News in review

Monday____May 8

Forex reserves are above $3 trillion

China's forex reserves stood above $3 trillion for the third consecutive month in April, thanks to stabilizing expectations for the yuan's exchange rate, according to the nation's top currency regulator.

Foreign exchange reserves were near $3.03 trillion in March, up from about $3.01 trillion in the previous month, according to data from the People's Bank of China.

The data continued to increase for three straight months after it dropped below the $3 trillion benchmark in January, the first time since February 2011.

It comes after a string of data in the first quarter showed that the economy has been on track to stabilize, including improved year-on-year data of profits of major industrial companies and fixed-asset investment.

More balanced and steady cross-border capital flows in China and appreciation of many other currencies pegged to dollars in the international market helped push up the forex reserves in April, an online statement from the State Administration of Foreign Exchange said.

China's trade surplus widens in April

China's foreign trade surplus widened in April as import growth decline outpaced that of exports, customs data showed.

Exports in yuan-denominated terms rose 14.3 percent year-on-year to $179.8 billion (1.24 trillion yuan), down from the 22.3-percent increase in March.

Imports expanded 18.6 percent to 979.1 billion yuan, compared with a 26.3-percent increase a month ago.

That leaves a trade surplus of 262.3 billion yuan, up 0.6 percent year on year. The surplus widened from 164.3 billion yuan seen in March. (Photo 1)

Tuesday____May 9

China tests new missile in Bohai Sea

Chinese rocket forces have conducted a combat test of a new type of missile in the Bohai Sea, according to a statement from the Information Bureau of China's Ministry of National Defense.

The remarks were made Tuesday in response to media inquiry about a recent missile test.

The test was conducted in accordance with the annual training plan to enhance the combat skills of the forces and their ability to handle threats to national security, the statement said.

"The test achieved the expected result," said the statement, without disclosing the exact date. The Bohai Sea is the innermost gulf of the Yellow Sea and Korea Bay on the coast of Northeastern and North China.

Shanghai remains most expensive Chinese city

Shanghai remains the most expensive city in the Chinese mainland, and Asian cities account for half of the 10 most-expensive cities in the latest Worldwide Cost of Living Survey from The Economist Intelligence Unit.

Exchange rate volatility was the major factor that determined the cost of living in cities.

With the strength of the US dollar moderating and the euro remaining relatively stable, currencies such as the Australian dollar and the New Zealand dollar have gained in value, ending up with higher relative cost.

Singapore and Hong Kong continue to be the most and second-most expensive cities in Asia.

Underpinned by a stronger yen, Tokyo and Osaka have returned to the 10 most expensive cities' list, by climbing up seven and nine places. Seoul, supported by currency and income growth, has moved up two places to the 6th spot.

Five Chinese mainland cities - Beijing, Suzhou, Guangzhou, Tianjin and Dalian - are among the biggest movers down the ranking ladder in the past year.

Wednesday____May 10

Thailand buys first submarine since WWII

The Royal Thai Navy (RTN) signed a contract with a Chinese company for a S26T diesel-electric submarine, the country's first submarine since the end of World War II.

The website of the stated-owned China Shipbuilding Industry Corporation said it was the company's second submarine export contract after an eight-ship deal with Pakistan's navy in 2015.

"The submarines from China are the cheapest, with quality that is relatively acceptable. [China] also offers services after purchase, something extra that we have received," Thailand's Prime Minister Prayut Chan-o-cha was quoted as saying by Nationmultimedia.com in March.

Due to domestic politics and a budget shortage, the country delayed its plan to buy a submarine until China offered what was called an unbeatable deal. (Photo 2)

AmEx looks to tap young Chinese consumers

American Express Co, the largest credit-card issuer based on purchases, is seeking to extend its services to young affluent consumers in China to tap into their purchasing potential in outbound tourism and international online shopping.

The credit card issuer launched two credit cards under a partnership with Bank of China, the country's fourth-largest lender by assets.

China has become one of the fastest growing markets for American Express. The company acknowledged the rapid development of mobile payment services led by Chinese third-party payment companies such as Alipay, the digital wallet run by e-commerce giant Alibaba Group, and WeChat Wallet owned by Tencent Holdings.

Thursday____May 11

Auto sales continue first-quarter decline

China's passenger car market in April continued the lackluster performance seen in the first quarter.

Sales of sedans, SUVs, MPVs and minivans totaled 1.69 million units in the month, a 1.7 percent fall from the same month last year, statistics from the China Passenger Car Association showed.

Sales so far this year totaled 7.27 million, a 1.4 percent dip year-on-year. The fall could have been steeper without SUVs, whose sales grew 17.2 percent in the same period. It was the only growing segment in the first four months of the year, while other segments fell, ranging from 8.1 percent to 32.3 percent. (Photo 3)

Manure makes a comeback in farming

The Ministry of Agriculture will encourage the use of manure and reduce chemical fertilizers to make the agricultural industry more environmentally friendly and cost-efficient.

The government would like to see 75 percent of livestock manure nationwide reused, and wants 95 percent of intensive livestock farms to be equipped with manure treatment facilities, Ye Zhenqin, spokesman for the ministry, told a news conference.

About 40 percent of chemical fertilizers in China are used on fruit, vegetables and tea. The government plans to reduce the use of chemical fertilizers by 50 percent in key producing areas by 2020, Ye said.

Zeng Yande, head of the crop production department at the ministry, said replacing chemical fertilizers with manure is inevitable.

"To guarantee the supply of crops, a lot of chemical fertilizers have been used, which not only affected the environment but also increased the cost," he said.

China uses an average of 561 kilograms (1,237 pounds) of fertilizer per hectare of fruit orchard - twice that used in Japan and six times that of the United States.

Friday____May 12

Shanghai Disney will welcome 10m visitor

Shanghai Disney Resort will welcome its 10-millionth visitor as the resort approaches its first anniversary on June 16.

"As the resort has become a true national destination in China, attendance is outpacing our most optimistic projections and the park's performance is exceeding our expectations," said Robert Iger, CEO of The Walt Disney Co.

According to Disney's second-quarter report issued this week, Shanghai Disney Resort has contributed to the company's operating income growth for the quarter.

Disney reported 2nd-quarter revenue was $13.3 billion and net income stood at $2.388 billion.

Beijing exodus? Housing prices the concern

About 70 percent of respondents to a survey believe that professionals in Beijing will be impeded in their long-term development if they do not buy homes in the city, according to recent online survey results.

A total of 7,000 people took part in the survey by the job-hunting company Liepin focusing on professionals' attitudes toward the wave of people fleeing Beijing, and a majority of them don't have a Beijing hukou, or household registration.

"Cannot afford, dare not to think" is the first response of 43.93 percent of the participants who were asked if they would buy homes in Beijing. Only 6.13 percent of respondents said they planned to buy homes in the city, and 15.84 percent said they have homes in the city.

In the first quarter this year, Beijing's new home prices soared by about 27 percent according to data from property companies, even though the city government launched a series of measures to curb housing prices.

(China Daily USA 05/12/2017 page12)