Everything You Need to Know About China's Economy on Friday (June 27)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is Tian in Beijing, welcoming you to your Friday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA, U.S. HAVE CONFIRMED DETAILS ON FRAMEWORK FOR IMPLEMENTING GENEVA TRADE TALKS CONSENSUS: COMMERCE MINISTRY.
Economic and trade teams from China and the United States have recently further confirmed the details on the framework for implementing the important consensus reached by the two heads of state during their phone talks on June 5, and consolidating the outcomes of the economic and trade talks in Geneva, a spokesperson for the Chinese Ministry of Commerce said Friday.
The confirmation of these details came as the two sides maintained close communication following economic and trade talks in London from June 9 to 10, the spokesperson said when responding to a related media query.
China will review and approve applications for the export of eligible controlled items in accordance with the law, and the United States will remove a series of restrictive measures imposed on China accordingly, the spokesperson said.
China hopes that the United States will leverage the role of the China-U.S. economic and trade consultation mechanism further, enhance mutual understanding continuously, reduce misunderstandings, and strengthen cooperation to promote the healthy, stable and sustainable development of China-U.S. economic and trade relations, the spokesperson said.
ALSO ON FRIDAY, CHINA EXTENDS ANTI-DUMPING DUTIES ON TOLUIDINE IMPORTS FROM EU FOR ANOTHER 5 YEARS.
China's Ministry of Commerce announced Friday that it would extend anti-dumping duties on imports of toluidine, an organic chemical widely used in the production of dyes, medicines and farm chemicals, from the European Union (EU) for another five years, starting Saturday.
China imposed anti-dumping duties on toluidine imports from the EU in 2013 on the grounds that the products were being dumped on the Chinese market below market prices. In 2019, the country extended these duties for another five years.
The latest decision follows a review launched a year ago that found the domestic industry would be harmed if anti-dumping duties were discontinued.
Anti-dumping duty rates will be 19.6 percent for the chemical from LANXESS Deutschland GmbH and 36.9 percent for imports from all other EU companies.
MEANWHILE, CHINA ISSUES NEARLY 2 TRILLION YUAN IN NEW LOCAL GOV'T BONDS IN JAN-MAY.
China's local governments issued new bonds worth an approximate total of 1.98 trillion yuan (about 277 billion U.S. dollars) in the first five months of this year, data from the Ministry of Finance showed on Friday.
Of that total, general-purpose bond issuance came in at 351 billion yuan, and special-purpose bond issuance amounted to over 1.63 trillion yuan.
From January to May, local government bonds were issued with an average term of 16.4 years and at an average interest rate of 1.95 percent.
By the end of May, China's outstanding local government debts stood at approximately 51.25 trillion yuan, the ministry said.
IN ADDITION, CHINA'S REVISED ANTI-UNFAIR COMPETITION LAW TO TAKE EFFECT OCT. 15.
Chinese lawmakers on Friday passed a revised version of the anti-unfair competition law, which will take effect on Oct. 15, 2025.
The revised law, adopted at a session of the Standing Committee of the National People's Congress, China's top legislature, consists of five chapters that include general provisions, acts of unfair competition, investigation of suspected violations, legal liabilities and supplementary provisions.
The law stipulates that China will improve the rules and systems to combat unfair competition, strengthen law enforcement and judicial work in this area, maintain the order of market competition, and promote a unified, open, competitive and orderly market system.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed mixed on Friday, with the benchmark Shanghai Composite Index down 0.7 percent to 3,424.23 points.
The Shenzhen Component Index closed 0.34 percent higher at 10,378.55 points.
Hong Kong stocks close lower
Hong Kong's stock market ended lower Friday with the benchmark Hang Seng Index down 0.17 percent to close at 24,284.15 points.
The Hang Seng China Enterprises Index fell 0.47 percent to end at 8,762.47 points, and the Hang Seng Tech Index dipped 0.07 percent to 5,341.43 points.
Chinese yuan weakens to 7.1627 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 7 pips to 7.1627 against the U.S. dollar Friday, 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 Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 772.13 yuan per gram, 0.63 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above was up 2.15 yuan from the previous trading day to 773.64 yuan.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Iron ore futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery gained 14 yuan (about 1.95 U.S. dollars) to close at 716.5 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 584,954 lots, with a turnover of about 41.62 billion yuan.
Cotton futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 75 yuan (about 10.47 U.S. dollars) to close at 13,760 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 250,977 lots with a turnover of 17.23 billion yuan.
No.1 soybean futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2025 delivery dipped 12 yuan (about 1.68 U.S. dollars) to close at 4,140 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 114,230 lots, with a turnover of about 4.72 billion yuan.
Sugar futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 13 yuan (1.81 U.S. dollars) to close at 5,792 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 261,491 lots with a turnover of 15.05 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.