MNI China Press Digest June 13: Growth, More Saving, Shanghai

The following lists highlights from Chinese press reports on Monday:

• The Chinese economy likely rebounded in May as declines in industrial output and consumption narrowed, Yicai.com reported citing economists. Economists surveyed by Yicai expected industrial output fell 0.49% y/y in May, compared to the 2.9% decline in April, as power consumption by industrial enterprises in Shanghai recovered to 80.5% of the level same period last year while logistics also improved. A decline in consumption likely narrowed to a 7% y/y dip from the previous 11.1% decline, said Yicai citing economists. Fixed-asset investment may remain upbeat, growing about 7.2% amid policy pushes to boost the economy, the newspaper said citing economists. China is set to release its May economic indicators on Wednesday.
• Chinese savings deposits have increased significantly since the start of the pandemic more than two years ago, Yicai.com reported. In the first five months of this year, resident deposits increased by CNY7.86 trillion, up 50.6% y/y, compared to the CNY6.15 trillion in the same period of 2020, said Yicai citing data by the central bank. Corporate savings deposits are also rising with funds in their current accounts growing slower than those in their time deposits, as willingness to expand investment has not yet recovered amid high energy and raw material costs and weak demand, the newspaper said citing Wang Yunjin, senior researcher of Zhixin Investment Research Institute.
• Leading indicators signal that the resumption of work and production in Shanghai and the whole Yangtze River Delta Economic Zone has accelerated after a two-month Covid-19 lockdown, CCTV news reported. An estimated 96% of 9,472 industrial enterprises in Shanghai have reopened so far, with their production capacity reaching 69%, CCTV said. The production capacity of key integrated circuit companies in Shanghai is above 90%, while the production of automobiles reached 70,000 units in May, more than tripling from April, CCTV said.