China Economic Watch: Chinese Labor Cost to Level with US by 2015; Steel Profits Tumble 96% in 1H

Chinese Labor Cost to Level with US by 2015: Natixis
Chinese labor costs are to catch up with the US in four years, the Eurozone in five years and Japan in seven years, according to a report released by French banking group Natixis SA.

China Steps Up Opening Capital Market to Foreigners
China has enacted new rules for foreign investors in a move to ease restrictions and grant them broader market access, the Wall Street Journal reported. Under the new rules, the China Securities Regulatory Commission said it had lowered minimum qualification requirements and simplified the approval process for applicants under the Qualified Foreign Institutional Investors program and that it had allowed QFIIs to invest in China's quickly expanding interbank bond market and new high-yield bond market.

Steel Profits Tumble 96% in 1H
The 77 steel mills tracked by the China Iron & Steel Association reported being ¥118 million in the red in June, slipping back into losses after three straight profitable months, figures from the association show. In 1H 2012 steel profits plunged 95.8% year on year to ¥2.39 billion as steel prices kept running low. The dire conditions are expected to last throughout 2H 2012 after major steelmakers announced price cuts for August-delivery products.

Premium Incomes Rise 6% in 1H
China's premium incomes totaled ¥853.25 billion in 1H 2012, including ¥583.3 billion from life and casualty insurance and ¥266.9 billion from property insurance, up 5.9%, 2.4% and 13.5% respectively from 1H 2011, according to figures from the country's insurance regulator. The insurance industry's assets amounted to ¥6.78 trillion as of June 30 2012, up 17.9% from a year earlier. Insurance claims added up to ¥26.28 billion in 1H 2012, up 15.5% from 1H 2011.

Railways Ministry to Offer ¥27b Bonds
China's Ministry of Railways said it will issue ¥27 billion worth of bonds on July 31 to finance the construction of more than 40 projects. ¥22 billion of the debts will mature 10 years from now and the remaining ¥5 billion will mature in 15 years.

$1 = ¥6.33