Everything You Need to Know About China's Economy on Tuesday (Sept. 10)
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's services outsourcing industry has witnessed continuous rapid growth in recent years, becoming an important engine driving the country's services exports, official data showed.
From 2013 to 2023, the total annual value of offshore services outsourcing contracts inked by Chinese firms rose from 62.3 billion U.S. dollars to 215.4 billion U.S. dollars, growing at an annual average rate of 13.2 percent, according to the Ministry of Commerce.
In 2023, the executed contract value of offshore services outsourcing totaled 151.4 billion U.S. dollars, which was a year-on-year increase of 10.6 percent and accounted for 40 percent of China's overall services exports in the year, according to the ministry.
By the end of July of this year, China's services outsourcing industry had created jobs for 16.34 million people, 10.67 million of whom hold a university degree or qualification above that level.
MEANWHILE, China's auto sales grew 3 percent year on year in the first eight months of 2024, data from the China Association of Automobile Manufacturers showed Tuesday.
Total sales came in at about 18.77 million units for the January-August period, the data showed.
During the period, the production of China's automakers reached 18.67 million vehicles, up 2.5 percent year on year.
In August alone, auto sales shrank 5 percent from a year ago to approximately 2.45 million units, while the output declined 3.2 percent to 2.49 million units.
ALSO ON TUESDAY, China's National Immigration Administration (NIA) has pledged to pursue more open policies to facilitate the cross-border flow of personnel and more inclusive cooperation to boost global immigration governance.
This message was delivered at a sub-forum on migration management cooperation under the 2024 Conference of Global Public Security Cooperation Forum.
The NIA also vowed to take more effective steps to tackle cross-border crimes and called on governments of all countries and the international community to intensify negotiations and implement concerted actions regarding immigration issues.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 0.28% on Tuesday
China’s benchmark Shanghai Composite Index (000001.SH) gained 0.28% on Tuesday, while the Shenzhen Component Index (399001.SZ) rose 0.13%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.77% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.06%.
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 568.40 yuan (about 79.9 U.S. dollars) per gram, 1.46 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 2.58 yuan from the previous trading day to 570.26 yuan.
Chinese yuan weakens to 7.1136 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 147 pips to 7.1136 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 0.22 pct higher
Hong Kong stock market ended higher on Tuesday with the benchmark Hang Seng Index up 0.22 percent to close at 17,234.09 points.
The Hang Seng China Enterprises Index edged up 0.39 percent to end at 6,026.34 points, and the Hang Seng Tech Index rose 0.41 percent to close at 3,450.73 points.
China's central bank conducts reverse repos Tuesday
China's central bank conducted 186 billion yuan (about 26.15 billion 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 5 yuan (about 70.29 U.S. cents) to close at 13,335 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 333,116 lots with a turnover of 22.23 billion yuan..
Sugar futures closed higher Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery gained 28 yuan (3.94 U.S. dollars) to close at 5,647 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 339,875 lots with a turnover of 19.11 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 0.5 yuan (about 7 U.S. cents) to close at 675 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 668,358 lots, with a turnover of about 45.91 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 6 yuan (about 84 U.S. cents) to close at 4,307 yuan per tonne.
On Tuesday, the total trading volume of five listed No.1 soybean futures contracts on the exchange was 80,896 lots, with a turnover of about 3.47 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.