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A MACRO ECONOMIC ANALYSIS:

CHINA

Presented by:
Sahil Bhambri (097) Saksham Sharma (098) Sawan Gupta (104) Tanuj Arora (117) Abhishek Bansal (134)

INTRODUCTION
China is the most populous nation on earth, with more than 1.2 billion people. China has the third largest landmass of any nation. Only Russia and Canada are larger. Since 1949, the country has been under communist rule.

Families are strongly discouraged from having more than one child.

ECONOMIC FACTS
China's economy grew 7 times as fast as America's over the past decade (316% growth vs. 43%). Chinese GDP could overtake the U.S. in less than 15 years. China's GDP per capita is the 91st-lowest in the world. In 2010 China became the world's largest exporter. In July 2005 China revalued its currency by 2.1% against the US dollar. When you buy Chinese stocks, you are basically financing the Chinese government. Eight of Shanghai's top ten stocks are government owned.

PRESENT DANGER EMANATING FROM EUROPE


1. It would drag Chinas growth lower.

2. Global growth rate falls by 1 percent, China would fall by 4 percent.

What China can Do???????


1. A fiscal packageof around 3 percent of GDP.
2. Direct subsidies to the purchase of consumer durables. 3. Financial and corporate sector reforms that would pave the way for Chinas citizens to share more fully in the dividends from high and sustained growth. 4. Shift the growth structure from exports and investment towards consumption.

5. Boost property demand through the government purchasing homes directly for social housing purposes.

6. The ongoing migration of resources into nonbank means of financial intermediation casts a widening shadow on monetary control and financial stability.

CHOICE OF MANAGERS IN CHINA


1. Increase the Exports :Since major contribution in GDP is from exports and if they have to grow at 7.5% there is a need for structural change. 2. Withdrawing the state from the economy :-

This process will ultimately increase consumptions contribution to GDP growth and increase household demand for all goods.

3. Channeling private investment :To be sure, one way around this sudden reduction in investment and the accompanying growth slowdown is to allow private investors to invest in areas formerly forbidden to them.

Booming Industries In China


Chinas online gaming industry will bring 6.1 billion USD. Coal provides about 7580 percent of China's energy consumption. China has the largest coal reserve in the world. As of 2010, China has become the world's largest automotive vehicle manufacturer as well as the largest consumer.

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