Subscribe free to our newsletters via your
. Earth Science News .




POLITICAL ECONOMY
China Jan-June FDI rises 2.2%
by Staff Writers
Beijing (AFP) July 15, 2014


China bank lending up in June: central bank
Shanghai (AFP) July 15, 2014 - China's bank lending picked up in June from May, the central bank said Tuesday, as authorities accelerated infrastructure investment to boost the flagging economy, but analysts warned of a possible debt bubble.

Domestic banks granted 1.08 trillion yuan ($174 billion) in new loans for June, up from 870.8 billion yuan a month earlier, the People's Bank of China (PBoC) said in a statement.

The June figure beat an average forecast of 980 billion yuan, according to a poll of 20 economists by the Wall Street Journal.

China has in recent months rolled out a "mini-stimulus" package, including targeted monetary easing and speeding up infrastructure spending, to spur economic growth.

However, China Merchants Bank analyst Liu Dongliang wrote in a research note: "On the positive side, the massive scale of credit... should provide a solid foundation for an economic recovery.

"But the overly fast growth in June loans may result in excess capacity and inflated debt bubbles."

He added that the central bank could even tighten monetary policy in the third quarter if such risks arise.

China's economy expanded 7.7 percent in 2013, the same as 2012 -- the worst pace since 7.6 percent in 1999. China's official growth target for this year is 7.5 percent, also the same as last year's.

Gross domestic product (GDP) grew 7.4 percent in the first quarter of this year.

The median forecast in a survey of 17 economists by AFP predicted that the economy again grew 7.4 percent in the April-June period. China announces second-quarter GDP data on Wednesday.

The PBoC said total social financing -- a broader measure of credit -- was 1.97 trillion yuan in June, up from 1.40 trillion yuan in May.

"Shadow banking activities continued to shrink and bank lending has returned as the key source of corporate financing," ANZ Bank said in a research report.

Authorities have sought to crack down on "shadow banking" -- a huge network of lending outside formal channels and beyond the reach of regulators, including activities by online finance platforms, credit guarantee companies and microcredit firms.

Separately, China's foreign exchange reserves reached $3.99 trillion at the end of June, up from $3.95 trillion as of end-March, according to the central bank.

ANZ described the rise in reserves as "generally stable" and the smallest increase since the fourth quarter of 2012.

Foreign direct investment (FDI) into China rose 2.2 percent to $63.33 billion during the first six months of this year, the government announced Tuesday.

For the month of June alone, FDI -- which excludes investment in financial sectors -- inched up 0.2 percent year-on-year to $14.42 billion, the commerce ministry said.

But it was a substantial jump on May's $8.6 billion, according to previous figures.

"Major countries maintained overall steady growth in investment in China," the ministry said in a statement.

The ministry also announced that for the first six months China's overseas investment in non-financial sectors fell 5.0 percent year-on-year to $43.34 billion.

Foreign investment into China rebounded in 2013 to $117.59 billion, after declining in 2012 for the first time in three years.

China's economy expanded 7.7 percent in 2013, the same as 2012 -- the worst pace since 7.6 percent in 1999. China's official growth target for this year is 7.5 percent, also the same as last year's.

Gross domestic product (GDP) grew 7.4 percent in the first quarter of this year.

The median forecast in a survey of 17 economists by AFP predicted that the economy again grew 7.4 percent in the April-June period. China announces second-quarter GDP data on Wednesday.

FDI into China from South Korea rose 45.6 percent to $2.8 billion, while that from Britain jumped 76.4 percent to $700 billion, the ministry said.

But investment from Japan declined 48.6 percent in the first six months of the year, while that from the European Union fell 11.2 percent, the figures showed.

There was also a drop in cash from the Association of Southeast Asian (ASEAN) countries, down 19.2 percent, and the United States, which was off 4.6 percent.

Beijing has encouraged Chinese companies to "go out" to seal supplies of crucial resources as well as make overseas acquisitions to gain market access and international experience.

Chinese investment to the US rose 12.8 percent to $2.46 billion during the first half of the year, the ministry said, and to ASEAN countries it climbed 14 percent to $2.52 billion.

But Chinese investment into Hong Kong fell 29.3 percent, the ministry said, while that to the European Union soared 221.7 percent year-on-year. Investment in Russia and Japan jumped by 109.5 percent and 100 percent, respectively. The ministry did not give absolute amounts for them.

China's overall decline in outbound investment was "inevitably influenced by the global economy and China's macro economy", ministry spokesman Shen Danyang told reporters.

"China's outbound investment is still welcomed by all countries and it has a good prospect for growth in the long run," he said.

Chinese outbound investment hit $90.17 billion last year, and officials have said it could overtake FDI this year.

China's BOC orders Airbus planes in $4.1bn deal: firm
Farnborough, United Kingdom (AFP) July 15, 2014 - China's BOC Aviation has ordered 43 Airbus single-aisle A320 passenger jets worth more than $4.1 billion (3.0 billion euros), the European planemaker said on Tuesday, amid booming Asian demand for air travel.

BOC Aviation, the Singapore-based aircraft leasing arm of Bank of China, has ordered seven A320neo aircraft and 36 A320ceo jets, Airbus said at the Farnborough airshow near London.

"It's great to see one of the world's leading lessors, BOC Aviation, based in the fast growing Asian market, continuing to invest in our market leading A320 family," said Airbus president Fabrice Bregier.

"This tells us that not only are our aircraft universally recognised as the industry's benchmark for efficiency, comfort and reliability, but also underlines the financial community's confidence in the A320 Family as a sound financial asset."

BOC Aviation chief executive Robert Martin added: "By adding this order to our pipeline for the next five years, we are confident at meeting the needs of airlines which are expanding or replacing older fleets."

BOC Aviation has a fleet of 251 aircraft, which includes 109 Airbus aircraft operated by 27 airlines.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
China Q2 growth mired at 7.4% on-year: AFP survey
Beijing (AFP) July 14, 2014
Chinese growth failed to accelerate in the second quarter despite government stimulus measures, an AFP survey predicts, with the world's second-largest economy forecast to record its worst annual performance in 24 years. China's gross domestic product (GDP) expanded 7.4 percent in the three months to June from the same period last year, according to the median forecast in AFP's survey of 17 ... read more


POLITICAL ECONOMY
China gave $14.4 bln in foreign aid in three years

AW139 helicopters to perform emergency medical missions

Accidents raise safety questions on Hong Kong waters

Malaysia to deploy more equipment in MH370 search

POLITICAL ECONOMY
Hollow optical fibres for UV light

Speeding up data storage by a thousand times with 'spin current'

Projecting a Three-Dimensional Future

Even geckos can lose their grip

POLITICAL ECONOMY
Beautiful but a threat: Tropical fish invasion destroys kelp forests

Study reveals strong links between Antarctic climate, food web

Reconstruction in Fukushima includes new hydroelectric facility

Border guard wounded in shootout over water access on Kyrgyz-Tajik border

POLITICAL ECONOMY
Shark teeth offer new look at Arctic climate change

Japan shipping giant plans first regular Arctic route

Changing Antarctic winds create new sea level threat

Ancient ocean currents may have changed pace and intensity of ice ages

POLITICAL ECONOMY
NMSU sustainability project receives regional and national recognition

Perfect growing conditions for charcoal rot in soybeans

'Bee-harming' pesticides also hit bird populations: study

Internet crowd bites big into potato salad project

POLITICAL ECONOMY
Flooding, havoc in Japan as Typhoon Neoguri batters mainland

Flooding, havoc in Japan as Typhoon Neoguri batters mainland

Rewriting the history of volcanic forcing during the past 2,000 years

Japan issues highest alert over super typhoon Neoguri

POLITICAL ECONOMY
South Africa rhino poaching toll jumps

Somali capital one step short of famine: UN

Clash between army, 'tribal gunmen' leaves 65 dead in Uganda

Clashes between Nigeria army, Islamists kill 59: official

POLITICAL ECONOMY
Neandertal trait raises new questions about human evolution

Virtual crowds produce real behavior insights

Insect diet helped early humans build bigger brains

Researchers say hormonal mechanism responsible for left-handedness




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.