Everything You Need to Know About China's Economy on Tuesday (Nov. 26)
Your Daily & Trustworthy Updates on the Chinese Economy
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Today is Tuesday. This is TIAN in Beijing.
Welcome to monitor the pulse of China's economy together with me.
DRIVING THE DAY, China will roll out stricter penalties for those involved in telecom and internet fraud starting Dec. 1, as authorities seek to clamp down on a surge in such crimes, officials said.
A new guideline, known as "joint punishment measures for telecommunications and internet fraud and related crimes," has been jointly issued by the Ministry of Public Security (MPS), the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the People's Bank of China.
Set to take effect on Dec. 1, the new measures aim to strengthen the enforcement of the country's anti-telecom and online fraud law.
Telecom and network fraud has surged largely due to a thriving underground economy that supports such illegal activities, according to Zheng Xiang, deputy head of the Criminal Investigation Bureau of the MPS.
Operators in these black and grey markets facilitate fraud by renting or selling SIM cards and bank accounts, trading personal information, promoting online traffic, developing software and engaging in money laundering schemes, he explained.
Targeting various aspects of telecom fraud, the guideline encompasses 18 articles, establishing criteria for identifying offenders and outlining proportional punishment.
Offenders could face financial, telecom and credit restrictions lasting up to three years, depending on the severity of their involvement, according to the guideline. For repeat offenders, penalties may extend to five years.
MEANWHILE, China aims to achieve a 5G user penetration rate of more than 85 percent by the end of 2027, as the world's second-largest economy accelerates the large-scale applications of 5G technologies.
By that point, there will be 38 5G base stations for every 10,000 people, 5G will account for 75 percent of mobile internet traffic, and the number of Internet of Things terminals connected by 5G in the country will exceed 100 million, according to an action plan formulated by multiple government departments.
Meanwhile, the penetration rate of 5G technologies in large and medium-sized industrial firms will reach 45 percent by the end of 2027, according to the plan.
The plan is designed to vigorously promote the large-scale development of 5G applications, accelerate the development of new quality productive forces, facilitate the popularization and application of new-generation information technology, and strengthen the new driving forces for high-quality economic and social development.
It strives to promote the integration and innovation of digital technologies and support the nation's new industrialization and modernization of the information and communication industry.
As of the end of September this year, the number of 5G base stations in China reached about 4.09 million. Meanwhile, the number of 5G mobile subscribers hit 981 million, according to data from the Ministry of Industry and Information Technology. With a population of around 1.4 billion, the nation's 5G user penetration rate has reached around 70 percent.
ALSO ON TUESDAY, the output of China's first national-level shale oil demonstration zone, lotcated in Xinjiang Uygur Autonomous Region, has exceeded 1 million tonnes so far this year, China National Petroleum Corporation (CNPC) announced.
A total of 306 wells have been built in the Jimsar national-level shale oil demonstration zone in the Junggar Basin of Xinjiang since it was established four years ago. It is jointly developed by Xinjiang Oilfield and Tuha Oilfield, two subsidiaries of PetroChina under the CNPC.
The number of new shale oil wells coming on stream this year has doubled compared with 2023, according to Chen Yiwei, a geological engineer of the Xinjiang Oilfield.
Shale oil mainly refers to liquid hydrocarbons that are trapped in formations of shale rock that can be extracted for refining. It is often found in organic-rich shale and thin interlayers of carbonate rocks, sandstones and siltstones.
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IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed lower on Tuesday, with the benchmark Shanghai Composite Index down 0.12 percent to 3,259.76 points.
The Shenzhen Component Index closed 0.84 percent lower at 10,333.23 points.
The combined turnover of these two indices stood at 1.3 trillion yuan (about 181.47 billion U.S. dollars), down from 1.49 trillion yuan recorded on the previous trading day.
Dairy and logistics shares led the gains, while shares related to solid-state batteries and energy sectors were broadly lower.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.15 percent to close at 2,150.10 points.
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 615.26 yuan (about 85.56 U.S. dollars) per gram, 6.86 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 7.4 yuan from the previous trading day to 616.51 yuan.
Spot transaction prices on the interbank price inquiry market are allowed to rise or fall within 15 percent from the benchmark prices each trading day.
Chinese yuan strengthens to 7.191 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 8 pips to 7.191 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's Hang Seng Index closes 0.04 pct higher
Hong Kong stock market ended mixed on Tuesday with the benchmark Hang Seng Index up 0.04 percent to close at 19,159.20 points.
The Hang Seng China Enterprises Index fell 0.16 percent to end at 6,851.56 points, and the Hang Seng Tech Index edged down 0.31 percent to close at 4,221.99 points.
China's central bank conducts reverse repos Tuesday
China's central bank conducted 299.3 billion yuan (about 41.62 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 at the end of the month, the central bank said.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
Sugar futures closed higher Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2025 delivery gained 39 yuan (5.42 U.S. dollars) to close at 5,963 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 388,687.0 lots with a turnover of 23.05 billion yuan.
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 2.5 yuan (about 34.77 U.S. cents) to close at 783 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 320,765 lots, with a turnover of about 25.04 billion yuan.
No.1 soybean futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery gained 13 yuan (about 1.81 U.S. dollars) to close at 3,899 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 96,568 lots, with a turnover of about 3.77 billion yuan.
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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.
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