Market Review
Focus News
China Market
1. The People's Bank of China: Firmly Prevent the Risk of Exchange Rate Overshooting
The central bank stated in the "China Monetary Policy Execution Report for Q2 2023" that it is crucial to maintain the RMB at a reasonably balanced level, pay attention to risks in key areas, coordinate the resolution of local debt risks, increase support for the transformation of urban villages and the construction of affordable housing, and appropriately adjust real estate policies to mitigate market risks.
2. Evergrande Group Files for Bankruptcy Protection in the US
Evergrande Group has applied for creditor protection at a bankruptcy court in Manhattan, US. In its court filings, Evergrande stated that it is seeking recognition for restructuring talks conducted in locations such as Hong Kong, the Cayman Islands, and the British Virgin Islands. Analysts believe that this move is aimed at protecting its US assets from creditors while continuing restructuring deals elsewhere.
3. New Real Estate Policies Introduced in Various Regions of China
Several cities continue to optimize and adjust housing purchase policies. For instance, Nanchang has implemented a minimum down payment ratio of 20% for first-time home buyers and 30% for those purchasing a second home. Xiamen has reduced the down payment ratio for second homes to 40% and lowered the mortgage interest rate to 4.8%. Wenzhou has set the down payment ratio for the first public fund loan at 20% and 40% for the second.
4. A-Share Market Witnesses a Rare "Buyback Craze"
As of Thursday night, more than 30 listed companies on the A-share market, with their chairpersons, actual controllers, or shareholders proposing to buy back company stocks. These companies are primarily from the Science and Technology Innovation Board, covering industries such as electronics, biomedicine, and technology.
Overseas Markets
1. Fed's Actions Gain Public Approval
A survey released by the Federal Reserve Bank of New York shows that American consumers consider the Federal Reserve's monetary policy to be the main reason for cooling inflation, followed by improvements in global goods and supply chains. Over the past year, the US annual CPI has significantly cooled, currently standing at only one-third of its peak in June 2022.
2. U.S. Used Car Prices Rise for the First Time in Four Months
Industry research firm Cox Automotive reported that in the first half of August, the wholesale prices of used cars in the US increased by 0.1% month-over-month, marking the first rise in four months. The increase in used car prices further strengthens expectations for stubborn inflation and more significant interest rate hikes by the Fed following the stabilization of energy and food prices.
3. Institutions Predict a Brief and Mild Recession in the US
The US Conference Board Leading Economic Index declined by -0.4%, although it has been dropping for 16 consecutive months, the decline is the smallest since August 2022. The Conference Board's latest forecast indicates that the US economy may experience a brief and mild recession during Q4 of this year and Q1 of next year.
4. Initial Claims Data Show U.S. Labor Market Remains Resilient
Although rising financing costs have impacted various industries, leading to some companies downsizing their recruitment scales, the US's slowed increase in initial jobless claims last week indicates that the labor market remains robust. The economic resilience discourages employers from layoffs.
5. Japanese Bond Auction Intensifies Global Bond Sell-Off
The results of the Japanese Ministry of Finance's 20-year government bond auction recorded the worst performance since 1987. Following the auction results, the yield on 20-year Japanese government bonds traded in the secondary market reached its highest level since January this year. This has put continued pressure on major global bond markets, driving global bond yield indicators to record highs not seen since 2008.
6. Angola Plans to Increase Crude Oil Exports
An initial plan by the Angolan government indicates an increase in crude oil export volumes to 1.21 million barrels per day in October. This will bring Angola's daily crude trading volume in October to its highest level since June 2021.
