Foreign Trade

In the first three months, the volume of China's foreign trade reached $371.3 billion, growing 25.8 percent compared with the same period of last year, according to statistics released by the General Administration of Customs (see graph 1). The trade surplus stood at $23.3 billion at the end of March.

In March alone, the foreign trade volume ranged up 24.9 percent to $144.9 billion, hitting a record high. Of the total, exports stood at $78.04 billion and imports amounted to $66.86 billion, increasing 28.3 percent and 21.1 percent, respectively, year on year.

From January to March, total volumes of general trade and processing trade amounted to $156.79 billion and $178.16 billion, expanding 23.4 percent and 27 percent, respectively, compared with the same period of last year (see graph 2).

The EU, the United States, Japan and the Association of Southeast Asian Nations remained China's four largest trading partners (see graph 3).

Machinery and electrical products contributed 58.1 percent to total exports. During the three months, exports of machinery and electrical products were valued at $114.58 billion, surging 34.2 percent over the year-earlier period. Of this total, exports of electrical appliances and electronic products, machinery products and equipment as well as hi-tech products reached $46.54 billion, $40.32 billion and $59.27 billion, shooting up 41.9 percent, 25.4 percent and 35.8 percent, respectively, year on year. Exports of clothes and shoes expanded 23 percent and 19 percent to $17.21 billion and $4.87 billion.

During the January-March period, China imported $42.63 billion worth of primary products, surging 37.7 percent compared with the same period last year, accounting for 24.5 percent of the country's total imports. The country also bought $131.36 billion worth of manufactured goods, 21.2 percent more than the figure in the same period of 2005. Among this total, imports of machinery and electrical products were valued at $93.74 billion, rising to 30.8 percent over a year ago. At the same time, China bought 51,000 automobiles, twice the figure in the same period of last year.

Finance

Financial performance remained sound and stable in the first quarter, said the People's Bank of China, the country's central bank.

During the first three months, money supply grew rapidly (see graph 4). A total of 56 billion yuan of cash was withdrawn from circulation, 33 billion yuan more than that in the same period of last year.

At the end of March, the outstanding renminbi and foreign currency deposits of all financial institutions totaled 31.8 trillion yuan, up 18.4 percent from a year ago (see graphs 5 and 6).

During this period, 1.9 trillion yuan of renminbi deposits were added to the balance, 699 billion yuan more than that in the same period last year. Of them, deposits from households, non-financial institutions and the government increased 1.2 trillion yuan, 516.3 billion yuan and 215.2 billion yuan, respectively.

In March alone, renminbi deposits increased 786.1 billion yuan, 100.1 billion yuan more than the figure in the same period of 2005. Among this total, deposits from households, non-financial institutions and the government increased 166.5 billion yuan, 548.2 billion yuan and 62.7 billion yuan.

During the January-March period, $6.6 billion of foreign currency deposits were added to the balance. Newly increased foreign currency deposits stood at $900 million in March.

The excess reserve rate of all financial institutions stood at 3 percent at the end of March, 1.2 percentage points lower than the year-earlier period and down 0.24 percentage points month on month.

The March-end outstanding renminbi and foreign currency loans of all financial institutions amounted to 21.9 trillion yuan, up 14 percent year on year. In the first three months, 1.26 trillion yuan of loans were added to the balance, 519.3 billion yuan more than the figure in the same period of last year. Of the total, loans granted to households and to non-financial institutions and other departments increased 166.9 billion yuan and 1.09 trillion yuan.

In March alone, renminbi loans increased 540.2 billion yuan. Of this total, households and non-financial institutions and other departments received 82.9 billion yuan and 457.4 billion yuan, respectively.

Foreign currency loans from January to March increased $4.3 billion and in March, $2 billion of foreign currency loans were added to the balance.

As of the end of March, the country's foreign exchange reserves topped $875.1 billion, shooting up 32.8 percent year on year. In the first quarter, foreign exchange reserves increased $56.2 billion, $7 billion more than the figure in the same period of last year. In March alone, $21.4 billion was added to the balance.

Golden Week

Statistics from the National Tourism Administration showed that during the weeklong May Day holiday, a total of 146 million tourists generated 58.5 billion yuan, growing 20 percent and 25.2 percent, respectively, year on year. On average, every tourist spent 400 yuan.

Of the total revenue, airlines and the railway sector earned 2.43 billion yuan and 1.33 billion yuan, growing 21.5 percent and 6.9 percent, respectively. During the week, the 39 major tourist cities received 52.25 million tourists and gained 24.2 billion yuan in revenue while other cities and scenic areas raked in 30.5 billion yuan.

Some 182 surveyed commercial establishments in the 39 major tourist cities reported sales revenue of 5.637 billion yuan, up 19.3 percent compared with the same period of last year. Sales revenue of 174 surveyed catering businesses rose to 329 million yuan, growing 13.5 percent over a year ago.

State Sugar Reserves

China has decided to increase processed raw sugar for state reserves by an additional 600,000 tons this year, the China Securities Journal reported.

The move is part of the government's effort to curb soaring sugar prices, which have exerted pressure on downstream industries such as food processing and beverages.

The announced increase has brought down the rise of sugar prices in the Chinese market. In the latest auction of state sugar reserves in April, the price went down to 4,630 yuan per ton, compared with 5,060 yuan in the previous auction.

China Southern Airlines

China Southern Airlines, with the largest and most technically advanced fleet in China, has awarded Carlson Marketing the job of renovating its existing frequent flyer program, the Sky Pearl Club. The club is China's largest and fastest growing frequent flyer program with more than 3.1 million members and is increasing at a rate of more than 800 new members every day.