Arab Today, arab today china looks within to sustain growth
Last Updated : GMT 01:38:25
Arab Today, arab today
Arab Today, arab today

China looks within to sustain growth

Arab Today, arab today

Arab Today, arab today China looks within to sustain growth

Beijing - Arabstoday

April comes as the ‘Monday morning\' for China. After the hangover of spring festivals and plant shutdowns, it is down to business. After all, what the government does now, will set the course for the rest of the year and the message it wants to send out is clear: Prepare for a disappointment, but get pleasantly surprised. Unusually sensitive to policy statements, Chinese investors are keeping their fingers crossed after a lacklustre first quarter. The perpetually depressed stock markets have triggered an outpouring of anger and impatience on local blogs. The Shanghai and Shenzhen bourses are being branded as ‘meat chopper\' markets with indices destined to fall, irrespective of the economic climate or profit lines of companies. The Shanghai Composite had one of the world\'s poorest performances in the first quarter of 2012, rising a meagre 2.88 per cent against Nasdaq\'s gain of 18.67 per cent and Tokyo\'s 19.26 per cent. Last year it ended up as Asia\'s worst performer, declining nearly 22 per cent, despite China clocking one of the world\'s fastest GDP growths at 9.2 per cent. Contradiction The contradiction extends into the IPO (initial product offering) market as well. Even as global initial public offers remained weak in the first quarter, stock exchanges in Hong Kong, Shenzhen and Shanghai were among the top five fund raisers. Of the top 20 global IPOs this quarter, eight were listed on Asian stock exchanges. The largest Asian IPO was the $794 million (Dh2.91 billion) listing of China Communications Construction in Shanghai. So is there any indication that the country\'s relatively sound GDP numbers will translate into strong stock market performance in the months to come? Beijing will cut its 2012 growth target to an eight-year low of 7.5 per cent next week and hold the core inflation target at around 4 per cent. Major indicators are still at encouraging levels. The services sector expanded strongly in March and business confidence hit an 11-month high. But to maintain this momentum, the government needs to artificially stoke consumption. Throughout the country, retail outlets have suffered a slowdown as old stimulus policies expired without being replaced with new ones. Consumer spending has not moved fast enough in the first quarter. The value of retail sales of consumer goods increased by 10.8 per cent in Jan-Feb, lower than the 13.3 per cent growth of the last two months of 2011. Now, in a fresh ‘Big Brother\' attempt to shepherd its army of consumers, the Ministry of Commerce dubbed April as the ‘first month to promote consumption\'. More than 80,000 commercial enterprises, including malls and restaurants, throughout the country are set to join a programme to promote spending, but the nature of subsidies or incentives to be provided by the state is still unclear, or whether it is commercially viable at all. Efforts are also on to persuade banks to extend credit lines more generously. China\'s state-owned banks have come in for a fair amount of criticism due to their monopolistic and ‘stingy\' behaviour. Profit announcements last week only added fuel to frustration. The profit of 12 listed banks, amounting to almost 842 billion yuan (Dh488.75 billion), accounted for about half of the combined earnings of all public companies in China. Taming the banks The five biggest — Industrial and Commercial Bank of China, Bank of China, China Construction Bank Corp, Agricultural Bank of China and Bank of Communications — made about 1.3 trillion yuan in interest income alone last year. But this did not go far to benefit investors in bank shares. An A-share index that tracks listed banks rose by just 2.35 per cent in the first quarter of 2012. Complaints of low deposits rates, excessively high bank fees and reluctance to give credit to small companies have triggered unprecedented public anger. How China beefs up consumer spending and curbs bank power will be keenly watched by investors. From: Gulfnews

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china looks within to sustain growth Arab Today, arab today china looks within to sustain growth

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday