Everything You Need to Know About China's Economy on Wednesday (July 2)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY! This is TIAN in Beijing, welcoming you to your Wednesday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA TIGHTENS ANTI-MONEY LAUNDERING RULES FOR PRECIOUS METALS AND GEMSTONE DEALERS.
China's central bank has issued new anti-money laundering and counter-terrorism financing regulations specifically targeting dealers of precious metals and gemstones operating within the country.
The new rules by the People's Bank of China (PBOC) aim to prevent money laundering and terrorist financing, combat related crimes, and standardize practices within this sector, according to a recent statement from the PBOC.
Effective on Aug. 1, dealers will be required to meet specific anti-money laundering and counter-terrorism financing obligations for any cash transaction valued at 100,000 yuan (about 13,977 U.S. dollars) or more, or the equivalent amount in foreign currency, according to the new rules.
This includes reporting any single cash transaction or cumulative daily cash transactions reaching or exceeding the 100,000 yuan threshold to the China Anti-Money Laundering Monitoring and Analysis Center. Such reports must be submitted within five working days of the transaction date.
The rules apply to all dealers legally engaged in spot trading of precious metals like gold, silver, platinum, and gemstones such as diamonds and jade within China.
MEANWHILE, **CHINA RELEASES NATIONAL STANDARDS FOR EMERGING INDUSTRIES**
China's State Administration for Market Regulation on Wednesday said that it has released a series of national standards for emerging industries such as artificial intelligence (AI).
Seven national standards have been released -- covering AI, information technology and the Internet of Things -- to provide technical support for the expansion of digital services and applications, the administration said.
Another five national standards cover data centers, cybersecurity technologies, and systems and software engineering, supporting deeper integration and interconnection throughout the digital economy.
The administration has released national standards on the safety of electric earthmoving machinery and the general requirements for battery-swap systems, improving the standards system for the electrification of traditional construction equipment and supporting the green transformation and upgrading of traditional industries, the administration said.
It has also released a range of national standards covering such areas as elderly care and child care, transportation and energy, agriculture and rural development, and green and low-carbon development.
ALSO ON WEDNESDAY, CHINA'S FIRST GREEN METHANOL INJECTION COMPLETED ON DIESEL-FUELED VESSEL.
China's first batch of green methanol produced from urban waste was refueled into a conventional diesel vessel at Yangpu Port in south China's island province of Hainan on Wednesday, marking a milestone in the domestic green shipping industry.
The green methanol is produced by China BlueChemical Ltd. (China BlueChem), affiliated with China National Offshore Oil Corporation, using biogas generated from the fermentation of urban kitchen waste, animal manure and other wastes as raw materials.
The injection of the green methanol amounting to 200 tonnes can reduce carbon dioxide emissions by approximately 325 tonnes, equivalent to the carbon sink effect of planting over 19,000 trees.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed lower on Wednesday, with the benchmark Shanghai Composite Index down 0.09 percent to 3,454.79 points.
The Shenzhen Component Index closed 0.61 percent lower at 10,412.63 points.
The combined turnover of these two indices stood at 1.38 trillion yuan (about 192.9 billion U.S. dollars), down from 1.47 trillion yuan on the previous trading day.
Shares in the papermaking and cement industries led the gains, while those in aircraft manufacturing and electronic information sectors suffered the most.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.13 percent to close at 2,123.72 points on Wednesday.
Hong Kong's Hang Seng Index closes 0.62 pct higher
Hong Kong's Hang Seng Index ended higher Wednesday, up 0.62 percent to close at 24,221.41 points.
The Hang Seng China Enterprises Index rose 0.54 percent to end at 8,724.9 points, and the Hang Seng Tech Index fell 0.64 percent to end at 5,269.11 points.
Chinese yuan weakens to 7.1546 against USD Wednesday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 12 pips to 7.1546 against the U.S. dollar Wednesday, 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 Wednesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 767.93 yuan per gram, up 5.53 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was up 8.45 yuan from the previous trading day to 772.88 yuan.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
No.1 soybean futures closed higher on Wednesday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active No.1 soybean contract for September 2025 delivery gained 22 yuan (about 3.07 U.S. dollars) to close at 4,151 yuan per tonne.
On Wednesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 134,742 lots, with a turnover of about 5.56 billion yuan.
Iron ore futures closed higher on Wednesday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2025 delivery gained 12 yuan (about 1.68 U.S. dollars) to close at 722.5 yuan per tonne.
On Wednesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 585,431 lots, with a turnover of about 41.62 billion yuan.
Cotton futures closed higher Wednesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 70 yuan (about 9.78 U.S. dollars) to close at 13,805 yuan per tonne.
On Wednesday, the total trading volume for six listed cotton futures contracts on the ZCE was 259,796 lots with a turnover of 17.9 billion yuan.
Sugar futures closed lower Wednesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery lost 15 yuan (about 2.1 U.S. dollars) to close at 5,766 yuan per tonne.
On Wednesday, the total trading volume for six listed sugar futures contracts on the ZCE was 353,579 lots with a turnover of 20.17 billion yuan.
As the world's important consumer and importer of sugar, China listed sugar futures on ZCE in January 2006, helping sugar-related enterprises hedge the price risk.
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.