Everything You Need to Know About China's Economy on Monday (Aug. 19)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Monday! This is TIAN in Beijing.
Welcome to monitor the pulse of China's economy together with me.
DRIVING THE DAY, the China-U.S. financial working group held its fifth meeting in Shanghai from Thursday to Friday, discussing a range of issues related to the financial policies of both countries, China's central bank said Monday.
Xuan Changneng, deputy governor of the People's Bank of China (PBOC) and Brent Neiman, deputy under secretary for international finance at the U.S. Department of the Treasury co-chaired the meeting.
The two sides had professional, pragmatic, candid and constructive communication on a range of financial policy topics of mutual interest, including the broader strategy of further deepening comprehensive reforms as discussed at the third plenary session of the 20th Central Committee of the Communist Party of China, the central bank said.
The discussions also covered the economic and financial situation, monetary policies, financial stability and regulation, securities and capital markets, cross-border payments and data, international financial governance, financial technology, sustainable finance, as well as anti-money laundering and counter-terrorism financing.
During the meeting, a group of technical experts presented a report on various topics, including disposal mechanisms for global systemically important banks, operational resilience of financial institutions, climate risk stress testing, and supervision of cross-border financial services, according to the bank.
China and U.S. financial institutions also held their first roundtable meeting under the framework of the China-U.S. financial working group. Focusing on sustainable finance, participating members shared their experiences and practices and exchanged views on potential cooperation opportunities.
During the meeting, the PBOC and the U.S. Department of the Treasury signed an exchange of letters to enhance cooperation on financial stability. They also exchanged lists of financial stability contacts to ensure timely and unobstructed communication between their financial regulatory authorities during financial stress incidents and operational risks of financial institutions, thereby reducing uncertainty.
The central bank said the two sides agreed to maintain communication.
MEANWHILE, China will impose anti-dumping duties on halogenated butyl rubber originating from the United States, the European Union (EU), the United Kingdom (UK) and Singapore from Tuesday, the Ministry of Commerce announced Monday.
Duties ranging from 23.1 to 75.5 percent will be levied toward the related companies for a five-year period, according to the ministry.
In August 2018, five-year anti-dumping duties on halogenated butyl rubber from the United States, the EU and Singapore were imposed.
If anti-dumping measures are terminated, the dumping of halogenated butyl rubber into China may continue or reoccur, and may continue to cause damage to China's related industry, the ministry said in a final ruling based on an anti-dumping investigation launched in August 2023.
Halogenated butyl rubber is mainly used in products including airtight layers of tubeless tires, heat-resistant inner tubes, as well as medicinal bottle stoppers, shockproof pads, adhesives and sealing materials.
IN ADDITION, the National Immigration Administration (NIA) said In the first seven months of this year, the number of foreign visitors to China soared 129.9 percent year on year to 17.25 million, NIA deputy head Liu Haitao said Monday.
Meanwhile, a total of 341 million cross-border travels were recorded, up 62.34 percent from the same period of last year.
The foreign visitors are estimated to boost consumption topping 100 billion yuan (about 14 billion U.S. dollars) in total, with a per capita daily average consumption volume of nearly 3,500 yuan, Liu said.
During the period, 846,000 port visas were issued to foreign nationals who have urgent needs to enter China but do not have enough time to apply for visas at Chinese embassies or consulates abroad. The figure rose 183 percent year on year.
ALSO ON MONDAY, tax data revealed a 6 percent year-on-year growth in the sales revenue of industrial companies nationwide in July, 1.7 percentage points higher than that recorded in the second quarter, State Taxation Administration said on Monday.
Specifically, the mining sector's sales revenue rebounded last month, rising by 9.7 percent due to increased bulk commodity prices.
The manufacturing sector saw a 5.7 percent growth in sales revenue, driven primarily by raw material processing and equipment manufacturing.
Sales revenue of the electricity generation and supply sector increased by 5.6 percent in July as China entered its peak season of power consumption.
From January to July, the number of new taxpaying business entities rose by 7.3 percent from a year earlier, the administration said.
FYI: The Chinese mainland summer box office topped 10 billion yuan (about 1.4 billion U.S. dollars) over the weekend, with previously released blockbusters such as "Successor" continuing their momentum and several newcomers adding more impetus to the market.
According to ticketing platform data, the accumulated season box office on the Chinese mainland had surpassed the 10-billion-yuan mark by late Saturday night.
All top-three titles were released over a month ago.
"Successor," starring the acclaimed comedic duo Shen Teng and Ma Li, has dominated this year's summer movie season and ranked third on the annual box office chart with a revenue of over 3.1 billion yuan.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 0.49% on Monday
China’s benchmark Shanghai Composite Index (000001.SH) gained 0.49% on Monday, while the Shenzhen Component Index (399001.SZ) rose 0.08%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 0.27% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 0.14%.
China's benchmark interbank gold prices higher Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 566.5 yuan (about 79.33 U.S. dollars) per gram, 0.58 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 0.48 yuan from the previous trading day to 566.14 yuan.
Chinese yuan strengthens to 7.1415 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 49 pips to 7.1415 against the U.S. dollar Monday, 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 loses 0.8 pct higher
Hong Kong stock market ended higher Monday with the benchmark Hang Seng Index up 0.8 percent to close at 17,569.57 points.
The Hang Seng China Enterprises Index jumped 1.04 percent to end at 6,225.86 points, and the Hang Seng Tech Index rose 1.68 percent to close at 3,517.09 points.
China's central bank conducts reverse repos Monday
China's central bank conducted 52.1 billion yuan (7.3 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.7 percent Monday.
The move aims to keep liquidity reasonable and ample in the banking system, the central bank said.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for January 2025 delivery lost 15 yuan (about 2.1 U.S. dollars) to close at 13,400 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 488,865 lots with a turnover of 32.6 billion yuan.
Sugar futures closed higher Monday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery gained 11 yuan (1.54 U.S. dollars) to close at 5,662 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 326,345 lots with a turnover of 18.72 billion yuan.
Iron ore futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery gained 5 yuan (about 70 U.S. cents) to close at 712 yuan per tonne.
On Monday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 739,013 lots, with a turnover of about 51.98 billion yuan.
No.1 soybean futures closed lower on Monday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery dipped 10 yuan (about 1.4 U.S. dollars) to close at 4,252 yuan per tonne.
On Monday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 84,317 lots, with a turnover of about 3.65 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.
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