1. Valance Co., Inc. Weekly Economic Report: China August 22, 2012
This document is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy the products mentioned in it. No representation is made that any returns will be achieved. Past performance is not necessarily indicative of future
results; any information derived herein is not intended to predict future results. This information has been obtained from various sources, including where applicable, entered by the user; we do not represent it as complete or accurate. Users of these calculators are hereby advised
that Valance Co., Inc. takes no responsibility for improper, inaccurate or other erroneous assumptions to the extent such data is entered by the user hereof. Opinions expressed herein are subject to change without notice. The securities mentioned in this document may not be
eligible for sale in some states or countries, nor suitable for all types of investors
CH 1
Valance Co., Inc.
Weekly Economic Report: China
Evelyn L. Richards August 22, 2012
(340) 692-7710
erichards@valance.us
Foreign direct investment in China fell to the lowest level in two years in July
Weekly Highlights
Actual FDI – fell 8.7% Y/Y in July. (CH 1)
Weekly Releases & News
Chart(s) of the Week: Actual FDI
Foreign Direct Investment fell 8.7% Y/Y in July (totaling US$7.58 bln) – the eighth drop in nine
months and the smallest inflow since July 2010 - following a loss of 6.9% Y/Y in June. FDI for
January-July period totaled US$66.7 bln.

2. Valance Co., Inc. Weekly Economic Report: China August 22, 2012
This document is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy the products mentioned in it. No representation is made that any returns will be achieved. Past performance is not necessarily indicative of future
results; any information derived herein is not intended to predict future results. This information has been obtained from various sources, including where applicable, entered by the user; we do not represent it as complete or accurate. Users of these calculators are hereby advised
that Valance Co., Inc. takes no responsibility for improper, inaccurate or other erroneous assumptions to the extent such data is entered by the user hereof. Opinions expressed herein are subject to change without notice. The securities mentioned in this document may not be
eligible for sale in some states or countries, nor suitable for all types of investors
CH 2
News & Upcoming Dates
News
August 20th
(Bloomberg) - China’s Potential Growth May Slow Later in Decade - Cai Fang, Head
of the Institute of Population and Labor Economics at the government’s Chinese Academy of Social
Sciences stated:
As experience in Japan can tell, there will be dramatic changes in economic growth. [The peak in
China’s labor force is an] important turning point.
It’s wrong to think that we can lift up the potential-growth rate by stimulating growth.
August 15th
(Reuters - China growth target at risk unless support stepped up - Zheng Xinli, Vice
Chairman of China Centre for International Economic Exchanges (CCIEE) remarked:
Until now there have been no signs of a rebound in the economy. The GDP and factory output
growth may slide further in the third quarter.
If China's economy does not bottom out in the third quarter, it would be hopeless to make it happen
in the fourth quarter and we might miss the annual growth target of 7.5 percent.
If China's economy does not show signs of recovery in the third quarter, there will be employment
problems, further deterioration of company profits and debt problems.
Under such a difficult situation, China needs to keep a certain scale of investment to realise
economic restructuring and lift the economy.
After summing up the lessons of last year's crash, we should maintain comparatively big investment
on high-speed lines.
Key Dates This Week
Date Indicator Month Expectation Previous
08/17 China July Property Prices
08/22 Conference Board China July Leading Economic Index
08/22 HSBC Flash Manufacturing PMI AUG -- 49.3
08/23 MNI August Flash Business Sentiment Survey
08/26 Industrial Profits YTD Y/Y JUL -- -2.2%
08/26-31 Leading Index JUL -- 99.28