MNI China Press Digest March 16: Trade, Growth, Yuan/HKD

Highlights from Chinese press reports on Thursday:

• Chinese wine industry insiders are planning trips to Australia in H1 this year on the expectation wine imports from Down Under will resume soon, according to the 21st Century Herald. Should imports be restarted, Australia’s absence from the market due to China's trade restrictions has led to increased market share for other new world wines, and therefore stiff competition can be expected, according to the paper. Domestic wines have grown in recent years, supported by Beijing’s rural revitalisation initiatives. Exporters will also need to adapt to a change in consumer tastes and consumption habits that have evolved lately. It is expected Australia-China business exchanges will take place at this month's Boao Forum for Asia.
• China’s economy is likely to grow by 4% in Q1 this year, according to economists who reviewed yesterday’s National Bureau of Statistics (NBS) data on January/February performance, according to the 21st Century Herald. The start of the year has seen an up-tick in the services industry as consumers increased spending after the lifting of covid restrictions. However, consumption is still below pre-pandemic levels and a full rebound is dependent on policies that promote employment and increase income. The data showed exports and manufacturing lagging behind, and more policy support was needed to stabilise the recovery. Economists estimated annual property sales to grow by about 5% this year, with real estate investment remaining negative.
• Investors will be able to seamlessly interchange securities listed in both HKD and RMB later in H1 this year, offering a greater choice in trading currency and better liquidity for investors, according to Caixin. Plans submitted for regulatory approval by the Hong Kong Exchanges and Clearing Limited (HKEx) would improve Hong Kong’s position as a leading offshore yuan center, and supporting the process of yuan internationalization. It would also lead to increased liquidity and give firms more channels to obtain capital, according to the paper.