Everything You Need to Know About China's Economy on Monday (Sept. 9)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Monday! This is TIAN in Beijing.
Welcome to monitor the pulse of China's economy together with me.
DRIVING THE DAY, China's producer price index (PPI), which measures costs for goods at the factory gate, went down 1.8 percent year on year in August, the National Bureau of Statistics (NBS) said.
The decline was bigger than a 0.8-percent year-on-year dip registered in July.
On a monthly basis, the PPI edged down 0.7 percent, widening from a 0.2-percent decrease a month earlier, the data showed.
NBS statistician Dong Lijuan attributed the PPI decrease to insufficient market demand and the downward trend in prices of some international commodities.
From January to August, the average PPI decreased by 1.9 percent from a year ago.
China's consumer price index (CPI), a main gauge of inflation, was up 0.6 percent year on year in August, quickening from the 0.5-percent increase in July. On a monthly basis, the CPI grew 0.4 percent in August, slightly lower than the 0.5-percent increase in July.
NBS attributed the price changes last month to factors including high temperatures and frequent rainfall in summer.
ALSO ON MONDAY, China initiated an anti-dumping probe into imported rapeseed from Canada, China's Ministry of Commerce has said.
The move was made in accordance with Chinese law and in compliance with the rules of the World Trade Organization (WTO), the ministry said.
It said that there is evidence showing Canada has engaged in the dumping of its rapeseed exports to China, causing substantial damage to China's domestic industry.
The anti-dumping probe is a legitimate trade measure that complies with WTO rules to protect domestic industries, and there is a fundamental difference between the probe and Canada's discriminatory measures that violate WTO rules, the ministry said.
It noted that according to Chinese law and WTO rules, there are two launch scenarios for such anti-dumping probes: when an application is made from within the industry, and when a relevant authority initiates a probe independently.
MEANWHILE, China's Ministry of Finance on Monday said that it will issue euro sovereign bonds in Paris, the capital of France, in the week starting on Sept. 23.
The scale of the issuance will not exceed 2 billion euros, with further specifics to be announced ahead of time.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 1.06% on Monday
China’s benchmark Shanghai Composite Index (000001.SH) lost 1.06% on Monday, while the Shenzhen Component Index (399001.SZ) fell 0.83%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 1.12% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.06%.
China's benchmark interbank gold prices higher Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 569.86 yuan (about 80.27 U.S. dollars) per gram, 1.6 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 1.05 yuan from the previous trading day to 572.84 yuan.
Chinese yuan weakens to 7.0989 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 64 pips to 7.0989 against the U.S. dollar Monday, 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.
Hong Kong's Hang Seng Index closes 1.42 pct lower
Hong Kong stock market ended lower on Monday with the benchmark Hang Seng Index down 1.42 percent to close at 17,196.96.
The Hang Seng China Enterprises Index dipped 1.68 percent to end at 6,002.91 points, and the Hang Seng Tech Index fell 1.46 percent to close at 3,436.75 points.
China's central bank conducts reverse repos Monday
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for January 2025 delivery lost 240 yuan (about 33.81 U.S. dollars) to close at 13,325 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 495,705 lots with a turnover of 33.01 billion yuan..
Sugar futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery lost 28 yuan (about 3.94 U.S. dollars) to close at 5,590 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 410,961 lots with a turnover of 23.09 billion yuan.
Iron ore futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery gained 3 yuan (about 42 U.S. cents) to close at 685 yuan per tonne.
On Monday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 783,606 lots, with a turnover of about 52.97 billion yuan.
No.1 soybean futures closed lower on Monday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery dipped 44 yuan (about 6.2 U.S. dollars) to close at 4,293 yuan per tonne.
On Monday, the total trading volume of five listed No.1 soybean futures contracts on the exchange was 127,080 lots, with a turnover of about 5.47 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.