Retail Sales Rise, Production Growth Eases

123jump.com Staff
12 Sep, 2008
New York City

Retail sales in China in August surged 23.2% from a year ago according to the latest statistics from the National Bureau of Statistics. The sales of automobiles were up 19% and petroleum and related products sales were up 60%. Industrial production increased 12.8% from a year ago in August, reflecting a 1.9 percentage points drop from July and a 4.7 percentage points decline from the same period a year ago. Electric utility companies rose on the speculation of retail price hikes.

[R]6:00AM New York, 6:00PM Hong Kong- China industrial production rise eases to 12.8% in August but retail sales rise 23.2% in the month.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index slipped 0.80% or 35.82 to 19,352.90, and the China Enterprises Index of Hong Kong listed main-land shares, dipped 0.77% or 77.03 to 9,975.00. In Shanghai trading CSI 300 Index rose 0.28% or 5.72 to 2,077.85.

Daily turnover on main-board was HK$57.8 billion compared with HK$69.6 billion yesterday.

China Industrial Production Drops 12.8% in August

The National Bureau of Statistics reported on its Web site today that the country’s industrial production increased 12.8% from a year ago in August, reflecting a 1.9 percentage points drop from July and a 4.7 percentage points slump from the same period a year ago.

In the January-August period industrial output climbed 15.7% slower than 18.4% in the same period a year earlier.

China Retail Sales Rise 23.2% in August

The National Bureau of Statistics reported that domestic retail sales increased 23.2% to Rmb876.8 billion in August, which is 6.2 percentage points higher than the comparable period a year earlier, but 0.1 percentage points lower than the previous month.

However, retail sales in China in August surged 23.2% from a year ago according to the latest statistics from the National Bureau of Statistics. The sales of automobiles were up 19%, of grain and oil was up 23.1% and that of meat, poultry and eggs were 26.7%. Petroleum and related products sales were up 60%. For the period between January and August total retail sales of consumer goods were up 21.9%.

In the first eight months of the year, the cumulative retail sales gained 21.9% toRmb6.8 trillion from 15.7% gain in the same period a year ago.

In the period, urban consumption rose 23.9% to Rmb601.5 billion and rural residents spent 21.8% to Rmb275.3 billion.

Wholesale and retail sales advanced 23.2% to Rmb736 billion on the year, while the catering industry surged 26.3% to Rmb124.5 billion. Car sales increased 19% and oil products climbed 49.4%.

Gainers & Losers

Stocks in Hong Kong bucked the uptrend in the Asian market plagued by a bout of profit taking. However property and power utilities increased on speculation of a retail price hike of electricity.

China Construction Bank fell 2.1%, ICBC slipped 2% and Bank of China declined 2.1% after Goldman Sachs added the stock to its conviction sell list, down from a neutral rating. China Merchant Bank tumbled 2.3% after the lender announced that it has extended its deadline for fulfilling the $4.66 billion takeover of Wing Lung Bank by six weeks to October 27.

China Life plummeted 1.1%, but Ping An Insurance advanced 3.3%.

Property stocks rose. Sun Hung Kai Properties soared 4.6%, Cheung Kong Holdings edged up 1.5% and Henderson Land rallied 2.5%.

Power companies rose on the news that Beijing may increase retail electricity prices. Datang Power gained 3.4% and Huaneng Power rose 3.5%.