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China Industrial Newsletter 2008
China industrial newsletter covers 18 major industries in China,
including logistics, medicine, chemistry, food and beverage, metal,
building materials etc. All these industrial news are monitored and
translated from major industrial newspapers and magazines in
China.

Detailed contents could be seen
here.

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more...
China July financial data shows obvious outflow of hot money
       
Chinese mainland banks received 5.6 billion U.S. dollars in foreign
exchange deposits in July, compared with 11.9 billion dollars the
month previous. Foreign exchange deposits were less than the
8.336 billion U.S. dollars foreign direct investment actually used
nationwide and the 25.28 billion dollars trade surplus in July. The
gap and the monthly decline pointed to an obvious outflow of
short-term speculative funds, or hot money. The outflow was
partly due to the strengthening U.S. dollar over the past couple
weeks. The short-term upward adjustment of the dollar resulted
partly from the downward movement of crude oil prices on
international markets over the past few weeks. China has been on
high alert against a quick outflow of hot money in quantity in a
short period, something which will affect the country's economy
adversely.
       
In a related development, central bank data showed the outstanding
amount of broad money supply, or M2, which covers cash in
circulation plus all deposits, stood at 4.46 trillion yuan (650.1 billion
U.S. dollars) through July, a growth of 16.35 percent over the
same period last year. The outstanding amount of narrow money
supply, or M1, which covers cash in circulation plus corporate
current deposits, was 1.55 trillion yuan, up 13.96 percent. The
growth rates for M2 and M1 were 0.39 percentage points and 7.09
percentage points, respectively, lower than the 2007 year-end level.
The slowdown indicated the ongoing tightening monetary policy
added to pressure on enterprises in funds. Through July, the
outstanding amount of savings deposits was 4.553 trillion yuan
nationwide, up 18.79 percent year-on-year. The savings deposits
have kept increasing since the beginning of this year.


ChinaMarketResearch.com 2008-08-1
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