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Survey finds prices intolerable to half of Chinese [Copy link] 中文

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Post time 2008-3-21 09:12:39 |Display all floors
BEIJING  -- A 50-city quarterly survey conducted by the People's Bank of China (PBOC) found that in the first quarter, 49.2 percent of the 20,000 respondents said prices had become intolerable.

According to the results, released on Thursday, the proportion was a record high, up from 25.9 percent in the first quarter of 2007.

The central bank's report said that 47.5 percent of the respondents felt prices were rather high but still tolerable, down 16.6 percentage points from a year earlier.

It attributed the changes to recent price rises for food and the impact of the severe winter weather on prices of grain, edible oil, vegetables and fruits in southern China.

The PBOC said that 64.8 percent of the respondents expected further price rises in the second quarter, down 15.9 percentage points from a quarter earlier.

The report also said that 35.2 percent of the respondents said their incomes had increased, up 6.7 percentage points from the fourth quarter but two percentage points lower than the record, which was set in the first quarter of 2007.

About 22.6 percent of those surveyed were confident about their future income, down 3.2 percentage points from a quarter earlier.

As to interest rates, those who were satisfied with current levels -- following several central-bank increases -- accounted for 51.4 percent in the first quarter, up 11.8 percentage points from a year earlier.

The report found that 35.4 percent of those surveyed generally put their money into banks, up 5.2 percentage points from the quarter-earlier level, and that 27.6 percent tended to invest in stocks and mutual funds, down 8.2 percentage points quarter-on-quarter.

In a related development, the PBOC survey of 5,485 entrepreneurs found the confidence index went up 0.6 percentage points to 77.4 percent in the first quarter. Among this group, 19.3 percent considered the economy to be overheating, down from 21.6 percent a quarter earlier.

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Post time 2008-3-21 09:26:45 |Display all floors
Action is needed to bring wages in line with inflation. The government fiddles with the small levers while Beijing burns.
"Justice prevails... evil justice."

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Post time 2008-3-21 10:55:24 |Display all floors

Interesting...

... inflation is a tricky beast to tackle without a free fall in Chinese Exports - margins have be at a certain level for multi nationals to feel comfortable to stay.  If not...
China's Eccentric 'Uncle Laowai' from Chicago, IL

http://blog.chinadaily.com.cn/home.php?mod=space&uid=135031&do=blog&view=me&from=space

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Post time 2008-3-21 18:45:17 |Display all floors
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Roach Exterminator

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Post time 2008-3-21 20:57:11 |Display all floors
Trader,

This is not really true at this point. The government is no longer faced with tricky inflation business because inflation is also eating away at their companies. Upward revaluations will limit inflation without significant impact on industry at this point. Moreover, such a revaluation will entail converting some of its foreign exchange holdings into yuan because that is the easiest way to settle the balance issue; as such, that conversion can be used to fund infrastructural improvements targeted to dramatically increase the supply of desirable industrial areas by extending more infrastructure inland.

ZG,

Everyone already knows that you haven't the slightest clue what you're talking about, so you may as well not talk about it.
"Justice prevails... evil justice."

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Post time 2008-3-21 21:08:46 |Display all floors
ZG, do you mean the Fed like to play big swings with their rates?

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Post time 2008-3-21 21:50:18 |Display all floors
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Roach Exterminator

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