Everything You Need to Know About China's Economy on Wednesday (June 25)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is TIAN in Beijing, welcoming you to your Wednesday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA CONDUCTS 300-BLN-YUAN MLF OPERATION TO INJECT LIQUIDITY.
China's central bank on Wednesday conducted a 300-billion-yuan (about 41.86 billion U.S. dollars) medium-term lending facility (MLF) operation as it seeks to maintain ample liquidity in the banking system.
The one-year operation was carried out via fixed quantity and interest rate bidding, according to the People's Bank of China (PBOC).
With 182 billion yuan of MLF funds maturing this month, the net injection via MLF alone stood at 118 billion yuan in June.
Earlier this month, the PBOC also conducted two outright reverse repo operations, injecting a combined net 200 billion yuan. This brings the total net medium-term liquidity injection for June to 318 billion yuan.
MEANWHILE, EXPORTS FROM BEIJING-TIANJIN-HEBEI HIT RECORD HIGH.
Exports from the Beijing-Tianjin-Hebei region (京津冀地区) soared to a record high in the first five months of this year, according to Beijing Customs data.
The region's total export value reached 567.46 billion yuan ($80.3 billion) from January to May, marking a 2.7 percent year-on-year increase and setting a historic peak for the period, People's Daily reported.
Among the contributors, private enterprises emerged as the dominant force, contributing 45.1 percent of the region's total export value, with their exports surging 13.3 percent to 255.95 billion yuan ($35.66 billion), the data showed.
Another notable trend is the rising prominence of self-owned brands. Exports of such goods grew 4.9 percent to 180.04 billion yuan ($25.07 billion) in the first five months, exceeding the region's overall export growth by 2.2 percentage points.
And the high-end equipment sector in the region experienced rapid growth, with exports rising 21 percent to 40.28 billion yuan ($5.6 billion). Particularly impressive gains were seen in ships, wind turbine generators and drilling production platforms, according to the report.
ALSO ON WEDNESDAY, CHINA ALLOCATES 100 MILLION YUAN TO SUPPORT FLOOD-HIT GUIZHOU.
China's National Development and Reform Commission (NDRC) said Wednesday that it has allocated 100 million yuan (about 13.95 million U.S. dollars) to assist disaster relief efforts in southwest China's Guizhou Province.
Guizhou has been affected by a severe flooding disaster, and the national commission for disaster prevention, reduction and relief launched a Level-IV emergency response on Tuesday.
The fund will be used to restore vital infrastructure and public services in Guizhou, such as roads, flood control systems, hospitals and schools, the NDRC said.
An additional 100 million yuan has been earmarked for the provinces of Guangdong and Hunan, located in south and central China, respectively, to restore normal production and living order as soon as possible, the NDRC added.
China has a four-tier emergency response system for flood control, with Level I being the most severe.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Wednesday, with the benchmark Shanghai Composite Index up 1.04 percent to 3,455.97 points.
The Shenzhen Component Index closed 1.72 percent higher at 10,393.72 points.
The combined turnover of these two indices stood at 1.6 trillion yuan (about 223.3 billion U.S. dollars), up from 1.41 trillion yuan on the previous trading day.
Shares in the aircraft manufacturing and electronic information sectors led the gains, while those related to petroleum and chemical fertilizer were among the biggest losers.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 3.11 percent to close at 2,128.39 points Wednesday.
Hong Kong's Hang Seng Index closes 1.23 pct higher
The Hong Kong stock market rallied on Wednesday with the benchmark Hang Seng Index up 1.23 percent to close at 24,474.67 points.
The Hang Seng China Enterprises Index climbed 1.13 percent to end at 8,859.29 points, and the Hang Seng Tech Index jumped 1.15 percent to close at 5,359.02 points.
Chinese yuan weakens to 7.1668 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 12 pips to 7.1668 against the U.S. dollar Wednesday, 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 benchmark interbank gold prices lower Wednesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at770.55 yuan per gram, down 7.11 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was down 9.11 yuan from the previous trading day to 768.87 yuan.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
No.1 soybean futures closed lower on Wednesday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active No.1 soybean contract for September 2025 delivery dipped 66 yuan (about 9.21 U.S. dollars) to close at 4,169 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 214,896 lots, with a turnover of about 8.97 billion yuan.
Iron ore futures closed lower on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2025 delivery dipped 3 yuan (about 42 U.S. cents) to close at 702.5 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 396,363 lots, with a turnover of about 27.63 billion yuan.
Cotton futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 110 yuan (about 15.35 U.S. dollars) to close at 13,645 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 303,179 lots with a turnover of 20.62 billion yuan.
Sugar futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 40 yuan (5.58 U.S. dollars) to close at 5,757 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 275,858 lots with a turnover of 15.72 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.