Everything You Need to Know About China's Economy on Thursday (July 18)
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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, the 20th Central Committee of the Communist Party of China (CPC) adopted a resolution on further deepening reform comprehensively to advance Chinese modernization at its third plenary session held here from Monday to Thursday.
Here are some key take ways:
The Political Bureau of the CPC Central Committee presided over the meeting. General Secretary of the CPC Central Committee Xi Jinping delivered important addresses, according to a communique released Thursday.
At the session, the Central Committee heard and discussed a report on the work of the Political Bureau, presented by Xi on behalf of the Political Bureau, and considered and adopted the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization. Xi delivered explanatory remarks on the draft version of the resolution.
The overall objectives of further deepening reform comprehensively are to continue improving and developing the system of socialism with Chinese characteristics and modernize China's system and capacity for governance, according to the communique.
"By 2035, we will have finished building a high-standard socialist market economy in all respects, further improved the system of socialism with Chinese characteristics, generally modernized our system and capacity for governance, and basically realized socialist modernization," it said.
All of this will lay a solid foundation for building China into a great modern socialist country in all respects by the middle of this century, it noted.
The reform tasks laid out in the resolution shall be completed by the time the People's Republic of China celebrates its 80th founding anniversary in 2029, said the communique.
The Central Committee made systematic plans for further deepening reform comprehensively, it added.
In building a high-standard socialist market economy, the role of the market must be better leveraged, with a fairer and more dynamic market environment to be fostered and resource allocation to be made as efficient and productive as possible. Restrictions on the market will be lifted while effective regulation will be ensured to better maintain order in the market and remedy market failures, said the communique.
In promoting high-quality development, the communique urged deepening supply-side structural reform, improving incentive and constraint mechanisms for promoting high-quality development, and creating new drivers and strengths for realizing growth.
"We will improve the institutions and mechanisms for fostering new quality productive forces in line with local conditions, for promoting full integration between the real economy and the digital economy, for developing the service sector, for modernizing infrastructure, and for enhancing the resilience and security of industrial and supply chains," it stated.
In supporting all-around innovation, the Party will deepen comprehensive reform in education, structural scientific and technological reform, and institutional reforms for talent development.
In improving macroeconomic governance, the communique urged pursuing coordinated reforms in the fiscal, tax, financial, and other major sectors and enhancing the consistency of macro policy orientation, with the national strategic planning system and policy coordination mechanisms to be improved.
On integrated urban and rural development, the Party must promote equal exchanges and two-way flows of production factors between the cities and the countryside, so as to narrow the disparities between the two and promote their common prosperity and development, according to the communique. Reform of the land system will be deepened, it added.
Describing opening up as a "defining feature of Chinese modernization," the communique said that the Party will "steadily expand institutional opening up, deepen the foreign trade structural reform, further reform the management systems for inward and outward investment, improve planning for regional opening up, and refine the mechanisms for high-quality cooperation under the Belt and Road Initiative."
ALSO ON THURSDAY, China's National Disaster Reduction Commission on Thursday activated a Level-IV emergency response to flooding in the northwestern Shaanxi Province.
The commission has also dispatched a team to guide and assist local governments with disaster relief and rescue efforts to ensure the basic needs of the affected residents, according to the Ministry of Emergency Management.
China's weather authorities on Thursday renewed a yellow alert, the third-most severe warning, for rainstorms in several regions in the country, including the southern area of Shaanxi.
According to the forecast, heavy to torrential rains are expected to hit the southern and southwestern parts of Shaanxi from Wednesday to Saturday. In response, the State Flood Control and Drought Relief Headquarters on Wednesday activated a Level-IV emergency response in the province.
The Level-IV response is the lowest in China's four-tier emergency response system.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 0.48% on Thursday
China’s benchmark Shanghai Composite Index (000001.SH) gained 0.48% on Thursday, while the Shenzhen Component Index (399001.SZ) rose 0.5%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.88% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 1.25%.
Chinese yuan strengthens to 7.1285 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 33 pips to 7.1285 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 576.9 yuan (about 80.93 U.S. dollars) per gram, 7.7 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 6.55 yuan from the previous trading day to 577.37 yuan.
China's central bank conducts reverse repos Thursday
China's central bank conducted 49 billion yuan (about 6.87 billion 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 central bank said.
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 September 2024 delivery gained 125 yuan (about 17.54 U.S. dollars) to close at 14,715 yuan per tonne.
On Thursday, the total trading volume for five listed cotton futures contracts on the ZCE was 293,521.0 lots with a turnover of 21.57 billion yuan..
Sugar futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery gained 1 yuan (14.03 U.S. cents) to close at 6,135 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 326,447.0 lots with a turnover of 19.78 billion yuan.
Iron ore futures closed lower on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery dipped 7.5 yuan (about 1.05 U.S. dollars) to close at 811.5 yuan per tonne.
On Thursday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 416,174 lots, with a turnover of about 33.24 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 September 2024 delivery dipped 16 yuan (about 2.24 U.S. dollars) to close at 4,516 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 73,286 lots, with a turnover of about 3.3 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.