Everything You Need to Know About China's Economy on Thursday (June 26)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is TIAN, welcoming you to your Thursday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA'S NON-FINANCIAL ODI UP 2.3 PCT IN FIRST FIVE MONTHS.
China's non-financial outbound direct investment (ODI) rose 2.3 percent year on year in the first five months this year, official data showed Thursday.
Total non-financial ODI of the country amounted to 61.6 billion U.S. dollars during the period, according to the data released by the Ministry of Commerce.
During the first five months, China's non-financial ODI in countries participating in the Belt and Road Initiative (BRI) reached 15.52 billion U.S. dollars, a 20.8-percent increase compared to the same period in the previous year.
During the period, the turnover of contracted overseas projects by Chinese companies amounted to 61.94 billion U.S. dollars, an increase of 5.4 percent year on year, and the value of newly signed contracts rose 13 percent year on year to 98.68 billion U.S. dollars, the ministry's spokesperson He Yadong said at a press conference.
The turnover of contracted overseas projects by Chinese companies in BRI partner countries rose 3.9 percent year on year in the first five months to 50.59 billion U.S. dollars, He added.
MEANWHILE, CHINA TO EXPEDITE REVIEW OF RARE EARTH-RELATED EXPORT LICENSE APPLICATIONS: COMMERCE MINISTRY.
China has consistently placed great importance on maintaining the stability and security of global industrial and supply chains and has been accelerating the review of rare earth-related export license applications in accordance with relevant laws and regulations, the Ministry of Commerce said Thursday.
China has approved a certain number of compliant applications in accordance with the law and will continue to strengthen the review and approval of such applications, He Yadong, spokesperson for the ministry, told a regular press conference when answering a question on rare earth exports.
China is willing to enhance communication and dialogue with relevant countries on export controls and actively promote the facilitation of compliant trade, He added.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed lower on Thursday, with the benchmark Shanghai Composite Index down 0.22 percent to 3,448.45 points.
The Shenzhen Component Index closed 0.48 percent lower at 10,343.48 points
The combined turnover of these two indices stood at 1.58 trillion yuan (about 220.61 billion U.S. dollars), down from 1.6 trillion yuan on the previous trading day.
Shares in the photoetching machine, brain-computer interface and semiconductor sectors suffered the most, while those related to the military equipment, cross-border payment, bank, oil and gas led the gains.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.66 percent to close at 2,114.43 points Thursday.
Hong Kong stock closed lower
Hong Kong's stock market ended lower Thursday with the benchmark Hang Seng Index down 0.61 percent to close at 24,325.4 points.
The Hang Seng China Enterprises Index fell 0.63 percent to end at 8,803.83 points, and the Hang Seng Tech Index fell 0.26 percent to end at 5,345.16 points.
Chinese yuan strengthens to 7.1620 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 48 pips to 7.1620 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 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 771.50 yuan per gram, up 0.95 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was 771.49 yuan per gram, up 2.62 yuan from the previous trading day.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
No.1 soybean futures closed lower on Thursday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active No.1 soybean contract for September 2025 delivery dipped 36 yuan (about 5.03 U.S. dollars) to close at 4,150 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 169,343 lots, with a turnover of about 7.01 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 2025 delivery gained 4.5 yuan (about 63 U.S. cents) to close at 705.5 yuan per tonne.
On Thursday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 407,224 lots, with a turnover of about 28.49 billion yuan.
Cotton futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 105 yuan (about 14.66 U.S. dollars) to close at 13,720 yuan per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 251,810 lots with a turnover of 17.22 billion yuan.
Sugar futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 63 yuan (8.8 U.S. dollars) to close at 5,790 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 269,008 lots with a turnover of 15.47 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.