Market Review
Key News
Chinese Market
1. The State Council demands that affordable housing must not be traded on the market
The State Council stated that planning and constructing affordable housing is a work deployment for achieving common prosperity and Chinese-style modernization strategies. It emphasized establishing a fair and just distribution mechanism, strengthening supervision and auditing, and focusing on providing for low-income salaried groups and government-introduced talents based on cost and marginal profit principles. Affordable housing is to be strictly managed and must not be put on the market for trading.
2. Shenyang's real estate new policy adjustments include the removal of purchase restrictions, sale restrictions, and recognition of housing instead of loans
The Shenyang Municipal Bureau of Housing and Urban-Rural Development announced a notice on further supporting the demand for rigid and improved housing, proposing the removal of purchase restrictions within the second ring road, cancelling the restrictions on the years of housing sales, implementing a policy of recognizing housing instead of loans, providing public fund support policies, implementing differentiated tax policies, and subsidies for talents staying in Shenyang, amongst other supports for the real estate market.
3. Nanjing plans to relax its household registration policy
A responsible officer from the Nanjing Public Security Bureau stated that Nanjing plans to adjust and revise its household registration policy, adding content for "graduates under 35 years old (inclusive) with a college degree, who are paying social security in our city, can register for residency". At the same time, it plans to expand the cumulative recognition range of social security, incorporating the social security payment period in the Yangtze River Delta region into Nanjing's payment period calculation.
4. Shanghai Stock Exchange and Saudi Exchange Group sign a Memorandum of Understanding
The Shanghai Stock Exchange and the Saudi Exchange Group signed a Memorandum of Understanding. According to the memorandum, both exchanges will explore opportunities for collaboration in cross-listing, financial technology, ESG, data exchange, and research to promote corporate listings, ETF dual listings, and knowledge sharing in investor relations.
Overseas Markets
1. US federal deficit for fiscal year 2023 could "unexpectedly" double
The Washington Post reported that the federal fiscal deficit significantly decreased in fiscal year 2022, from nearly $3 trillion to about $1 trillion. However, the U.S. non-partisan Federal Budget Accountability Committee estimates that the federal fiscal deficit may double in the fiscal year ending this month compared to fiscal year 2022. A surging fiscal deficit could push interest rates higher, restrain investment, raise loan costs, and gradually lead to interest payments becoming the federal government's largest expenditure item, thereby increasing the risk of a debt crisis.
2. Australian liquefied natural gas union threatens to strike all day starting next week
Representatives of the Australian Union Offshore Alliance announced that workers at Wheatstone and Gorgon have notified Chevron of plans to partially strike from September 7 and to completely stop work from September 14. Wheatstone and Gorgon, Chevron-operated natural gas plants in Australia, account for about 5% of global supply. Recent strike risks in Australia's natural gas industry have had a significant impact on the energy market, causing investors' concerns about energy supply to significantly rise.
3. Putin says a solution to the grain deal will be agreed upon soon
Russian President Putin expressed an open attitude towards negotiations on the Black Sea grain deal and stated that a solution to the grain agreement will be reached soon. In July, due to factors like the Russo-Ukrainian conflict and sanctions from Europe and the US, Russia unilaterally withdrew from the Black Sea grain agreement, exacerbating global concerns over grain supply and driving up global grain prices.
Focus Today
Today, investors need to pay attention to Australia’s second quarter current account, China and the UK’s service sector PMI, US durable goods orders and factory orders, among other data. Additionally, events such as the Australian central bank’s interest rate meeting and the G20 deputy finance ministers and deputy central bank governors meeting should also be closely monitored by investors.
