MNI China Press Digest April 12: CPI, Upgrades, Hainan

Highlights from Chinese press reports on Friday:

• China’s March CPI print of 0.1% y/y, down 0.6% from February, shows consumption remains in the post-epidemic recovery stage, according to Luo Zhiheng, chief economist of Guangdong Securities. Luo noted tourism increased by 10.1% y/y but communication tools and transportation decreased by -2.1% and -5.2%, showing current consumption of mobile phones, cars and other commodities remains weak. Wu Ge, chief economist of Changjiang Securities said, given recent data, authorities need to implement policies to expand domestic demand and promote economic growth back to its potential. (Source: 21st Century Herald)
• Authorities in Hainan will break the province's economic reliance on real estate and construct a modern industrial system with high productivity, Liu Xiaoming, deputy secretary of the Hainan Provincial Party Committee told reporters at a recent press conference. The provincial government will focus on new economic drivers in tourism, modern services, and high-tech industries, and high-efficiency tropical agriculture, Liu added. The island will receive support to become a hub for high-end shopping, medical care, and education. (Source: 21st Century Business Herald)
• China’s annual demand for equipment investment and renewal in key areas totals more than CNY5 trillion, of which the replacement of automobiles and home appliances can be more than CNY1 trilion, Zhao Chenxin, deputy director of the National Development and Reform Commission said at a recent press conference. The government's action plan to increase equipment trade-ins and upgrades can promote consumption, stimulate investment, decrease carbon emissions and reduce safety hazards, Zhao added.