China on the rise!

[uls]

Oo nga.

Tuloy niyo lang yung discussion dito ko kumukuha ng insights para sa report na ginagawa ko.

Kaya pag nahuli ako ng boss ko na nagti-Tsikot, sinasabi ko dito ko kumukuha ng ideas para website namin.



Padamay na din sa discussion yung renminbi offshoring na ginagawa sa HK ngayon.

Stepping stone ba yun para gawing reserve currency yung RMB?

offshore renminbi (CNH) is China taking baby steps to internationalize its currency

but i still think the renminbi can't become a reserve currency as long as the Chinese government controls the conversion of the renminbi

and the currency won't be attractive to hold if it doesnt have a big sovereign bond market. where will you park hundreds of trillions of renminbi? dimsum bonds? still too little

[pop3corn]

Pano maging reserve currency ang China eh kinuha na ni Yamashita lahat ng ginto dyan Kaya nga after world war 2 eh NASA silver standard sila.

Ewan ko Lang uls floating currency n LNG b yan China ngaun o backed pa din ng precious metals.

magiging in demand Lang ang China sa future kung dumami ulit ang Vampires and Werewolves sa Europe and rest of the world.

although sabi nila, we're going to enter yet another dark ages soon starting this century kakatakot

[c_cube]

Pano maging reserve currency ang China eh kinuha na ni Yamashita lahat ng ginto dyan Kaya nga after world war 2 eh NASA silver standard sila.

Ewan ko Lang uls floating currency n LNG b yan China ngaun o backed pa din ng precious metals.

magiging in demand Lang ang China sa future kung dumami ulit ang Vampires and Werewolves sa Europe and rest of the world.

although sabi nila, we're going to enter yet another dark ages soon starting this century kakatakot

Vampires.. werewolves... edward at jacob ikaw ba yan? Daming maglalaway na babae niyan hahaha!

Sent from my GT-P1000 using Tapatalk 2

[Monseratto]

Pano maging reserve currency ang China eh kinuha na ni Yamashita lahat ng ginto dyan Kaya nga after world war 2 eh NASA silver standard sila.

Ewan ko Lang uls floating currency n LNG b yan China ngaun o backed pa din ng precious metals.

magiging in demand Lang ang China sa future kung dumami ulit ang Vampires and Werewolves sa Europe and rest of the world.

although sabi nila, we're going to enter yet another dark ages soon starting this century kakatakot

[uls]

Ob renminbi is floating but is a managed float. it is allowed to move only within a narrow margin. The renminbi is managed by a committee of chinky eyed vampires and werewolves

[pop3corn]

Uls fractional reserve system din ba yan China?

Sent from my iPhone using Forum Runner

[uls]

Uls fractional reserve system din ba yan China?

Sent from my iPhone using Forum Runner

yup

___________________________________

[Monseratto]

Made in China...

Architizer Blog » Chinese Suspension Bridge Collapses Just 9 Months After Opening

Chinese Suspension Bridge Collapses Just 9 Months After Opening
August 24, 2012


Photo: Xinhua

An eight-lane suspension bridge in northeast China has collapsed only nine months after opening, killing three people and injuring five others. A 320-foot section of the airport expressway in Harbin City, Heilongjiang Province, China has broken off after four large trucks drove onto the bridge “plunging them to the ground and crushing them” said a CCTV news reporter. Two people were killed instantly while the third later succumbed to injuries, with the remaining injured persons still seeking medical treatment at a local hospital. Read More.


The bridge was only opened in November of 2011, after two years of construction that cost a reported $300 million. China has taken great steps towards advancing their road and rail infrastructures over the past decade, but not without facing criticism regarding construction. The Xinghua news agency is reporting that at least six major bridges have collapsed since last July with blame falling on poor construction and over-loading. A spokesperson for the Harbin government has said that authorities will begin an investigation of the bridge collapse, evaluating the design and construction.

Many residents fear that in an effort to increase infrastructure, officials have lost sight of the importance of safety. This is the second disaster this week in Heilongjiang Province, with two trains colliding earlier in the week, injuring 24 at a railway station. The accident this week is a reminder of the collision last July in Wenzhou, where high-speed trains collided, killing at least 40 people.

[uls]

so China's economic model (aside from exports) is building infrastructure that crumbles within a year so they'll have to build again

infrastructure spending is a large part of China's GDP

[niky]

High infrastructure spending usually means someone in government is getting huge kickbacks.

NBN ZTE deal, anyone?

[uls]

China's economy in 2 charts:

Iron Ore-Contract defaults as price slides, Shanghai rebar record low | Reuters

SINGAPORE/SHANGHAI, Aug 22 (Reuters) - Shanghai steel
futures hit a record low on Wednesday, exerting more pressure on
prices of the raw material iron ore whose freefall has forced
Chinese steel producers to skip contracted cargoes.

Chinese mills, the world's biggest iron ore buyers, have
either cancelled or deferred shipments of up to 4 million tonnes
this month after iron ore prices tumbled to their lowest in more
than 2-1/2 years, the latest evidence of a slowdown in the
world's top steel market.

Shanghai steel rebar futures

Shanghai steel rebar futures, down nearly 14
percent this year, hit a record low of 3,555 yuan ($560) a tonne
on Wednesday. It closed about 1 percent lower at 3,557 yuan, its
eighth daily loss in a row.

China import iron ore fines 62% Fe spot (CFR Tianjin port)

Iron ore with 62 percent iron content .IO62-CNI=SI, the
industry benchmark, fell 2.7 percent to $106.40 a tonne on
Tuesday, its weakest since Dec. 16, 2009, based on data from the
Steel Index.

[Monseratto]

With falling orders from the rest of the world, China's growth losing more steam... more reason to build more faulty bridges.

Profits at China's industrial firms have dipped for the fourth successive month, adding to fears about a sharp slowdown in China's economy.

Earnings fell by 5.4% in July from a year earlier. That compares with a 1.7% annual drop in June.

Chinese firms have been hurt by a slowdown in global demand as well as lacklustre domestic consumption.

The industrial sector is a key driver of China's growth and the weak data may result in further stimulus measures.

"We expect a renewed, strengthened push to turn around operating environment both externally and domestically," said Dariusz Kowalczyk a senior economist with Credit Agricole CIB in Hong Kong.

'Significant concerns'

China's economy, the world's second-largest, expanded at an annual rate of 7.6% in the second quarter, the slowest pace of growth in almost three years.

There are fears that growth could slow further in the near term, because economic problems in export markets, in Europe and the US, are impacting on consumer demand for Chinese goods.

According to data released earlier this month, China's exports rose by just 1% in July from a year earlier, down from 11.3% growth in June.

Premier Wen Jiabao has raised concerns about the slowing export growth and said that Beijing needs to take adequate steps to boost overseas sales.

"The third quarter of the year is a critical period for China to realise the year's export growth target and we should take targeted steps to stabilise growth," he was quoted as saying by Xinhua news agency over the weekend.

Analysts said that Premier Wen's remarks indicate that policymakers were worried about growth prospects.

"His language suggests significant concerns over growth outlook, and revealed a sense of urgency," said Dariusz Kowalczyk of Credit Agricole CIB.

Mr Kowalczyk said that measures to support exports may include "accelerated disbursement of export tax rebates and expansion of export credit insurance".

He added that China was also likely to boost infrastructure investment and give "consumption incentives" in an effort to boost domestic demand, in order to sustain growth.

[uls]

bye bye 2100

[Ry_Tower]

^ reflective of how their bridges are performing.

Mali na ata thread title.

[uls]

[Ry_Tower]

Uls bait nga pala 50 is the magic number for PMI. Above is good, below is worrisome. ??

[uls]

Purchasing Managers Index (PMI) Definition | Investopedia

Definition of 'Purchasing Managers Index - PMI'
An indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

Investopedia explains 'Purchasing Managers Index - PMI'
A PMI of more than 50 represents expansion of the manufacturing sector, compared to the previous month. A reading under 50 represents a contraction, while a reading at 50 indicates no change. Prior to September 1, 2001, the acronym (PMI) stood for Purchasing Managers' Index. The Institute of Supply Management (ISM) now uses only the acronym, PMI. Although the ISM publishes several indexes, the PMI is the most widely followed and is sometimes referred to as the ISM index.

[uls]

China's economy in 2 charts:

Iron Ore-Contract defaults as price slides, Shanghai rebar record low | Reuters


Shanghai steel rebar futures




China import iron ore fines 62% Fe spot (CFR Tianjin port)

China's Baosteel suspends production at loss-making plant | Reuters

(Reuters) - Baoshan Iron & Steel Co (600019.SS) (Baosteel), China's biggest listed steelmaker, said it has suspended production at a loss-making plant in Shanghai, in a sign of the intense pressure on the sector as steel prices trade near three-year lows.

The steelmaker is one of the first major Chinese mills to publicly announce it is suspending production, but with the world's second-biggest economy cooling and banks restricting lending to an industry that built up $400 billion of debt during years of double-digit growth more suspensions are likely.

[uls]

this is what's happening in China now --

background muna -- to maintain competitiveness the govt keeps the yuan weak by printing yuan to buy dollars. that prevents dollars from flooding the system which would weaken the dollar

when the economy was red hot the govt printed huge amounts of yuan to absorb huge amounts of dollars coming in so there's so much yuan in the system (that's why they experienced high inflation)

but exports and foreign direct investments have fallen so there's less dollars coming in. so the govt prints less yuan. so there's less money in the system. exporters are also hoarding dollars. FX deposits are rising

less money in the system means less money going around so loans aren't getting paid. i'm sure non-performing loans at China's banks are already rising

PBOC makes biggest weekly cash injection on record to fend off crunch | Reuters

(Reuters) - China's central bank injected a net 365 billion yuan ($57.92 billion) into money markets this week, traders said, the largest weekly injection in history, as regulators struggle to maintain liquidity without producing inflation as forex inflows slow.

http://news.xinhuanet.com/english/ch..._131872451.htm

BEIJING, Sept. 25 (Xinhua) -- China's central bank pumped a record 290 billion yuan (45.74 billion U.S. dollars) into the money markets via reverse repurchase agreements (repos) Tuesday in an effort to ease a cash crunch.

[uls]

bye bye 2100

strong rally from 2,000...

then the rally loses momentum hehe