Conditions are favorable for China to achieve the 8 percent economic growth target it set this year, Zhang Yutai, president of the Development Research Center of the State Council said here Sunday at the China Development Forum 2009.
Zhang's conclusion was based on the 4-trillion-yuan (585 billion U.S. dollars) economic stimulus package, 500-billion-yuan tax cut and industry support plans. These would help boost the economy, he said.
According to preliminary statistics, the 4-trillion-yuan stimulus package was expected to contribute 1.5 percent to 1.9 percent to the economic growth this year, Zhang said.
The country's gross domestic product (GDP) rose 9 percent last year. The Chinese government has set an 8 percent GDP growth target for 2009.However, the World Bank forecast China's GDP would grow 7.5 percent in 2009. The bank Wednesday cut its forecast for China's 2009 economic growth yet again to 6.5 percent from 7.5 percent. Its prediction stood at 9.2 percent Last November.
China's economic development was facing three major challenges -- the global financial crisis, periodical economic adjustment and extensive economic growth model, he said. Beginning late last year, the government announced aggressive measures to ease the domestic impact of the global downturn. These included a 4-trillion-yuan stimulus package, a plan to expand rural home appliance purchases and support plans for key industries.
These measures were timely and decisive, and had helped boost market confidence, said HSBC Group chairman Stephen Green. China was in the stage of urbanization, industrialization and consumption upgrading and the fundamental of the country's economic development remains unchanged, Zhang said.
"There are great potentials in domestic demand, which are powerful engine to boost China's economic development," he said. Vice Finance Minister Wang Jun listed five key aspects where an active fiscal policy could be carried out to enlarge domestic demand, such as governmental spending, income rise, improvement on living standard, and technology innovation and energy saving.
To expand governmental investment in national key construction projects was a most active, most direct and most efficient measure to stimulate demand, said Wang.Another measure was to reduce financial burden on companies and residents through tax cuts, rebates and exemptions.
"The 950 billion yuan fiscal deficit in this year's national budget accounts for less than 3 percent of GDP. It is under our total control compared with China's economic foundation and a strengthened finance," said Wang.
According to preliminary statistics, the 4-trillion-yuan stimulus package was expected to contribute 1.5 percent to 1.9 percent to the economic growth this year, Zhang said.
Vice Finance Minister Wang Jun listed five key aspects where an active fiscal policy could be carried out to enlarge domestic demand, such as governmental spending, income rise, improvement on living standard, and technology innovation and energy saving.
Source:BEIJING, March 22 (Xinhua)
Sinopec confirms 2-bln-USD takeover of Tanganyika Oil
China Petrochemical Corp., or Sinopec Group, on Saturday confirmed it has signed a deal to buy Canada's Tanganyika Oil Co. Ltd. for 2.07 billion Canadian dollars(2 billion U.S. dollars, or 13.7 billion yuan).
According to an agreement signed between the two companies, the Chinese refiner has agreed to pay 31.50 Canadian dollars per share. The price represented a 8.8 percent premium to the closing price of 28.95 Canadian dollars on Friday.
The deal is subject to approval from China's government, a source at Sinopec Group told Xinhua.
Sinopec International Petroleum Exploration and Production Corp. (SIPC) made the bid to buy all Tanganyika outstanding shares. SIPC is Sinopec Group's subsidiary that undertakes overseas investments and operations in the upstream oil and gas sector.
The acquisition will be funded through SIPC's internal resources, Tanganyika said in a statement.
Tanganyika focuses on its operating interests in two Syrian production sharing agreements covering the Oudeh Block and the Tishrine and Sheik Mansour Blocks.
During the first half of 2008, its average gross field production was 16,670 barrels of oil per day.
Source: BEIJING, Sept. 27 (Xinhua)
According to an agreement signed between the two companies, the Chinese refiner has agreed to pay 31.50 Canadian dollars per share. The price represented a 8.8 percent premium to the closing price of 28.95 Canadian dollars on Friday.
The deal is subject to approval from China's government, a source at Sinopec Group told Xinhua.
Sinopec International Petroleum Exploration and Production Corp. (SIPC) made the bid to buy all Tanganyika outstanding shares. SIPC is Sinopec Group's subsidiary that undertakes overseas investments and operations in the upstream oil and gas sector.
The acquisition will be funded through SIPC's internal resources, Tanganyika said in a statement.
Tanganyika focuses on its operating interests in two Syrian production sharing agreements covering the Oudeh Block and the Tishrine and Sheik Mansour Blocks.
During the first half of 2008, its average gross field production was 16,670 barrels of oil per day.
Source: BEIJING, Sept. 27 (Xinhua)
China banking regulator denies report on lending ban to U.S. banks
BEIJING, Sept. 25 (Xinhua) -- The China Banking Regulatory Commission (CBRC) on Thursday denied a media report in Hong Kong that it has told domestic banks to halt interbank lending to U.S. banks.
"The regulator has never, through any channel, issued a statement or told domestic commercial banks not to lend to U.S. financial institutions," the CBRC said in a statement.
The South China Morning Post reported on Thursday that the regulator ordered local banks to halt interbank lending to U.S. banks to avoid possible losses during the financial crisis.
The newspaper cited unidentified sources as saying that the ban applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
The South China Morning Post had carried an irresponsible report without seeking verification, said the statement. It added that the regulator condemned this and reserved the right to ascertain legal responsibility.
Source: www.chinaview.cn Sep. 25, 2008
"The regulator has never, through any channel, issued a statement or told domestic commercial banks not to lend to U.S. financial institutions," the CBRC said in a statement.
The South China Morning Post reported on Thursday that the regulator ordered local banks to halt interbank lending to U.S. banks to avoid possible losses during the financial crisis.
The newspaper cited unidentified sources as saying that the ban applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
The South China Morning Post had carried an irresponsible report without seeking verification, said the statement. It added that the regulator condemned this and reserved the right to ascertain legal responsibility.
Source: www.chinaview.cn Sep. 25, 2008
Bank of China to buy into Rothschild venture
BEIJING, Sept. 20 -- The Bank of China is to buy a 20-percent stake in La Compagnie Financiere Edmond de Rothschild for 236 million euros (342 million U.S. dollars).
Compagnie Financiere Edmond de Rothschild, the French fund-management unit of privately-held bank LCF Rothschild Group, and Beijing-based Bank of China are to begin an asset-management and private-banking venture to sell Rothschild's financial products through the Chinese lender's 10,800 branches, Bloomberg News said.
"Chinese banks are performing in a marvelous way in the current maelstrom that is shaking the global finance," Compagnie Financiere Edmond de Rothschild Chairman Michel Cicurel said at a press conference in Paris.
"Bank of China is perfectly positioned to accompany China's growing middle class" as the lender has more than 20 million accounts of individuals with at least 100,000 dollars, he said.
Compagnie Financiere Edmond de Rothschild "had no need for cash" as it completed the deal, Cicurel said.
Bank of China is buying a 10 percent stake from Caisse de Depot et Placement du Quebec, a Canadian pension fund, and the rest will be new shares.
Benjamin de Rothschild, chairman of the supervisory board, will keep a 75 percent stake in LCF Edmond de Rothschild and Bank of China will be the second-largest shareholder in the asset-management company.
The firm managed 29.6 billion euros in assets at the end of 2007.
Bank of China "expects that the transaction will provide a reasonable return on investment," the Chinese lender said in a statement to Hong Kong's stock exchange.
"The bank can further explore opportunities in European and other emerging markets."
Bank of China Vice President Zhu Min also said the company wasn't ready to acquire a major United States investment bank.
While "very volatile markets present opportunities to buy others, I don't think we have the capability to do that today," Zhu told reporters in Paris.
The bank is still looking at its domestic market for expansion, he said.
Compagnie Financiere Edmond de Rothschild, which started operations in Shanghai two years ago, is one of the latest international fund managers to start operations in the country to tap growing personal incomes and sovereign wealth funds.
Source: Shanghai Daily/Agencies Sep. 20, 2008
Compagnie Financiere Edmond de Rothschild, the French fund-management unit of privately-held bank LCF Rothschild Group, and Beijing-based Bank of China are to begin an asset-management and private-banking venture to sell Rothschild's financial products through the Chinese lender's 10,800 branches, Bloomberg News said.
"Chinese banks are performing in a marvelous way in the current maelstrom that is shaking the global finance," Compagnie Financiere Edmond de Rothschild Chairman Michel Cicurel said at a press conference in Paris.
"Bank of China is perfectly positioned to accompany China's growing middle class" as the lender has more than 20 million accounts of individuals with at least 100,000 dollars, he said.
Compagnie Financiere Edmond de Rothschild "had no need for cash" as it completed the deal, Cicurel said.
Bank of China is buying a 10 percent stake from Caisse de Depot et Placement du Quebec, a Canadian pension fund, and the rest will be new shares.
Benjamin de Rothschild, chairman of the supervisory board, will keep a 75 percent stake in LCF Edmond de Rothschild and Bank of China will be the second-largest shareholder in the asset-management company.
The firm managed 29.6 billion euros in assets at the end of 2007.
Bank of China "expects that the transaction will provide a reasonable return on investment," the Chinese lender said in a statement to Hong Kong's stock exchange.
"The bank can further explore opportunities in European and other emerging markets."
Bank of China Vice President Zhu Min also said the company wasn't ready to acquire a major United States investment bank.
While "very volatile markets present opportunities to buy others, I don't think we have the capability to do that today," Zhu told reporters in Paris.
The bank is still looking at its domestic market for expansion, he said.
Compagnie Financiere Edmond de Rothschild, which started operations in Shanghai two years ago, is one of the latest international fund managers to start operations in the country to tap growing personal incomes and sovereign wealth funds.
Source: Shanghai Daily/Agencies Sep. 20, 2008
Chinese lenders should localize private-banking services, experts say
Beijing, July 25 (Xinhua) -- Chinese lenders should tailor their private banking services to meet local clients' needs, experts stated, noting the country's institutions should not simply follow the Western mode.
"Chinese lenders' private banking service is at the very beginning, and the client groups' acknowledgement towards relevant business is immature," said Guo Tianyong, a Central University of Finance and Economy scholar.
He said banks should conduct services with "Chinese characteristics" by looking into clients' needs at first and introduce an advanced mechanism from their Western counterparts.
In recent years, more Chinese lenders have expanded their business by moving into private banking. The Construction and Commercial Bank of China, Bank of China and the Bank of Communications are just a few among the many to have done so.
The latest, China Construction Bank (CCB), started to provide private banking earlier this month.
Markets analysts attributed the boom in private banking to the country's rapid economic development, surging private property income and a growing group of wealthy people.
CCB statistics show its number of high-income clients whose assets were over 3 million yuan (about 440,000 U.S. dollars) had doubled by April from a year earlier.
Western banks provide clients with various private services, specifically investments, real estate, trusts and fiduciary, wealth management and consultation, among others. Chinese lenders should start their private banking services with property management, and then move into property protection and other services step by step, according to analysts.
Zhang Qiulin, general manager of private banking department of China CITIC Bank, said private banking should provide service in accordance with the national condition.
In China, wealthy people are the target of private banking business, which includes wealth management, consulting and charitable trustee.
The number of households with more than 1 million U.S. dollars in liquid assets in the country stood at 310,000 by 2006. The number was predicted to double by 2011, according to a Boston Consulting Group report.
Source: Xinhua Jul. 25, 2008
"Chinese lenders' private banking service is at the very beginning, and the client groups' acknowledgement towards relevant business is immature," said Guo Tianyong, a Central University of Finance and Economy scholar.
He said banks should conduct services with "Chinese characteristics" by looking into clients' needs at first and introduce an advanced mechanism from their Western counterparts.
In recent years, more Chinese lenders have expanded their business by moving into private banking. The Construction and Commercial Bank of China, Bank of China and the Bank of Communications are just a few among the many to have done so.
The latest, China Construction Bank (CCB), started to provide private banking earlier this month.
Markets analysts attributed the boom in private banking to the country's rapid economic development, surging private property income and a growing group of wealthy people.
CCB statistics show its number of high-income clients whose assets were over 3 million yuan (about 440,000 U.S. dollars) had doubled by April from a year earlier.
Western banks provide clients with various private services, specifically investments, real estate, trusts and fiduciary, wealth management and consultation, among others. Chinese lenders should start their private banking services with property management, and then move into property protection and other services step by step, according to analysts.
Zhang Qiulin, general manager of private banking department of China CITIC Bank, said private banking should provide service in accordance with the national condition.
In China, wealthy people are the target of private banking business, which includes wealth management, consulting and charitable trustee.
The number of households with more than 1 million U.S. dollars in liquid assets in the country stood at 310,000 by 2006. The number was predicted to double by 2011, according to a Boston Consulting Group report.
Source: Xinhua Jul. 25, 2008
Subscribe to:
Posts (Atom)