US Securities

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China’s capital flight

Exclusively from Michael Pettis’ newsletter: On Wednesday night, after the Chinese markets closed, the People’s Bank of China announced that it had cut the minimum reserve requirement by 50 basis points to 21% for the large banks, and lower for the smaller banks.  With the announcement coming just hours before announcements by the Fed, the ECB

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China links

Courtesy of Sinocism: 人民日报-李长春观看大型原创舞蹈诗剧《金面王朝》 – Saab Owner in Talks to Attract Investment in Carmaker from Chinese Bank – Bloomberg – State Construction Engineering Plans U.S. Takeover in Its $2 Billion Push – Bloomberg – China State Construction Engineering Corp. (601668), the nation’s biggest builder by market value, intends to buy a U.S. construction company next

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Inside China’s ugly PMI

China’s official manufacturing purchasing managers index (PMI) dipped below 50 for the first time since the recovery yesterday.  The headline PMI declined to 49, below consensus of 49.8. Looking into the components probably provides an even gloomier picture.  New exports order declined further to 45.6 from 48.6, indicating continued deterioration of global demand.  New orders

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China loosens

People’s Bank of China just cut the reserve requirement ratio by 50 basis points, effectively from 5 December 2011.  The last time when the RRR was changed was 14 June, which was a hike of RRR by 50 basis points.  RRR for large banks are currently standing at 21.5%, so the 50 basis points cut would reduce

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China links

Courtesy of Sinocism: China’s online supermarkets, a great entry-platform for internationals – xinhua-China’s flagship literature magazine launches English version – Pathlight: New Chinese Writing – MW Reiterating Strong Sell on FMCN | Muddy Waters Research – Focus Media Responds Further to Muddy Waters Allegations — SHANGHAI, Nov. 29, 2011 /PRNewswire-Asia-FirstCall/ – – South Asia’s water: Unquenchable thirst | The Economist –

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China’s capital misallocation

Exclusively from Michael Pettis newsletter: For years I have been arguing that the Achilles heel of the Chinese growth model is the unsustainable rise in debt that comes as a necessary consequence of capital misallocation fueled by bank lending. Capital misallocation, I argued, was the nearly inevitable consequence of high investment growth over many years

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China’s Flash PMI tanks

The Chinese Flash PMI for November just hit the market and it’s bad news falling from 51 in October to 48, a 32-month low. Worse, look at the components above. New export orders actually rose, as I expected, probably on US demand. That means the slowdown is internal and that’s before we get much flow through from

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The Pascometer red lines on China

You’ll have to forgive my focus on the media today. There’s no data so I’m forced to turn on my peers. Regular readers will know of the existence of the Pascometer. That is, Michael Pascoe’s uncanny ability to call the precise opposite of the impending outcome. Sadly for the nation, today he covers China and

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China links

Courtesy of Sinocism: 药监局原副局长为升官诬告局长 逛天上人间被拍_新闻_腾讯网 – 近日,国家药监局原党组成员、副局长张敬礼因涉嫌受贿罪、诬告陷害罪、非法经营罪在市二中院受审。检方指控张敬礼的受贿额为117万余元;非法出售自己编著的书籍经营额达2300余万元,非法获利1600余万元;指使他人寄出1300余封诬告陷害他人的信件。 China Plays Down Sea Disputes to Woo Asian Nations from U.S. ‘Siren Song’ – Bloomberg – British man found begging in Chinese city of Guangzhou – Telegraph – “I am not begging, but I need help,” he told the Guangzhou Information Times newspaper. “I was on my way to Hong Kong

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China links

Links courtesy of Sinocism: China vows closer military ties with ally North Korea amid lingering tensions on peninsula – The Washington Post – U.S.-China tension spills over into Asia summit | Reuters – China’s Wen warns outside forces off sea dispute | Reuters – China Bashing on the Campaign Trail – Businessweek – Presidential candidates love to talk tough

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China property sliding

If you’re wondering why the ASX kicked down this afternoon then you need look no further than this from Bloomberg: China’s home prices fell in 33 of 70 cities monitored by the government in October, the worst performance since it expanded property curbs and scrapped the reporting of its national average housing data this year.