The question is, will the yuan reach 6 to the dollar? Photo: Supplied

The trading volume under China’s Bond Connect program reached 422.1 billion yuan (US$59.76 billion) in June, up 145% from 172.2 billion yuan in the same period last year.

The program saw a total of 5,318 trade tickets, with an average daily turnover of 21.1 billion yuan last month, the report showed, according to a monthly report released by Bond Connect Co Ltd. In June 2019, the average daily turnover was 9.06 billion yuan.

By the end of last year, the program had 2,012 approved international investors, including 72 of the top 100 global asset management companies, the report said, adding that the program welcomed its first investor from Russia last month.

The Bond Connect program, launched in July 2017, is a mutual market access scheme that allows overseas investors to invest in the Chinese mainland’s interbank bond market using financial institutions on the mainland and in Hong Kong.

New third board

China’s National Equities Exchange and Quotations (NEEQ), also known as the “new third board,” has seen a turnover of 51.94 billion yuan so far this year.

From June 29 to July 3, its turnover reached 2.79 billion yuan. As of Friday, 8,539 companies were listed on the NEEQ.

The board was launched in 2013 to supplement the Shanghai and Shenzhen stock exchanges to serve small and medium-sized enterprises.

China has outlined a series of reforms to better orient the NEEQ to the needs and features of small enterprises and support the quality growth of the real economy.

Blockchain deployment

Beijing has unveiled an action plan to boost blockchain deployment, integrating the transaction data technology into the city’s operations.

Under the Beijing Blockchain Innovation Development Action Plan 2020-2022, it is expected the city will initially become an influential new highland for blockchain innovation, application demonstration, industrial development and talent by 2022.

The plan outlines four key strategies and 20 specific tasks, including building platforms for theory and technology research, building and implementing multi-field application scenarios and building a leading team of blockchain talent.

In finance and taxation, the city will focus on real estate registration and unified electronic bills.

Beijing is also planning to foster a business climate favorable to blockchain innovation and enterprises with great growth potential. It will also set up a special fund to allocate government funding to blockchain projects.

Bulk commodity market

China’s bulk commodity market saw slower growth in June amid shrinking sales, industrial data showed on Sunday.

The China Bulk Merchandise Index (CBMI), a gauge of domestic bulk commodity market growth, stood above the boom-or-bust line of 100% at 105.2% in June, down 0.7 percentage points from May, according to the China Federation of Logistics and Purchasing (CFLP).

The sub-index for bulk commodity sales expanded slower in June compared with the previous month, while the sub-indices for supply and stocks grew faster, pointing to oversupply in the market and weak activities in the slack season.

The market is expected to be faced with greater downward pressure this month as ongoing heatwaves in July weigh down demand, the federation said.

However, the CFLP predicted that the weakening of the domestic bulk commodity market will be limited as the economy remains on the path to recovery and pro-growth policies will drive up demand.

Railway investment

China’s fixed-asset investment (FAI) in railways reported growth in the first six months of 2020 despite the adverse impact of the Covid-19 epidemic, said the China State Railway Group.

The FAI in national railway projects came in at 325.8 billion yuan in the first half of this year, edging up 1.2% year on year, according to the company.

Among all projects, investment in railway infrastructure rose 3.7% year on year to 245.1 billion yuan, with 1,178km of railways newly put into operation as of July 1.

The story was written by Xu Jiangshan and Liu Licong and first published at It was translated by Nadeem Xu.

Xu Yuenai

Xu Yuenai is a Beijing-based columnist specializing in international relations.