XinHua News
China to invest $41 bln in 3G network in next two years
2008-12-19 15:12:32
BEIJING, Dec. 19 (Xinhua) -- China will invest 280 billion yuan(40.96 billion U.S. dollars) in developing third-generation (3G) mobile telecommunications networks over the next two years, said Li Yizhong, head of the Ministry of Industry and Information Technology, here on Friday.
He said the government will give "strong support" to promote the self-developed TD-SCDMA (Time Division Synchronous Code Division Multiple Access) standard. Efforts will be made to enhance industrialization of core chips, terminals and test equipment as well as to expand network coverage.
3G networks handle faster data downloads, allowing cell phone users to make video calls and watch TV programs.
The country's top three telecom companies are expected to receive 3G licenses either this month or at the beginning of next year. China Mobile will apply TD-SCDMA, while China Unicom and China Telecom will use Europe's WCDMA and North America's CDMA 2000 respectively.
Editor: An
Friday, December 19, 2008
"Buy first, pay later" system can help China boost domestic consumption
XinHua News
"Buy first, pay later" system can help China boost domestic consumption
2008-12-19 13:57:12
By Xinhua writer Jiang Xufeng
BEIJING, Dec. 19 (Xinhua) -- A consumer credit system could help Chinese enterprises better weather adverse effects of the global financial crisis and flagging external demands, a senior analyst told Xinhua on Friday.
Zhao Qiuyan, a senior analyst with the Ministry of Commerce (MOC), said "to bolster credit consumption would help stimulate domestic consumption, reduce inventories and raise companies' capital."
Credit consumption can happen between enterprises, or between enterprises and consumers.
Chinese firms, especially those whose products are export-oriented, have felt the punch of the financial crisis and waning demands. Some are operating under production capacity and inventories were on the rise. They are turning their attention to the domestic market of 1.3 billion people.
The MOC said on its Web site Thursday that average capital turnover rate of Chinese enterprises was only about one fourth of their peers from developed countries.
Capital turnover rate is a measure of a company's ability to use equity to generate revenue. The higher the ratio is, the more efficiently a company is using its capital.
The ministry said that by encouraging credit transaction, domestic manufacturers could raise sales and help small and medium-sized companies qualify for financing -- an long-time obstacle for smaller firms.
Figures from the MOC revealed that credit consumption only accounted for 3 percent of Chinese citizens' monthly bills , much less than the more than 33 percent in Japan and about 67 percent in the United States.
Zhao said the Chinese credit system is still in its start-up period and that this consumption method also involved risks for manufacturers and shopping malls, as it is more difficult for them to perform credit history checks checks.
Zhao said it might take awhile for credit purchasing to catch on.
Some local authorities have began to take measures to clear the obstacle for enterprises. Hangzhou, the prosperous capital city of Zhejiang, said last week it is scheduled to establish a citizen information database of personal credit histories.
She said for those export-oriented companies to get a bigger share of the domestic market, they should also be prepared for a "concept shift" to adapt to the domestic market as Chinese buyers' purchasing habits were different from those overseas.
Editor: Wang Hongjiang
"Buy first, pay later" system can help China boost domestic consumption
2008-12-19 13:57:12
By Xinhua writer Jiang Xufeng
BEIJING, Dec. 19 (Xinhua) -- A consumer credit system could help Chinese enterprises better weather adverse effects of the global financial crisis and flagging external demands, a senior analyst told Xinhua on Friday.
Zhao Qiuyan, a senior analyst with the Ministry of Commerce (MOC), said "to bolster credit consumption would help stimulate domestic consumption, reduce inventories and raise companies' capital."
Credit consumption can happen between enterprises, or between enterprises and consumers.
Chinese firms, especially those whose products are export-oriented, have felt the punch of the financial crisis and waning demands. Some are operating under production capacity and inventories were on the rise. They are turning their attention to the domestic market of 1.3 billion people.
The MOC said on its Web site Thursday that average capital turnover rate of Chinese enterprises was only about one fourth of their peers from developed countries.
Capital turnover rate is a measure of a company's ability to use equity to generate revenue. The higher the ratio is, the more efficiently a company is using its capital.
The ministry said that by encouraging credit transaction, domestic manufacturers could raise sales and help small and medium-sized companies qualify for financing -- an long-time obstacle for smaller firms.
Figures from the MOC revealed that credit consumption only accounted for 3 percent of Chinese citizens' monthly bills , much less than the more than 33 percent in Japan and about 67 percent in the United States.
Zhao said the Chinese credit system is still in its start-up period and that this consumption method also involved risks for manufacturers and shopping malls, as it is more difficult for them to perform credit history checks checks.
Zhao said it might take awhile for credit purchasing to catch on.
Some local authorities have began to take measures to clear the obstacle for enterprises. Hangzhou, the prosperous capital city of Zhejiang, said last week it is scheduled to establish a citizen information database of personal credit histories.
She said for those export-oriented companies to get a bigger share of the domestic market, they should also be prepared for a "concept shift" to adapt to the domestic market as Chinese buyers' purchasing habits were different from those overseas.
Editor: Wang Hongjiang
US auto industry worker average yearly pay surpass professor's
The average pay for the US auto industry worker surpass that of a university professor. The amount is 1.5 times the pay of the professor.
With the strong support of the worker's union, the average education level of the auto industry worker is at secondary level and their pay surpass that of a university professor.
Here is the pay breakdown.
Ford: 70.51 USD per hour. Yearly income 141,025 USD.
GM: 73.26 USD per hour. Yearly income 146,520 USD.
Chrysler: 75.86 USD per hour. Yearly income 151,720 USD.
Toyota, Honda and Nissan: 48 USD per hour. Yearly income 96,000 USD.
With the strong support of the worker's union, the average education level of the auto industry worker is at secondary level and their pay surpass that of a university professor.
Here is the pay breakdown.
Ford: 70.51 USD per hour. Yearly income 141,025 USD.
GM: 73.26 USD per hour. Yearly income 146,520 USD.
Chrysler: 75.86 USD per hour. Yearly income 151,720 USD.
Toyota, Honda and Nissan: 48 USD per hour. Yearly income 96,000 USD.
Various Asia central banks act to depreciate their currency
From the China media reports, as export declines and economy contraction replacing inflation and liquidity concerns, there are evidence that various Asia central banks have started to buy the US dollar which they have been previously selling to prop up their own currency value. The act is to help step up export through the depreciation of their own currency.
Start to buy the US dollar in the past 2 days
Patrick Bennett, Asian currency and fixed-income strategist at Societe Generale says that there are evidence that Singapore, Malaysia, India and South Korea's central banks in the past 2 days have started to buy in the US dollar.
HSBC mentioned that Thailand and Taiwan have switch policy towards depreciation of their own country's currency. Recently, Thailand started to buy in the US dollar since August 2007 and Taiwan started to buy in the US dollar since April this year.
Asia Development Bank warned last week that there is the need to prevent too much intervention and unnecessary actions in the forex market, especially the depreciation of the country's own currency.
Selling of the US dollar in the past 6 months
But in the past 6 months, as the global financial crisis pushes for risk avoidance causing the strong rally in the US dollar, in order to prevent funds from flowing out, a lot of Asia countries have been active in using their foreign exchange reserves to stop the pace of depreciation of their own country's currency against the US dollar.
As such, in October, South Korea, India, Singapore and Indonesia's foreign exchange reserve accumulated in the past 10 years have shown a decline.
To depreciate own country's currency to step up export
However, recently, as the FED's big drop in interest rate to near zero, the US dollar has plunged quite fast. The various Asia countries started to worry about their own currencies rebound against the US dollar as it will hurt the export industries profit margin. To Asia countries, export is their lifeline.
This means that such countries which have been selling the US dollar to preserve the value of their own currency, now have to control the appreciation pace of their own currencies. Thus they have to buy in the US dollar and inject funds into their own markets with their much needed local currency.
Barclays Head of Emerging Asia Research Peter Redward says that we may see Asia central banks starting to buy the US dollar because considering economy growth and inflation prospects, the policy decision maker is most unwilling to see their own country's currency going strong.
Start to buy the US dollar in the past 2 days
Patrick Bennett, Asian currency and fixed-income strategist at Societe Generale says that there are evidence that Singapore, Malaysia, India and South Korea's central banks in the past 2 days have started to buy in the US dollar.
HSBC mentioned that Thailand and Taiwan have switch policy towards depreciation of their own country's currency. Recently, Thailand started to buy in the US dollar since August 2007 and Taiwan started to buy in the US dollar since April this year.
Asia Development Bank warned last week that there is the need to prevent too much intervention and unnecessary actions in the forex market, especially the depreciation of the country's own currency.
Selling of the US dollar in the past 6 months
But in the past 6 months, as the global financial crisis pushes for risk avoidance causing the strong rally in the US dollar, in order to prevent funds from flowing out, a lot of Asia countries have been active in using their foreign exchange reserves to stop the pace of depreciation of their own country's currency against the US dollar.
As such, in October, South Korea, India, Singapore and Indonesia's foreign exchange reserve accumulated in the past 10 years have shown a decline.
To depreciate own country's currency to step up export
However, recently, as the FED's big drop in interest rate to near zero, the US dollar has plunged quite fast. The various Asia countries started to worry about their own currencies rebound against the US dollar as it will hurt the export industries profit margin. To Asia countries, export is their lifeline.
This means that such countries which have been selling the US dollar to preserve the value of their own currency, now have to control the appreciation pace of their own currencies. Thus they have to buy in the US dollar and inject funds into their own markets with their much needed local currency.
Barclays Head of Emerging Asia Research Peter Redward says that we may see Asia central banks starting to buy the US dollar because considering economy growth and inflation prospects, the policy decision maker is most unwilling to see their own country's currency going strong.
Thursday, December 18, 2008
Jim Rogers plans to sell all his US dollar assets
Investment guru Jim Rogers is planning to sell all his US dollar assets. He believes that the 'man-made' US dollar rally is nearing the end and now is the best time to switch to other investments.
Jim Rogers not long ago said that this year the US dollar will have a big rebound because investors were forced to liquidate. At that time when interviewed by Bloomberg, he said that before that a lot of investors shorted the US dollar but now they have to unwind their positions which causes the rebound of the US dollar.
Now the rebound will be ending. Jim Rogers thinks that it will be like the pound not long ago. The world's first choice currency, the US dollar has started its long path of depreciation.
Jim Rogers said that he as an American is not willing to say but he has to say it. He said that in the coming days, weeks, months, he is ready to sell all his US dollar assets. During an interview on Tuesday, Jim Rogers said that he is now using the rebound of the US dollar to sell his US dollar assets.
Jim Rogers said that comparing to the Euro and Yen, the US dollar is not like before any more. He said that although he is not wiling to say it, but he said that in his lifetime, it will be not so good for the US dollar. He even estimates that like the pound, the US dollar will depreciate by up to 90% in the coming few years.
Expressing his disappointment for the US dollar, Jim Rogers is also negative about the US stock market. He said that Citi fundamentals were damaged, GM's fundamentals were also not good. What Jim Rogers is investing now is still on commodities because he feels that the fundamentals for commodities are better. At the same time he is also concerned about China and other financial bodies which have not shown structural problems such as consumer finance and commercial growth.
Jim Rogers on last Wednesday mentioned that now is the time not seen in 150 years where investors are forced to clear their positions and the economy may enter into the second great depression. Other then commodities, there are nothing else with good fundamentals. Because of the lack of investments, commodities and food will face shortages in the future. When the economy recovers, commodities prices will shoot up. Jim Rogers belived that the last bubble for the US, the government bonds, will burst any time. He warns people to think thrice before investing in those 30 year government bonds paying 4% interests.
Jim Rogers not long ago said that this year the US dollar will have a big rebound because investors were forced to liquidate. At that time when interviewed by Bloomberg, he said that before that a lot of investors shorted the US dollar but now they have to unwind their positions which causes the rebound of the US dollar.
Now the rebound will be ending. Jim Rogers thinks that it will be like the pound not long ago. The world's first choice currency, the US dollar has started its long path of depreciation.
Jim Rogers said that he as an American is not willing to say but he has to say it. He said that in the coming days, weeks, months, he is ready to sell all his US dollar assets. During an interview on Tuesday, Jim Rogers said that he is now using the rebound of the US dollar to sell his US dollar assets.
Jim Rogers said that comparing to the Euro and Yen, the US dollar is not like before any more. He said that although he is not wiling to say it, but he said that in his lifetime, it will be not so good for the US dollar. He even estimates that like the pound, the US dollar will depreciate by up to 90% in the coming few years.
Expressing his disappointment for the US dollar, Jim Rogers is also negative about the US stock market. He said that Citi fundamentals were damaged, GM's fundamentals were also not good. What Jim Rogers is investing now is still on commodities because he feels that the fundamentals for commodities are better. At the same time he is also concerned about China and other financial bodies which have not shown structural problems such as consumer finance and commercial growth.
Jim Rogers on last Wednesday mentioned that now is the time not seen in 150 years where investors are forced to clear their positions and the economy may enter into the second great depression. Other then commodities, there are nothing else with good fundamentals. Because of the lack of investments, commodities and food will face shortages in the future. When the economy recovers, commodities prices will shoot up. Jim Rogers belived that the last bubble for the US, the government bonds, will burst any time. He warns people to think thrice before investing in those 30 year government bonds paying 4% interests.
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