Market Review
Focus News
Chinese Market
1. Inner Mongolia Issues Second Batch of Special Refinancing Bonds
The issuance of special refinancing bonds is accelerating. Inner Mongolia issued another 40.38 billion yuan in special refinancing bonds, bringing the total issuance of special bonds to 106.7 billion. The Inner Mongolia Finance Department announced that, with the consent of the People's Government of Inner Mongolia Autonomous Region, it has decided to issue the 2023 Inner Mongolia Autonomous Region Government Refinancing Special Bonds (Phase Five), Refinancing General Bonds (Phase Twelve), and Refinancing General Bonds (Phase Thirteen), all intended for repaying existing debts, with planned issuance amounts of 17.42 billion yuan, 8.88 billion yuan, and 14.08 billion yuan, totaling 40.38 billion yuan.
2. Major Regulatory Document on Autonomous Driving Released
Recently, the Ministry of Transport released the "Guidelines for Road Engineering Facilities Supporting Autonomous Driving Technology" (JTG/T 2430-2023, referred to as "Guidelines"). Focused on digital and intelligent development trends, the guidelines offer standards on high-precision satellite navigation positioning, intelligent road construction, cyber security, power supply and distribution, and cloud control platforms, among other technology areas. Authored by the Highway Science Research Institute of the Ministry of Transport with contributions from Huawei, Baidu Intelligent Travel Technology, Gaode Cloud Map Technology, and others, the guidelines will be implemented starting December 1, 2023.
3. The US Indefinitely Exempts Korean Companies from the Ban on Exporting Semiconductor Equipment to China
The South Korean Presidential Office reported that the United States has agreed to allow Samsung Electronics and SK Hynix to supply their factories in China with equipment without additional permits. This means that Samsung Electronics and SK Hynix can supply semiconductor equipment containing American technology to their factories in China without individual approval. Notably, Samsung Electronics and SK Hynix, the world's largest and second-largest memory chip manufacturers, respectively, have been deeply rooted in the Chinese market for many years.
Overseas Market
1. The Fed's Concern for Personal Finance Increases
A survey published by the Fed on Tuesday shows that the short-term inflation expectations of U.S. consumers rose in September compared to August, while long-term inflation expectations fell. The respondents' concerns about their personal financial situation continued to increase, with the average probability of not being able to pay off the minimum debt in the next three months rising to 12.5%, the highest level since May 2020. Consumers' views on the availability of credit now and in the future have slightly deteriorated.
2. Fed Officials Speak Out Again on the Impact of US Treasury Yields
As the so-called "anchor of global asset pricing" has surged recently, more and more Fed officials believe that the sharp rise in U.S. Treasury yields, which tightens financial conditions, could replace further hikes in benchmark interest rates. Previously, hawkish Dallas Fed President Logan and Fed Vice Chair Jefferson mentioned this point. The newest member of this camp is the dovish Atlanta Fed President.
3. The Bank of Israel Sells Dollars to Support the Local Currency
After the Israeli New Shekel fell to its lowest level in seven years, the Bank of Israel announced a $45 billion package that quelled market volatility and successfully curbed speculative bets from the turmoil. This marks the Bank of Israel’s first intervention in the New Shekel in two years and its first time selling dollars in the open market to defend the local currency.
4. IMF Warns Global Economy to Continue "Stumbling Along"
The IMF's latest "World Economic Outlook" shows that the organization has kept its forecast for global real GDP growth in 2023 unchanged at 3.0%, but has downgraded its forecast for 2024 from the prediction in July by 0.1 percentage point to 2.9%. This is still below the historic average of 3.8%. The IMF states that stronger growth is being held back by the ongoing impacts of the pandemic, the Russia-Ukraine conflict, rising interest rates, extreme weather events, and shrinking fiscal support. By 2023, the global total output is expected to be 3.4% lower than pre-pandemic forecasts, about $3.6 trillion.
Today's Focus
Today, investors should pay attention to Germany's September CPI, the US September PPI and core PPI, China's total electricity consumption, and other economic data. In addition, investors should also keep an eye on the Israel-Palestine situation, remarks by Fed Governor Bowman and Fed Governor Waller, and other risk events.
