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Higher profits likely but eye on rising consumer prices
By Wang Yanlin |
December 22, 2010, Wednesday
|
Print Edition
Print Edition
ALMOST two-thirds of business professionals in a survey expect their enterprises in China to earn higher profits in 2011, which will continue to be a boom year for the Chinese economy.
But 49.1 percent of the respondents identified rising consumer prices as the biggest potential obstacle to a healthy economy, followed by a property bubble and an appreciation of the yuan.
More than half of the participants are confident or very confident about China's economic outlook for 2011, with 57.6 percent predicting the country's gross domestic product to grow by between 8 and 10 percent, according to the annual economic business sentiment survey compiled by CPA Australia and released yesterday. The body interviewed 485 of its members in China who are in senior corporate positions.
About 64.3 percent of respondents said they expect their companies to earn more profit next year, while 20.8 percent expect profitability to stay the same as this year.
About 35.3 percent of respondents agreed that domestic consumption will become a major driver for China's economy next year, with energy, real estate, manufacturing and banking services as the major propellants.
"Clearly all the figures indicate that China's business leaders feel the country can look forward to a robust and growing economy in 2011," said Lawrence Lau, president of CPA Australia Shanghai Committee.
When asked about possible future economic issues, 49.1 percent of respondents felt surging consumer prices pose the biggest potential obstacle to a growing economy. Other worries were fears of a property bubble and an appreciation of the yuan.
They suggested the best ways for the government to manage inflation are to control commodity prices, stabilize rising property prices and raising interest rates on savings.
About 46.4 percent forecast the Shanghai Composite Index between 3,000 and 3,499 points next year.
But 49.1 percent of the respondents identified rising consumer prices as the biggest potential obstacle to a healthy economy, followed by a property bubble and an appreciation of the yuan.
More than half of the participants are confident or very confident about China's economic outlook for 2011, with 57.6 percent predicting the country's gross domestic product to grow by between 8 and 10 percent, according to the annual economic business sentiment survey compiled by CPA Australia and released yesterday. The body interviewed 485 of its members in China who are in senior corporate positions.
About 64.3 percent of respondents said they expect their companies to earn more profit next year, while 20.8 percent expect profitability to stay the same as this year.
About 35.3 percent of respondents agreed that domestic consumption will become a major driver for China's economy next year, with energy, real estate, manufacturing and banking services as the major propellants.
"Clearly all the figures indicate that China's business leaders feel the country can look forward to a robust and growing economy in 2011," said Lawrence Lau, president of CPA Australia Shanghai Committee.
When asked about possible future economic issues, 49.1 percent of respondents felt surging consumer prices pose the biggest potential obstacle to a growing economy. Other worries were fears of a property bubble and an appreciation of the yuan.
They suggested the best ways for the government to manage inflation are to control commodity prices, stabilize rising property prices and raising interest rates on savings.
About 46.4 percent forecast the Shanghai Composite Index between 3,000 and 3,499 points next year.
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