Everything You Need to Know About China's Economy on Monday (July 7)
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 TO PROMOTE CONSTRUCTION OF HIGH-POWER CHARGING FACILITIES.
China will further optimize the national network layout of charging facilities and steadily build a high-power charging infrastructure system featuring a rational layout, upgraded quality and advanced technology, the National Development and Reform Commission (NDRC) said on Monday.
The NDRC and three other government organs jointly released a circular on the sector, noting that electric vehicle charging infrastructure is crucial for supporting new energy vehicle (NEV) industry development and new power system construction, as well as promoting green low-carbon transformation in the transportation and energy sectors.
Based on local economic development, NEV promotion intensity and power resource distribution, high-power charging facilities should be developed with a localized, moderately advanced and scientifically reasonable layout, focusing on the "charge-and-go" scenario, the circular said.
By the end of 2027, China aims to have more than 100,000 high-power charging facilities nationwide, along with upgrades in service quality and technological application.
China will also promote the innovative application of high-power charging technology, it said, noting that technological upgrading of charging equipment should be enhanced to improve the operational efficiency and service life of such facilities.
MEANWHILE, CHINA UNVEILS PLAN TO BOOST DOMESTIC SERVICE INDUSTRY.
China on Monday released a plan to expand the domestic service industry as part of its broader efforts to promote all-around rural revitalization.
The plan, jointly issued by the Ministry of Commerce and eight other government agencies, aims to increase supply in the domestic service sector, stimulate consumer demand for domestic services, improve people's livelihood, and stabilize employment.
The plan outlines 14 specific measures, including expanding rural employment by encouraging rural workforce participation in the domestic service industry, enhancing vocational training to improve skills, and strengthening social security for rural laborers.
It stated that the country will increase the supply of affordable housing, facilitate access to urban affordable housing for domestic service migrant workers, ensure equal access to basic public services, and support their integration into cities as soon as possible.
China had nearly 300 million rural migrant workers at the end of 2024. The domestic service sector, a key driver of employment, now employs more than 30 million professionals, with over one million enterprises generating a market size exceeding 1.1 trillion yuan (about 153.83 billion U.S. dollars).
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed mixed on Monday, with the benchmark Shanghai Composite Index up 0.02 percent to 3,473.13 points.
The Shenzhen Component Index closed 0.7 percent lower at 10,435.51 points.
The combined turnover of these two indices stood at 1.21 trillion yuan (about 169.22 billion U.S. dollars), down from 1.43 trillion yuan on the previous trading day.
The power and ceramics sectors emerged as the top performers, while biopharmaceutical and brewing stocks faced significant downward pressure.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.21 percent to close at 2,130.19 points on Monday.
Hong Kong's Hang Seng Index closes 0.12 pct lower
The Hong Kong stock market ended mixed on Monday with the benchmark Hang Seng Index down 0.12 percent to close at 23,887.83 points.
The Hang Seng China Enterprises Index fell 0.01 percent to end at 8,608.54 points, and the Hang Seng Tech Index climbed 0.25 percent to end at 5,229.56 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 771.30 yuan per gram, down 5.40 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was down 4.24 yuan from the previous trading day to 771.90 yuan.
Chinese yuan strengthens to 7.1506 against USD Monday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 29 pips to 7.1506 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 lower Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery lost 30 yuan (about 4.20 U.S. dollars) to close at 13,760 yuan per tonne.
On Monday, the total trading volume for six listed cotton futures contracts on the ZCE was 262,268 lots with a turnover of 18.08 billion yuan.
Sugar futures closed lower Monday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active sugar contract for September 2025 delivery lost 36 yuan (5.03 U.S. dollars) to close at 5,754 yuan per tonne.
On Monday, the total trading volume for six listed sugar futures contracts on the ZCE was 186,470 lots with a turnover of 10.69 billion yuan.
Iron ore futures closed lower on Monday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery dipped 5 yuan (about 70 U.S. cents) to close at 731 yuan per tonne.
On Monday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 370,690 lots, with a turnover of about 27 billion yuan.
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 54 yuan (about 7.55 U.S. dollars) to close at 4,079 yuan per tonne.
On Monday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 156,109 lots, with a turnover of about 6.37 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.