Reforms helped China rise to 83 from 90 in the "Doing Business 2009" ranking by the World Bank , said the WB in a report on Wednesday.
The country's reforms made it easier to access credit, pay taxes and enforce contracts, said the report, the sixth in the annual series released by the WB and its private sector arm - the International Finance Corporation .
The report said regulatory reforms were gaining momentum worldwide. A record number of 239 countries and regions made reforms between June 2007 and June 2008. The top 10 reformers were Azerbaijan, Albania, Kyrgyz Republic, Belarus, Senegal, Burkina Faso, Botswana, Colombia, Dominican Republic and Egypt.
"Doing Business 2009" ranked 181 economies on the ease of doing business. Singapore kept its top ranking for the third year in a row. New Zealand was the runner-up, and the United States was in the third place.
Other high-ranking countries and territories in East Asia and the Pacific were China's Hong Kong Special Administrative Region, Japan, Thailand, Malaysia and South Korea.
The rankings were based on 10 indicators of business regulation that tracked the time and cost to meet government requirements in business start-up, operation, trade, taxation and closure.
Source:Xinhua
Wednesday, September 10, 2008
Taiwan reports trade deficit for two consecutive months
Foreign trade in Taiwan registered deficit for two consecutive months, according to figures from the Taiwan authorities.
The island reported trade deficit of 410 million U.S. dollars in July and 30 million U.S. dollars in August, the latest statistics indicated.
Although foreign trade in the first eight months this year still retained a favorable balance of 7.57 billion U.S. dollars, the figure was down 47 percent, or 6.7 billion U.S. dollars, from that of the same period of last year, the authorities said.
Experts said that sounded a "warning signal" to the local economy as the island, with a relatively small local market, relied heavily on foreign trade.
However, meanwhile, Taiwan's trade with the Chinese mainland remained robust. In the first half of this year, its export to the mainland surged 21.7 percent from the same period of last year, with the trade surplus reaching 24.4 billion U.S. dollars and expected to hit new high for the whole year.
The mainland has become "the most important source" of Taiwan's overall trade surplus, said its authorities.
Source: Xinhua
The island reported trade deficit of 410 million U.S. dollars in July and 30 million U.S. dollars in August, the latest statistics indicated.
Although foreign trade in the first eight months this year still retained a favorable balance of 7.57 billion U.S. dollars, the figure was down 47 percent, or 6.7 billion U.S. dollars, from that of the same period of last year, the authorities said.
Experts said that sounded a "warning signal" to the local economy as the island, with a relatively small local market, relied heavily on foreign trade.
However, meanwhile, Taiwan's trade with the Chinese mainland remained robust. In the first half of this year, its export to the mainland surged 21.7 percent from the same period of last year, with the trade surplus reaching 24.4 billion U.S. dollars and expected to hit new high for the whole year.
The mainland has become "the most important source" of Taiwan's overall trade surplus, said its authorities.
Source: Xinhua
Hong Kong stocks end lower on profit-taking
Profit-taking in blue chips after the benchmark index's sharp rise in the previous session pulled Hong Kong shares lower Tuesday.
The blue-chip Hang Seng Index fell 303.16 points, or 1.46 percent, to 20,491.11 after trading fluctuating between 20,299.97 and 20,543.15 during the session.
Turnover fell to 47.90 billion HK dollars (6.15 billion U.S. dollars from Monday's 68.41 billion HK dollars .
The index had risen 4.3 percent Monday on news of the bailout for Fannie Mae and Freddie Mac. Analysts said the local market is likely to continue to decline in the near term as global economic uncertainties remain an overhang.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 0.1 percent at 2,145.78 after two straight days of sharp falls. But turnover was light and analysts said China shares will likely fall further on concerns over a potential drop in corporate earnings and an increase in share supply.
China Mobile fell 2.2 percent to 84.00 HK dollars on profit- taking after it rose 4.8 percent Monday.
Cnooc, China's largest listed offshore oil-and-gas producer by capacity, dropped 3.5 percent to 10.46 HK dollars on falling crude oil prices.
PetroChina ended 2.3 percent lower at 9.28 HK dollars after rising 3.4 percent Monday.
Alumina and aluminum producer Chalco slumped 7 percent to 6.02 HK dollars on concerns over its margins.
Chinese banks fell on lingering concerns over earnings in the second half as the government is not likely to relax its monetary tightening measures, analysts said. Bank of Communications dropped4.3 percent to 8.54 HK dollars, China Construction Bank fell 1.6 percent to 6.10 HK dollars and Industrial and Commercial Bank of China was 1 percent lower at 5.23 HK dollars.
The properties sub-index fell 435.87 points, or 1.76 percent, at 24,354.75.
The commerce and industry sub-index went down 262.91 points, or 2.40 percent, to 10,712.88.
The utilities sub-index rose 187.57 points, or 0.43 percent, at 43,857.03.
The Finance sub-index slipped 259.71 points or 0.79 percent at 32,812.14.
Source: Xinhua
The blue-chip Hang Seng Index fell 303.16 points, or 1.46 percent, to 20,491.11 after trading fluctuating between 20,299.97 and 20,543.15 during the session.
Turnover fell to 47.90 billion HK dollars (6.15 billion U.S. dollars from Monday's 68.41 billion HK dollars .
The index had risen 4.3 percent Monday on news of the bailout for Fannie Mae and Freddie Mac. Analysts said the local market is likely to continue to decline in the near term as global economic uncertainties remain an overhang.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 0.1 percent at 2,145.78 after two straight days of sharp falls. But turnover was light and analysts said China shares will likely fall further on concerns over a potential drop in corporate earnings and an increase in share supply.
China Mobile fell 2.2 percent to 84.00 HK dollars on profit- taking after it rose 4.8 percent Monday.
Cnooc, China's largest listed offshore oil-and-gas producer by capacity, dropped 3.5 percent to 10.46 HK dollars on falling crude oil prices.
PetroChina ended 2.3 percent lower at 9.28 HK dollars after rising 3.4 percent Monday.
Alumina and aluminum producer Chalco slumped 7 percent to 6.02 HK dollars on concerns over its margins.
Chinese banks fell on lingering concerns over earnings in the second half as the government is not likely to relax its monetary tightening measures, analysts said. Bank of Communications dropped4.3 percent to 8.54 HK dollars, China Construction Bank fell 1.6 percent to 6.10 HK dollars and Industrial and Commercial Bank of China was 1 percent lower at 5.23 HK dollars.
The properties sub-index fell 435.87 points, or 1.76 percent, at 24,354.75.
The commerce and industry sub-index went down 262.91 points, or 2.40 percent, to 10,712.88.
The utilities sub-index rose 187.57 points, or 0.43 percent, at 43,857.03.
The Finance sub-index slipped 259.71 points or 0.79 percent at 32,812.14.
Source: Xinhua
Securities market dances to its own tune
The year 1986 is seen as the beginning of China's stock trading. On September 26 that year, on a small trading floor in Shanghai, two stocks were traded - Shanghai Feilo Acoustics Co Ltd and Shanghai Yanzhong Industrial Co Ltd. Some 1,540 shares worth 85,280 yuan changed hands that day.
The drama largely took place on the street outside the exchange. A local newspaper reported hundreds of eager punters, some of whom had stood in line from the day before, gathered in No 1806 Nanjing Xilu, where the first stock trading counter was located. "The crowd almost broke down the gate in front of the counter," according to the article.
From the start, China's securities market has been dancing to its own peculiar tune that has a different flavor and tempo from those of the markets in developed countries.
The lack of investment channels, with far more buyers than sellers, and the split equity ownership, with very limited share trading, had characterized and, said some, plagued the Chinese capital market before 2005. This caused the stock market to be extremely volatile and seen as "controlled" rather than an unshackled market.
It was not until 2005, when China launched a national share structure reform aimed at changing split equity ownership into a fully floated share structure, did the market begin to meet international standards.
Securities reform was no doubt a milestone in the history of the country's capital market. In the next two years, over 1,300 listed companies had converted their non-tradable State-owned shares into tradable ones.
By the end of 2007, 1,550 companies were listed on the Shanghai and Shenzhen stock exchanges, with a combined market value of 32.71 trillion yuan and accounting for 140 percent of the country's GDP, figures from the CSRC show.
Another major law introduced at the beginning of 2006 brought more sophistication into the capital markets once marked by embezzlement and lack of transparency.
The Company Law and Securities Law, enacted on Jan 1, 2006, were aimed at increasing corporate governance, creating more transparency and putting more power in the hands of shareholders. Seventy related rules and regulations have been published since the enactment of this law, smoothing out the market's rough edges from its early days.
Source: China Daily
The drama largely took place on the street outside the exchange. A local newspaper reported hundreds of eager punters, some of whom had stood in line from the day before, gathered in No 1806 Nanjing Xilu, where the first stock trading counter was located. "The crowd almost broke down the gate in front of the counter," according to the article.
From the start, China's securities market has been dancing to its own peculiar tune that has a different flavor and tempo from those of the markets in developed countries.
The lack of investment channels, with far more buyers than sellers, and the split equity ownership, with very limited share trading, had characterized and, said some, plagued the Chinese capital market before 2005. This caused the stock market to be extremely volatile and seen as "controlled" rather than an unshackled market.
It was not until 2005, when China launched a national share structure reform aimed at changing split equity ownership into a fully floated share structure, did the market begin to meet international standards.
Securities reform was no doubt a milestone in the history of the country's capital market. In the next two years, over 1,300 listed companies had converted their non-tradable State-owned shares into tradable ones.
By the end of 2007, 1,550 companies were listed on the Shanghai and Shenzhen stock exchanges, with a combined market value of 32.71 trillion yuan and accounting for 140 percent of the country's GDP, figures from the CSRC show.
Another major law introduced at the beginning of 2006 brought more sophistication into the capital markets once marked by embezzlement and lack of transparency.
The Company Law and Securities Law, enacted on Jan 1, 2006, were aimed at increasing corporate governance, creating more transparency and putting more power in the hands of shareholders. Seventy related rules and regulations have been published since the enactment of this law, smoothing out the market's rough edges from its early days.
Source: China Daily
Morgan Stanley tips new round of energy price hikes
Morgan Stanley said it expects China's CPI, a gauge of inflation, to drop from 6.3 percent in July to 5.5 percent in August, paving the way for another round of energy price hikes in the coming months.
"With the successful conclusion of the 2008 Beijing Olympic Games, Chinese policymakers will focus once again on macroeconomic management, so energy price normalization is likely to feature prominently in the post-Olympic policy package," said Morgan Stanley analyst Wang Qing.
The government raised gasoline and diesel prices by 17-18 percent in June, while electricity charges for commercial units went up by 0.025 yuan per kWh from July 1.
Chinese oil refiners have suffered massive losses due to the gap between international crude oil prices and the prices of refined petroleum products, which remain controlled by the government.
Morgan Stanley suggested if the prices of refined products, electricity and coal were raised by 10 percent, it would cause the producer price index to increase by 0.88 percent, 0.44 percent and 0.23 percent respectively, while the CPI would increase by 0.35 percent, 0.52 percent and 0.03 percent respectively.
"Although the impact of energy price normalization on the CPI seems affordable, energy prices will not be raised to such a great extent. Refiners have been under less pressure recently due to a sharp fall in the crude oil price," said Wei Weixian, an economist from the University of International Business and Economics.
"And many industries have suffered from higher raw material and labor costs, so I predict that energy prices will not surge by 10 percent in the short term, and are more likely to rise by up to 5 percent," he added.
However, Cai Zhizhou, an economist from Peking University, disagreed.
He said that a 10 percent hike in energy prices would be "normal" and not have a major impact on CPI.
"And increasing energy prices is an important way to optimize the industry structure, so hi-tech and environmentally friendly firms can come to the fore."
Source: China Daily
"With the successful conclusion of the 2008 Beijing Olympic Games, Chinese policymakers will focus once again on macroeconomic management, so energy price normalization is likely to feature prominently in the post-Olympic policy package," said Morgan Stanley analyst Wang Qing.
The government raised gasoline and diesel prices by 17-18 percent in June, while electricity charges for commercial units went up by 0.025 yuan per kWh from July 1.
Chinese oil refiners have suffered massive losses due to the gap between international crude oil prices and the prices of refined petroleum products, which remain controlled by the government.
Morgan Stanley suggested if the prices of refined products, electricity and coal were raised by 10 percent, it would cause the producer price index to increase by 0.88 percent, 0.44 percent and 0.23 percent respectively, while the CPI would increase by 0.35 percent, 0.52 percent and 0.03 percent respectively.
"Although the impact of energy price normalization on the CPI seems affordable, energy prices will not be raised to such a great extent. Refiners have been under less pressure recently due to a sharp fall in the crude oil price," said Wei Weixian, an economist from the University of International Business and Economics.
"And many industries have suffered from higher raw material and labor costs, so I predict that energy prices will not surge by 10 percent in the short term, and are more likely to rise by up to 5 percent," he added.
However, Cai Zhizhou, an economist from Peking University, disagreed.
He said that a 10 percent hike in energy prices would be "normal" and not have a major impact on CPI.
"And increasing energy prices is an important way to optimize the industry structure, so hi-tech and environmentally friendly firms can come to the fore."
Source: China Daily
Share issues paced
The securities regulator said yesterday it will continue to control new share issues to balance supply and demand in the capital market.
"Over the past eight months, the pace of new share issues has slowed," an anonymous official from the China Securities Regulatory Commission said.
There were 73 new mainland listings by the end of August, the official said. In the first half, 59 companies went public at a rate of about 10 initial public offerings per month. That number fell to nine in July and five in August.
On Monday, the CSRC approved China Merchants Securities' plan to issue 358.5 million shares.
" it's still too early to say when the IPO will be, as there are still a lot of procedures and requirements to get through," the official said.
Everbright Securities Co is in the same boat.
The securities regulator has kept another 30 companies waiting as it tries to control the pace of new share issues on the market.
The regulator is planning to release new inquiry system rules to guide the pricing of new shares.
"The current inquiry system gives new shares a market-oriented price, but some market players could flout the rules. The CSRC will strengthen supervision and punishment," the official said.
"Over the past eight months, the pace of new share issues has slowed," an anonymous official from the China Securities Regulatory Commission said.
There were 73 new mainland listings by the end of August, the official said. In the first half, 59 companies went public at a rate of about 10 initial public offerings per month. That number fell to nine in July and five in August.
On Monday, the CSRC approved China Merchants Securities' plan to issue 358.5 million shares.
" it's still too early to say when the IPO will be, as there are still a lot of procedures and requirements to get through," the official said.
Everbright Securities Co is in the same boat.
The securities regulator has kept another 30 companies waiting as it tries to control the pace of new share issues on the market.
The regulator is planning to release new inquiry system rules to guide the pricing of new shares.
"The current inquiry system gives new shares a market-oriented price, but some market players could flout the rules. The CSRC will strengthen supervision and punishment," the official said.
Rebuilding lifts industry
Post-quake reconstruction in Sichuan province, expected to top 1 trillion yuan in the next few years, is set to give a much-needed lift to the building materials industry, threatened by rising costs and dwindling investment.
Latest official estimates indicate that demand for cement and steel will amount to 370 million tons and 37 million tons, respectively, to rebuild infrastructure, housing and other public facilities. Huge demand is expected for other building materials such as piping, tiles and bricks. Literally trillions of standard bricks will be needed.
"A huge increase in demand for all kinds of building materials will benefit not only the producers in that region but also many others around the nation," Luo Guo, a building materials analyst at Orient Securities in Shanghai, said.
Before the earthquake, Sichuan was largely self-sufficient in cement. Provincial cement sales amounted to 62.14 million tons in 2007, or 4.5 percent of the nation's total.
Transport costs make it unprofitable for outside cement producers to sell in Sichuan. It costs an extra 50 yuan to transport the cement 100 km.
But all this is about to change. Cement production in Sichuan will not be able to meet projected demand when reconstruction work shifts into high gear in the coming months. For this reason, there will be no alternative but to buy cement from manufacturers in other provinces at prices that will cover transport costs.
"The tightening supply and demand relationship is likely to drive up cement and other building material prices not only in Sichuan province but also throughout the nation, helping to boost the industry's profit margins as a whole," Hong Liang, a building materials analyst at China Galaxy Research in Beijing, said.
In the first half of this year, the average profit margin of listed cement makers located in or near Sichuan rose by 5 percentage points from the previous year, Hong said. Much of that increase was attributed to the price jump after the May 12 earthquake.
In the first five months, total domestic cement output rose by 9 percent to 514 million tons. From January to May, cement sales climbed by 23.6 percent to 160.7 billion yuan, while cement prices rose 10.1 percent year-on-year. In the same period, the cement industry posted profit of 8.4 billion yuan, up 65.4 percent from a year earlier on higher sales and prices.
Those results are due to strong demand from the building boom, which had fizzled out by the middle of the year. The credit tightening policy introduced to combat escalating inflation sent the building industry into a tailspin and demand for cement and other building materials plummeted. At that time, the industry faced an overcapacity threat that could have severely damaged producer earnings, analysts said.
But expected demand from Sichuan is brightening the industry outlook. "Increased demand for cement and other building materials in Sichuan is expected to last for at least three years until the reconstruction work is finished," Hong at China Galaxy said.
Source: China Daily
Latest official estimates indicate that demand for cement and steel will amount to 370 million tons and 37 million tons, respectively, to rebuild infrastructure, housing and other public facilities. Huge demand is expected for other building materials such as piping, tiles and bricks. Literally trillions of standard bricks will be needed.
"A huge increase in demand for all kinds of building materials will benefit not only the producers in that region but also many others around the nation," Luo Guo, a building materials analyst at Orient Securities in Shanghai, said.
Before the earthquake, Sichuan was largely self-sufficient in cement. Provincial cement sales amounted to 62.14 million tons in 2007, or 4.5 percent of the nation's total.
Transport costs make it unprofitable for outside cement producers to sell in Sichuan. It costs an extra 50 yuan to transport the cement 100 km.
But all this is about to change. Cement production in Sichuan will not be able to meet projected demand when reconstruction work shifts into high gear in the coming months. For this reason, there will be no alternative but to buy cement from manufacturers in other provinces at prices that will cover transport costs.
"The tightening supply and demand relationship is likely to drive up cement and other building material prices not only in Sichuan province but also throughout the nation, helping to boost the industry's profit margins as a whole," Hong Liang, a building materials analyst at China Galaxy Research in Beijing, said.
In the first half of this year, the average profit margin of listed cement makers located in or near Sichuan rose by 5 percentage points from the previous year, Hong said. Much of that increase was attributed to the price jump after the May 12 earthquake.
In the first five months, total domestic cement output rose by 9 percent to 514 million tons. From January to May, cement sales climbed by 23.6 percent to 160.7 billion yuan, while cement prices rose 10.1 percent year-on-year. In the same period, the cement industry posted profit of 8.4 billion yuan, up 65.4 percent from a year earlier on higher sales and prices.
Those results are due to strong demand from the building boom, which had fizzled out by the middle of the year. The credit tightening policy introduced to combat escalating inflation sent the building industry into a tailspin and demand for cement and other building materials plummeted. At that time, the industry faced an overcapacity threat that could have severely damaged producer earnings, analysts said.
But expected demand from Sichuan is brightening the industry outlook. "Increased demand for cement and other building materials in Sichuan is expected to last for at least three years until the reconstruction work is finished," Hong at China Galaxy said.
Source: China Daily
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