Everything You Need to Know About China's Economy on Tuesday
Daily Updates on the Chinese Economy
by TIANDongdong
-- China's major shale gas field sees accumulated output exceed 60 bln cubic meters
The Fuling shale gas field in southwest China's Chongqing Municipality has produced over 60 billion cubic meters of natural gas since it began commercial production, according to Sinopec, its developer and China's largest oil refiner.
Shale gas is an unconventional natural gas that is mainly composed of methane and exists in organic-rich mud shale and its interlayer. It is considered a clean new energy resource.
The Fuling gas field was initially constructed in December 2012 and entered commercial development in March 2014, becoming China's first large-scale shale gas field. It has proven reserves of 900 billion cubic meters and a daily shale gas output of about 23 million cubic meters.
-- China's benchmark interbank gold prices mixed Tuesday
China's benchmark prices for spot interbank gold transactions were mixed Tuesday, according to the China Foreign Exchange Trade System.
The benchmark price for gold that is 99.95 percent pure or above stood at 450.5 yuan (62.76 U.S. dollars) per gram, up 2.5 yuan from the previous trading day, while the price for gold that is 99.99 percent pure or above lost 9.1 yuan to 438 yuan per gram.
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 7.1781 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 8 pips to 7.1781 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.
-- China's central bank adds liquidity via reverse repos
China's central bank conducted 67 billion yuan (about 9.3 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Tuesday.
The move aims to keep liquidity stable in the banking system, the People's Bank of China said in a statement.
-- Guangdong carbon market closes lower
Carbon emissions allowances closed at 69.59 yuan (about 9.69 U.S. dollars) per tonne on Tuesday, 1.47 percent lower from Monday, at Guangzhou Emissions Exchange, the largest local carbon market in China.
A total of 166 tonnes of allowances were transacted on Tuesday, with a turnover of 11,554.45 yuan.
The allowances, officially known as Guangdong Emissions Allowances (GDEA), are carbon dioxide emissions caps assigned to companies. Firms whose emissions surpass their share must buy extra quotas from authorities or purchase unused quotas on the market from those that cause less pollution.
Since its opening in December 2013, the market has traded over 220.82 million tonnes of GDEA, with a total turnover of nearly 6.16 billion yuan.
-- Hong Kong's Hang Seng Index closes 0.84 pct higher
Hong Kong's stock market ended higher on Tuesday with the benchmark Hang Seng Index up 0.84 percent to close at 17,664.73.
The Hang Seng China Enterprises Index saw an uptick of 0.9 percent to end at 6,052.51, and the Hang Seng Tech Index rose 1.29 percent to close at 3,874.67.
-- Cotton futures close lower
Cotton futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active cotton contract for January 2024 delivery lost 545 yuan (about 75.93 U.S. dollars) to close at 17,120 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 659,442 lots with a turnover of 57.09 billion yuan.
-- Soybean futures close higher
No.1 soybean futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for November 2023 delivery gained 4 yuan (about 56 U.S. cents) to close at 5,066 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 293,854 lots, with a turnover of about 15.02 billion yuan.
-- Iron ore futures close lower
Iron ore futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for January 2024 delivery dipped 14.5 yuan (about 2.02 U.S. dollars) to close at 819 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 659,762 lots, with a turnover of about 53.84 billion yuan.
-- Sugar futures close lower
Sugar futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for January 2024 delivery lost 108 yuan (about 15 U.S. dollars) to close at 6,838 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 724,718 lots with a turnover of 49.71 billion yuan.
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