Special Report: Global Financial Crisis
BEIJING, Nov. 2 (Xinhua) -- China's gross domestic product (GDP) growth is expected to slow to 9.4 percent in 2008 from last year's 11.4 percent as the shrinking exports will cool the world's fourth largest economy, according to a Chinese credit rating agency report on Sunday.
The fundamentals of the economy are sound, but falling export orders would take a toll on the national economy in the short term, and domestic consumption needed time to play a bigger role, said the report released by the China Chengxin International Credit Rating Co. (CCXI), a joint venture of China's first rating agency China Chengxin Credit Management Co. Ltd. and U.S.-based Moody's Corporation.
The changing external economic environment and the burst of domestic asset bubbles would exacerbate the slowing economy, said the report.
The proactive fiscal policy was key to preventing the economy from falling and there was room for further cuts in bank reserve requirement ratios and interest rates.
It predicted the economy would gain 8.6 percent in 2009, but it gave no explanation of its forecast.
China's economy grew at 9 percent in the third quarter, the slowest in five years, as the global financial crisis sapped demand for Chinese goods, and domestic industrial production waned in response to weak demand and rising raw material costs.
The government has lowered interest rates three times in the last two months, increased export rebates and cut property transaction taxes to boost domestic consumption.
The report said the world financial crisis would have limited direct impact on the domestic banking system, but it warned Chinese exporters of default risks of foreign buyers.
Insurers and securities companies would be affected as the domestic capital market was growing more connected to the international market.
In September, the Manila-based Asian Development Bank, projected China's GDP growth to fall to 10 percent this year and further ease to 9.5 percent in 2009.
The slow-down was a result of the combined effects of a reduced trade surplus, slower growth in investment, and the global economic downturn, the Asian Development Outlook 2008 Update has said.
China adopts flexible monetary policy to boost economy, cope with crisis
BEIJING, Oct. 31 (Xinhua) -- China's decision to cut interest rates on Thursday is part of its flexible monetary policy to cope with the world financial crisis and boost domestic economy, a central bank spokesman said on Friday.
Li Chao, spokesman of the People's Bank of China (PBOC) explained the government's cut in interest rates for the second time in one month. Full story
Global financial crisis spills over China's labor market
BEIJING, Nov. 1 (Xinhua) -- In the space of a year, Yang Chanjuan's career plan has changed direction. A soon-to-graduate college student in economics, Yang is feeling her fortunes being buffeted by the financial crisis.
Yang was recently told by her schoolmates already working in the financial sector that their companies would cut staff, or there would no bonus this year. Amid the turmoil and full of uncertainty, a job in banking or securities company was no longer desirable to her. As a result, she decided to apply for a government job. Full story
China's balance of payments maintains "twin surplus" in first half of 2008
BEIJING, Oct. 29 (Xinhua) -- China's current account surplus rose 18 percent to 191.7 billion U.S. dollars in the first half of 2008, the foreign exchange regulator said on Wednesday.
The surplus on the country's capital and financial account was 71.9 billion U.S. dollars, down 20 percent from a year earlier, said the State Administration of Foreign Exchange (SAFE). Full story
Banker: World financial crisis does not change China's economic fundamentals
BEIJING, Oct. 28 (Xinhua) -- China's economy is robust enough and has enough capacity to cope with the world financial crisis, said Hu Xiaolian, deputy governor of the People's Bank of China, or the central bank.
Hu made the remarks in a lecture held for the 11th National People's Congress Standing Committee on Tuesday. NPC Standing Committee Chairman Wu Bangguo and the committee's vice-chairmen attended the lecture. Full story
