Central bank to boost support for economy

CHINA’S central bank pledged to increase support for the economy, seeking to reassure investors as financial markets take a hammering from a worsening growth outlook and threats of COVID lockdowns.

The People’s Bank of China “will step up the prudent monetary policy’s support to the real economy, especially for industries and small businesses hit hard by the pandemic,” it said yesterday. The bank said it will promote healthy and stable development of financial markets and provide a good monetary and financial environment. It reiterated it will keep liquidity reasonably ample.

Traders urged to rein in steel exports

CHINA’S steel association urged trading companies Monday not to ramp up exports to take advantage of soaring global prices, and instead prioritize catering to domestic demand.

Steel prices in Europe have surged after Russia’s war in Ukraine disrupted logistics, spurred sanctions and boosted energy prices, leading some producers to cut production. Tighter supply and China’s lower prices have created strong overseas demand, said Qu Xiuli, vice chairwoman of the China Iron and Steel Association.

Investment in road, waterway infrastructure rises

CHINA’S investment in road and waterway infrastructure rose in the first quarter of the year, data from the Ministry of Transport show.

Fixed-asset investment in road and waterway infrastructure jumped 11.4% year on year to 512 billion yuan (US$78.88 billion) during the period, according to the ministry. Northwest China’s Ningxia Hui Autonomous Region reported the fastest growth in this regard, with investment surging 135% from the previous year. Northeast China’s Liaoning Province saw the sharpest decline during the January-March period, with investment plunging 95.8% year on year, the data show.

Solar polysilicon giants plan major expansions

CHINESE producers of the key material for solar panels are planning major expansions as demand stays strong despite high prices, sending profits soaring.

Tongwei Co. said Monday that first-quarter net profit of 5.19 billion yuan (US$792 million), about six times higher than the same period last year. That came just a few days after Daqo New Energy Inc. beat estimates with revenue of US$1.28 billion in the quarter, 42% of which was net profit. The firms are top two in global polysilicon production.