CBN丨China's factory activity further contracts in November

2023-11-30 20:22:00 - 21世纪经济报道

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Comingupontoday’sprogram

China’smanufacturingPMIedgesdowninNovember,constrainedbyweakmarketdemand;

OECDexpectsChina'sGDPtogrowby5.2%in2023.

Here’swhatyouneedtoknowaboutChinainthepast24hours

China'smanufacturingsectorcontractedforthesecondstraightmonthinNovember,asfactoryoutputshrankbecauseconsumptiondemandweakenedandsomesectorsenteredtheirtraditionaloff-peakseason,accordingtothelatestofficialdata.

Themanufacturingpurchasingmanagers'indexcameinat49.4inNovember,down0.1pointfromOctober,accordingtodatareleasedbytheNationalBureauofStatisticstoday.Thefigurewas50.2inSeptember.

Intermsofsub-indices,theproductionindexsettledat50.7inNovember,down0.2percentagepointsfromthepreviousmonth,whilethenewordersindexfellslightlyto49.4inthemonthfromOctober.Weakmarketdemandhasremainedtheprimaryculpritinhibitingmanufacturingsectordevelopment,accordingtothesurvey.

Therearetwobrightpoints,however,amongthesub-indices.Theexpectationindexforproductionandoperatingactivitiescameinat55.8,anincreaseof0.2percentagepointsfromOctober,whichindicatesthatthemajorityofmanufacturersarelargelyoptimisticaboutthemarketdevelopmentprospects.

TheadvancedmanufacturingindustrykeptasoundgrowthmomentuminNovember.ThePMIforthehigh-techmanufacturingsectorsoared2pointsto51.2,returningtotheexpansionterritory,whiletheequipmentmanufacturingPMIregisteredat51.6,up0.9percentagepointsmonth-on-month,indicatingthatindustryexpansionhasaccelerated.

China'snon-manufacturingbusinessactivityindexcameinat50.2inNovember,remaininginexpansionterritorydespitea0.4-pointdeclinefromOctober,theNBSsaid.ThecomprehensivePMIfell0.3pointto50.4percentintheperiod.

Anumberofrecentstimulusmeasureswillsupportmoderaterecoveryofdomesticmarketdemand.But,thereremainssomeuncertaintyaboutwhethersomeweakareassuchasprivateeconomyandtherealestatesectorcanstabilizesoon,andthedownwardpressureonexternaldemandisweighty,whichwillnegativelyimpacttherecoveryofthemanufacturingindustry,expertsnoted.

TheOrganizationforEconomicCo-operationandDevelopment(OECD)expectsChina'srealGDPtogrowby5.2percentin2023,accordingtoitslatestEconomicOutlookpublishedonWednesday.Theglobaleconomyisexpectedtoslowdownslightlynextyearasaresultoftighteningmonetarypolicies,weaktradeandlowerbusinessandconsumerconfidence,theorganizationsaid.ItprojectstheglobalGDPgrowthtobe2.9percentin2023,followedbyamildslowdownto2.7percentin2024andaslightimprovementto3percentin2025.

Movingontoregionalhighlights

EightrealestateprojectsforsaleinWuhan,thelargestcityincentralChina,willofferfullandunconditionalrefundswithin30daystohomebuyerswhopurchaseapropertynextmonthtoattractmoreclients.Thebuyerswillalsobeallowedtounconditionallyexitanypurchasingagreementsinkedwithinthesameperiod,theprojectsannouncedyesterday.Thecorrespondingdevelopersoftheprojectswillrefundtheentiretypaidbybuyerswithintheagreedperiod,withoutcharginganybreach-of-contractfeestosafeguardclients’rightsandinterestsandimprovetheirpurchasingconfidence,theWuhanRealEstateDevelopmentAssociationsaidonWeChatonthesameday.

Atleast16Chinesemetropolises,includingfourcitiesinShandongprovince,seveninJiangsuprovinceandfourinZhejiangprovinceaswellasonecityinGuangxiprovincehaveissuedpoliciessinceearlyJunetoencouragethesaleoflived-inhomestohelppotentialbuyersofnewapartmentssellthepropertiestheyarelivingin.Thepoliciesdifferfromcitytocitybutingeneraltheyaimtoshortenthetimeperiodbetweenwhenapotentialbuyerputsdownadepositforanewhomeandwhenheorshesellshisorheroldones.Themeasuresincludecuttingorcancelingtaxesonthesaleorofferingsubsidiestorealestatedevelopers,agenciesandindividuals.

GreaterBayArea,GreaterFuture

Shenzhen-HongKongcross-borderdataverificationplatform,thefirstofitskindinChina,waslaunchedinShenzhen,SouthChina'sGuangdongProvinceonWednesday. Theplatformwasdevelopedbasedontheconceptofdistributeddatatransferprotocolsandthedomesticopen-sourceblockchainunderlyingplatform.Leveragingthetamper-resistantandtraceableadvantagesofblockchaintechnology,theplatformhasachieveduser-authenticatedverificationofself-carrieddatathroughcross-bordervalidationusinghashvalues,whichareoftenusedwithdigitalsignatures,accordingtomediareports.

HongKongSecretaryforFinancialServicesandtheTreasuryChristopherHuiChing-yusaidyesterdaythattheSARwilldeepenfinancialindustrycooperationwithBeijinginfourmajordirections,includingenhancingcollaborationinthecapitalmarket.HuiwroteinhisblogthatasoftheendofOctober,thereare260Beijing-basedcompanieslistedinHongKong,withatotalmarketvalueofnearlyHKD8.86trillion.HeexpressedhishopeformoreBeijing-basedcompaniestoleveragelistingsonHongKongplatforms.Healsomentionedthatbothlocalgovernmentswillencouragethemutualflowoffinancialtalentandsupportfinancialinstitutionsinexpandingtheiroperationsineachother'smarkets.

Nextonindustryandcompanynews

E-commerceplatformPinduoduosawitsUS-listedsharesrisebyover4percentonWednesday,continuingthepreviousday'supwardtrend.Atonepointitsurpassede-commercegiantAlibabainmarketvalue,givingitthelargestmarketcapitalizationamongChineseconceptstocks.Thecompany'smarketcapreachedashighasUSD192.3billionduringintradaytrading,exceedingAlibaba'sUSD191billionintheUSstockmarket.

TheTarimOilfield,undertheChinaNationalPetroleumCorporation(CNPC),China'stopoilandgasproducer,hasseenitsannualoilandgasproductionreach30milliontonssofarthisyear,sixdaysearlierreachingthesamebenchmarkthanlastyear,thecompanyannouncedonThursday.LocatedinNorthwestChina'sXinjiang,theTarimOilfieldisamajoroilandgasfieldinChina,andasignificantsourceofnaturalgas,linkedbythecountry'sWest-to-EastGasTransmissionPipelineproject.

About75percentofsmartmanufacturingequipmentboughtbyUStechgiantAppleisreportedlydevelopedinChina,mediareportedyesterday,citingVicePresidentofAsiaProcurementandOperationsIrisCui.Smartmanufacturingtransformationismainlyseeninthetalent,technology,andequipmentaspects,shenoted.Applebuys98percentofitsequipmentfromitstop200globalsuppliers,with151ofthemmanufacturingitinChina,accordingtocompanydatareleasedattheongoingfirstChinaInternationalSupplyChainExpo.

ZhuhaiWandaCommercialManagementGroup,thedebt-ladencommercialpropertymanagementunitofChineserealestategiantDalianWandaGroup,saidthatitsadjustedrepaymentschemeofaUSD600millionbondwasapprovedbycreditors.Theratioofin-favorcreditorsparticipatinginthevotingwasover99percent,withbondsheldbyvotersbeingatleast66percentofthetotalprincipal,WandaCommercialManagementannouncedtoday.ThebondwasscheduledtomatureinJanuary,butthedatewasextendedtoDec.29ofnextyear,itadded.

SharesofSimeiMediakeeptankingforthethirdstraightdayafterChina'ssecuritieswatchdogstartedinvestigatingtheadvertisingagencythatclaimedearlierthisweekthatitwilloperatetheonlinesupermarketbusinessoftheChineseversionofTikTok.TheChinaSecuritiesRegulatoryCommissionhasbuiltacaseagainstSimeiMedia'sallegedviolationsofinformationdisclosureaboutDouyin,thefirmsaidyesterday.TheZhejiangbranchoftheregulatorhassentwarningletterstothecompanyanditsboardsecretary.

Earningsreportsexpress

Video-sharingplatformBilibilinarroweditsnetlossforthequarterendingSeptemberby21percentyear-on-year,or13percentquarterly,to1.35billionyuan,accordingtoitslatestfinancialreportedreleaselateWednesday.Netrevenueswere5.8billionyuan,inwhichrevenuefromvalue-addedserviceswasnearly2.6billionyuan,representinga17percentyear-on-yearincrease,whileadvertisingrevenuegrewby21percentyearlyto1.64billionyuanandmobilegamerevenuewas990millionyuan,downby33percentyear-on-year.Averagedailyactiveusersincreasedby14percentto102.8millioncomparedtothequarterin2022.

Switchinggearstofinancialnews

TheLondonMetalExchange(LME)yesterdaywonalegalbattleagainstUSfinancialfirmsdemandingUSD472millionincompensationaftertheexchangecanceledbillionsofdollarsinnickeltradeslastyearafterasurgeinprices.TheLondonlawsuitwasbroughtbyhedgefundElliottAssociatesandmarketmakerJaneStreetGlobalTradingaftertheworld'slargestmetalsmarketplacecanceledUSD12billionintradeswhenpricesshotaboveUSD100,000atoninafewhoursofchaotictradeinMarch2022.NicolasAguzin,CEOoftheHongKongExchangesandClearing,LME’sparent,saidinastatementaftertherulingthatitisreadytomoveforwardandthekeyrolethattheLMEwillcontinuetoplayinthepricingofthemetal.

Wrappingupwithaquicklookatthestockmarket

ChinesestocksendedmixedonThursdaywiththebenchmarkShanghaiCompositeup0.3percent,whiletheShenzhenComponentdipped0.2percent.HongKong’sHangSengindexadded0.3percent,whiletheTECHindexfell0.3percent.

BizWordoftheDay

Dataverification isaprocessinwhichdifferenttypesofdataarecheckedforaccuracyand inconsistencies after datamigration isdone.Dataverificationhelpstodeterminewhetherdatawasaccuratelytranslatedwhendatais transferred fromonesourcetoanother,iscomplete,andsupportsprocessesinthenewsystem.Duringverification,theremaybeaneedforaparallelrunofbothsystemstoidentifyareasofdisparityandforestallerroneous dataloss.

CBN丨China's factory activity further contracts in November