Tag Archives: Retail sales

Huizhou boosts investment to offset falling output

Huizhou’s economy is continuing to slow amid a tough external environment, but rising investment levels are cushioning the economy, according to official data.

Industrial output continued to fall from January to August , with growth among enterprises above designated size rising only 0.7% YoY, down 1.5 percentage points from the Jan-Jul period. Electronics and petrochemicals, the two big guns, were down -1.6% and -4.5%, respectively, which was slower than the Jan-Jul period by 1.1 and 2.5 percentage points, respectively.

However, fixed-asset investment growth accelerated. From January to August , it shot up 15.1% , 2.7 percentage points faster than the Jan-Jul period, and 12.1 percentage points faster YoY. Industrial investment grew 15.8%; infrastructure investment jumped 24.5%; and real estate investment jumped 20.4%.

Total retail sales rose 7.6% , but this was down 1 percentage point from the first half of the year. Vehicle sales were a major drag, falling -3.2% , down 4.3 percentage points from the first half of the year. Home appliances were up 7.9% , but this was a steep drop of 13 percentage points from the first half.

Guangzhou: upgrading continues

The provincial capital is continuing to restructure its economy amid a slowdown in foreign trade, which is having a knock-on effect on the manufacturing sector. Services are growing robustly, investment is surging, and retail sales are holding steady, latest official economic data shows.

Continue reading Guangzhou: upgrading continues

Guangdong GDP up 6.5%

Following the release last week of national data showing the country’s economy had slowed to its lowest growth rate in three decades (6.2%), the National Bureau of Statistics has released data showing Guangdong’s GDP grew faster than the national average, up 6.5% at RMB5.05 trillion. 

Highlights of the data, according to the provincial government, were:

Continue reading Guangdong GDP up 6.5%

Guangdong consumers powering ahead online

The “Double 11” shopping festival in November is not the only time of the year that Chinese consumers go crazy on their smartphones. They can’t wait that long, and so the “6.18 Shopping Festival”, a mid-year sale extravaganza of online shopping platforms like Tmall, Taobao, JD.com, and Vipshop, was created for them. 

The festival took place this year on – surprise, surprise – June 18th. (Actually, yesterday was when it finished. It began on June 1.) What was most notable this time around was the relative strength of Guangdong participants, who did their province proud. Not only did Guangdong end up boasting the largest number of brands selling more than RMB100 million over the festival, but Guangdong consumers also overtook their peers from other provinces atop the buying boards.

“Technology-empowered quality consumption prevailed as the overall trend of this year’s festival,” a senior official was quoted by local media as saying, pointing out that both online and offline sales saw a significant increase. No exact figures were given, because this is a private party, and so the national statistics bureau doesn’t know. JD.com said it saw good business, booking RMB179.5 billion in sales, up 12.5%. The much-smaller Suning said sales jumped 171% – both online and offline. Alibaba was being coy, saying Tmall saw more than 100 brands’ sales surpass their numbers for the Singles Day shopping festival, with some seeing 40 times growth.

The market for tech gadgets saw the most rapid growth. This was where Guangdong’s “smart-manufacturing” companies excelled, standing out on the list of companies that reached RMB100 million sales over the festival. The top-selling stars included Midea, Huawei, Honor, Gree, Vivo, OPPO, and TCL. It only took three minutes for Midea and Gree to reach RMB100 million sales on JD.com. 

Guangdong brands also led the sales of digital appliances on Vipshop, with an increase of 70% compared with last year. 

Communications devices – primarily smartphones – continued to power ahead, reflecting the strength that the province has been showing in its official statistics so far this year. Guangdong Statistics Bureau data showed this segment up 15.1% in the first five months of this year. 

The integration of online shopping and offline service has also become more noteworthy. Online fresh food sales are becoming increasingly popular in Guangdong with the development of spin offs from online shopping giants like Alibaba and JD.com, as well as supermarkets like Yonghui Superstores. 

Guangdong residents continue to show the rest of the country how it’s done. By June 18th, Guangdong-based sales were No.1 on both JD and Vipshop. The GBA cities were star performers, but more interestingly, growth came fastest in the rural areas. 

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Rising incomes boost Guangdong’s finances

Provincial data on public and private finances paint a picture of frugal, hardworking people who are also not afraid to spend. The US-China trade war might take a wrecking ball to the economy in the coming months, but if it does, there are good reasons to believe that Guangdong will have a better chance at getting through it than most other economies facing similar external pressure.

Indeed, despite having to turn on the infrastructure taps from January to April, which resulted in a 14.8% jump in government expenditures, Guangdong still saw government revenue grow 5.8% to RMB445 billion.

And while outstanding loan balances at the banks jumped in the same period, 16.4% to RMB15.4 trillion, deposits also grew 9.9% RMB 21.8 trillion. This was driven by household deposits, which increased 15.3%.

Savers are not panicking. Retail sales continue to grow at above-GDP rates. Meanwhile, consumer prices rose by 2.3%, an increase of 0.1 percentage points over the first quarter and just the kind of number policymakers like to see. Producer prices remain under pressure, rising by 1.0%, but that is at least an increase of 0.1 percentage points over the first quarter.