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The latest release of PPI and CPI gave the China government more leeway to boost the economy, the National Bureau of Statistics said on Tuesday. Aliuser reckons this as a good sign.

The producer price index (PPI) grew 6.6 percent in October – the slowest pace in eight months, compared with 4.6 percent in September.

China’s consumer price index (CPI), the main barometer of inflation, rose 4 percent in October from a year earlier, compared with 8.3 percent in the nine months through September. 

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Morgan Stanely economist Wang Qing and JP Morgan chief economist Frank Gong both expected China exports in October could be slipped by as much as 20 percent despite a resilient export growth in September.

The warning came before China releases its macro date for October in the upcoming week. They said industrial output has slowed faster than exports, indicating that China economy was shrinking faster than expected.

Good news is inflation rate in China is easing continuously, according to Mr Wang. He noted that producer inflation (PPI)  and consumer inflation (CPI) were expected to stay around 7.9 percent and 4.3 percent, respectively. It provide a favorable factor for the China government to adjust its monetary policy.

Aliuser learnt that Alibaba ( HKSE 1688) has earmarked US 30 million on global promotion in an effort to help SMEs to expand its oversea market following a task force was formed in October.

 

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Jiangsu.alibaba.com

Jiangsu.alibaba.com

 

In an effort to boost trading activities in Jiangsu province, Alibaba ( HKSE 1688) rolls out a vertical ecommerce platform in the neighboring area.

The vertical, which is entirely targeted on trade in Jiangsu, covers a range of services in ” Featured Products in Jiangsu”, “Trade in Jiangsu (latest selling leads)”, “Trade in Jiangsu (latest buying leads)”, “Trading Partners in Jiangsu”. 

Unconfirmed report revealed that about 8% of SMEs in Jiangsu neighoring area has closed down due to the financial tsunami.

Leveraging on Alibaba.com search capability, users will be taken back to Alibaba search listing pages in the event of inputing keywords. Aliuser however, found it uncomfortable with the uncontrollable pop-up windows, which are very annoying.

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Alibaba ( HKSE 1688) must be as busy as bees, making sales calls to her clients on the heels of the latest announcement of a new entry-level Gold Supplier program slashing price to new users. The China internet company fleshed out a survival kit for SMEs with two major programs, bringing more sweetener to its paid members amid the global economy slowdown.

Gold Supplier Starter Pack

At the core of these programs was its “Gold Supplier Starter Pack”, the new initiative is targeted for novice users who can acquire the basic service at an annual fee of US$2,900 (RMB19,800). Entry-level services include storefront display and unlimited product listings. Alibaba can provide additional value-added services which include

  • Virtual Showrooms
  • Corporate email accounts
  • Storefront management tools – Traffic Analyzer and Buyer GPS

“With a range of value-added services, customers of our entry-level product realize further benefits by purchasing additional services such as Virtual Showroom and priority ranking based on keywords as they expand their presence on the internet”, Alibaba chief executive officer David Wei 

Alibaba  now offers full services to her existing “Gold Supplier” type paid members at US$5,000 per year.

Quality Supplier Program

In a bid to strengthen its authentication and verification policy, Alibaba also disclosed that she has partnered with VerSign, a trusted provider of Internet Infrastructure services for the network world, to enforce her quality-control strategy. All paid members are expected to get passed the A&V process conducted by an independent third-party agency.

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China is facing the storm

China prepares for the financial storm

Photo courtesy of http://www.eeo.com.cn

China’s latest bid to cut interest rates by by 0.27 percentage points as of Oct. 30 marks her starkness recognition that the economic turmoil is likely to exert pressure on its export-oriented economy structure.

The People’s Bank of China (PBOC) said the government’s cut in interest rates for the second time in one month, demonstrated their resolution to cope with the world crisis and bolster domestic economy by using a flexible monetary policy. The previous cut was on Oct. 8. 

Last week, The PBOC announced the benchmark one-year deposit rate would drop to 3.60 percent from 3.87percent, while the benchmark one-year lending rate would fall from 6.93 percent to 6.66 percent. 

In the meantime, the nation’s inflation pressure has been eased. Premier Wen Jiabao said he expected the downward trending inflation would keep falling for the remainder of the year.

While we get ready for the unavoidable growing pains, Aliuser suggests to taking a break, listening to ” Stand by me” by John Lennon to make ourselves feel better!!

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  • China’s August CPI gives room to move
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