CHINA GDP IS DEAD IN LINE AT 6.7%

• David Scutt, Business Insider Australia

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Chinese economic growth has met expectations, growing 6.7% year-on-year in Q1 according to China’s National Bureau of Statistics (NBS).

The figure was down slightly on the 6.8% pace of Q4 2015 and was the slowest year-on-year growth recorded since the March quarter of 2009.

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Despite the slight deceleration in growth, the NBS suggested that the economy had a “good start” to the year.

“The overall performance of national economy continued to be stable and move in a positive direction, with structural adjustment deepened, new impetus accumulated and positive changes showed on major indicators,” said the NBS. “The national economy enjoyed a good start”.

According to the NBS, the preliminary estimate for GDP was 15,852.6 billion yuan for the quarter, or around US$2.44 trillion.

“Calculated at 2015 prices, the GDP in the first quarter increased by 985.1 billion yuan year-on-year, 22.2 billion yuan more than that in the same period of last year,” said the NBS.

Growth across China’s tertiary industries – predominantly services – increased by 7.6% to 9,021.4 billion yuan, outpacing growth in the nation’s secondary (5,951.0 billion yuan) and primary industries (880.3 billion yuan) of 5.8% and 2.9% respectively.

The percentage figures, along with the value of each sectors contribution to overall GDP, suggests the economy’s transition towards growth powered by consumption and services continued to find traction in the early parts of the year.

Alongside the GDP report, the NBS also released industrial output, retail sales and urban fixed asset investment figures for March, with all of the data smashing expectations.

Industrial output increased by 6.8% from a year earlier, a sharp acceleration on the 5.4% pace of February and well ahead of expectations for an increase of 5.9%. It was also the fastest annual growth recorded since June last year.

Retail sales grew by 10.5%, above the 10.2% level reported previously and above forecasts for an increase of 10.4%.

Urban fixed asset investment rose by 10.7% between January to March compared to the same period a year earlier, topping expectations for an increase of 10.3%. The figure marked the fastest annual expansion since August 2015.

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As an unexpected bonus, the People’s Bank of China (PBOC) also released new bank lending figures for March alongside the NBS data, with that too topping expectations.

New lending rose by 1.37 trillion yuan, a figure well ahead of forecasts for an increase of 1.05 trillion yuan. From a year earlier the level of outstanding bank loans rose by 14.7%, topping expectations for an increase of 14.5%

Total social financing – the broadest measure of liquidity that captures lending from non-traditional sources – also accelerated, rising from 780.2 billion yuan in February to 2.34 trillion yuan in March.

M2, or broad money that includes cash in circulation and bank deposits, increased by 13.4% from March 2015, up on the 13.3% pace of February but below expectations for an acceleration to 13.5%. 

Read the original article on Business Insider Australia. Copyright 2016. Follow Business Insider Australia on Twitter.

5 things to know about China and Australia’s economic ties

Image: REUTERS/Petar Kujundzic

Written by

Joe Myers, Content Producer, Formative Content

Published

Monday 11 April 2016

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More on the agenda

Australia’s largest ever trade and business delegation to China has landed in the Far East. Prime Minister Malcolm Turnbull is leading a delegation of around 1,000 business leaders on a trip that will feature talks with President Xi Jinping and Premier Li Keqiang.

As the Chinese economy shifts to focus on services and middle-class consumption, the talks come at an important time for the economic relationship between China and Australia.

Here are five things to know about the economic ties between the two countries.

China is Australia’s biggest export market

In 2014, China accounted for 34% of Australian exports. This made them Australia’s top export market with a total value of around AUS$98bn, according to the Australian Government Department of Foreign Affairs and Trade.

China is the biggest market for items including Australian agricultural produce and energy products and services.

Image: Australian Government Department of Foreign Affairs and Trade

Australia is the second most popular location for Chinese direct investment

Over the past 10 years, Australia has seen the second highest volume of Chinese direct investment. From 2005 to 2015, only the USA had a higher accumulated total. Over this time, Australia received nearly US$80bn in Chinese ODI (overseas direct investment) and in 2015, Chinese investment grew by nearly a third (in US dollars) to US$11.1bn.

Chinese investment is concentrated on real estate

Nearly half of Chinese investment was in real estate last year. AKPMG report conducted alongside the University of Sydney estimates real estate investment hit AUD$6.85bn in 2015. This investment was almost exclusively focussed in just one state – New South Wales, a region including the city of Sydney – which accounted for 94% of the total.

Renewable energy and healthcare followed next as top investment areas. Renewable energy’s second place was the result of one very large deal between China’s State Power Investments Corporation and Pacific Hydro.

The report suggests “Chinese investment in Australia now reflects the new normal: China’s focus on middle class consumption – premium quality health, lifestyle and services.”

Image: KPMG

They have a new free-trade agreement

The China-Australia Free Trade Agreement has been in force since December 2015. Based on 2014 values, more than 86% of Australian goods exports to China now enter duty free. This should rise to 94% by 2019 and 96% by 2029. Australian tariffs on Chinese imports will also be progressively removed.

The agreement is also set to increase Chinese tourism to Australia, and relaxed rules for labour mobility will see more Chinese workers in Australia and vice-versa.

“Education is the quiet champion of Australian exports”

According to the International Institute of Education, in 2014 there were over 90,000 Chinese international students studying in Australia. This is significantly more than the rest of the top five combined, with a third of all international students in Australia from China.

In 2014, The Australian Business Review described education as “the quiet champion of Australian exports”. This influx of students brings massive economic benefits to Australia, in tuition fees and other costs while they study. But, as the Deputy Governor of the Reserve Bank of Australia, Philip Lowe, explained in a 2014 speech, it goes beyond that.

Chinese students studying in Australia help build relationships and “promote goodwill and can help identify cross-border business opportunities … to build new and stronger business ventures between our countries.”

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Author: Joe Myers, Content Producer, Formative Content. Joe Myers is a Content Producer at Formative Content.

I became a millionaire at 24 — here are my 7 best pieces of advice to create massive wealth

• Daniel Ally, Contributor
 
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Imagine if you were a millionaire right now.

You would have practically everything you want. You could enjoy the luxuries of life: the cars, food, clothes, house, and everything else that money can buy.

With money comes great respect and friends. Even more, many of your financial worries would immediately evaporate. Money gives you the freedom you've always wanted.

In order to achieve this major goal, you must select your tool for wealth and use it to serve a large number people. Whether its sports, medicine, or animals, you must find something you can devote your life to and find a way to monetize it.

If your idea is worthwhile, it will cut through competition like a knife through soft cheese. For instance, even with a prolific number of bloggers, my articles are still feasted upon by millions of people each month. My secret? Competence and confidence. You need the skills to pay the bills.

This means that you are willing to build your skills and confidently apply them to your dreams. For me, it was about sharing practical truths about success. What about you? What will you set out to do and how will you do it?

Before you reach your dreams, there are some mental habits that you'll want to pick up along the way.

Since people ask me about the mindset of being a millionaire, here are seven major rules to become massively rich:

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1. Aim for explosive growth

The typical worker expects a minimal increase in wages every year. In other words, if you made $50,000 this year, the next obvious step would be to aim for $55,000 next year. However, incremental growth won't make you a millionaire. Instead, you need to aim for explosive growth, like doubling or tripling your income every year.

Explosive growth can only take place when you apply your knowledge. In essence, be eager to learn and challenge yourself.  To be a millionaire in the next five years, you must rise above the daily distractions and pay the price. You must first seek to master yourself, then your business. To grow yourself, you must know yourself.

Reuters/Regis Duvignau

2. Know your daily rate

One of my clients was profoundly impacted when I told her about her daily rate. As a doctor, she was consumed with the notion that she was only worth $100,000 per year. However, when I told her that she was worth $400 per day, I showed her how she could make the leap to $1,000 per day.

(To get the daily rate, I divided $100,000 into 250 working days to get $400 per day.)

Once she realized that most of her days were filled with unnecessary tasks, she hired an intern. Since the intern was looking to learn from a doctor, the relationship was mutually beneficial. This helped the doctor save valuable time and money, which multiplied her results. Because this helped her to serve more clients, she now earns over $4,000 per day, which qualifies her as a millionaire.

Brendan Hoffman / Stringer / Getty Images

3. Impact = income

If you want to earn one million dollars, you need to help one million people. This means that the larger impact you make, the more money you can take. If you look at the biggest business leaders, you'll find that many of them have scaled their products and services, which allows them to dramatically reduce their prices and feed the masses.

Like your daily rate, you should find out how many people you impact each day. According to one study, the average person directly reaches about 27 people per day. If this is your number, how can you increase it? With the internet, you have the ability to make a bigger impact, which will give you a bigger income. To raise your income, raise your impact.

Miles Willis/Getty

4. Enjoy your wealth

I've seen some money teachers say, "If you stop buying a $5 latte every day, you'll be a millionaire in no time." I believe this philosophy is horrendously wrong because it prohibits you from enjoying your wealth. In other words, the person who does this is saying, "I cannot afford a coffee because one day I can be rich!" Completely illogical.

However, what you should be saying is this: "Since I've been blessed to have money, let me enjoy my wealth now. While I enjoy this latte, I can think of other ways to earn money so I can get more of these opportunities." By fully indulging in the $5 latte, you're basically saying to the Universe, "More of this, please!" If you fully accept this wealthy proposition, your expanding mind will start to produce bigger results.

Flickr/Butz.2013

5. Follow the rule of 100

People ask me all the time, "How do you get paid to speak?" or "How do you get on or in magazines?" Actually, it's easy if you consistently challenge yourself to produce the highest and best results. Simply put, if you do 100 of anything, you'll gain the proficiency to be perceived as an expert. Being perceived as an expert can allow you to charge higher fees for your services.

The key to the "Rule of 100" is to do it within 12 months. For instance, if you read 100 books on a certain subject within 12 months, you would be an expert. If you give 100 speeches in one year, you'll get paid. If you write 100 articles in 12 months, you'll get noticed. If you do 100 heavy workouts, you'll get in physical shape. The rule of 100 applies to most skill-building activities.

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6. Align with experts

To be a millionaire, you must burn the bridges of mediocrity. This means that you're ready to erase the average people, places, and things, even if they are family or friends. However, this can only happen when you start to align yourself with experts. When you get closer to industry leaders, these average people will automatically dissipate in your life.

Furthermore, the difference between an amateur and a professional is who they hire. Actually, most amateurs won't get far because they haven't hired anyone in the first place! If you want to get to the next level, you have to hire the best attitudes and aptitudes in the industry. When you do, your results will be infinitely rewarding.

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7. Create new responsibilities

The secret to success is to create new responsibilities for yourself. Once you create new responsibilities for yourself, you will then create more responsibilities for others. Since you're adding jobs to the market place, this is called "wealth creation." Once a person is employed, you get higher results for yourself and your impact is enlarged.

The millionaire is always creating new responsibilities, because they always have new ideas to implement. Once these ideas start to overwhelm them, they find employees who can fulfill the request. People are always ready to handle steady tasks for steady pay. In fact, 10% of the entrepreneurs in the world create responsibilities for 90% of employees in the world.

Now that I've taken you through a new world of ideas, you need to put them into practice. Which ones will you use? How will you use them? Once you start applying these rules of success, you will reach the rarefied airs of achievement. When people ask you how you did it, be sure to share this article with them!