Everything You Need to Know About China's Economy on Tuesday (May 21)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Tuesday! This is TIAN in Shenzhen.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, China's online retail sales up 11.5 pct in January-April period.
China's online retail sales saw steady expansion in the first four months of 2024, with emerging growth forces continuing to boost consumption, official data showed on Tuesday.
The country's online retail sales rose 11.5 percent year on year to 4.41 trillion yuan (about 620.52 billion U.S. dollars) during the period, according to the Ministry of Commerce.
Specifically, online retail sales of physical goods climbed 11.1 percent year on year to 3.74 trillion yuan, contributing 23.9 percent of China's retail sales of consumer goods, the ministry said.
The country's consumption of key online services monitored by the ministry jumped 25.1 percent year on year in the same period, and its consumption of digital, green and health commodities also grew rapidly.
In April, China's online sales of home appliances and furniture increased 9.3 percent and 12.2 percent, respectively, supported by the country's consumer goods trade-in policy.
MEANWHILE, Chinese firms inked services outsourcing contracts worth a total of nearly 781.43 billion yuan (about 110 billion U.S. dollars) in the four-month period, up 14.4 percent year on year, the Ministry of Commerce said on Tuesday.
The executed contract value stood at 520.51 billion yuan, a year-on-year increase of 12.9 percent.
Of the total, the value of offshore service outsourcing contracts rose 8.6 percent year on year to 419.04 billion yuan.
In the January-April period, the industry welcomed about 301,000 new hires, with 84.7 percent of these individuals holding a university degree or above.
Outsourcing refers to hiring an outside party to carry out services or produce goods typically undertaken by in-house employees.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.42% on Tuesday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.42% on Tuesday, while the Shenzhen Component Index (399001.SZ) fell 0.71%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 0.7% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 0.77%.
China's benchmark interbank gold prices higher Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 572.65 yuan (about 80.6 U.S. dollars) per gram, 12.15 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 12.36 yuan from the previous trading day to 573.80 yuan.
Chinese yuan weakens to 7.1069 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 27 pips to 7.1069 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.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.42 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 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.
Hong Kong's Hang Seng Index closes 2.12 pct lower
Hong Kong's stock market ended lower on Tuesday, with the benchmark Hang Seng Index down 2.12 percent to close at 19,220.62.
The Hang Seng China Enterprises Index fell 2.07 percent to end at 6,820.97, and the Hang Seng Tech Index slumped 3.74 percent to close at 3,980.63.
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 September 2024 delivery gained 35 yuan (about 4.92 U.S. dollars) to close at 15,340 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 343,845 lots with a turnover of 26.29 billion yuan.
Sugar futures closed higher Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery gained 33 yuan (4.64 U.S. dollars) to close at 6,206 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 516,332 lots with a turnover of 31.97 billion yuan.
Iron ore futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 15 yuan (about 2.11 U.S. dollars) to close at 908 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 453,749 lots, with a turnover of about 40.57 billion yuan.
No.1 soybean futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for July 2024 delivery dipped 5 yuan (about 70 U.S. cents) to close at 4,656 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 105,718 lots, with a turnover of about 4.93 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.