MNI China Press Digest April 7:Prices, Consumption, E-commerce

MNI (BEIJING) - Highlights from Chinese press reports on Tuesday:

• Rising oil prices will accelerate the return of PPI growth to positive territory, but weak domestic demand and fierce competition in the midstream and downstream markets will limit the impact on inflation, wrote Guan Tao, global chief economist at BOC International in an article published on Yicai.com. If high oil prices suppress external demand, it may exacerbate the contradiction between strong supply and weak demand in China, dragging down the recovery of prices, said Guan. He didn’t rule out the possibility of U.S. stock market crash which would trigger a recession in the U.S. and even the global economy, resulting in an amplified drag by external demand.
• The average daily sales of key retail and catering enterprises nationwide increased by 2.4% year-on-year during the three-day Qingming Festival holiday, data by the Ministry of Commerce showed. Intercity travel trips increased by 15.1% y/y, while spending on hotel accommodation and theme park rose by 2.6% and 11.7%, with car rental orders rising by about 40%. (Source: 21st Century Business Herald)
• China will support eligible e-commerce companies to issue bonds for financing, and to list and raise funds domestically and overseas, according to a document issued by the Ministry of Commerce, and five other departments. Authorities will formulate guidelines for e-commerce companies to globalise, and encourage e-commerce firms to register trademarks, apply for patents, and establish their own brands overseas to improve compliance levels, the document said. (Source: Securities Daily)