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STI to cross 3000 boosted by long-term investors
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niuyear
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28-Jan-2011 11:44
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For singapore's cooling measures, i think our government should target this group of people - There are some super rich singaporeans, whom had a super rich forefather or father, leaving behind many big private landed properties to their loved ones. These rich singaporeans , leaving behind the inherited properties, then, migrated to foreign countries and gave up singaproe citizenship, never come back (or perhaps, never served NS, like every Singaporeans Male must do) , lived there YET, having these singapore properties, RENTING THEM OUT, collecting handsome amount of S$$$$$$ EVERY month!!! You say lar, must catch them or not?? p/s - have they ever wanted to come back to singapore , they have to re-apply to be a PR first and subject to approval!
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yummygd
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28-Jan-2011 11:43
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super juniors n wondergals? that side war?
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SGG_SGG
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28-Jan-2011 11:26
Yells: "karma karma karma chameleon" |
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It IS the super rich that have always/mainly benefitted from property. These people really have the excess cash, be it 3yrs 4 yrs, they have the holding power. (SG that is)... In some ways the upper middle class will be affected in their ventures to "earn" from property. But those with HUGE excess cash.. nahh...... Why does the government not build more HDB flats with better floor area, not pathetically crammed, at MORE affordable prices? Just look at the prices of HDB flats today, even for first time buyers. They wanna bring in more and more foreign talents (not that I am against them, the foreigners) but alot of these people have turned PR, and for many middle class foreigners, the affordable peice of property they can buy is HDB. So what happens to the citizens? They have to compete with this influx of foreigners. HDB flat prices go up. Example : PR who worked in SG as accountant, purchased a 4 room HDB flat. After living in SG for some years returned to homeland, still maintaining SG PR status. Now the flat is being rented out! Now, PR considering to return to SG in time, in order to maintain the PR status and the flat and work back in SG while applying PR status in AUS. If successful, sell flat at huge profit and relocate.
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krisluke
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28-Jan-2011 11:22
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sell and buy.. pre set target price bingo, sell or buy. I dun even see how high/low it go for that day. but got "expert" tips there could be a war in 2014 hor... be careful....
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krisluke
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28-Jan-2011 11:17
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Seoul shares slip, Samsung Elec hits record-high
* KOSPI dips after hitting record high previously
* Samsung Elec hits all-time high despite weaker earnings * Auto plays lose ground, weaker yen worry weighs SEOUL, Jan 28 (Reuters) - Seoul shares slipped on Friday weighed by falls in auto issues including Kia Motors, but gains in Samsung Electronics, which hit a fresh record high despite weaker quarterly earnings, lent support. The Korea Composite Stock Price Index (KOSPI) was down 0.78 percent at 2,098.42 points as of 0228 GMT. "The market is taking a breather following a recent streak of gains that lifted the market to a series of new historical highs," said Bae Sung-young, a market analyst at Hyundai Securities. "We are seeing strong sectoral plays today driven by earnings and outlooks," Bae added. Shares in Samsung Electronics, the world's No.1 memory chip maker rose 1.4 percent and hit a fresh historical high of 1,008,000 won despite reporting its weakest profit in six quarters. "The rebound will start as early as in the first quarter this year, catapulted by a robust recovery in the memory chip sector and pricing," said Shin Jin-ho, head of equity at Midas Asset Management. "Shares will probably extend gains through the first half of this year due to strength in memory chip momentum," Shin added. Shares of semiconductor makers were also helped after data from DRAMeXchange, a semiconductor industry tracker, showed spot prices of key DRAM chips rose in a 8-10 percent range. Shares in Hynix Semiconductor, the world's No.2 memory chip maker, jumped 4.1 percent. But shares in Kia Motors fell 2.7 percent after posting quarterly results that missed market forecasts. "I think the market's expectation is too high. They got so used to South Korean automakers posting double-digit growth that a single-digit expansion is not good enough any more," said Lee Sok-je, an analyst at Mirae Asset Securities. Worries about a weaker yen hurting price competitiveness of South Korean firms and Japan receiving warnings from the IMF and rating agencies, also weighed. Shares in Hyundai Motor, the country's No.1 automaker, lost 3.8 percent. Shares in Hyundai Heavy Industries outperformed and traded flat, after the world's No.1 shipbuilder posted a bigger-than-expected quarterly operating profit late on Thursday, on strengthening orders momentum and growing sales from its non-ship business. But shipping firms retreated after the Baltic Dry Index, which tracks rates to ship dry commodities, slid to its lowest in nearly two years on Thursday as weak sentiment and rising fleet growth continued to bite. Shares in STX Pan Ocean lost 1.36 percent and Hyundai Merchant Marine shed 2 percent. Losses in banks added pressure, as shares in KB Financial Group shed 0.7 percent and Hana Financial Group fell 2 percent. (Reporting by Jungyoun Park; Editing by Jacqueline Wong) |
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yummygd
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28-Jan-2011 11:16
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oh god....obvious bubble in asia..maybe e anticipated bursting of bubbles will come sooner den my 2115. 2113 more likely. even next year also possible. die la...next surge i must be discipline n sell all my stocks....
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krisluke
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28-Jan-2011 11:11
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that's way china authorities curb on property bubble. think china is a goldland... watery mouth comes if you want to make big money from there. to be frank, the law in china is always very very complicated to understand... if you understood, got business in mainland ? billionaire liao lor.
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krisluke
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28-Jan-2011 11:05
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well well well, see the curb on property. like that better stay in homeland, unless for the super rich. i think living in south korea is good la, my view | ||||
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niuyear
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28-Jan-2011 11:04
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One of my friend sold his property at almost 150% profit.!! China still lots of CASH rich ppl. If i want to evade tax or be taxed heavily if i am a businessman, i rather buy property. Cooling measure , where got effect? |
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krisluke
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28-Jan-2011 11:01
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Recent moves to curb property prices in Asia
Jan 28 (Reuters) - Two Chinese cities have introduced the country's first-ever property taxes, revving up the authorities' battle to prevent the market overheating.
This is the latest in a series of moves by Asian governments to tighten up property regulation in the face of record house prices. For a related analysis on why Asia is set for even more property regulation tightening, see . Following is a list of the latest main property measures unveiled in Asia: CHINA (TIGHTENING) - Shanghai and Chongqing announced China's first property tax for home buyers on Jan. 27, targeting people buying second homes. In Shanghai, buyers will pay a tax of 0.6 percent on their new second homes unless its value is less than double that of average market prices, in which case buyers need only pay 0.4 percent. In Chongqing, buyers of new second homes will pay a tax of 0.5 percent if homes are valued at two to three times average market prices. Homes valued at three to four times average market prices will be taxed 1 percent, with the highest tax not exceeding 1.2 percent. All villas and town houses in Chongqing will be taxed as well. - On Jan. 26, China's cabinet ordered city governments to set property price control targets in line with local income levels and raised mortgage down payments for second-home buyers. - On Dec. 25, China raised mortgage rates for people borrowing from housing provident funds by 25 basis points after the central bank increased benchmark interest rates by the same amount. - For a factbox on changes in China's property policy, click SINGAPORE (TIGHTENING) - The government announced new measures on Jan. 13 to clamp down on short-term investors and multiple buyers after home prices hit record levels at the end of 2010 despite previous efforts to cool the market. Anyone buying and selling residential properties within four years will have to pay stamp duty, up from the previous requirement of three years. Individual buyers who are still servicing an existing loan can only borrow up to 60 percent of the new property's value, down from 70 percent. For corporate investors, the loan-to-value limit will be cut to 50 percent. - The government announced on Nov. 25 that it will increase the supply of land for residential development in the first half of 2011. TAIWAN (TIGHTENING) - On Dec. 30, the central bank cut the maximum mortgage allowed for second homes in Taipei to 60 percent from 70 percent and extended this rule to three more areas around the capital. - Taiwan is planning to introduce a tax on short-term investment property transactions, with reports that the rate could be as much as 30 percent depending on the value of the transaction. - Since June, Taiwan's central bank has been asking banks to submit reports on their property-related loans every two weeks, central bank officials said. HONG KONG (TIGHTENING) - In November, the government announced high stamp duties on deals in which homes are bought and then sold soon afterwards, with the aim of clamping down on speculators. The stamp duty was set to as high as 15 percent if a home was resold in less than six months. It also lowered the loan-to-value ratio to 50 percent from 60 percent for properties valued at HK$12 million ($1.5 million) and above. - In October, the government said it was restricting immigration based on property investments and pledged to provide land for 20,000 private residential units annually over the next 10 years. - In August, the government lowered the mortgage loan ceiling to 60 percent from 70 percent for properties with transaction prices of HK$12 million or above. INDIA (TIGHTENING) - In November, India's central bank told mortgage firms to limit loans to 80 percent of the asset value, and asked lenders to raise provisions for home loans of over 7.5 million rupees to 125 percent of the loan value, from 100 percent now. THAILAND (TIGHTENING) - The Bank of Thailand said the loan-to-value ratio (LTV) for condominiums will be set at 90 percent, effective January 2011, while the LTV for low-rise housing units will be set at 95 percent in 2012. The new rule will apply to housing units worth less than 10 million baht ($335,700). Previously there were no value limits. MALAYSIA (TIGHTENING) - Malaysia's central bank set a new loan-to-value ratio of 70 percent for home buyers purchasing their third residential property, with immediate effect. SOUTH KOREA (LOOSENING) - In late August, the government announced that it would ease some mortgage borrowing restrictions for low-income earners buying homes for their own use. - The government has extended by two years the exemption from punitive sales taxes for multiple home owners beyond the original deadline set at the end of this year. (Compiled by Rachel Armstrong and Lee Chyen Yee; Editing by Robert Birsel; See www.reutersrealestate.com for Reuters' global service for real estate professionals) 2011-01-28 04:26:28 |
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krisluke
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28-Jan-2011 09:13
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Oil slips on OPEC output talk, economic concerns
* Jobless claims rise, Kuwaiti remarks weigh on U.S. oil
* Brent premium to U.S. crude hits 2-yr high * Coming up: CFTC positions data, 3:30 p.m. EST Friday (Recasts, updates with settlement prices and market activity) By Robert Gibbons NEW YORK, Jan 27 (Reuters) - Oil fell on Thursday on talk of more OPEC output to cool prices and a rise in U.S. jobless claims, even as tight North Sea supplies and investor momentum helped push Brent's premium U.S. crude to a two-year peak. Brent fell back from an intraday high of $98.95 per barrel after U.S. jobless claims and durable goods data pointed to an erratic economic recovery and the Kuwaiti oil company chief said OPEC may need to boost output as high oil prices threaten the economy. The head of the International Energy Agency later said he believed Saudi Arabia's output was more than reported. In London, ICE Brent crude for March fell 52 cents to settle at $97.39 a barrel. U.S. crude oil for March fell $1.69, or 1.92 percent, to settle at $85.64 a barrel, after breaking through a technical support above $86. "The jobless claims data raises significant doubt about the recent embrace of the notion of strong economic recovery. The durable goods report did not help the bullish case either," said John Kilduff, partner at Again Capital LLC. "Also, with Kuwait suggesting a possible output raise, on the heels of the recent (Saudi Arabia's oil minister) Naimi comments, more oil will likely be hitting the market from the OPEC -- officially or not." Farouk al-Zanki, Kuwait Petroleum Corp's chief, told Reuters in Davos, Switzerland, that he is concerned that current high oil prices may contribute to the start of another global downturn as they did in 2008. "If more supply would bring the price down -- then why not?" said Zanki, adding that Kuwait is currently producing within its OPEC quota. Brent's flirtation with $100 a barrel has increased pressure on OPEC to be ready with more supply to keep high-priced oil from stalling the economic recovery. Also in Davos, the IEA's chief Nobuo Tanaka told Reuters he believes Saudi Arabia is pumping more oil than it reports, while OPEC Secretary-General Abdullah al-Badri, denied the world's largest producer had raised production. Saudi Arabia's oil minister Ali al-Naimi said on Monday he was concerned about speculation in the oil market and said OPEC supplies could rise over time as the rate of non-OPEC supply slowed. Supporting the idea of more OPEC supply forthcoming, seaborne oil exports by OPEC, excluding Angola and Ecuador, will rise by 330,000 barrels per day in the four weeks to Feb. 12, according to U.K. consultancy Oil Movements. While competing views tussled in Davos about OPEC oil production intentions, mixed U.S. economic data contributed to oil's weakness. While higher U.S. pending home sales in December provided a bright spot, initial jobless claims in the United States rose last week, with the four-week average also up and durable goods orders down in December. BRENT/WTI SPREAD AND CUSHING STOCKS Brent found support from news that Statoil reduced rates at its 113,000-barrel per day Troll oil and gas platform for what it said would be under a week of work, even as two other North Sea fields resumed production. Ample U.S. crude stocks, including at the Cushing, Oklahoma, hub, delivery point for U.S. benchmark West Texas Intermediate crude, have helped boost the premium of ICE Brent crude to WTI, pushing it to more than $12 intraday on Thursday, its highest since January 2009. Stocks at the Cushing, Oklahoma terminal rose in the week to Jan. 21 by 862,000 barrels due to a fall in refinery utilization and rising imports, according to Wednesday's weekly report from the Energy Information Administration. Stocks up to Jan. 25 dipped by nearly 500,000 barrels, according to mid-week data from Genscape. (Additional reporting by Claire Milhench in London and Florence Tan in Singapore; Editing by Marguerita Choy) 2011-01-27 23:45:43 |
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krisluke
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28-Jan-2011 09:11
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Broadly lower after weak US data; metals jump
* Oil, gold and most crops lower; copper, soy, sugar up
* Weak US job and manufacturing indicators weigh on prices * Coming up: UMich US business sentiment reading on Friday (Recasts, updates prices, market activity to settlement) By Barani Krishnan NEW YORK, Jan 27 (Reuters) - Prices of oil, gold and most crops fell on Thursday as weak U.S. job and manufacturing indicators made investors worry about how demand for raw materials would fare in a struggling economy. The Reuters-Jefferies CRB index, a broad measure of the asset class to many investors, marked its ninth decline in the 18 trading days so far for January. The 19-commodity index fell after high U.S. jobless claims and weak durable-goods orders weighed on prices. Not all commodities closed lower though. Copper rose its most in two weeks and tin hit its fifth record high in as many days. On the agricultural side, soybeans stayed near 2-1/2 year peaks and sugar came within a whisker of 30-year highs. The dollar's slight drop against the euro provided feeble support to commodities. But it was not enough to extend the previous session's 1.5 percent gain for the CRB, which was the index's best since the year began. Gold also did not benefit from the softer currency, falling more than 2 percent, its biggest decline in more than three weeks. The selling pressure set in early, after U.S. macroeconomic data showed jobless claims rising their most in a week since September 2005 and new orders for locally made goods falling 2.5 percent in December. "It does show that the recovery is growing in fits and starts," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "The market was looking for an improving trend, but we didn't get it." For Friday, investors are expected to focus on the latest reading on US business sentiment from a University of Michigan-Reuters survey. U.S. crude oil fell $1.69, or almost 2 percent, settling at $85.64 a barrel. London's Brent crude lost 52 cents to finish at $97.39 a barrel. Aside from the weaker U.S. data, oil was pressured by talk that OPEC may have to boost output if prices continue to rise, threatening global economic recovery. Spot gold fell as low as $1,310.99 an ounce, the weakest price since Oct. 5. U.S. gold futures settled down $14.60, or 1.1 percent, at $1,318.40. Copper futures in London rallied $191 to finish at $9,441 a tonne, just $340 away from its Jan. 19 record at $9,781. In New York, copper rose 7.15 cents, or 1.7 percent, to settle at $4.3385 per lb. Tin in London hit a record high of $29,300 a tonne versus $28,625 in the last session, propelled by tightening supply in major exporter Indonesia. (Editing by David Gregorio) 2011-01-28 00:51:42 |
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krisluke
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27-Jan-2011 17:37
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WoW !! hang seng death cat bounce today. with sse supported by long term investor. sti in directionless mode.. 2.5 days left to go before the long break.... Dj must correct hor or else fund managers will be very boring..... hsi tips resistance at 24000 pts sse tips resistance at 2850 pts sti tips resistance at 3250 pts dj tips resistance at 12600 pts s&p tips resistance at 1350 pts ftse tips resistance at 6200 pts itlms tips resistance at 23000 pts dax tips resistance at 7250 pts swiss market tips resistance at 7200 pts All bingos, rich man liao |
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niuyear
Supreme |
27-Jan-2011 17:07
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12000, to 13000 possible.
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niuyear
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27-Jan-2011 16:39
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Federal's coming stimulus might have a lift on the dead market. |
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krisluke
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27-Jan-2011 16:15
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laaaaaaa ... everyday I hangseng and shanghai or even DJ... today got somethings special..... SINGAPORE news OK .... Singapore Manufacturing Output up 9% On a year-on-year basis, Singapore’s manufacturing output increased 9.0% in December 2010. Excluding biomedical manufacturing, output grew 10.8%. The manufacturing output has also expanded 29.7% for the whole of 2010. On a year-on-year basis, Singapore’s manufacturing output increased 9.0% in December 2010. Excluding biomedical manufacturing, output grew 10.8%. On a seasonally adjusted month-on-month basis, manufacturing output declined 11.8% in December 2010. Excluding biomedical manufacturing, output increased 3.0%. Total Manufacturing Performance On a year-on-year basis, manufacturing output increased 9.0% in December 2010. Excluding biomedical manufacturing, output grew 10.8%. On a three-month moving average basis, manufacturing output in December 2010 increased 25.5% compared to the same period in 2009. For the whole of 2010, manufacturing output expanded 29.7%. On a seasonally adjusted month-on-month basis, manufacturing output declined 11.8% in December 2010. Excluding biomedical manufacturing, output increased 3.0%. Performance by cluster Output of the precision engineering cluster grew 29.0% year-on-year in December 2010. Production from new plants, and robust demand for refrigerating and semiconductor related equipment led the machinery & systems segment to a gain of 49.1% in December. The precision modules and components segment also grew 7.6% with higher production of metal precision components. For the whole of 2010, the precision engineering cluster’s output expanded 40.1%. The chemicals cluster’s output grew 9.1% year-on-year in December 2010. Higher output in the petroleum and petrochemicals segments more than offset the declines in the other segments. Cumulatively, output of the chemicals cluster grew 12.9% in 2010. Output of the electronics cluster increased 9.0% in December 2010 from the same period in 2009. Within the cluster, the infocomms & consumer electronics and semiconductor segments recorded output gains of 29.4% and 15.9% respectively while the rest of the segments registered declines. On a year-to-date basis, electronics output increased 35.5%. The transport engineering cluster’s output expanded 8.1% in December 2010 on a year-on-year basis. The aerospace and marine & offshore engineering segments grew 22.4% and 4.7% respectively on the back of higher level of activities to meet scheduled deliveries. For the whole of 2010, output of the cluster declined 4.6%. Output of the biomedical manufacturing cluster expanded 1.2% year-on-year in December. The moderated performance in the cluster was mainly due to a pullback in pharmaceuticals output, as a different mix of active pharmaceutical ingredients was produced. The medical technology segment also registered a decline with lower export demand for medical instruments. On a year-to-date basis, the biomedical output grew 49.8%. Output of the general manufacturing cluster edged up 0.7% year-on-year in December 2010. The food, beverages & tobacco segment’s output grew 3.4% on the back of festive demand. The printing and miscellaneous industries segments, on the other hand, slipped 0.1% and 0.4% respectively. Cumulative output of the cluster for the whole of 2010 rose 10.7% compared to 2009. |
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niuyear
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27-Jan-2011 16:09
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Absolutely agreed! Planting rice is NEVER easy. The only way out is : China change their staple food to POTATOES which is much easier , lessser work. Thats why US and westerners staple food is POTATOES........ But too much Fried potatoes (like those of french fries) will give one a big and fat buttocks...............I am sure we see some from western countries.....sorry, no hard feelings/
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krisluke
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27-Jan-2011 16:07
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SHANGHAI, Jan 27 (Reuters) - China's main stock index rose 1.5 percent, led by a bounce in the small-cap shares and metal producers, which offset weakness in the property sector.
The benchmark Shanghai Composite Index ended at 2,745.3 points, extending a 1.2 percent rally on Wednesday. The property sub-index fell 1.2 percent after China announced fresh steps to cool the real estate market. An index of small-cap companies rose 1.8 percent, outperforming the broader market's rise. ($1 = 6.58 yuan) (Reporting by Chen Yixin and Kazunori Takada) |
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krisluke
Supreme |
27-Jan-2011 16:01
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China should not cap food prices -government economist
BEIJING, Jan 27 (Reuters) - Rapidly rising food inflation, a headache for consumers, is a good thing for Chinese farmers and the government should refrain from capping the price of grains and vegetables, a senior Chinese researcher said.
<For more on China inflation, click > Xianglin, an economist with the Central Party School, a training ground for Communist Party cadres, told Reuters that the current rise in agricultural product prices should be encouraged as it could boost farmer income. "China's agricultural products are under-priced," Xu, an expert on the rural economy, said in an interview. The Chinese government has put inflation control at the top of its economic agenda in 2011 after consumer prices jumped to a 28-month high last November, rising 5.1 percent from a year earlier. With rising food costs the biggest contributor to China's inflation, Beijing has launched a slew of countermeasures, including price caps on certain products. Xu, however, said it was unnecessary to control grain and vegetable prices. Farmers still do not make enough money from planting crops, he said, and prices of agricultural products are poised for a long-term rise. "By growing wheat, a farmer can make about 30 yuan ($4.56) per day according to current state purchase prices. But if a farmer goes to work in construction site, he can make 50 yuan a day," Xu said. Despite complaints about food prices in cities, Xu said that most urban residents can withstand food inflation, including the surging cost of some specific vegetable products. "Prices of garlic may have shot up, but how much garlic will urban households consume in a year?" Xu asked. Ma Jiantang, chief of China's National Bureau of Statistics, told a recent news conference that food weighed heavily in the country's consumer price index, accounting for an estimated 30 percent of urban household spending and 40 percent of rural spending. But Ma noted that food items would carry less in the CPI in future. As income levels rise, people tend to spend a smaller portion of their earnings on food. Xu said that rising food prices, a short-term pain for some urban residents, are a must for the long-term health of the Chinese economy. "If farming incomes remain low, China's plan of boosting domestic consumption won't be achieved," Xu said. ($1=6.581 yuan) (Reporting by Zhou Xin and Simon Rabinovitch; Editing by Don Durfee) |
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krisluke
Supreme |
27-Jan-2011 16:00
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Who gains from Chinese inflation?
BEIJING, Jan 27 (Reuters) - With China's inflation running near a two-year high, people are grumbling about fast-rising costs and the government is battling to rein in prices.
While runaway inflation would clearly be bad for the economy, not everyone loses from a moderate pick-up in prices. Here is a list of groups that stand to benefit. (For more on China inflation, click on ) FARMERS Food prices, which comprise about a third of China's consumer price index, rose 9.6 percent in the year to December, accounting for about three-quarters of the 4.6 percent inflation rate. While city dwellers bemoan hefty grocery bills, farmers are earning more. Rural incomes rose faster than urban incomes in 2010 for the first time in 27 years. Off-farm earnings were a big part of that, but rising food costs were also a boon, especially for those farmers raising the vegetable crops whose prices have risen most steeply. For the government, higher food prices support its goal of narrowing rural-urban income gaps. This helps explain why Beijing hasn't placed price caps on food items. Instead, it has focused on giving subsidies to hard-hit urban consumers. BLUE-COLLAR WORKERS One major structural reason for Chinese inflation is a shrinking supply of young workers. This is forcing companies to pay higher wages, especially in labour-intensive industries. Blue-collar workers have enjoyed wage increases far in excess of consumer inflation in recent years. A good indicator is minimum wage. Consumer inflation averaged 3.3 percent last year and economists expect an average rate of 4.3 percent this year. But in the export hub of Guangdong, a province in the south, minimum wages rose 21 percent last year and should go up a further 19 percent this year. Inflation may cut workers' real spending power, but leaves them better off overall. INDEBTED LOCAL GOVERNMENTS The massive spending programme that brought China's economy roaring back to life after the financial crisis has left behind big debts, especially at the provincial and city level. Local governments are estimated to have debts equivalent to about 20 percent of gross domestic product and economists worry that many will default, saddling banks with non-performing loans. At the margins, however, moderate inflation will make it easier for local governments to pay back what they owe as their debt loads shrink in real terms. REAL YUAN APPRECIATION Since lifting the yuan from a dollar peg last June, Beijing has let it rise less than 4 percent. But the yuan's real appreciation, accounting for the effect of inflation, was about 4 percentage points higher over that time. Although this may push up import costs in countries used to cheap Chinese goods, it will also help address the imbalances that plague the global economy by slowly chipping away at China's whopping trade surplus. Just ask Mexican workers. Rising China costs are pushing global firms to build more factories in Mexico. Nevertheless, real appreciation is still a distant second-best alternative to nominal appreciation, because heavy inflation exacts a heavy toll on an economy. CHINA'S ECONOMIC RESTRUCTURING Moderate inflation would also provide useful lubricant for other structural changes needed to put the Chinese economy on a more solid footing. The World Bank has long argued that China needs to increase prices for utilities, especially energy and water, to ensure that companies consider actual costs when making their investment decisions. If inflation drives these input prices up, that would go a little way towards redressing the misallocation of resources in China's headlong rush towards growth. (Writing by Simon Rabinovitch; Editing by Don Durfee and Nick Macfie) |
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