Everything You Need to Know About China's Economy on Monay (June 17)
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Good Monday! This is TIAN in Kuala Lumpur, Malaysia.
After a "10+4 hour" journey from New Zealand, I have arrived in Malaysia, the second stop of my half-month trip. The beautiful scenery of New Zealand and the strong friendship between China and New Zealand left a deep impression on me.
Once again, I invite you to join me in monitoring the pulse of China's economy.
DRIVING THE DAY, Chinese Premier Li Qiang is conducting his first official visit to Australia since assuming office. Here are some key takeaways from the second day of his trip:
China will include Australia in the list of unilateral visa-free countries.
Both sides agreed to provide each other with reciprocal access to multi-entry visas of up to three to five years' duration for tourism, business and visiting family members.
The two sides signed of a number of bilateral cooperation documents related to strategic economic dialogue, implementation of the free trade agreement, climate change, education and culture, among others.
The two sides issued the Statement on Joint Outcomes of the China-Australia Annual Leaders' Meeting.
MEANWHILE, China's value-added industrial output, an important economic indicator, went up 5.6 percent year on year in May, data from the National Bureau of Statistics showed Monday.
The official data said the equipment and high-tech manufacturing sectors in particular posted strong growth last month, with their output up 7.5 percent and 10 percent from a year ago, respectively.
On a monthly basis, the entire industrial output edged up 0.3 percent in May from the previous month. During the January-May period, it rose 6.2 percent year on year.
The industrial output measures the activity of enterprises each with an annual main business turnover of at least 20 million yuan (about 2.81 million U.S. dollars).
IN THE SAME TIME, China’s fixed-asset investment rose 4 percent year on year from January to May this year, data from the National Bureau of Statistics (NBS) showed.
The investment topped 18.8 trillion yuan (about 2.64 trillion U.S. dollars) during the period, the NBS said in a statement.
Investment in infrastructure construction rose 5.7 percent from a year ago, and manufacturing investment increased 9.6 percent during the period.
Investment in high-tech industries posted robust growth in the first five months of this year, rising by 11.5 percent from the previous year. In particular, investment in high-tech manufacturing and services expanded by 10.4 percent and 14.3 percent, respectively.
ALSO ON MONDAY, China reports falling home prices in May, official data showed on Monday.
The National Bureau of Statistics (NBS) said that 70 large and medium-sized cities recorded month-on-month declines in both new and second-hand home prices.
In first-tier cities, namely Beijing, Shanghai, Guangzhou and Shenzhen, new home prices edged down by 0.7 percent. Meanwhile, second and third-tier cities registered declines of 0.7 percent and 0.8 percent, respectively.
Prices of second-hand homes fell by 1.2 percent in first-tier cities, 1 percent in second-tier cities, and 0.9 percent in third-tier cities, the NBS said.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.55% on Monday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.55% on Monday, while the Shenzhen Component Index (399001.SZ) rose 0.31%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) gained 0.38% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.83%.
China's benchmark interbank gold prices mixed Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 547.3 yuan (76.92 U.S. dollars) per gram, 2.18 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above went down 0.02 yuan from the previous trading day to 546.24 yuan.
Chinese yuan strengthens to 7.1149 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 2 pips to 7.1149 against the U.S. dollar Monday, 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, MLF
China's central bank injected liquidity into the banking system through reverse repos and medium-term lending facility (MLF) on Monday.
The People's Bank of China conducted 4 billion yuan (about 562.2 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent.
A total of 182 billion yuan was also injected into the market via the MLF, which will mature in one year at an interest rate of 2.5 percent.
Hong Kong's Hang Seng Index closes 0.03 pct lower
Hong Kong's stock market ended lower on Monday with the benchmark Hang Seng Index down 0.03 percent to close at 17,936.12.
The Hang Seng China Enterprises Index fell 0.02 percent to end at 6,373.48, and the Hang Seng Tech Index rose 0.05 percent to close at 3,709.35.
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).
The most active cotton contract for September 2024 delivery lost 355 yuan (about 49.9 U.S. dollars) to close at 14,435 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 672,400 lots with a turnover of 49.18 billion yuan.
Sugar futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery lost 37 yuan (about 5.2 U.S. dollars) to close at 6,176 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 452,893 lots with a turnover of 27.92 billion yuan.
Iron ore futures closed lower on Monday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery dipped 13.5 yuan (about 1.9 U.S. dollars) to close at 813 yuan per tonne.
On Monday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 410,357 lots, with a turnover of about 33.43 billion yuan.
No.1 soybean futures closed lower on Monday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for July 2024 delivery dipped 40 yuan (about 5.62 U.S. dollars) to close at 4,514 yuan per tonne.
On Monday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 121,164 lots, with a turnover of about 5.53 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.