Everything You Need to Know About China's Economy on Thursday (Sept. 19)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Thursday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, more than 70 countries and international organizations have confirmed their participation in the seventh China International Import Expo (CIIE) so far, the organizing committee said.
The total number of exhibitors is expected to exceed that of the sixth CIIE, the organizers said.
The event, scheduled to be held from Nov. 5 to 10, will see Norway, Slovakia, Benin, Burundi, Madagascar and UNICEF participating in the Country Exhibition for the first time.
ALSO ON THURSDAY, the National Development and Reform Commission (NDRC), China's top economic planner, said Thursday that it is intensifying efforts to spur investment and consumption in its bid to bolster domestic demand.
Specifically, the NDRC will continue to support government investment in guiding and driving social investment, while also encouraging private businesses to participate in major national projects, said spokesperson Jin Xiandong during a press conference.
The NDRC will offer more high-quality projects to private investors, prudently promote government-private investment cooperation, and accelerate the regular issuance of real estate investment trusts to further stimulate private investment, Jin added.
Concerning the boosting of consumption, Jin said the economic planner will adhere to an "employment-first" policy and explore more approaches to increase incomes, thereby enhancing people's spending power.
The NDRC will also maximize the use of ultra-long special treasury bonds to support consumer goods trade-ins, and promote service consumption in sectors such as culture and tourism, education, healthcare, elderly and child care, and housekeeping, Jin confirmed.
MEANWHILE, Germany's Economics Minister Robert Habeck has called for the European Union (EU) and China to reach a political solution to the issue of tariffs on electric vehicles (EVs).
"We want to avoid a trade conflict that could escalate into a tariff spiral, ultimately harming both sides," Habeck said in a statement on Tuesday, reaffirming that his stance is clear -- a political solution is essential.
Emphasizing China's significance to the German and European economies, Habeck said fair competition conditions must be guaranteed and Germany welcomes competition with China.
"The European Commission and China should work towards a negotiated solution," he added.
Habeck's statement echoes the German government's remarks at a press conference last week. A government spokesperson said that the federal government had been skeptical about the EU's proposal of EV tariffs from the beginning, and this stance remains unchanged, mentioning that Spanish Prime Minister Pedro Sanchez had called on the EU member countries and the European Commission to reconsider their position on the proposal of additional tariffs on Chinese EVs.
"We are very pleased that talks between China and the EU are continuing to prevent such tariffs," the spokesperson said, adding that it would benefit all parties if other EU member countries also recognized that tariffs are not in the best interests of their industry.
The European Commission imposed provisional additional tariffs on Chinese EV makers in July, following its so-called anti-subsidy probe on Chinese EVs launched in October 2023.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 0.69% on Thursday
China’s benchmark Shanghai Composite Index (000001.SH) gained 0.69% on Thursday, while the Shenzhen Component Index (399001.SZ) rose 1.19%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.63% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.85%.
Chinese yuan weakens to 7.0983 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 113 pips to 7.0983 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 benchmark interbank gold prices mixed Thursday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 581.95 yuan (about 81.98 U.S. dollars) per gram, 3.95 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 0.56 yuan from the previous trading day to 581.98 yuan.
Hong Kong Hang Seng Index closes 2 pct higher
Hong Kong stock market ended higher on Thursday with the benchmark Hang Seng Index up 2 percent to close at 18,013.16 points, passing the psychologically important mark of 18,000 points.
The Hang Seng China Enterprises Index rose 2.1 percent to end at 6,305.51 points, and the Hang Seng Tech Index hiked 3.25 percent to close at 3,651.56 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for January 2025 delivery gained 80 yuan (about 11.27 U.S. dollars) to close at 13,785 yuan per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 455,163.0 lots with a turnover of 31.16 billion yuan..
Sugar futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery gained 58 yuan (8.17 U.S. dollars) to close at 5,812 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 539,134.0 lots with a turnover of 31.24 billion yuan.
Iron ore futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery gained 11.5 yuan (about 1.62 U.S. dollars) to close at 693 yuan per tonne.
On Thursday, the total trading volume of 11.5 listed iron ore futures contracts on the exchange was 861,155 lots, with a turnover of about 58.46 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 January 2025 delivery dipped 65 yuan (about 9.16 U.S. dollars) to close at 4,170 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 136,663 lots, with a turnover of about 5.71 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.