CPI

In April, the consumer price index was up 1.2 percent over the same period last year, according to the National Bureau of Statistics (NBS). Of the total, the index gained 1.2 percent in urban areas and 1.1 percent in rural areas, respectively, year on year. From January to April, it rose 1.2 percent over the year-earlier period.

By category, prices of food increased 1.8 percent while those of non-food items went up 0.9 percent over a year ago. Prices of consumer goods and services rose 1.1 percent and 1.7 percent, respectively, year on year (see graphs 1 and 2).

PPI

The producer price index for manufactured goods increased 1.9 percent year on year in April, according to the NBS. Of the total, purchasing prices of raw materials, fuels and power climbed 4.9 percent from a year ago.

Producer prices of capital goods registered a growth of 2.6 percent over the year-earlier period, while those of consumer goods saw a decline of 0.4 percent from a year ago (see graph 3).

In April, producer prices of crude oil ranged up 19.3 percent, contributing about 0.6 percentage points to the overall growth of the PPI. Among refined oil products, prices of gasoline, kerosene and diesel oil grew 22.9 percent, 25.5 percent and 20.1 percent, respectively, year on year.

Producer prices of raw coal went up 5.3 percent year on year.

Purchasing prices of fuel power and non-ferrous metal materials grew 12.4 percent and 23 percent, while those of ferrous metal materials and chemical materials dropped 3.6 percent and 0.3 percent compared with the same period last year.

From January to April, the PPI went up 2.6 percent compared with the same period last year and purchasing prices of raw materials, fuels and power jumped 6.1 percent over a year ago.

Retail Sales

In April, retail sales of consumer goods stood at 577.5 billion yuan, up 13.6 percent year on year, according to the NBS. From January through April, retail sales of consumer goods amounted to 2.42 trillion yuan, a year-on-year increase of 13 percent.

By region, retail sales of consumer goods in urban areas peaked at 389.8 billion yuan, rising 14.1 percent over a year ago, and those in rural areas grew 12.5 percent to 187.7 billion yuan.

By sector, the sales volume of the wholesale and retail sector went up 13.6 percent to 491.1 billion yuan; that of the accommodation and catering sector grew 15.4 percent to 75.7 billion yuan; and that of other sectors totaled 10.7 billion yuan, inching up 0.4 percent compared with the same period last year.

Retail sales of food, clothing and commodities rose 14.9 percent, 17.4 percent and 23.5 percent, respectively, year on year (see graph 4).

Foreign Direct Investment

From January to April, the Chinese Government approved the establishment of 12,639 foreign-invested enterprises, a decline of 3.46 percent compared with the same period last year, according to the Ministry of Commerce. The paid-in capital reached $18.48 billion, up 5.76 percent year on year.

During the first four months, the 10 countries and regions that invested the most in China were Hong Kong, the British Virgin Islands, Japan, South Korea, Germany, the United States, Taiwan, the Cayman Islands, Singapore and Samoa (see graph 5).

Listed Companies

The net profits of 1,340 companies listed on China’s stock market totaled 41.76 billion yuan in the first quarter, dropping 13.29 percent year on year, according to the China Securities Journal.

Quarterly reports of these companies show that although their business revenues rose 16.09 percent year on year in the first three months, the net profits actually declined.

Among the 1,340 companies, 225 incurred losses, accounting for 19 percent of the total. Companies in the sectors of real estate, foodstuff, beverage, power and media performed well, while those in electric appliances, transportation and metallurgy industries were in difficulty.

The soaring prices and strong demand in the property market boosted net profits of 52 listed estate companies in the first quarter by 30.36 percent over a year ago to 1.27 billion yuan.

Of the 58 listed companies in the food and beverage sector, 52 gained profits. Their net profits surged 33.38 percent from a year ago to 2.14 billion yuan.

The net profits of 10 listed companies in media and culture industries soared 118.6 percent year on year to 22 million yuan.

Downstream companies suffered heavily from price hikes of raw materials and energy. Although business revenues of transportation and warehousing companies rose 22.16 percent in the first quarter, their net profits dropped 35.36 percent to 2.3 billion yuan. China Eastern Airlines lost 950 million yuan and China Southern Airlines lost 660 million yuan, respectively, in the first quarter.

High oil prices also brought petrochemical and plastic companies into difficulty. The net profits of 145 such companies dropped 16.74 percent from a year ago in the first quarter.

During the first quarter, losses of the electronic industry totaled 260 million yuan, up 68.4 percent over the year-earlier period. Market analysts attributed this to the weak innovation capacity of Chinese companies and accelerated expansion of multinational companies in the domestic market.

Treasury Bonds

China has issued 30.8 billion yuan worth of book-entry treasury bonds with terms of maturity of five years, said the Ministry of Finance.

The treasury bonds, the fifth batch of its kind issued this year, carry an annual par interest rate of 2.4 percent, the ministry said in a statement.

The issue of the treasury bonds, whose interest was calculated from May 16, was completed on May 19.

The ministry said the treasury bonds were available to investors with accounts for investment in funds, stocks and bonds at the China Securities Depository and Clearing Co. or the China Treasury Bonds Depository and Clearing Co.

The bonds will be floated for cash trading from May 25 at the national inter-bank bond market or the stock market.

The ministry said that 31 selected from 60 participants through public bidding as underwriting institutions were awarded the rights to distribute the treasury bonds.

Major underwriters for the issue included the Bank of Communications, the Bank of China and the Bank of Shanghai.