Fitch: Strong Holiday Sales in China..........>

CHINA: Fitch: Strong Holiday Sales in China Boosted by Coupons, Data Choice

- Figures showing a strong rebound in retail sales in China over the extended

Labour Day holiday may not be a good indicator of a recovery in consumer

sentiment, Fitch Ratings says. This is because the sales boom, especially for

online sales, could be the result of massive retailer promotions and cash

coupons distributed by local governments. In addition, the holiday this year was

one day longer than in 2019, which distorted yoy sales growth. Besides, the data

from China's Ministry of Commerce (MOFCOM) is from selected companies, which may

not be representative of the entire consumer sector. Key companies' car sales,

for example, increased sharply in certain cities, according to MOFCOM, while

data from the China Passenger Car Association show a 7% yoy decline in national

average daily auto sales in the first week of May.

- Link: https://tinyurl.com/ycx2swk2