The fifth interest rate hike in different newspapers report

PART A: The core event

The People's Bank of China announced its fifth interest rate rise this year of 27 basis points, defying some expectations of a 54bp rise on 14th, Sep. The event in different newspaper report is listed as follows.

PART B: The news report of different print on covering the event

© 新华网http://www.xinhuanet.com/

年内第五次加息以稳定通货膨胀预期

中国人民银行14日宣布，决定自9月15日起，上调金融机构人民币存贷款基准利率。这将是央行今年以来第五次加息。

根据决定，自2007年9月15日起，金融机构一年期存款基准利率上调0．27个百分点，由现行的3．60％提高到3．87％；一年期贷款基准利率上调0．27个百分点，由现行的7．02％提高到7．29％；其他各档次存贷款基准利率也相应调整。个人住房公积金贷款利率相应上调0．18个百分点。

中国央行表示，此次加息旨在加强货币信贷调控，引导投资合理增长，稳定通货膨胀预期。

中国国家统计局日前发布数据显示，中国8月份ＣＰＩ延续前6个月不断攀升趋势，同比上涨幅度高达

（From：http://news3.xinhuanet.com/newscenter/2007-09/15/content_6724692.htm���

2007年09月14日 17:54:54

It just pointed out that exact increasing rate and other four times of interest rate hike this year. But a detailed reason and consequence explanation article named <six questions to rate hike> was published on 22th.Aug when the fourth interest rate hike happened.

© Xinhua News Agency http://news.xinhuanet.com

“BEIJING, Sept. 17 (Xinhua) -- Chinese share prices hit new high on Monday despite the fifth interest rate hike this year announced last Friday”

“China has raised its benchmark interest rate five times this year and the major stock index used to open lower and close higher on the trading day following each hike announcement. “

“On Friday, the central bank announced rises in the one-year deposit and loan interest rates by 27 basis points to 3.87 percent and 7.29 percent respectively from Sep. 15.”

“The policy was taken in a bid to curb rising inflation and tighten control over excessive liquidity when the consumer price index in August rose 6.5 percent.”

(From: http://news.xinhuanet.com/english/2007-09/17/content_6741091.htm)

2007-09-17 17:45:089

Xinhua News Agency reported with the headline titled <Chinese share prices hit new high despite interest rate hike> at 6 o’clock on 17th Sep, Which has length of 348 words.

Xinhua analyze the reason of the fifth interest rate hike accordingly. Concerning the consequence of increasing interest rate, the impact on stock market is more deeply concentrated analyzed in this article.

© 21世纪经济报道：

央行连续三个月加息　发改委严控产能过剩

“9月14日下午接近下班时间，央行宣布了今年的第五次加息——自9月15日起上调金融机构人民币存贷款基准利率，一年期存贷款利率均上调0.27个百分点。

世界银行9月12日发布《中国经济季报》认为，2007年上半年，中国GDP的增长速度十年来首次高于潜在的GDP的增长率。

　　这意味着中国经济开足马力，总需求和总供给已经接近极限。世界银行中国代表处的高级经济学家高路易指出，如果经济增速持续上升到13％，将是明显的经济过热。”

（From：http://www.21cbh.com/shownews.asp?newsid=17136���

2007年9月15日

<21st Century Business Herald> stressed that the reason of raising interest rate is “the increasing speed of GDP is higher than potential increasing rate in China”, and pointed out“ It means total demand and total supply is nearly get to utmost in China”.

© 中国证券报：

五度加息累加效应需重点关注

“央行昨天(14日)宣布，决定自9月15日起，上调金融机构人民币存贷款基准利率，这将是央行今年以来第五次加息。央行表示，此举旨在加强货币信贷调控，引导投资合理增长，稳定通货膨胀预期。分析人士认为，年内央行仍有再次加息的可能性，经过连续加息，市场已经到了需要重点关注加息累加效应的时候了。”

(From:www.cs.com.cn/xwzx/02/200709/t20070916_1194584.htm - 24k)

2007年9月15

It pointed out the reason of increasing interest rate, and alarmed that it was time that we should pay special attention to the accumulated effect of interest rate hike polices.

© 信报经济新闻：

人行五度加息，H股短期受压

“一如市场所料，中国人民银行昨天公布再上调人民币存贷款利率二十七点子，这是央行继上周刚刚宣布上调存款准备金率后，短期内再次出台的紧缩性调控措施，也是中国今年内第五次上调利率。中国经济分析师认为，年内会否进一步上调利率，将取决于通胀会否继续上升，并相信加息短期对Ｈ股有轻微负面影响。 距上次加息仅24天人民银行昨天傍晚公布，决定上调金融机构人民币存贷款基准利率，以加强货币信贷调控，引导投资合理增长，稳定通货膨胀预期。”

（From:2007年9月14日第2页 要闻社评）

In this article, it analyzed the influence of fifth interest rate hike on stock market, and pointed out the relation between the trend of increasing interest rate and the status of inflation.

© 中央日报 (网络版)

中國大陸經濟內外緊縮期降臨

“不出市場預期，9月14日，又一個週五的傍晚，中國人民銀行宣佈了年內的第五次加息。”

“中國大陸經濟正在發生的運行軌跡——持續高增長的外貿盈餘繼續加大了流動性過剩，儘管央行不斷收縮控制流動性，但難以回避免的是，大量流動性正在從虛擬經濟蔓延到實體經濟，推高資產泡沫和通貨膨脹。…… ”

“高盛亞洲區首席經濟學家梁紅預測，通脹壓力已向非食品領域蔓延，預計今年底以前，央行將採取果斷的緊縮措施，包括再次加息，來對通脹壓力作出反應……”

(From:http://www.cdnews.com.tw/cdnews_site/docDetail.jsp?coluid=113&docid=100165079/)

2007-09-18 16:10:47

It pointed out the reason of raising interest rate in the news on 18th, Sep. They also quoted economist anticipated that China would raise interest rate further before the end of the year.

© Financial times：

China climbs in spite or interest rate rise

“Chinese stocks defied weakness across global equity markets yesterday, hitting a record in spite of an interest rate increase announced after Friday's close.”

“The Shanghai Composite index rose 2.1 per cent to 5,421.23.”

“On Friday, the People's Bank of China announced its fifth interest rate rise this year of 27 basis points, defying some expectations of a 54bp rise. Inflation is growing at its fastest since March 1996.”

By Neil Dennis and Rachel Morarjee Tuesday, September 18, 2007

<Financial times> published a report titled <China climbs in spite or interest rate> rise on September 18, 2007.It pointed out the Chinese stocks “hitting a record in spite of an interest rate increase announced after Friday's close.” At the same time he considered that the Chinese Inflation “growing at its fastest since March 1996.”

© Wall Street Journal (Chinese website edition)

“中国周五宣布上调基准利率，进一步加大力度抑制通货膨胀。但分析师预计，尽管这已是央行今年第五次上调利率，但年内还可能进一步加息”

“促使中国加息的原因是中国经济的高速增长。中国第二季度经济增长11.9%，且并没有显示出增速放缓的迹象本周公布的数据显示，货币供应量和投资支出增幅依然强劲。虽然全球金融市场因美国住房市场放缓以及信贷紧缩忧虑而显得动荡不安，但中国经济仍继续飞速增长，中国股市也在大幅攀升……”

“……中国央行(People's Bank of China)宣布，从周六开始，将基准存贷款利率分别上调27个基点, 理由是需要加强货币信贷调控，引导投资合理增长，并稳定通货膨胀预期。经济学家表示，加息决定在预期之中，央行还可能在今年进一步加息……”

(From:http://www.chinese.wsj.com/gb/sysasp/logon.asp?urlvar='20070914/bch202246.asp?page=')

September 14, 2007

Wu xiaoling pointed out that the reason of increasing interest rate is fast increasing speed of China on 14th Sep .When she talked about trend of the fifth interest rate hike, She also quoted that economist anticipated China would raise interest rate further before the end of the year. In her article, she also explained the reasons, the consequence on stock market of increasing interest rate, and fresh adopted/proposed policies accordingly.

PART C: some comparative analysis and thoughts

© comparative analysis：

A. The same standpoint

(1)Most media give the similar reason analysis of raising the interest rate.

(2)Most media quote that economists anticipate China will raise interest rate further before the end of the year.

B. The different standpoint

(1)The foreign media emphasize the influence on their countries and global economy.

(2)The Chinese media are separated to two groups: The one is official media such as People’s Daily and XinHua News Agency, which stand for the Chinese government; the other group is professional economic media such as <21st Century Business Herald >and <China Securities Journal>. The former group more focus on why the center bank raises the interest rate and what the positive influence of this policy is, the latter one focus on the chain reaction of the different industry and influence on stock market in their professional perspective.

(3)The media from Tai Wan do not completely agree with the current status of inflation claimed by mainland government

© Some thoughts:

(1) Different kinds of media focus on different report angle,and the same media has the different angle in chinese and english report.

(2)Foreign media more attention to influence on their countries.

(3)Official media tend to play the role of explaining the policy and minimizing its negative influence.

(4)Professional economic media stand on neutral views on the influences and changes on economic and financial market in professional perspective.

（5)It is the fifth interest rate hike in 2007. It seems that print media haven't pay as much attention to the latest one as to the former ones.