Scanning across some reports from China, with the usual caveat of wariness over data (sources noted as links if you want more):
- Data from China Construction Machinery Association showed excavator producers reported record sales in March
- total excavator sales, an important indicator of the vitality of an economy as demand is usually backed by growth in mining and infrastructure development, hit a record high of 49,408 last month, up 11.6 percent year on year
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Also this:
- The Ministry of Industry and Information Technology has published data showing 94% domestic cement production capacity utilisation in the two-week period ending 10 April 2020, marking an end to coronavirus shutdowns in all provinces.
- Construction materials analyst Xu Xianchun said, "Demand in the construction industry has basically recovered to 2019's level, driven by new and resumed projects."
- Xinhua News Agency has reported that cement prices have also climbed on a month-by-month basis.
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- Some 1.1 trillion yuan ($155.8 billion) of these bonds were sold in the first quarter this year, up more than 50% year-on-year, according to data from the Ministry of Finance.
- Around 70% were to be used for infrastructure spending, more than double the percentage in the same period last year, according to a recent research note by Essence Securities Co. Ltd.
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Chinese authorities have rolled out stimulus, and it seems to be taking effect. A positive inout for China-proxy trades.
Also perhaps an indication that there is light at the end of this tunnel for economies elsewhere as governments around the globe do similar.
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I should note also that domestically focused service-related companies ( hospitality and education sectors for example) in China are not bouncing back nearly so well, these will take longer as social distancing measures slowly unwind.
