Aug 02, 2019 08:50 PM

Caixin New Economy Index Dips in July as Capital, Tech Inputs Drop

A solar cell production line in Lianyungang, in Jiangsu province, on July 11, 2019. Photo: VCG
A solar cell production line in Lianyungang, in Jiangsu province, on July 11, 2019. Photo: VCG

High value-added industries contributed less to China’s overall economic inputs in July due to shrinking capital and technology inputs, a Caixin index showed Friday.

The Mastercard Caixin BBD New Economy Index (NEI) came in at 28.7 in July, indicating that new-economy industries accounted for 28.7% of China’s overall economic input activities. The reading was just off a seven-month high of 30 in the previous month. The NEI measures labor, capital and technology inputs in 10 emerging industries relative to those in all industries.

Among the three subindexes that make up the NEI, the one for capital inputs, which has a weighting of 35% in the index, recorded a drop in July, falling 2.2 points to 32 from the previous month.

The subindex for technology inputs, which has a weighting of 25%, fell 1.8 points to 27.3 in July. Technology inputs measure the number of research personnel recruited by the tracked industries, and the number of inventions they created and patents they obtained.

The subindex for labor inputs, with a weighting of 40%, edged down to 26.6 in July from 26.8 in the month before.

Launched in March 2016, the NEI defines a new-economy industry as one that is human capital- and technology-intensive but asset-light, experiences sustainable and rapid growth, and is in a strategic new sector supported by the government.

Among the 10 tracked industries, the new information technology industry continued to be the largest contributor in July, making up 8.8 percentage points of the NEI reading. Biotech was the fastest-growing industry last month, making up 3.7 percentage points of the reading, up from 3.1 in June.

The average monthly entry-level salary in new economy industries, based on data compiled from online career and recruitment websites, rose slightly to 10,880 yuan ($1,577) in July from 10,867 yuan in the month before. The gauges measuring employment in small, midsize and large companies in the private sector all went down in July.

The monthly NEI reports are written by Caixin Insight Group — a financial data and analysis platform of Caixin Media, and Chinese big-data research firm BBD, in collaboration with the National School of Development at Peking University.

Contact reporter Guo Yingzhe (

Read more about Caixin’s economic indexes.

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