Downward trend in the economy in 2009 has established its coatings industry do.

<p> the downward trend of China's economic cycle has been established - excess manufacturing capacity, the real estate market downturn, weak consumer demand. . ≪/P > <P> <P> <p> September 2008 December 15th marked the Lehman Brothers bankruptcy, the U.S. subprime mortgage crisis on the global economic and financial impact of the rapid expansion of financial institutions in Europe suffered heavy losses in developed countries, a global credit crunch .triggered, which has accelerated the decline of the real economy. .Emerging market economies, although the financial institutions by the U.S. subprime impact limited direct impact, but because they are the engine of economic growth depends on exports to developed countries, it developed rapidly shrinking the current needs of emerging economies, growth in emerging markets will generate .huge negative impact. .</ P> <p> of China, from the 3rd quarter of 2008, rapid economic growth began to appear signs of decline, the central government quickly adjust macroeconomic policy, development of a massive investment program to stimulate domestic demand to prevent excessive decline in the economy, but .in the global economy in recession against the backdrop of the Chinese economy is difficult to immune to economic growth in 2009 is expected to be there was a substantial drop. .Commercial banks will also face non-performing assets rebound in the huge decline in business performance and operating pressure. .</ P> <p align="center"> </ p> <p> one downward trend in the economic cycle has been established </ p> <p> (a) of China's economic restructuring and cyclical adjustment led to slower growth overlay .</ p> <p> 2008 China's economic growth in the first half well, the first 3 quarters of China's economic situation is generally acceptable. .But in October, China began to accelerate some of the major indicators of economic activity declined, indicating that pessimistic about future growth prospects. .Generation of economic activity is considered to measure the leading indicators of the level of activity. .State Electricity Regulatory Commission released data show that in 2008 China 1-9 months total electricity consumption increased by 9.67%, down year over year growth rate of 5.45%, of which 4.8% of electricity consumption in September, the first time the phenomenon of lower GDP growth ., Oct. generating capacity of 264.5 billion kwh nationwide, down 4.0%, it will be from May 1998 the first negative growth since. .Accordingly, in October added value of industrial enterprises above designated size increased by 8.2%, an increase over September down 3.2 percentage points over the same period last year dropped 9.7 percentage points, hit 7 year low. .October PMI index also dropped 6.6 percentage points to 44.6%, a substantial new export orders index fell by 7.4 percentage points to 41.7%, were prepared from each index lowest since 2005. .In addition, the October revenue negative growth of 0.3% appeared for the first time since 1996. .</ P> <p> In 2009, the three major driving forces driving China's economic growth showed weak trend: </ p> <p> 1, the global economic downturn, weaker external demand, net exports to GDP will be significantly driven down the role. .</ P> <p> With the improvement in the level of opening up, the net export contribution to the growth rate of GDP in 2001 to -0.1% to 21.5% in 2007, China's Foreign dependent enhancement of economic growth, economic cycles and .developed countries began to show convergence of the economic cycle. .The recent recession in developed economies, on China's exports have a greater negative impact of net exports to GDP will be significantly driven down the role. .</ P> <p> 2, excess manufacturing capacity have become increasingly prominent, the real estate market downturn, the fixed asset investment growth will decline. .</ P> <p> Since 2003, China's economy has entered a strong up-cycle, fixed assets investment reached 28.8% compound annual growth rate, RMB loans of financial institutions reached 13.3% compound annual growth rate. .This round of economic growth in China accelerated industrialization and urbanization process, the background, the most prominent manufacturing and real estate investment grew faster than other industries. .The end of 2007, investment in manufacturing and real estate industry accounted for 54.5% of investment in fixed assets, compared with the end of 2002 increased by 10.4 percentage points. .</ P> <p> investment growth in these two major changes in the industry on the whole the impact of a significant investment in fixed assets. .</ P> <p> present, internal and external demand will decline in excess manufacturing capacity is even more prominent, which led to the company's future investment will decline in capital formation, the stimulating effect on GDP will be decreased; the current real estate market downturn that the future of real estate .investment growth is not optimistic. .Overall, the role of investment in driving GDP will decline. .</ P> <p> 3, wealth, rising unemployment, weak consumer demand. .</ P> <p> 2008 years, an increase of total retail sales hit record highs, but adjusted for inflation, consumption growth is relatively stable. .Since 2003, the distribution of wages in national income growth rate is lower than corporate profits and government tax revenue, so the next few years from the point of view can not support the consumption of excessive growth. .Meanwhile, some companies fall led to hidden unemployment benefits increased, decreased wages, plus pre-invest in stocks and real estate market has shrunk, so that weak consumption growth in the next two years. .</ P> <p> judged according to the above, we believe that this round of the 2007 economic growth of China's peak in 2009, China's economic growth may drop to about 8%. .</ P>.