China Economic Scan - Your daily update on the Chinese economy.
In this edition: China's CPI falls again in April, China's PPI also falls, China's food exports returned to growth in March, CITIC Bank set to acquire affiliate for $1.8 bln, Chinese stocks start the week down.
Top 5 headlines
China's CPI falls 1.5% in April
- China's consumer price index (CPI), fell 1.5% year on year in April 2009, according to the National Bureau of Statistics (NBS).
- Food prices (comprising 1/3 of the CPI) dropped 1.3%, dragged down by a 28.6% decline in pork prices as demand plummeted on swine flu fears. Non-food prices fell 1.5%.
- The index was down 0.2% from a month earlier, and the figure for January-April fell 0.8% from the same period last year.
China's producer prices down 6.6 pct in April
- China's producer price index (PPI), a major measure of inflation at the wholesale level, fell 6.6% in April year on year, according to the National Bureau of Statistics (NBS).
- The decline compared with a 6.0% year on year drop in March and 4.6% in Q1 2009.
- Prices of production materials fell 8.1% in April year on year, the NBS said, and PPI for January-April fell 5.1% over the same period last year.
China's food export back to growth in March
- China's food exports reached US$2.62 billion in March 2009, up 8.9% from a year earlier, presenting the first year-on-year growth in the last five months, said General Administration of Customs (GAC).
- Exports of fruit led growth, rising 23.5% in March, and Seafood was up 16.2% year on year.
- Food exports totaled US$7.17 billion Q1, down 5.5% year on year.
CITIC Bank to acquire affiliate for $1.8b
- China CITIC Bank will buy a 70.32% stake in investment holding company CITIC International Financial Holdings for HK$13.6 billion (US$1.75 billion).
- The acquisition will allow CITIC Bank to expand its branch network to other international finance centers and establish a stronger presence in Hong Kong
- CITIC Bank said the unaudited net asset value of CITIC International Financial Holdings was about HK$9.5 billion at the end of 2008. The remaining 29.68% of the company belongs to Spain's second-largest bank BBVA.
China shares fall as investors cash in on gains
- Chinese stocks began the week down with the Hang Seng closing off -1.74% at 17,088, the Shanghai composite down -1.75% to 2,580, and the Shenzhen component falling -3.09% to 9,869.
- Banks led the decline, with Industrial & Commercial Bank of China, China's biggest commercial lender, -1.2% at 4.31 yuan. Bank of China -0.8% to 3.61 yuan while China Construction Bank -1.3% to 4.65 yuan.
- Coal miners also fell. China Shenhua Energy, the country's biggest coal producer, -2.8% to 26.11 yuan and Datong Coal Industry -6.3% to 32.46 yuan.
Financial Indicators:
| Metric | Value | Point change | % change |
| Hang Seng Index | 17,088 | -301.92 | -1.74% |
| Shanghai Composite | 2,580 | -45.9 | -1.75% |
| Shenzhen Component | 9,869 | -314.27 | -3.09% |
| TAIEX | 6,648 | 63.63 | 0.97% |
| CNY/USD | 6.8280 | 0.0015 | 0.02% |
Source: China Economic Scan
