Everything You Need to Know About China's Economy on Monday (Dec. 23)
Your Daily & Trustworthy Updates on the Chinese Economy
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Hope you have enjoyed your weekend. This is TIAN in Beijing.
Welcome to monitor the pulse of China's economy together with me.
DRIVING THE DAY, the national railway operator China State Railway Group said that China's railway system achieved a new milestone last month by handling an average of over 194,000 cargo trains per day, the highest on record.
The company said the network transported 350 million metric tons of cargo last month, marking a year-on-year increase of 5.5 percent, China Daily reported.
According to the company, the steady increase in freight traffic reflects the ongoing recovery and growth of China's economy, with the railway sector playing a pivotal role as the backbone of the nation's logistics network.
Looking ahead, the company plans to continue deepening the market-oriented reforms in freight services, further tapping into the capacity of the railway system to provide efficient, eco-friendly and high-quality logistics solutions, it said.
ALSO ON MONDAY, China's 5G mobile phone subscriptions reached 1.002 billion by the end of November, data from the Ministry of Industry and Information Technology (MIIT) showed.
This figure represents 56 percent of all mobile phone subscriptions in the country, marking an increase of 9.4 percentage points compared to the end of the previous year.
MIIT figures show China had deployed about 4.2 million 5G base stations by the end of last month.
Earlier this year, industry calculations indicated that China's 5G base stations -- the relay point between mobile phones and the larger internet -- accounted for more than 60 percent of the global total.
MEANWHILE, a report on the enforcement of the Law on State-Owned Assets of Enterprises has been submitted for deliberation to an ongoing session of the Standing Committee of the National People's Congress, offering a window to better understand the current situation of the assets of China’s state-owned enterprises (SOEs):
By the end of 2023, the assets of SOEs, excluding the financial sector, totaled 371.9 trillion yuan ($51.72 trillion), said the report.
Last year, the combined revenue of SOEs nationwide stood at 85.6 trillion yuan, and the total profits amounted to 4.7 trillion yuan, reflecting a nearly threefold increase from the 2009 level.
The report also proposed establishing and improving the entrusted agency mechanism for state-owned enterprises and state capital, said the China Daily.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed lower on Monday, with the benchmark Shanghai Composite Index down 0.5 percent to 3,351.26 points.
The Shenzhen Component Index closed 1.03 percent lower at 10,537.4 points.
The combined turnover covered by the two indices stood at nearly 1.53 trillion yuan (about 213 billion U.S. dollars), up from 1.52 trillion yuan recorded on the previous trading day.
Shares in the banking and insurance sectors led the gains, while those related to AI application, gaming and media saw declines.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.98 percent to close at 2,187.94 points.
China's central bank conducts reverse repos Monday
In order to keep liquidity adequate at a reasonable level in the banking system, the People’s Bank of China conducted reverse repo operations in the amount of RMB109.6 billion through quantity bidding at a fixed interest rate on Monday, the bank said Monday.
Chinese yuan strengthens to 7.187 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 31 pips to 7.187 against the U.S. dollar Monday, 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 Hang Seng Index closes 0.82 pct higher
Hong Kong's stock market ended higher on Monday with the benchmark Hang Seng Index up 0.82 percent to close at 19,883.13 points.
The Hang Seng China Enterprises Index gained 0.98 percent to end at 7,213.85 points, and the Hang Seng Tech Index rose 0.31 percent to close at 4,457.85 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for May 2025 delivery gained 75 yuan (about 10.44 U.S. dollars) to close at 13,455 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 279,460 lots with a turnover of 18.73 billion yuan.
Sugar futures closed higher Monday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for May 2025 delivery gained 59 yuan (8.21 U.S. dollars) to close at 5,941 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 350,211.0 lots with a turnover of 20.72 billion yuan.
Iron ore futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for May 2025 delivery gained 6.5 yuan (about 90 U.S. cents) to close at 780 yuan per tonne.
On Monday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 407,799 lots, with a turnover of about 31.55 billion yuan.
No.1 soybean futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2025 delivery gained 48 yuan (about 6.68 U.S. dollars) to close at 3,845 yuan per tonne.
On Monday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 201,370 lots, with a turnover of about 7.69 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.