(Source: CNN/Money) hinese officials recently said the Chinese economy grew at 8.5 percent in 2003 and most observers say the real pace of growth was much higher than that. But that is last year's story.

 

The story for this year is that China is likely to slow as its government, worried over overheating, tries to bring the economy in for a soft landing. The danger is that the economy slows too much -- an outcome that would have profound consequences around the world. article

 

Armin: Towards the end of the article is a good summary of potential mportant ramifications for investors if China slowed.

Interesting read about China: "What makes China different is that economic interests don't merely influence political policies; the two are joined at the hip".

 

(Source: Asia Times) To be rich is glorious, Deng Xiaoping exhorted his comrades, and it's so much more glorious when everybody knows about it. Last week, China strutted its nouveau riche stuff across the world stage. Smart investors stayed out of the way.

 

On Wednesday, insurance giant China Life completed the largest initial public offering in the world this year, raising a whopping US$3.46 billion, after raising allotments and pricing shares at the high end of estimates. In their first trading session on the New York Stock Exchange, China Life shares soared 27 percent. In the Hong Kong debut the following day, shares rose 26 percent.

 

That strong performance was no surprise. Three of Hong Kong's leading tycoons - including Li Ka-shing, the local counterpart of Warren Buffett as an investing trend setter - pledged to take a combined $500 million in China Life shares, prompting Hong Kong investors to dive in head first. Banks ran out of application forms for the offering. One brokerage reportedly suspended operations temporarily because of the strain on its capital due to overhanging China Life orders. article

(Source: FT) China maintained robust economic growth in 2003, registering a 9.1 per cent increase in annual gross domestic product in what was the country's fastest growth rate since 1997, the National Bureau of Statistics said on Tuesday.

 

The economy regained momentum in the second half of the year after the outbreak of severe acute respiratory syndrome (Sars) slowed the growth rate to 6.7 per cent in the second quarter. GDP growth in the third quarter was revised up to 9.6 per cent from the originally announced 9.1 per cent, while the economy soared 9.9 per cent in the fourth quarter, said Li Deshui, the bureau's commissioner.

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The economy expanded to $1,400bn in 2003, with GDP per capita standing at $1,090, the bureau said. link