Report archive
06 September 2012
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Waiting for BeijingThe Big Call
Weak outlook for exporters
Feeble EU demand is not the only thing ailing Chinese exporters. They are also contending with a rising cost-base and stronger overseas competitors.
Consumer China
Infant milk formula – tainted love
Ongoing mistrust of domestic infant milk formula brands following a string of safety scandals has proved a boon for multinational producers in this fast-growing, defensive sector.
Beingmate – growth potential for untainted domestic brand
As one of the few domestic infant formula makers not to be tainted by scandal, Beingmate has potential to grow, especially once a new production facility comes online later this year
Nestle – Pfizer acquisition a chance to rebuild in China
The proposed acquisition of Pfizer Nutrition will boost Nestle’s faltering attempts to tap into China’s infant formula milk market.
Danone – failing to cash-in on its import popularity
Danone’s Dumex brand is the number-two infant milk formula brand in China, but the French food giant is failing to exploit the growing popularity of its unofficially imported products.
Yashili – still struggling to repair the damage
Domestic formula milk maker Yashili has failed to reassure higher-tier consumers about the safety of its products following its implication in the 2008 melamine scandal.
Mead Johnson – China story intact despite short-term slowdown
The number-one infant milk formula maker in China is suffering a sales slowdown, but its long-term growth prospects remain strong.
Financial China
Alarm bells ring over overdue bank loans
While NPLs remain at low levels, the sharp increase in overdue loans is alarming
Selected financial charts
A selection of key financial data over the past fortnight
Capital Intensive China
Steel hits the buffers
A confluence of factors suggests that the actual decline in steel output in August may have been even steeper than semi-official statistics show
Gridlocked
A slowdown in power-grid investment is hurting suppliers and hampering capacity expansion plans.
Best of Chinese Commentators
Further delays to Budget Law amendment
A proposed revision to China’s Budget Law that would have enabled local governments to issue bonds directly has been delayed, generating heated debate among economists and academics
Tax reforms accelerate
A pilot scheme to replace business tax with value-added tax in several provinces could help ease the tax burden for service-sector companies.
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