The Sunday Mail
Manyika Kangai
China’s retail sales decline
Retail sales of consumer goods, a significant indicator of China’s consumption strength, went down 0,2 percent year-on-year to 13,81 trillion yuan (about US$2 trillion) in the January-April period, according to data from the National Bureau of Statistics (NBS). In April alone, retail sales declined 11,1 percent from a year ago to 2,95 trillion yuan (about US$427 billion). Sales of non-daily necessities and the catering sector, whose revenues declined by 22,7 percent, took a blow from the Covid-19 resurgence, dragging down growth of China’s overall retail sales. Major supermarkets saw sales grow 3,6 percent year-on-year in the first four months. Sales from groceries and convenience stores rose 2,4 percent and 6,8 percent, respectively. In the same period, online sales of physical goods rose 5,2 percent.
China raises fuel retail prices
China raised the retail prices of petrol and diesel on Tuesday, according to the National Development and Reform Commission. Based on recent changes in international oil prices, the retail prices of petrol and diesel rose by 285 yuan (about US$42) and 270 yuan (US$39,79) per tonne, respectively. The move marks the ninth fuel price increase since the end of last year. Under the current pricing mechanism, if international crude oil prices change by more than 50 yuan (US$7,37) per tonne and remain at that level for ten working days, petrol and diesel prices in China will be adjusted accordingly.
China’s power use drops
China’s electricity consumption, a key barometer of economic activity, recorded a slight decline last month, according to official data from China’s National Energy Administration. Total power use dropped by 1,3 percent year-on-year in April to 636,2 billion kilowatt-hours (kWh). Power consumed by primary industries increased by 5,5 percent year-on-year, while that used by secondary and tertiary industries shrank by 1,4 percent and 6,8 percent, respectively. Residents’ power consumption saw a year-on-year increase of 5,5 percent to 83,7 billion kWh in April.
China’s property investment down
China’s investment in property development went down 2,7 percent year-on-year in the first four months of 2022, compared with a 0,7-percent gain seen in the first quarter, according to data from the National Bureau of Statistics (NBS) released on Monday. The total property investment in the period stood at 3,92 trillion yuan (about US$578 billion). Investment in residential buildings came in at 2,95 trillion yuan (about US$435 billion), down 2,1 percent year-on-year. Commercial housing sales in terms of floor area totalled 397,68 million square metres in the first four months, down 20,9 percent year-on-year. In terms of value, commercial housing sales fell 29,5 percent to 3,78 trillion yuan (about US$557 billion) during the four-month period.
China expands railway lines
China put 581 km of new railway lines into service in the first four months of the year, including 358 km of high-speed railway, according to data from China State Railway Group. The country saw 157,46 billion yuan (about US$23,21 billion) in fixed asset railway investment in the period, up 0,6 percent year-on-year. Among the 102 major rail projects listed in the country’s 14th Five-Year Plan, are the building of the New International Land-Sea Trade Corridor and capacity expansion of the China-Europe freight trains. China’s rail cargo volume rose 10,1 percent year-on-year and hit a record high of 330 million tonnes in April.
Manyika Kangai helps African businesses realise the full potential of the vast opportunities China presents. He has over 15 years’ experience facilitating and advising on China-Africa trade and investment deals. Feedback: www.muvambi-sa.co.za/+27743487997
