Everything You Need to Know About China's Economy on Friday (April 26)
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, TikTok Vows to Fight On as New Law Threatens Ban Unless ByteDance Sells, China’s Caixin Media reported.
TikTok has vowed to challenge in court a bill signed into law by President Joe Biden recently that could ban the video-sharing platform unless its Chinese parent sells it.
In a two-minute video posted on TikTok, Chief Executive Officer Shou Zi Chew told 170 million American users that “we are not going anywhere,” and vowed to “keep fighting for your rights in the courts.” The facts and the Constitution are on TikTok’s side and “we expect to prevail again,” he said.
Chew also called for users to share their stories about how the app has affected their lives.
MEANWHILE, Chinese lawmakers on Friday voted to adopt a law on customs duties to promote high-level opening up.'
The law maintains the basic stability of the existing tariff system, with the overall tax burden level remaining unchanged, and will take effect on Dec. 1, 2024.
The move marked another step in China's tax legislation. Out of the country's existing 18 tax categories, China has enacted laws on 13 of them.
ALSO ON FRIDAY, China's gold output and consumption both saw steady growth in the first quarter of 2024, industry data showed.
China produced 85.959 tonnes of gold in the first quarter, up 1.16 percent from a year earlier, according to data released by the China Gold Association (CGA).
In the first three months, gold consumption in China stood at 308.905 tonnes, up 5.94 percent year on year, CGA data showed.
Specifically, consumption of gold jewelry in the Chinese market fell 3 percent compared with the same period last year to 183.922 tonnes, while that of gold bars and coins surged 26.77 percent year on year to 106.323 tonnes.
Consumption of gold for industrial and other use gained 3.09 percent from the previous year to 18.66 tonnes from January to March.
IN TODAY'S FINIANCIAL MARKET,
Shanghai Composite Index Rose 1.17% on Friday
China’s benchmark Shanghai Composite Index (000001.SH) gained 1.17% on Friday, while the Shenzhen Component Index (399001.SZ) rose 2.15%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 2.58% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 3.34%.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.47 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 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.
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 547.3 yuan (about 77.02 U.S. dollars) per gram, down 0.82 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above went down 0.17 yuan from the previous trading day to 548.16 yuan.
Chinese yuan strengthens to 7.1056 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 2 pips to 7.1056 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.
Hong Kong's Hang Seng Index closes 2.21 pct higher
Hong Kong's stock market ended higher on Friday with the benchmark Hang Seng Index up 2.21 percent to close at 17,651.15 points.
The Hang Seng China Enterprises Index rose 2.44 percent to end at 6,269.76 points, and the Hang Seng Tech Index rose 4.61 percent to close at 3,718.27 points.
BEFORE ENDING TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES,
Cotton futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2024 delivery lost 20 yuan (about 2.81 U.S. dollars) to close at 15,730 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 327,409.0 lots with a turnover of 25.63 billion yuan.
Sugar futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery gained 20 yuan (2.81 U.S. dollars) to close at 6,174 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 480,405.0 lots with a turnover of 29.55 billion yuan.
No.1 soybean futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for July 2024 delivery dipped 17 yuan (about 2.39 U.S. dollars) to close at 4,643 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 80,432 lots, with a turnover of about 3.74 billion yuan.
Iron ore futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 0.5 yuan (about 7 U.S. cents) to close at 884.5 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 372,566 lots, with a turnover of about 32.7 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.