Everything You Need to Know About China's Economy on Wednesday (Sept. 4)
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Good Wednesday. This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, Shanghai Pudong Development Bank Takes Full Control of JV Following Silicon Valley Bank Collapse，Caixin reported.
Silicon Valley Bank’s joint venture in China has gain regulatory approval to reduce its registered capital by half, buy back its equity from its bankrupt partner, and rename to Shanghai Innovation Bank Co. Ltd.
Shanghai Pudong Development Bank now owns 100% of Shanghai Innovation Bank, and its registered capital is reduced from 2 billion yuan to 1 billion yuan, according to a statement by Shanghai bureau of the National Financial Regulatory Administration.
ALSO ON WEDNESDAY, China has taken a series of measures to assist domestic enterprises in resolving intellectual property (IP) disputes overseas, said the country's top IP regulator on Wednesday.
China National Intellectual Property Administration (CNIPA) said that 71 sub-centers have been established across the country to manage international IP disputes. Moreover, China has set up branch centers in five countries, aiming to guide Chinese enterprises in safeguarding their IP rights abroad.
Besides, the CNIPA has also intensified efforts on training and expert guidance, said the administration, emphasizing the monitoring mechanisms, particularly for industries like cross-border e-commerce.
The CNIPA has released monitoring reports and timely reminder letters to help enterprises stay aware of relevant risks. It also established an information service platform to offer comprehensive guidelines on IP protection in major countries.
"The lack of expertise, response capacity and information has become a major obstacle that hinders some of them from expanding internationally," said the CNIPA.
MEANWHILE, China provided temporary social assistance 4.18 million times during the first half of this year, according to the Ministry of Civil Affairs (MCA).
As of the end of June, the country had 40.37 million residents living on subsistence allowance, which include 6.48 million in urban areas and 33.89 million in the countryside, Wu Zengfeng, spokesperson of the MCA, said Tuesday.
The MCA has stepped up efforts to guide local authorities in effectively carrying out dynamic monitoring of low-income populations and implementing tiered, classified social assistance, Wu noted.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.67% on Wednesday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.67% on Wednesday, while the Shenzhen Component Index (399001.SZ) fell 0.51%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 0.4% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 0.11%.
China's benchmark interbank gold prices higher Wednesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 569.8 yuan (about 80.09 U.S. dollars) per gram, 0.03 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 0.78 yuan from the previous trading day to 571.48 yuan.
Chinese yuan weakens to 7.1148 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 36 pips to 7.1148 against the U.S. dollar Wednesday, 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 1.1 pct lower
Hong Kong's stock market ended lower Wednesday with the benchmark Hang Seng Index down 194.15 points, or 1.1 percent, to close at 17,457.34 points.
The Hang Seng China Enterprises Index fell 1.12 percent to end at 6,133.98 points, and the Hang Seng Tech Index dropped 0.39 percent to 3,482.84 points.
China's central bank conducts reverse repos Wednesday
China's central bank conducted 700 million yuan (about 98.39 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.7 percent Wednesday.
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 lower Wednesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for January 2025 delivery lost 150 yuan (about 21.08 U.S. dollars) to close at 13,565 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 713,315.0 lots with a turnover of 48.93 billion yuan.
Sugar futures closed lower Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery lost 43 yuan (6.04 U.S. dollars) to close at 5,568 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 438,747.0 lots with a turnover of 24.56 billion yuan.
Iron ore futures closed lower on Wednesday in daytime trading at the Dalian Commodity Exchange .
The most active iron ore contract for January 2025 delivery dipped 22 yuan (about 3.09 U.S. dollars) to close at 689.5 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 742,623 lots, with a turnover of about 51.78 billion yuan.
No.1 soybean futures closed higher on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery gained 26 yuan (about 3.65 U.S. dollars) to close at 4,293 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 115,987 lots, with a turnover of about 4.99 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.