Everything You Need to Know About China's Economy on Tuesday (Jan. 21)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY. TIAN here. Welcome to your Tuesday edition of Everything You Need to Know About China's Economy.
DRIVING THE DAY, China's total installed power generation capacity reached 3.35 billion kilowatts at the end of December last year, up 14.6 percent year on year, data from the National Energy Administration showed on Tuesday.
Major power companies invested about 1.17 trillion yuan (162.99 billion U.S. dollars) in power supply projects, an increase of 12.1 percent year on year. Investment in power grid projects rose by 15.3 percent, reaching 608.3 billion yuan.
In 2024, China's solar power generation capacity surged 45.2 percent to about 890 million kilowatts, while wind power generation capacity rose 18 percent to about 520 million kilowatts.
According to a document released by the National Development and Reform Commission and the administration earlier this month, the country has vowed to improve the regulation capacity of its power system from 2025 to 2027.
ALSO ON TUESDAY, China initiated over 60,000 urban renewal projects in 2024 as part of its ongoing efforts to transform cities into more resilient and intelligent areas that are desirable to live in, the Ministry of Housing and Urban-Rural Development said.
These projects drew a total investment of 2.9 trillion yuan (about 404.4 billion U.S. dollars), according to the ministry.
Local governments have intensified support for urban renewal by introducing measures in areas such as land use and planning, along with fiscal, tax and financial assistance, the ministry said.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed mixed on Tuesday, with the benchmark Shanghai Composite Index down 0.05 percent to 3,242.62 points.
The Shenzhen Component Index closed 0.48 percent higher at 10,305.69 points.
The combined turnover covered by these two indices stood at around 1.21 trillion yuan (about 168.09 billion U.S. dollars), up from 1.18 trillion yuan on the previous trading day.
Stocks related to the humanoid robotics and AI-powered smart glass sectors led the gains, while the education and transgenic technology sectors suffered significant declines.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 0.36 percent to close at 2,112.39 points.
China's benchmark interbank gold prices lower Tuesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 635.51 yuan per gram, down 3.74 yuan per gram.
The price for gold that is 99.99 percent pure or aboves stood at 637.50 yuan per gram, down 0.13 yuan per gram.
China's central bank conducts reverse repos Tuesday
China's central bank conducted 256 billion yuan (about 35.7 billion U.S. dollars) of 14-day reverse repos at an interest rate of 1.65 percent on Tuesday.
The move aims to keep liquidity in the banking system at an adequate level before the upcoming Spring Festival holiday, the central bank said.
Chinese yuan strengthens to 7.1703 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 183 pips to 7.1703 against the U.S. dollar Tuesday, 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 0.91 pct higher
Hong Kong stock market ended higher on Tuesday with the benchmark Hang Seng Index up 0.91 percent to close at 20,106.55 points.
The Hang Seng China Enterprises Index gained 1.18 percent to end at 7,320.88 points, and the Hang Seng Tech Index jumped 2.14 percent to end at 4,693.72 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Tuesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for May 2025 delivery gained 10 yuan (about 1.39 U.S. dollars) to close at 13,670 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 162,837 lots with a turnover of 11.13 billion yuan.
Sugar futures closed higher Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for May 2025 delivery gained 21 yuan (2.93 U.S. dollars) to close at 5,798 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 205,846 lots with a turnover of 11.87 billion yuan.
Iron ore futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for May 2025 delivery gained 4.5 yuan (about 63 U.S. cents) to close at 804.5 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 325,882 lots, with a turnover of about 26.13 billion yuan.
No.1 soybean futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2025 delivery gained 26 yuan (about 3.63 U.S. dollars) to close at 4,032 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 145,219 lots, with a turnover of about 5.83 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.