Archive for ‘reopened’

28/04/2020

China’s April factory activity seen expanding as lockdowns ease – Reuters poll

BEIJING (Reuters) – China’s factory activity likely rose for a second straight month in April as more businesses re-opened from strict lockdowns implemented to contain the coronavirus outbreak, which has now paralysed the global economy.

The official manufacturing Purchasing Manager’s Index (PMI), due for release on Thursday, is forecast to fall to 51 in April, from 52 in March, according to the median forecast of 32 economists polled by Reuters. A reading above the 50-point mark indicates an expansion in activity.

While the forecast PMI would show a slight moderation in China’s factory activity growth, it would be a stark contrast to recent PMIs in other economies, which plummeted to previously unimaginable lows.

That global slump, caused by heavy government-ordered lockdowns, as well as the cautious resumption of business in China, suggests any recovery in the world’s second-largest economy is likely to be some way off.

“The recovery so far has been led by a bounce-back in production, however, the growth bottleneck has decisively shifted to the demand side, as global growth has weakened and consumption recovery has lagged amid continued social distancing,” Morgan Stanley said in a note.

“The expected slump in external demand has likely capped further recovery in industrial production.”

The latest official data showed 84% of mid-sized and small business had reopened as of April 15, compared with 71.7% on March 24.

Hobbled by the coronavirus, China’s economy shrank 6.8% in the first quarter from a year earlier, the first contraction since current quarterly records began.

That has left Chinese manufacturers with reduced export orders and a logistics logjam, as many exporters grapple with rising inventory, high costs and falling profits. Some have let workers go as part of the cost-cutting efforts.

A China-based brokerage Zhongtai Securities estimated that the country’s real unemployment rate, measured using international standards, could exceed 20%, equal to more than 70 million job losses and much higher than March’s official reading of 5.9%.

Sheng Laiyun, deputy head at the statistics bureau, said on Sunday migrant workers and college graduates are facing increasing pressures to secure jobs, while official jobless surveys show nearly 20% of employed workers not working in March.

Chinese authorities have rolled out more support to revive the economy. The People’s Bank of China earlier in April cut the amount of cash banks must hold as reserves and reduced the interest rate on lenders’ excess reserves.

Source: Reuters

06/04/2020

China Focus: Government offers bailout, voucher programs to stimulate restaurant industry

SHENYANG, April 5 (Xinhua) — Huo Chunlei, who runs a hotpot restaurant in Shenyang, capital of northeast China’s Liaoning Province, said he did not lay off any of his staff, although the restaurant is having difficulties for reopening after two months of closure in China’s nationwide measures of coronavirus control.

A few weeks after Chinese provincial-regions with low risk of the novel coronavirus gradually resumed work and production, shops and eateries have reopened, and roads become bustling again, as hundreds of millions of people confined at home for weeks in compliance with epidemic prevention rules get back to a normal life.

Huo’s restaurant has been in operation for a week. Only half of the tables are filled at dinnertime. The revenue is barely enough to cover the expenses of the house rent and employee wages, he said.

However, he said his business is able to survive because of the government’s bailout policies. For example, the approval of deferred payment of social insurance premiums for his employees alone can save him 80,000 yuan (about 11,250 U.S. dollars) a month.

“The staff are willing to stay, as we are all confident in tiding over the difficulties together,” he said.

The local governments at all levels have rolled out a slew of measures to shore up the catering business, including cutting taxes, reducing house rent as well as water and electricity fees.

The governments in Liaoning, Shandong, Jiangsu and Zhejiang provinces have issued coupons with a value ranging from 10 million yuan to 100 million yuan to encourage people to spend on dining out.

Before the production resumption, there were some consumer councils’ surveys showing that consumers had suppressed consumption desire for dining out and shopping as well as going to movie theaters, gymnasiums and tourist spots after the epidemic crisis ends.

“The so-called retaliatory consumption has not yet appeared in the catering industry, as people are still wary about the infection risk, but there will be a gradual recovery growth,” said Chen Heng, executive director of Hainan Hotel and Catering Industry Association in the southernmost Chinese province of Hainan.

“Before reopening, we increased the distances between tables, but with reduced tables, there are still many empty tables at dinner time. My restaurant used to have all seats full and even queues,” said Huo.

Like Huo, Lin Lunheng, founder of the Fuzhou Super Dinner Co. Ltd. in southeast China’s Fujian Province, is also worried about business.

“Although the chain stores have reopened, revenues have decreased by 70 percent compared with that before the epidemic. This is a big blow to restaurants,” said Lin.

The Italian style chain restaurant has offered e-coupons to draw customers.

As the spring weather is getting more and more pleasant, consumers’ desire for dining out and travel is growing. According to a survey report jointly released by the China Travel Academy and Trip.com Group on March 19, Chinese are longing for tours across the country, with Yunnan, Hainan and Shanghai among the top destinations.

Source: Xinhua

30/03/2020

Drop in China’s new coronavirus cases; none in Wuhan for sixth day

WUHAN, China (Reuters) – China reported a drop in new coronavirus infections for a fourth day as drastic curbs on international travellers reined in the number of imported cases, while policymakers turned their efforts to healing the world’s second-largest economy.

The city of Wuhan, at the centre of the outbreak, reported no new cases for a sixth day, as businesses reopened and residents set about reclaiming a more normal life after a lockdown for almost two months.

Smartly turned out staff waited in masks and gloves to greet customers at entrances to the newly-reopened Wuhan International Plaza, home to boutiques of luxury brands such as Cartier and Louis Vuitton.

“The Wuhan International Plaza is very representative (of the city),” said Zhang Yu, 29. “So its reopening really makes me feel this city is coming back to life.”

Sunday’s figure of 31 new cases, including one locally transmitted infection, was down from 45 the previous day, the National Health Commission said.

As infections fall, policymakers are scrambling to revitalise an economy nearly paralysed by months-long curbs to control the spread of the flu-like disease.

On Monday, the central bank unexpectedly cut the interest rate on reverse repurchase agreements by 20 basis points, the largest in nearly five years.

The government is pushing businesses and factories to reopen, as it rolls out fiscal and monetary stimulus to spur recovery from what is feared to be an outright economic contraction in the quarter to March.

China’s exports and imports could worsen as the pandemic spreads, depressing demand both at home and abroad, Xin Guobin, the vice minister of industry and information technology, said on Monday.

The country has extended loans of 200 billion yuan (22.75 billion pounds) to 5,000 businesses, from 300 billion allocated to help companies as they resume work, Xin said.

Authorities in Ningbo said they would encourage national banks to offer preferential credit of up to 100 billion yuan to the eastern port city’s larger export firms. The city government will subsidize such loans, it said in a notice.

VIRUS CONCERNS

While new infections have fallen sharply from February’s peak, authorities worry about a second wave triggered by returning Chinese, many of them students.

China cut international flights massively from Sunday for an indefinite period, after it began denying entry to almost all foreigners a day earlier.

Average daily arrivals at airports this week are expected to be about 4,000, down from 25,000 last week, an official of the Civil Aviation Administration of China told a news conference in Beijing on Monday.

The return to work has also prompted concern about potential domestic infections, especially over carriers who exhibit no, or very mild, symptoms of the highly contagious virus.

Northwestern Gansu province reported a new case of a traveller from the central province of Hubei, who drove back with a virus-free health code, national health authorities said.

Hubei authorities say 4.6 million people in the province returned to work by Saturday, with 2.8 million of them heading for other parts of China.

Most of the departing migrant workers went to the southern provinces of Guangdong and Fujian, the eastern provinces of Zhejiang and Jiangsu, and northeast China.

In Hubei’s capital of Wuhan, more retail complexes and shopping streets reopened.

Electric carmaker Tesla Inc has also reopened a showroom in Wuhan, a company executive said on Weibo.

Shoppers queued 1-1/2 metres (5 ft) apart for temperature checks at Wuhan International Plaza, while flashing “green” mobile telephone codes attesting to a clean bill of health.

To be cleared to resume work, Wuhan residents have been asked to take nucleic acid tests twice.

“Being able to be healthy and leave the house, and meet other colleagues who are also healthy is a very happy thing,” said Wang Xueman, a cosmetics sales representative.

Source: Reuters

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