China F&A Monthly: May 2020

With China’s Q1 GDP shrinking by 6.8% YOY, Covid-19 has sent China’s economy into the first YOY contraction in decades. China is well ahead in controlling the virus situation, with domestic production gradually recovering since March, though still below long-term potential.

Report summary

Lower disposable incomes and lingering concerns over safety sent domestic tourist arrivals tumbling by 40% YOY during the May holiday – the first long holiday after the lift of the lockdown. Overseas economic activities have yet to pick up, and supply chains have yet to normalize, which will weigh on China’s economic recovery. Weaker external demand will prolong the recovery of China's farm input exports, as well as animal protein and dairy imports. The market is awaiting more tangible stimulus policies while corporations continue with product portfolio adjustments, more proactive pursuit of digitalization strategies, and aggressive promotions to lure back consumer demand.

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  • Ping Chew

    Head of RaboResearch Food & Agribusiness - Asia
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  • Sandy Chen

    Senior Analyst - Dairy
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  • Chenjun Pan

    Senior Analyst - Animal Protein
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  • Lief Chiang

    Analyst - Grains & Oilseeds
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  • Jingyan Sun

    Analyst - Farm Inputs
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  • Stacie Wan

    Analyst – Supply Chains and Beverages
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  • Michelle Huang

    Analyst – Consumer Foods
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