China’s May imports from North Korea hit third lowest on record
Beijing blue chips end at 18-month high
BEIJING, June 24, (RTRS): China’s imports of North Korean goods in May fell by more than 30 percent from a year ago, data showed on Friday, the latest sign that China’s ban on coal purchases from the isolated country continues to curb trade between the two neighbours.
The world’s second-largest economy bought goods worth $123.8 million in May from North Korea, down 31 percent from a year ago and third lowest on records going back to June 2014, according to data from China’s General Administration of Customs.
The total was up from $99.3 million in April, the lowest on record. The second weakest total was registered in March.
The data indicates that China’s halt of North Korean coal imports on Feb 26 has crimped Pyongyang’s ability to raise hard currency through exports.
China’s iron ore imports from North Korea in May, at 233,508 tonnes and worth $13.4 million accounted for 11 percent of the total for the month.
Chinese exports to North Korea in May rose to $319.8 million, up 11 percent from April and a third higher than in the same month last year.
The data came a day after the United States pressed China again to exert more economic and diplomatic pressure on North Korea to help rein in its nuclear and missile programs during a round of high-level talks in Washington.
On Friday, a US official told Reuters that North Korea had carried out another test of a rocket engine believed to be part of its programme to develop an intercontinental ballistic missile.
Meanwhile, China stocks rose on Friday to end the week higher, on signs tight liquidity is easing and with sentiment lifted by MSCI’s decision to include mainland shares in a key index.
The blue-chip CSI300 index settled up 0.9 percent at 3,622.88 points, the highest close in 18 months, while the Shanghai Composite Index added 0.3 percent to 3,157.87 points.
For the week, CSI300 jumped 3.0 percent, posting the best week in 2017, while the SSEC rose 1.1 percent.
The US index provider said on Tuesday it would add 222 Chinalisted stocks, many of them bigcap blue chips, to its Emerging Markets Index (EMI), tracked by around $1.6 trillion, with the
inclusion process starting June 2018.
Analysts expected the inclusion to be a significant boost to China’s stock market in the long run and pave the way for global capital inflows into China’s A-shares.
Tight liquidity conditions have also eased, traders said, with the government recently loosening its tight grip on credit regulations.
The central bank also moved to maintain stability in the financial markets at particular times, including providing funds via open market operations ahead of the mid-year macro prudential assessment.
On Thursday, shares related to Chinese conglomerates Dalian
Wanda Group and Fosun slumped on news the banking regulator had ordered checks on offshore loans to several acquisitive Chinese firms which have been snapping up assets overseas, including Wanda, Fosun, HNA Group and Zhejiang Luosen.
These shares, including Wanda Film Holding, and Fosun Pharmaceutical stabilised on Friday, after the companies said operations were normal, while Chinese lender ICBC said the loan assessment was routine.
For the week, banking and consumers stocks were among the top performing sectors, as they would represent the biggest weightings of China stocks in the MSCI EMI.