Chinese foreign trade grew in October and oil keeps moving forward

2021-11-07T18:08:10
Asian indices Oil opec
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Chinese foreign trade grew by 24% in October and oil keeps moving forward

Chinese foreign trade grew by 24% in October and oil keeps moving forward:The disappointing Chinese reports of the Evergrande crises pushed Asian indices back on Friday, while the Chinese administration reported positive data this morning, which could mean erasing the losses at tomorrow’s meeting. 

Evest follows all market updates in the following report.

Topics:

Chinese foreign trade volume grew by 24.3% in October

Oil rises given OPEC’s recent decisions

Goldman Sachs: Disagreements between OPEC and the United States Administration

China’s Evergrande sells two aircrafts to solve its financial crisis

China’s real estate sector is driving Asian shares to trade in the red zone

 

 

Chinese foreign trade volume grew by 24.3% in October

Chinese foreign trade volume grew by 24.3% on an annual basis in October 2021,
according to data released by the General Customs Administration of the People’s Republic of China on Sunday.

Meanwhile, Chinese exports grew by 27.1%, and imports – by 20.6%.

Trade growth compared to the same period last year was 31.9%, for 10 months of the year.

Meanwhile, exports rose by 32.3%, and imports – by 31.4%, according to the Ministry.

In October 2021, China imported 37.8 million tons of oil – 8.9 million barrels per day,
the lowest level since September 2018, according to Chinese customs statistics.

According to the General Customs Administration of the People’s Republic of China,
China imported 425 million tons of oil over 10 months this year, which is 7.2% lower on an annual basis.

Some monitors attributed the reduction of imports to rising world oil prices,

amid the global economy’s rejection of the restrictions caused by the Coronavirus pandemic,
which stimulates demand for fuel.

China’s petroleum products’ exports fell 31.8% in October from the same period last year to 3.95 million tons.

Imports of natural gas, including pipelines and liquefied natural gas, reached 9.38 million tons in October,
an increase of 24.6% over October 2020.

 

 

Oil rises given OPEC’s recent decisions”

Oil prices rose on Friday amid concerns that the market is at risk for deficiency ,

due to the reluctance of OPEC + countries to increase production above previously planned levels.

The Ministers of OPEC + countries unanimously decided on Thursday to continue implementing the plan that had been identified earlier.

OPEC + has been rising oil production by 400 thousand barrels per day on a monthly basis since July in
order to offset the 9.7 million barrels per day taken under the peak of the Covid-19 pandemic and meets monthly to assess the market situation.

The cost of Brent oil futures for January on the London Stock Exchange Futures is $81.78 per barrel, $1.24 (1.54%) higher than closing price on Thursday.

US West Texas crude futures for December rose during trading on the New York Mercantile Exchange by $1.53 (1.94%) to $80.34 per barrel.

According to global news agencies, OPEC + participants discussed the potential increase in oil production actively,
but the risks of falling oil demand, especially seasonal ones,
as well as the risks of the spread of the delta strain, became factors “against” such actions.

Goldman Sachs: Disagreements between OPEC and the United States Administration

Analysts at Goldman Sachs note that the oil market is insufficiently supplied, and an increase in its volatility should be expected.

“Our bullish outlook remains unchanged: The oil deficit continues,
and growth in demand will boost prices in the short term,” Goldman said in a review.

For her part, Energy Minister Jennifer Granholm told Bloomberg that U.S.

President Joe Biden, who had previously called for OPEC + to increase production,

is considering selling oil from the Strategic Petroleum Reserve (SPR).

As Goldman analysts have noted, “New, open disagreements between OPEC and the US presidential administration,
the threat of selling oil from the Strategic Petroleum Reserve,
as well as the resumption of negotiations with Iran, will increase the volatility of the oil market in the coming weeks,
especially given the decline in business at the end of the year.

 

 

China’s Evergrande sells two aircrafts to solve its financial crisis

The Wall Street Journal, citing well-informed sources,
reported that Chinese real estate developer Evergrande sold two private aircrafts last month to raise funds to repay bonds in dollars and avoid defaults.

Sources said that the company had received more than $50 million to purchase two Gulf Stream aircraft from American investors.

The deal was closed in October.

Evergrande paid interest on bonds due in 2024 of $ 45 million for a total of $ 951 million on October 29 – on the eve of the end of the 30-day grace period for these securities.

The company was supposed to make interest payments on this debt early on September 29.

A week ago, the company paid interest on other dollar bonds of $83.5 million.

Evergrande’s failure to pay interest on dollar bonds could mean a Chinese development company that could become the largest in Asia defaults.

Evergrande is one of the leading Chinese developers with the largest share of debt among developers worldwide – over $300 billion.

According to Bloomberg data, in total, the company will have to pay interest on the debt in the amount of about $600 million by the end of this year.

Earlier, the agency, citing well – informed sources, reported that the Chinese authorities had asked the company’s founder to send his own money to pay off the company’s debts.

According to Wall Street Journal sources, Evergrande owned 4 business aircrafts until recently and was waiting for another aircraft to be delivered by the manufacturer.

 China’s real estate sector is driving Asian shares to trade in the red zone

Most stock markets in the Asia-Pacific region (APR) declined in Friday’s trading amid renewed concerns about the situation in the Chinese real estate sector.

Japan’s Nikkei index fell 0.7%.  The Hong Kong Hang Seng index fell by 1%, while the Shanghai Composite index fell by 0.4%.

South Korea’s Kospi index fell by 0.6%. The Australian S & P/ASX 200 index rose by 0.4%.

Concerns about the situation in the Chinese real estate sector increased ,after the developer Kaisa Group said,
that trading of its stocks and securities for its three Hong Kong divisions had been suspended due to the fact that the company had failed payments to investors.

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