Friday, March 5, 2010

China News- 03.05.10 $CAF

·         China – takeaway on Wen’s comments from JPMorgan’s Q Wang - Chinese Premier Wen today delivered the annual government work report at the National People’s Congress (NPC). The report was largely in line with our expectations, re-iterating the stability and continuity of overall macro policies, with supportive fiscal policy and appropriately accommodative monetary policy. The Premier also re-iterated the importance of maintaining stable and relatively fast economic growth amid on-going uncertainty in the global economy and financial markets, while at the same time emphasizing the need to push for economic restructuring and managing inflation expectations.  Overall, this year’s work report in our view is fairly balanced on most fronts. In particular, while the CPI inflation target at 3%oya is somewhat on the low side compared to general market expectations (but is largely in line with our full-year inflation target at 3.2%), the Premier also emphasized that the global economic recovery is still on a fragile ground, and risks in the global financial sector still linger on.  

·         China - Wen Jiabao warned of “latent risk” in China’s banks and pledged to crack down on property speculation – Bloomberg 

·         China - China will sell 200 billion yuan ($29.3 billion) of bonds for a second year to help local governments fund infrastructure projects – Bloomberg 

·         Chinese banks – ICBC and Bank of China aim to slow loan growth in ’10; “We aim to pace the growth in accordance with corporate demand on both a monthly and quarterly basis,” ICBC Chairman Jiang Jianqing said at the National People’s Congress in Beijing today. Bank of China President Li Lihui said at the same meeting that loan growth in 2010 will slow from last year – Bloomberg 

·         China - will increase state reserves of commodities this year, the Ministry of Finance said. “The government will boost expenditure on increasing the reserves of grain, edible oil, non-ferrous metals, petroleum and other important materials,”  Bloomberg

·         China’s Shanghai Composite Index is poised to form a so-called dead cross pattern, a “bearish” indicator – Bloomberg

·         China real estate market discussed in pg 1 NYT article - nothing that hasn't been talked about in the press before; the article says that China is in the middle of a real estate boom but the question is whether it is near the end of a cycle that could threaten the world economy.  Chinese authorities are showing some signs of concern and are taking action to reign in the real estate

No comments:

Post a Comment