China: Gold May 2023

chiny24.com 2 years ago

Gold mayo

After a three-year break, the celebration of May 1st, a long weekend on 29.04. – 03.05.2023 became a period of long-awaited harvest for the tourism, hotel and catering industries. Over 5 days, 274 million people have benefited from various forms of tourism services, an increase of 70.83% y/y and as much as 119.09% compared to the pre-pandemic year 2019.

According to data collected by the Ministry of Culture and Tourism (文化与旅游部) the gross of the tourism sector during this period amounted to RMB 148.56 billion (about PLN 89.280 billion), which means an increase of 128.90% y/y and 100.66% compared to 2019.

Most tourists visited provinces:

HeNan (河南),
GuangDong (广东) and
SiChuan (四川).

The top income from the tourist during this period was achieved by the provinces of Zhejiang (浙江), JiangSu (江苏) and HeNan (河南).

The average tourist in May spent the most in:

Beijing (北京) – 1 450RMB (approx. PLN 871.42),
HaiNan (海南) – 1 321RMB (approx. PLN 793,90)
ZheJiang (浙江) – 1 250RMB (approx. PLN 751,23).

These expenditures, although larger than last year, are little than those incurred in 2019.

Source:

https://www.shobserver.com

Instead of inflation, deflation

In summary of the first 4th of this year, it was assumed that China would send pro-inflationary impulses affecting economies around the world. Meanwhile, the April readings of CPI inflation indices (consumer prices) and PPI (producer prices) have made many experts uncomfortable. And that's because, contrary to predictions, inflation is inactive falling heavily. China's economy, unlike most planet economies, inflation is experiencing deflation.

According to the State Statistical Office data (国家统计局)

In April, CPI (Consumer Price Index) only increased by 0.1% y/y and at the same time decreased by 0.1% in m/m. The average inflation in the first 4 months is 1% compared to the same period of 2022.

A lot of reasons for concern are given by the PPI (Producter Price Index). In April, it again dropped by 3.6% in the r/r ratio and by 0.5% in the m/m ratio.

According to the State Statistical Office data (国家统计局)

The PPI index has been in a negative region for 7 months. The decrease in maker prices is mainly due to weak home and abroad demand. The average for the period from January to the end of April this year for PPI is simply a decrease of 2.1% compared to the same period last year.

Source:

http://www.stats.gov.cn

Foreign trade is holding tight...

Meanwhile, in the period of January-April this year, the volume of trade in abroad trade in China is inactive increasing, although the dynamics of this growth is decreasing.

And so the abroad trade in yuan increased by 5.8% during this period, with

exports increased by 10.6%,
and import decreased by 0.02%.

The affirmative balance of abroad trade increased by 56.7% y/y.

On the US dollar basis, Chinese abroad trade increased by 10.1% y/y over this period, with

exports increased by 12.5% y/y
imports increased by 7.1% y/y.

In this figure, the affirmative trade balance of USD 212.9 billion (approximately PLN 886.82 billion) increased by 42.3% y/y.

The difference in RMB and USD results mainly from exchange rate differences.

The first 3 leading abroad partners of China do not change. That's in order:

countries of Southeast Asia (ASEAN),
The European Union and
United States.

In the first 4 months of this year, Chinese exports to ASEAN increased by 8.7% y/y and imports decreased by 5.3% y/y.

Exports to the EU increased by 13.8% y/y and imports decreased by 8.3% y/y.

Exports to the USA increased by 12.6%, imports decreased by 1.7% and full turnover increased by 8.7% y/y.

In trade with abroad, the participation of private companies was 48.5% during the period of January-April. The share of abroad companies in turn amounted to 35.1%. The 3rd place included Chinese state-owned companies with 16.4% participation.

The exports of mechanical, electrical, highly processed products proceed to increase and accounted for 57.9% of its full during this period.

One of the main export goods China becomes cars. Their exports increased by 120.3% y/y.

As usual, natural materials dominate import. During this period, imports of crude oil, iron ore, coal, natural gas increased. Imports of copper, steel products, soya beans fell.

Source:

https://wallstreetcn.com

http://www.gov.cn

Optimism in the automotive market

In April this year, 1.63 million local cars were sold in China, which means an increase of 55.5% y/y (2.5% m/m). In this number, 527,000 are electrical and hybrid cars. There was an increase of 85.6% y/y, but a decrease of 3.6% m/m. Since the beginning of this year, 1,843 million specified cars have been sold in the PRC, 36% more than in the same period of the erstwhile year.