Everything You Need to Know About China's Economy on Wednesday (Oct. 16)
Everything You Need to Know About China's Economy on Wednesday (Oct. 16)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Wednesday. This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, China's central bank on Wednesday said that it has renewed a bilateral currency swap agreement with the State Bank of Pakistan.
The total value of the agreement is 30 billion yuan (about 4.21 billion U.S. dollars), or 1.18 trillion Pakistani rupees, the People's Bank of China said in a statement on its website.
The agreement is valid for three years and can be renewed upon mutual consent, according to the statement.
The currency swap arrangement will strengthen financial cooperation between China and Pakistan, expand the use of the two currencies, and promote and facilitate bilateral trade and investment, the statement said.
MEANWHILE, North China's Tianjin Municipality abolished restrictive measures on buying home properties on Wednesday, marking another major Chinese city that has adjusted housing purchase policies to stabilize the real estate market.
The city lifted restrictions on purchasing and transferring new and second-hand homes as well as price caps on new commodity housing sales, according to a circular jointly issued by six government departments of Tianjin, including the municipal housing and urban-rural construction commission.
To align with national financial support policies, the circular said that Tianjin has standardized the minimum down payment ratio for personal housing loans at 15 percent, regardless of whether the purchase is for a first or second home.
The circular took effect on Wednesday.
Located near Beijing, Tianjin has a population of more than 13 million.
ALSO ON WEDNESDAY, a total of 124 mineral deposits were discovered in China in 2023, according to a report released by the Ministry of Natural Resources.
Of the 124 newly discovered mineral deposits, 16 are limestone deposits for construction and 10 are graphite deposits, making them among the most abundant. By the end of 2023, a total of 173 kinds of minerals had been discovered in China.
The report notes that, in terms of oil and gas exploration, major breakthroughs had been made in new layers and new zones in large oil and gas basins such as Tarim, Junggar and Bohai Bay.
In terms of the non-oil-gas mineral exploration, significant progress had been achieved in coal, copper, gold, lithium and phosphorite.
IN TODAY'S FINANCIAL MARKET,
Chinese shares close mixed Wednesday
Chinese stocks closed mixed on Wednesday, with the benchmark Shanghai Composite Index up 0.05 percent to 3,202.95 points.
The Shenzhen Component Index closed 1.01 percent lower at 9,965.02 points.
The combined turnover of the Shanghai and Shenzhen bourses reached almost 1.38 trillion yuan (about 193.2 billion U.S. dollars), down from 1.63 trillion yuan recorded on the previous trading day.
Stocks in the precious metals sector led the gains, while those related to the shipbuilding and internet e-commerce sectors suffered significant losses.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 2.21 percent to close at 2,039.95 points.
China's benchmark interbank gold prices higher Wednesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 601.57 yuan (about 84.5 U.S. dollars) per gram, 2.37 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 2.44 yuan from the previous trading day to 603.26 yuan.
Chinese yuan weakens to 7.1191 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 361 pips to 7.1191 against the U.S. dollar Wednesday, 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 central bank conducts reverse repos Wednesday
China's central bank conducted 642.4 billion yuan (about 90.24 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Wednesday.
The move aims to offset the impact brought by the expiration of the medium-term lending facility (MLF) and reverse repos, and to keep liquidity reasonable and ample in the banking system, the central bank said.
Hong Kong's Hang Seng Index closes 0.16 pct lower
Hong Kong's stock market ended lower Wednesday with the benchmark Hang Seng Index down 0.16 percent to close 20,286.85 points.
The Hang Seng China Enterprises Index fell 0.14 percent to end at 7,267.98 points, and the Hang Seng Tech Index fell 1.09 percent to end at 4,402.37 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for January 2025 delivery gained 10 yuan (about 1.40 U.S. dollars) to close at 14,100 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 379,945.0 lots with a turnover of 26.85 billion yuan.
Sugar futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery gained 12 yuan (1.69 U.S. dollars) to close at 5,934 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 359,957.0 lots with a turnover of 21.37 billion yuan.
Iron ore futures closed lower on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery dipped 15 yuan (about 2.11 U.S. dollars) to close at 782.5 yuan per tonne.
On Wednesday, the total trading volume of 11 listed iron ore futures contracts on the exchange was 641,063 lots, with a turnover of about 50.82 billion yuan.
No.1 soybean futures closed lower on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery dipped 27 yuan (about 3.79 U.S. dollars) to close at 3,969 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 156,184 lots, with a turnover of about 6.19 billion yuan.
About the Newsletter:
Ran by TIAN Dongdong, this newsletter features daily and trustworthy content on China's economy. Having worked in Brussels, London, Cairo, and Tripoli for Chinese media as correspondent for several years, TIAN is now based in Beijing.