China Financial Daily

December 11, 2009

The Central Economic Work Conference held tomorrow or for the steady growth of the keynote

Filed under: Financial News — Tags: , , — Nancy @ 11:58 am -0800

The Central Economic Work Conference held tomorrow or for the steady growth of the keynote
The Central Economic Work Conference is not as media coverage in advance prior to the convening of the meeting will be held as scheduled December 5. Some analysts expect the overall economic situation in actively good, Paul is not very urgent task of growth, “protect growth” will be the keynote or the “steady growth” as a substitute a few days ago the CPC Central Committee Political Bureau meeting also proposed a ” 5 greater emphasis on “concept.

The annual Central Economic Work Conference is the highest decision-making at the central level meeting by reviewing the pros and cons over the past year’s economic work, look to the future economic trends and identify the overall tone for the coming year’s policy plans for next year fiscal policy, monetary policy and other macro-control policies.

The economy overall tone of the Central economic conference on the most talked about things, widely expected before the economic work conference in 2010 to develop economic fundamentals will continue in 2009 content.

And since 2008 began, the overall tone is the central economic policy by a number of characters formed by the end of 2007 Central Economic Work Conference to determine the “total control, steady prices, adjusting structure, promoting balanced” 12-character principle, then as the economic situation has tremendous changes in economic fundamentals in 2008, took place four times larger changes in the beginning of the “anti-inflation, anti-overheating”, mid-year change to “to maintain growth, control inflation,” in September 2008 due to the international financial crisis, the domestic economy tone evolved into full “protect growth”, in November 2008 have been adjusted to “maintain growth, expand domestic demand.”

2009 is the continuation of the basic economic fundamentals in 2008 and made some adjustments to the contents of the entire macroeconomic adjustment along the “Bao growth, structural adjustment, expansion of domestic demand, increase people’s livelihood,” the tone to carry out, and later as the situation changes, some economists believe that should be added “to preserve employment, anti-inflation”, and so on.

For these reasons, coupled with the high-level central economic work conference, a number of occasions before the emphasis on policy continuity and stability, so economists believe the economy in 2010 will continue in 2009 the total content of the tone and make appropriate adjustments.

At that time, taking into account the upward trend in the economy stabilized and gradually increased, the overall situation in actively good, Paul is not very urgent task of the growth of the State Information Center, Fan Jianping, director of economic forecasting that “protect growth” will be “steady growth”, the tone of the substitution; , taking into account the economic growth of the structural problem is serious, “structural adjustment” is considered to be “steady growth” after another economic policy; and perceived as being included in the economic fundamentals were to expand domestic demand and promoting consumption, taking into account the central leaders repeatedly that the people’s livelihood will never be excess investment in the market to determine the people’s livelihood will also be one of the economic fundamentals in 2009; As for the issue of inflation expectations, due next year, less the probability of inflation, many economists believe that “Prevention of inflation or the management of inflation expectations” are not even will be placed in the central economic fundamentals.

However, the above forecast may all come to nothing, from the official information, whether it is nine-character principle, 12-character principle, or 16-character principle, in 2010, probably will not be mentioned, “multi-character approach may not be mentioned, even Paul would not mention growth or stable growth, but in other words to replace. “one official said that annual economic work conference held prior to the CPC Central Committee Political Bureau meeting was considered a unified economic thinking,” set the tone will be, ” “In view of the convening of the Central Economic Work Conference of the Central Political Bureau of the Conference away from just less than a week away, we believe that the policy positions of the two meetings will remain united.” Goldman Sachs Gao Hua Qiao Hong China’s macro-economist, said in the report.

In the November 27th CPC Central Committee Political Bureau, the Central Committee put forward the “five greater emphasis on” concept, that is, pay more attention to improving the quality and efficiency of economic growth; greater emphasis on promoting the transformation of the mode of economic development and economic restructuring; greater emphasis on promoting reform and opening up and independent innovation, enhance the vitality and momentum of economic growth; greater emphasis on improving people’s livelihood and maintain social harmony and stability. Canadian co-ordinate domestic and international focus on the overall situation.

“It’s five more attention will likely be next year’s general guidelines for economic work.” Some economists foresight judgments, Goldman Sachs Gao Hua on the “five more attention” also made a more detailed interpretation, first of all, the first an emphasis that the Government priority is to prevent over-investment, inhibit excess production capacity, improve energy efficiency in industrial output; Secondly, the Government will be in the medium to long term investment and export-led economy by steering and stimulating domestic demand linked. The third emphasis that the Government will increase investment and accelerate the development of strategic research and development of new industries concerted action. The fourth is that the process of urbanization, the Government will actively promote the coordinated development of the region and to strengthen the housing security, improve education, health and safety work. Finally an emphasis that the Government has clearly set out the decision-making process will take into account the external environmental factors.

With the economic fundamentals is closely related to policy objectives, many people think that the future government will adhere to 8% economic growth target, but more people believe that economic work conference, this formulation may be diluted. For the monetary policy objective, prior to the information from the China Banking Regulatory Commission show that the size of next year, additional credits may be 6-7 trillion, broad money growth (M2) target to maintain 17% growth rates. While those from the investment bank’s forecast is slightly higher, “We expect the bank of new loans in 2010 is 7-8 trillion yuan, M2 growth target may be between 17-18%.” Morgan Stanley said.

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Department of Commerce National thoroughly export tax rebate policy for next year remain unchanged

Filed under: Financial News — Tags: , , — Nancy @ 11:55 am -0800

Department of Commerce National thoroughly export tax rebate policy for next year remain unchanged
December 11, the latest customs data show that in November this year for the first time monthly foreign trade data to achieve positive growth year on year, but this “good news” has been unable to reverse the negative growth of foreign trade this year end.

A critical moment of economic recovery, export policy, how they will vote, becoming the current relevant departments are required to sit down to discuss and come up with specific policy matter.

“China Times” reporter learned from the Ministry of Commerce, recently the Ministry of Commerce is a broad survey of foreign trade enterprises, and large trade organizations, local commerce departments and associations held talks on the one hand learn more about the actual situation of export enterprises, on the other end of this month to convene national work conference on business thoroughly.

The Commerce Department insider told us, research results show that the current trade situation is still not optimistic about a shortage of orders, trade protection, export enterprises face two major challenges.

The sources also said that next year’s foreign trade policy do not happen much variation in the export tax rebate will neither increase nor reduction, which is probably the only variable in the exchange rate; while this research shows that many enterprises is what is most concern.

Cold calling the year’s foreign trade

Almost reached a consensus that the negative growth of foreign trade this year is a foregone conclusion.

According to customs statistics, the month in November, China’s foreign trade value of 208.21 billion U.S. dollars, compared with same period last year (below) increase of 9.8%, growth of 5.4%.

Although China’s total import and export in November the first monthly year on year to achieve positive growth this year, but the previous 10 months of data, the first 10 months of negative growth in foreign trade are the annual negative growth is a foregone conclusion. According to customs statistics, from January to November, China’s total foreign trade import and export value of 1.964 trillion U.S. dollars, down 17.5%. The accumulated trade surplus of 177.96 billion U.S. dollars, 30.6% decrease year is expected to about 190 billion U.S. dollars of trade surplus.

This is in the research was fully turned out well.

According to reports, this study focused on foreign trade enterprises in the Yangtze River Delta area, including written questionnaires, reports, and forums for various forms of research. Feedback back information display, although there are some exporters orders pick up, but the current trade situation remains very serious, and the main difficulties one of enterprises of trade protectionism, one external demand has not yet fully restored.

Chinese Academy of Social Sciences at the December 7 Blue Book published in 2010 that the economy, this year’s foreign trade has several characteristics: the second half began to decline in the growth of trade narrowed in July to October is the recovery period, export trade back to the more than 100 billion U.S. dollars; trade order changes, the ASEAN position in the market rise; the export tax rebate has come to the limit, further increase the strength of its policy has been very little room for maneuver; international trade protectionism, China’s export trade frequently encountered trade remedy investigations. Predicted that the annual trade remedy investigations against China’s measures will be more than 100 since the amount involved would be up to 110 billion U.S. dollars.

Policy will remain basically unchanged

Although China’s import and export situation has undergone positive changes, but annual imports and exports is expected to decline by about 20% was achieved, these business people, told reporters.

Last year, the first negative growth of foreign trade, the government immediately proposed to work hard to maintain stable export growth. But after several months of hard work, China’s foreign trade has been for several months was stabilized situation, in this context, “efforts to promote exports steadily recovering” has become this year’s Central Economic Work Conference set for next year’s foreign trade, one of the main objectives.

But for next year’s external environment, the Central Economic Work Conference also not optimistic that “The world economic recovery, a firm foundation, the international financial crisis continues, pressure on global challenges.”

This is also happens to coincide with the Department of Commerce findings.

Although not identified specific targets for next year’s foreign trade growth, but the feedback from the province’s foreign trade information back to look at, the provinces have been working to restore the 2008 level as a goal.

Academy of Social Sciences Economic Research Institute of Finance and Trade Pei Chang Hung prediction: “Next year the import and export trade growth rate will be 10%, export growth rate will be close to 15%.”

“Stability and continuity” is the central economic work conference on next year’s foreign trade policy, the basic set the tone, so next year to encourage policies to stimulate exports will continue to implement the export tax rebate policies will not be too many variables.

Canton Fair in the fall, when the previous survey, Minister of Commerce Chen Deming on the public that the Government’s policy in line with WTO rules will not lightly quit.

Li Jian, researcher at the Ministry of Commerce Trade and NARL told reporters here the official announcement from the central economic work meeting information to see that next year China’s foreign trade will be more focus on coordinated development.

Exchange rate is the only variable

The RMB exchange rate movements may be next year, the only variable in the foreign trade policy.

With the United States and Europe frequently to yuan pressure on the market forecasts for the yuan to appreciate more and more. And many foreign trade enterprises in the signing of a long-term orders, the exchange rate issue has begun to consider, too.

It is understood that, through trade associations and reaches a questionnaire survey of enterprises shows that the RMB exchange rate issue is one of the issues businesses are most concerned about, many companies believe that foreign trade has just been a turnaround in the exchange rate can not be stable if the next year, then just pick up the foreign trade situation, No doubt once again fell into a trough.

Participate in a study of textile export enterprises in Shandong CEOs Ming-Te Liu told reporters that, for export enterprises, next year is the most difficult and most hard to get by year. Because next year the EU economy has started to recover, while the competition for orders will be more intense. Therefore, he believed that the government’s support for the export enterprises can not be reduced, in particular, the stability of the RMB exchange rate for exporters is particularly important.

The results of research from the Ministry of Commerce seems that the current situation of foreign trade has also benefited from the recovery of part of the RMB exchange rate stability.

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Most major stock markets in the Asia Pacific region rose

Filed under: Financial News — Tags: , — Nancy @ 11:52 am -0800

Most major stock markets in the Asia Pacific region rose
Mainly affected by the overnight impact of the New York stock market technical rebound in the Asia-Pacific region from 11 major stock markets were mostly higher.

The same day, Japan’s Tokyo Stock Exchange’s Nikkei 225 stock average rose 245.05 points to close at 10,107.87 points, or 2.48%. Seoul stock market composite index rose 4.17 points to close at 1656.90 points, or 0.25%. Manila, the Philippines Stock Exchange’s main index rose 24.56 points to close at 3031.13 points, or 0.82%.

Sydney, Australia Stock Exchange’s main index rose 28.5 points to close at 4635.2 points, or 0.62%. Singapore’s Straits Times Stock Index rose 18.89 points to close at 2800.75 points, or 0.68%.

In addition, Hong Kong’s Hang Seng Index rose 202.07 points to close at 21,902.11 points, or 0.93%. Chinese Taipei’s stock market-weighted index rose 117.16 points to close at 7795.07 points, or 1.53%.

However, the Bombay Stock Exchange Sensitive 30 Index fell 70.28 points to close at 17,119.03 points, down 0.41%. New Zealand’s NZX-50 index stocks fell 4.30 points to close at 3127.98 points, or 0.14%.

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