China economic news

CNC
Added On September 12, 2019

Now let's take a look at some economic news from China.
 
China's consumer price index (CPI), a main gauge of inflation, rose 2.8 percent year on year in 
 
August.
 
PKG
 
1. CHINA SEES FLAT INFLATION GROWTH IN AUG
 
The National Bureau of Statistics (NBS) released the figure on Tuesday, adding the growth rate was 
 
unchanged from that in July.
 
Food prices grew 10 percent year on year last month, up from 9.1 percent in July, while non-food 
 
prices gained 1.1 percent, 0.2 percentage points lower than that of July.
 
According to a NBS senior statistician, due to shortage of supply, price of staple meat pork 
 
expanded its growth last month to rise 23.1 percent on a monthly basis.
 
Investment bank China International Capital Corporation Limited said the recent surge in pork 
 
prices was in part attributable to the usual pre-mid-Autumn seasonality.
 
According to a government work report, China aims to keep consumer inflation at around 3 percent 
 
in 2019.
 
Tuesday's data also showed that the CPI in urban and rural areas registered a year-on-year growth 
 
of 2.8 percent and 3.1 percent, respectively. 
 
The producer price index (PPI), which measures costs for goods at the factory gate, dropped 0.8 
 
percent year on year in August.
 
2.CHINA ISSUES GUIDELINE TO FURTHER STABILIZE HOG PRODUCTION
 
China will take a string of measures to stabilize hog production and facilitate the sector's industrial 
 
upgrading to ensure pork supply.
 
According to a guideline released by the General Office of the State Council, local governments can 
 
step up support for hog production, with enhanced prevention and control of African swine fever 
 
and promotion of modern breeding in a standardized manner.
 
Hog slaughtering, transport and other related links of the sector should be upgraded, including 
 
building additional cold chain logistics infrastructure.
 
Policy support such as optimizing related insurances and credit services, ensuring hog breeding 
 
land use and improving legal and regulatory frameworks will be taken to encourage hog production.
 
Chinese government agencies including the National Development and Reform Commission and 
 
the Ministry of Finance have stepped up support for hog production by rolling out specific policies 
 
recently.
 
These moves came as China's pig supply had shrunk substantially due to multiple factors including 
 
African swine fever and higher costs of pig breeding, which pushed up pork prices.
 
3. CHINA LIFTS INVESTMENT QUOTA LIMIT FOR FINANCIAL OPENING-UP 
 
China removes foreign investment quota limits in the domestic market to boost financial reform 
 
and opening-up.
 
The State Administration of Foreign Exchange or SAFE on Tuesday announced it would abolish the 
 
investment quota restrictions for Qualified Foreign Institutional Investors, or QFII, and Renminbi 
 
Qualified Foreign Institutional Investors, or RQFII.
 
According to the forex regulator, foreign institutional investors with corresponding qualifications 
 
will only need to go through the registration procedure so as to remit funds independently to make 
 
securities investment.
 
The SAFE said the new policy will facilitate foreign investors to participate in the domestic financial 
 
market. And China's financial market will be better accepted by the global market.
 
The SAFE said it would continue the efforts to support foreign investors to invest in domestic 
 
financial markets and facilitate cross-border investment and financing.
 
Meanwhile, the forex regulator will adapt to the opening-up, guard against the risk of cross-border 
 
capital flows and protect the country's economic and financial security.