介绍:
The latest data from the National Statistics Bureau shows that China's consumer inflation rose 2.5 percent in May, faster than April's 1.8 percent rise.
The May consumer price index (CPI) was just above analyst forecasts in a Reuters poll for a 2.4 percent increase.
Producer prices in China fell 1.4 percent on-year in May.
Q: The CPI rose 2.5% in May, is that because the base effect was lower and most importantly, food prices have finally started to rise again?
Q: The PPI is also important because it shows you how much onshore material prices are going up. And at the moment for May, it's mostly flat, does it suggests that domestic demand is still quite weak here in China?
Q: Analysts said Tuesday's inflation data suggested China's central bank had further room to loosen monetary policy later this year to support the economy, do you think so?
2,
China's central bank has announced it will cut the reserve requirement ratio for banks with a certain proportion of lending to the agricultural sector and small firms.
The move is meant to free up more cash for lending to boost the economic growth in China.
The People's Bank of China says the reduction will be effective from June 16th.
In making the move, the central bank also says the current amount of liquidity in the Chinese banking system is ample, and the direction of the monetary policy has not changed.
Q: This is a "selective" reserve requirement ratio cut within two months; The policy will apply to banks whose new loans to the agricultural sector or to small firms exceeded 50 percent of their total new loans last year, what signal does this send? Will this be effective to support the real economy?
Q: China sets different levels of RRR for banks. The ratio for bigger banks is currently 20 percent. Lowering the RRR, which aims to boost bank lending, is usually viewed as a measure to pump up the economy. But still there are a lot of debates among economists on whether the central government should free up more cash/liquidity to the market, are you for this policy move? Why?
Q: Although it's only selective cuts, the cut will cover two-thirds of the urban commercial banks, 80 percent of rural commercial banks and 90 percent of rural cooperatives. This move will release between 70 billion -100 billion yuan into the money market. How will the market react to this policy?
Q: How is it different from the cut the ratio across the board for all banks? Is this just part of micro-stimulus programs? Will there be further move or use of the monetary tools by the policymaker?
3,
The China Securities Regulatory Commission has approved 10 new IPO applications.
The move marks the official restart of the IPO process, which has been stalled since mid-February.
Five applicants will be listed on the Shanghai Stock Exchange and the rest on the Shenzhen Stock Exchange.
The applicants and their brokerages will set the share-issuing dates after talking with the two bourses, and release their prospectuses in the coming days.
The Commission plans to allow 100 new IPO's before the year is out.
About 600 companies are now awaiting to be listed.
Q: The restart of the IPO process, how do you see China's IPO reform? How far are we to set up a registration system rather than approval system?
Q: There're concerns about the restart of the IPO process, as investors are worried the new listings might dilute market values, leading to potential losses for people currently in the market. Do you share with this concerns?
4,
Moody's latest report is forecasting the current slowdown in housing demand here in China will last longer than the last two cycles.
An analyist with the firm says the downturns in 2008 and 2011 should be seen as a signal the government is unlikely to completely remove home purchase restrictions.
2008 and 2011 were proceeded by significant credit tightening, an increase in regulatory approvals and the widespread implementation of home purchase restrictions.
Moody's notes that after this, the housing market was subsequently boosted by stimulus measures and the loosening of credit conditions and liquidity.
Q: Take a look at the current situation on real estate market, Pan says it's like the Titanic clashing with the iceberg, others say it's not such a severe situation, how do you evaluate the landscape?
Q: What are the challenges? Liquidity issue, money chain broken, local government debt default, how will it hit the economy?
