Everything You Need to Know About China's Economy on Monday (April 8)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Monday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, ByteDance to Boost Douyin’s E-Commerce Business With Offline Payment License, China’s Caixin media reported.
ByteDance Ltd. founder and actual controller Zhang Yiming is preparing to buy a license that will allow Douyin to process bank card payments, as the internet giant gears up to compete in China’s massive e-commerce and payment services markets.
Shenzhen-listed HyUnion Holding Co. Ltd. (002537.SZ) announced last week that it had agreed to sell its wholly controlled payment company that owns the bank card acquiring license, Union Mobile Pay E-Commerce Co. Ltd., to Tianjin Tongrong E-commerce Co. Ltd wholly owned by Beijing Shibei Technology Co., Ltd., which is actually controlled by Zhang Yiming.
MEANWHILE, China's forex reserves totaled 3.2457 trillion U.S. dollars as of the end of March, rising by 19.8 billion dollars, or 0.62 percent, from the end of February, according to data released Sunday by the State Administration of Foreign Exchange.
Affected by factors such as the monetary policies of major economies and macroeconomic data, the dollar index and global financial asset prices rallied in March, the administration said.
It attributed the increase in the scale of the country's foreign exchange reserves to the combined effects of currency translation and changes in asset prices and other factors.
ALSO ON MONDAY, China's top securities regulator has said it would strengthen inspections on firms planning initial public offerings (IPOs) this year by increasing the intensity of inspections.
According to a report recently published on China Securities Regulatory Commission (CSRC) ’s website, inspections will be carried out on at least 25 percent of firms planning IPOs this year, up from at least 5 percent in 2023.
Meanwhile, scrutiny over listed companies, bond issuers, and companies listed on China's "new third board" will also be intensified this year, said the report.
The "new third board," officially named the National Equities Exchange and Quotations, offers small and medium-sized firms a new financing channel with low costs and simple listing procedures.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.72% on Monday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.72% on Monday, while the Shenzhen Component Index (399001.SZ) fell 1.57%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 2.13% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 1.81%.
China's benchmark interbank gold prices higher Monday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 539.4 yuan (about 76.03 U.S. dollars) per gram, up 8.4 yuan from the previous trading day, while the price for gold that is 99.99 percent pure or above gained 3.7 yuan from the previous trading day to 537.5 yuan.
Chinese yuan strengthens to 7.0947 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 2 pips to 7.0947 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
China's central bank conducted 2 billion yuan (about 281.9 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Monday.
The move aims to keep liquidity in the banking system reasonable and ample, the People's Bank of China said in a statement.
Hong Kong's Hang Seng Index closes 0.05 pct higher
Hong Kong's stock market ended higher on Monday with the benchmark Hang Seng Index up 0.05 percent to close at 16,732.85 points.
The Hang Seng China Enterprises Index rose 0.09 percent to end at 5,868.97 points, the Hang Seng Tech Index fell 0.18 percent to close at 3,444.61 points.
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 May 2024 delivery lost 45 yuan (about 6.34 U.S. dollars) to close at 16,185 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 330,385.0 lots with a turnover of 26.81 billion yuan.
Sugar futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for May 2024 delivery lost 3 yuan (42.29 U.S. cents) to close at 6,604 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 450,764.0 lots with a turnover of 29.59 billion yuan.
Iron ore futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 24.5 yuan (about 3.45 U.S. dollars) to close at 791.5 yuan per tonne.
On Monday, the total trading volume of 11 listed iron ore futures contracts on the exchange was 752,582 lots, with a turnover of about 58.54 billion yuan.
No.1 soybean futures closed higher on Monday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for May 2024 delivery gained 19 yuan (about 2.68 U.S. dollars) to close at 4,806 yuan per tonne.
On Monday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 111,111 lots, with a turnover of about 5.33 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.