Showing posts with label World Bank. Show all posts
Showing posts with label World Bank. Show all posts

Thursday, June 18, 2009

19 June 2009 | China Economic Scan

19-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: World bank raises China growth forecast to 7.2%, China sees 120% increase in rail investment, China set to grant final approval for first IPO since September, CIC goes on global hiring spree, Chinese stocks rise to 11 month high.

Top 5 headlines

World Bank Raises China 2009 Growth Forecast to 7.2%

  • The World Bank raised its growth forecast for China this year and advised policy makers to delay until 2010 any additional stimulus plan to boost the world’s third-largest economy.
  • China’s economy will expand 7.2% in 2009 from a year earlier, up from a 6.5 percent forecast in March, the Washington-based lender said in a quarterly report released today in Beijing. Stocks gained after the announcement.
  • The World Bank joins Goldman Sachs Group Inc., Morgan Stanley and UBS AG. in raising growth forecasts this year after a 4 trillion yuan ($585 billion) stimulus package triggered record loans and surging investment.

China sees 120% rise in rail investment in first five months

  • China saw a surge of investment in railway construction as the country pledged to increase spending as an effort to buoy the world's third largest economy.
  • In the first five months, China pumped 168.9 billion yuan ($24.7 billion) in fixed-asset investment in railways, up 120% from a year earlier, the Ministry of Railways said in a statement Wednesday.
  • The money included 149 billion yuan for railway infrastructure construction, up 161.8% from a year ago, 3.328 billion yuan for railway upgrading, and 16.55 billion yuan for purchasing trains, according to the ministry.

China Set to Grant Final Approval for First IPO Since September

  • China’s securities regulator will grant final approval by tomorrow for the nation’s first initial public offering since September, two people familiar with the situation said.
  • Guilin Sanjin Pharmaceutical, Zhejiang Wanma Cable and Shenzhen Salubris Pharmaceuticals are the three candidates for getting written permission to sell stock in Shenzhen, supposedly.
  • “The securities regulator is still concerned about the benchmark’s performance,” said Sun Jian, a Shanghai-based analyst at Shenyin Wanguo Securities Co. “The market has been rising this week, which is an indication of sufficient liquidity and confidence.”

CIC goes on global hiring spree

  • China Investment Corp (CIC), the country's $200 billion sovereign wealth fund, said it would start a new round of global hiring to support an expansion of its operations as it seeks new overseas investments.
  • CIC, which currently employs about 200 people, will seek professional staff in 33 categories, including risk management, real estate, infrastructure, commodities and hedge fund investment, according to its website.
  • "We are a new company, so it's natural for us to hire more people to grow," a CIC spokeswoman said. She declined to indicate the exact number of people CIC plans to hire.

China’s Stocks Rise to 11-Month High; ICBC, Shenhua Advance

  • China’s stocks rose, driving the benchmark index to an 11-month high, after the World Bank raised its growth forecast for the country this year and Shenyin & Wanguo Securities Co. recommended buying machinery makers.
  • Industrial & Commercial Bank of China Ltd., the nation’s biggest listed lender, rose +2.6% and China Shenhua Energy Co., the No. 1 coal producer, gained +5.5%.
  • The country’s economy will expand 7.2% this year, up from a 6.5% forecast in March, the bank said. Sany Heavy Industry Co. climbed +4.9% after Shenyin & Wanguo said the company will benefit as property investment rebounds.

Financial Indicators:

Metric Value Point change % change
Hang Seng Index 17,777 -307.94 -1.70%
Shanghai Composite 2,854 43.78 1.56%
Shenzhen Component 11,152 111.14 1.01%
TAIEX 6,145 -51.38 -0.83%
CNY/USD 6.8355 -0.0027 -0.04%

Source: China Economic Scan

Wednesday, May 20, 2009

21 May 2009 | China Economic Scan

21-May-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: World Bank says China recovery hopes may be premature, BoC says China-Brazil yuan trade settlement not yet practical, Chinese overseas assets rose 23% to $2.92 trln in 2008, Shenzhen Development Bank to issue RMB 1.5 bln bonds, Chinese stocks close down slightly on Wednesday.

Top 5 headlines

World Bank Says China Recovery Hopes May Be Premature

  • “Until we see a recovery in private investment, it’s hard to get too excited about the future,” David Dollar, country director for China, said at a forum in Beijing.
  • Private investment, the main driver of growth, was “way down” in Q1, Dollar said, without citing a figure. Manufacturers have excess capacity and “a lot of the real-estate sector is over-built,” he said.
  • Private investment is “the main source of job creation,” Dollar said. “It’s very important for private investment to come back if China’s going to be able to continue to grow at a high rate that is sustainable.”

China, Brazil Yuan Trade Will Take Years, Bank of China Says

  • China and Brazil’s plans to conduct bilateral trade in yuan and reais will be limited because the Chinese currency is still not fully convertible, Bank of China Ltd. said.
  • China is seeking to promote the yuan as an international currency after signing 650 billion yuan ($95 billion) in swap agreements with Argentina, Indonesia, South Korea, Hong Kong, Malaysia and Belarus in recent months.
  • “It may take a couple of years for China and Brazil to really start using yuan in trade because the currency is of limited use outside China,” said Shi Lei, an analyst in Beijing at the nation’s largest foreign-currency trader.

Overseas assets in 2008 soar to $2.92t

  • China's foreign financial assets rose 23% last year to reach a total of $2.92 trillion, the State Administration of Foreign Exchange (SAFE) said yesterday.
  • Of that amount, nearly $2 trillion, or 67%, were foreign exchange and gold reserves, the foreign exchange regulator said.
  • The outbound direct investment, however, was just $169.4 billion, accounting for 6% of the total foreign financial assets.

Shenzhen Development Bank to issue up to RMB 1.5 bln in bonds

  • Shenzhen Development Bank is planning to issue up to RMB 1.5 billion in 15-year bonds on May 26, sources reported.
  • Dagong Global Credit Rating Co has rated the bonds AA-. Haitong Securities and UBS Securities Co have been assigned as major underwriters for the issuance.
  • In the first quarter of this year, the bank's net profit jumped 12% year on year to RMB 1.12 billion, with basic earnings per share at RMB 0.36, up 6% from a year earlier.

Chinese stocks down 0.94% on Wed

  • Chinese stocks slipped on Wednesday - the Hang Seng fell -0.39% to 17476, and the Shanghai Composite fell -0.94% to 2651; however the Shenzhen Component rose slightly +0.28% to 10453, and the TAIEX was up +0.72% at 6704.
  • Coal stocks ended higher; Shanxi Coking, the biggest publicly traded coke producer in China, swelled +5.68% to RMB 7.82. Guizhou Panjiang Refined Coal jumped +8.15% to close at RMB 26.82. China Coal Energy, the country's second-largest coal miner by revenue, grew +2.10% to RMB 12.64.
  • Gold firms were also gainers; Zhongjin Gold jumped +7.89% to close at RMB 66.88. Shandong Gold Mining, China's second-largest listed gold miner, grew +2.44% to RMB 40.67. Zijin Mining Group increased +1.02% to RMB 8.88.

Financial Indicators:

Metric Value Point change % change
Hang Seng Index 17,476 -68.19 -0.39%
Shanghai Composite 2,651 -25.27 -0.94%
Shenzhen Component 10,453 29.04 0.28%
TAIEX 6,704 48.03 0.72%
CNY/USD 6.8299 0.0007 0.01%

Source: China Economic Scan