Everything You Need to Know About China's Economy on Wednesday (Sept. 25)
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, Hong Kong moved up one place to rank third globally and first in the Asia-Pacific region in a global financial centers index.
According to the Global Financial Centers Index (GFCI) 36 Report published by British think tank Z/Yen Group and the China Development Institute in Shenzhen.
Hong Kong's rankings in various financial industry sectors also rose significantly, including investment management, insurance, banking and professional services. Among them, the ranking in investment management advanced to first globally.
In addition, the report assessed the financial centers' fintech offerings, and Hong Kong's ranking rose five places to ninth, making it among the top 10 fintech hubs.
MEANWHILE, China's central bank on Wednesday conducted a 300-billion-yuan (about 42.73 billion U.S. dollars) medium-term lending facility (MLF) operation to maintain reasonable and ample liquidity in the banking system.
The MLF operation had a maturity of one year with an interest rate of 2 percent, 30 basis points lower than the previous level.
After the operation, the outstanding balance of the MLF stood at 6.878 trillion yuan.
ALSO ON WEDNESDAY, Cai Xin reported that China Creates New State Giant to Turn Waste Into Resources.
China is to establish a state-owned enterprise focused on recycling, as the country promotes upgrades to industrial equipment and consumer good trade-ins to boost the economy.
A senior official at the National Development and Reform Commission (NDRC), China’s top economic planning agency, said that the commission “supports the establishment of a national resources recycling group to create a functional resource recovery and utilization platform,” the first official statement on the new state enterprise.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 1.16% on Wednesday
China’s benchmark Shanghai Composite Index (000001.SH) gained 1.16% on Wednesday, while the Shenzhen Component Index (399001.SZ) rose 1.21%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) ended nearly flat for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 1.62%.
China's benchmark interbank gold prices lower Wednesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 588.31 yuan (about 83.8 U.S. dollars) per gram, 2.61 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 0.20 yuan from the previous trading day to 592.00 yuan.
Chinese yuan strengthens to 7.0202 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 308 pips to 7.0202 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 196.5 billion yuan (about 27.99 billion U.S. dollars) of 14-day reverse repos at an interest rate of 1.85 percent Wednesday.
The move aims to keep liquidity reasonable and ample in the banking system at the end of the quarter, the central bank said.
Hong Kong's Hang Seng Index closes 0.68 pct higher
Hong Kong stock market ended higher on Wednesday with the benchmark Hang Seng Index up 0.68 percent to close at 19,129.10 points.
The Hang Seng China Enterprises Index rose 0.76 percent to end at 6,765.60 points, and the Hang Seng Tech Index climbed 0.23 percent to close at 3,924.45 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 85 yuan (about 12.11 U.S. dollars) to close at 14,170 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 588,704 lots with a turnover of 41.88 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 52 yuan (7.41 U.S. dollars) to close at 5,921 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 461,544 lots with a turnover of 27.33 billion yuan.
Iron ore futures closed higher on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery gained 28.5 yuan (about 4.06 U.S. dollars) to close at 709 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 952,529 lots, with a turnover of about 68.08 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 6 yuan (about 85 U.S. cents) to close at 4,137 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 129,623 lots, with a turnover of about 5.38 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.