Faced with the impact of the epidemic, China quickly adopted strong prevention and control measures in preparation for the rescue of the enterprise and the subsequent resumption of production. Recently, with the continuous improvement of the epidemic prevention and control situation, residents are increasingly active when they go out, and the resumption of production and production has steadily increased, and market popularity has gradually recovered. Foreign media said that China has withstood the impact of the epidemic, its exports increased in April against the trend, and the economy showed signs of recovery.
"Wall Street Journal": withstand the impact of the epidemic, China's export growth in April
"The Wall Street Journal" commented that China's export growth in April was against the trend. This export performance was surprising in the context of the economic downturn, weak demand and disruption of the global supply chain caused by the new crown epidemic.
According to data released by the General Administration of Customs of China, China ’s exports in April increased by 3.5% compared with the same period of the previous year, and exports in March decreased by 6.6% year-on-year. Earlier, economists interviewed by The Wall Street Journal had estimated that China's exports in April would decline by 18.8% year-on-year.
Economists also said that China's April export data may benefit from orders backlogged earlier this year due to the outbreak of the new crown epidemic. The report also pointed out that ASEAN as a whole surpassed the European Union and the United States as China's largest export destination earlier this year, offsetting the loss of exports to Western economies.
Statistics from the China General Administration of Customs show that in the first four months of this year, China ’s imports and exports to ASEAN and countries along the “Belt and Road” increased against the trend, while imports and exports to the EU, the United States and Japan declined. In the first 4 months, ASEAN was China's largest trading partner. The total trade value between China and ASEAN was 1.35 trillion yuan, an increase of 5.7%, accounting for 14.9% of China's total foreign trade value.
"Financial Times": China's exports rebounded in April due to rebound in Asian demand
The Financial Times website of the United Kingdom reported on May 7 that with the rise in Asian demand, China's exports rebounded in April, but the service industry remained sluggish, which meant that it was still challenging to revive the economy after ending the new crown embargo measures.
The report pointed out that the recovery of Chinese exports is mainly driven by strong demand in Southeast Asia, and the region is one of China's largest trading partners. As the epidemic has eased, the Southeast Asian market is gradually reopening. Customs data show that ASEAN's purchases in the first four months of this year increased by 3.9%.
The report pointed out that China's bulk commodity imports are also accelerating. With the restoration of infrastructure construction, the imports of iron ore and copper increased significantly compared with the same period last year.
In contrast, the trade volume of the European Union and the United States, which are in a state of blockade, fell by 6.5% and 12.8%, respectively.
Despite mixed conditions, economists claim that these figures show that even though there is still a risk of a hard landing, the world ’s second largest economy is proving to be able to withstand beatings. Zhong Zhengsheng, chief economist of Monita Group, a Beijing-based consulting agency, said: "The economy is showing signs of recovery."
Reuters: China's Pratt & Whitney funds support enterprises to resume production and production will benefit the bank's long-term profitability
Reuters quoted a report released by Deloitte, which pointed out that the risk response capability of China's mainland banking system has been greatly improved. Although the impact of this year's performance will be unavoidable, the risk is controllable.
On May 7th, Deloitte, a professional service organization, released the report "Moving Forward, A New Chapter of Wisdom: A Review and Prospect of the Development of the Chinese Banking Industry in 2019-2020" The report analyzes the financial performance of six large commercial banks in China in 2019, sorts out and observes the changes in its business development, business model and regulatory environment, and compares it with large global banks to forecast the future development trend of the Chinese banking industry.
The "Report" believes that with the further improvement of the prevention and control of the new coronavirus epidemic in China, the growth of corporate credit demand is on the rise, and it is expected that the growth of bank credit will accelerate. The central bank releases low-cost inclusive funds to support enterprises to resume production and production, and the stability of corporate asset quality will benefit the long-term profitability of banks.
Zeng Hao, partner of Deloitte China Audit and Assurance, said that the current superimposed impact of the economic cycle and epidemic situation has affected the international supply chain system, which has triggered industrial restructuring and affected the future credit placement of the banking system. However, the risk response capability of the mainland banking system has been greatly improved. Although the impact on business and performance is unavoidable, the risk is manageable.
