Everything You Need to Know About China's Economy on Tuesday (June 24)
Your Daily & Trustworthy Updates on the Chinese Economy
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HOWDY. Tian here in Beijing, welcoming you to your Tuesday edition of Everything You Need to Know About China's Economy.
DRIVING THE DAY, CHINA TO PROMOTE HIGH-QUALITY DEVELOPMENT OF GOLD INDUSTRY.
China will promote the high-end, intelligent, green and safe development of its fast-growing gold industry, according to the Ministry of Industry and Information Technology (MIIT) .
Recently, the ministry and eight other government departments, including the National Development and Reform Commission, the Ministry of Commerce and the Ministry of Natural Resources, issued an action plan for the high-quality development of the gold industry from 2025 to 2027.
The introduction of the action plan aims to balance industrial growth with enhanced security while capitalizing on China's existing strengths in gold smelting, processing capacity and operational management, according to the MIIT.
China's capacity to ensure gold resources and the innovation level of its industrial chain will be improved significantly by 2027, per the plan. The country's gold resources will increase by 5 percent to 10 percent during the period, and its output of gold and silver will grow by more than 5 percent.
By 2027, breakthroughs will be achieved in multiple areas of key technology and equipment. Additionally, industrial upgrades will ensure that mines with a daily gold-processing capacity exceeding 500 tonnes account for over 70 percent of the national total.
China reported a gold output of 377.24 tonnes and a gold consumption of 985.31 tonnes in 2024, data from the China Gold Association shows.
MEANWHILE, ZOU JIAYI HAS BEEN ELECTED AS THE NEXT PRESIDENT OF THE ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB).
Zou is an experienced leader with over three decades of experience in global financial policy, according to the bank's official website.
As the former Chinese vice minister of finance, she has been instrumental in China's engagement with major international financial institutions. Her experience spans organizations such as the World Bank Group, the Asian Development Bank and the New Development Bank.
Zou's five-year term will begin Jan. 16, 2026, the day after founding President Jin Liqun concludes his second five-year term.
The AIIB is a multilateral development bank dedicated to financing "infrastructure for tomorrow," with sustainability at its core. Having started operations in 2016, the AIIB now has 110 approved members worldwide.
ALSO ON TUESDAY, CHINA OPPOSES EU'S PROTECTIONIST MOVE AGAINST CHINESE FIRMS: MINISTRY
China firmly opposes the protectionist step of the EU to limit the participation of Chinese firms and products in major public procurement tenders involving medical devices, the Ministry of Commerce said Tuesday.
This statement from China came after the European Commission last Friday opted to restrict participation by Chinese businesses and products in public procurement tenders in the medical device sector under the EU's International Procurement Instrument.
A spokesperson with the commerce ministry urged the EU to rectify its wrong approach and pledged measures to safeguard the lawful rights and interests of Chinese enterprises.
Despite China's consistent demonstration of goodwill and sincerity through bilateral dialogues, the EU has persisted in deploying unilateral measures and erecting new protectionist barricades that not only harm Chinese enterprises but also severely distort fair competition, the spokesperson said.
As this year marks the 50th anniversary of diplomatic ties between China and the EU, China is ready to proceed from the broader interests of bilateral economic and trade relations to implement the important consensus reached by leaders of both sides, properly address trade frictions through dialogue and consultation, and stabilize confidence and expectations of cooperation between Chinese and European enterprises, the spokesperson added.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Tuesday, with the benchmark Shanghai Composite Index up 1.15 percent to 3,420.57 points.
The Shenzhen Component Index closed 1.68 percent higher at 10,217.63 points.
The combined turnover of these two indices stood at 1.41 trillion yuan (about 197.42 billion U.S. dollars), up from 1.12 trillion yuan on the previous trading day.
Shares in the solid-state battery, robotics and gaming sectors led the gains, while those related to oil and gas, shipping and precious metals were among the biggest losers.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.3 percent to close at 2,064.13 points Tuesday.
Hong Kong stocks close higher
Hong Kong stock market ended higher Tuesday with the benchmark Hang Seng Index up 2.06 percent to close at 24,177.07 points.
The Hang Seng China Enterprises Index rose 1.9 percent to end at 8,760.45 points, and the Hang Seng Tech Index jumped 2.14 percent to end at 5,297.96 points.
China's benchmark interbank gold prices higher Tuesday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 777.66 yuan per gram, 1.60 yuan higher from the previous trading day.
The price for gold that is 99.99 percent pure or aboves stood at 777.98 yuan per gram, up 0.58 yuan per gram.
Chinese yuan strengthens to 7.1656 against USD Tuesday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 54 pips to 7.1656 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.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Cotton futures closed higher Tuesday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery gained 130 yuan (about 18.14 U.S. dollars) to close at 13,610 yuan per tonne.
On Tuesday, the total trading volume for six listed cotton futures contracts on the ZCE was 322,455 lots with a turnover of 21.81 billion yuan.
Sugar futures closed lower Tuesday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery lost 16 yuan (2.23 U.S. dollars) to close at 5,710 yuan per tonne.
On Tuesday, the total trading volume for six listed sugar futures contracts on the ZCE was 216,419 lots with a turnover of 12.32 billion yuan.
Iron ore futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery dipped 3 yuan (about 42 U.S. cents) to close at 703 yuan per tonne.
On Tuesday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 355,010 lots, with a turnover of about 24.94 billion yuan.
No.1 soybean futures closed lower on Tuesday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2025 delivery dipped 29 yuan (about 4.05 U.S. dollars) to close at 4,227 yuan per tonne.
On Tuesday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 141,223 lots, with a turnover of about 5.96 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.