1. According to a Caixin index, China's new economy lost momentum in July as declining capital and technology investments placed downward pressure on high value-added sectors [para. 1]. The specific headline reading of the Caixin BBD New Economy Index (NEI) was 33.8, representing a drop of 0.3 points from the previous month [para. 2]. This figure indicates that new economy industries accounted for 33.8% of China's total economic inputs in July [para. 2].
2. The NEI uses big data to measure the size of China's new economy, tracking inputs of labor, capital, and technology across 10 emerging industries relative to all industries in the economy [para. 4]. Launched in March 2016, the index defines a new economy industry as one that is technology- and human-capital-intensive but asset-light, experiencing sustainable and rapid growth, and strategically encouraged by the government [para. 8].
3. A detailed breakdown of the index's subcomponents reveals mixed performance. The subindex tracking capital inputs, which carries a 35% weighting in the overall NEI, suffered the most significant decline [para. 5]. It dropped sharply by 2.7 points on a month-on-month basis, settling at a reading of 46.8 [para. 5].
4. The gauge for technology inputs also lost ground, dipping by 0.4 points to 33 [para. 6]. This subindex, which accounts for a 25% weighting in the NEI, specifically measures the number of research personnel hired by the tracked industries [para. 6]. Additionally, it monitors the innovation output of these sectors by counting the number of new inventions created and patents obtained [para. 6].
5. In contrast to the declines seen in capital and technology gauges, the labor inputs subindex exhibited an upward trend during the month [para. 7]. This gauge rose by 1.7 points to reach 22.9 [para. 7]. Holding the largest weighting in the overall index at 40%, it tracks the salaries offered and the number of job positions available at new economy companies [para. 7].
6. In terms of sectoral contributions to the headline reading, the new information technology industry remained the largest single contributor to the index [para. 9]. This sector contributed 12.2 points to the total NEI score in July [para. 9].
7. The report also provided data on compensation for entry-level jobs in these sectors [para. 10]. Based on statistics compiled from various online career and recruitment websites, the average monthly entry-level salary across the 10 tracked industries was 13,580 yuan, which is equivalent to approximately $2,011 [para. 10]. This represents a month-on-month increase of 466 yuan [para. 10].
8. The monthly NEI reports are jointly compiled by the Caixin Insight Group and the Chinese big-data research firm BBD [para. 11]. This work is conducted in collaboration with the National School of Development at Peking University [para. 11].
AI generated, for reference only
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