Everything You Need to Know About China's Economy on Friday (April 12)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Friday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, Federal Chancellor of Germany Olaf Scholz will pay an official visit to China from April 14 to 16 at the invitation of Chinese Premier Li Qiang, Chinese foreign ministry spokesperson Mao Ning announced on Friday.
Chinese President Xi Jinping will meet with Scholz, Premier Li will hold talks with him and exchange views on bilateral relations and issues of common concern, Mao said at a regular press conference.
China always regards Germany as an important partner for win-win cooperation and supports Germany in playing a more important role in Europe and beyond, Mao said.
This trip will mark the second official one of Scholz to China after taking office. If you want to know more interesting data of the relationship between China and Germany, please check your watchers’ newsletter published in Feburary: Data Speaks: Who is Germany's Most Important Trading Partner for 8 Consecutive Years? China!
MEANWHILE, China's total import and export of goods expanded 5 percent year on year in yuan terms in the first quarter (Q1) of 2024, setting new records in both scale and growth rate, official data showed Friday.
From January to March, the country's foreign trade in goods stood at 10.17 trillion yuan (about 1.43 trillion U.S. dollars), according to the General Administration of Customs (GAC).
Exports from the world's second-biggest economy were 4.9 percent higher year on year to reach 5.74 trillion yuan, while imports rose 5 percent to 4.43 trillion yuan, the data showed.
ALSO ON FRIDAY, China's State Council has released a guideline on “strengthening regulation, forestalling risks and promoting the high-quality development” of the capital market.
The guideline aims to “build a secure, regulated, transparent, open, dynamic and resilient capital market”.
Efforts will focus on strengthening regulation, preventing risks and pushing forward high-quality development, while at the same time “strengthening regulation on delisting, adopting stricter standards for compulsory delisting, smoothing diverse channels for delisting, and optimizing investor compensation remedy mechanisms”.
The guideline demanded strict regulation on the entry into the capital market through securities issuance and listing, urging higher standards for listing on the main boards and the start-up board ChiNext.
The oversight on issuance and underwriting should be intensified, and illegal activities such as fraudulent issuance should be investigated strictly, it said.
It urged rigorous sustained oversight on listed firms, noting that authorities should crack down on illegal shareholding reduction and tighten regulation on cash dividend payment by listed firms.
IN TODAY'S FINIANCIAL MARKET,
Shanghai Composite Index Fell 0.49% on Friday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.49% on Friday, while the Shenzhen Component Index (399001.SZ) fell 0.78%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) ended nearly flat for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 1.08%.
China's yuan loans grow by 9.46 trln yuan in Q1
China's yuan-denominated loans rose by 9.46 trillion yuan (1.33 trillion U.S. dollars) in the first quarter of this year, central bank data showed Friday.
The M2, a broad measure of money supply that covers cash in circulation and all deposits, climbed 8.3 percent year on year to 304.8 trillion yuan at the end of last month, according to data from the People's Bank of China.
The M1, which covers cash in circulation plus demand deposits, stood at 68.58 trillion yuan at the end of March, up 1.1 percent year on year.
Outstanding social financing stood at 390.32 trillion yuan at the end of March, up 8.7 percent year on year.
Outstanding yuan loans reached 247.05 trillion yuan at the end of March, marking an increase of 9.6 percent year on year, the data showed.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.82 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Friday.
The move aims to keep liquidity in the banking system reasonable and ample, the People's Bank of China said in a statement.
China's benchmark interbank gold prices mixed Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 559.09 yuan (about 78.78 U.S. dollars) per gram, up 3.24 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above lost 3.76 yuan from the previous trading day to 554.14 yuan.
Chinese yuan strengthens to 7.0967 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 1 pip to 7.0967 against the U.S. dollar Friday, 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's Hang Seng Index closes 2.18 pct lower
Hong Kong's stock market ended lower on Friday with the benchmark Hang Seng Index down 2.18 percent to close at 16,721.69 points.
The Hang Seng China Enterprises Index fell 2.07 percent to end at 5,879.58 points, while the Hang Seng Tech Index fell 1.81 percent to close at 3,474.47 points.
BEFORE ENDING TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES,
Cotton futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2024 delivery lost 75 yuan (about 10.57 U.S. dollars) to close at 16,355 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 406,533 lots with a turnover of 33.07 billion yuan.
Sugar futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery lost 68 yuan (about 9.58 U.S. dollars) to close at 6,394 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 514,786 lots with a turnover of 33.05 billion yuan.
No.1 soybean futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2024 delivery dipped 31 yuan (about 4.37 U.S. dollars) to close at 4,753 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 105,860 lots, with a turnover of about 5.06 billion yuan.
Iron ore futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 25.5 yuan (about 3.59 U.S. dollars) to close at 843.5 yuan per tonne.
On Friday, the total trading volume of 11 listed iron ore futures contracts on the exchange was 646,897 lots, with a turnover of about 53.67 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.
Until the USGOV outlawed them, I had a lovely Huawei phone that worked beautifully. The Americans don't like competition. Sad.