China Economic Watch: China Warned of Possible Systemic Banking Risk

China Warned of Possible Systemic Banking Risk
China's problems in credit, real estate, foreign exchange and debts are controllable when dealt with separately, but there is a chance of all of them striking at the same time and thus imposing a serious systemic risk on the nation's banking system, the IMF warned.

Chinese Carriers Responsible for 47% of Global Earnings in Q3
The net profits of the global aviation industry totaled $3.95 billion in Q3 2011, 47% of which was contributed by China's top four airlines, according to the International Air Transport Association.

Fewer State Firms with More Assets
China had 122 central government-run companies which combined held a total of ¥24.3 trillion in assets as of the end of 2010, compared with 185 and ¥8.3 trillion as of the end of 2003, according to the State-Owned Assets Supervision and Administration Commission. More than 80% of the companies were engaged in the petrochemical, power generation and telecommunications sectors.

China World's No 2 in R&D Investment
China's share of global investment in industrial research and development has increased from 2.2% in 1993 to 12.8% in 2009, overtaking Japan and second just to the US, according to a UN report.

Power Usage Up 11% in Oct
China consumed 379.7 billion kW hours of electricity in October, up 11.4% from a year ago, according to the National Energy Administration. During the first 10 months, power consumption rose 11.9% year on year to 3.9 trillion kW hours, where primary industries' consumption was up 4.4% to 87.2 billion kW hours, secondary industries' consumption was up 12.2% to 2.91 trillion kW hours, tertiary industries' consumption was up 13.6% to 425.2 billion kW hours and civilian consumption was up 10.1% to 473.7 billion kW hours.

China's Bank Lending to Hit ¥8t in 2012
China's bank lending will likely total ¥8 trillion in 2012, up from this year's projected ¥7.5 trillion, according to UBS AG (NYSE: UBS).

Guangdong to Sell ¥7b Muni Bonds
The Guangdong provincial government said it will sell ¥6.9 billion in bonds Friday, becoming the second local authority to do so after the central government lifted a 17-year ban last month. The Shanghai government today issued ¥7.1 billion in bonds.

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