Jing Ulrich

China's inflation rate eased slightly in August, giving central leaders breathing room in the face of a worsening global economy. The National Bureau of Statistics said Friday that the country's consumer price index rose 6.2% last month from the previous August. That was down from 6.5% in July, which was a 37-month high. Though inflation remains well above the government's 4% annual target, analysts said the problem may have peaked, reducing the need for the government to employ tightening measures that could slow its economy.

BEIJING - China may be the world's second-largest economy, but its financial system still answers to strict state controls that critics say hold back the country's development. The free market plays little role in determining howChina'scurrency is valued, how banks set interest rates or how much capital is allowed to flow in and out of the country. But in the last two weeks, a series of moves has raised hopes that financial freedoms could be expanding in the so-called bird cage economy.

China's economy grew at its slowest pace in 21/2 years in the final three months of 2011, weighed down by shrinking exports, tighter bank lending and a cooling real estate market. The country's gross domestic product expanded at an annual rate of 8.9% in the fourth quarter of 2011, compared with 9.8% in the year-earlier period, China's National Bureau of Statistics said Tuesday. For the year, the world's second-largest economy expanded 9.2%, down from 10.4% in 2010. Although still strong compared with that of other major economies, China's economic growth is slowing uncomfortably fast for the country's leadership.

China may be the world's second-largest economy, but its financial system still answers to strict state controls that critics say hold back the country's development. The free market plays little role in determining how China's currency is valued, how banks set  interest rates or how much capital is allowed to flow in and out of the country. But in the last two weeks, a series of moves has raised hopes that financial freedoms could be expanding in the so-called birdcage economy.

BEIJING - China may be the world's second-largest economy, but its financial system still answers to strict state controls that critics say hold back the country's development. The free market plays little role in determining howChina'scurrency is valued, how banks set interest rates or how much capital is allowed to flow in and out of the country. But in the last two weeks, a series of moves has raised hopes that financial freedoms could be expanding in the so-called bird cage economy.

China may be the world's second-largest economy, but its financial system still answers to strict state controls that critics say hold back the country's development. The free market plays little role in determining how China's currency is valued, how banks set  interest rates or how much capital is allowed to flow in and out of the country. But in the last two weeks, a series of moves has raised hopes that financial freedoms could be expanding in the so-called birdcage economy.

China said today that it would let citizens invest directly in the Hong Kong stock market, a move that will broaden options for savings-rich Chinese and help Beijing offset massive capital inflows from its trade surplus and foreign investments. The news added more fuel to Hong Kong and Shanghai stock markets, extending a rally triggered by the Federal Reserve's cut Friday in a key lending rate. China has long restricted capital outflows, but with foreign reserves of more than $1.

China's economy grew 8.9% in the third quarter compared with a year earlier as massive government spending continued to lead the nation out of the global economic crisis. The figure, announced Thursday, keeps the nation on pace to meet the government's annual target of 8% growth in gross domestic product. Beijing has used a $585-billion stimulus plan and $1.27 trillion in bank lending this year to drive the nation's recovery. China has seen modest improvements in exports and retail sales, but investment continues to constitute the overwhelming bulk of the country's growth.

Massive stimulus spending and record bank lending lifted China's economic growth rate in the second quarter to 7.9%, a sign that the Chinese economy is defying the recessionary forces that are weighing down most other countries. The surprisingly robust numbers released Thursday by China's National Bureau of Statistics are an improvement from the 6.1% growth in gross domestic product in the first three months this year.

With the Shanghai composite index down almost 70% since last October and no end in sight, China's government said Thursday that it would scrap a stock-buying tax and plow money into the nation's three largest banks in an effort to halt the decline. Chinese authorities also said they would encourage state-owned companies to make stock purchases.

China's economy grew at its slowest pace in 21/2 years in the final three months of 2011, weighed down by shrinking exports, tighter bank lending and a cooling real estate market. The country's gross domestic product expanded at an annual rate of 8.9% in the fourth quarter of 2011, compared with 9.8% in the year-earlier period, China's National Bureau of Statistics said Tuesday. For the year, the world's second-largest economy expanded 9.2%, down from 10.4% in 2010. Although still strong compared with that of other major economies, China's economic growth is slowing uncomfortably fast for the country's leadership.

China's inflation rate eased slightly in August, giving central leaders breathing room in the face of a worsening global economy. The National Bureau of Statistics said Friday that the country's consumer price index rose 6.2% last month from the previous August. That was down from 6.5% in July, which was a 37-month high. Though inflation remains well above the government's 4% annual target, analysts said the problem may have peaked, reducing the need for the government to employ tightening measures that could slow its economy.

In an abrupt change of course, China's central bank said Monday that it would cut a key interest rate in an effort to stimulate growth and shore up confidence in an economy that is slowing amid the global financial market turbulence. The move by the People's Bank of China to cut its benchmark one-year bank lending rate by 0.27 percentage point to 7.2% was its first rate cut in six years. The bank also reduced required reserves for most banks by 1 percentage point to 16.5%. Over the last year in particular, the central bank had been preoccupied with curbing inflation and had aggressively tightened credit by repeatedly hiking interest rates as well as required bank reserves.