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Power Usage Picks Up in May
China's electricity consumption rose 5.2% year on year to 406.1 billion kW hours in May; the rate was 1.5 percentage points faster than the month before, the National Energy Administration said. Between January and May, electricity consumption was up 5.8% to 1.96 trillion kW hours, including 35.9 billion kW hours from the primary sector (down 3.5%), 1.44 trillion kW hours from the secondary sector (up 3.8%), 222.3 billion kW hours from the tertiary sector (up 12.4%) and 261 billion kW hours from civilians (up 14.2%). A total of 18.31 million kW of power generation capacity have been installed during the first five months, including 12.28 million kW of coal-fired capacity and 2.94 million kW of hydropower capacity.
China Broadens Insurers' Investment Spectrum
China plans to give insurers a broader range with investments, granting them more freedom to pursue higher returns and safeguard against potential risks, the Wall Street Journal reported, citing draft rules circulated by the country's insurance regulator. The move is in line with China's goal of deregulating its rigid financial system and allocating capital and resources more efficiently. The new rules by the China Insurance Regulatory Commission will allow insurers to invest in financial derivatives, including forward contracts, swaps, options and futures, both in the domestic market and overseas. They will also allow insurers to put more funds into equities and real estate.
Credit Suisse Dims Chinese Growth Outlook
Credit Suisse cut its forecast for China's economic expansion this year by 0.3 percentage points to 7.7% on falling corporate profits and an investment slowdown, and said that the nation faces years of weak growth, Bloomberg reported. "Government stimulus could moderate the downside risks to growth, but we do not see it providing sustainable upward growth momentum," Credit Suisse said. For the economy to regain its former strength, the government should break monopolies in banking and utilities, open the services industry, and deregulate interest rates and exchange rates, Credit Suisse added.
17% of Appliance Makers in the Red Jan-Apr
China's home appliance manufacturing industry saw its profit rise 10.8% between January and April from a year earlier, although an addition 17.2% of industry players reported losses during the same period, the Ministry of Industry and Information Technology said, without revealing exact numbers.
Green Industry Output to Total ¥4.5t by 2015
Output from the energy-saving and environmental protection industry is expected to reach ¥4.5 trillion by the end of 2015, making up 2% of China's GDP, according to the National Development and Reform Commission. China plans to reduce its CO2 emissions by 17% from 2010 levels by the end of 2015.
1b Mobile Service Users in China by 2016
The number of global mobile Internet service subscribers will more than double to 2.9 billion people by the end of 2016, including one billion from China, according to a PwC report.
$1 = ¥6.32
@2011 China Economy @ The China Perspective.
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