China

  • 2019-08-14 06:31


    BEIJING (MNI) - China faces increased economic downward pressure, as all July macroeconomic indicators came in below market expectations, coming down from the one-off strong performance in June.

    Liu Aihua, the spokeswoman of the National Bureau of Statistics, insisted at a Wednesday briefing monthly fluctuations are common, and the countercyclical policies taken are having an effect.

    -CAR SALES SLUMPED

    Retail sales grew by 7.6% y/y, falling sharply from June's 16-month high of 9.8%, and missed the 8.5% forecast polled by MNI. This is the lowest level in three months since April's 16-year low of 7.2%.

    The deceleration was mainly caused by the contraction of car sales, which reversed June's 17.2% y/y gain and fell 2.6% in July.

  • 2019-08-09 07:03


    LONDON (MNI) - The Yuan has been the go-to barometer for global sentiment this week, unsurprisingly after the U.S.

  • 2019-08-05 09:02


    BEIJING (MNI) - China's central bank Governor Yi Gang said the country won't use exchange rates as a tool to deal with trade conflicts, engage in competitive devaluation, or use forex for competitive purposes, and maintain letting the market decide exchange rates.

    Yi made a rare statement on Monday through the People's Bank of China (PBOC)'s WeChat account, following the yuan weakening below seven against the dollar, a critical level that many saw the PBOC had vigorously defended before. It also followed U.S. President Donald Trump last Friday unexpectedly announcing a 10% tariff hike on $300 billion Chinese exports starting Sept 1.

    The yuan closed at 7.0352 against the dollar from Friday's close of 6.9416, the weakest since March 2008.

  • 2019-08-04 21:14


    BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index (PMI) rose to 49.9 in July from June's 49.4, but remained in the contractionary zone below the breakeven 50 for the second consecutive month.

    The marginal improvement has been driven by the recovery in production, according to Caixin.

    New orders, which indicate future activity levels, saw a slight expansion, helped by improved domestic demand, Caixin said in a statement.

    New export orders have not improved, as some manufacturers surveyed said the ongoing trade disputes between China and the U.S. continues to put pressure on export sales.

    The weak orders have led manufacturers to cut labour force engagement for four consecutive months.

  • 2019-07-31 23:27


    BEIJING (MNI) - The Caixin China Manufacturing Purchasing Managers Index (PMI) rose to 49.9 in July from June's 49.4, in contractionary territory below the breakeven 50 for a second consecutive month.

    The improvement was mainly driven up by a pick-up in production, according to Caixin.

    New orders, which indicate future activity levels, saw a slight expansion, helped by improved domestic demand, Caixin said.

    New export orders did not improve, as some manufacturers surveyed said the ongoing trade disputes between China and the U.S. continues to put pressure on export sales.

    According to Caixin, weak orders led manufacturers to cut their workforce for four consecutive months.

  • 2019-07-15 04:59


    BEIJING (MNI) - China's economy decelerated to 6.2% y/y in the second quarter from 6.4% in Q1, lower than 6.3% projected by an MNI survey. It was the slowest since at least 1992 according to available official record. All other indicators however performed better than expected, giving policymakers confidence of achieving targets without excessive stimulus.

    With the first half of the year registering the GDP having expanded 6.3% y/y, only a growth below 5.8% in H2 would prevent China attaining the official annual target of 6-6.5%, said ANZ in a report.

  • 2019-06-30 22:17


    BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index (PMI) declined to 49.4 from 50.2 in May, falling into the contractionary zone below 50 for the first time in four months. The decline is indicative of only a marginal deterioration in the sector comprising small and medium sized manufacturers, according to Caixin.

    New orders, which indicate future activity levels, slid below the breakeven 50, Caixin said in a statement. New export orders also fell back into contractionary territory after the recovery in May, but were still better than the levels seen from last April to last December, Caixin said.

  • 2019-06-26 06:54


    BEIJING (MNI) - Chances are rising that China will need to cut the benchmark lending rate in the second half of the year as economic headwinds pick up and the U.S. Federal Reserve moves to ease its policy, the Bank of China's research team said Wednesday in its quarterly outlook.

    Current benchmark lending rate levels have hindered reducing actual lending rates, leaving open the possibility for policy action from the People's Bank of China, particularly as the U.S.

  • 2019-06-14 07:14


    BEIJING (MNI) - China's macroeconomic indicators continue to show weakness in the May data prints, with both industrial output and fixed-asset investment (FAI) slipping below expectations, although retail sales picked up on strong May holiday demand.

    As downside risks grow, ANZ expects the People's Bank of China (PBOC) to send more supportive signals in the not too distant future. Besides a further 100 bps cut in the reserve requirement ratio over the rest of the year, ANZ also expects the central bank to lower the 7-day reverse repo rate by 5 bps in Q3 following a U.S.

  • 2019-06-02 22:23


    BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index (PMI) recorded 50.2 in May, unchanged from April and in the expansion zone above 50 for the third consecutive month.

    New orders, which indicate future activity levels, accelerated rapidly with the growth rate slightly faster than in April, Caixin said in a statement. New export orders rebounded significantly to a high level.

    Many manufacturers surveyed said that recovering external demand and new product launches had driven the growth in new orders.

    The manufacturing industry's confidence fell to the lowest level since April 2012 when the index was first compiled, as manufacturers worry about the escalation of the China-U.S.