Everything You Need to Know About China's Economy on Tuesday (April 29)
Your Daily & Trustworthy Updates on the Chinese Economy
Subscribe for free |View in your browser |Tweet@TIANDongdong
HOWDY. Tian here, welcoming you to your Tuesday edition of Everything You Need to Know About China's Economy.
DRIVING THE DAY, CHINESE PRESIDENT XI JINPING IN SHANGHAI, WHERE HE VISITED AN AI INCUBATOR AND THE NEW DEVELOPMENT BANK.
At the Shanghai Foundation Model Innovation Center, a large-model incubator home to over 100 enterprises, Xi said “AI technology is evolving rapidly and entering a phase of explosive growth” and “AI is a nascent industry, and it's also an industry that belongs to young people.”
He then walked into an AI product experience store, where he inquired in detail about the functions and market trends of the products, and tried on a pair of smart glasses for a firsthand experience.
ICYMI: The inspection trip came four days after China's leadership convened a dedicated AI study session, where Xi called for gaining a head start in this strategic sector.
During the group study session last Friday, Xi pointed out that AI, as a strategic technology leading the new round of sci-tech revolution and industrial transformation, has profoundly changed the ways people work and live.
The Party Central Committee attaches great importance to the development of AI, and has improved top-level design and strengthened implementation efforts in recent years, Xi said at the session.
At the New Development Bank, Xi met with Dilma Rousseff, president of the institution.
Xi congratulated Rousseff on her reelection as president of the New Development Bank, and noted that the bank is the world's first multilateral development institution established and led by emerging markets and developing countries.
Xi called the bank "a pioneering initiative for the unity and self-improvement of the Global South," and said that it conforms to the historical trend of reforming and improving global governance.
He stressed that broader BRICS cooperation has entered a stage of high-quality development, and that the bank is set to embark on its second golden decade of high-quality development.
Xi called on the bank to consider the development needs of the Global South, and to provide more high-quality, low-cost and sustainable infrastructure financing.
The bank needs to improve its management and operations, implement more technology and green finance projects, and help developing countries bridge the digital divide and accelerate green and low-carbon transformation, Xi said.
In discussions on the reform of international financial architecture, the bank should amplify the voice of the Global South, safeguard the legitimate rights and interests of the Global South, and support the countries of the Global South in their pursuit of modernization, he said.
He noted that as the bank's host country, China will always support the operations and development of the New Development Bank. China is willing to strengthen project cooperation with the bank and focus on green, innovative and sustainable development to achieve more results, he added.
China is also willing to share its development experience through the bank with other member countries, and stands ready to provide more international public goods, Xi said.
MEANWHILE, China announced Tuesday a campaign to eliminate and rectify market access barriers in the latest effort to promote the development of a unified national market.
According to an official notice, the campaign will target local laws, regulations, administrative documents and other policy papers that contravene national market access requirements, as well as practices by governments at various levels that improperly impose restrictions on market entry.
The government aims to establish long-term mechanisms -- including the collection of clues, verification and rectification of problems, and public notification of typical cases -- to ensure continuous efforts to safeguard fair market access.
The notice was jointly published by the National Development and Reform Commission (NDRC), the Ministry of Commerce and the State Administration for Market Regulation.
The campaign marks a significant step in the country's broader moves to foster a first-rate business environment that is market-oriented, law-based, and internationalized.
The NDRC and other departments have disclosed 115 typical cases over the past years, in which local regulations or practices went against the national market access negative list, effectively removing market obstacles and protecting the rights of business entities.
China has recently unveiled the 2025 version of the market access negative list where the number of items are reduced from 117 in 2022 to 106.
ACCORDING TO the latest export report released Tuesday by Wine Australia, the country's wine industry regulator, total Australian wine exports rose 41 percent in value to 2.64 billion Australian dollars, with volumes increasing 6 percent to 647 million liters.
Notably, exports to the Chinese mainland soared to 96 million liters, valued at 1.03 billion Australian dollars, accounting for nearly 40 percent of Australia's total wine export value, the report said, adding the dramatic increase follows the elimination of tariffs at the end of March 2024, marking a full year of uninterrupted trade.
Chinese consumers' strong preference for premium Australian wines played a key role in the recovery, it said, adding the average export value to China reached 10.65 Australian dollars per liter, the highest among Australia's top export destinations.
Packaged wine shipments, particularly high-end glass-bottled products, accounted for 93 percent of the total export value to China, according to Wine Australia.
Despite the impressive recovery in the Chinese market, Australian wine exports to the rest of the world declined, it said.
Exports outside China fell 13 percent in value and 9 percent in volume, reflecting broader global challenges such as economic uncertainty, cost-of-living pressures, and evolving consumer preferences for lower alcohol consumption, the report said.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed lower Tuesday, with the benchmark Shanghai Composite Index down 0.05 percent to 3,286.65 points.
The Shenzhen Component Index also closed 0.05 percent lower at 9,849.8 points.
The combined turnover of these two indices stood at about 1.02 trillion yuan (roughly 141.61 billion U.S. dollars), down from 1.06 trillion yuan on the previous trading day.
Shares in the humanoid robot and chemicals sectors led the gains, while those related to electricity and e-commerce were among the biggest losers.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.13 percent to close at 1,931.94 points.
Hong Kong stocks close 0.16 pct higher
Hong Kong stock market ended higher Tuesday with the benchmark Hang Seng Index up 0.16 percent to close at 22,008.11 points.
The Hang Seng China Enterprises Index fell 0.15 percent to end at 8,067.94 points, and the Hang Seng Tech Index rose 0.62 percent to end at 5,019.73 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 777.65 yuan per gram, 9.35 yuan lower from the previous trading day.
The price for gold that is 99.99 percent pure or aboves stood at 778.40 yuan per gram, down 7.20 yuan per gram.
Chinese yuan strengthens to 7.2029 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 14 pips to 7.2029 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 130 yuan (about 18.05 U.S. dollars) to close at 12,840 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 256,332.0 lots with a turnover of 16.44 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 39 yuan (5.41 U.S. dollars) to close at 5,936 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 304,363 lots with a turnover of 18.05 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 2 yuan (about 28 U.S. cents) to close at 709 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 440,118 lots, with a turnover of about 31.37 billion yuan.
No.1 soybean futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for July 2025 delivery dipped 59 yuan (about 8.19 U.S. dollars) to close at 4,162 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 300,601 lots, with a turnover of about 12.57 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.