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Posted on Jan 24, 2015

China Wages Seen Jumping in 2014 Amid Shift to Services

China Wages Seen Jumping in 2014 Amid Shift to Services

By Bloomberg News January 06, 2014 Women holding umbrellas walk back to work after a lunch break in the Futian district of Shenzhen. In Shenzhen, the 13 percent rise in the minimum wage to 1,808 yuan a month as of February is almost double the pace of the previous increase. Photographer: Brent Lewin/Bloomberg China’s wages are set to increase by 10 percent or more in 2014, driving more low-cost manufacturers out of the country and boosting consumption, according to analysts at firms including Bank of America Corp. Lu Ting, a Hong Kong-based economist for Bank of America, said in an e-mail that he sees wage growth of 11 percent this year after an estimated 10.7 percent gain in 2013. JPMorgan Chase & Co. and Mizuho Securities Asia Ltd. analysts said in interviews that they predict 10 percent to 15 percent increases. China’s ruling Communist Party is pushing for pay increases to retain public support and to accelerate the nation’s shift away from polluting and capital-intensive manufacturing to a more...

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Posted on Jan 24, 2015

Fresh Signs of a Cooling Economy in China

Fresh Signs of a Cooling Economy in China

By REUTERS Published: January 6, 2014 BEIJING — Growth in China’s services industries slowed in December, separate surveys have found, echoing a slowdown in manufacturing and confirming views that the economy lost steam at the end of last year. HSBC on Monday released its purchasing managers’ index for services, compiled by Markit Economics, showing a drop to 50.9 in December, its lowest level since August 2011, from 52.5 in November. But the figure remained above the 50-point level that indicates expansion in activity. New business growth was the slowest in six months. A similar survey by China’s National Bureau of Statistics, released Friday, also showed a slowdown in service sector growth in December, to a four-month low of 54.6, from the previous month’s 56. Indexes from the government and HSBC last week showed that China’s factory activity slowed in December, suggesting the moderation in the country’s growth in the final quarter of 2013 was broad-based. The weaker purchasing managers’ indexes contributed to a decline in Asian markets on Monday,...

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