On November 7, 2014, Caixin published an article on bad loans in the first half of 2014. The article stated that 90 percent of the bad bank loans in Sichuan Province were residential loans.
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Disasters in October Caused Direct Economic Losses of 8.1 Billion Yuan
On November 6, the Ministry of Civil Affairs released information explaining that, in the month of October, the occurrence of a number of calamities resulted in direct economic losses of more than 8.1 billion yuan (US$1.33 billion). The disasters in October consisted primarily of earthquakes, flooding in the south, and snow in the northeast. The disasters impacted over 3.25 million people in 21 provinces and resulted in direct economic losses of 8.1 billion yuan. During the disasters, over 8,000 houses and buildings collapsed and an additional 179,000 houses and buildings suffered different degrees of damage. A total of 3,527,000 hectares of crops were damaged, while 421,000 hectares of crops were totally destroyed.
http://www.mca.gov.cn/article/zwgk/mzyw/201411/20141100723376.shtml
China’s CPI Growth Continues to Slow Down
Economic Information Daily reported that the anticipated growth of the Consumer Price Index (CPI) in October will reach a new low of 1.4 percent. It is likely that the 1.6 percent growth earlier, which was the new low for the last 56 months, had not bottomed out. Estimates for the CPI growth for October came in at 1.4 percent. Analysts believe that the consecutive decline in the CPI monthly growth is indicative of the deepening pressure from the deflation in the world economy. The sharp slowdown in the CPI and PPI growth requires further relaxation of China’s monetary policy.
Seventy Percent of Coal Companies in the Red; Inventory Hits 400 Million Tons
On November 5, 2014, the 21st Century Business Herald reported that, at 400 million metric tons, the inventory of coal in 2014 has hit a record high in China. Seventy percent of coal companies are in the red.
China’s Banks See Non-Performing Loans Surge
The cooling off of the housing market and the economic slowdown have led to a sharp increase in bad debts and in the non-performing loan (NPL) ratio.
Foreigners Filed Half of the Cases Involving Disputes over Trademark Licenses
According to the Beijing Higher People’s Court, trademark licensing cases have spiked in the past two years. Foreigners have filed half of them.
New Rules to Battle Local Government Debts
On October 28, China’s Ministry of Finance issued the first of a series of directives on handing outstanding local government debt.
SAFE Acknowledges China Currently Has Capital Outflows
On October 23, 2014, Guan Tao, head of the department of international payments at the State Administration of Foreign Exchange, said at a press conference that China currently has capital outflows but it is considered a risk or a problem.