30/04/2020
– The last nine poverty-stricken county-level regions in east China’s Anhui Province have been removed from the country’s list of impoverished counties.
– This marks that all county-level regions in the Yangtze River Delta, consisting of Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, have been officially lifted out of poverty for the first time in history.
HEFEI, April 29 (Xinhua) — Sitting in front of his smartphone, Zhang Chuanfeng touts dried sweet potatoes to viewers on China’s popular video-sharing app Douyin, also known as TikTok.
“These are made from sweet potatoes I grew myself. They are sweet and have an excellent texture,” said Zhang while livestreaming in Tangjiahui Township of Jinzhai County in east China’s Anhui Province. Tucked away in the boundless Dabie Mountains, the township used to have the biggest poor population in the county.
Aerial photo taken on April 16, 2020 shows residential buildings in Dawan Village of Jinzhai County, east China’s Anhui Province. (Xinhua/Liu Junxi)
Jinzhai County is among the last nine county-level regions in Anhui that have been removed from the country’s list of impoverished counties, according to an announcement issued by the provincial government Wednesday. They are also the last group of county-level regions that bid farewell to poverty in the Yangtze River Delta.
E-COMMERCE
Zhang might seem like a typical e-commerce businessman reaping success in China’s booming livestreaming industry. But his road to success has been a lot bumpier: he suffers from dwarfism.
A little more than 1.4 meters tall, Zhang has a babyface, making him “look like a junior school student,” he said. But the man, 38, is the father of a nine-year-old boy.
For Zhang, life was tough before 2014. “Nobody wanted me because of my ‘disabilities’ when I went out to look for jobs,” he said. “I was turned down again and again.”
Zhang was put on the government’s poverty list in 2014 as China implemented targeted poverty-relief measures. With the help of local officials, he got a bank loan of 10,000 yuan (about 1,400 U.S. dollars) and bought 22 lambs. He tended the animals whole-heartedly and seized every opportunity to learn how to raise them more professionally.
Zhang Chuanfeng feeds his lambs in Zhufan Village of Jinzhai County, east China’s Anhui Province, April 26, 2017. (Xinhua/Zhang Duan)
Within a year, the number of his lambs expanded to hundreds. In 2016, Zhang’s earnings exceeded 100,000 yuan, more than enough for him to cast off poverty.
Riding on this success, Zhang began to seek new opportunities. He rented a shop and started selling products online to embrace an e-commerce strategy the local government introduced in 2017.
More than 100 online shops, including Zhang’s, in the county have helped more than 7,000 poverty-stricken households sell about 73 million yuan worth of local specialties since 2018. Zhang alone earned 500,000 yuan from a sales revenue of 5 million yuan last year.
A villager arranges local specialties for sale at Dawan Village of Jinzhai County, east China’s Anhui Province, April 17, 2020. (Xinhua/Liu Junxi)
WICKERWORK SUCCESS
About 100 km north of Jinzhai lies Funan, a place that used to be vulnerable to constant floods.
Zhang Chaoling, who lives by the Huaihe River in Funan County, had to flee her hometown at a young age due to floods, but has flourished on a willow plantation along the river later.
“The land is largely covered by silt following continual flooding in the past. It is an ideal place to plant willows and make wickerwork,” Zhang said.
Zhang left her hometown for Guangzhou in 1993 and found a job in a garment factory. A few years later, she founded a trading company with her husband in Guangzhou, selling wickerwork products from her hometown to other countries.
Zhang returned to her hometown and set up a wickerwork production base in 2011. Funan is famous for its delicate wickerwork. Skilled craftsmen traditionally use local willow as a raw material to weave products such as baskets, furniture and home decorations.
A villager arranges wickerwork products in Funan County, east China’s Anhui Province, April 15, 2020. (Photo by Zhou Mu/Xinhua)
“The flood is well controlled now. I remember the last huge flood came in 2007,” Zhang said.
Taking advantage of the fertile land along the Huaihe River, she plants over 130 hectares of willow trees and employs hundreds of locals mostly in their 50s and 60s.
“I can process 100 to 150 kg of willow twigs per day, from which I make around 80 yuan,” said Geng Shifen, who peels willow twigs with a clamp next to the plantation.
A total of 130,000 people are engaged in the wickerwork industry in Funan, creating an output of nearly 9 billion yuan in 2019, and helping 15,000 locals shake off poverty, local statistics showed.
POVERTY REDUCTION FEAT
The Anhui provincial government Wednesday announced that its last nine county-level regions including Jinzhai and Funan are removed from the country’s list of impoverished counties.
This marks that all 31 impoverished county-level regions in Anhui have shaken off poverty, echoing China’s efforts to eradicate absolute poverty by the end of 2020.
With the announcement, all county-level regions in the Yangtze River Delta have been officially lifted out of poverty for the first time in history.
A bus runs on a rural road in Jinzhai County, east China’s Anhui Province, April 17, 2020. (Xinhua/Liu Junxi)
Covering a 358,000-square-km expanse, the Yangtze River Delta, consisting of Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, is one of the most populated and economically dynamic areas in China, contributing one-fourth of the country’s GDP.
Anhui had a population of 63.65 million as of 2019, official data showed. The poor population in the province had decreased from 4.84 million in 2014 to 87,000 in 2019, and the poverty headcount ratio had been reduced from 9.1 percent to 0.16 percent during the period, according to the provincial poverty relief office.
A county can be removed from the list if its impoverished population drops to less than 2 percent, according to a national mechanism established in April 2016 to eliminate poverty in affected regions. The ratio can be loosened to 3 percent in the western region.
By the end of 2019, 5.51 million people in China were still living in poverty.
“We will continue our work to prevent people from returning to poverty, and help the remaining poor population shake off poverty by all means,” said Jiang Hong, director of the Anhui provincial poverty relief office.
Source: Xinhua
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29/04/2020
BEIJING/SHANGHAI (Reuters) – China’s biggest listed banks posted higher profits in the first quarter despite the wider impact of the coronavirus pandemic on the economy, though margins shrank.
The world’s largest commercial lender Industrial and Commercial Bank of China Ltd (ICBC) (601398.SS)(1398.HK) on Tuesday reported a 3.04% rise in first quarter net profit compared to a year earlier, while Bank of Communications Co Ltd (BoCom) (601328.SS)(3328.HK) reported a 1.8% rise.
Meanwhile at Agricultural Bank of China Ltd (AgBank) (1288.HK)(601288.SS) and China Construction Bank Ltd (CCB) (601939.SS)(0939.HK), first quarter net profit rose 4.79% and 5% respectively from the same period last year.
Following suit, Bank of China Ltd (BOC) (601988.SS) (3988.HK) posted on Wednesday a 3.17% rise in first-quarter net profit.
The growth came despite China’s economy posting the first quarterly contraction since at least 1992 due to the coronavirus pandemic. The government restricted people from travelling and going back to work to contain the spread of the virus, reducing revenue for companies and income for residents.
China’s largest banks are historically more resilient than their smaller kin, as they lend more to state-backed enterprises and have larger capital reserves.
However, despite this firmer base, net interest margins shrank at four of the five lenders, as loan prime rate reform and looser monetary policy weighed, said analysts.
AgBank did not report its net interest margin, the difference between what banks pay on deposits and earn on loans.
SOURED DEBT
ICBC, AgBank and CCB bucked the trend of the wider banking sector by posting steady non-performing loan (NPL) ratios.
The banking sector’s NPL ratio climbed in the first quarter to 2.04%, the banking and insurance regulator said, the highest level since the global financial crisis.
The rise came despite Chinese regulators moving to give banks leeway, allowing them to postpone some loan repayments until the end of June, as credit card and mortgage defaults surged.
About one-third of Chinese bank loans are to sectors including transport and retail that are significantly stressed by the pandemic, according to S&P Global.
“You can see generally from banks’ results that some lenders have reported falling asset quality, the NPL ratios have risen quite a lot,” said Richard Cao, an analyst at Guotai Junan International on Monday.
The largest banks are best placed to absorb such losses with a better ability to get financing and withstand a substantial volume of bad loans, S&P said in a research note in April.
Source: Reuters
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28/04/2020
SHANGHAI (Reuters) – Apple Inc’s (AAPL.O) discounts on the iPhone 11 in China and the release of a new low-price SE model have put the company in a better position than rivals to weather a coronavirus-related plunge in global smartphone demand.
While China, which accounts for roughly 15% of Apple’s revenue, appears to be a rare bright spot, investors will be keen to get a picture of global demand when the Cupertino, California-headquartered company reports second-quarter results on Thursday.
The iPhone maker has shut retail stores in the United States and Europe following the COVID-19 outbreak, and China is the only major market where it has been able to reopen all shops.
Consumer spending is expected to be muted as the pandemic has crippled economies and Apple, the world’s second-most valuable tech company, is better armed with the launch of its new price-conscious iPhone model, analysts said.
“Apple is better positioned than most to experience a rapid recovery in a post COVID world,” Evercore analyst Amit Daryanani said in a research note. “We see demand as pushed out, not canceled.”
He added that the launch of the $399 iPhone SE suggested that Apple’s supply chain was getting back on its feet after weeks of shutdown earlier this year.
Analysts expect Apple to report a 6% drop in revenue and an 11% fall in net income in its fiscal second quarter, according to Refinitiv data.
On the other hand, Chinese brands such as Oppo and Vivo who have steadily moved to offer high-end models to challenge iPhones, stand to lose marketshare as bargain hunters choose Apple.
Earlier this month, several online retailers in China slashed prices of the iPhone 11 by as much as 18% – a tactic Apple has used in the past to boost demand. And while initial social media reaction to the new iPhone SE was muted, analysts said they were seeing a pick up in demand.
The cheaper iPhone SE could tempt iPhone owners to opt for a newer device, something they might have otherwise delayed in a weak economy, said Nicole Peng, who tracks the smartphone sector at research firm Canalys.
“People want to avoid uncertainty in a downturn,” she said. “Having a brand like Apple that can showcase quality and make people less worried about breakdowns or after-sales service can bring in buyers.”
CHEAP IS GOOD
Early data suggests that the Chinese smartphone market is recovering rapidly in the aftermath of the virus, and Apple has emerged relatively unscathed.
Sales of iPhones in China jumped 21% last month from a year earlier and more than three fold from February, government data showed, meaning March-quarter sales in the country were likely to have slipped just 1%.
To be sure, a recovery in Chinese demand won’t offset sales lost in the United States and Europe. And the company is yet to launch a smartphone enabled with 5G wireless technology like those offered by Asian rivals, a disadvantage for Apple so far.
But those same expensive 5G models may not sell well in the current climate of frugality, analysts said.
“If there are no massive subsidies (in China), I doubt there will be many smartphone users who will be eager to upgrade to 5G,” said Linda Sui, who tracks the smartphone sector at research firm Strategy Analytics.
Sui expects iPhone shipments in 2020 to be down 2 percentage points at the most, versus double digit declines at Chinese firms.
Apple also has revenue from its services business to fall back on. It has leveraged its large iPhone customer base to boost services revenue from music, apps, gaming and video.
“Apple’s Services segment should remain resilient in today’s work-from-home environment, thereby demonstrating the durability of Apple’s model,” Cowen analyst Krish Sankar said.
Source: Reuters
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06/04/2020
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
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