Everything You Need to Know About China's Economy on Monday (June 30)
Your Daily & Trustworthy Updates on the Chinese Economy
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Hope you had a great weekend! This is TIAN from Beijing.
Welcome to your Monday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA'S MANUFACTURING SECTOR GAINED MOMENTUM THIS MONTH.
The purchasing managers' index (PMI) for China's manufacturing sector rose for the second straight month in June to 49.7, the National Bureau of Statistics (NBS) said in a statement. The reading was 49.5 in May and 49 in April.
Of 21 surveyed industries, 11 logged expansion this month, up from 7 in May. The PMIs for the manufacturing of equipment, high-tech products and consumer goods have stayed in the expansion zone for two consecutive months, standing at 51.4, 50.9, and 50.4, respectively.
A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.
Monday's data also showed that the non-manufacturing PMI came in at 50.5 in June, up 0.2 percentage points from the previous month, and the general PMI climbed from 50.4 to 50.7.
Specifically, the construction sector gained momentum, while the service sector continued its upward trend, with postal services, information technology and financial services maintaining relatively high levels of activity.
MEANWHILE, **CHINA EXPECTS TO SEE 953 MLN RAILWAY TRIPS DURING SUMMER TRAVEL RUSH**
China is expected to see 953 million railway passenger trips during the upcoming summer travel rush, which will kick off on Tuesday, the country's railway operator said on Monday.
The figure is 5.8 percent higher than the number of railway passenger trips recorded in the summer travel rush in 2024, according to the China State Railway Group Co., Ltd.
The summer travel rush is usually a busy season for the railway network as college students return home and families travel.
This year's summer travel rush will last for 62 days from July 1 to Aug. 31, and some 15.37 million passenger trips are expected to be made daily on average during the period, the railway operator said.
To cater to the surge in demand, railway authorities will schedule additional train services, with the nationwide operating passenger trains topping 11,500 on daily average, according to the railway operator.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Monday, with the benchmark Shanghai Composite Index up 0.59 percent to 3,444.43 points.
The Shenzhen Component Index closed 0.83 percent higher at 10,465.12 points.
The combined turnover of these two indices exceeded 1.51 trillion yuan (about 210.9 billion U.S. dollars), up from 1.12 trillion yuan on the previous trading day.
Shares in the defense industry and semiconductor sector were among the biggest gainers, while those related to banking and brokerages suffered the most.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.35 percent to close at 2,153.01 points Monday.
Hong Kong stock closes lower
Hong Kong's stock market ended lower Monday with the benchmark Hang Seng Index down 0.87 percent to close at 24,072.28 points.
The Hang Seng China Enterprises Index fell 0.96 percent to end at 8,678.3 points, and the Hang Seng Tech Index slid 0.72 percent to 5,302.82 points.
China's benchmark interbank gold prices lower Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 763.41 yuan per gram, down 8.72 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was down 10.34 yuan from the previous trading day to 763.30 yuan.
Chinese yuan strengthens to 7.1586 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 41 pips to 7.1586 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.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed flat Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery closed at 13,740 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 456,550 lots with a turnover of 31.53 billion yuan.
As the world's largest producer, consumer and exporter of textile, China listed cotton futures on ZCE in June 2004, helping cotton-related enterprises hedge the price risk.
Sugar futures closed higher Monday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 20 yuan (2.79 U.S. dollars) to close at 5,807 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 236,361 lots with a turnover of 13.64 billion yuan.
As the world's important consumer and importer of sugar, China listed sugar futures on ZCE in January 2006, helping sugar-related enterprises hedge the price risk.
Iron ore futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery gained 1.5 yuan (about 21 U.S. cents) to close at 715.5 yuan per tonne.
On Monday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 426,178 lots, with a turnover of about 30.46 billion yuan.
As the world's largest importer of iron ore, China opened the DCE iron ore futures to international investors in May 2018.
No.1 soybean futures closed lower on Monday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2025 delivery dipped 3 yuan (about 42 U.S. cents) to close at 4,141 yuan per tonne.
On Monday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 120,859 lots, with a turnover of about 5 billion yuan.
China is the world's largest soybean importer.
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.