The latest foreign trade figures from the Customs on Oct. 13 show that China's imports of primary products sped up quickly and prices of those imports were high over the first nine months of the year.
China imported 294.2 billion USD of primary products from January to September, representing a sharp increase of 69.5 percent over the same period of last year. The imports of iron ore reached 350 million tons at an average price of 141.3 USD per ton, rising 22 percent and 77 percent respectively. Crude oil imports grew by 8.8 percent to 140 million tons. The average price was 779 USD a ton, up by 70.5 percent. Refined oil imports stood at 31.28 million tons, rising 16.5 percent. The price roared by 88.8 percent to 840.8 USD per ton. The price of soy bean imports surged by 79.4 percent to 609 USD a ton. An increase of 32.3 percent was seen in soy bean imports which registered 28.7 million tons.
Exports of clothing, shoes and furniture in which China has long enjoyed comparative advantages on the world market slowed down over the first nine months of the year. The 1.8 percent growth of clothing exports which valued 87.08 billion USD is 21.2 percentage points lower than that in the same period of last year. The 15.1 percent rise of shoe exports which were 22.08 billion USD is also 1.7 percentage points slower than the same period of last year.
China's accumulated trade surplus reached 180.9 billion USD in the first nine months, down slightly by 2.6 percent year-on-year.
By People's Daily Online
Tuesday, October 14, 2008
Half of China's toy exporters out of business
The rising yuan along with escalating production costs, drove half of China's toy exporters out of the market in the first seven months of this year, the General Administration of Customs said in a report Monday.
A total of 3,631 toy exporters or 52.7 percent of the industry's businesses shut down in 2008.They were mainly small-sized toy producers with an export value of less than 100,000 U.S. dollars.
Customs data showed 3,507 toy exporters still in business.
China, the world's largest toy exporter, saw a remarkable business slowdown as a result of rapid appreciation of the yuan, rising human capital and production costs and falling export rebates.
From Jan.to Aug. the country exported 35.29 billion yuan worth of toys. That's up 1.3 percent from the same time period in 2007. However, the growth rate is actually 21.80 percent slower than that of last year.
According to the customs report, the U.S. credit crisis is part of the reason exports to the United States dropped 5.2 percent to 1.62 billion U.S. dollars in the first seven months of the year.
The General Administration of Customs also blamed small-sized toy producers for not adapting to policy and export environment changes.
Growing international trade protectionism is another reason the toy industry was hit hard, the report said.
"Last year was the most difficult time in decades for the Chinese toy industry," said the vice chairman of the China Toy Association, Liang Mei.
Western countries raised quality standards and issued several recalls on Chinese toys in 2007.
Liang said those standards forced domestic exporters to jack up production costs, thus driving many small-sized companies out of the market.
To repair the image of toys made in China, the country conducted special campaigns to improve quality and banned many unqualified companies from exporting toys.
Licenses of 600 Chinese toy exporters were revoked at the beginning of this year, according to figures provided by the General Administration of Quality Supervision, Inspection and Quarantine.
Source:Xinhua
A total of 3,631 toy exporters or 52.7 percent of the industry's businesses shut down in 2008.They were mainly small-sized toy producers with an export value of less than 100,000 U.S. dollars.
Customs data showed 3,507 toy exporters still in business.
China, the world's largest toy exporter, saw a remarkable business slowdown as a result of rapid appreciation of the yuan, rising human capital and production costs and falling export rebates.
From Jan.to Aug. the country exported 35.29 billion yuan worth of toys. That's up 1.3 percent from the same time period in 2007. However, the growth rate is actually 21.80 percent slower than that of last year.
According to the customs report, the U.S. credit crisis is part of the reason exports to the United States dropped 5.2 percent to 1.62 billion U.S. dollars in the first seven months of the year.
The General Administration of Customs also blamed small-sized toy producers for not adapting to policy and export environment changes.
Growing international trade protectionism is another reason the toy industry was hit hard, the report said.
"Last year was the most difficult time in decades for the Chinese toy industry," said the vice chairman of the China Toy Association, Liang Mei.
Western countries raised quality standards and issued several recalls on Chinese toys in 2007.
Liang said those standards forced domestic exporters to jack up production costs, thus driving many small-sized companies out of the market.
To repair the image of toys made in China, the country conducted special campaigns to improve quality and banned many unqualified companies from exporting toys.
Licenses of 600 Chinese toy exporters were revoked at the beginning of this year, according to figures provided by the General Administration of Quality Supervision, Inspection and Quarantine.
Source:Xinhua
China stocks drop 2.71% on weakening heavyweights
Chinese shares plunged 2.71 percent on Tuesday despite early rise in the morning, as heavyweight shares weakened after previous rebounds.
The benchmark Shanghai Composite Index declined 56.25 points to end at 2,017.32 points. The Shenzhen Component Index closed at 6,473.12 points, down 1.5 percent.
Aggregate turnover edged up to 76.8 billion yuan from previous day's 57.6 billion yuan.
Source:Xinhua
The benchmark Shanghai Composite Index declined 56.25 points to end at 2,017.32 points. The Shenzhen Component Index closed at 6,473.12 points, down 1.5 percent.
Aggregate turnover edged up to 76.8 billion yuan from previous day's 57.6 billion yuan.
Source:Xinhua
Chinese iron, steel maker's furnaces to be auctioned off
Shougang Group, a Chinese iron and steel maker, announced Monday it would auction off most of its blast furnaces in western Beijing.
The No. 5 furnace, the first large facility ever constructed for iron making by Shougang, will be the first to be sold, said a source of the group.
With a capacity of 1,036 cubic meters, this furnace stopped production in July 2005. That's when Shougang was ordered to relocate to Caofeidian, an islet in the Bohai Sea, in order to reduce pollution before the Olympic Games.
Altogether 30 million tons of iron had been produced through this furnace.
Yanhuang Auction Co. Ltd., a Beijing-based firm that will be responsible for the auction, confirmed the plan.
"Each bidder is required to go through registration procedures with the auction company," said a Yanhuang spokesman.
Potential bidders can look at Shougang's assets listed for auction, which include the No. 5 furnace and other equipment such as refrigerating machinery and cranes from the Beijing coking plant, Tuesday through 9 a.m. Friday.
The auction firm declined to disclose financial terms for the auction and an exact date has not been set.
Founded in 1919, Shougang is widely considered the flagship of China's heavy industry. With its production based just 17 km west of Tian'anmen Square in central Beijing, it has five iron blast furnaces and one coking oven at its Shijingshan plants.
Shougang Group began relocating its facilities to Hebei Province in 2005 due to the government's efforts to reduce air-pollution in Beijing. The company promised its new facility would use advanced technologies to reduce environmental impact.
Through June, it had extinguished fires at two of its blast furnaces and one coking oven.The remaining furnaces will close by 2010.
"Only one or two of them will be kept as a reminder of industrial relics, the remainder will all be auctioned off like the No. 5 furnace", said a high-ranking official of the Shougang Group who declined to be identified.
After relocation, Shougang said the old factory site in western Beijing will be developed into a complex for tourism, entertainment, business, and residential housing.
Source:Xinhua
The No. 5 furnace, the first large facility ever constructed for iron making by Shougang, will be the first to be sold, said a source of the group.
With a capacity of 1,036 cubic meters, this furnace stopped production in July 2005. That's when Shougang was ordered to relocate to Caofeidian, an islet in the Bohai Sea, in order to reduce pollution before the Olympic Games.
Altogether 30 million tons of iron had been produced through this furnace.
Yanhuang Auction Co. Ltd., a Beijing-based firm that will be responsible for the auction, confirmed the plan.
"Each bidder is required to go through registration procedures with the auction company," said a Yanhuang spokesman.
Potential bidders can look at Shougang's assets listed for auction, which include the No. 5 furnace and other equipment such as refrigerating machinery and cranes from the Beijing coking plant, Tuesday through 9 a.m. Friday.
The auction firm declined to disclose financial terms for the auction and an exact date has not been set.
Founded in 1919, Shougang is widely considered the flagship of China's heavy industry. With its production based just 17 km west of Tian'anmen Square in central Beijing, it has five iron blast furnaces and one coking oven at its Shijingshan plants.
Shougang Group began relocating its facilities to Hebei Province in 2005 due to the government's efforts to reduce air-pollution in Beijing. The company promised its new facility would use advanced technologies to reduce environmental impact.
Through June, it had extinguished fires at two of its blast furnaces and one coking oven.The remaining furnaces will close by 2010.
"Only one or two of them will be kept as a reminder of industrial relics, the remainder will all be auctioned off like the No. 5 furnace", said a high-ranking official of the Shougang Group who declined to be identified.
After relocation, Shougang said the old factory site in western Beijing will be developed into a complex for tourism, entertainment, business, and residential housing.
Source:Xinhua
China's SOEs told to be fiscally prudent in '09 budgets
China's government says state-owned enterprises should exercise prudence when investing in 2009 to prevent financial crisis as the global economy teeters on the brink of collapse.
The State-owned Assets Supervision and Administration Commission made the request in a circular issued late Monday. It's the first time SOEs have been asked to be cautious about investment budgets in stock markets and futures markets.
Shanghai Securities Journal believed the statement was a signal that SOEs would cut back on investment specifically in securities markets.
Li Feng, a senior analyst with China Galaxy Securities, said SOEs invested hundreds of billions yuan in securities markets, which is less than 10 percent of the overall volume.
Feng said, fewer SOE investments would not have much impact on the securities market.
According to the circular, SOEs should also seek long-term balance between funds used for operation and investment.
Guaranteeing stable capital supply and preventing financial risks are among the government's top concerns for the coming year.
Turbulence in domestic and international economic environments has led to rising uncertainties for SOEs. Enterprises don't know how much to budget for things like energy, raw materials and labor.
Meanwhile, financing is more difficult for businesses due to a tight monetary policy.
In the first half of 2008, SOE profits were down 10.3 percent year on year to 425.6 billion yuan despite a double-digit growth of sales revenue.
In the circular, SASAC ordered 147 SOEs, under its supervision, to map out fiscal budget reports for 2009.
"Centrally-administered SOEs should strive to increase revenue and reduce expenditure. Try every means to cut budgets in cost and expenditures," said the notice.
SOEs with shrinking profits were prohibited from a budget increase.
The SASAC demanded SOEs submit budget reports before Jan. 31, 2009. Those reports should cover operations of all in-house units, subsidiaries both at home and abroad, institutions and construction projects under SOEs' administration.
Source: Xinhua
The State-owned Assets Supervision and Administration Commission made the request in a circular issued late Monday. It's the first time SOEs have been asked to be cautious about investment budgets in stock markets and futures markets.
Shanghai Securities Journal believed the statement was a signal that SOEs would cut back on investment specifically in securities markets.
Li Feng, a senior analyst with China Galaxy Securities, said SOEs invested hundreds of billions yuan in securities markets, which is less than 10 percent of the overall volume.
Feng said, fewer SOE investments would not have much impact on the securities market.
According to the circular, SOEs should also seek long-term balance between funds used for operation and investment.
Guaranteeing stable capital supply and preventing financial risks are among the government's top concerns for the coming year.
Turbulence in domestic and international economic environments has led to rising uncertainties for SOEs. Enterprises don't know how much to budget for things like energy, raw materials and labor.
Meanwhile, financing is more difficult for businesses due to a tight monetary policy.
In the first half of 2008, SOE profits were down 10.3 percent year on year to 425.6 billion yuan despite a double-digit growth of sales revenue.
In the circular, SASAC ordered 147 SOEs, under its supervision, to map out fiscal budget reports for 2009.
"Centrally-administered SOEs should strive to increase revenue and reduce expenditure. Try every means to cut budgets in cost and expenditures," said the notice.
SOEs with shrinking profits were prohibited from a budget increase.
The SASAC demanded SOEs submit budget reports before Jan. 31, 2009. Those reports should cover operations of all in-house units, subsidiaries both at home and abroad, institutions and construction projects under SOEs' administration.
Source: Xinhua
China takes measures to stabilize cotton price
China will take multiple steps to combat the falling price of cotton, according to National Development and Reform Committee , the country's top economy planner.
Market statistics showed that the purchase price of standard cotton averaged 12,553 yuan per tonne on Tuesday. That is 68 yuan lower than the previous trading day.
The figure was down 677 yuan or 5.1 percent from the same trading period last year.
"Both short-term and long-term measures are needed to stabilize the price of cotton, so as to protect the nation's cotton production as well as the interests of farmers," said NDRC's tradeand commerce official Ma Zhanping at a cotton forum on Monday.
According to Ma, the country will encourage commercial banks and rural credit institutions to provide more loans to fund cotton purchases.
China is also expected to purchase more cotton and put it in a state reserve in the Xinjiang Uygur Autonomous Region in hopes of slowing down falling cotton prices.
Xinjiang is China's largest cotton producer. Its output accounts for 36 percent of the country's total cotton in 2007.
As of August 2008, state departments had purchased 65,800 tonnes of cotton.
Ma said the country was also working on a plan to strengthen financial support for farmers, which could include subsidies.
"The textile industry has been suffering from shrinking global market demand. By giving subsidies to farmers, we could support the cotton industry while avoiding putting more pressures on textile and garment manufacturers," said Ma.
Source: Xinhua
Market statistics showed that the purchase price of standard cotton averaged 12,553 yuan per tonne on Tuesday. That is 68 yuan lower than the previous trading day.
The figure was down 677 yuan or 5.1 percent from the same trading period last year.
"Both short-term and long-term measures are needed to stabilize the price of cotton, so as to protect the nation's cotton production as well as the interests of farmers," said NDRC's tradeand commerce official Ma Zhanping at a cotton forum on Monday.
According to Ma, the country will encourage commercial banks and rural credit institutions to provide more loans to fund cotton purchases.
China is also expected to purchase more cotton and put it in a state reserve in the Xinjiang Uygur Autonomous Region in hopes of slowing down falling cotton prices.
Xinjiang is China's largest cotton producer. Its output accounts for 36 percent of the country's total cotton in 2007.
As of August 2008, state departments had purchased 65,800 tonnes of cotton.
Ma said the country was also working on a plan to strengthen financial support for farmers, which could include subsidies.
"The textile industry has been suffering from shrinking global market demand. By giving subsidies to farmers, we could support the cotton industry while avoiding putting more pressures on textile and garment manufacturers," said Ma.
Source: Xinhua
India's Reliance Money buys 15% stake in HKMEx
India's Reliance Money has acquired 15 percent stake in Hong Kong Mercantile Exchange ,a top company official said on Tuesday.
Reliance Money is a subsidiary of Anil Dhirubhai Ambani Group's Reliance Capital Ltd. Anil Ambani is a successful Indian businessman. As of October 6th 2007, he has a net-worth of 42 billion U.S. dollars, making him the 6th richest person in the world.
With this holding, Reliance Money has become the first Indian firm to buy stake in an international exchange, according to the Indo-Asian News Service.
"Asia has emerged as a key market for global commodities but the region does not have a strong commodity exchange," Reliance Money director and chief executive Sudip Bandyopadhyay said.
The deal will make Reliance Money the second-largest shareholder in the HKMEx.
Earlier this month, Reliance Money received approval from the Indian Ministry of Consumer Affairs for acquiring 10 percent stake in the National Multi-Commodity Exchange of India. The company has said it may acquire up to 26 percent in NMCE.
"We plan to build synergies between both the exchanges thereby leveraging on the growth potential of commodity trading in India, China and the rest of Asia," Bandyopadhyay added.
Source: Xinhua
Reliance Money is a subsidiary of Anil Dhirubhai Ambani Group's Reliance Capital Ltd. Anil Ambani is a successful Indian businessman. As of October 6th 2007, he has a net-worth of 42 billion U.S. dollars, making him the 6th richest person in the world.
With this holding, Reliance Money has become the first Indian firm to buy stake in an international exchange, according to the Indo-Asian News Service.
"Asia has emerged as a key market for global commodities but the region does not have a strong commodity exchange," Reliance Money director and chief executive Sudip Bandyopadhyay said.
The deal will make Reliance Money the second-largest shareholder in the HKMEx.
Earlier this month, Reliance Money received approval from the Indian Ministry of Consumer Affairs for acquiring 10 percent stake in the National Multi-Commodity Exchange of India. The company has said it may acquire up to 26 percent in NMCE.
"We plan to build synergies between both the exchanges thereby leveraging on the growth potential of commodity trading in India, China and the rest of Asia," Bandyopadhyay added.
Source: Xinhua
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