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May 2, 2012

China factories bottoming out, HSBC PMI signals

BEIJING, May 2 (Reuters) – China’s manufacturing sector
showed fresh signs of bottoming out in April, with export orders
ticking up, but activity still contracted for a sixth
consecutive month, according to a private sector survey on
Wednesday.

“The seasonal rebound this year was much weaker than that in
the past, suggesting growth momentum remains soft,” Barclay’s
Capital analyst Yiping Huang said in a note to clients.

May 2, 2012

China HSBC PMI shows sixth month of contraction

BEIJING (Reuters) – China’s manufacturing sector shrank for the sixth month running in April, according to a survey on Wednesday that showed a continued divergence between China’s larger, predominantly state-owned enterprises and smaller, private firms.

The HSBC China Purchasing Managers’ Index, geared to smaller firms, improved to 49.3 in April from 48.3 in March, but remained below the threshold of 50 that divides expansion from contraction. Still, it showed that the rate of deterioration had slowed following a difficult first quarter when economic growth hit its slowest pace in nearly three years.

May 1, 2012

China data points towards economic recovery

BEIJING (Reuters) – China’s official purchasing managers’ index (PMI) rose to a 13-month high in April, signaling the economy has found a footing and may be recovering from a first-quarter trough, but smaller factories are still struggling.

The pick-up in the PMI to 53.3 from 53.1 in March indicated a further expansion in the vast factory sector, although it was slightly below market expectations of 53.6. Readings above 50 signal expansion while those below 50 point to contraction.

May 1, 2012

China’s official PMI rises to 13-month high in April

BEIJING (Reuters) – China’s official purchasing managers’ index (PMI) rose to a 13-month high in April, signaling the economy has found a footing and may be quietly recovering from a first-quarter trough, but smaller factories are still struggling.

The pick-up in the PMI to 53.3 from 53.1 in March indicated a further expansion in the vast factory sector, although it was slightly below market expectations of 53.6. Readings above 50 signal expansion while those below 50 point to contraction.

Apr 25, 2012

The parallel rise of China’s Bo Xilai and a business ally

DALIAN, China, April 25 (Reuters) – The wide-open sweep of
the Xinghai Plaza in the Chinese port city of Dalian is the
legacy of Bo Xilai, th e dynamic former mayor who was China’s
most openly ambitious politician, and who is now at the center
of China’s biggest political scandal in decades.

The plaza is also associated with multi-millionaire Xu Ming,
described by executives as Bo’s closest business ally, who is in
detention as well. The contract he won during the construction
of the plaza was the start of a relationship that authorities
are now investigating as part of a wider probe into Bo’s
business and political allies.

Apr 23, 2012

China factory activity stabilizing: HSBC Flash PMI

BEIJING (Reuters) – China’s factories stabilized in April as output ticked higher, new business rose from multi-month lows and export orders perked up, though not sufficiently for a private sector survey of purchasing managers to flag a return to expansionary territory.

The HSBC Flash Purchasing Managers Index, the earliest indicator of China’s industrial activity, recovered slightly to 49.1 in April from a final reading of 48.3 in March, but still remained below the level that signifies contracting economic activity for the sixth month running.

Mar 29, 2012

China to flood nature reserve with latest Yangtze dam

BEIJING (Reuters) – China’s Three Gorges Corp. on Thursday marked the beginning of construction for a dam that will flood the last free-flowing portion of the middle reaches of the Yangtze, the country’s longest river.

The 30 billion yuan ($4.75 billion) Xiaonanhai dam is decried by environmentalists because it will flood a nature reserve designed to protect about 40 species of river fish.

Mar 29, 2012

China raises foreign debt quota for foreign banks

BEIJING (Reuters) – China has bumped up the annual long-term foreign debt quota allocated to foreign banks to $24 billion, allowing them to bring more money into the country as growth slows in the world’s No.2 economy.

The National Development and Reform Commission, the powerful Chinese planning agency that announced the quota increase, also said it would launch a pilot project for increasing the debt quota.

Mar 28, 2012

China gives go-ahead to Wenzhou financial reforms

BEIJING, March 28 (Reuters) – China’s cabinet gave the
go-ahead on Wednesday for a pilot project it hopes will one day
form a cornerstone of nationwide financial sector reforms.

Private investors in the coastal city of Wenzhou will be
encouraged to buy into local banks and to set up financial
institutions such as loan companies and rural community banks,
the State Council said in a statement posted on the government’s
website.

Mar 26, 2012

Investors grapple with higher wages in “low-cost” China

BEIJING (Reuters) – U.S. lawnmower manufacturer Briggs & Stratton is used to worrying about turnover – just not the human kind.

Like many foreign investors in China, the Milwaukee-based firm has been hit by a steady rise in wages for the white collar employees who staff China’s shiny new office towers.

    • About Lucy

      "I am the Reuters Insider correspondent in China, where I have lived for ten of the last 15 years. Prior areas of coverage include political and general news, as well as commodities and energy policy and markets."
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