The Chinese economy maintained a stunning growth rate in 2007.
On December 10, 2007, the Morgan Stanley Asia Chairman commented
that the Chinese economy has never grown so well and fast as it did
in the last five years. Now, China dominates not only the
labor-intensive manufacturing industries but also the consumer
electronic product manufacturing industries. The country has truly
become the engine for the global economy.
In 2007, the stock market experienced an unprecedented boom. The
key share index broke the 6,000-point mark for the first time in
October though it plummeted to around 5,000 later amidst the
tightening measures taken by the government. The real estate
industry continued to expand quickly and property price hikes were
very common all over the country.
The Chinese are getting richer and richer. More people have
become multi-millionaires. Now China, following the US, ranks the
second in the word in terms of the number of billionaires. Ordinary
Chinese are earnestly following domestic and foreign economic
issues. Increased numbers of people have swarmed into the stock and
securities markets in hope of making big money.
Some problems have also cropped up in 2007. The economy was on
the verge of overheating with bubbles in the real estate and
capital markets. Domestic consumer prices kept soaring. The CPI hit
a decade-high, reaching 6.9 percent in November. As a result, the
country has fallen victim to high inflation. Facing these problems,
the Chinese government will focus on cooling the economy and
curbing inflation in 2008. Additionally, the government authorities
will further reform the current distribution system that has
created a great imbalance in wealth accumulation throughout Chinese
society.
The following six articles display different dimensions of
economic development in 2007. You will read about Chinese economic
achievements and problems as well. You will discern the great
impact the economic transformation has made on Chinese society. You
can also hear the voices of two specialists from two totally
different fields, the securities business and the movie industry.
Enjoy your reading!
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Wealth
expands amid booming economy
In 2007, Chinese economy was still growing at an amazing rate and
the secondary market was experiencing an unprecedented boom.
Chinese people got richer. Under such circumstances, the byproducts
of wealth were noticeable almost everywhere throughout society. (More) |
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Distribution system undergoing a
change
Researchers have noted that China's limited consumption and
overheated investments are caused by ever increasing deposits.
China's savings ratio is much higher than the investment rate. The
excessive savings are a result of the current income distribution
system. (More) |
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China
experiences rising consumer prices
Beginning in August 2007 the growth rate of the Chinese CPI
remained above 6% and hit a record 6.9 percent in November. This
was a definite warning sign. China, however, was not the only
country to fall victim to high inflation. Most of the world
experienced high CPIs in 2007. (More) |
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Overheated economy lurking
In 2007 the Chinese economy was in danger of excessive liquidity
and high inflation. The central government enacted a series of
measures to balance the economy. But the trade surplus still
rocketed and consumer prices still soared. Relatively high
inflation was the end result. (More)
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'A dull
year' for Chen Feng, a fund manager
Chen Feng is in charge of a total of 27 billion yuan in Bosera
stock funds, but he's nothing special according to his colleagues.
He himself thinks he is only an ordinary white collar worker. (More) |
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Snapshot of jubilant movie mogul
Looking back on 2007, Wang Zhongjun said that he felt extremely
happy. China has witnessed flourishing development during the past
7 years. "Fortunately, Huayi Brothers seized their chance," said
Wang. (More) |
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