Chinese economy can avoid hard landing in years to come
(Xinhua file photo)
SINGAPORE, April 6 (Xinhua) — China will be able to avoid a hard landing in the years to come, said a report of FitchRatings released here Wednesday.
China has the financial and administrative resources to avoid a hard landing in the near term despite the economy’s structural vulnerabilities, said the credit rating agency.
While the rising leverage can cause systemic vulnerability, the characteristics of China’s financial system and broader economy militate against a disruptive outcome, it said.
“China’s financial system is dominated by banks and funded overwhelmingly by retail deposits. Both the banks and borrowers are either state-owned or heavily state-influenced. These factors combine to suggest that the kind of collapse of confidence among creditors that might precipitate a financial crisis is unlikely in China,” it said.
“We expect the economy to grow between 6 percent and 6.5 percent in 2016 and 2017. We also think China has the will and the means not to devalue the yuan substantially against its new basket — we expect the yuan to weaken by only around 5 percent against the U.S. dollar over 2016,” said the agency.
Fitch said it broadly agrees with the Chinese government’s assessment that the macroeconomic fundamentals do not necessarily point to a substantial depreciation of the yuan.
“China runs a large and rising current account surplus, which we expect to exceed 300 billion U.S. dollars in 2016. The country as a whole is a substantial net external creditor, and the foreign reserves buffer remains strong at 3.2 trillion U.S. dollars,” the agency explained.
BEIJING, April 5 (Xinhua) — The Chinese economy is showing signs of warming as observers eagerly await the release of first-quarter GDP data next week.
With fiscal and credit policy support beginning to take effect, the official purchasing managers’ index for the manufacturing sector came in at 50.2 in March, up from February’s 49 to its highest level since August. According to the data released on Friday, the index for non-manufacturing business activity stood at 53.8, up from 52.7 in February, reversing a downward trend since December.Full Story
BEIJING, April 3 (Xinhua) — China’s economy may have just come back for a recovery, recent economic indicators signaled.
Latest data showed that China’s manufacturing activity rebounded in March to its highest level since last August while non-manufacturing sector also reversed a downward trend since December.Full Story
BEIJING, April 1 (Xinhua) — China’s manufacturing activity rebounded in March to its highest level since last August, thanks to the government’s continued structural reforms, official data showed on Friday.
The purchasing managers’ index (PMI) came in at 50.2 in March, up from February’s 49, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing. Full story
BEIJING, April 1 (Xinhua) — China’s service sector activity improved in March, reversing a downward trend since December, official data showed on Friday.
The purchasing managers’ index (PMI) for the non-manufacturing sector came in at 53.8 in March, up from 52.7 in February and 53.5 in January, according to a report released jointly by the National Bureau of Statistics and the China Federation of Logistics and Purchasing.Full Story
BEIJING, March 27 (Xinhua) — Profits of China’s major industrial firms rose 4.8 percent year on year in the first two months of 2016, reversing last year’s downward trend, official data showed Sunday.
Profits at industrial companies with annual revenues of more than 20 million yuan (about 3.1 million U.S. dollars) totaled 780.7 billion yuan during the January-February period, the National Bureau of Statistics (NBS) said.Full Story
BEIJING, March 26 (Xinhua) — While analysts quibble over whether China’s economy will make a soft or hard landing, global entrepreneurs remain upbeat.
The pace may be slower and the course bumpier, consumption is still staggering but there will be opportunities aplenty in China’s new, sustainable regime.Full Story