Market State in China !
China's interbank squeeze in June led to a sharp decline in the local stock markets and in early July , it was difficult to find someone who did not think that China's economy was to be found in big trouble.
On Monday, the Shanghai Stock Exchange was the largest increase since December 2012.
The Shanghai Composite Index by more than 13 percent from its low on 27 June its lowest point so far in 2013. Trade , inflation and manufacturing data from China in the past few weeks were all generally positive.
It is not clear that the economic fundamentals have improved significantly , or that the government made progress in reining in excessive credit creation and misallocation , but Beijing is doing its best to ensure a stable growth . The prediction of a " Lehman -style credit crisis " or a sharp slowdown have a few months appear to underestimate the central government 's determination to keep the things going.
Chinese BanksWe are three weeks from the end of the third quarter , as Chinese banks are back on their usual quarter-end voltages. But another liquidity crunch is unlikely for at least two reasons.
First, although interbank rates even higher than they were before June , the central bank has been injecting liquidity and the banks seem to have been taken in June naive. Second, the first October National Day holiday, the 64th Anniversary of the founding of the People 's Republic of China . It is hard to imagine that Beijing wants to experience a recurrence of something like the chaos in June immediately prior to such leave , the banks should the liquidity they need , one way or another .
The Financial Times published an opinion piece that was written on Monday by Prime Minister Li Keqiang at the opening of Summer Davos Forum in Dalian in later this week. Mr. Li , as expected , offered an upbeat Given the economic situation :
Observers wonder whether China's economic slowdown lead to a sharp decline - or even a hard landing - and whether our reform agenda derailed by complex social problems. My answer is that our economy is going to get their sustained and healthy growth upright and China to stay on the path of reform and opening . ...
the new Chinese governmentShortly after taking office in March, the new Chinese government has their policy was clear , economic growth, improve people 's well-being and promoting social justice . We can no longer afford to continue with the old model of high consumption and high investment. Instead, we need to take a holistic approach in pursuit of steady growth, structural adjustment and further reform.
Chinese Governement PolicyMr. Li comments to be defining some important markers for significant economic reforms that can come out of the third plenary in November. The reforms in this conclave is decided many months or longer to implement , but there are increasing signs that the leadership intends relatively bold steps .
A recent reform achievement for Mr. Li is the decision to create a Shanghai Free Trade Zone for which he apparently " fought strong opposition. " He sat down , and the plan for the zone was not only discussed at a meeting of the Politburo in late August but was called that meeting of the Politburo also for its relevance to broader reforms in the Chinese-language version of the official Xinhua .
China's economy still has a lot of problems , but bearish investors want to be careful in the fight against the dynamics of the November plenary.
strong competition My most recent column discussed the changing state of the smartphone market in China. Since then, the smartphone maker Xiaomi Hugo Barra , senior Google Android executive , hired to run its international business , confirmed a fund-raising at a $ 10000000000 Valuation (more than both Nokia and BlackBerry are worth ) , and introduced new mobile phones and Internet enabled TV .
Apple to introduce new iPhone at an event in California on Tuesday, and for the first time, it will hold a satellite event in Beijing just a few hours later. There are reports that the company is finally close to an agreement with China Mobile , the dominant mobile operator in China. A China Mobile deal is so strategic that it is hard to imagine that Apple CEO Timothy D. Cook not come to Beijing for the official announcement , so if Mr. Cook is on the Apple event in California on Tuesday , do not expect informed a China Mobile on Wednesday .
Apple needs help in China. Analysys International released its second-quarter revenue estimates phone unveiled last week that China's 77.11 million smartphones were sold in the quarter, Apple had only a 4.6 percent market share
Written by Gary