Standard & Poor's Ratings Services raised its long-term rating and underlying rating (SPUR) to 'BBB+' from 'BBB' on the Washington Health Care Facilities Authority's $82.4 million series 2005A and B hospital revenue bonds issued for Overlake Hospital Association (Overlake). The outlook is stable.
"The rating reflects Overlake's very strong operating performance since the onset of its relationship with Group Health Cooperative of Puget Sound (Group Health) and the overall strength of its balance sheet," said Standard & Poor's credit analyst Kenneth Gacka.
In November 2004, Overlake and Group Health entered into an agreement whereby Overlake would become the provider of inpatient and emergency services for Group Health's members located to the east of Lake Washington.
Fiscal 2009 marked the first full year in which Group Health patients were admitted under the new agreement at Overlake. Both inpatient admissions and total surgeries increased dramatically in 2009 largely as a result of the Group Health patients and, to a lesser extent, population growth. Fiscal 2009's admissions increased by an impressive 28% to 20,812 in fiscal 2009 from 16,294 in fiscal 2007 (the last full fiscal year without the impact of Group Health volumes). Similarly, total surgeries increased by 18% to 15,713 in fiscal 2009 from fiscal 2007's 13,282. Emergency visits also rose during that period, but at a more modest 4.6%. Group Health now accounts for approximately 24% of Overlake's total discharges. Volumes for the first quarter of fiscal 2010 are mixed: Year-to-date volumes on inpatient and surgical activity are slightly lower, while outpatient and emergency volumes are slightly higher as compared to the same quarter of fiscal 2009.
As a result of the substantial volume increase and Overlake's prudent management of expenses during this period of extensive growth, Overlake's operations have improved significantly. For fiscal 2009, operating income rose impressively to $36.2 million (9.1% operating margin) from fiscal 2008's $11.1 million (3.4% operating margin). A large $34.5 million other-than-temporary impairment of investments reduced fiscal 2009 excess income to $10.7 million (a 2.9% profit margin), still generating good coverage of maximum annual debt service (MADS) of 2.7x. Interim results through the three months ended Sept. 30, 2009, show continued strong operating performance, with a 7.0% operating margin, 9.0% excess margin, and MADS coverage of 4.0x.
Overlake's balance sheet strength continues to improve with respect to several key metrics due to its enhanced operations and the amortization of its significant 2005 debt issuance. At the end of fiscal 2009, Overlake had $159.5 million in unrestricted cash, equal to a strong 173 days' cash on hand. The interim fiscal 2010 financials at Sept. 30, 2009 (unaudited), show $177.6 million in unrestricted cash, equal to 189 days' cash on hand. Unrestricted cash as a percent of long-term debt has steadily improved over the last several years, with 86.3% and 75.4% cash to debt for the interim period of fiscal 2010 and fiscal 2009, respectively. Leverage remains relatively high, at 49.4%, at the end of the first quarter of 2010, but this number has steadily trended downward since the 2005 debt issue.
Overlake Hospital Medical Center is located in Bellevue, Wash., an affluent suburb of Seattle.
Saturday, November 21, 2009
Friday, November 13, 2009
CHINA'S OUTPUT, RETAIL SALES GATHER PACE IN OCTOBER
China said yesterday that massive government spending was paying off as a new wave of data showed the world's third-largest economy continued to strengthen, following the worst global crisis in decades.
Industrial production and retail sales picked up pace in October, while demand for Chinese exports improved, official data showed, putting the government's growth target of 8 per cent well within reach for 2009.
"Based on the October data, we have more reason to believe that the foundation for and confidence in achieving the full-year growth target have further strengthened," Sheng Laiyun, spokesman for the National Bureau of Statistics, told a news conference.
Beijing sees 8-per-cent growth as essential for job creation and keeping a lid social unrest in the country of 1.3 billion people.
Analysts said the data confirmed China's recovery was on track.
"The recovery appears to be broadening, with the drivers of economic growth shifting from stimulus-driven infrastructure projects to private investment and the improvement in exports," said Jing Ulrich, a Hong Kong-based economist with JP Morgan.
China's industrial output, which shows activity in the millions of factories and workshops around the country, expanded by 16.1 per cent in October from a year ago.
Its trade surplus nearly doubled last month from September, official data showed yesterday, indicating overseas demand for Chinese goods was strengthening.
The nation's trade surplus rose to US$23.99 billion (Bt798.6 billion) in October, up from $12.93 billion in September, the General Administration of Customs said in a statement on its website.
In the first 10 months of 2009, the trade surplus stood at $159.23 billion compared with $135.5 billion in the January to September period, customs authorities said.
Exports fell 13.8 per cent to $110.76 billion on-year in October, the best result since exports dropped by 2.8 per cent in December 2008 as the worldwide economic crisis began to set in.
Retail sales, the main measure of consumer spending, which the government sees as a key factor in boosting the economy, rose 16.2 per cent in October from a year ago, up from 15.5 per cent in September
"I think the contribution of consumption to economic growth will continue to rise because we can expect a consumption boom before the New Year and the Chinese New year," Sheng told reporters.
The nation's consumer price index, the main gauge of inflation, fell 0.5 per cent in October compared with the same month a year earlier, after falling 1.1 per cent in the first nine months of the year.
New Chinese bank loans dropped to 253 billion yuan (Bt121.9 billion) in October, the lowest monthly level since the beginning of the year, the central bank said.
The pace slowed after regulators told banks to rein in loan activity and step up risk management, while seasonal factors following the lending spree in the first half of year also played a role, economists said.
While the data was positive, some analysts warned the recovery was still too closely linked to the government's 4-trillion-yuan stimulus package unveiled a year ago and the massive bank lending.
Ben Simpfendorfer, an economist at Royal Bank of Scotland in Hong Kong, said the heavy industrial manufacturing sector, cars and metals, was leading the recovery thanks to government spending.
"This profile can be sustained through the first half of 2010," simpfendorfer said.
"However the recovery remains unbalanced...What we are looking for is the recovery to broaden," he said.
Industrial production and retail sales picked up pace in October, while demand for Chinese exports improved, official data showed, putting the government's growth target of 8 per cent well within reach for 2009.
"Based on the October data, we have more reason to believe that the foundation for and confidence in achieving the full-year growth target have further strengthened," Sheng Laiyun, spokesman for the National Bureau of Statistics, told a news conference.
Beijing sees 8-per-cent growth as essential for job creation and keeping a lid social unrest in the country of 1.3 billion people.
Analysts said the data confirmed China's recovery was on track.
"The recovery appears to be broadening, with the drivers of economic growth shifting from stimulus-driven infrastructure projects to private investment and the improvement in exports," said Jing Ulrich, a Hong Kong-based economist with JP Morgan.
China's industrial output, which shows activity in the millions of factories and workshops around the country, expanded by 16.1 per cent in October from a year ago.
Its trade surplus nearly doubled last month from September, official data showed yesterday, indicating overseas demand for Chinese goods was strengthening.
The nation's trade surplus rose to US$23.99 billion (Bt798.6 billion) in October, up from $12.93 billion in September, the General Administration of Customs said in a statement on its website.
In the first 10 months of 2009, the trade surplus stood at $159.23 billion compared with $135.5 billion in the January to September period, customs authorities said.
Exports fell 13.8 per cent to $110.76 billion on-year in October, the best result since exports dropped by 2.8 per cent in December 2008 as the worldwide economic crisis began to set in.
Retail sales, the main measure of consumer spending, which the government sees as a key factor in boosting the economy, rose 16.2 per cent in October from a year ago, up from 15.5 per cent in September
"I think the contribution of consumption to economic growth will continue to rise because we can expect a consumption boom before the New Year and the Chinese New year," Sheng told reporters.
The nation's consumer price index, the main gauge of inflation, fell 0.5 per cent in October compared with the same month a year earlier, after falling 1.1 per cent in the first nine months of the year.
New Chinese bank loans dropped to 253 billion yuan (Bt121.9 billion) in October, the lowest monthly level since the beginning of the year, the central bank said.
The pace slowed after regulators told banks to rein in loan activity and step up risk management, while seasonal factors following the lending spree in the first half of year also played a role, economists said.
While the data was positive, some analysts warned the recovery was still too closely linked to the government's 4-trillion-yuan stimulus package unveiled a year ago and the massive bank lending.
Ben Simpfendorfer, an economist at Royal Bank of Scotland in Hong Kong, said the heavy industrial manufacturing sector, cars and metals, was leading the recovery thanks to government spending.
"This profile can be sustained through the first half of 2010," simpfendorfer said.
"However the recovery remains unbalanced...What we are looking for is the recovery to broaden," he said.
Chiefs debate next step for recovery
No one doubts the global economy has recovered from the dark days of late 2008. But questions remain about how long the recovery will last, particularly as fiscal stimulus programmes run out of steam and central banks begin to tighten monetary policy.
For the Japanese motor giant Toyota,the policy today is "wait and see", said Ninnart Chaithirapinyo, vice-chairman of Toyota Motor Thailand.
The world's largest auto manufacturer will wait to see how economic trends develop as global stimulus programmes ease before committing to any new major investments, Mr Ninnart said at an economics conference held by Sumitomo Mitsui Banking Corporation.
"We need to see what the results of these stimulus programmes will be. Every country in the world has opened up spending. The question is, once fiscal stimulus stops,what will happen?" he asked.
Toyota's operations in Thailand are running at 80%of annual production capacity of 550,000 units.
Without clear signs of further growth,Toyota sees no need for additional investment to expand production at this time, Mr Ninnart said.
For the year to October, auto sales in Thailand are 18% lower than the same period last year, and sales are projected to contract by 15% for the full year.
Mr Ninnart noted that many countries in the region had implemented tax incentives to support strategic, labourintensive industries such as vehicle production.
Chin, for instance, has offered its consumers in the provinces subsidies for purchases of cars and motorcycles,India has cut taxes on new vehicles and Malaysia offers financial support for replacement purchases.
He rued the fact that Thailand, the largest automobile producer in Asean,had no definitive support measures for the industry to survive the current crisis.
Kan Trakulhoon, president and chief executive of the industrial conglomerate Siam Cement, said moves to integrate the Asean economies offered strong growth potential for Thai businesses,thanks to the country's favourable location in the region.
An integrated Asean represents a consumer market of 580 million people, he said, and up to 700 million if including southern China.
Mr Kan said Thai industries needed to increase their use of technology, creativity and innovation to increase value,and give consideration to global trends such as global warming and environmental protection.
He said Thailand had the potential to
serve as a financial and marketing hub for the region to complement its strengths in manufacturing.
But authorities should also rethink the tax treatment and other barriers to foreign workers, Mr Kan added, estimating that each expatriate worker, in addition to contributing needed skills to the workforce, also spends a considerable sum in the economy itself.Narongchai Akrasanee, chairman of the Export-Import Bank, said Asia would lead global economic growth for the next several years.
Asia now accounts for 26% of global GDP compared with 23% last year, he said. And the post-crisis landscape will shift away from western models to a more diverse range of democratic governance, while economic policy will shift from free market liberalism towards greater state regulation.
Ekniti Nitithanprapat, an economist and Finance Ministry spokesman, said Thailand's economic growth next year,projected at 3.3%, would continue to lag the economy's potential growth of 5% to 5.5%.
But the 1.43-trillion-baht Thai Khem Kaeng infrastructure investment programme, running from 2010-12, will help lift growth and provide the infrastructure needed for medium-term gains.
For the Japanese motor giant Toyota,the policy today is "wait and see", said Ninnart Chaithirapinyo, vice-chairman of Toyota Motor Thailand.
The world's largest auto manufacturer will wait to see how economic trends develop as global stimulus programmes ease before committing to any new major investments, Mr Ninnart said at an economics conference held by Sumitomo Mitsui Banking Corporation.
"We need to see what the results of these stimulus programmes will be. Every country in the world has opened up spending. The question is, once fiscal stimulus stops,what will happen?" he asked.
Toyota's operations in Thailand are running at 80%of annual production capacity of 550,000 units.
Without clear signs of further growth,Toyota sees no need for additional investment to expand production at this time, Mr Ninnart said.
For the year to October, auto sales in Thailand are 18% lower than the same period last year, and sales are projected to contract by 15% for the full year.
Mr Ninnart noted that many countries in the region had implemented tax incentives to support strategic, labourintensive industries such as vehicle production.
Chin, for instance, has offered its consumers in the provinces subsidies for purchases of cars and motorcycles,India has cut taxes on new vehicles and Malaysia offers financial support for replacement purchases.
He rued the fact that Thailand, the largest automobile producer in Asean,had no definitive support measures for the industry to survive the current crisis.
Kan Trakulhoon, president and chief executive of the industrial conglomerate Siam Cement, said moves to integrate the Asean economies offered strong growth potential for Thai businesses,thanks to the country's favourable location in the region.
An integrated Asean represents a consumer market of 580 million people, he said, and up to 700 million if including southern China.
Mr Kan said Thai industries needed to increase their use of technology, creativity and innovation to increase value,and give consideration to global trends such as global warming and environmental protection.
He said Thailand had the potential to
serve as a financial and marketing hub for the region to complement its strengths in manufacturing.
But authorities should also rethink the tax treatment and other barriers to foreign workers, Mr Kan added, estimating that each expatriate worker, in addition to contributing needed skills to the workforce, also spends a considerable sum in the economy itself.Narongchai Akrasanee, chairman of the Export-Import Bank, said Asia would lead global economic growth for the next several years.
Asia now accounts for 26% of global GDP compared with 23% last year, he said. And the post-crisis landscape will shift away from western models to a more diverse range of democratic governance, while economic policy will shift from free market liberalism towards greater state regulation.
Ekniti Nitithanprapat, an economist and Finance Ministry spokesman, said Thailand's economic growth next year,projected at 3.3%, would continue to lag the economy's potential growth of 5% to 5.5%.
But the 1.43-trillion-baht Thai Khem Kaeng infrastructure investment programme, running from 2010-12, will help lift growth and provide the infrastructure needed for medium-term gains.
EARNINGS DATA TO GUIDE INVESTORS
Investors will get some guidance about the economy this week from data issued not by the government but by big retailers in the form of third-quarter earnings reports.
The financial markets are still trying to get a sense of whether consumers, while worried about unemployment, are nonetheless willing to spend, especially as the holiday seaspend, especially as the holiday season approaches. Retailers' earnings reports and outlooks for the future sould give them clues about the economic recovery. Investors will also get a first look at on consumer sentiment during November.
"For this economy to really come back, we have to depend on the consumer," said Yu-Dee Chang, principal of ACE Investment Strategists.
The greatest obstacle to increased consumer spending is unemployment. And it's not only the unemployed who aren't spending, it's also those who are afraid of losing their jobs.
Investors did find some positives in the Labour Department's largely bleak October employment report on Friday. While the government said unemployment has risen above 10 per cent for the first time since 1983, the market managed a modest advance as investors theorised that the weak labour market would mean the Federal Reserve will keep interest rates low for some time.
Still, while traders ultimately didn't panic about the jobs data, they do know that the report could bode poorly for consumer spending, the largest component of the nation's economic acctivity.
Retailers' monthly sales reports released on Thursday showed shoppers were still were not splurging as unemployment climbed and credit remained tight. And the Fed said consumers borrowed less for a record eight straight month in September.
"Consumers aren't going to spend as much if they are worried about their jobs," said Ray Harrison Financial Group in Citrus Heights, California.
A hesitant consumer is particularly troubling heading into the holiday shopping season, and economists say longer term, stronger consumer spending will be necessary to sustain a recovery.
Analysts say, however, that some retailers may be the beneficiaries of consumers' continuing caution, which has made many of them migrate to the lowest-priced stores.
"People will still spend," Harrison said. "They will just adjust where they spend."
Wal-Mart Stores, America's biggest retailer, has seen an influx of price-conscious shoppers and is expected to announce higher third-quarter earnings, on Thursday.
Last month, the discount retailer said it expects sales to grow this year and increase at a faster pace next year.
Other retailers, including teen retailer Abercrombic & Fitch, and department stores Macy's and JC Penney are also due to report earnings this week. Wall Street will want to know if the companies actually made money from higher sales, not because of cost cutting.
An uptick in spending will give the markets an added boost of confidence, said peter Worden, co-founder of FreeStockcharts.com.
"When the holidays are actually here, people do tend to rationalise," Worden said. "They say, 'well, Christmas only comes once a year,' and then they go spend."
Meanwhile, the market will get another reading on Friday on consumers' mind-set. The Reuters/University of Michigan consumer sentiment index is expected to rise to 72.0 in the early part of November from 70.6 in October, according to economists' estimates.
Mixed economic data in recent weeks have made it difficult for investors to get a sense of where the economy is headed.
While the market often jumps at good news, investors can't shake off fears that the economy won't be able to maintain the 3.5 per cent annual pace of growth seen in the third quarter as government stimulus programmes wind down.
"Investors are going to have to take emotion out of this market if we are going to have a recovery," Harrison said. "The underlining is still there. The economy is improving.
The financial markets are still trying to get a sense of whether consumers, while worried about unemployment, are nonetheless willing to spend, especially as the holiday seaspend, especially as the holiday season approaches. Retailers' earnings reports and outlooks for the future sould give them clues about the economic recovery. Investors will also get a first look at on consumer sentiment during November.
"For this economy to really come back, we have to depend on the consumer," said Yu-Dee Chang, principal of ACE Investment Strategists.
The greatest obstacle to increased consumer spending is unemployment. And it's not only the unemployed who aren't spending, it's also those who are afraid of losing their jobs.
Investors did find some positives in the Labour Department's largely bleak October employment report on Friday. While the government said unemployment has risen above 10 per cent for the first time since 1983, the market managed a modest advance as investors theorised that the weak labour market would mean the Federal Reserve will keep interest rates low for some time.
Still, while traders ultimately didn't panic about the jobs data, they do know that the report could bode poorly for consumer spending, the largest component of the nation's economic acctivity.
Retailers' monthly sales reports released on Thursday showed shoppers were still were not splurging as unemployment climbed and credit remained tight. And the Fed said consumers borrowed less for a record eight straight month in September.
"Consumers aren't going to spend as much if they are worried about their jobs," said Ray Harrison Financial Group in Citrus Heights, California.
A hesitant consumer is particularly troubling heading into the holiday shopping season, and economists say longer term, stronger consumer spending will be necessary to sustain a recovery.
Analysts say, however, that some retailers may be the beneficiaries of consumers' continuing caution, which has made many of them migrate to the lowest-priced stores.
"People will still spend," Harrison said. "They will just adjust where they spend."
Wal-Mart Stores, America's biggest retailer, has seen an influx of price-conscious shoppers and is expected to announce higher third-quarter earnings, on Thursday.
Last month, the discount retailer said it expects sales to grow this year and increase at a faster pace next year.
Other retailers, including teen retailer Abercrombic & Fitch, and department stores Macy's and JC Penney are also due to report earnings this week. Wall Street will want to know if the companies actually made money from higher sales, not because of cost cutting.
An uptick in spending will give the markets an added boost of confidence, said peter Worden, co-founder of FreeStockcharts.com.
"When the holidays are actually here, people do tend to rationalise," Worden said. "They say, 'well, Christmas only comes once a year,' and then they go spend."
Meanwhile, the market will get another reading on Friday on consumers' mind-set. The Reuters/University of Michigan consumer sentiment index is expected to rise to 72.0 in the early part of November from 70.6 in October, according to economists' estimates.
Mixed economic data in recent weeks have made it difficult for investors to get a sense of where the economy is headed.
While the market often jumps at good news, investors can't shake off fears that the economy won't be able to maintain the 3.5 per cent annual pace of growth seen in the third quarter as government stimulus programmes wind down.
"Investors are going to have to take emotion out of this market if we are going to have a recovery," Harrison said. "The underlining is still there. The economy is improving.
Sunday, November 8, 2009
ALL ROADS LEAD TO CHINA
China is one of the most interesting markets to look into and Thai entrepreneurs have shown a great deal of interest in learning more about it, a leading banker said at a recent seminar held in Bangkok recently.
"Everybody wants to connect to China these days as no country has been able to progress as fast and well-planned as China has," said Chartsiri Sophonpanich,the president of Bangkok Bank Plc.
China, now dubbed the world's growth engine, is growing at 8%, the rate expected for this year.
The country, which in the past decade has become the global manufacturing hub, grew by 8.9% year-on-year in the third quarter thanks to the massive spending undertaken by the government to avert a global meltdown. China has used a $585-billion stimulus plan and $1.27 trillion in bank lending this year to drive the nation's recovery, which has helped pull other regional economies out of the slump as well.
The spending spree by the Chinese has helped show a modest improvement in exports and retail sales, but public spending has contributed the most to the country's growth,at 88% of GDP in the first half.
This is one of the reasons why Chartsiri: World the global focus is growth engine shifting toward China, added Kosit Panpiemras, the executive chairman of BBL.
"China has a lot of potential and Asean members can benefit from this," Mr Kosit,a former industry minister,said during the seminar.
He said that despite the 11.9% decline in global trade,China is the best chance for entrepreneurs during the hard times.
"The data released show that domestic consumption continued to grow in China," Mr Kosit said.
China late last month announced September economic data, with exports rising 11.8% month-on-month to $115.9 billion but falling 15.2% year-on-year.
The data released by China's General Administration of Customs showed that imports increased 17% from August to $103 billion in September but were down 3.5% year-on-year.
Foreign trade in the first nine months this year reached $1.56 trillion, down 20.9% from the same period last year.The country's exports in the first three quarters reached $846.7 billion, down 21.3% from the same period last year,while imports fell 20.4% year-on-year to 711.2 billion, resulting a 26% decline in trade surplus to $135.5 billion.
Mr Kosit said that the growing importance of China globally and regionally would mean that various alliances would start to tilt in China's favour.
"The world is changing fast and China is one market that is growing despite all other markets taking a major hit," he said.
"This means that we would build our relations with China the same way we built our relations with Japan," he said,pointing to the fact that Japanese inves-tors are now the largest investor group in Thailand.
Citing the progress made by the Chinese government which was evident from the recent 60th anniversary celebration of modern China, Mr Kosit said that if China could do so much in 60 years, what it would do in the next 60 years would be interesting.
Guan Mu, the Chinese ambassador to Thailand, said that the economic growth made China one of the most attractive destinations for investment and the planned opening of the various free-trade agreements with trading blocs such as Asean would make investing in China more alluring.
The Asean-China FTA is set to be implemented on Jan 1 next year and Mr Mu says that the opportunities after that would be tremendous for trade and investment-related issues.
Future plans for Thailand and Asean as a whole is to have greater rail, air and land links with China thus providing greater access.
The value of trade between Asean
and China is set to rise to $50 billion by 2010 while investments could surge to $1.5 billion,with more than 4 million tourists visiting the two regions.Kosit: The next Mr Mu also Japan for Thailand echoed similar views of other panelists, saying that the economic prowess o f China today will sooner or later be a force to reckon with.
"Today China's economy is the world's third largest and analysts expect it to soon get to becoming the world's second largest," he said, adding that its foreign exchange reserve of $2.27 trillion is now the world's largest and continues to grow.
Mr Mu added that the past few decades has seen a sharp increase in the standard of living of the people in the country and this is partly from the increased investments from both the private and public sectors.
He said that megastructures that once took months or years to build are now popping up in every corner of the country.
For those who are looking to enter China, Mr Mu said that the basic requirement is to study the people and culture. This is a necessary step for all investors who plan to undertake investments or trade with China.
"It is not just the economic benefit that needs to be studied, you have to know the people and culture as well,"he said to an audience of more than 200 attending the seminar.
He said that the Chinese government was promoting various projects in various areas in order to uplift the standard of living of the masses which may help lower the gap between the urban and the rural people.
The other step that the government is undertaking is to shore up domestic consumption as a way to offset the reliance on the export sector.
"Everybody wants to connect to China these days as no country has been able to progress as fast and well-planned as China has," said Chartsiri Sophonpanich,the president of Bangkok Bank Plc.
China, now dubbed the world's growth engine, is growing at 8%, the rate expected for this year.
The country, which in the past decade has become the global manufacturing hub, grew by 8.9% year-on-year in the third quarter thanks to the massive spending undertaken by the government to avert a global meltdown. China has used a $585-billion stimulus plan and $1.27 trillion in bank lending this year to drive the nation's recovery, which has helped pull other regional economies out of the slump as well.
The spending spree by the Chinese has helped show a modest improvement in exports and retail sales, but public spending has contributed the most to the country's growth,at 88% of GDP in the first half.
This is one of the reasons why Chartsiri: World the global focus is growth engine shifting toward China, added Kosit Panpiemras, the executive chairman of BBL.
"China has a lot of potential and Asean members can benefit from this," Mr Kosit,a former industry minister,said during the seminar.
He said that despite the 11.9% decline in global trade,China is the best chance for entrepreneurs during the hard times.
"The data released show that domestic consumption continued to grow in China," Mr Kosit said.
China late last month announced September economic data, with exports rising 11.8% month-on-month to $115.9 billion but falling 15.2% year-on-year.
The data released by China's General Administration of Customs showed that imports increased 17% from August to $103 billion in September but were down 3.5% year-on-year.
Foreign trade in the first nine months this year reached $1.56 trillion, down 20.9% from the same period last year.The country's exports in the first three quarters reached $846.7 billion, down 21.3% from the same period last year,while imports fell 20.4% year-on-year to 711.2 billion, resulting a 26% decline in trade surplus to $135.5 billion.
Mr Kosit said that the growing importance of China globally and regionally would mean that various alliances would start to tilt in China's favour.
"The world is changing fast and China is one market that is growing despite all other markets taking a major hit," he said.
"This means that we would build our relations with China the same way we built our relations with Japan," he said,pointing to the fact that Japanese inves-tors are now the largest investor group in Thailand.
Citing the progress made by the Chinese government which was evident from the recent 60th anniversary celebration of modern China, Mr Kosit said that if China could do so much in 60 years, what it would do in the next 60 years would be interesting.
Guan Mu, the Chinese ambassador to Thailand, said that the economic growth made China one of the most attractive destinations for investment and the planned opening of the various free-trade agreements with trading blocs such as Asean would make investing in China more alluring.
The Asean-China FTA is set to be implemented on Jan 1 next year and Mr Mu says that the opportunities after that would be tremendous for trade and investment-related issues.
Future plans for Thailand and Asean as a whole is to have greater rail, air and land links with China thus providing greater access.
The value of trade between Asean
and China is set to rise to $50 billion by 2010 while investments could surge to $1.5 billion,with more than 4 million tourists visiting the two regions.Kosit: The next Mr Mu also Japan for Thailand echoed similar views of other panelists, saying that the economic prowess o f China today will sooner or later be a force to reckon with.
"Today China's economy is the world's third largest and analysts expect it to soon get to becoming the world's second largest," he said, adding that its foreign exchange reserve of $2.27 trillion is now the world's largest and continues to grow.
Mr Mu added that the past few decades has seen a sharp increase in the standard of living of the people in the country and this is partly from the increased investments from both the private and public sectors.
He said that megastructures that once took months or years to build are now popping up in every corner of the country.
For those who are looking to enter China, Mr Mu said that the basic requirement is to study the people and culture. This is a necessary step for all investors who plan to undertake investments or trade with China.
"It is not just the economic benefit that needs to be studied, you have to know the people and culture as well,"he said to an audience of more than 200 attending the seminar.
He said that the Chinese government was promoting various projects in various areas in order to uplift the standard of living of the masses which may help lower the gap between the urban and the rural people.
The other step that the government is undertaking is to shore up domestic consumption as a way to offset the reliance on the export sector.
Price rise raises concern
The International Monetary Fund said yesterday it shared the Hong Kong government's concern that the city could face sharp asset price inflation, as data showed home sale and purchase agreements nearly doubled in October.
"We share the authorities' concerns that a credit-asset price cycle could take hold, leading to a sharp run-up in prices for certain real and financial assets,"the International Monetary Fund said in an annual report on Hong Kong.
"While such asset price movements are part of the natural equilibrating mechanism of the Hong Kong economy, there is a risk that prices could become driven more by short-term liquidity conditions,divorced from fundamental forces of supply and demand."
Government data yesterday showed that sale and purchase agreements, with stamp duty paid, for residential property units in the city soared 97% from a year earlier to 9,300. But they fell 24% from September, indicating the announcement of tighter mortgage lending rules may have dampened sentiment.
The Washington-based IMF also said it had raised its GDP forecasts for Hong Kong following a recent improvement in the economy. It forecast a 2% decline in GDP this year, against a 3.5% decline previously, and 5%GDP growth in 2010,up from 3.5% previously.
Hong Kong Chief Executive Donald Tsang warned last month of the risk of a property bubble and said the government could release more land for residential property development.
"We welcome the consideration that is now being given to increasing the supply of land to the market as one of the possible means to help moderate potential property price surges," the IMF said.
Property prices have surged by 28%overall this year, and price increases for luxury property have topped 40%, as wealthy mainland Chinese have snapped up luxury apartments. Last month, a luxury flat sold for a world record HK$71,280(US$9,200) per square foot.
That prompted the central bank, the Hong Kong Monetary Authority, to raise the downpayment to buy luxury property and cap mortgage loans for mass-market property.
"We share the authorities' concerns that a credit-asset price cycle could take hold, leading to a sharp run-up in prices for certain real and financial assets,"the International Monetary Fund said in an annual report on Hong Kong.
"While such asset price movements are part of the natural equilibrating mechanism of the Hong Kong economy, there is a risk that prices could become driven more by short-term liquidity conditions,divorced from fundamental forces of supply and demand."
Government data yesterday showed that sale and purchase agreements, with stamp duty paid, for residential property units in the city soared 97% from a year earlier to 9,300. But they fell 24% from September, indicating the announcement of tighter mortgage lending rules may have dampened sentiment.
The Washington-based IMF also said it had raised its GDP forecasts for Hong Kong following a recent improvement in the economy. It forecast a 2% decline in GDP this year, against a 3.5% decline previously, and 5%GDP growth in 2010,up from 3.5% previously.
Hong Kong Chief Executive Donald Tsang warned last month of the risk of a property bubble and said the government could release more land for residential property development.
"We welcome the consideration that is now being given to increasing the supply of land to the market as one of the possible means to help moderate potential property price surges," the IMF said.
Property prices have surged by 28%overall this year, and price increases for luxury property have topped 40%, as wealthy mainland Chinese have snapped up luxury apartments. Last month, a luxury flat sold for a world record HK$71,280(US$9,200) per square foot.
That prompted the central bank, the Hong Kong Monetary Authority, to raise the downpayment to buy luxury property and cap mortgage loans for mass-market property.
US FIRMS SPENDING MORE ON EQUIPMENT, SOFTWARE
US businesses are finally willing to spend more money on equipment, a healthy sign for the economic recovery.
For the first time in nearly two years, companies put up more money for a category called "equipment and software" in the third quarter.
It is not a huge growth rate - just 1.1 per cent, according to the government's report last week on US economic growth. Still, equipment and software are a broad and important category of items made by such companies as Deere, EMC and General Electric. It includes computers, software, medical equipment, industrial engines, autos, planes, furniture and farm machinery.
Business spending is especially crucial now because consumers, who normally drive a recovery, are not doing so this time. Many shoppers are too squeezed by job losses, flat wages, tight credit and high debt.
The higher spending does not necessarily mean companies are swimming in cash. Some businesses managed to save enough during the recession to spend more now, analysts said. Others cannot get loans to expand their plants and instead must upgrade the equipment they have, analysts said.
When businesses spend more on equipment, jobs can eventually be created at companies that make the machines and the parts that go into them.
Some makers of technology-related equipment see better business conditions. At EMC, which sells data storage machines and software, CEO Joe Tucci said he was starting to see customers become more comfortable with ramping up spending on information technology.
EMC said it expected a "slow but steady recovery". For now, though, most businesses are reluctant to hire. To meet any pick-up in demand, they are relying instead on workers they already have.
The economy is not likely to create many jobs until a broad-based recovery has taken hold.
Edward Yardeni, president and chief investment strategist at Yardeni Research, predicts businesses will boost their spending on capital equipment at around a 10-per-cent annualised rate in the current quarter. And he thinks it will continue rising after that as businesses' revenue and profits improve.
For now, companies will probably focus spending on computers, software and other technology that can boost the productivity of their existing workers, he said.
The need to frequently upgrade their technology gives many businesses another reason to spend, Yardeni added.
The government's report last week on gross domestic product - the value of all goods and services produced in the United States - showed the economy grew again in the third quarter for the first time in more than a year. It was the most convincing sign yet that a recovery has begun and that the worst and longest recession since the 1930s is over.
Herb Goetschius, president of McNichols, a Florida maker of metal gratings and other products, said his revenue was starting to rise after customer demand "fell of a cliff" late last year and earlier this year.
Some companies he sells to are spending more to replace outdated equipment and also to maintain and repair existing plants and machines. All that is boosting his revenue.
"To maximise storage at existing plants, companies are building mezzanines instead of wasting the square footage," Goetschius said. "We see our products used for that."
Business spending is especially crucial now because consumers, who normally drive a recovery, are not doing so this time.
For the first time in nearly two years, companies put up more money for a category called "equipment and software" in the third quarter.
It is not a huge growth rate - just 1.1 per cent, according to the government's report last week on US economic growth. Still, equipment and software are a broad and important category of items made by such companies as Deere, EMC and General Electric. It includes computers, software, medical equipment, industrial engines, autos, planes, furniture and farm machinery.
Business spending is especially crucial now because consumers, who normally drive a recovery, are not doing so this time. Many shoppers are too squeezed by job losses, flat wages, tight credit and high debt.
The higher spending does not necessarily mean companies are swimming in cash. Some businesses managed to save enough during the recession to spend more now, analysts said. Others cannot get loans to expand their plants and instead must upgrade the equipment they have, analysts said.
When businesses spend more on equipment, jobs can eventually be created at companies that make the machines and the parts that go into them.
Some makers of technology-related equipment see better business conditions. At EMC, which sells data storage machines and software, CEO Joe Tucci said he was starting to see customers become more comfortable with ramping up spending on information technology.
EMC said it expected a "slow but steady recovery". For now, though, most businesses are reluctant to hire. To meet any pick-up in demand, they are relying instead on workers they already have.
The economy is not likely to create many jobs until a broad-based recovery has taken hold.
Edward Yardeni, president and chief investment strategist at Yardeni Research, predicts businesses will boost their spending on capital equipment at around a 10-per-cent annualised rate in the current quarter. And he thinks it will continue rising after that as businesses' revenue and profits improve.
For now, companies will probably focus spending on computers, software and other technology that can boost the productivity of their existing workers, he said.
The need to frequently upgrade their technology gives many businesses another reason to spend, Yardeni added.
The government's report last week on gross domestic product - the value of all goods and services produced in the United States - showed the economy grew again in the third quarter for the first time in more than a year. It was the most convincing sign yet that a recovery has begun and that the worst and longest recession since the 1930s is over.
Herb Goetschius, president of McNichols, a Florida maker of metal gratings and other products, said his revenue was starting to rise after customer demand "fell of a cliff" late last year and earlier this year.
Some companies he sells to are spending more to replace outdated equipment and also to maintain and repair existing plants and machines. All that is boosting his revenue.
"To maximise storage at existing plants, companies are building mezzanines instead of wasting the square footage," Goetschius said. "We see our products used for that."
Business spending is especially crucial now because consumers, who normally drive a recovery, are not doing so this time.
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