Everything You Need to Know About China's Economy on Friday (Sept. 13)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Friday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, a senior lawmaker on Friday said China is taking steady steps to raise retirement age.
Zhang Yong, deputy head of the Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee, explained the legislative process at a press conference held after the top legislature adopted a decision on gradually raising the statutory retirement age in the country.
Zhang said the State Council submitted a bill about the draft decision to the top legislature in early August. It was decided on Aug. 27 to include the bill in the legislative agenda of the 11th session of the 14th NPC Standing Committee scheduled for mid-September.
On Sept. 10, when the session opened, Minister of Human Resources and Social Security Wang Xiaoping made explanatory remarks on the draft decision to the top legislature.
The lawmakers then held group deliberations. They deemed it necessary for the NPC Standing Committee to adopt such a decision to provide adequate legal basis for major reforms and to ensure the reform on retirement age is carried out in a steady and orderly manner, Zhang said.
The lawmakers said the draft is a feasible one as it has comprehensively considered various factors and fits the basic conditions and realities of the country. They broadly agreed to adopt the draft at the session, Zhang said.
MEANWHILE, Canada is launching a 30-day consultation period to consider the imposition of a surtax on batteries, battery parts, semiconductors, critical minerals and metals and solar products from China.
The move follows a decision last month to increase tariffs on Chinese-made electric vehicles from 6.1% to 106.1%, a measure due to take effect on Oct. 1.
Canada’s Finance Ministry cited unfair competition from Chinese companies that benefit from a government-led policy of overcapacity and lower labor and environmental standards as the reason for the action. Such unfair competition poses a threat to Canadian companies and workers and undermines Canada’s long-term economic prosperity, it said.
ALSO ON FRIDAY, Beijing has become the first city on the Chinese mainland supporting contactless fare payments in rail transit for foreign MasterCard and Visa card holders.
Starting Friday, international visitors can use MasterCard and Visa cards issued overseas to take rides on the city's entire rail transit network, and pay automatically according to the same billing rules as the local residents.
Beijing has upgraded more than 20,000 sets of facilities at subway stations of its rail transit system to facilitate the new payment initiative, which supplements current payment methods such as UnionPay cards and QR codes, to further improve the experience of international visitors for rail transit, the Beijing Municipal Commission of Transport announced at the ongoing 2024 China International Fair for Trade in Services.
The service is comprehensively available at all gates across 490 stations along 27 subway lines (including two airport lines, Xijiao Line and Yizhuang T1 Line), covering a total length of 836 km. Additionally, the Suburban Railway Line S2 is also part of this scheme.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.48% on Friday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.48% on Friday, while the Shenzhen Component Index (399001.SZ) fell 0.88%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 0.58% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 1.07%.
Chinese yuan strengthens to 7.1030 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 184 pips to 7.1030 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
China's benchmark interbank gold prices LOWER Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 572.24 yuan (about 80.56 U.S. dollars) per gram, 2.98 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 0.74 yuan from the previous trading day to 575 yuan.
China's central bank conducts reverse repos Friday
China's central bank conducted 236.2 billion yuan (about 33.25 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.7 percent Friday.
The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said in a statement.
Hong Kong Hang Seng Index closes 0.75 pct higher
Hong Kong stock market ended higher on Friday with the benchmark Hang Seng Index up 0.75 percent to close at 17,369.09 points.
The Hang Seng China Enterprises Index rose 0.9 percent to end at 6,071.52 points, and the Hang Seng Tech Index edged up 0.13 percent to close at 3,479.80 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for January 2025 delivery gained 15 yuan (about 2.11 U.S. dollars) to close at 13,545 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 303,829 lots with a turnover of 20.51 billion yuan..
Sugar futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery lost 2 yuan (28.16 U.S. cents) to close at 5,688 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 317,410.0 lots with a turnover of 18.05 billion yuan.
Iron ore futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery dipped 2 yuan (about 28 U.S. cents) to close at 694 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 561,290 lots, with a turnover of about 39.54 billion yuan.
No.1 soybean futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery gained 9 yuan (about 1.27 U.S. dollars) to close at 4,313 yuan per tonne.
On Friday, the total trading volume of five listed No.1 soybean futures contracts on the exchange was 98,626 lots, with a turnover of about 4.25 billion yuan.
About the Newsletter:
Ran by TIAN Dongdong, this newsletter features daily, trustworthy content on China's economy and regularly updates the insights of Chinese youth on Sino-US relations. Having worked in Brussels, London, Cairo, and Tripoli for Chinese media as correspondent for several years, TIAN is now based in Beijing.