Dhaka, Bangladesh
China’s capital market to stay healthy in the long run

China’s capital market to stay healthy in the long run

BEIJING, May 18 (Xinhua): China’s solid economic fundamentals, increased appeal to foreign investors and strengthened market regulation will ensure a healthy capital market in the long term despite short-term fluctuations. As of May 16, China’s benchmark Shanghai Composite Index has plunged 8.96 percent from the peak level this year. Meanwhile, net capital outflow under the northbound trading of the “Stock Connect” programs between the Shanghai and Hong Kong exchanges and the Shenzhen and Hong Kong exchanges totaled 30.71 billion yuan (about 4.46 billion U.S. dollars) and 18.08 billion yuan respectively since April, under the influence of fluctuated exchange rate of Chinese yuan and external uncertainty. The short-term fluctuations of the stock market partly mirrored investors’ concerns over the future, however, China’s capital market has a solid foundation to continue its sound and upward development. China will step up fiscal support to improve the supply chain of agricultural products in a bid to boost sales and increase farmers’ income, according to an official announcement. The central government will allocate a two-year fund of 200 million yuan (about 30 million U.S. dollars) to each provincial-level region that gets their respective plan approved, the Ministry of Finance (MOF) said in an online statement. The fund will be used to improve the weak links and key areas in the agricultural products supply chain, the statement said. Support should be given to building farm produce processing facilities and developing cold chain logistics, the statement said. Local authorities should conduct strict supervision over the use of the funds. The MOF and the Ministry of Commerce will assign third-party agencies to evaluate the progress and results, the statement said. China’s nominal effective exchange rate (EER) strengthened for five consecutive months up to April this year, data from the Bank for International Settlement (BIS) showed. According to BIS’s monthly data, the nominal EER has climbed 0.27 percent to 119.09 points in April, hitting a 10-month high. The real EER has dropped for two months from 124.51 points in February to 124.11 points in April, BIS data showed. The BIS EER indices cover 61 economies, including the United States, Australia, China and the Euro area countries. The most recent weights are based on trade in the 2011 to 2013 period, with 2010 as the indices’ base year. Nominal EER is calculated as geometric weighted averages of bilateral exchange rates, while real EERs are the same weighted averages of bilateral exchange rates adjusted by relative consumer prices. China has seen a constant fast growth in the civil aviation industry with the commercial transport fleet reaching 3,639 by the end of 2018, said statistics released by civil aviation authorities. The figure was 343 more than that at the end of 2017, said the latest civil aviation industry development statistical bulletin released by the Civil Aviation Administration of China (CAAC). In 2018, Chinese air carriers conducted a total of 11.53 million flight hours, an 8.9 percent year-on-year increase. Among them, 9.34 million flights hours were realized on China’s domestic air routes, an 8.4 percent year-on-year increase. More than 2.19 million flight hours were achieved on the international routes, a 10.8 percent year-on-year increase. China is now the world’s second-largest civil aviation market. It is expected to become the world’s largest by the mid-2020s, according to forecasts by the International Air Transport Association (IATA).

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