The RMB’s daily trading reference, or the central parity for onshore trading, has been stabilized ar
ound 6.89 per dollar for eight days from May 20, and market watchers said market-oriented depreciation pressure was losing steam.
Yi Gang, the central bank governor, has said several times that the PBOC has ceased dir
ect intervention in foreign exchange markets, and the performance of RMB is addressed mainly by market forces.
General Wei Fenghe, China’s defense minister, will attend the coming Shangri-La Dialogue set to
open on Friday in Singapore according to Senior Colonel Wu Qian, spokesman for the Defense Ministry.
Wei’s attendance will be the second time China has sent its defense mini
ster to the international security forum held by the London-based think tank International Insti
tute for Strategic Studies. The first time was in 2011, when General Liang Guanglie took part and delivered a speech.
pening-up in China’s services sector, together with high-tech development supported by artificial intelligence, will help lift Chinese
economic growth from 6.3 percent to around 7 percent by 2035, said Zhu Min, a former deputy managing director at the IMF.
“Market-oriented reform and opening-up will improve productivity in the service sector, whi
ch is an important thing that China is focusing on to stabilize economic growth,” Zhu said.
Chen Yulu, a vice-governor of the PBOC, also supported a “full-scale” opening of the financial sector. In the future, foreign invest
ors are welcome to conduct all forms of financial business in China, excepting those being named on a nega
tive list, and authorities are researching a new regulatory system, Chen said at the forum on Saturday.
dumping and anti-subsidy measures, have largely reduced China’s export to the country.
Photovoltaic modules export to India also slumped 24.4 percent to 1.81 GW in the first quarter, as the Indian government ordere
d that all photovoltaic modules for government and central public utilities projects should be 100 percent India-made.
China’s top five photovoltaic modules exporters in value in the first quarter were Jinko Solar, J
A Solar, Trina Solar, Canadian Solar, and Longi, taking up 12.8, 8.6, 8.3, 7.4, and 6.7 percent, resp
ectively, of total export value. Export volume of the top 12 exporters took up 65 percent of total export, added the report.
The report projected that China’s photovoltaic modules capacity will furth
er expand 8.5 percent to 83 GW this year, with nearly 50 GW exported to the overseas market.
ople. However, neither the US nor China can expect to keep, much less get back, low-wage, low-skilled manufacturing jobs.
Many people have the impression that Chinese goods are dominant in US markets. That is true only in a few highly com
petitive, low-profit sectors. According to US Commerce Department data, China has more than 50 percent of the
US market in such items as umbrellas, toys, prepared feathers, footwear, straw products, and bedding.
Chinese exporters have from 20 to 50 percent of the US market in ot
her low-value-added markets, plus electrical machinery and equipment, mechanical app
liances, and iron and steel. In most other categories, China has less than 20 percent of the US market.
China also assembles and then exports a lot of phones, computers and other gad
gets to the US. But, most of the profits and wages go to Japanese or South Korean componen
Wang Yang, an analyst with Soochow Securities based in Suzhou, Jia
ngsu province, said that apart from the economic recovery underpinned by su
pportive policies, cyclical factors also imply that earnings growth will continue to recover in the rest of the year.
According to Wang, the current profit cycle of A-share companies started from 2
016 and should end with recovery this year, as the cycles usually last for 12 to 14 quarters.
This year’s gradual recovery in earnings growth could help the A-share market to withstan
d external uncertainties, said Yan Xiang, an analyst with Shenzhen-based Guosen Securities.
“It is quite different from 2018 when earnings growth of most companies deteriorated. Earn
ings growth, a determinant of the market trend, is likely to be on the recovery path,” Yan said in a note.