Bank of China said it plans to invest $1.1 billion in a railway project linking Shanxi and Shandong provinces. The investment – made by Bank of China’s Hong Kong-based unit, Bank of China Group Investment – will acquire a 14.5% stake in the railway operator, which is soon to be established with $7.6 billion in [...]
Industry data has revealed that auto sales in China continued to rise last month, although the rate of sales was down from January’s figures. Although sales growth has been put at 46.3% in February, with an estimated 1.21 million units sold, analysts believe that the February holiday contributed to lower overall sales. While consumers are [...]
Beijing will consider revaluing the renminbi when stimulus packages are withdrawn in other nations, according to comments made by Zhu Min, deputy governor of the People’s Bank of China, in Davos. Zhu told the World Economic Forum that China had maintained the renminbi exchange rate over the past two years as a stimulus package, but [...]
As funds from the RMB4 trillion stimulus package dry up and curbs are being placed on bank lending, China may not be able to realize its ambition to create a railway network to rival that of the US. Funding shortages caused some difficulties last year and may continue to plague costly high-speed rail projects this [...]
China’s crude steel production in 2009 rose 14% from the year before to a record 568 million tons as stimulus spending and loose lending bolstered demand from infrastructure projects and autos. According to the National Bureau of Statistics, steel production jumped 10.7% in the October-December period, the fastest growth recorded since 2007. “The two-year stimulus [...]
Beijing has ordered commercial banks to stop lending until the end of January. The China Securities Journal cited unidentified banking industry sources in both Beijing and Shanghai as saying that new loans amounting to more than US$146 billion have already been issued in 2010. The newspaper quoted an unnamed Bank of China official who said [...]
Anglo-Australian mining giant Rio Tinto’s fourth-quarter iron ore output rose 49% thanks to strong demand from China. Its output reached 47.2 million metric tons for the quarter, taking full-year output to a higher-than-expected 217 million tons. “This was another very strong quarter for iron ore production, driven by continuing high demand from China,” Rio Tinto [...]
Global steel output is expected to grow 11.2% in 2010, but for the first time in a decade the output from China will not outpace that of the rest of the world. While China’s steel production is expected to expand 7%, a 15% growth rate is expected for the rest of the world’s steel output. [...]
Chinese electronics retailer Suning Appliance has announced plans to expand 34% this year. Anticipating increased consumer spending arising from China’s US$586 billion stimulus package, China’s largest electrical appliance retailer by market capitalization intends to open 200 stores in smaller cities and 100 new shops in rural towns. The company currently operates 885 stores across China. [...]
China’s annual domestic economic summit closed with a call for more balanced growth in 2010, reflecting concerns about the excesses of the current stimulus package – specifically inflationary pressures, asset bubbles and overcapacity – and the continued weakness of local and external demand. The Central Economic Work Conference reaffirmed Beijing’s commitment to deficit spending and [...]
