MNI China Press Digest May 10: Steel Exports, Gold, SMEs

Highlights from Chinese press reports on Friday:

• China’s steel firms have recently increased exports in an “unsustainable manner” using high volumes and low prices, with the industry at risk of intensified trade frictions, Chen Yuqian, deputy secretary-general of the China Iron and Steel Association, told 21st Century Business Herald. Data from the National Bureau of Statistics showed steel export volumes increased 27% in the first four months of the year, while their value in yuan dropped 10.4%. Overall, China’s exporters will maintain growth over the next few months, due to the moderate expansion of global demand, experts interviewed by the Herald said.
• Investors should pay attention to risk and not blindly follow the rally in gold, said Guo Liyan, deputy director of the Institute of Economics at the Chinese Academy of Macroeconomics. He told Yicai bulk commodities will not always rise, while other experts said buyers need to behave rationally and protect themselves from volatility. China’s demand for gold was supported by yuan weakness and concerns over real estate and stock market fluctuations, said Wang Lixin, CEO of the World Gold Council China.
• The development index of small and medium-sized enterprises rose by 0.1 points to 89.4 in April, rebounding for two consecutive months, but remaining below the prosperity threshold of 100. The index, however, was higher than the same period in 2022 and 2023, Securities Daily reported citing data by China Association of Small and Medium Enterprises. The increase in April was mainly driven by the recovery of the service sector. The sub-index of social service rose significantly by 0.5 points, while industry and real estate fell by 0.1 points, the newspaper said.