Everything You Need to Know About China's Economy on Wednesday (May 22)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Wednesday! This is TIAN in Hangzhou, Zhejiang Province.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, China’s First 30-Year Special Treasury Bond Halted Twice in Trading Debut as Price Surges, Caixin Media reported.
Trading in China’s first 30-year special treasury bond was suspended twice after it repeatedly hit daily limits on its secondary market debut, stock exchange announcements said.
The 40 billion yuan ($5.6 billion) bond became available for trading on the Shanghai and Shenzhen bourses on Wednesday after its initial issuance last week.
On the Shanghai Stock Exchange, the bond surged past the 10% initial daily limit shortly after opening, triggering a 30-minute trading suspension.
MEANWHILE, Finance Veteran Picked to Be President of China Life Asset Management, Caixin reported.
Huang Benyao, a veteran of PICC Asset Management Co. Ltd., is set to become president of China Life Asset Management Co. Ltd., sources with knowledge of the matter told Caixin, citing an internal announcement.
Huang is set to take over from Wang Junhui, who left China Life Asset Management to become chairman of China Life Pension Co. Ltd. last year.
The announcement of Huang’s move to China Life Asset Management came less than two months after he was promoted in April to president of PICC Asset Management. Huang, in his early 50s, holds a doctorate in economics. People close to Huang described him as a seasoned investor in insurance.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Ended Nearly Flat on Wednesday
China’s benchmark Shanghai Composite Index (000001.SH) closed nearly flat on Wednesday, while the Shenzhen Component Index (399001.SZ) rose 0.12%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.9% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.88%.
China's benchmark interbank gold prices lower Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 566.96 yuan (about 79.8 U.S. dollars) per gram, 5.69 yuan lower than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 4.84 yuan from the previous trading day to 568.96 yuan.
Chinese yuan weakens to 7.1077 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 8 pips to 7.1077 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.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.38 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Wednesday.
The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said in a statement.
Hong Kong's Hang Seng Index closes 0.13 pct lower
Hong Kong's stock market ended mixed on Wednesday, with the benchmark Hang Seng Index down 0.13 percent to close at 19,195.60.
The Hang Seng China Enterprises Index fell 0.05 percent to end at 6,817.68, and the Hang Seng Tech Index climbed 0.30 percent to close at 3,992.59.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2024 delivery gained 70 yuan (about 9.85 U.S. dollars) to close at 15,375 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 363,701 lots with a turnover of 27.91 billion yuan.
Sugar futures closed lower Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery lost 17 yuan (about 2.39 U.S. dollars) to close at 6,188 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 350,714 lots with a turnover of 21.71 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 24.5 yuan (about 3.45 U.S. dollars) to close at 921 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 467,201 lots, with a turnover of about 42.7 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 July 2024 delivery gained 11 yuan (about 1.55 U.S. dollars) to close at 4,674 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 107,903 lots, with a turnover of about 5.02 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.
Good stuff, as usual. Many thanks.
I enjoy the breadth of your reporting on the Chinese economy in the tight summaries you provide Tian. It would be interesting to know why you think 30-year special treasury bond sales surged as it did.
Looking forward to more of your insights of Chinese youth on Sino-US relations - these are very useful predictors of economic change. Turning that on its head, the attitudes of youth in other English speaking countries to China would be a goldmine for socio-econoic research.