China Business News 2012

China's 4.5% Inflation Rate

February 2012
According to the Chinese National Bureau of Statistics the annual inflation in China accelerated to 4.5% in January 2012 compared to 4.1% in December and well above the analysts' forecast of 4.0%.
The hike follows five months of steadily easing rates following the 6.5% peak in July.

Fitch May Downgrade China's Rating

September 2011
Fitch credit rating agency warned on September 8 that it may downgrade China's yuan debt rating from the current AA- within two years.
The warning follows worry regarding bad loans after record sums which were lent by Chinese banks in the last two years.
Fitch downgraded in April 2011 China's long term local currency debt outlook from stable to negative.

Chinese Reserve Ratio 0.5% Rise

June 2011
The Chinese central bank decided to raise the banks' reserve ratio by 0.5% to 21.5%.
The rise, effective June 20 is the sixth rise this year.
The new decision is aimed to lower the volume of bank loans following concerns of the 5.5% May inflation, the highest in the last three years.

China's Interest Rate Rise

April 2011
The Chinese central bank raised on April 6 the interest lending rate for one year from the previous 6.03% rate to 6.31%.
The one year deposit interest increased from 3% to 3.25%.
The current rise, which is the forth rise in about six months is aimed to cool the rising inflation which increased by 4.9% in February, higher than the bank's forecast of 4%.

China Credit Rating Upgraded

November 2010
Moody's, one of the world biggest rating agencies, upgraded on November 11, 2010 China's government bond rating from A1 to Aa3 with a positive outlook.
Following China's GDP growth of 9.6% in the 3rd quarter compared to the same quarter in 2009 Moody's expects a 9%-10% growth of the Chinese economy in 2010 and a growth of 8%-9% in 2011.

Go Back

China Homepage | Security Policy | Terms of Service