ID :
212065
Mon, 10/10/2011 - 13:44
Auther :
Shortlink :
http://m.oananews.org//node/212065
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China's economy on track for soft landing
HONG KONG, Sept. 10 (Yonhap) -- China's economy is on track for a soft landing, a report said Monday, thanks to strong domestic demand.
In the first six months of the year, the Chinese economy expanded 9.6 percent, compared with a 10.3 percent increase a year earlier.
Hong Kong-based Hang Seng Bank said in a report that China's economy is advancing more slowly on the back of monetary tightening and weakening external demand, but the probability of an economic hard landing is rather low.
"Mainland China's economic growth continued to moderate slightly in August on persistent monetary tightening," said Bill Leung, senior economist at Hang Seng Bank.
Hang Seng Bank expected that China's gross domestic product (GDP) will grow 9.3 percent for all of 2011.
Though China's consumer price inflation eased slightly to 6.2 percent in August from 6.5 percent in July, it was expected to remain at elevated levels for a few more months due to high food prices.
According to Hang Seng Bank, consumer price inflation will stay at about 6 percent in September and around 5.3 percent for the whole of this year.
The central People's Bank of China will keep the present interest rates and required reserve ratios (RRR) unchanged in the remaining months of this year, Hang Seng Bank predicted.
By the end of this year, the one-year benchmark deposit and lending rates would stay at 3.25 percent and 6.31 percent, respectively, and the RRR would be 21.5 percent for large banks and 19.5 percent for small- and mid-sized ones, it said.
In the first six months of the year, the Chinese economy expanded 9.6 percent, compared with a 10.3 percent increase a year earlier.
Hong Kong-based Hang Seng Bank said in a report that China's economy is advancing more slowly on the back of monetary tightening and weakening external demand, but the probability of an economic hard landing is rather low.
"Mainland China's economic growth continued to moderate slightly in August on persistent monetary tightening," said Bill Leung, senior economist at Hang Seng Bank.
Hang Seng Bank expected that China's gross domestic product (GDP) will grow 9.3 percent for all of 2011.
Though China's consumer price inflation eased slightly to 6.2 percent in August from 6.5 percent in July, it was expected to remain at elevated levels for a few more months due to high food prices.
According to Hang Seng Bank, consumer price inflation will stay at about 6 percent in September and around 5.3 percent for the whole of this year.
The central People's Bank of China will keep the present interest rates and required reserve ratios (RRR) unchanged in the remaining months of this year, Hang Seng Bank predicted.
By the end of this year, the one-year benchmark deposit and lending rates would stay at 3.25 percent and 6.31 percent, respectively, and the RRR would be 21.5 percent for large banks and 19.5 percent for small- and mid-sized ones, it said.
