Investment in China’s New Economy Sectors Shrinks, Caixin Index Shows

The contribution of high-value-added industries such as biotechnology to China’s economic output declined in October due to a decline in capital and labor investment, Caixin data showed Wednesday.

Caixin BBD New Economy Index (NEI) came in at 28.5 Last month, showing that the new economy companies under investigation accounted for 28.5% of China’s overall economic activity. The reading was down 1.8 points from 30.3 in September.

The latest developments in the Covid outbreak and containment measures have devastated the world’s second largest economy, affecting both. production and job duties.

NEI uses big data to determine the size of Chinese startups. It measures labor, capital and technology in 10 emerging industries in relation to people employed in all industries.

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The contraction in the NEI last month was due to the decrease in the subindex for investment. The subindex, which has a 35% weighting, fell 4.4 points month-on-month to 32.8 in October.

The subindex for employment decreased, losing 1.9 points to the bottom on 24 October. The survey, which has a weight of 40%, measures the income of employees and the number of positions in the new economy.

The technical input subindex, meanwhile, posted a gain of 2.1 points month-on-month to 29.8 in October. The sample consisted of 25% and measured the number of research workers a company employed, the number of inventions, and the number of patents received.

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Launched in March 2016, the NEI defines new economic enterprises as those that are technology- and human capital, but material-light; sustainable and fast-moving experience; and it is well supported by the government.

Among the 10 companies surveyed, the new technology industry continued to contribute in October, accounting for 7.7 points of the NEI reading, although its share fell from 8.3 points in the previous month. go. The contribution of new energy companies rose significantly from 4.2 points, mainly due to the increase in the number of new businesses.

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The average monthly entry-level salary at surveyed companies was 14,218 yuan ($1,956) in October, 161 yuan higher than in September, according to data compiled from online services and recruitment websites.

It is owned by Caixin Data Technology Co. Ltd and Chinese big data research firm BBD write the monthly NEI report, in collaboration with the National School of Development at Peking University.

Contact reporter Zhang Ziyu ([email protected]) and edited by Jonathan Breen ([email protected])

Read more about it Caixin Economic Index.

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