Everything You Need to Know About China's Economy on Thursday (July 4)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Thursday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, the European Union has imposed extra duties of up to 37.6 percent on imports of electric vehicles (EVs) made in China, the bloc announced.
China hopes that the EU will work with it in the same direction and show sincerity in advancing the consultation concerning the EU's anti-subsidy probe into Chinese electric vehicles (EVs), the Ministry of Commerce (MOC) said Thursday.
The consultation should be based on facts and rules and should result in a solution that is acceptable for both sides as soon as possible, MOC spokesperson He Yadong said at a press briefing.
The ministry's update on this matter came after the two sides agreed to start consultation following talks between Chinese Minister of Commerce Wang Wentao and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis via a video link on June 22.
MEANWHILE, The Chinese mainland will unveil new measures to expand market access for service businesses and professionals from the Hong Kong Special Administrative Region (HKSAR), China's Ministry of Commerce said on Thursday.
These measures will profit service sectors in which Hong Kong has a strong presence, such as law, finance, architecture and audiovisual services, spokesperson He Yadong told a press conference.
He made the remarks in response to a question about a recent agreement between the mainland and Hong Kong to further liberalize and enhance cooperation in services trade.
The agreement was reached following consultations among the commerce ministry, relevant departments and the HKSAR government under the Closer Economic Partnership Arrangement (CEPA), according to an earlier statement issued by the ministry.
Signed between the mainland and Hong Kong in 2003, the CEPA has significantly facilitated trade liberalization in both goods and services.
ALSO ON THURSDAY, the Ministry of Commerce said China's service trade continued to experience rapid growth in the first five months of 2024, with value up 16 percent year on year, with stellar growth in travel services.
The total value of service imports and exports reached 3.02 trillion yuan (about 415.6 billion U.S. dollars).
Exports amounted to about 1.22 trillion yuan, up 11 percent, while imports stood at 1.8 trillion yuan, with a robust growth of 19.6 percent. This resulted in a service trade deficit of about 580 billion yuan.
Maintaining a high growth rate, travel services imports and exports totaled 819.72 billion yuan, a 48.4 percent increase, making it the largest sector in service trade.
The knowledge-intensive service trade continued to expand, with a total of 1.19 trillion yuan in imports and exports, a 6 percent increase.
IN TODAY'S FINANCIAL MARKET,
Shanghai Composite Index Fell 0.83% on Thursday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.83% on Thursday, while the Shenzhen Component Index (399001.SZ) fell 0.99%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 1.63% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) fell 0.78%.
Chinese yuan strengthens to 7.1305 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 7 pips to 7.1305 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.
Hong Kong's Hang Seng Index closes 0.28 pct higher
Hong Kong's stock market ended higher on Thursday with the benchmark Hang Seng Index up 0.28 percent to close at 18,028.28 points.
The Hang Seng China Enterprises Index climbed 0.23 percent to end at 6,470.86 points, while the Hang Seng Tech Index rose 0.63 percent to close at 3,649.67 points.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed lower Thursday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2024 delivery lost 130 yuan (about 18.23 U.S. dollars) to close at 14,650 yuan per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 418,540 lots with a turnover of 30.87 billion yuan.
Sugar futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2024 delivery gained 52 yuan (7.29 U.S. dollars) to close at 6,261 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 454,484 lots with a turnover of 28.17 billion yuan.
Iron ore futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery gained 15 yuan (about 2.1 U.S. dollars) to close at 864.5 yuan per tonne.
On Thursday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 391,138 lots, with a turnover of about 33.6 billion yuan.
No.1 soybean futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2024 delivery gained 16 yuan (about 2.24 U.S. dollars) to close at 4,708 yuan per tonne.
On Thursday, the total trading volume of five listed No.1 soybean futures contracts on the exchange was 90,078 lots, with a turnover of about 4.22 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.