Market Insights: April 7th, 2024

Financial Policy and Market Dynamics:

• The People's Bank of China conducted a 20 billion yuan reverse repo operation, aimed at ensuring sufficient and reasonable liquidity in the banking system.
• Market expectations for the Federal Reserve (Fed) rate policy have decreased from seven rate cuts to three, with the possibility of further reduction to zero.
• Expectations for a Fed rate cut in June have dropped to 50.8%. Bank of America notes that if rates are not cut in June, it is unlikely there will be any cuts in the second half of the year.

Private Funds and ETFs:

• 368 private funds appeared in the list of top ten holders of 290 listed public funds, including 223 ETFs, holding a total of 9.717 billion shares of ETFs.
• Some private institutions allocate assets through ETFs. Dongfang Harbor focuses on U.S. stock ETFs, Jinglin Assets allocates Hong Kong stocks through ETFs, Dunhe Assets occupies four positions in the ICBC Daiwa Nikkei 225 ETF, “national team” private fund products allocate a significant amount to state-owned enterprise ETFs, while the foreign capital Bridgewater Associates invests heavily in gold ETFs.

Technology Industry:

• Tesla's CEO Elon Musk announced the launch of autonomous taxis on August 8, reigniting interest in Tesla and leading to a nearly 4% increase in Tesla's stock price in after-hours trading on Friday.

Gold Market:

• International gold prices continue to rise, leading to a sustained increase in domestic retail gold prices. Currently, the price of 24K gold jewelry in brands such as Chow Tai Fook, Chow Sang Sang, and Chow Tai Seng has surpassed 710 yuan per gram.

Fund Market:

• Recently, the equity market has warmed up, and the bond market has also shown a strong performance. In March, the number of funds issued exceeded one hundred, and the issuance amount returned to the hundred billion mark.
• Currently, there are over 110 new funds in the process of issuing or waiting to be issued, including several China A50 ETF Link funds. Several public fund institutions and individuals have expressed that with the improvement in market expectations, the issuance of equity funds is expected to further warm up.

Economic Situation:

• China's GDP for the first quarter of 2024 is expected to be released in mid to late April. This year's government work report sets a primary goal of around 5% growth in GDP.
• As of the end of the first quarter, multiple economic indicators show that China's economy is improving, with new momentum continuously being cultivated and strengthened, creating a good start for economic development.