Everything You Need to Know About China's Economy on Tuesday (July 8)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY. Tian here in Beijing, welcoming you to your Tuesday edition of Everything You Need to Know About China's Economy.
DRIVING THE DAY, CHINA'S FOREX RESERVES UP TO HIGHEST LEVEL IN ALMOST A DECADE.
China's foreign exchange reserves increased for the sixth month in-a-row in June, to the highest level in nearly a decade, while the country's official gold reserves rose for the eighth consecutive month, according to official data.
The country's foreign exchange reserves increased to $3.32 trillion as of the end of June, up 0.98 percent or $32.2 billion on the previous month, rising above the $3.3 trillion level for the first time since September last year, the State Administration of Foreign Exchange (SAFE) said.
The $3.32 trillion in reserves marked the highest level since December 2015, when the reading came in at $3.33 trillion, according to official data compiled by market tracker Wind Info.
SAFE said the country's foreign exchange reserves rose last month amid a declining US dollar index and rising global financial markets, with China's steady economic growth conducive to keeping foreign exchange reserves generally stable.
Meanwhile, China's official gold reserves came in at 73.9 million ounces at the end of June, up from 73.83 million ounces a month earlier, marking the eighth consecutive month of increase, according to SAFE.
ALSO ON TUESDAY, POWER DEMAND TO RISE STEADILY IN 2025.
China's electricity demand is projected to maintain steady growth in 2025, with total consumption expected to increase within a range of 4 percent to 6.5 percent, according to a report released by the State Grid Energy Research Institute.
The report, titled "China Power Supply and Demand Analysis Report 2025", forecasts total nationwide electricity consumption to reach 10.3 trillion kilowatt-hours in 2025, a 5 percent increase from the previous year.
Power generation capacity is set for rapid expansion this year, projected to reach around 3.99 billion kilowatts by the end of 2025, a 19.2 percent increase from the previous year and maintaining a fast growth momentum, said Ji Guoqiang, an analyst at the institute.
This year is also expected to see a record amount of newly added power generation capacity, increasing 53.2 percent compared to the new capacity added in the previous year, he said.
"This surge in new installations will push the share of renewable energy in total installed capacity past 45 percent by the end of 2025, with solar power specifically projected to exceed 30 percent," said Ji.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Tuesday, with the benchmark Shanghai Composite Index up 0.7 percent to 3,497.48 points.
The Shenzhen Component Index closed 1.46 percent higher at 10,588.39 points.
The combined turnover of these two indices stood at 1.45 trillion yuan (about 202.7 billion U.S. dollars), up from 1.21 trillion yuan on the previous trading day.
The photovoltaic sector was among the top performers, while stocks related to insurance and banking led the losses.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.39 percent to close at 2,181.08 points.
China's benchmark interbank gold prices lower Tuesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 767.24 yuan per gram, 4.06 yuan lower from the previous trading day.
The price for gold that is 99.99 percent pure or aboves stood at 767.75 yuan per gram, down 4.15 yuan per gram.
Hong Kong stocks close 1.09 pct higher
Hong Kong's stock market ended higher Tuesday with the benchmark Hang Seng Index up 1.09 percent to close at 24,148.07 points.
The Hang Seng China Enterprises Index rose 1.16 percent to end at 8,708.66 points, the Hang Seng Tech Index rose 1.84 percent to end at 5,325.95 points.
Chinese yuan weakens to 7.1534 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 28 pips to 7.1534 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.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery lost 10 yuan (about 1.40 U.S. dollars) to close at 13,785 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 221,657.0 lots with a turnover of 15.23 billion yuan.
Sugar futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery lost 11 yuan (about 1.54 U.S. dollars) to close at 5,747 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 176,746.0 lots with a turnover of 10.1 billion yuan.
Iron ore futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery gained 1 yuan (about 14 U.S. cents) to close at 733 yuan per tonne.
On Tuesday, the total trading volume of 11 listed iron ore futures contracts on the exchange was 302,225 lots, with a turnover of about 21.98 billion yuan.
No.1 soybean futures closed higher on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2025 delivery gained 13 yuan (about 1.82 U.S. dollars) to close at 4,104 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 172,515 lots, with a turnover of about 7.04 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.