A Chinese national flag flies in front of buildings in the Lujiazui district of Shanghai. China surpassed Japan as the world’s second-largest economy in 2010. … [Read more...] about China government control endures through Xi’s embrace of market
Annual rate of return
Stock market volatility is back, a signal to some experts that the powerful rally that started in early March may be coming to an end. The Dow Jones industrial average rose or fell more than 100 points in seven of the past 12 trading days, capped by a 205-point advance on Thursday that left the index almost 53 percent higher than its closing level on March 9. The Dow's muted 17-point gain on Friday masked the fact that it swung nearly 108 points throughout the day after the government reported the unemployment rate rose to 10.2 percent in October. The latest volatility surge comes after a calm stretch. Over the preceding two months, there were just eight days where the daily Dow change exceeded 100 points. While the volatility brings back memories of last fall's financial crisis, few analysts are predicting a huge downdraft is coming. Instead, they say it's not uncommon to see choppy trading patterns when investors begin to fret that a bull market is running out of steam. "We've had a … [Read more...] about Stock volatility is back, a sign of an aging bull?
The specter of exorbitant rates By Pham Vu in HCMC For Aprocimex chairman Doan Trong Ly, it is lucky for his company to have secured a bank loan at an annual interest rate of as much as 16-17%. It is true that companies, especially small ones, have found it increasingly hard to access loans due to stiffer borrowing costs. Desperate needs for operating capital have even forced certain firms to borrow at 3% per month, or 36% per year, Ly is quoted by Lao Dong newspaper as saying. The unprecedented US$1-billion stimulus which the Government introduced in the wake of the global recession allowed the corporate sector to borrow at low cost through direct interest rate subsidies last year. The banking system's easy lending then led to higher-than-expected credit growth which caused concern over looming inflation. The Government was quick enough to stifle a return of high inflation by pulling back some of the extraordinary liquidity it injected into the economy. While a slight recovery was … [Read more...] about The specter of exorbitant rates
Tackling The Paradox Of GrowthReported by Son NghiaQ: Why have enterprises in HCM City made slow progress in the effort to transform their production structure?A: It takes time for enterprises to carry out the production restructuring. The transitional period is for enterprises to renovate technologies and invest more in human resources and equipment in order to manufacture new products. During this time, enterprises’ production will drop and some will even have to stop signing new contracts. Also, enterprises have to actively find new customers to guarantee their future output which has higher added value and is more suitable for their new circumstance after the transformation.During the past years, Vietnam’s GDP growth has hinged largely on export. On the path to transforming its export structure, HCM City has had to meet growth targets which are always higher than those of the previous years. In doing so, [many] enterprises have failed to materialize their plans for … [Read more...] about Tackling The Paradox Of Growth
Several commercial banks announced lending interest rate cuts, but companies complain they are being denied access to the lower rates. Employees at Joint-Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, attend to customers in Hanoi. … [Read more...] about Companies still can’t borrow, despite lower interest rates