BUSINESS NEWS

China’s Economy Contracted in the Second Quarter

China’s GDP fell by 2.6% in the three months leading up to the end of June, as major financial hubs such as Beijing and Shanghai dealt with full or partial lockdowns. As the world’s second-largest economy, China see growth of 0.4% in the April to June period, but this was some way short of its 1% target. However, Jeff Halley, senior market analyst for Asia Pacific at trading platform Oanda said, “GDP was worse than expected, however unemployment fell to 3.5% and retail sales outperformed impressively.” Market analysts predict that a quick economic recovery is not on the cards should China pursue its zero-COVID strategy.

China’s M2 increased by 11.4%

On July 11, according to the People’s Bank of China’s ‘Report on Financial Statistics for the First Half of 2022,’ China’s balance of broad money (M2) in June was RMB258.15 trillion, experiencing an 11.4% year-on-year growth, which is 0.3% and 2.8 % higher than that at the end of last month and the same period of 2021 respectively.

The balance of narrow money (M1) was RMB67.44 trillion, a 5.8% increase. The balance of money in circulation (M0) reached RMB9.6 trillion, increasing by 13.8%. Net cash issuance in the first half reached RMB518.6 billion.

Advance Payments for Henan Bank Depositors

According to CCTV Finance, from July 15 village banks in Henan Province started giving advance payments for depositors who could not withdraw funds, with a maximum of RMB50,000. To guarantee the payment, customers will receive their money in batches. Individuals with less than RMB50,000 within a single institution will be paid in the first round. Customers waiting for more than RMB50,000 will have to wait until this round has finished.

The failing banks have been in the news recently as depositors trying to withdraw their money suddenly found they had red health codes when traveling to Henan, despite following all COVID-19 pandemic and prevention procedures.

Going Electric: More NEVs on the Road

According to the China Association of Automobile Manufacturers, at the end of June, there were over 10 million new energy vehicles in China, 3.23% of all automobiles. Among the new energy vehicles, 8.104 million are pure electric vehicles, taking up 80.93% of all new energy vehicles. In the first half of 2022, 2.209 million new energy vehicles were registered, an increase of 1.106 million compared to the first half of 2021. Vehicle registration experienced an increase of 100.26%, a new record. Registrations of new energy vehicles accounted for 19.90% of the total new registrations of automobiles.

Beijing Bureau Fines “Ice Cream Assassins”

Chinese consumers have experienced a surge in the price of ice creams and have named high-priced treats “ice cream assassins.” The name refers to the sky high prices.

On July 13, the Market Supervision Bureau of Chaoyang District, Beijing conducted surprise checks on 36 convenience stores, such as Convenience Bee, 7-ELEVEN and Wumart. Fifteen stores were found to be conducting illegal acts, such as not labeling prices according to regulations. Officials issued a RMB2000 on-the-spot fine to each store.