Business

China travel spending during Lunar New Year holidays beats pre-COVID levels

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3 months ago

February 18, 2024

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China travel spending during Lunar New Year holidays beats pre-COVID levels

Tourism revenues in China during the eight-day Lunar New Year holidays that ended on Saturday surged by 47.3 per cent year-on-year thanks to a domestic travel boom, surpassing pre-COVID 2019 levels, official data showed on Sunday.

The data may offer temporary relief to policymakers as the world’s second-largest economy has been facing deflationary risks amid weak consumer demand, but the sustainability of the tourism boost remains uncertain.

During the holiday, known as the world’s largest annual migration, tourist attractions across the country witnessed massive crowds.

Domestic tourism spending jumped by 47.3pc to 632.7 billion yuan ($87.96bn) from the same holiday period in 2023, and were up 7.7pc from pre-COVID levels in 2019, according to the data by the Ministry of Culture and Tourism.

The number of domestic trips made during this year’s holiday grew by 34.3pc from a year ago, totalling 474 million which also exceeded the pre-pandemic levels of 2019 by 19pc. The holiday was seven days long in 2019.

Average spending per trip during the holiday this year reached 1,335 yuan, according to Reuters calculations based on the ministry data. This compared to 1,238 yuan per trip in 2019.

The holiday, also called the Spring Festival, is traditionally the time hundreds of millions of people return to their hometowns by air, train or road to reunion with family members.

For international travels, China witnessed around 13.52 million inbound and outbound trips during the holiday, growing by 2.8 times from the same holiday period last year, according to the National Immigration Administration.

The total entry-exit trips during the holiday returned to 90pc of the 2019 levels, according to the administration.

As film watching becomes one of the most popular entertainment activities during the holiday, the country’s box office revenue exceeded 8 billion yuan over the eight days, according to the China Film Administration, marking a new record high.

The economy has been grappling with multiple challenges including a property downturn and sluggish domestic demand since last year, forcing policymakers to cut interest rates to spur growth even as many developed economies were focused on taming stubbornly high inflation.

As authorities are striking a delicate balancing act to support the economy at a time when signs of deflationary pressures call for more stimulus measures, China’s central bank left a key policy rate unchanged on Sunday when rolling over maturing medium-term loans.

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Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

1 day ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

1 day ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

1 day ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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