Everything You Need to Know About China's Economy on Wednesday (July 3)
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, researchers from the University of Science and Technology of China have developed a cost-effective sulfide solid electrolyte with low density and excellent anode compatibility, marking a breakthrough in the research of solid-state batteries.
All-solid-state batteries are expected to overcome the capacity and safety issues of lithium-ion batteries. Sulfide solid electrolytes are key to making all-solid-state batteries.
However, the cost of sulfide solid electrolytes generally exceeds 195 U.S. dollars per kilogram, much higher than the 50 U.S. dollars per kilogram needed for commercialization. This issue stems from the synthesis of sulfide solid electrolytes requiring a large amount of expensive lithium sulfide (Li2S).
Researchers from the university have developed a Li7P3S7.5O3.5 (LPSO) solid electrolyte. The synthesis of this material does not need the expensive Li2S, so the cost of raw materials is only 14.42 U.S. dollars per kilogram, which lies below the 50 U.S. dollars per kilogram threshold.
ALSO ON WEDNESDAY, China kicked off the application process for global exhibitors looking to participate in the eighth China International Import Expo (CIIE), set to be held in November 2025.
Twenty-six firms headquartered in countries such as the United States, Japan and Germany signed up to participate on-site at the exhibition recruitment launch ceremony in Nanning, the capital city of southwest China's Guangxi Zhuang Autonomous Region. Their exhibition area would total approximately 15,000 square meters.
MEANWHILE, FAW-Volkswagen Automobile Co., Ltd., a passenger car joint venture between China FAW Group Co., Ltd. and Volkswagen AG, said it has produced 28 million vehicles as of Wednesday.
The milestone 28 millionth vehicle was a new version of the Magotan model, manufactured at the company's production base in Changchun, capital of northeast China's Jilin Province.
Over the past three decades, FAW-Volkswagen has expanded from a single brand with one model to three brands offering over 30 fuel and new energy vehicle models, according to the company. It has created nearly 500,000 jobs in the process.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.49% on Wednesday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.49% on Wednesday, while the Shenzhen Component Index (399001.SZ) fell 0.59%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.38% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 0.29%.
China's benchmark interbank gold prices lower Wednesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 548.01 yuan (76.85 U.S. dollars) per gram, 0.37 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 0.3 yuan from the previous trading day to 549.5 yuan.
Chinese yuan weakens to 7.1312 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 21 pips to 7.1312 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's Hang Seng Index closes 1.18 pct higher
Hong Kong's stock market ended higher on Wednesday with the benchmark Hang Seng Index up 1.18 percent to close at 17,978.57 points.
The Hang Seng China Enterprises Index climbed 1.27 percent to end at 6,455.7 points, while the Hang Seng Tech Index jumped 2.48 percent to close at 3,626.93 points.
AT THE END OF 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 10 yuan (about 1.4 U.S. dollars) to close at 14,825 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 349,637 lots with a turnover of 25.85 billion yuan.
Sugar futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery gained 37 yuan (5.19 U.S. dollars) to close at 6,227 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 448,452 lots with a turnover of 27.63 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 21.5 yuan (about 3.01 U.S. dollars) to close at 864 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 456,530 lots, with a turnover of about 38.62 billion yuan.
No.1 soybean futures closed higher on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2024 delivery gained 16 yuan (about 2.24 U.S. dollars) to close at 4,693 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 59,146 lots, with a turnover of about 2.76 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.