Everything You Need to Know About China's Economy on Tuesday (Sept. 3)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Tuesday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, China will launch an anti-discrimination investigation into Canada's tariff hikes on electric vehicles (EVs) as well as steel and aluminum products imported from China, the Ministry of Commerce said Tuesday.
China will also launch anti-dumping investigations into rapeseed imports and certain Canadian chemical products, a spokesperson of the ministry said in an online statement.
The Canadian side adopted discriminatory unilateral restrictive measures targeting imports from China, in disregard of opposition from various parties, the spokesperson said, noting that China is strongly dissatisfied with and firmly against such moves.
China will file an appeal to the World Trade Organization (WTO) dispute settlement mechanism against these practices, according to the spokesperson.
The anti-discrimination investigation will be initiated in accordance with relevant stipulations of China's foreign trade law, and corresponding measures will be taken subsequently in light of actual conditions.
This decision came after Canada announced last week that it will implement a 100-percent surtax on all Chinese-made EVs, effective Oct. 1, 2024, and impose a 25-percent surtax on imports of steel and aluminum products from China starting Oct. 15, 2024.
MEANWHILE, China and the United States will hold the second meeting of the Working Group on Enhancing Climate Action in the 2020s, according to China's Ministry of Ecology and Environment on Tuesday.
U.S. Senior Advisor to the President for International Climate Policy John Podesta will visit China from Sept. 4 to 6 and co-chair the meeting with China's special envoy for climate change Liu Zhenmin.
The two sides are expected to hold in-depth discussions on practical cooperation within the framework of the working group, domestic climate policy actions by both countries, and multilateral efforts to address climate change.
China and the United States launched their Working Group on Enhancing Climate Action in the 2020s in January 2024.
ALSO ON TUESDAY, Lower Down Payments Boost Beijing’s Pre-owned House Sales But Prices Still Fall, Caixin Media reported.
After a policy initiative in June that lowered the down-payment requirements and mortgage rates home buyers faced, the pre-owned housing market in Beijing has seen increased sales but a decline in prices in July.
Sales of pre-owned homes reached 15,600 units in July, the highest monthly volume in 15 months, according to data from the Centaline Property Research Institute. However, in August, the initial effect of the policy diminished slightly, with sales falling by 7.8% to 14,400 units.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.29% on Tuesday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.29% on Tuesday, while the Shenzhen Component Index (399001.SZ) rose 1.17%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.74% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 1.26%.
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 569.77 yuan (about 80.12 U.S. dollars) per gram, 4.54 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 2.74 yuan from the previous trading day to 570.7 yuan.
Chinese yuan weakens to 7.1112 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 85 pips to 7.1112 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 0.23 pct lower
Hong Kong stock market ended mixed on Tuesday with the benchmark Hang Seng Index down 0.23 percent to close at 17,651.49.
The Hang Seng China Enterprises Index dipped 0.13 percent to end at 6,203.55 points, and the Hang Seng Tech Index climbed 0.29 percent to close at 3,496.49 points.
China's central bank conducts reverse repos Tuesday
China's central bank conducted 1.2 billion yuan (about 168.75 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.7 percent Tuesday.
The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said in a statement.
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 January 2025 delivery gained 100 yuan (about 14.06 U.S. dollars) to close at 13,770 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 422,104.0 lots with a turnover of 28.92 billion yuan.
Sugar futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery lost 16 yuan (2.25 U.S. dollars) to close at 5,624 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 329,947.0 lots with a turnover of 18.51 billion yuan.
Iron ore futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2025 delivery dipped 35 yuan (about 4.92 U.S. dollars) to close at 703.5 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 654,958 lots, with a turnover of about 46.62 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 January 2025 delivery gained 26 yuan (about 3.66 U.S. dollars) to close at 4,293 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 96,310 lots, with a turnover of about 4.12 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.