China will continue to prioritize cutting the edge prices and maintain its prudent monetary policy, the central bank said after data showed cooled inflation and higher lending in August. "Some factors that drive prices upward have been contained but not eliminated, while inflation remains relatively high," the People's Bank of China said in a statement on its website yesterday. It dublicated that stabilizing overall price levels remained the top priority of macro-economic regulation, and the country would  keep the growth of credit stable and moderate. Some state-owned lenders have been ordered to freeze at least 20 billion yuan (3.1 billion…

"Select USA!" A U.S. commerce delegation chief told participants at China's largest investment and trade fair. For the debt-ridden Uncle Sam, China may represent money and hope. At the 15th China International Fair for Investment and Trade (CIFIT) nations are extending their "olive twigs" to Chinese investors. Andrzej Juchniewicz (director of the China Representative Office of Polish Information and Foreign Investment Agency) said Poland's geographic location at the center of the European Unionoffers convenient transportation and well-educated labor that match Chinese businesses' preference of investing in auto  manufacturing and IT industries. "We are looking for Chinese investors. Actually many excellent…

Minister of Commerce Chen Deming said Thursday that, The Chinese government will provide strong policy support for outbound investment. China will explore some domestic qualified and active technological development zones and give full play to their advantages in line with the development of China's overseas trade and economic cooperation regions - Chen said at a forum held at the 15th China International Fair for Investment and Trade (CIFIT) held in China' s southeastern coastal city of Xiamen. The protection mechanism for investors ought to be perfected in order to promote overseas enterprises' capacity  for risk prevention.

Over last month in August 2011, Producer Price Index (PPI) for manufactured goods rose by 0.1 percent  and increased 7.3 percent year-on-year. The purchasing price index for manufactured goods rose 0.2 percent over last month, and soared 10.6 percent year-on-year. From January to August 2011, the year-on-year PPI increased 7.1 percent, and the purchasing price index for manufactured goods surged 10.4 percent.The year-on-year change of producer prices for means of production increased 8.0 percent. Of the total, producer prices for mining and quarrying industry increased 18.8 percent; that of raw materials industry and machining industry correspondingly up by 11.6 percent…

CER editorial staff recently attended a lunch address by CLSA’s China guru and occasional CER columnist Andy Rothman, the person, who remains cheerfully bullish on China. Rothman doesn’t believe  bad local government debt is a challenge, and that the worst risk China faces in the property markets is that it might drive prices down too far by accident. He also thinks inflation is being managed quite well. Rothman maybe is a bit short on company, especially in the equity and bond markets. The value of US dollar-denominated debt issued by Chinese companies dropped 1.5% in August. In the stock markets,…

Long a target of US criticism on a range of issues, China will raise its own urgent concerns about America's shortcomings during an annual meeting in Washington. Led by Vice-Premier Wang Qishan, a frequent visitor to the US capital, the Chinese delegation will urge its US counterparts to tackle the country's massive budget deficit. The US deficit is expected to swell to a record amount this year because of a weak economy and continuation of tax cuts for the rich. Zhu Guangyao, China's vice-finance minister, told reporters ahead of the Strategic and Economic Dialogue: "We are paying a lot of…

China’s five biggest banks posted first-half profits that surpassed the total of their 14 largest U.S. and European rivals, highlighting the Asian nation’s financial power as other economies falter. Industrial & Commercial Bank of China (601398) Ltd. said yesterday net income rose 29 percent to a record $17 billion, pushing combined profits of the nation’s biggest banks to $57 billion and spurring its shares higher today. Bank of America Corp. (BAC) and Royal Bank of Scotland Group Plc posted losses as the U.S. economic recovery weakened and Europe’s debt crisis deepened. China’s banks have increased profits as the world’s second-…

PBoC announced Tuesday that both base deposit and lending interest rates are raised by 25bps: While interest rates on demand deposits are kept unchanged, those on time deposits of two years or longer maturity are raised by 46-60bps.   Our views:   1)This is a surprise to us and the market consensus.   2)This suggests that 3Q GDP growth in 3Q and September CPI inflation-to be released this Thursday-may have also surprised to the upside.   3)This rate hike's key purpose is to manage inflation expectations, including property prices, with a view to easing the impact of negative real interest…

BEIJING - Renowned Chinese liquor producer Kweichow Moutai Co Ltd announced Monday its annual net profit in 2010 rose 17.13 percent year-on-year on strong market demand. Its net profit hit 5.05 billion yuan ($769.17 million), the Guizhou-based firm said in its 2010 annual report filed to Shanghai Stock Exchange. The company's annual business revenue increased 20.3 percent from one year earlier to 11.63 billion yuan while earnings per share stood at 5.35 yuan. The economic rebound accelerated the development of liquor industry despite rising raw material prices, said the report.

China’s stocks rose the most in more than 10 months after Bank of China Ltd. (601988) reported record profit and investors speculated the Chinese government is increasing fiscal spending to bolster the world’s second-biggest economy. Bank of China, the nation’s third-largest bank, led a gauge of lenders to the second-biggest gain among industry groups after profit surged 28 percent. China Railway Group Ltd. (601390) jumped 2.5 percent and Tianjin Capital Environmental Protection Group Co. surged 10 percent after Shanghai Securities News reported China plans to spend over 2.3 trillion yuan for new subway lines and sewage treatment. PetroChina Co. and…