Everything You Need to Know About China's Economy on Wednesday (April 17)
Your Daily & Trustworthy Updates on the Chinese Economy
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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, China-U.S. economic working group convenes fourth meeting. Readout of China's Ministry of Finance here (Chinese version).
Following is the English version published by Chinese official media:
The China-U.S. economic working group held its fourth meeting on Tuesday in Washington D.C., China's Ministry of Finance (MOF) said Wednesday.
The meeting was co-chaired by China's Vice Minister of Finance Liao Min and Jay Shambaugh, Under Secretary of the U.S. Department of the Treasury, the MOF said in a statement.
Focusing on implementing the important consensus reached by the lead persons, the two sides conducted in-depth, pragmatic and constructive communication on the macroeconomic situations and balanced growth in the two countries and the world, as well as arrangements for future communication.
The Chinese side expressed concern over the U.S. economic and trade restrictions against China, and made further responses on the issue of production capacity.
The two sides agreed to maintain communication and exchanges.
ALSO ON WEDNESDAY, China’s Caixin Media said China’s Nuclear Power Investment Hits New High
China’s investment in nuclear power grew 40.2% in 2023 to a high of 94.9 billion yuan ($13.1 billion), as the country continues its push toward decarbonizing its electricity generation system, according to the China Nuclear Energy Development Report (2024) blue book released this week.
Meanwhile, China Daily also reported that the country is expected to further expand its installed nuclear power capacity, which will account for 10 percent of China's total power output in 2035, up from 5 percent in 2021 and equivalent to reducing 900 million metric tons of carbon dioxide,
The share of nuclear power generation is expected to reach 18 percent by 2060, which is similar to the current average level for members of the Organisation for Economic Cooperation and Development (OECD), it said.
MEANWHILE, U.S. carmaker Tesla Inc. said it will break ground in May on its new mega factory project capable of producing 10,000 Megapacks a year in Shanghai.
As Tesla's first energy storage mega factory project outside the U.S. market, it is expected to go into mass production in the first quarter of 2025.
The factory will initially produce 10,000 Megapack units every year, equal to nearly 40 GWh of energy storage.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 2.14% on Wednesday
China’s benchmark Shanghai Composite Index (000001.SH) gained 2.14% on Wednesday, while the Shenzhen Component Index (399001.SZ) rose 2.48%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 2.42% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 2.11%.
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 564.26 yuan (about 79.45 U.S. dollars) per gram, up 3.90 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above rose 3.82 yuan from the previous trading day to 562.50 yuan.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.6 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 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.
Chinese yuan strengthens to 7.1025 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 3 pips to 7.1025 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 Hang Seng Index closes 0.02 pct higher
Hong Kong's stock market ended higher on Wednesday with the benchmark Hang Seng Index up 0.02 percent to close at 16,251.84 points.
The Hang Seng China Enterprises Index rose 0.1 percent to end at 5,749.69 points and the Hang Seng Tech Index rose 0.07 percent to close at 3,340.22 points.
BEFORE ENDING 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 September 2024 delivery lost 290 yuan (about 40.83 U.S. dollars) to close at 16,100 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 708,043 lots with a turnover of 57.1 billion yuan.
Sugar futures closed lower Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery lost 47 yuan (about 6.62 U.S. dollars) to close at 6,252 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 430,134 lots with a turnover of 26.97 billion yuan.
Iron ore futures closed higher on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 35.5 yuan (about 5 U.S. dollars) to close at 870 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 827,780 lots, with a turnover of about 70.23 billion yuan.
No.1 soybean futures closed lower on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2024 delivery dipped 43 yuan (about 6.05 U.S. dollars) to close at 4,668 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 153,045 lots, with a turnover of about 7.16 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.