China Retail Sales Up 21%, CPI Up 2.4%

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

November retail sales in China surged at 21%, but at a slower pace than in October and September. Year to date retail sales increased at 22%. Consumer prices in China rose at 2.4% rate in the month and year to date prices increased 6.3% from a year ago period. Stocks in Hong Kong dropped 5.5%.

[R]6:00AM New York, 6:00PM Hong Kong - China retail sales soar 21% to Rmb979 billion in November.[/R]

In Hong Kong trading Hang Seng Index fell 5.5% or 855.51 to 14,758.39, dropping 6.6% for the week, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, declined 6.8% or 574.69 to 7,911.76. In Shanghai trading CSI 300 Index shed 4.2% or 85.86 to 1,960.38.

Daily turnover on main-board dropped to HK$58.8 billion from HK$61.4 billion yesterday.

China''s Retail Sales Rises 21% in November

National Bureau of Statistics reported today that total retail sales jumped 20.8% to Rmb979 billion from a year earlier.

Retail sales of consumer goods in urban areas gained 20.3% to Rmb652 billion and retail sales at and below the county level advanced 21.8% to Rmb326.2 billion.

The NBS said retail sales and wholesale and retail trades, hotel and catering services, and other industries rose 20.6% to Rmb822 billion, 25.1% to Rmb137.6 billion and Rmb18.8 billion respectively.

In addition, sales above the designated size of wholesale and retail trades, divided by foodstuff rose 13.8%, clothing increased 24.1% and utilized commodities increased 12.5% respectively.

Total retail sales in the first 11 months of the year increased 21.9% to Rmb977 billion.

China CPI Soars 2.4% in November

Separately the statistics bureau said the consumer price index (CPI) increased 2.4% in November from the previous year of which urban area and rural area rose 2.2% and 2.9% respectively.

CPI however dropped 0.8% month-on-month in the period.

Price of tobacco, liquor and articles jumped 3.2% from the same period a year earlier, and the price of clothing fell 1.7% year-on-year. Medical care and personal articles gained 2% and the price of western medicines soared 1.2%. Transport and communications fell 0.7%, while recreational, educational and cultural articles fell 0.3% on the year.

In the January- November period cumulative CPI gained 6.3% from a year ago.

U.S. $14 billion Bailout Fails in Senate

Talks on the $14 billion bailout of U.S. carmakers collapsed yesterday after Senate Republicans insisted that the United Auto Workers union agree on sharp wage cuts in 2009 that will bring them in line with those paid to Japanese carmakers. However, UAW is willing to make wage cuts in 2011.

Talks centered on wage and benefit concessions from the UAW and on debt-restructuring by General Motors Corp., Ford Motor Co. and Chrysler LLC.

Gainers & Losers

Hong Kong stocks fell after the $14 billion U.S. auto industry bailout bill languished in the Senate.

Retailer Li & Fung dropped 12.7% after KB Toys Inc- one of its buyers- filed for bankruptcy yesterday. Foxconn International Holdings fell 14.2% on weaknesses on the U.S. market.

Carmakers also declined. Dongfeng Motor Group dipped 9.7%, Denway Motor plunged 13% and Brilliance China lost 9.2%.

Energy stocks plunged as oil prices fall back from $48 per barrel recorded yesterday.
PetroChina shed 7.6% and CNOOC declined 6.1%.

Realty stocks fell on expectations that residential properties will fall further. Sun Hung Kai Properties declined 7% and New World Development fell 11.1%.

China Eastern fell 2.8% and China Southern plummeted 7.5%.