RISK MANAGEMENT

China Starts 2017 With a Strong GDP

China’s economy increased 6.9 percent in the first quarter from a year earlier, laying a solid foundation for accomplishing the whole-year growth target, according to the National Bureau of Statistics of China.

According to the preliminary estimates, the gross domestic product (GDP) of China was 18,068.3 billion yuan in the first quarter of 2017, a year-on-year increase of 6.9 percent at comparable prices.

The value added of the primary industry was 865.4 billion yuan, up by 3.0 percent; the secondary industry 7,000.5 billion yuan, up by 6.4 percent; and the tertiary industry 10,202.4 billion yuan, up by 7.7 percent.

The GDP of the first quarter of 2017 went up by 1.3 percent on a quarter-on-quarter base.

Profit for enterprises rises rapidly

In the first quarter, the year-on-year real growth rate of total value added of the industrial enterprises above designated size was 6.8 percent, 1.0 percentage point faster than that of the same period last year, 0.8 percentage point faster than the whole of last year.

An analysis by types of ownership showed that the value added of the state holding enterprises went up by 6.2 percent year on year; collective enterprises up by 0.5 percent; share-holding enterprises up by 6.9 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 6.9 percent.

In terms of sectors, the value added of the mining dropped by 2.4 percent on a year-on-year base, the manufacturing grew by 7.4 percent and the production and supply of electricity, thermal power, gas and water grew by 8.9 percent.

The industrial structure continued to improve. The value added of high-tech industry and equipment manufacturing industry grew by 13.4 percent and 12.0 percent year on year respectively, 6.6 percentage points and 5.2 percentage points faster than that of the industrial enterprises above designated size as a whole, 2.6 percentage points and 2.5 percentage points higher than the whole of last year.

The sales-output ratio of the industrial enterprises above designated size reached 97.2 percent. In March, the total value added of the industrial enterprises above designated size went up by 7.6 percent year on year, 1.3 percentage points faster than that in the first two months of 2017, or up by 0.83 percentage point month on month.

In the first two months of 2017, the total profits made by industrial enterprises above designated size was 1,015.7 billion yuan, up by 31.5 percent year on year, 23.0 percentage points faster than the whole of last year. The profit rate from principle business of industrial enterprises above designated size was 5.92 percent, 0.8 percentage point higher than that of the same period last year.

Service industry grew fast

In the first quarter, the index of national services production increased by 8.3 percent year on year, 0.1 percentage point higher than that of the same period last year.

Specifically, information transmission, software and information technology services, and transport, storage and postal services maintained high growth rates. The growth rates of wholesale and retail trade and accommodation and catering trade picked up considerably.

In March, the index of national services production increased by 8.3 percent year on year, 0.1 percentage point faster than that of the first two months, and same as that of the same period last year.

In March, the business activity index for services was 54.2 percent, 1.0 percentage point higher than that of February, 1.1 percentage points higher than that of the same month last year, continuing the expansion trend.

Specifically, the business activity index for sectors like retail trade, air transport, postal services, internet and software information technology services, monetary and financial services, capital market services, and insurance all kept within the expansion range of over 55 percent.

The investment in fixed assets grew steadily

In the first quarter, the investment in fixed assets (excluding rural households) was 9,377.7 billion yuan, a year-on-year growth of 9.2 percent, 1.1 percentage points faster than the whole of last year, 0.3 percentage point faster that than in the first two months of 2017.

Specifically, the investment by the state holding enterprises reached 3,308.7 billion yuan, a rise of 13.6 percent; private investment reached 5,731.3 billion yuan, up by 7.7 percent, 1.0 percentage point faster than that in the first two months, accounting for 61.1 percent of the total investment.

The investment in the primary industry was 233.5 billion yuan, up by 19.8 percent year on year; the secondary industry 3,509.4 billion yuan, up by 4.2 percent, among which the investment in manufacturing was 2,932.5 billion yuan, up by 5.8 percent; and the tertiary industry 5,634.9 billion yuan, an increase of 12.2 percent.

The investment in infrastructure was 1,899.7 billion yuan, an increase of 23.5 percent. The investment in high-tech industry increased by 22.6 percent, 13.4 percentage points faster than the total investment. The funds in place for investment in fixed assets in the first quarter were 10,608.1 billion yuan, down by 2.9 percent, 5.1 percentage points less than that in the first two months.

The total investment in newly-started projects was 6,201.5 billion yuan, a drop of 6.5 percent year on year. In March, investment in fixed assets (excluding rural households) grew by 0.87 percent month on month.

Online retailing grew fast

In the first quarter, the total retail sales of consumer goods reached 8,582.3 billion yuan, a year-on-year rise of 10.0 percent, 0.4 percentage point less than the whole of last year.

In the same quarter, the online retail sales reached 1,404.5 billion yuan, a year-on-year growth of 32.1 percent, among which the online retail sales of physical goods were 1,067.4 billion yuan, an increase of 25.8 percent, accounting for 12.4 percent of the total retail sales, a year-on-year increase of 1.8 percentage points.

Improved structure of foreign trade

The total value of imports and exports in the first quarter of 2017 was 6,198.6 billion yuan, an increase of 21.8 percent year on year, while that of the whole of last year went down by 0.9 percent.

The total value of exports was 3,326.8 billion yuan, up by 14.8 percent; the total value of imports was 2,871.8 billion yuan, an increase of 31.1 percent.

The trade balance was 454.9 billion yuan in surplus. The percentage of general trade increased. In the first quarter, the import and export of general trade increased by 23.2 percent, accounting for 56.2 percent of the total value of the imports and exports, an increase of 0.6 percentage point compared with the same period last year.

Consumer price increased mildly 

In the first quarter, the consumer price went up by 1.4 percent year on year, 0.7 percentage point less than the same period of last year.

Specifically, the price went up by 1.5 percent in the urban areas and 1.1 percent in the rural areas.

Meanwhile, the producer prices for industrial products went up by 7.4 percent year on year, while that of the same period last year went down by 4.8 percent. In March, the producer prices for industrial products went up by 7.6 percent year on year, 0.2 percentage point less than that in February.

In the first quarter, the purchasing price for industrial producers was up by 9.4 percent year on year; In March the price went up by 10.0 percent year on year, and 0.5 percent month on month.

Residents’ income grew 

In the first quarter of 2017, the national per capita disposable income was 7,184 yuan, a nominal growth of 8.5 percent year on year or a real growth of 7.0 percent after deducting price factors.

The growth rate of income was 0.1 percentage point higher than that of GDP. In terms of usual residence, the per capita disposable income of the urban residents was 9,986 yuan, a real growth of 6.3 percent after deducting price factors.

The per capita disposable income of the rural residents was 3,880 yuan, up by 7.2 percent in real terms. The per capita income of the urban residents was 2.57 times of that of the rural residents, 0.02 less than the same period last year.

The industrial structure continued to be optimized. In the first quarter, the value added of the tertiary industry accounted for 56.5 percent of GDP, 17.8 percentage points higher than that of the secondary industry. The demand structure was further improved. In the first quarter, the final consumption expenditure’s contribution to GDP was 77.2 percent.

New driving forces grew fast. In the first quarter, the value added of strategic and emerging industries went up by 10.3 percent year on year, 3.5 percentage points faster than that of the industries enterprises above designated size.

 

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