China retail sales peak in November
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China has reported November was its strongest month of retail sales growth for the whole year.
While official government figures are usually greeted with a degree of scepticism by retail company executives, they are the only data available to build any sort of picture on the giant’s market’s trading fortunes.
According to the latest data, total retail sales climbed 10.8 per cent representing the fastest pace since December 2015 and exceeding expectations of a 10.1 per cent rise.
According to Reuters news agency, the figures were boosted by a higher than usual number of motor vehicle sales (During Alibaba’s 11.11 promotion, 100,000 new cars were sold) along with home appliances and cosmetics.
Luxury retailers like Kering Burberry and TIffany are among those reporting improved fortunes in the mainland this year after a three-year long decline.
“Part of that is due to the falling value of the yuan, which diminishes the appeal of spending abroad and encourages more domestic spending,” Wang Jianhui, an economist with Capital Securities in Beijing, told Reuters.
Questions & Answers
Q.What contributed to the higher than expected retail sales growth in November?
What contributed to the higher than expected retail sales growth in November?
The November retail sales figures were boosted by a higher than usual number of motor vehicle sales. Home appliances and cosmetics also contributed significantly to the overall growth shown in the data.
Q.Which specific luxury retailers are reportedly benefiting from improved fortunes in mainland China?
Which specific luxury retailers are reportedly benefiting from improved fortunes in mainland China?
Luxury retailers such as Kering, Burberry, and Tiffany are among those that have reported improved fortunes in mainland China this year. This comes after experiencing a three-year-long decline in the market.
Q.Why is domestic spending increasing in China, according to one expert?
Why is domestic spending increasing in China, according to one expert?
Economist Wang Jianhui suggests that the falling value of the yuan is making spending abroad less appealing. This encourages Chinese consumers to spend more domestically, contributing to the observed growth.
Q.What was the total percentage increase in China's retail sales for November?
What was the total percentage increase in China's retail sales for November?
According to the latest data, total retail sales in China climbed by 10.8 per cent in November. This figure exceeded expectations and represents the fastest pace of growth since December 2015.
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