Everything You Need to Know About China's Economy on Friday (Dec. 13)
Your Daily & Trustworthy Updates on the Chinese Economy
Subscribe for free |View in your browser |Tweet@TIANDongdong
HOWDY. It’s Friday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, the sales revenue of consumer goods has surpassed 1 trillion yuan (about 139.1 billion U.S. dollars), data from China's Ministry of Commerce showed.
As of Friday, the 2024 sales volume of passenger vehicles under the trade-in program is at 5.2 million units, according to the ministry.
Sales of home appliances had exceeded 49 million units, with sales of electric bicycles nearing 900,000 units, per the data.
At the end of 2023, people in China owned some 336 million civilian automobiles and over 3 billion major household appliances, including refrigerators, washing machines and air conditioners.
ALSO ON FRIDAY, China announced the extension of tax concessions for private pensions nationwide, following Thursday's announcement that the private pension scheme will be expanded from 36 pilot cities and regions to the entire country.
The implementation of this policy can be traced back to Jan. 1, 2024, according to a statement issued by the Ministry of Finance and the State Taxation Administration on Friday.
The private pension scheme, launched in November 2022, was piloted in 36 cities and regions including Beijing, Shanghai and Guangzhou.
MEANWHILE, China has dismantled over 100 underground banks and traced illicit financial transactions totaling over 80 billion yuan (about 11.1 billion U.S. dollars) amid a sweeping crackdown initiated in May.
Police nationwide have taken down 263 criminal groups engaged in illegal business operations, human trafficking, fraud, illegal detention and other related crimes, the Ministry of Public Security (MPS) said at a press conference on Friday.
Under the MPS's directive, mainland police, in collaboration with Macao law enforcement, carried out five coordinated raids, resulting in the arrest of 846 criminal suspects.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down 2.01 percent to 3,391.88 points.
The Shenzhen Component Index closed 2.23 percent lower at 10,713.07 points.
The combined turnover covered by the two indices stood at 2.07 trillion yuan (about 288 billion U.S. dollars), up from 1.87 trillion yuan recorded on the previous trading day.
Shares in ice and snow industries led the gains, while those related to insurance and real estate saw significant declines.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 2.48 percent to close at 2,235.26 points.
China's benchmark interbank gold prices higher Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 628.35 yuan (about 87.42 U.S. dollars) per gram, 6.05 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 4.04 yuan from the previous trading day to 628.83 yuan.
Chinese yuan weakens to 7.1876 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 22 pips to 7.1876 against the U.S. dollar Friday, 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 central bank conducts reverse repos Friday
China's central bank conducted 205.1 billion yuan (about 28.54 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Friday.
The move aims to keep liquidity in the banking system adequate at a reasonable level in the banking system, the central bank said.
Hong Kong's Hang Seng Index closes 2.09 pct lower
Hong Kong's stock market ended lower Friday with the benchmark Hang Seng Index down 2.09 percent to close at 19,971.24 points.
The Hang Seng China Enterprises Index fell 2.36 percent to end at 7,186.59 points, and the Hang Seng Tech Index fell 2.63 percent to end at 4,479.6 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
China's securities regulator OKs registration of polysilicon futures, options
China's securities regulator said that it has approved the registration of polysilicon futures and options on the Guangzhou Futures Exchange.
The China Securities Regulatory Commission said that it will urge the Guangzhou Futures Exchange to make necessary preparations that will ensure the smooth launch and stable operations of polysilicon futures and options.
Iron ore futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for May 2025 delivery dipped 9 yuan (about 1.25 U.S. dollars) to close at 797 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 442,762 lots, with a turnover of about 35.42 billion yuan.
No.1 soybean futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery dipped 3 yuan (about 42 U.S. cents) to close at 3,842 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 149,122 lots, with a turnover of about 5.75 billion yuan.
Cotton futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for May 2025 delivery lost 90 yuan (about 12.52 U.S. dollars) to close at 13,650 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 360,576 lots with a turnover of 24.68 billion yuan.
Sugar futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for May 2025 delivery lost 17 yuan (about 2.37 U.S. dollars) to close at 6,083 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 467,627 lots with a turnover of 28.62 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.