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.
Economy/Resources - 156. page
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
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.
People’s Daily: Banking Industry Suffers an Increase in Nonperforming Loans
China Index Academy: Statistics Show Prices of Newly Constructed Homes Dropped in October
Xinhua reported that, according to a report that the China Index Academy published, based on 100 cities that were sampled, the average price for newly constructed homes was 10,629 yuan (US$1,733) per square meter in October, down 0.4 percent from September and 0.52 percent lower when compared to the same period in 2013. According to the report, October is also the sixth consecutive month that saw housing prices drop. The report also projected that cash support from the banks will remain the main driver to determine the trend for the real estate market in the 4th quarter. It predicted that, in the fourth quarter, the market will continue to burn off the existing inventory, while housing prices could fall further compared to the previous months.
Source: Xinhua, November 3, 2014
http://news.xinhuanet.com/house/bj/2014-11-03/c_1113081410.htm
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.
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.
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.