Chief Economics Correspondent, China
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Dec 28, 2010

Corrected: Analysis: China property market limps into new year

BEIJING (Reuters) – Chinese housing prices are on track to dip early next year, with tighter monetary policy and rising inventories combining to take some air out of a market that some fear could yet swell into a bubble.

The government launched a campaign late last year to brake soaring property inflation, with the top-end sector in wealthy cities especially frothy. It succeeded for a while in stabilizing prices, but there have been signs of a pick-up in recent months.

Dec 28, 2010

Analysis: China property market limps into new year

BEIJING (Reuters) – Chinese housing prices are on track to dip early next year, with tighter monetary policy and rising inventories combining to take some air out of a market that some fear could yet swell into a bubble.

The government launched a campaign late last year to brake soaring property inflation, with the top-end sector in wealthy cities especially frothy. It succeeded for a while in stabilizing prices, but there have been signs of a pick-up in recent months.

Dec 27, 2010

Analysis: As China raises rates, don’t forget the yuan

BEIJING (Reuters) – China was Grinch-like in raising interest rates on Christmas Day, but in fact investors have good reasons to be grateful.

The government provided much-needed reassurance that it was determined to rein in price pressures — and a salutary reminder that more yuan appreciation than the market expects could be in the offing.

Dec 25, 2010

China raises rates again, more to come

BEIJING (Reuters) – China’s central bank raised interest rates on Saturday for the second time in just over two months, underscoring concerns that inflation may be entrenched and swift action is needed to get price pressures under control.

The intensification of policy tightening also reflects the government’s belief that the economy is fundamentally in a good shape.

Dec 25, 2010

Snap analysis: China raises rates again, more to come

BEIJING (Reuters) – China’s central bank raised interest rates on Saturday for the second time in just over two months, underscoring concerns that inflation may be entrenched and swift action is needed to get price pressures under control.

The intensification of policy tightening also reflects the government’s belief that the economy is fundamentally in a good shape.

Dec 16, 2010

China’s super-hawks come to terms with inflation

BEIJING (Reuters) – China is striding into an era where higher inflation will become a more permanent feature of its economic landscape, a shift that the government, long assumed to have zero tolerance for rising prices, is showing signs of accepting.

That would be a good thing.

A little bit of inflation would go a long way in China, providing lubricant for reforms from higher wages to more market-based resource pricing that are essential to restructuring the economy along consumption-driven lines.

Dec 15, 2010

Analysis: China’s super-hawks come to terms with inflation

BEIJING (Reuters) – China is striding into an era where higher inflation will become a more permanent feature of its economic landscape, a shift that the government, long assumed to have zero tolerance for rising prices, is showing signs of accepting.

That would be a good thing.

A little bit of inflation would go a long way in China, providing lubricant for reforms from higher wages to more market-based resource pricing that are essential to restructuring the economy along consumption-driven lines.

Dec 15, 2010

China set to attract $100 billion in foreign direct investment

BEIJING (Reuters) – China is on course to attract a record $100 billion in foreign direct investment this year, the commerce ministry said on Wednesday, evidence that it remains a top destination for global firms despite concerns about market barriers and rising labor costs.

China attracted $91.7 billion in foreign direct investment (FDI) in the first 11 months of 2010, nearly 18 percent more than in the same period of 2009, the ministry said.

Dec 15, 2010

China FDI jumps, set to attract $100 bln for full year

BEIJING, Dec 15 (Reuters) – China is on course to attract
a record $100 billion in foreign direct investment this year,
the commerce ministry said on Wednesday, evidence that it
remains a top destination for global firms despite concerns
about market barriers and rising labour costs.

China attracted $91.7 billion in foreign direct investment
(FDI) in the first 11 months of 2010, nearly 18 percent more
than in the same period of 2009, the ministry said.

Dec 14, 2010

China to raise inflation target in dovish signal

BEIJING (Reuters) – China will set a 4 percent target for consumer inflation next year, up from this year’s 3 percent objective, state television said on Tuesday, an indication that the government will desist from aggressive tightening even as price pressures mount.

The slightly higher threshold for inflation was consistent with another report in official media earlier in the day that China will aim to cap new loans at about 7.5 trillion yuan ($1.1 trillion) next year, a more generous ceiling than many in the market had been expecting.

    • About Simon

      "Simon has been chief economics correspondent for China since October 2010. He joined Reuters in 2006 and spent a year in London before being posted to Beijing. Simon has a B.A. from McGill University in Canada and a Master's from the University of Oxford."
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