Chinese Economics Thread

[Rettam Stacf]

Not only vaccines, but also medicines and preventive tools like air disinfectant, UV-C lights and better masks. This thing is going to keep evolving to circumvent immunity, creating newer variants with varying level of immunity evasion and severity. Its an ever evolving threat where the best we can do is slow the spread and lower the amount of people infected in each covid wave.

@Coalescence , since this is a Chinese Economic Thread and not a Covid-19 Thread, please allow me to edit your pose as follows :

" Not only vaccines, but also medicines and preventive tools like air disinfectant, UV-C lights and better masks. This thing is going to keep evolving to circumvent immunity, creating newer variants with varying level of immunity evasion and severity. Its an ever evolving threat where the best we can do is slow the spread by purchasing more and more China manufactured medicine and preventive products to and lower the amount of people infected in each covid wave. "

 

[Coalescence]

@Coalescence , since this is a Chinese Economic Thread and not a Covid-19 Thread, please allow me to edit your pose as follows :

" Not only vaccines, but also medicines and preventive tools like air disinfectant, UV-C lights and better masks. This thing is going to keep evolving to circumvent immunity, creating newer variants with varying level of immunity evasion and severity. Its an ever evolving threat where the best we can do is slow the spread by purchasing more and more China manufactured medicine and preventive products to and lower the amount of people infected in each covid wave. "

Thanks, I've been getting off-topic a lot lately when it comes to topics related to Covid. To add, the industries manufacturing those medicine and preventive products should be partially nationalized, to give the government more pricing pressure/control and for a way to direct the profits into medical research and development.

By the "end" of this pandemic, China's medical industry would be well-funded to be able to developed faster and take on bigger research projects.

 

[Overbom]

Covid affects the economy so as long as a post is about covid-economy complications then it should be ok

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Services/consumption are gone

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Travel and tourism spending plunged during China’s Labour Day holiday due to coronavirus lockdowns and restrictions rolled out across the country, with the “situation unlikely to improve materially in May”, analysts said.

Trips taken during the five-day holiday, which ended on Wednesday, fell to 160 million, down by a third compared with the same period last year, according to data from the Ministry of Culture and Tourism.

Tourist spending also dropped by 43 per cent compared with last year to 64.68 billion yuan (US$9.79 billion), recovering to only 44 per cent of the level seen before the coronavirus pandemic.

“Tourism companies are facing tremendous hardships now, but there’s nothing you can do about the Covid measures,” said Wang Ke, a tourism analyst with consulting firm Analysys.

The Labour Day break at the start of May is one of the so-called golden week holidays in China and is traditionally one of the busiest travel seasons. But this year, according to an estimate by the Ministry of Culture and Tourism, around a third of all traditional tourist venues were closed due to virus control measures.

Authorities had already painted a pessimistic picture before the holiday due to the various travel bans and mass lockdowns, with the Ministry of Transport expecting passenger traffic to fall by over 60 per cent this year.

But according to a report from Jiemian News, citing sources from China Railway, the number of daily railway passengers only reached around 20 per cent compared with last year.

According to the report, the number of railway passengers was around 2.35 million to 4.4 million passengers per day compared with 13 million to 19 million last year.

The Civil Aviation Administration of China had predicted before the holiday that air travel would plummet by 77 per cent compared with last year, with the actual data yet to be released.

The Chinese capital recorded 1.58 billion yuan in tourist spending during the holiday this year, 83 per cent down from 9.3 billion yuan last year, according to the Beijing Municipal Bureau of Culture and Tourism.

As of Tuesday, 328 million people in 43 Chinese cities were under full or partial lockdowns, according to Nomura.

“Moreover, according to data compiled by Maoyan, total box office sales for the Labour Day holidays plunged to 297 million yuan from 1.673 billion yuan last year

 

[Overbom]

Caixin services PMI is out and it is... catastrophic.

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The Caixin services purchasing managers’ index (PMI) fell to 36.2 in April, the second-lowest since the survey began in November 2005 and down from 42 in March.

>50 is expansion, <50 is contraction.
For March it was 42 (big contraction).
For April it is 36.2 (catastrophic).

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The pessimistic findings from the survey, which focuses more on small firms in coastal regions, are in line with the government’s official PMI, pointing to the fast deterioration in a sector that accounts for about 60 percent of the economy and half of urban jobs.

"Even though mobility has improved slightly in May, it is still at a relatively low level compared with last year. This shows that firms will still be worried about weaker sales and higher costs, meaning pressure on economic growth.”

 

[Overbom]

Caixin services PMI is out and it is... catastrophic.

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>50 is expansion, <50 is contraction.
For March it was 42 (big contraction).
For April it is 36.2 (catastrophic).

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In case anyone asks why I say the number is catastrophic:

 

[Sleepyjam]

Recovery is expected by the end of May

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[Coalescence]

Recovery is expected by the end of May

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I want to believe but.

Spoiler

 

[tokenanalyst]

I want to believe but.

Spoiler

View attachment 88299

That will depends if the outbreak is tamed by the next few weeks, if so, there could be a huge increase in economic activity in the coming months that will slow to normal the following months.

 

[Overbom]

That will depends if the outbreak is tamed by the next few weeks, if so, there could be a huge increase in economic activity in the coming months that will slow to normal the following months.

For Shanghai there is about another month of lockdowns. IMO April is gone, May is semi gone, June to have good growth but nowhere enough to cover the previous months' losses

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With thousands of key enterprises resuming production, experts forecast that the city will gradually lift the lockdowns by the end of May

 

[Overbom]

"A survey on business confidence of 2,600 managers of small & medium-sized enterprises in Shanghai (response rate 38%) found that only 10% still have plan to continue business. The percentage could be even lower considering those not taking the phone calls."

https://twitter.com/i/web/status/1522215247896924160