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POLITICAL ECONOMY
Former top China official charged with bribery
by Staff Writers
Beijing (AFP) June 23, 2014


China manufacturing grows for first time in six months: HSBC
Beijing (AFP) June 23, 2014 - China's manufacturing activity expanded in June for the first time this year as the effects of Beijing's mini-stimulus on the world's second-largest economy gradually kick in, HSBC said Monday.

The bank said in a statement that its preliminary purchasing managers index (PMI), which tracks activity in China's factories and workshops, came in at 50.8 this month, the highest since November's identical figure.

It was also the first time since December that the index has been above the 50-point break-even level, suggesting the sector is expanding, according to data compiled by financial information services provider Markit and released by HSBC.

The indicator is a closely watched gauge of the health of the Asian economic powerhouse and key driver of global growth.

"The improvement was broad-based with both domestic orders and external demand sub-indices in expansionary territory," HSBC economist Qu Hongbin said in the statement.

"This month's improvement is consistent with data suggesting that the authorities' mini-stimulus are filtering through to the real economy."

With growth slowing this year, Beijing has since April announced a series of measures to bolster growth, including tax breaks for small enterprises, targeted infrastructure outlays and incentives to encourage lending in rural areas.

In the first three months of 2014 China's economy grew 7.4 percent, weaker than the 7.7 percent in October-December and the worst since a similar 7.4 percent expansion in the third quarter of 2012.

"Today's PMI reading is the latest sign that, in some sectors at least, downwards pressure on growth has largely eased," said Julian Evans-Pritchard, an analyst with research firm Capital Economics, in a report.

Premier Li Keqiang in March announced a growth target of "around 7.5 percent" for this year.

But the government indicated the target was flexible to a certain extent as long as the job market was stable, and it has publicly ruled out a massive stimulus similar to that seen during the global financial crisis.

Qu said in the HSBC statement that the employment sub-index, which has been indicating decreases, showed "signs of stabilisation", adding the bank expected the government to maintain its "accommodative policy stance" until the recovery was sustained.

The Chinese Premier at a meeting earlier this month labelled achieving the annual growth target as an "inescapable responsibility" of local governments, urging "no delay" in action.

"As Beijing is determined to deliver stable growth with a slew of mini-stimulus measures... we observed a bounce-back of confidence in the economy which will help bolster demand," Bank of America Merrill Lynch economists Lu Ting and Zhi Xiaojia said in a research note.

"We expect Beijing to continue rolling out more measures to stabilise growth," they said.

China's wide-ranging crackdown on corruption has snared its highest-ranking official so far, a former senior economic planning officer who will face criminal charges after authorities charged him with bribery on Monday.

Liu Tienan fell from grace after allegations about illegal activities first surfaced from a prominent journalist two years ago.

The former deputy director of the National Development and Reform Commission sought benefits for others by taking advantage of his position, and accepted "an extremely large amount" of financial incentives, the official Xinhua news agency quoted an indictment as saying.

The charges were laid against Liu by prosecutors in Langfang in the northern province of Hubei, the Supreme People's Procuratorate said in a statement on its website.

He was placed under investigation last August after being expelled from the ruling Communist Party.

Xi Jinping took office as president last year vowing to root out corrupt officials ranging from high-ranking "tigers" to low-level "flies", and warning that graft could destroy the party.

Corruption causes widespread public anger and the drive has been widely publicised. But critics say no systemic reforms have been introduced to combat it, while citizen activists calling for such measures have been jailed on public order offences.

Allegations against Liu surfaced in 2012 when a journalist at investigative magazine Caijing accused him of fraud, graft and sending death threats.

News of the charges came the same day that the Communist Party's official news website said that the brother of politician Ling Jihua, a one-time presidential ally whose son was killed in a scandalous Ferrari crash, had been sacked from his post.

Ling Zhengce, 62, has been removed as a vice president of the Shanxi provincial branch of the Chinese People's Consultative Conference, a debating chamber which is part of the party-controlled government structure, according to a report by cpcnews.cn

The party's central disciplinary body announced last week he was being investigated for "serious discipline violations", generally a euphemism for graft.

Ling Jihua's son died in a high-speed crash in Beijing in March 2012 that also left two women passengers -- one of them naked -- injured.

Photographs of the crash were briefly circulated online, sparking questions about how the son of a government official could afford a car worth a reported five million yuan (around $800,000).

China on Monday also moved against five "graft-busters" who "violated principles of the....campaign against undesirable work styles", a report by Xinhua said.

Among the cases were two local discipline bosses who were dismissed after they were said to have received $17,000 and $8,500 in gifts at family gatherings, the agency said, citing the Central Commission for Discipline Inspection.

Xinhua on Friday published a commentary on China's Twitter-like Sina Weibo comparing the probe into Ling Zhengce with the fall of a brother of former railways minister Liu Zhijun.

Liu was later sentenced to death with a two-year reprieve -- a penalty normally commuted to life imprisonment -- for taking 64.6 million yuan ($10.4 million) in bribes.

Officials who have been put under investigation in recent years "have built up corrupted families using their blood or marital ties", said the article, according to a repost.

The original was quickly deleted but it was widely reproduced by other Chinese media outlets, including the People's Daily Online, the website of the Communist party's official mouthpiece.

The commentary added such individuals "will eventually bring disgrace and ruin upon themselves just like the Liu brothers, no matter how high-ranking their post was or how powerful they were".

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