Everything You Need to Know About China's Economy on Thursday (May 8)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is TIAN, welcoming you to your Thursday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, RETAIL SALES OF CHINA'S NEW-ENERGY PASSENGER VEHICLES REACHED ABOUT 922,000 UNITS IN APRIL.
The figure marked a 37 percent year-on-year increase, but a 7 percent decrease from the previous month, according to the China Passenger Car Association (CPCA).
The penetration rate of new-energy vehicles, a gauge of popularity, in the domestic market stood at 52.3 percent in April.
During the first four months of the year, total retail sales of new-energy passenger cars amounted to 3.34 million units, representing a 37 percent increase from the previous year, the CPCA data showed.
Retail sales of passenger cars stood at 1.79 million in April, up 17 percent year on year, but 8 percent lower than the previous month.
During the first four months of the year, total retail sales of passenger cars hit 6.92 million, up 9 percent year on year.
MEANWHILE, CHINA, CROATIA INK DEAL TO BUILD EXPRESSWAY.
A contract to build a 14.75-km expressway was signed Wednesday between the China Road and Bridge Corporation (CRBC) and Croatian Roads, the state-run road operator.
The expressway, which will connect Pozega and Godinjak in eastern Croatia, carries a contract value of 160 million euros (180.8 million U.S. dollars). The project includes the construction of a 3.34-km tunnel, three overpasses, six underpasses, and one underpass tunnel.
The construction of the Pozega-Godinjak expressway project is expected to begin later this year and be completed in four years.
ALSO ON THURSDAY, CHINA'S CENTRAL BANK LOWERS REVERSE REPO RATE.
The People's Bank of China (PBOC), the country's central bank, on Thursday cut the rate for the seven-day reverse repos by 0.1 percentage points when injecting liquidity into the banking system.
On Thursday, the central bank conducted 158.6 billion yuan (about 22 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.4 percent, the PBOC said in a statement.
The rate was down from 1.5 percent a day earlier.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Thursday, with the benchmark Shanghai Composite Index up 0.28 percent to 3,352 points.
The Shenzhen Component Index closed 0.93 percent higher at 10,197.66 points.
The combined turnover of these two indices stood at about 1.29 trillion yuan (roughly 179 billion U.S. dollars), down from 1.47 trillion yuan on the previous trading day.
Shares related to aircraft manufacturing and motorbike industries led the gains, while those linked to the ceramic, as well as pesticide and fertilizer sectors were among the biggest losers.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.65 percent to close at 2,029.45 points Thursday.
Hong Kong stocks close 0.37 pct higher
Hong Kong's stock market ended higher Thursday with the benchmark Hang Seng Index up 0.37 percent to close at 22,775.92 points.
The Hang Seng China Enterprises Index rose 0.7 percent to end at 8,300.25 points, the Hang Seng Tech Index rose 0.56 percent to end at 5,228.91 points.
Chinese yuan weakens to 7.2073 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 68 pips to 7.2073 against the U.S. dollar Thursday, 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 higher Thursday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 798.02 yuan per gram, up 7.12 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was 798.51 yuan per gram, up 6.31 yuan from the previous trading day.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
No.1 soybean futures closed lower on Thursday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active No.1 soybean contract for July 2025 delivery dipped 74 yuan (about 10.3 U.S. dollars) to close at 4,154 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 348,217 lots, with a turnover of about 14.52 billion yuan.
Iron ore futures closed lower on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2025 delivery dipped 19.5 yuan (about 2.7 U.S. dollars) to close at 693.5 yuan per tonne.
On Thursday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 690,580 lots, with a turnover of about 48.4 billion yuan.
Cotton futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 5 yuan (about 69 U.S. cents) to close at 12,900 yuan per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 250,307 lots with a turnover of 16.07 billion yuan.
Sugar futures closed lower Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery lost 76 yuan (about 10.54 U.S. dollars) to close at 5,813 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 251,740 lots with a turnover of 14.67 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.