China World's Best Auto Market for Growth: Macquarie
Chinese automotive OEMs expressed surprise at how strong demand for passenger vehicles had been in the year so far but they were cautious about 2H 2013 due to weak economic performance overall, Macquarie Group says in its Global Autos in China report, after meeting a group of investors, automakers, dealers and industry experts. OEMs were proceeding with aggressive capacity expansion plans and dealers were generally upbeat compared with a year ago, with inventories in healthy condition. Macquarie argues that China offers the best growth potential in the world for automakers.
Exiting Hot Money May Prompt Reserve Requirements Easing
The recent spike in the Shanghai interbank offered rate (SHIBOR), the benchmark short-term interest rate in China, is mainly due to hot money leaving the country for the first time this year, CLSA argues in its latest Asia Morning Line report. This coincides with the central bank reining in social financing after sharp growth. It is worried that the Shibor spike will also drive up credit costs outside the banking system and lead to hot money exodus, which could push the central bank to ease the reserve requirements as early as Q3 2013, CLSA says.
Oil Demand Slows in May
China's apparent oil demand grew 3.1% year on year in May, slowing from 4.3% in April, according to Credit Suisse. Gasoline demand was up 12% year on year in May, faster than the 6% in April. Diesel demand dropped 2.5% year on year in May, bouncing back from the 3% decline in May. Crude oil imports totaled 5.6 million barrels a day in May, remaining flat compared with a month earlier and down 6% from a from a year earlier. HSBC says in its China Oil Demand May 2013 that gasoline will continue to boost China's oil demand while diesel growth will remain anemic.
Starting Salary 2,119 Yuan Per Month
The starting salary of college graduates this year is 2,119 yuan per month as the labor market faces the toughest ever conditions, according to Ganji.com, a site offering classifieds. Ganji didn't make comparison with historic figures, and said 77.4% of the graduates it surveyed planned to change their job in a year, suggesting a persisting high turnover. Close to 7 million college students are to graduate this summer, up 19% from a year earlier to the highest level in history.
Top 50 Retailers' Revenue Up 10.6% in May
Revenue from China's 50 largest retailers rose 10.6% year on year in May; the growth rate was 5.2 percentage points slower than in the previous month, according to Cncic.org. The growth of clothing sales revenue rebounded to 3% year on year in May while clothing sales volume rose 6% year on year as heavy discounts spurred sales.
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