Hot Money Hits China

China says 2010 'hot money' flows hit $35.5 bn

BEIJING (AFP) – China said Thursday that net speculative capital inflows into the country last year equalled $35.5 billion, and vowed to maintain a crackdown on so-called "hot money".

China has sought to limit flows of volatile "hot money", which enter and exit nations in search of swift profits and are often blamed for destabilising markets as they tend to depart at the first sign of trouble.



article

Gary Shilling on China's "Hard Landing"

video interview

China is looking at the Yuan (again)

China Opens More Options for Yuan

SHANGHAI—China said it will allow yuan foreign-exchange options to be traded domestically starting in April, a long-awaited move to give companies more hedging ability—part of Beijing's broader push to build a more sophisticated currency regime.


WSJ article

China food prices

China's farm produce prices slightly down last week: MOC

BEIJING - In the week ending February 13, farm produce prices in China declined slightly for the first time this year, the Ministry of Commerce (MOC) said in a report released on Tuesday.

As the week-long Spring Festival holiday ended, abundant supply and weakening demand had brought down vegetable prices last week, said the ministry.

Compared to a week ago, the wholesale prices of 18 staple vegetables and 8 aquatic products went down 4.3 percent and 0.9 percent, respectively, it said.


article

China Auto Sales Slow

SHANGHAI (AP) -- China's passenger car sales slowed in January as tax breaks for energy-efficient cars lapsed and cities began tightening curbs on vehicle use to help combat traffic congestion and smog, according to a report Monday.

The Shanghai-based China Passenger Car Association reported that sales of passenger cars fell 10.3 percent in January from the month before to 965,238. On an annual basis, sales rose 12.6 percent.

Chinese bought 13.7 million passenger vehicles last year, up by a third from 2009. But that robust growth is forecast to cool this year due to the expiration of tax incentives for some vehicle purchases and a renewed effort by cities to bring traffic under control.

"Of course the withdrawal of financial incentives would impact any country's auto market, and sales did continue to grow in January, but toward the end of the month there was a sharp cooling in sales," the Passenger Car Association report said.


article

China Up, Japan Lower

Rising China Bests a Shrinking Japan

China passed Japan in 2010 to become the world's second-largest economy after the U.S., a historic shift that has drawn mixed emotions in the two Asian powers: resignation tinged with soul-searching in long-stagnant Japan, pride but also caution in an ascendant China wary of shouldering new global responsibilities.


WSJ Article

PBOC plans overhaul of money policy

China's central bank is planning to use an indicator measuring total financing quantity and broader measures of money supply, such as M3 and M4, to better monitor liquidity conditions and curb inflation, local media reported on Thursday.


article