CBN丨Stronger consumer product expo shows recovery in China’s consumption

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要 

-The 2nd consumer product expo in Hainan offers golden opportunities to global companies and shows China’s stable rebound in consumption;

-Alibaba seeks dual-primary listing in Hong Kong. 

Here’s what you need to know about China in the past 24 hours 

中国经济要闻

The second China International Consumer Products Expo (CICPE) kicked off in Haikou, South China's Hainan Province on Monday, with strong participation from domestic and global corporations that underscores solid confidence in the robust recovery of China's consumer market.   

This year, the expo has drawn the participation of over 2,800 brands from 61 countries and regions. More than 600 new products are making their debut on the global stage at the expo, which runs until Saturday.

The expo offers a significant platform for global firms to explore the Chinese market, and it also helps channel Chinese products into the international market, thereby underpinning a sustained recovery in consumption, Wang Shouwen, China's international trade representative and vice commerce minister, said in remarks to the opening ceremony.

Notably, the latest Chinese tech products, green and smart home appliances, and other indigenous offerings, were on display at a 5,000-square-meter boutique pavilion for homegrown products.

China is the world's second-largest consumer market. Retail sales amounted to 44.1 trillion yuan in 2021, more than doubled compared with 2012. Although domestic consumption has been under pressure from sporadic Omicron outbreaks, a raft of pro-growth policy measures has turned out to be effectively reversing course. In June, official data showed that consumer spending staged a remarkable comeback, with retail sales growing 3.1 percent from the year before, reversing a 6.7 percent decline in May. 

Meanwhile, among the vibrant foreign attendance at this year's consumer expo were members of the Regional Comprehensive Economic Partnership (RCEP), including Japan, South Korea, Australia and Thailand. The international exhibition area totals 80,000 square meters this year, accounting for 80 percent of the total exhibition space. More than 1,000 overseas firms and over 1,600 brands have subscribed for the six-day expo. 

7月25日，第二届中国国际消费品博览会在海南省海口市正式开幕，为期六天，这是今年我国四大展会中首场在线下举办的展会。

在全球经济动荡下行、发展前景不明朗之际，消博会向国内外发出“合作、开放”的最强音。商务部副部长盛秋平表示，将努力把本届消博会打造成各国扩大贸易、加强合作、促进发展的重要平台，真诚欢迎各国企业共乘中国发展快车，共享中国市场机遇，为全球经济复苏提供新的增长动力。

本届消博会展区总面积达10万平方米，较上一届增长25%，来自全球60多个国家和地区、全国31个省区市和新疆生产建设兵团的2800多个品牌将在这里集中展示消费精品，参展品牌数量也翻了近一倍。

海南省商务厅厅长韩圣健透露，今年消博会共发出8万张证件，预计参展人员和观众会超过20万人次。

多个首届参展的头部品牌在本届消博会扩大参展规模，日本、韩国、新加坡、泰国等RCEP成员国参展面积比首届增长近20%。作为主宾国的法国，本届消博会共有14家知名企业展示法国时尚、美容产品、美食等领域的法式生活艺术。此外，还有50多家法国公司、近250个品牌前来参展。 

消博会为海外品牌开拓中国市场带来机遇的同时，也让越来越多的国货拥抱世界。今年特设的5000平米国货精品馆，集中展示了中国科技产品、绿色家电产品、文创产品、生物医药等方面的消费精品。为助力海南打造成为全球消费时尚展示引领地，第二届消博会更加聚焦新品首发首秀，预计将有200余个品牌发布600余个全新产品亮相本届消博会。

今年4月国务院办公厅印发了《关于进一步释放消费潜力促进消费持续恢复的意见》。“文件强调持续办好消博会，办好消博会将为国际企业开拓中国市场提供平台”，商务部党组副书记、国际贸易谈判代表(正部长级)兼副部长王受文指出，办好消博会将为消费持续恢复提供重要的助力，中国已经成为全球第二大商品消费市场，去年最终消费额达到62万亿元，今年尽管有疫情冲击，但我国坚定实施扩大内需战略，出台了扩大汽车消费绿色智能家电消费等一系列的政策措施，6月份全国的社零总额同比增长3.1%，实现由负转正，呈现了明显的复苏态势。

China's manufacturing exodus and the transfer of industrial chain is “a normal economic phenomenon”, which is the result of globalisation and market mechanism, the Ministry of Industry and Information Technology (MIIT) made the remark in response to questions raised about “foreign firms leaving China” at a Tuesday press conference. Although some foreign companies are diversifying their portfolios, the overall foreign investment in China has not slowed down, an official from the ministry said, adding that more than 70 percent of German companies and 60 percent of American companies still plan to double down on their investment in China. 

工信部回应“制造业外迁”：在7月26日举行的“推动制造业高质量发展夯实实体经济根基”新闻发布会上，工信部规划司副司长姚珺对“外资企业撤离中国”等说法作出专门回应。姚珺表示，制造业外迁、产业链转移是一种正常的经济现象，是全球化和市场机制发挥作用的结果。在经济全球化条件下，资本为降低生产成本、扩大市场份额，往往会对全球生产能力布局主动进行调整。虽然一些外资企业在推进多元化布局，但从总体来看，外商对华投资步伐并没有放慢。据介绍，超七成德资企业、超六成美资企业计划增加在华投资，我国依然是外商最佳的投资选择地。

The searing heat that has gripped China for over a month has boosted power generation to a record high in southern regions. China Southern Power Grid Co., the country’s second-largest operator supplying five provinces, said soaring demand lifted power generation to a record 223 gigawatts on Monday, 3 percent higher than last year’s peak load. China Meteorological Administration renewed severe heat warnings for regions in South and Southeastern China Tuesday morning, where temperatures were expected to exceed 40 degrees Celsius, with another eight regions to swelter in temperatures of 35 degrees Celsius and above. 

南方高温下电网负荷创新高：26日早晨，中央气象台继续发布高温橙色预警，预计江汉、江淮、江南、华南和四川东部、重庆、贵州东部以及新疆南疆盆地等地有35℃以上高温天气，其中浙江西南部、福建西北部、江西东部和南部、湖南东南部以及南疆盆地等地的部分地区最高气温可达40℃以上。25日15时23分，南方电网统调负荷达2.23亿千瓦，增幅2.99%，今年首创新高。14时27分，广东电网统调负荷今年第一次创历史新高，达到1.42亿千瓦，较去年最高负荷增长4.89%。

Update on COVID-19

疫情简报

A unit of Chinese drug giant Fosun Pharmaceutical Group secured the exclusive rights to market China’s first oral Covid-19 drug developed by Genuine Biotech. Shanghai Fosun Pharmaceutical Development will commercialise Azvudine in China, and advance the development of the medicine with Genuine Biotech, the parent company said in a statement late Monday. The announcement came on the same day that Genuine Biotech won conditional approval to Azvudine to treat adults who show mild Covid-19 symptoms in China.

首个国产新冠口服药获批：国家药监局官网7月25日消息，国家药监局根据《药品管理法》相关规定，按照药品特别审批程序，进行应急审评审批，附条件批准河南真实生物科技有限公司阿兹夫定片增加治疗新冠病毒肺炎适应症注册申请。获批当晚，上海复星医药宣布与河南真实生物科技有限公司达成战略合作，双方将联合开发并由控股子公司复星医药产业独家商业化阿兹夫定，合作领域包括新冠病毒、艾滋病治疗及预防领域。 

Moving on to regional highlights

区域观察

East China's Anhui Province saw its gross domestic product (GDP) grow 3 percent year on year in the first half of 2022, hitting 2.17 trillion yuan, according to local statistics authorities on Monday. The province also saw robust foreign trade growth during the period, with total import and export value reaching 367.58 billion yuan from January to June, up 13.7 percent year on year.

安徽上半年GDP达2.17万亿：7月25日，安徽省政府新闻办召开2022年上半年经济运行发布会。上半年，全省生产总值21764亿元，同比增长3%。进出口较快增长，上半年，货物进出口总额3675.8亿元人民币，同比增长13.7%。

The New International Land-Sea Trade Corridor saw goods transported jump 30 percent year-on-year in the first half of the year, according to data released at the 4th Western China International Fair for Investment and Trade in Southwest China's Chongqing on Sunday. The corridor, jointly built by provincial-level regions in western China and ASEAN members, with Chongqing serving as its operations centre, has expanded to linking with 319 ports in 107 countries and regions.

上半年陆海新通道货物运输量增长三成：24日，在重庆举行的2022陆海新通道国际合作论坛上的数据显示，今年上半年，陆海新通道运输货物21.6万标箱，同比增长30.3%，目的地已拓展至107个国家和地区的319个港口。陆海新通道是由我国西部省份与东盟国家合作打造的国际陆海贸易新通道，以重庆为运营中心，利用铁路、海运、公路等运输方式，向南通达世界各地。

Greater Bay Area, Greater future

新使命，大未来

The Hong Kong SAR government on Monday launched a public consultation for the Chief Executive’s 2022 Policy Address. Chief Executive John Lee Ka-chiu will deliver his first Policy Address on Oct 19. The government will conduct about 30 consultation sessions to listen to views and suggestions of the LegCo members, representatives of various sectors and members of the public. 

李家超10月将发布首份施政报告：香港特区政府25日发布消息，就行政长官2022年施政报告展开公众咨询工作，香港特区行政长官李家超当日表示，他将于10月19日发布上任后首份施政报告。据悉，特区政府将举办约30场咨询会，听取立法会议员、不同界别代表和市民对施政报告的意见和建议。

Next on industry and company news

产业及公司新闻

Alibaba said Tuesday that it would apply for a primary listing in Hong Kong, which is expected to be completed by the end of 2022, making the biggest e-commerce company in China a dual-primary listed company in New York and Hong Kong. CEO Daniel Zhang said Alibaba was pursuing another primary listing venue to foster a “wider and more diversified investor base.” Stocks in Alibaba in Hong Kong soared over 6 percent in early trading before closing up 4.8 percent today.

阿里申请香港纽约双重主要上市：7月26日，阿里巴巴集团发布公告称，董事会已授权集团管理层向香港联合交易所提交申请，将新增香港为主要上市地。在香港联交所完成审核程序后，阿里巴巴将在香港联交所主板及纽约证券交易所两地双重主要上市。公告显示，相关流程预计在2022年年底前完成。其后，阿里巴巴在美国挂牌的存托股和在香港上市的普通股将可以继续互相转换。投资者可继续选择以其中一种形式持有阿里巴巴股份。阿里巴巴集团董事会主席兼首席执行官张勇表示，已经收到董事会授权，可申请增加香港为主要上市地。今天阿里巴巴港股股价一度拉升超6%，收盘涨4.8%。

Chinese battery maker Gotion High-Tech Co. Ltd. raised $685 million after pricing its global depositary receipts (GDRs) in Switzerland at the bottom of a marketed range, marking the biggest deal since China expanded its stock connect program to link its equity markets with Switzerland and Germany. The company sold 22.8 million GDRs, which were priced at about a 3.5 percent discount to the closing price of Gotion’s A-shares on Monday.

国轩高科GDR募资近7亿美元：7月26日早间，锂电池巨头国轩高科发布了全球存托凭证(GDR)发行结果公告，募资总额约7亿美元，系中欧通规则落地以来GDR规模最大项目。本次发行的GDR数量为2283万份，所代表的基础证券A股股票为1.14亿股，发行规模近7亿美元，预计7月28日正式在瑞士证券交易所上市，发行折扣较启动当日A股收盘价折价约3.5%。

The retail oil price in China has undergone a third round of downward adjustment with gasoline falling 300 yuan per ton and diesel declining 290 yuan per ton, starting from midnight Tuesday, according to the National Development and Reform Commission today. Car owners will be able to save 12 yuan to fill a tank of fuel to a 50-litre private car.  

国内成品油价“三连跌”：7月26日，国家发改委发布消息称，自26日24时起，国内汽油价格下调300元/吨，柴油价格下调290元/吨。以油箱容量50L的普通私家车计算，车主们加满一箱油将少花12元左右。

China Energy Investment Corp said it will further ramp up domestic coal output to ensure supply in the country. The company produced 300 million tons of coal during the first half, up 6.2 percent year-on-year, while its power generation during the period rose to 526.4 billion kilowatt-hours, up 1 percent year-on-year, said a spokesperson for the company on Monday, adding that both revenue and net profit rose to record highs, without disclosing the actual figures.

国家能源集团上半年煤炭产量3亿吨：7月25日，国家能源集团新闻发言人张玉新在国家能源集团上半年重点工作情况新闻发布会上表示，上半年，国家能源集团煤炭产量3.0亿吨，同比增长6.2%，销量3.9亿吨；发电量5264亿千瓦时，同比增长1%；铁路运输量2.3亿吨；黄骅港务和天津港务两港装船量1.2亿吨；航运量1.1亿吨。主要经营指标量增质升，营业收入、利润总额、净利润再创历史最好水平。 

China's supply and marketing cooperatives reported steady sales growth in the first half of year, with total sales climbed 19.1 percent to top 2.94 trillion yuan, according to the All China Federation of Supply and Marketing Cooperatives on Monday. The turnover on the online sales platform established by the federation to help sell agricultural and sideline products jumped 33 percent over last year.

全国供销社上半年销售额近3万亿：据中华全国供销合作总社有关负责人介绍，上半年，全国供销合作社系统销售总额为29417.1亿元，同比增长19.1%。全国供销合作社系统农产品销售快速增长，上半年农产品销售额达12679.9亿元，同比增长25.3%。“832平台”将更多脱贫地区农产品卖向全国，上半年成交总额38.2亿元，同比增长33%，农产品上行能力持续增强。

Western Europe and Southeast Asia became the main destinations for China’s new energy vehicle (NEV) exports, accounting for nearly half of all cars sold overseas during the first six months this year, according to the China Passenger Car Association (CPCA) on Sunday. China exported 362,200 NEVs in the first half, more than double from the previous year, with Western European countries accounting for 34 percent of total exports, while sales to Southeast Asia made up 16 percent.

西欧、东南亚成新能源车出口主力市场：全国乘用车市场信息联席会秘书长崔东树撰文称，根据海关数据，上半年新能源乘用车整车合计出口36.22万台，同比增长113%。其中出口西欧市场12.27万台，占比34%；出口东南亚市场5.84万台，占比16%，西欧和东南亚合计占总量的一半。

Earnings reports express

财报速递

Shares in Shenzhen Kangtai Biological Products plunged as much as 9.8 percent on Monday after the Chinese Covid-19 vaccine maker said it is expecting first-half profit to tumble by up to 70 percent from the same period last year. Net profit for the first six months is expected to come in between 100 and 130 million yuan, the Shenzhen-based company said yesterday, as the demand for Covid jabs has fallen dramatically both at home and abroad since the second quarter.

康泰生物上半年业绩跳水：7月24日晚间，康泰生物发布2022年度业绩预告，由于新冠疫苗销量快速下滑，今年上半年预计实现净利润1亿元至1.3亿元，与上年同期的3.37亿元相比，将减少2.37亿元-2.07亿元，下降幅度为70.29%-61.37%。

Switching gears to financial news

金融市场消息

China’s structured deposits, which are deposits in which financial derivatives are embedded, slumped to their lowest point this year in June, as yield rates slide and the cost of borrowing drops, tempting investors to put their money elsewhere. China’s structured deposits tumbled 7.3 percent in June from the beginning of the year to 5.5 trillion yuan, according to the latest data from the People’s Bank of China.

结构性存款规模降至今年新低：人民银行最新数据显示，截至2022年6月末，中资大型银行人民币结构性存款余额为1.91万亿元，前值为2.07万亿元；中资中小型银行人民币结构性存款余额为3.65万亿元，前值为3.77万亿元。6月人民币结构性存款规模降至2022年以来最低水平。

Wrapping up with a quick look at the stock market

股市收盘情况

Chinese stocks closed higher on Tuesday, as property stocks rallied for a second day and tourism-related companies gained as China stepped up financial support for the sector. The benchmark Shanghai Composite rose 0.83 percent and the Shenzhen Component gained 0.95 percent. In Hong Kong, the Hang Seng closed 1.67 percent higher and the TECH index was up 1.37 percent.

周二A股三大指数震荡上扬。收盘沪指涨0.83%，深成指涨0.95%，创业板指涨0.31%。板块方面，培育钻石概念股、租售同权概念股、酒店及餐饮板块、房地产开发板块领涨；猴痘概念股、青蒿素概念股、新冠治疗概念股领跌。港股方面，恒生指数收涨1.67%，内房股领涨，恒生科技指数收涨1.37%。

Biz Word of the Day

财经词汇划重点

A global depositary receipt (GDR) is a type of bank certificate that represents shares in a foreign company, such that a foreign branch of an international bank then holds the shares. The shares themselves trade as domestic shares, but, globally, various bank branches offer the shares for sale.

全球存托凭证亦称 “国际存托凭证”，是存托凭证的一种，由股票发行公司委托国外投资银行在国外证券市场发行的对应其股票的一种证券。GDR在全球公开发行，是可在两个或更多金融市场上交易的股票或债券。