CBN丨China’s NDRC vows to stabilise hog prices by cracking down on price gouging

21世纪经济报道 21财经APP 李莹亮

Hi everyone. I’m Stephanie LI.


Coming up on today’s program.


  • China’s economic planner intends to prevent a pork price surge, as the meat has climbed 28% at wholesale level since mid-March;

  • Chinese and U.S. senior officials hold video talk on economic issues.

Here’s what you need to know about China in the past 24 hours 


China’s top economic planner said it will take measures to prevent rapid pork-price increases when it deems appropriate, following steady gains the past three months for the key component of consumer inflation.

The National Development & Reform Commission (NDRC) will use tools such as adjusting reserves, it told representatives of pork and slaughter companies during a meeting, according to a statement released Monday. The NDRC also said it will work in coordination with other agencies to “severely punish illegal activities including fabrication and spread of information about rallying prices and price gouging.”

The commission asked major hog farmers to maintain normal output, sell hogs when they are ready for the market and not hoard them, according to the statement. The meeting concluded that irrational hoarding sentiment has been a major factor behind recent price increases for China’s most popular protein. 

The dominant hog futures contract jumped by the daily limit Monday to 22,755 yuan per ton, the highest level since May 2021. Last September, the contract had been as low as 13,500 yuan per ton. And the price of live pigs soared 11.6 percent at the end of June from the middle of the month to 18.30 yuan per kilogram, while pork price rallied 28 percent from mid-March through late June, according to government data. 

There’s been supply issues of late involving pork, which has the biggest weighting among foodstuffs in China’s consumer price index and could pose broader inflation risks. A price slump last year has been a key factor for subdued overall growth in consumer prices.

Current hog production capacity is overall reasonable and ample, according to the NDRC, saying that with weak consumption there’s no foundation for a sustained significant rise in hog prices. It added representatives attending the meeting vowed to keep a normal output pace. 







  • Chinese Vice Premier Liu He, a member of the Politburo of the CPC Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, held a video conversation with U.S. Treasury Secretary Janet Yellen at the latter's request on Tuesday morning.

    According to a statement released after the meeting, both sides had a pragmatic and candid exchange of views on such topics as the macroeconomic situation and the stability of the global industrial and supply chains. The two sides agree that it is of great significance to strengthen macro-policy communication and coordination between China and the United States, as the world economy is facing severe challenges. And jointly maintaining the stability of the global industrial and supply chains is in the interests of both countries and the whole world.

    The Chinese side expressed its concern about issues including the lifting of additional tariffs on China and sanctions by the U.S. side, and fair treatment of Chinese enterprises. 

  • 中美高官就经济问题举行视频会谈:7月5日上午,中共中央政治局委员、国务院副总理、中美全面经济对话中方牵头人刘鹤应约与美财政部长耶伦举行视频通话。双方就宏观经济形势、全球产业链供应链稳定等议题务实、坦诚交换了意见,交流富有建设性。双方认为,当前世界经济面临严峻挑战,加强中美宏观政策沟通协调意义重大,共同维护全球产业链供应链稳定,有利于中美两国和整个世界。中方表达了对美国取消对华加征关税和制裁、公平对待中国企业等问题的关切。双方同意继续保持对话沟通。

Moving on to regional highlights


  • More Chinese carriers have started flying along the country’s busiest trunk route between Shanghai and Beijing again this month, indicating life and work are getting back to normal after the recent resurgence of Covid-19. There were 32 flights from Shanghai to Beijing and 23 from Beijing to Shanghai on Monday, versus only one flight a day between the two metropolises during the height of the pandemic.


Next on industry and company news


  • China's box office earnings for the first half of 2022 totaled 17.18 billion yuan, with revenue generated by Chinese titles accounting for nearly 85 percent, media reported Monday. Due to COVID-19 outbreaks in the last four months, the number of movie viewers has fallen to 397 million in the first half of the year, data from the Chinese ticketing platform Maoyan showed.


  • The implementation of car purchase tax cut policy have saved about 7.1 billion yuan for car buyers, data from the State Taxation Administration on Monday. China decided in late May to halve the car purchase tax for passenger vehicles priced at no more than 300,000 yuan and with 2-liter or smaller engines.  


  • The Fuling shale gas field in Chongqing produced a record high of more than 3.63 billion cubic meters of natural gas in the first half of this year, up 1.9 percent year on year, according to Sinopec on Monday.


  • Chinese internet healthcare platform WeDoctor has secured more than 1 billion yuan in its latest financing round, led by a state-backed industrial investment fund in eastern Shandong province. Other state-owned funds are in negotiations with WeDoctor to integrate local medical and healthcare systems onto the platform.  


  • Chinese tech giant Huawei Technologies and its electric vehicle-making partner Sokon Automobile have launched their second Aito-branded EV model, Aito M7, at the release event yesterday. Priced from 319,800 yuan, over 10,000 orders of this six-seat SUV were placed in the first two hours of sales after 6 p.m. yesterday.


Switching gears to financial news


  • In the six months ended June 30, both the number of IPOs and the value of funds raised on the Shanghai and Shenzhen bourses outstripped other capital markets around the globe, according to PricewaterhouseCoopers data on Monday. Although the number of IPOs slumped by 31 percent in the first half from the same period last year to 169, the amount of money raised surged 48 percent year on year to 311.9 billion yuan, while the average amount raised by each company doubled from a year ago to 1.8 billion yuan. There will probably be between 330 and 380 listings on the mainland this year, raising as much as 635 billion yuan.

    沪深成为全球前二大上市目的地:7月4日,普华永道发布了2022年上半年中国内地和香港IPO市场表现及前景展望。2022年上半年,A股市场有169只新股,融资额达到3119亿元人民币,IPO数量比去年同期(245家)减少了31%,但融资额比去年同期(2109亿元)上升了48%, 平均融资额为18亿元人民币,比去年增加了100%。2022年上半年,A股市场IPO不论数量还是融资额均超过全球其他各大资本市场,以融资额计算,上交所、深交所分别成为全球第一和第二大的上市目的地。

  • At least three international asset managers have recently reduced their holdings of China’s battery giant CATL, media reported Monday. The Allianz China A-Shares fund cut its holdings in CATL by 17.9 percent and JPMorgan Chase’s China A-Share Opportunities Fund reduced 11.2 percent in May. The Baillie Gifford China Fund also pared its stake by 6.9 percent in April. 

    多家海外中国基金减持宁德时代:多家国际资产管理公司最近都减持了中国电池巨头宁德时代的股份。 安联神州A股基金5月减持了17.98%宁德时代持仓,由第二大重仓股降至第五大重仓股。摩根大通旗下旗舰基金也在5月份减持了宁德时代股票,减持幅度为11.29%。此前,超长线投资机构“柏基”旗下的“柏基中国基金”在4月也同样减持了宁德时代,减持幅度为6.94%。

  • Baihang Credit, China's first licensed personal credit agency, has recently appointed a former deputy director of China’s central bank, Wang Xiaolei, as its new chairman, information on the website of the firm showed on Monday.  


Wrapping up with a quick look at the stock market


  • Chinese stocks fell on Tuesday as concerns over the country’s worsening COVID-19 situation overshadowed optimism from recovering service activities. The benchmark Shanghai Composite closed almost flat, and the Shenzhen Component was down 0.41 percent. Hong Kong’s Hang Seng rose 0.1 percent while the TECH index dipped 0.47 percent.


Biz Word of the Day


  • Futures are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.


Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI, ZENG Libin, JIA Yuxiao,

Sound Editor: JIA Yuxiao

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

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