Daily Macro Economy News on June 27

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Domestic News

1. Guiguan Electric Power: Investment in the development of new energy generation projects, with an investment of about 2.189 billion yuan

2. Sinopec gets shallow atmospheric pressure shale gas breakthrough

3. China's proposed law to ensure food security

4. The daily traffic volume of Daqin Railway exceeds 1.2 million tons since summer to protect energy transportation

International News

1. German economic optimism fades, but signs of recovery remain

2. German I business confidence weakens, Q2 GDP may contract for a third consecutive quarter

3. Gas prices in Europe rise on Wagner incident

4. South Korea Considers Lowering Economic Growth Expectations for 2023

More detials:

Domestic News

1. Guiguan Electric Power: Investment in the development of new energy generation projects, with an investment of about 2.189 billion yuan

Guiguan Electric Power announced that it intends to invest in the construction of a photovoltaic project of 75MW in Kenba hamlet, Anma village, Yizhou district, Guangxi Province, a photovoltaic power generation project of 115MW in Xiao Pingyang town, Xingbin district, Laibin city, a photovoltaic project of 150MW in Guiguan Electric Power's Yantai Fushan Huili agricultural photovoltaic project, a total of three photovoltaic projects, and a wind power project of 50MW of Yankong Wind Farm in Jinsha County, with a total project investment of about 2.189 billion yuan.

2. Sinopec gets shallow atmospheric pressure shale gas breakthrough

Sinopec's East China Oil & Gas Branch has learned from the Sinopec News Office that the risky exploring shaft Pingdi 1HF, deployed in the Wulong area of Chongqing, has produced a total of over 8 million cubic meters of gas in more than 2 years since it went into production, with stable daily gas production of 46,000 cubic meters and a preliminary evaluation of 40 million cubic meters of recoverable reserves in a single shaft. The continuous stable and high production breakthrough of this shaft proves that shallow atmospheric pressure shale gas has good exploration and development potential. The Nanchuan shale gas field of East China Oil & Gas Branch is the first atmospheric pressure shale gas field in China, located in a complex tectonic zone at the basin margin. Since it was put into production in 2017, it has produced a total of 5.825 billion cubic meters of shale gas by the end of May 2023, with current daily gas production reaching 4.2 million cubic meters, providing clean energy for the middle and lower reaches of the Yangtze River as one of the four major gas sources for the eastward transmission of Sichuan gas.

3. China's proposed law to ensure food security

In order to guarantee the effective supply of food, ensure national food security, improve the ability to prevent and resist food security risks, maintain economic and social stability, and maintain national security, the draft law on food security was submitted to the Standing Committee of the 14th National People's Congress for consideration at its third meeting on the 26th. This is the first time the draft was submitted to the Standing Committee of the National People's Congress meeting for consideration. (Resource: Xinhua News Agency)

4. The daily traffic volume of Daqin Railway exceeds 1.2 million tons since summer to protect energy transportation

The usual daily traffic of Daqin Railway is about 800,000 to 900,000 tons, but since the summer, the daily traffic has remained above 1.2 million tons, with more than 90 pairs of heavy-duty trains coming and going every day on average, among which there are more than 60 pairs of trains with a length of 2.6 kilometers and a total weight of 21,000 tons.

International News

1. German economic optimism fades, but signs of recovery remain

KfW chief economist Fritz Köhler said in a report that optimism about the German economy has now faded in the spring, and the IFO index released on Monday is one of a series of disappointing indicators. She said the German economy is in "a state of uncertainty", despite the easing of supply bottlenecks, but industrial production has stagnated and new orders have returned to a downward trend. Overall, the IFO Business Climate Index fell to 88.5 in June from 91.5 in May, but she said that with wages rising and inflation easing, the conditions for a modest recovery in consumption in the coming quarters remain in place. In the end, she added that industrial production is still likely to rebound, given that orders are still plentiful.

2. German I business confidence weakens, Q2 GDP may contract for a third consecutive quarter

Germany's IFO business climate index fell to 88.5 in June from 91.5 in May, below the median analyst estimate of 90.5. Capitol macroeconomist Franzka Palmas wrote: "The plunge in the German IFO index, combined with the decline in PMI data released on Friday, suggests that German GDP may have contracted in contracted for the third consecutive quarter in the second quarter. We expect the German economy to remain in recession throughout 2023."

3. Gas prices in Europe rise on Wagner incident

Gas prices in Europe jumped as tensions over the short-lived Russian "Wagner incident" fueled supply concerns in an already volatile market. Benchmark gas rose as much as 13 percent at one point on Monday, while gas prices have soared more than 30 percent this month. In addition, an extended outage at Norway's main gas field offset weaker demand, said Tom Marzac-Manser, head of gas analysis at ICIS in London, adding that geopolitical risks in Russia are now significantly higher than they were before the end of last week and that uncertainty over what might happen inside Russia, rather than Ukraine, in the coming weeks is pushing up gas prices.

4. South Korea Considers Lowering Economic Growth Expectations for 2023

South Korea is considering lowering its economic growth forecast for 2023 to 1.4%-1.5% from 1.6% to reflect the sluggish performance of the semiconductor industry.

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