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Economy/Resources - 139. page

People’s Daily: Registered Trademark Exceeds 10 Million but Few of Them are Recognized Worldwide

People’s Daily reported that, by October 7, 2015, the total number of registered trademarks in China exceeded 10 million. This number ranks the highest in the world, but few of them are recognized around the world. The article said that among the exported products, only 11 percent of the products are Chinese brands. In 2014, among the top 500 of the world’s brand names, 29 of them were from China. The article also indicated that some companies register trademarks only to seek profits while ignoring the practical usage of the brands, which is against the requirements of the trademark law in China.

Source: People’s Daily, October 19, 2015
http://finance.people.com.cn/n/2015/1019/c1004-27714357.html

Briefings | | |   Economy/Resources

Unemployment Rate for College Graduates from the Countryside Is 30.5 Percent

People’s Daily published an article reporting that the unemployment rate among college graduates who came from the countryside is 30.5 percent. The biggest obstacle that the group faces is a lack of job opportunities. Many of these students attend college with the costs emanating from their parents’ support. They are burdened with high expectations and pressure from the family. Some have had to seek further education hoping the situation might change in the future.

Source: People’s Daily, October 19, 2015
http://edu.people.com.cn/n/2015/1019/c1053-27711962.html

Briefings | | |   Economy/Resources

Six Costly Lessons for SOEs Foreign Investments

People’s Daily published an article which listed six mistakes that State Owned Enterprises (SOEs) made when they invested in overseas markets, resulting in huge financial losses. In the article, each mistake was supported by examples. The article stated that Chinese enterprises have a huge potential in the overseas market but they should also be cautious and need to learn the lessons from their past mistakes. The six types of mistakes are as follows: 1) The foreign government called off the contract due to a change in the political environment. 2) The bid price was too low and the actual expenditures came in much higher. 3) They didn’t take environmental issues seriously. 4) They lacked understanding of the local culture and customs. 5) They underestimated the power of the local union. 6) They rushed into certain decisions.

Source: People’s Daily, October 18, 2015
http://finance.people.com.cn/n/2015/1018/c1004-27710400.html

Briefings | | |   Economy/Resources

The Continuous Drop of China’s Foreign Exchange Reserves Demonstrates Intense Capital Outflow

On October 7, 2015, FX678.COM, a Forex & Gold media in China, published an article titled, “Foreign Exchange Reserves Data Demonstrates Intense Capital Outflow; Chinese Yuan (Renminbi) Faces the Risk of Further Depreciation.”

China’s foreign exchange reserves dropped US$43.26 billion in September 2015 after a record drop of US$93.93 billion in August. The continuous decline in the foreign exchange reserves indicates that depositors are worried about China’s economy. As a result, capital outflow from China has accelerated.  

“The more we want to protect the renminbi and cut interest rates, the more we stimulate depositors to transfer their assets abroad by selling renminbi. Devaluation of the renminbi will not only lead to inflation, but also increase the prices of the commodities that China exports."

Source: FX678.COM, October 7, 2015
http://news.fx678.com/C/20151007/201510071456342079.shtml

Briefings | | |   Economy/Resources

Caixin: China Lowers Down Payment Requirement to Prop up Sagging Property Sector

The People’s Bank of China, China’s central bank, and the China Banking Regulatory Commission, its banking regulator, said they would lower the minimum down payment requirement for first-time home buyers to 25 percent, from the previous 30 percent, in cities that do not have restrictions on purchases. 

This drop in the down payment requirement applies to major cities other than Beijing, Shanghai, Guangzhou, Shenzhen, and Sanya. 
Yan Yuejin, a housing industry analyst with the Yiju Research Institute, explained that, for the past several decades when Chinese residents have been allowed to purchase residential housing, this 25 percent down payment requirement is quite rare. 
Yan reasoned that the timing of this policy announcement was meant to stimulate housing sales during the extended China’s national day holiday season that started on October 1. He held the view that the fourth quarter would be good window for home purchase now that the down payment level has come down. 
Another analyst, however, Zhang Hongwei, of Tongce Consultancy, did not expect the need for a housing stimulus to go away any time soon, given the downward pressure on China’s economy. 
 Source: Caixin, October 1, 2015 
http://companies.caixin.com/2015-10-01/100860161.html
Briefings | | |   Economy/Resources

Caixin: September Chinese Manufacturing PMI Continued to Decline

The well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for September, which was 47.2. It is lower than the August number, which was 47.3. Caixin PMI was formerly known as HSBC PMI. It was a well-respected economic indicator monitored globally by financial institutions. The Caixin PMI has been on the decline for seven consecutive months so far. He Fan, Chief Economist at the Caixin Think Tank, observed that the overall Chinese manufacturing industry remains weak, which results mainly from the lack of demand. The key indicator that dragged down the PMI number was industrial output, which means manufacturers were producing fewer products. Total new business and new exports were still on the decline. The number of new export orders suffered a monthly decline, establishing a record since March 2009. The employment level in manufacturing shrank to an 80-month low. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline. 
Source: Caixin, October 1, 2015
http://pmi.caixin.com/2015-10-01/100860117.html
Briefings | | |   Economy/Resources

Xinhua: China Introduces Market Access Negative List System

Xinhua recently reported that the Chinese central government will introduce a negative list based market access management system. The negative list will be approved by the State Council and will clearly state prohibited or restricted industries, business fields, and markets for investments in China. All markets outside the negative list will have equal permission of entry for all parties. The design of the negative list considers basic principles such as the rule of law, national security, the progressive approach, the doctrine of necessity and the doctrine of publicity. The list is fully controlled at the central government level. Provincial governments may request adjustments but cannot maintain any such list of their own. Lower level governments are not allowed to manipulate the list. The new market access system will be piloted in some regions from 2015 to 2017. National implementation of the system is planned to start in 2018.
Source: Xinhua, September 21, 2015
http://news.xinhuanet.com/finance/2015-09/21/c_1116631412.htm
Briefings | | |   Economy/Resources

Minimum Wage Increased in 23 Regions

People’s Daily reported that, since the beginning of this year, at least 23 regions have raised their minimum wage. Among those cities, the monthly minimum wage in Shanghai and Shenzhen broke the 2,000 yuan (US$314) mark. While reports indicated that, in 2014, 19 regions had raised their minimum wage, the article said that the minimum wage in three provinces in Northeast of China has remained unchanged for over two years. According to the regulation published by the Ministry of Human Resources and Social Security, minimum wages need to be adjusted at least once every two years.

Source: People’s Daily, September 25, 2015
http://leaders.people.com.cn/n/2015/0925/c58278-27632080.html

Briefings | | |   Economy/Resources