Everything You Need to Know About China's Economy on Friday (April 19)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Friday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, China's non-financial outbound direct investment (ODI) came in at 34.2 billion U.S. dollars in the first quarter of this year, up 12.5 percent year on year, official data showed on Friday.
The investment in members of the Association of Southeast Asian Nations (ASEAN) and European Union saw rapid growth, jumping 36.7 percent and 34.5 percent from the same period a year earlier, respectively, according to the Ministry of Commerce.
The non-financial outbound investment in countries participating in the Belt and Road Initiative reached 54.32 billion yuan, increasing 12 percent year on year and accounting for 22.4 percent of the total ODI in the January-March period.
In the first three months, ODI in leasing and business services surged 45.5 percent year on year, while that in manufacturing saw a rapid increase of 36.4 percent, the data revealed.
The turnover of contracted projects overseas rose 6.1 percent year on year to 230.13 billion yuan.
MEANWHILE, official data showed that the number of newly established foreign-invested firms in China hit 12,000 in the first quarter (Q1) of 2024, up 20.7 percent year on year.
In terms of the structure of foreign direct investment (FDI), the country's high-tech manufacturing sector attracted 12.5 percent of the FDI inflow in the first quarter, up 2.2 percentage points compared to that in the same period last year.
In Q1, the actual FDI in China stood at 301.67 billion yuan (about 42.46 billion U.S. dollars), which remained at a high level, Guo said at a press conference in Beijing.
ALSO ON FRIDAY, Huawei’s Smartphone Comeback Tour Rolls On as New Pura 70 Models Sell Out, China’s Caixin Media reported.
Huawei Technologies Co. Ltd.’s latest Pura 70 series smartphones are flying off the shelves after their release on Thursday morning, underscoring the momentum of the Chinese telecom equipment giant’s comeback in the sector.
Initial batches of the Pura 70 Ultra and Pura 70 Pro — two out of the four models that went on sale first — sold out on Huawei’s online store on the first day. Prices were 9,999 yuan ($1,381) for the Ultra and 7,999 yuan for the Pro, according to Huawei’s website.
IN TODAY'S FINIANCIAL MARKET,
Shanghai Composite Index Fell 0.29% on Friday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.29% on Friday, while the Shenzhen Component Index (399001.SZ) fell 1.04%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 2.03% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 1.76%.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.5 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Friday.
The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said in a statement.
China's benchmark interbank gold prices mixed Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 563.17 yuan (about 79.27 U.S. dollars) per gram, down 1.33 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above fell 1.09 yuan from the previous trading day to 563.37 yuan.
Chinese yuan weakens to 7.1046 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 26 pips to 7.1046 against the U.S. dollar Friday, 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 0.99 pct lower
Hong Kong's stock market ended lower on Friday with the benchmark Hang Seng Index down 0.99 percent to close at 16,224.14 points.
The Hang Seng China Enterprises Index fell 0.99 percent to end at 5,746.61 points, the Hang Seng Tech Index dropped 2.35 percent to close at 3,278.06 points.
BEFORE ENDING TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES,
Cotton futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active cotton contract for September 2024 delivery lost 195 yuan (about 27.45 U.S. dollars) to close at 15,825 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 525,071 lots with a turnover of 41.63 billion yuan.
Sugar futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery gained 15 yuan (about 2.11 U.S. dollars) to close at 6,216 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 467,869 lots with a turnover of 29.12 billion yuan.
No.1 soybean futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2024 delivery dipped 2 yuan (about 28 U.S. cents) to close at 4,667 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 116,446 lots, with a turnover of about 5.4 billion yuan.
Iron ore futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery dipped 3 yuan (about 42 U.S. cents) to close at 871 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 633,633 lots, with a turnover of about 54.92 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.
I'm a 72 y/o American, retired. The corrupt American regime is trying to destroy China because they can't compete against the Chinese in the market. The same "market" that the Americans are always praising. I look forward to getting your posts regarding China. Thanks!