31 December 2013 - China local government debt hits $3 trillion

Posted: 30 Dec 2013 05:44 PM PST

From:http://money.cnn.com/2013/12/30/news/economy/china-local-debt/

China's National Audit Office said that local government obligations hit 17.9 trillion yuan ($3 trillion) by the end of June -- a dramatic increase from the 10.7 trillion yuan figure reported in 2010.

The audit office said that debt levels are still controllable, echoing the statements of top Communist Party officials in recent months.

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain.

But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Related story: China pledges greater role for markets

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem has become a major policy goal.

Overall growth is slowing in China. The country is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported last week. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year.

Some analysts criticized the central bank for waiting too long, arguing that an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

-- CNN's CY Xu and Naomi Ng contributed reporting

Source:http://money.cnn.com/2013/12/30/news/economy/china-local-debt/

31 December 2013 - 沈阳土豪老板豪掷百万买金条发年终奖

Posted: 30 Dec 2013 04:56 PM PST

From: http://www.kwongwah.com.my/news/2013/12/29/64.html

（沈阳29日综合电）随着春节的临近，年终奖发放的呼声也越来越高，除了现金外，金条成为今年的热门产品！沈阳一土豪老板近日豪掷百万元，购买百余根金条作为年终奖分发给员工。

沈阳中街一家金店销售人员周六透露，几天前两名顾客来到店里购买金条，一次性购买了包括20克、50克和100克三种规格的金条一百多根。

"总价超过了一百万元。"销售人员说，本来店里货不足，是提前预订当天过来取走的。从购金人的交谈中得知，这些金条是作为年终奖来奖励员工的。

不过，对于购买金条的细节及购金人的公司名称，金店以"为客户保密"为由拒绝透露。

多家金店证实，近期确实有不少企业购买金条用来给员工发放年终奖，"以单位名义购买的有两种，一是作为礼品送给客户、二是发给员工或者高管作为福利。"

最近几年，购买金条作为年终奖在中国频频出现，对于购买金条作为年终奖奖励员工，有网友认为是企业的一种避税方式。

Source: http://www.kwongwah.com.my/news/2013/12/29/64.html

31 December 2013 - China local government debt hits $3 trillion

31 December 2013 - China local government debt hits $3 trillion

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