Everything You Need to Know About China's Economy on Thursday (June 13)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Friday! This is TIAN travelling in New Zealand.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, Chinese Premier Li Qiang is visiting New Zealand this week. Here are some key takeaways of Li’s talks with New Zealand’s leaders on Thursday:
China will include New Zealand in the list of unilateral visa-free countries and hopes that New Zealand will provide more convenience for Chinese citizens to visit New Zealand.
The two countries agreed to initiate negotiations on service trade negative lists.
The Chinese side hopes that New Zealand can support Hong Kong in joining the Regional Comprehensive Economic Partnership (RCEP).
Li said the respective development of China and New Zealand is an opportunity for each other rather than a challenge. The two countries should continue to be partners of mutual respect, mutual trust, mutual benefit, and mutual learning, as well as partners of solidarity and coordination.
The two sides signed bilateral cooperation documents on service trade, business environment, export of agricultural and food products to China, science and technology, patent examination and migratory bird protection, among others.
MEANWHILE, the number of private business entities in China had reached 180.45 million by the end of May 2024, accounting for 96.4 percent of the country's total business entities, according to the State Administration for Market Regulation.
This proportion is up from the 95.5 percent registered in 2019, the administration said, adding that China is now home to nearly 55.18 million private companies and over 125.27 million self-employed businesses.
China's private sector has played a key role in boosting the country's high-tech and emerging industries.
In the manufacturing sector, for example, private businesses currently account for 96.1 percent of the total manufacturing companies in China, up from 95.9 percent in 2019.
The share of private businesses in the scientific research and technical services sector has risen from 91.9 percent in 2019 to the current 94.4 percent.
ALSO ON THURSDAY, Chinese Premier Li Qiang has signed a State Council decree, introducing regulations for fair competition reviews.
From Aug. 1, administrative agencies and organizations legally authorized to manage public affairs must conduct fair competition reviews when formulating laws, rules and policies related to business activities, according to the regulations.
While allocating duties to both central and local government departments, the regulations outline specific standards for fair competition reviews. For instance, relevant contents that could restrict market entry or exit, the free flow of goods and business operations should not be contained in new policy measures.
The regulations also stress that stakeholders and public opinions should be taken into account during reviews to safeguard their interests.
In its new development paradigm, China prioritizes the establishment of a unified national market characterized by high efficiency, standardization, openness, and fair competition.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.28% on Thursday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.28% on Thursday, while the Shenzhen Component Index (399001.SZ) fell 0.69%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.54% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 0.09%.
China's benchmark interbank gold prices higher Thursday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 544 yuan (76.49 U.S. dollars) per gram, 2 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 2.02 yuan from the previous trading day to 545.97 yuan.
Chinese yuan strengthens to 7.1122 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 11 pips to 7.1122 against the U.S. dollar Thursday, 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 adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (281.21 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Thursday.
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's Hang Seng Index closes 0.97 pct higher
Hong Kong stock market ended higher on Thursday with the benchmark Hang Seng Index up 0.97 percent to close at 18,112.63 points.
The Hang Seng China Enterprises Index rose 0.98 percent to 6,421.81 points, and the Hang Seng Tech Index jumped 1.3 percent to end at 3,739.14 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed lower Thursday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2024 delivery lost 275 yuan (about 38.67 U.S. dollars) to close at 14,760 yuan per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 636,547 lots with a turnover of 47.26 billion yuan.
Sugar futures closed lower Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery lost 27 yuan (about 3.8 U.S. dollars) to close at 6,164 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 382,272 lots with a turnover of 23.54 billion yuan.
Iron ore futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 7.5 yuan (about 1.05 U.S. dollars) to close at 817 yuan per tonne.
On Thursday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 481,192 lots, with a turnover of about 38.89 billion yuan.
No.1 soybean futures closed lower on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for July 2024 delivery dipped 24 yuan (about 3.37 U.S. dollars) to close at 4,625 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 155,549 lots, with a turnover of about 7.17 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.