Everything You Need to Know About China's Economy on Friday (July 18)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is Tian in Beijing, welcoming you to your Friday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA INTRODUCES MEASURES TO ENCOURAGE REINVESTMENT BY FOREIGN-FUNDED COMPANIES.
China has rolled out new measures to encourage reinvestment by foreign-funded enterprises, according to a circular jointly released by seven government bodies, including the National Development and Reform Commission.
According to the circular, the measures cover a wide range of areas, including stronger project support services, streamlined procedures for setting up new reinvested entities, and innovative financial products and services.
These efforts aim to help foreign-funded companies deepen their presence and achieve long-term development in the Chinese market, according to the commission.
The circular clarifies the applicable scope of the incentive measures and outlines requirements such as launching pilot programs on investment information reporting by foreign-funded companies, enhancing information sharing among authorities, and improving evaluation methods for promoting foreign investment.
ALSO ON FRIDAY, CHINA IMPORTS 7.4 TRLN YUAN OF CONSUMER GOODS IN 2021-2024.
China imported consumer goods worth 7.4 trillion yuan (about 1.03 trillion U.S. dollars) between 2021 and 2024, the first four years of the 14th Five-Year Plan period (2021-2025), China's Commerce Minister Wang Wentao told a press conference Friday.
Citing figures of the World Trade Organization, he said goods imports by the Chinese mainland and China's Hong Kong Special Administrative Region accounted for about 13.3 percent of global imports in 2024 -- close to the United States' 13.6 percent.
China is thus the world's second-largest import market, almost on par with the United States, as well as a major export destination for nearly 80 countries and regions, the minister said.
To encourage more quality goods and services into the Chinese market, Wang said China has fostered international consumption center cities, established national demonstration zones for innovation and promotion of imports, and hosted major expos such as the China International Import Expo and the China International Consumer Products Expo.
MEANWHILE,CHINA'S RETAIL SALES OF CONSUMER GOODS GROW 5.5 PCT ANNUALLY SINCE 2021.
The retail sales of consumer goods in China grew 5.5 percent on average annually over the past four years, and are expected to top 50 trillion yuan (about 7 trillion U.S. dollars) in 2025, Chinese Minister of Commerce Wang Wentao said Friday.
The retail sales of consumer goods in China rose to 48.3 trillion yuan in 2024 from 39.1 trillion yuan in 2020, Wang said.
According to the World Bank, in terms of actual purchasing power, China's retail sales of consumer goods surpassed that of the United States, reaching 1.6 times the level of the United States last year.
Consumption has contributed around 60 percent of China's economic growth on average annually over the past four years, and the role of consumption as the economy's main engine has continued to strengthen, Wang said.
Sales revenue under trade-in programs in China has surpassed 2.9 trillion yuan as of the end of June.
China's service consumption continues to grow rapidly, with household spending on services reaching 46.1 percent last year, according to Wang.
During the 15th Five-Year Plan period (2026-2030), China will continue to reduce restrictive measures in the service consumption sector, Wang said.
From 2021 to 2024, China imported consumer goods worth 7.4 trillion yuan, demonstrating the significant contribution of its vast market to global development.
IN TODAY'S FINANCIAL MARKET，
Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 0.5 percent to 3,534.48 points.
The Shenzhen Component Index closed 0.37 percent higher at 10,913.84 points.
The combined turnover of these two indices stood at 1.57 trillion yuan (about 219.6 billion U.S. dollars), up from 1.54 trillion yuan the previous trading day.
Stocks related to rare earth permanent magnet and lithium mining led the gains, while stocks in the games and photovoltaic sectors suffered major losses.
The ChiNext Index, which tracks China's Nasdaq-style board of growth enterprises, gained 0.34 percent to close at 2,277.15 points on Friday.
Hong Kong stocks close higher
Hong Kong's stock market ended higher Friday with the benchmark Hang Seng Index up 1.33 percent to close at 24,825.66 points.
The Hang Seng China Enterprises Index rose 1.51 percent to end at 8,986.47 points, and the Hang Seng Tech Index climbed 1.65 percent to 5,538.83 points.
Chinese yuan weakens to 7.1498 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 37 pips to 7.1498 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 benchmark interbank gold prices mixed Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 771.37 yuan per gram, 1.28 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above was down 1.49 yuan from the previous trading day to 770.91 yuan.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Iron ore futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery gained 3 yuan (about 42 U.S. cents) to close at 785 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 680,055 lots, with a turnover of about 53.44 billion yuan.
Cotton futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 115 yuan (about 16.08 U.S. dollars) to close at 14,270 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 489,983 lots with a turnover of 34.83 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 September 2025 delivery dipped 5 yuan (about 70 U.S. cents) to close at 4,189 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 206,735 lots, with a turnover of about 8.64 billion yuan.
Sugar futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 12 yuan (about 1.68 U.S. dollars) to close at 5,826 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 203,242 lots with a turnover of 11.79 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.