Everything You Need to Know About China's Economy on Wednesday (April 24)
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, official data showed that most of the capital goods monitored by China's statistical authorities registered higher prices in mid-April compared with early April.
Of the 50 major goods classified in nine categories, including seamless steel tubes, gasoline, coal, fertilizer, and some chemicals, 34 reported higher prices in the period, 16 saw price declines, according to the National Bureau of Statistics (NBS).
During the period, hog prices went down 1.3 percent, according to the NBS data.
The figures, released every 10 days, are based on a survey of nearly 2,000 wholesalers and distributors in 31 provincial-level regions across the country.
MEANWHILE, the China Chamber of Commerce to the European Union (CCCEU) has said that it is "extremely shocked and dissatisfied" after the EU conducted raids on a Chinese company's offices in Poland and the Netherlands.
The raids, which occurred without prior notice on Tuesday morning, aimed to investigate potential industry subsidies.
"They seized the company's information technology equipment and employees' mobile phones, scrutinized office documents, and demanded access to pertinent data," as revealed by the CCCEU.
The Brussels-based business group criticized the EU for the "unjustifiable, unannounced raids," pointing out the lack of prior notice and solid evidence to justify such actions. It stressed that "suspicions regarding subsidies can be followed by reasonable means of investigation."
ALSO ON WEDNESDAY, Private Equity Dealmaking in China Slumped to 10-Year Low in 2023, Bain Says, China’s Caixin Media reported.
Private equity (PE) firms in China made fewer, smaller deals on average in 2023 as PE activity slumped to a 10-year low due to a global slowdown and macroeconomic uncertainties, according to consulting firm Bain & Co.
The value of PE deals in Greater China — which includes the Hong Kong, Taiwan and Macao markets — fell 37% to $41 billion in 2023, according to Bain’s Greater China Private Equity Report 2024, which was published Wednesday.
The decline worsens to 58% when comparing last year’s value figure to the annual average from 2018 to 2022, said the report.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Rose 0.76% on Wednesday
China’s benchmark Shanghai Composite Index (000001.SH) gained 0.76% on Wednesday, while the Shenzhen Component Index (399001.SZ) rose 0.74%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 1.48% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.7%.
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 550.01 yuan (about 77.4 U.S. dollars) per gram, down 12.59 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above went down 12.54 yuan from the previous trading day to 544.01 yuan.
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 Wednesday.
The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said in a statement.
Chinese yuan strengthens to 7.1048 USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 11 pips to 7.1048 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 stocks up 2.21 pct, tech index rises over 3 pct
Hong Kong's stock market ended higher on Wednesday, with the Hang Seng Tech Index, which represents 30 largest technology companies listed in Hong Kong, rising 3.61 percent to close at 3,573.59 points.
The benchmark Hang Seng Index went up 2.21 percent to close at 17,201.27 points. The Hang Seng China Enterprises Index rose 2.45 percent to end at 6,100.22 points.
BEFORE ENDING 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 70 yuan (about 9.85 U.S. dollars) to close at 15,805 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 351,598.0 lots with a turnover of 27.7 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 15 yuan (2.11 U.S. dollars) to close at 6,192 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 380,325.0 lots with a turnover of 23.59 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 26.5 yuan (about 3.73 U.S. dollars) to close at 888 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 671,746 lots, with a turnover of about 58.48 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 33 yuan (about 4.64 U.S. dollars) to close at 4,654 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 130,833 lots, with a turnover of about 6.04 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.
Absolutely disgusting. The USA and West is doing everything in their power to provoke wars with the Russians, Chinese and Iranians. Reprehensible. Go BRICS!!!