Everything You Need to Know About China's Economy on Friday (March 29)
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, foreigners make nearly 3 million inbound, outbound trips to China in Jan-Feb, which marks a notable increase of 2.3 times compared to the previous period and a recovery reaching 41.5 percent of the level prior to the COVID-19 pandemic, data from the National Immigration Administration suggests.
The increase is attributed in part to the visa-free entry policy China recently extended for countries including France, Germany, Italy, the Netherlands, Spain, Malaysia and Singapore, as there was a significant increase in tourists from these countries during the Spring Festival period, said the administration.
FYI, China’s export value of services totaled 194.7 billion yuan while the import value of services amounted to 320 billion yuan, producing a deficit of 125.4 billion yuan, the State Administration of Foreign Exchange said Friday.
Tourism was the biggest services trade contributor, with trade value of 142.5 billion yuan, official data showed.
MEANWHILE, China’s “big three” state-owned airlines remained in the red in 2023, despite narrowing losses from 2022, as international travel continued to lag pre-pandemic levels, China’s Caixin Media reported.
Shanghai-based China Eastern Airlines Corp. reported a 8.17 billion yuan ($1.13 billion) loss for 2023. Its revenue leapt 145.6% to 113.7 billion yuan, according to stock exchange filings released Thursday.
Guangzhou-based China Southern Airlines Co. Ltd. (600029.SH) booked a deficit of 4.2 billion yuan for 2023. Its revenue jumped 83.7% to 159.9 billion yuan.
Flagship carrier Air China Ltd. reported a 1.05 billion yuan net loss, according to stock exchange filings.
ALSO ON FRIDAY, the China Association of Medical Equipment said China's medical equipment market totaled 1.27 trillion yuan (179 billion U.S. dollars) in market capitalization in 2023.
According to the association, the figure is 10.4 percent higher than that of the previous year. China has remained the world's second-largest single market for medical equipment.
In 2023, there were 138,000 medical equipment patent applications in China, representing 67 percent of all such patent applications in the world, said the association.
IN TODAY'S FINIANCIAL MARKET,
Shanghai Composite Index Rose 1.01% on Friday
China’s benchmark Shanghai Composite Index (000001.SH) gained 1.01% on Friday, while the Shenzhen Component Index (399001.SZ) rose 0.62%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 0.07% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.63%.
China's central bank adds liquidity via reverse repos
China's central bank conducted 150 billion yuan (about 21.14 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Friday.
The move aims to keep liquidity in the banking system stable at the end of the quarter, the People's Bank of China said in a statement.
China's benchmark interbank gold prices higher Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 516 yuan (about 72.73 U.S. dollars) per gram, up 9.99 yuan from the previous trading day, while the price for gold that is 99.99 percent pure or above gained 2.86 yuan from the previous trading day to 518.8 yuan.
Chinese yuan weakens to 7.0950 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 2 pips to 7.0950 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.
BEFORE ENDING TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES,
Cotton futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for May 2024 delivery gained 210 yuan (about 29.60 U.S. dollars) to close at 16,085 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 489,363 lots with a turnover of 39.39 billion yuan.
Sugar futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for May 2024 delivery gained 50 yuan (7.05 U.S. dollars) to close at 6,510 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 387,608 lots with a turnover of 25.1 billion yuan.
No.1 soybean futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2024 delivery gained 12 yuan (about 1.69 U.S. dollars) to close at 4,766 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 106,221 lots, with a turnover of about 5.05 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 18.5 yuan (about 2.61 U.S. dollars) to close at 740 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 847,242 lots, with a turnover of about 64.16 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.