Everything You Need to Know About China's Economy on Tuesday (April 23)
Your Daily & Trustworthy Updates on the Chinese Economy
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Good Tuesday! This is TIAN in Beijing.
Welcome to monitor the pulse of China’s economy together with me.
DRIVING THE DAY, China's National Development and Reform Commission and the Ministry of Finance have jointly completed the selection of around 38,000 projects to be supported by local government special bonds this year.
The demand for special bonds in 2024 is around 5.9 trillion yuan, the commission said.
China plans to issue 3.9 trillion yuan (about 548.84 billion U.S. dollars) in the form of special-purpose bonds for local governments in 2024, an increase of 100 billion yuan compared to last year, according to the 2024 government work report.
In the next stage, the commission will guide local governments to ensure project quality and expedite project construction, as well as the use of funds in a manner that will actively expand effective investment.
MEANWHILE, China’s central bank is collecting public comments for a set of guidelines governing the country’s 185 nonbank payment providers including Alipay and WeChat Pay, offering a five-year window for institutions to comply, China’s Caixin Media reported.
The People’s Bank of China Monday issued the draft guidelines, spelling out implementation details of the new industry regulations approved by the State Council late last year and due to take effect on May 1.
The guidelines specify requirements of the regulations, clarify issues of concern in the industry and detail measures for complying with the new rules.
According to the draft guidelines, institutions will have up to five years to comply depending on their business license, and the regulations will not affect business activities that have already been licensed.
ALSO ON TUESDAY, the China-Laos Railway had handled over 8 million tonnes of import and export goods as of Sunday, said Kunming Customs.
On Sunday, durian imports from Thailand were shipped into China via the Lancang-Mekong Express service of the China-Laos Railway. Compared with the same period last year, durian imports via the China-Laos railway so far this year surged by more than 7 times.
The import and export goods transported via the China-Laos Railway include fruits, grains, frozen seafood, electronic and mechanical products, mineral products and new energy vehicles.
As a landmark project of high-quality Belt and Road cooperation, the 1,035-km China-Laos Railway connects Kunming, capital of Yunnan Province, with the Laotian capital Vientiane. It began operations in December 2021.
IN TODAY'S FINIANCIAL MARKET,
Shanghai Composite Index Fell 0.74% on Tuesday
China’s benchmark Shanghai Composite Index (000001.SH) lost 0.74% on Tuesday, while the Shenzhen Component Index (399001.SZ) fell 0.61%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) lost 0.54% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) rose 0.15%.
Chinese yuan weakens to 7.1059 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 16 pips to 7.1059 against the U.S. dollar Tuesday, 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 1.92 pct higher
Hong Kong's stock market ended higher on Tuesday with the benchmark Hang Seng Index up 1.92 percent to close at 16,828.93 points.
The Hang Seng China Enterprises Index rose 2.12 percent to end at 5,954.62 points, and the Hang Seng Tech Index jumped 3.38 percent to close at 3,449.1 points.
China's central bank adds liquidity via reverse repos
China's central bank conducted 2 billion yuan (about 281.5 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Tuesday.
The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said in a statement.
China's benchmark interbank gold prices lower Tuesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 562.6 yuan (about 79.18 U.S. dollars) per gram, down 5.54 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above went down 9 yuan from the previous trading day to 556.55 yuan.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES,
No.1 soybean futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for July 2024 delivery dipped 20 yuan (about 2.81 U.S. dollars) to close at 4,610 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 124,115 lots, with a turnover of about 5.74 billion yuan.
Iron ore futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2024 delivery dipped 16.5 yuan (about 2.32 U.S. dollars) to close at 849 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 568,806 lots, with a turnover of about 49.02 billion yuan.
Sugar futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active sugar contract for September 2024 delivery lost 23 yuan (3.24 U.S. dollars) to close at 6,182 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 488,961 lots with a turnover of 30.41 billion yuan.
Cotton futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active cotton contract for September 2024 delivery lost 20 yuan (about 2.81 U.S. dollars) to close at 15,840 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 306,602.0 lots with a turnover of 24.29 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.