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Jul 25, 2012

IMF softens language on China yuan value as issue recedes

BEIJING (Reuters) – The International Monetary Fund said the Chinese yuan was only “moderately undervalued” against a basket of currencies in an annual assessment released on Wednesday, suggesting a lessening of international pressure on Beijing over its foreign exchange and trade policies.

The IMF’s new stance on the yuan’s value – it had previously called it “substantially undervalued” against the dollar – comes as the currency approaches what many regard as fair value, and as the issue recedes as a point of diplomatic friction between the West and China.

Jul 25, 2012

China economy set for soft landing, needs more reform: IMF

BEIJING (Reuters) – China’s economy is set for a soft landing even as global headwinds increase, the International Monetary Fund said in a report on Wednesday that urged further reform and currency appreciation to rebalance growth and reduce risks.

The report said economic reforms so far had substantially reduced external imbalances, but at the cost of significant domestic imbalances fueled by its investment-driven growth model.

Jul 25, 2012

IMF softens China yuan stance to “moderately undervalued”

BEIJING (Reuters) – The International Monetary Fund softened its stance on the Chinese yuan to “moderately undervalued” against a basket of currencies, and lowered its medium-term forecast for the current account surplus to between 4 percent and 4.5 percent of GDP, in an annual review released on Wednesday.

China has substantially reduced external imbalances but at the cost of significant domestic imbalances fuelled by its investment-driven growth model, the IMF said in the report.

Jun 29, 2012

A club in China to help entrepreneurs go overseas

BEIJING (Reuters) – Chinese entrepreneur Feng Jun tried five times to set up overseas branches to market his MP3 players and other consumer electronics goods. Three of the branches made money, the other two failed, but he said they were all a “total headache.”

It was the headaches that inspired Feng’s latest venture, the Aigo Entrepreneurs Alliance (AEA), a club to help private Chinese companies navigate the uncertain world outside China.

Jun 21, 2012

China factories in eighth month of contraction – PMI

BEIJING (Reuters) – China’s factory sector shrank for an eighth straight month in June as export orders sentiment hit its weakest level since early 2009, according to a survey that indicates the country’s economic trough may extend well into the third quarter.

The HSBC Flash Purchasing Managers Index, the earliest monthly indicator of China’s industrial activity, fell to a seven-month low of 48.1 in June from a final reading of 48.4 in May.

Jun 21, 2012

China June export orders weakest since 2009-HSBC Flash PMI

BEIJING, June 21 (Reuters) – China’s factory sector
contracted for an eighth straight month in June, with export
orders and prices turning in their weakest showing since early
2009, a private-sector survey showed on Thursday.

The HSBC Flash Purchasing Managers Index, the earliest
monthly indicator of China’s industrial activity, fell to a
seven-month low of 48.1 in June from a final reading of 48.4 in
May.

Jun 21, 2012

China June factory activity down, exports poor -HSBC Flash PMI

BEIJING (Reuters) – China’s factory sector contracted for an eighth straight month in June, with export orders and prices turning in their weakest showing since early 2009, a private-sector survey showed on Thursday.

The HSBC Flash Purchasing Managers Index, the earliest monthly indicator of China’s industrial activity, fell to a seven-month low of 48.1 in June from a final reading of 48.4 in May.

Jun 17, 2012

Safety scandals give foreign dairies a boost in China

BEIJING/SHANGHAI (Reuters) – Global food and dairy companies are making another round of big bets on China’s fast growing dairy sector, hoping to position themselves as safe alternatives even after a lethal baby formula scandal burned many of them the first time around.

They are lured by a projected 10 percent annual growth and by Chinese consumers’ willingness to pay a nice premium for foreign brands as they remain wary of local brands’ safety records.

Jun 11, 2012

China loans rise could show govt steps gain traction

BEIJING, June 11 (Reuters) – China’s bank lending in May
rose more than expected, suggesting fast-tracked infrastructure
projects were creating loan demand and that measures to counter
a sharpening economic slowdown may be taking affect.

New loans figures followed a flurry of May data at the
weekend, which reinforced the view China is heading for its
sixth quarter in a row of slowing growth and helping to explain
a surprise interest rate cut last week – Beijing’s boldest
action yet to underpin economic activity.

Jun 11, 2012

China urges more “decisive action” on euro crisis

BEIJING (Reuters) – China said the euro zone finance ministers’ decision to lend Spain up to 100 billion euros ($125 billion) to shore up its teetering banks was a welcome short-term fix, but urged the bloc to take more decisive action to safeguard longer term stability.

A bailout for Spain’s banks, beset by bad debts since a property bubble burst, would make it the fourth country to seek assistance since Europe’s debt crisis began.

    • 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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