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China-IMF/Chinese Economy
Beijing, China - Sept 26, 2016
1. Various of Alfred Schipke, Chief China Representative of IMF, giving seminar on latest Chinese economy report; various of slides
2. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"In our view, the short-term outlook is somewhat better, in part because of the stimulus that has been provided to the economy."
3. Graph of China's rising credit
4. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"What you can see is that the Chinese system continues to leverage up,more credit, more credit to the corporate sector. And the corporate sector is therefore more leveraged. Also now because the economy is slowing a little bit, has more difficulties in meeting its payments obligations. So there is the risk that on the one hand, there could be spillover to the financial sector because loans could become non-performing."
FILE: China - Exact date, location unknown
5. Various of home buyers looking at models of real estate projects
Beijing, China - Sept 26, 2016
6. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"The real estate part of the economy is an important part, and also the reason why the economy is performing better because of real estate has done better. So in our view, in order to lean against wind and avoid bubbles from occurring, it might be appropriate to use we call macro-prudential tools. So that could for instance imply changing the loan-to-value ratio for second mortgages."
FILE: Beijing, China - Exact date unknown
7. Various of Beijing central business district
Beijing, China - Sept 26, 2016
8. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"Now when it comes to the credit itself, it is important to call harden budget constraints. So that companies that should not be getting credit are ultimately rationed out."
FILE: Beijing, China - Exact date unknown
9. Tiananmen Square
FILE: China - Exact date, location unknown
10. Various of port
FILE: China - Exact date unknown
11. Chinese city skyline
The International Monetary Fund says in a new report that China's short-term economic prospects have improved. The report released on Monday attributes part of China's improvement to growth in the country's real estate sector. However, it also warned against the accompanying risks.
The IMF report reaffirms longstanding trends in the Chinese economy. One trend is a wide disparity in growth between different regions. Another is that growth in the services sector is outpacing industrial expansion. The IMF said China's contributions to world growth would remain strong.
"In our view, the short-term outlook is somewhat better, in part because of the stimulus that has been provided to the economy," said Alfred Schipke, Chief China Representative of IMF.
Such expansion is not without its problems. The IMF said a rapid increase in credit and corporate debt would likely jeopardize growth in the future, if not managed well.
"What you can see is that the Chinese system continues to leverage up, more credit, more credit to the corporate sector. The corporate sector is therefore more leveraged. Also now because the economy is slowing a little bit, has more difficulties in meeting its payments obligations. So there is the risk that on the one hand, there could be spillover to the financial sector because loans could become non-performing," said Schipke.
The report also expressed concern with a recent boom in assets, especially in the real estate sector of China's first-tier cities. Rising home prices have dominated Chinese headlines in recent weeks.
"The real estate part of the economy is an important part, and also the reason why the economy is performing better because of real estate has done better. So in our view, in order to lean against wind and avoid bubbles from occurring, it might be appropriate to use we call macro-prudential tools. So that could for instance imply changing the loan-to-value ratio for second mortgages," said Schipke.
The IMF said China has a sufficient buffer to guard against credit risks and asset booms. But moving forward the country faces a choice between reform and growth.
"Now when it comes to the credit itself, it is important to call harden budget constraints. So that companies that should not be getting credit are ultimately rationed out," said Schipke.
The agency's report said it sees reform approaches that address such issues in China's 13th five year plan, which could sacrifice short term growth speed for long term growth potentials. Moving forward, implementation will be key.
China-IMF/Chinese Economy
Dateline : Sept. 26, 2016/File
Location : Beijing,China
Duration : 2'26
Beijing, China - Sept 26, 2016
1. Various of Alfred Schipke, Chief China Representative of IMF, giving seminar on latest Chinese economy report; various of slides
2. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"In our view, the short-term outlook is somewhat better, in part because of the stimulus that has been provided to the economy."
3. Graph of China's rising credit
4. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"What you can see is that the Chinese system continues to leverage up,more credit, more credit to the corporate sector. And the corporate sector is therefore more leveraged. Also now because the economy is slowing a little bit, has more difficulties in meeting its payments obligations. So there is the risk that on the one hand, there could be spillover to the financial sector because loans could become non-performing."
FILE: China - Exact date, location unknown
5. Various of home buyers looking at models of real estate projects
Beijing, China - Sept 26, 2016
6. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"The real estate part of the economy is an important part, and also the reason why the economy is performing better because of real estate has done better. So in our view, in order to lean against wind and avoid bubbles from occurring, it might be appropriate to use we call macro-prudential tools. So that could for instance imply changing the loan-to-value ratio for second mortgages."
FILE: Beijing, China - Exact date unknown
7. Various of Beijing central business district
Beijing, China - Sept 26, 2016
8. SOUNDBITE (English) Alfred Schipke, Chief China Representative of IMF:
"Now when it comes to the credit itself, it is important to call harden budget constraints. So that companies that should not be getting credit are ultimately rationed out."
FILE: Beijing, China - Exact date unknown
9. Tiananmen Square
FILE: China - Exact date, location unknown
10. Various of port
FILE: China - Exact date unknown
11. Chinese city skyline
The International Monetary Fund says in a new report that China's short-term economic prospects have improved. The report released on Monday attributes part of China's improvement to growth in the country's real estate sector. However, it also warned against the accompanying risks.
The IMF report reaffirms longstanding trends in the Chinese economy. One trend is a wide disparity in growth between different regions. Another is that growth in the services sector is outpacing industrial expansion. The IMF said China's contributions to world growth would remain strong.
"In our view, the short-term outlook is somewhat better, in part because of the stimulus that has been provided to the economy," said Alfred Schipke, Chief China Representative of IMF.
Such expansion is not without its problems. The IMF said a rapid increase in credit and corporate debt would likely jeopardize growth in the future, if not managed well.
"What you can see is that the Chinese system continues to leverage up, more credit, more credit to the corporate sector. The corporate sector is therefore more leveraged. Also now because the economy is slowing a little bit, has more difficulties in meeting its payments obligations. So there is the risk that on the one hand, there could be spillover to the financial sector because loans could become non-performing," said Schipke.
The report also expressed concern with a recent boom in assets, especially in the real estate sector of China's first-tier cities. Rising home prices have dominated Chinese headlines in recent weeks.
"The real estate part of the economy is an important part, and also the reason why the economy is performing better because of real estate has done better. So in our view, in order to lean against wind and avoid bubbles from occurring, it might be appropriate to use we call macro-prudential tools. So that could for instance imply changing the loan-to-value ratio for second mortgages," said Schipke.
The IMF said China has a sufficient buffer to guard against credit risks and asset booms. But moving forward the country faces a choice between reform and growth.
"Now when it comes to the credit itself, it is important to call harden budget constraints. So that companies that should not be getting credit are ultimately rationed out," said Schipke.
The agency's report said it sees reform approaches that address such issues in China's 13th five year plan, which could sacrifice short term growth speed for long term growth potentials. Moving forward, implementation will be key.
ID : 8033035
Published : 2016-09-27 11:50
Last Modified : 2017-12-22 21:48:00
Source : China Central Television (CCTV)
Restrictions : No access Chinese mainland
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