Everything You Need to Know About China's Economy on Thursday (Dec. 12)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! It’s Thursday. This is TIAN in Beijing.
DRIVING THE DAY, China and Australia have been engaging in technical communications to address the quarantine issues concerning Australian lobsters exported to China, the Ministry of Commerce said Thursday.
It is hoped that both sides will continue to uphold mutual respect, pursue mutually beneficial cooperation, and properly resolve respective economic and trade concerns, ministry spokesperson He Yadong told a press conference.
EARLIER IN THE DAY, the Ministry also said China is open to contact and communication with the new U.S. administration's economic and trade team.
The Chinese side has maintained close communication with the U.S. Department of Commerce through the communication and exchange mechanism between the two sides, spokesperson He Yadong told a press conference.
With consistent opposition to unilaterally imposing tariffs, China is willing to strengthen dialogue and coordination with the United States, properly manage differences and push for steady and long-term growth in bilateral economic and trade relations based on the principles of mutual respect, peaceful coexistence and win-win cooperation, He said.China announced on Thursday the expansion of a private pension scheme from 36 pilot cities and regions to the entire country, effective from Dec. 15.
As a supplementary pension insurance, this scheme is voluntary for individuals and operated in a market-oriented manner through support from national policies, according to a notice jointly issued by five government departments including the Ministry of Human Resources and Social Security.
The scheme allows Chinese citizens to contribute up to 12,000 yuan (about 1,670 U.S. dollars) annually to individual pension accounts.
Participants in the scheme can enjoy the preferential policy of deferred taxation, according to the notice.
MEANWHILE, China’s State Council has approved an overall plan for deepening comprehensive international trade reforms in China's "World's Supermarket" - - the Yiwu City.
Located in easten China’s Zhejiang province, Yiwu is a key supplier for Chinese cross-border e-commerce platforms.
The plan outlines a vision to promote reforms in Yiwu through further opening up, along with initiatives such as innovating market procurement trade mechanisms, promoting import trade development, enhancing the functionality of comprehensive bonded zones and strengthening cross-border e-commerce regulations, according to a circular from the State Council.
Promoting Belt and Road cooperation and high-quality development of the China-Europe freight train network, the small commodity hub is slated to further contribute to advancing China's dual circulation strategy, which integrates domestic and global markets and supports efforts to build China into a strong trading nation, the circular noted.
Yiwu's robust growth is evident in its trade data. In the first 10 months of the year, the city's import and export volume surged 18.3 percent year on year, reaching 560.16 billion yuan (about 77 billion U.S. dollars), according to customs data.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Thursday, with the benchmark Shanghai Composite Index up 0.85 percent to 3,461.5 points.
The Shenzhen Component Index closed 1 percent higher at 10,957.13 points.
The combined turnover covered by the two indices stood at 1.87 trillion yuan (about 259.8 billion U.S. dollars), up from 1.79 trillion yuan recorded on the previous trading day.
Shares in the retail sector led the gains, while those related to humanoid robots and automation equipment saw significant declines.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.35 percent to close at 2,292.15 points Thursday.
China's benchmark interbank gold prices higher Thursday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 622.3 yuan (about 86.6 U.S. dollars) per gram, 3.4 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went up 5.16 yuan from the previous trading day to 624.79 yuan.
Chinese yuan weakens to 7.1854 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 11 pips to 7.1854 against the U.S. dollar Thursday, 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 conducts reverse repos Thursday
China's central bank conducted 66.1 billion yuan (about 9.2 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Thursday.
The move aims to keep liquidity in the banking system adequate at a reasonable level in the banking system, the central bank said.
Hong Kong's Hang Seng Index closes 1.20 pct higher
Hong Kong stock market ended higher on Thursday with the benchmark Hang Seng Index up 1.20 percent to close at 20,397.05 points.
The Hang Seng China Enterprises Index climbed 1.53 percent to end at 7,360.10 points, and the Hang Seng Tech Index gained 1.53 percent to close at 4,600.82 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed flat Thursday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for May 2025 delivery closed at 13,760 yuan per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 324,249 lots with a turnover of 22.27 billion yuan.
Sugar futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for May 2025 delivery gained 102 yuan (about 14.2 U.S. dollars) to close at 6,125 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 647,657 lots with a turnover of 39.55 billion yuan.
Iron ore futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for May 2025 delivery gained 10 yuan (about 1.39 U.S. dollars) to close at 812.5 yuan per tonne.
On Thursday, the total trading volume of 11 listed iron ore futures contracts on the exchange was 372,478 lots, with a turnover of about 30.05 billion yuan.
No.1 soybean futures closed lower on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for January 2025 delivery dipped 6 yuan (about 83.5 U.S. cents) to close at 2,115 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 648,380 lots, with a turnover of nearly 14 billion yuan.
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.