MNI China Press Digest Dec 4: Yuan, Tourism, Services Trade

Highlights from Chinese press reports on Thursday:

• The yuan is likely to continue its mild appreciation toward year-end after strengthening to 7.06 per U.S. dollar, its highest level since October 2024, according to Wu Chaoming, chief economist at Caitong Financial Holdings. Wu noted that “two-way fluctuations” will remain the norm, but the rising appeal of domestic assets has provided additional support for the currency. Wen Bin, chief economist at China Minsheng Bank, said that the yuan is expected to remain broadly stable at a reasonable and balanced level in December, and could even show a slightly stronger bias as corporate settlement demand gradually emerges. (Source: Securities Daily)
• China’s culture and tourism sector and the civil aviation industry are set to achieve deeper integration, forming a virtuous development cycle, according to a newly released government action plan. By 2027, tourism service levels will be significantly enhanced, international and domestic air-route networks will expand and integrated products and travel scenarios will become increasingly diverse, the plan states. The plan also highlights the development of low-altitude airspace for sightseeing activities, which is expected to become an important driver of transformation and upgrading within the cultural-tourism industry. In addition, the plan encourages airlines to introduce package tickets and multi-use passes that cover multiple tourist destinations. (Source: Securities Daily)
• China’s total services trade reached CNY6.5 trillion in the first 11 months of the year, an increase of 7.5% year-on-year. Exports totalled CNY2.9 trillion, up 14.3%, while imports rose 2.6% to CNY3.67 trillion. The services trade deficit narrowed to CNY766.3 billion, a reduction of CNY269.3 billion compared with the same period last year. Liu Xiangdong, deputy director of the Research Information Department at the China Center for International Economic Exchanges, said that China’s services trade has demonstrated steady growth, ongoing structural improvements and rising international competitiveness. Since the start of the year, policy measures to promote services trade and expand inbound tourism have delivered tangible results, with export growth significantly outpacing import growth and helping to narrow the services trade deficit further, he said. (Source: Securities Daily)