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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

CHINA: 1/2: A quick look at the latest round of TomTom traffic reports out of
Beijing would confirm what we noted earlier this week. Monday is likely to be
the (shallow, well below average) peak in traffic activity in Beijing & Shanghai
for this week, while flow remains virtually non-existent in both Shenzhen &
Wuhan. This comes after the MOFCOM weekly press conference (Thursday) noted that
consumer spending may recover in Q2 and gather steam in H2, fuelled by pent-up
demand from the Q1 slowdown. MOFCOM suggested that consumer spending is expected
to bottom out in March after a tough February.
- In case you missed it late yesterday, Hubei Province pushed its business
restart date back to March 11. Commentary from the government via state media
pointed towards a broader push for businesses across the ratio to resume work as
soon as is possible. There was also a DJ piece which suggested that the recent
temporary exemption re: firms paying for employees' social security could free
up ~CNY500bn for businesses.
- Worth noting that Wenzhou has noted that it will partially re-open highways,
emerging from a state of full lock down (the city ~800km away from Wuhan).
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |