China Business Digest: Official PMIs Get Back to Growth; Asymptomatic Cases Pose Next Challenge in China’s Coronavirus Battle

Starting today, Caixin Global will run a daily news digest to give readers an easy read about the top China business and finance stories, plus whatever is driving markets for the day.

China’s manufacturing and nonmanufacturing sectors have started growing again this month after suffering the worst February on record as more companies get back to business. Still, renewed fears about coronavirus carriers who show no symptoms have helped curb expectations for a quick economic recovery, even though the country has largely kept a lid on the epidemic.

— By Lin Jinbing

** ON THE CORONAVIRUS

The problem of asymptomatic cases

Such asymptomatic carriers have become one of the biggest risks in China’s battle against the pandemic because they may be spreading the virus without anyone — including themselves — knowing it. In East China’s Zhejiang province, authorities believe one coronavirus patient may have been infected by an asymptomatic passenger on a flight.

On Monday, Chinese Premier Li Keqiang again called for efforts to control asymptomatic cases in order to preserve the nation’s hard-won gains in controlling the virus. As of Monday, there were 1,541 asymptomatic cases under medical observation on the Chinese mainland, according to official data (link in Chinese).

Global jitters continue

The coronavirus continued to run rampant around the world, with 60,000-plus new cases reported outside China on Monday. As of noon Tuesday in Beijing, global infections surpassed 780,000, including more than 37,000 deaths, according to data compiled by Johns Hopkins University.

The pandemic is bound to deal a severe blow to the global economy and pull several major countries into recessions, multiple economists have said,

Cases surge in U.S. and Europe

The U.S. is still the country with the most coronavirus cases on record as it has accelerated testing. Cases topped 160,000 on Monday in the U.S., including more than 3,100 deaths, according to the Johns Hopkins University data. New York State is the worst-hit region.

Things aren’t good in Europe, either. Italy (link in Italian) has reported more than 100,000 infections, and Spain (link in Spanish) has confirmed over 80,000. The high fatality rates in both countries suggest their healthcare systems are straining under the pressure of incoming patients. Germany and France have each confirmed more than 66,000 and 45,000 infections.

Other virus news

• The pandemic has put more than 100 million jobs at risk in China. Check out our in-depth story here.

• In Wuhan, some people have had to wait for hours to collect the cremated remains of loved ones now that the virus-ravaged city has loosened quarantine restrictions.

• The U.N. has called for a $2.5 trillion coronavirus crisis package for developing countries.

 Read more
Caixin’s coverage of the new coronavirus

** TOP STORIES OF THE DAY

Official PMIs return to positive territory

China’s official manufacturing and nonmanufacturing purchasing managers indexes (PMIs) both returned to expansionary territory (link in Chinese) in March, as companies sped up efforts to get employees back to work amid the waning domestic outbreak.

The manufacturing PMI, a key gauge of factory activity, rebounded to 52 in March from a record low of 35.7 last month. China’s nonmanufacturing PMI shot back up to 52.3 from February’s record low of 29.6.

More monetary easing

China’s central bank cut the interest rate (link in Chinese) on seven-day reverse repurchase agreements on Monday, signaling that more monetary easing is on the way to aid the pandemic-ravaged economy.

Chinese stock markets edge up

The Chinese mainland’s benchmark Shanghai Composite Index closed up 0.1% on Tuesday, while the Shenzhen Component Index rose 0.6%. Hong Kong’s Hang Seng Index was up 1.9%.

While Japan’s Nikkei 225 Index closed down 0.9%, South Korea’s Kospi Index increased 2.2%.

** OTHER STORIES MAKING THE HEADLINES

In China

• China’s services imports fell (link in Chinese) 14.6% year-on-year in the first two months this year.

• Moody’s Investors Service Inc. changed its outlook to negative (link in Chinese) for six Chinese banks.

• Geely Automobile Holdings Ltd. said 2020 could be the most difficult year in its history as the pandemic disrupts its supply chain and production.

• Chinese super-app operator Meituan Dianping projected losses (link in Chinese) for this quarter.

• Electronics-maker TCL Technology Group Corp.’s net profit dropped (link in Chinese) 24.5% last year.

• Huawei Technologies Co. Ltd.’s net profit rose 5.6% last year.

• Online tutoring unicorn Yuanfudao bagged $1 billion (link in Chinese) in a new financing round led by Hillhouse Capital Group.

• A passenger train derailed in Central China, killing at least one and injuring more than 100.

• A wildfire in southwestern China has killed at least 19, most of them firefighters.

Elsewhere in the world

• The Netherlands is looking into why some masks it purchased from China are not suitable to be used by medical personnel in intensive care units.

• Chinese authorities have distanced themselves from a Shenzhen company that produced test kits that were later found in Spain to be unreliable.

• A Chinese maker of Covid-19 test kits sold to the Czech Republic stressed the importance of following usage instructions, after the media reported that its products were not working properly.

** AND FINALLY

Businesses and residents across China have come up with a variety of ways to show their gratitude to the medical professionals fighting the coronavirus in Hubei province, the epicenter of China’s outbreak.

Diners have hotpot at a restaurant in the Sichuan province capital of Chengdu. Photo: VCG

A hotpot association in the southwestern province of Sichuan has called for (link in Chinese) its member restaurants to offer free hotpot for a year to any medical worker from the province who went to Hubei to fight the epidemic.

** THE WEEK AHEAD

April 1: Caixin China manufacturing PMI

April 3: Caixin China services PMI

April 4: Qingming Festival

Contact reporter Lin Jinbing (jinbinglin@caixin.com) and Michael Bellart (michaelbellart@caixin.com)

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