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发帖数: 4825 | 1 http://www.bloomberg.com/news/2013-07-25/china-cuts-capacity-in
By Bloomberg News - Jul 25, 2013 8:10 PM CT
China ordered more than 1,400 companies in 19 industries to cut excess
production capacity this year, part of efforts to shift toward slower, more-
sustainable economic growth.
Steel, ferroalloys, electrolytic aluminum, copper smelting, cement and paper
are among areas affected, the Ministry of Industry and Information
Technology said in a statement yesterday. Excess capacity must be idled by
September and eliminated by year-end, the ministry said, identifying the
production lines to be shut within factories.
Enlarge image China Cuts Capacity to Reshape Economy as Manufacturing
Weakens
A worker handles a roll of steel at the Baosteel Group Corp. facilities in
Shanghai. Photographer: Doug Kanter/Bloomberg
HSBC Forecasts China Economy Will Grow 7.4%6:56
July 25 (Bloomberg) -- Stephen King, chief economist at HSBC Holdings Plc,
talks about China's economic growth and Asia's emerging markets. King also
discusses Federal Reserve monetary policy and the outlook for the global
economy. He speaks with Susan Li on Bloomberg Television's "First Up." (
Source: Bloomberg)
China’s extra production has helped drive down industrial-goods prices and
put companies’ profits at risk, while a survey this week showed
manufacturing weakening further in July. Premier Li Keqiang has pledged to
curb overcapacity as part of efforts to restructure the economy as growth
this year is poised for the weakest pace since 1990.
“This detailed list shows the government is serious in its efforts to
restructure the economy and is prepared to tolerate the necessary pain,”
Zhang Zhiwei, chief China economist at Nomura Holdings Inc. (8604) in Hong
Kong, wrote in an e-mailed research note late yesterday.
More than 92 million tons of excess cement capacity and about 7 million tons
of excess steel production capacity are expected to be wiped out under the
government’s plan, Zhang wrote. Nomura maintained its forecast of 7.4
percent economic growth for China in this quarter and 7.2 percent in the
fourth quarter.
Cement Company
Xinjiang Tianshan Cement Co. (000877), listed on the Shenzhen Stock Exchange
, is among companies on lists published by the MIIT accompanying the
statement. It was told to phase out 450,000 tons of capacity. One factory of
state-owned Wuhan Iron & Steel Group Corp., has been told to eliminate 400,
000 tons of steel capacity, according to the MIIT.
Separately, China central bank Governor Zhou Xiaochuan wrote in People’s
Daily today that the nation still faces large downward pressure on the
economy. He reiterated that the country will pursue a “prudent” monetary
policy and “reasonable” levels of money supply and credit, according to
the article in the Communist Party mouthpiece.
The industry ministry said on July 24 that China will accelerate the phase-
out of overcapacity in the second half of this year.
China is struggling to meet its annual economic growth target amid signs of
weakening manufacturing. A preliminary reading on July 24 for a Purchasing
Managers’ Index released by HSBC Holdings Plc and Markit Economics was 47.7
, which if confirmed in the final report Aug. 1, would be the lowest in 11
months. Readings below 50 indicate contraction.
To contact Bloomberg News staff for this story: Sarah Chen in Beijing at
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