MNI China Press Digest June 8: Cars, Exports, FX Reserves

Highlights from Chinese press reports on Thursday:

• Car buyers in China purchased 1.76 million units in May, up 30% y/y and 8% m/m, according to the Passenger Association of China. Within the data, the market for new energy vehicles also expanded, with buyers purchasing 557,000 units, up 55% y/y and 6% m/m. The public increased buying in May following government policies to boost consumption and the resumption of auto-shows, the association said. Major manufacturers sold 16,809 excavators in May, down 18.5% y/y, according to the China Construction Machinery Industry Association. Within the data, domestic buyers purchased 6,592, down 45.9% y/y, while exports totalled 10,217 units up 21% y/y. (Source: Yicai)
• China’s exports will remain depressed for some time following May’s decrease of 7.5%, as the global demand for electronic products remains sluggish, according to the 21st Century Herald. However automobile exporters will continue to sell strongly abroad, with the Passenger Association of China predicting exports will reach 4 million units by the end of 2023 to overtake Japan as the world's largest auto exporter. (Source: 21st Century Herald)
• China’s FX reserves will remain stable despite decreasing USD28.26 billion, or 0.88%, in May, according to the State Administration of Foreign Exchange (SAFE). The People’s Bank of China (PBOC) increased its gold holdings, plus the dollar index strengthening were cited as reasons for the reserve fall, the 21st Century Herald said. Looking forward, the economic recovery would maintain FX reserve stability of over USD3 trillion, which would deter speculators from shorting the currency, the paper said.