China’s retail and factory activity dropped sharply in April as widespread COVID-19 restrictions confined consumers and workers to their homes and disrupted supply chains. CSI 300 Index down -0.80%, CNYUSD down -0.01%
- Full or partial lockdowns were implemented in major cities across the country in March and April, hampering production and consumption and intensifying risks for some parts of the global economy heavily dependent on China.
- Retail sales in April plunged 11.1% from a year ago, the biggest fall since March 2020. A steeper decline than the earlier forecasts from a Reuters poll.
- Factory production dropped 2.9% from a year ago as anti-virus measures hampered supply chains and slowed down distribution.
- Fu Linghui, a spokesperson for China’s statistics, stated that the epidemic has a relatively significant impact on the economic operation, but this impact is short-term and external.
- Fixed asset investment, which China is depending on to boost the economy as exports lose steam, jumped 6.8% in the first four months, compared with an expected 7.0% jump.