Economy/Resources - 195. page

On August 14, 2012, Boxun reported that, according to Money Week magazine, since the beginning of August, 23 Chinese concept stocks have been delisted from U.S. stock markets,   .

Those enterprises that are still struggling in the U.S. stock markets are losing money, as their share prices have plunged. As an example of all China concept stocks, VisionChina Media’s share price fell over 96%. The nightmare continues. Those entrepreneurs who still have the "American dream" are the next to get hurt.

Source: Boxun, August 14, 2012
http://www.boxun.com/news/gb/finance/2012/08/201208140802.shtml

China Review News (CRN) recently published an article discussing how China should manage its large foreign exchange reserves. The article started by comparing China with Japan and Germany, two countries that also have large foreign exchange reserves. The ratio of net privately owned assets versus total foreign exchange reserves in Japan is 56%; in Germany it is 86%; and in China it is 50%. The article suggested that China should establish new policies to allow privatization of the ownership of foreign exchange and assets. The author offered four actionable items: (1) establishing a foreign currency based bond market that limits trading to domestic customers; (2) allowing foreign companies to issue bonds in Chinese currency; (3) with some restrictions, allowing domestic residents to invest directly in foreign markets; (4) loosening up the restrictions on Chinese companies’ international investments. The author expressed the belief that a certain level of privatization of foreign exchange reserves will lower the government’s foreign exchange management risks and will also lower the pressure of issuing more Chinese currency.

Source: China Review News, August 6, 2012
http://www.zhgpl.com/doc/1021/9/0/1/102190145.html?coluid=53&kindid=0&docid=102190145&mdate=0806070937

Qiu Shi, a magazine of CCP Central Committee, recently published an article discussing the direction in which China’s economy is headed, given the background of the global downturn. The author expressed the belief that, although the global economy seems to be recovering slowly, the long term expectations are that it is moving in a negative direction. The world economy currently is a mixed bag of a number of pros and cons, such as uncertainty in Europe, lowered global inflation, capital outflows in emerging countries, and global investments shrinking in value. Impacted by the world economy, China faces some challenges: (1) the high pressure of a downturn; (2) small businesses are still struggling; (3) food prices are fluctuating significantly. The author suggested that China should take positive actions: (1) government investments should continue; (2) the government should support strategic new industries; (3) Mid-Western provinces will have more growth based on industries that have moved from the east; (4) domestic consumer spending should be encouraged; (5) second half imports and exports will speed up. The article concluded that the Chinese economy still has hope despite its difficulties.

Source: Qiu Shi, August 2, 2012
http://www.qstheory.cn/jj/jjyj/201208/t20120803_174163.htm

On August 6, 2012, the National Population and Family Planning Commission of China released China’s 2012 Migrant Population Development Report. According to the report, the migrant population reached 230 million in 2011, accounting for 17 percent of the national population. Migrant worker’s average age was 28. In 2011, no more than 30 percent of the entire migrant workers population had insurance. Migrant worker’s insurance includes pensions, medical care, disability, unemployment, maternity, and funds for housing. Seventy-two percent of migrants either rent or share housing with others.

According to the report, China’s migrant workers work an average of 54.6 hours per week, far surpassing the standard 40 hour work week stipulated in China’s Labor Law. Only 51.3 percent of migrant workers have a fixed-term labor contract.

Source: The Central People’s Government of the People’s Republic of China, August 7, 2012
http://www.gov.cn/jrzg/2012-08/07/content_2199409.htm

China’s State-owned Assets Supervision and Administration Commission of the State Council (SASAC) recently held an internal meeting regarding the grim situation that state-owned central enterprises are facing. “Any investments involving large-scale expansion must stop,” said the person in charge on the meeting. “When the economic situation is not good, state-owned central enterprises must not only watch their own cash flow but also the flow of capital for their customers, both upstream and downstream.”

The SASAC has publicly warned central enterprises several times to get ready for “winter.” As of today, 36 central enterprises’ listed concept-class companies have publicized their 2012 reports. Out from these 36 companies, the net profits of 19 companies have decreased. This means that 52.8% of the central enterprises have shown reduced profits. In the first half of 2012, 94 out of 139 central enterprises continued to lose money or lost money for the first time, which means that 67.6% of China’s central enterprise companies are losing money. The deteriorated central enterprise companies are mainly in the manufacturing, electricity, petrochemical, transportation, and real estate industries.

Source: China Review News, August 7, 2012
http://www.zhgpl.com/doc/1021/9/1/5/102191591.html?coluid=10&kindid=253&docid=102191591&mdate=0807092907