6:00AM New York, 6:00PM Hong Kong – Industrial output, retail sales and exports from China continue to rise at a faster pace.

Market sentiment

In Hong Kong trading the Hang Seng Index fell 0.08% or 19.29, at 25,533.48, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, rose 0.02% or 2.33 at 13,980.24. In Shanghai trading gained 3.22% or 124.10 at 3,975.78.

Daily turnover on main-board was HK$67.92 billion compared to HK$80.84 billion yesterday.

Industrial output in April rose 15.7%

Industrial output in April in China cooled 2.1% from March or 1.7% from a year ago in April as rising commodities prices dragged on the activities. Coal production increased 14%, crude oil output rose 0.5% and electricity generated rose 12.8%.

China’s wholesale price index rise 10.3% in April

The Peoples Bank of China reported yesterday that the Corporate Goods Price index rose 10.3% in April from a year ago or rose 0.7% from March.

Prices of coal, oil and electricity jumped 2.3% on average month-on-month and prices of iron ore and rolled steel increased by 3% and 3.2% in that order. Raw and processed grains advanced 0.5% and 0.1% respectively from the previous month, while prices of processed meat increased 0.3%. However, the prices of vegetables, edible oils and non-ferrous metals declined by 8.1%, 4.2% and 1.8% correspondingly.

The bank also indicated that in the month farm products gained 0.5% and mineral products advanced 1.3% from March.

China is currently tightening its monetary measures in order to stem rising inflation and on Monday this week raised the reserve requirement ratio for commercial banks by 0.5 percentage point.

China trade surplus increase fall 7.9% in the first four months

The People’s Daily Online reported today that the General Administration of Customs revealed recently that China’s total imports and exports trade rose 24.4% from a year ago to $791.14 billion in the Jan-April period. Exports gained 21.5% on the year to $424.57 billion and imports rose 27.9% to $366.57 billion.

The trade surplus in the review period fell 7.9% from a year ago to $58 billion. In April total imports and exports trade grew 23.9% to $220.74 billion.

China retail sales rise 22% in April

The National Bureau of Statistics reported today that China''s retail sales increased 22% from a year earlier in April.

Sales of foodstuffs and beverages jumped 25.3% year-on-year, as spending on grain and edible oil increased by 36.3%. Sales in furniture, automobiles, gold and silver jewelry gained 37.2 %, 25.7% and 41% in that order.

Gainers & Losers

Insurers fell after China Life declined 0.5% at HK$33.05 trekking movements of its shares in Shanghai. The company reported that it forecasted claims will exceed those from the snowstorms in February.

Non-life underwriter PICC Property and Casualty fell 0.57% and Ping An Insurance plummeted l 0.56%.Hong Kong Exchanges and Clearing Ltd fell 1.69% despite reporting a 79% increase in first-quarter earnings. Chinese People Holdings Co fell 6.8% on news that its earnings are exposed to the earthquake.