Everything You Need to Know About China's Economy on Tuesday (Nov. 5)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
WHILE YOU WERE SLEEPING, the 7th edition of the China International Import Expo (CIIE), the world's first national-level exposition dedicated to imports, opened in Shanghai.
Running from Nov. 5 to 10, the 7th CIIE has attracted 3,496 exhibitors from 129 countries and regions. It also sets a new record with 297 Fortune Global 500 companies and industry leaders attending the event.
Over 400 new products, technologies and services from around the world are being showcased on the expo, spanning sectors such as artificial intelligence, new materials, autonomous systems and energy transition technologies.
Days ago, China removed all market access restrictions for foreign investors in the manufacturing sector, with the country's new edition of its national negative list for foreign investment having taken effect on Nov. 1.
MEANWHILE, China's services trade totaled nearly 5.52 trillion yuan (about 777.29 billion U.S. dollars) between January and September, up 14.5 percent year on year, according to the Ministry of Commerce.
Services exports exceeded 2.27 trillion yuan, up 15.3 percent, and services imports rose 14 percent to over 3.24 trillion yuan, resulting in a deficit of 971.46 billion yuan.
Trade in travel-related services skyrocketed 42.8 percent to surpass 1.5 trillion yuan, and trade in knowledge-intensive services rose 5.3 percent to 2.13 trillion yuan.
ALSO ON TUESDAY, the assets of state-owned enterprises (SOEs) totaled 371.9 trillion yuan (52.37 trillion U.S. dollars) at the end of 2023, according to a State Council report submitted for deliberation at an ongoing session of the National People's Congress Standing Committee.
The assets of financial SOEs stood at 445.1 trillion yuan at the end of last year, and state-owned assets in administrative departments and public institutions came in at 64.2 trillion yuan.
China will continue to deepen SOE reforms, strengthen the financial capital's ability in serving economic development, and improve the management of state-owned assets in administrative departments and public institutions, the report said.
IN TODAY'S FINANCIAL MARKET,
Chinese shares close higher Tuesday
Chinese stocks closed higher on Tuesday, with the benchmark Shanghai Composite Index up 2.32 percent to 3,386.99 points.
The Shenzhen Component Index closed 3.22 percent higher at 11,006.94 points.
The combined turnover of the two markets exceeded 2.3 trillion yuan (about 324 billion U.S. dollars), up from 1.69 trillion yuan recorded on the previous trading day.
Over 5,000 shares reported gains, led by stocks in sectors of aerospace, software development and insurance.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 4.75 percent to close at 2,289.84 points Tuesday.
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 622.5 yuan (about 87.66 U.S. dollars) per gram, 5.79 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 4.19 yuan from the previous trading day to 623.48 yuan.
Chinese yuan strengthens to 7.1016 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 187 pips to 7.1016 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 Hang Seng Index closes 2.14 pct higher
Hong Kong's stock market ended higher on Tuesday with the benchmark Hang Seng Index up 2.14 percent to close at 21,006.97 points.
The Hang Seng China Enterprises Index rose 2.56 percent to end at 7,556.62 points, and the Hang Seng Tech Index hiked 3.57 percent to 4,693.85 points.
China's central bank conducts reverse repos Tuesday
China's central bank conducted 18.3 billion yuan (about 2.58 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Tuesday.
The move aims to keep liquidity in the banking system adequate at a reasonable level, the central bank said.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Iron ore futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for January 2025 delivery gained 19.5 yuan (about 2.75 U.S. dollars) to close at 791 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 444,023 lots, with a turnover of about 39.42 billion yuan.
Sugar futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery lost 50 yuan (7.04 U.S. dollars) to close at 5,815 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 386,913 lots with a turnover of 22.46 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 January 2025 delivery dipped 14 yuan (about 1.97 U.S. dollars) to close at 3,980 yuan per tonne.
On Tuesday, the total trading volume of five listed No.1 soybean futures contracts on the exchange was 73,673 lots, with a turnover of about 2.94 billion yuan.
Cotton futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active cotton contract for January 2025 delivery lost 70 yuan (about 9.86 U.S. dollars) to close at 14,020 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 289,718 lots with a turnover of 20.36 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.