Market Review
Focus News
Chinese Market
1. Beijing Releases Draft Regulations on Foreign Investment for Public Consultation
The Beijing Municipal Bureau of Commerce has drafted the "Beijing Municipal Regulations on Foreign Investment" (Draft for Public Consultation). The draft points out specific areas and types of enterprises where foreign investments are encouraged and guided; it emphasizes the establishment of a diversified foreign investment promotion system, strengthening the overall coordination of investment attraction efforts in the city and district linkage, and expanding overseas investment channels.
2. The Ministry of Commerce is Organizing Activities to Promote Consumption in "Golden September and Silver October"
A spokesperson for the Ministry of Commerce stated that with the Mid-Autumn Festival and National Day holidays approaching, the Ministry is building on the foundation of previously launched consumption promotion policies. It plans to introduce a series of supportive measures around key areas, such as after-market car services, and is organizing a series of consumption promotion activities during the "Golden September and Silver October" period to better meet people's consumption needs during the holidays, promoting a continued recovery and expansion of consumption.
3. Surge in Second-Hand Housing Listings After the Easing of Purchase Restrictions in Guangzhou
Less than half an hour after the release of new housing policies in Guangzhou, Yunhu Huacheng in Baiyun District launched a “non-closing tonight” campaign, and Qifu Group immediately offered discounts starting from 17% off across projects in Panyu and Huadu districts. According to internal data from Beike, from 18:30 on September 20 to 09:00 on September 21, over 700 new second-hand housing listings were added across Guangzhou.
Overseas Market
1. U.S. Two-Year Treasury Yield Hits New High Since 2006
At its September meeting, the Federal Reserve, as expected, skipped a rate hike, but the dot plot and Chair Powell's hawkish tone hinted at strong signals. Following the meeting, bond markets saw a sharp decline, with the yield on the rate-sensitive U.S. two-year Treasury note rising to nearly 5.18%, the highest level since July 2006. Moreover, a post-Fed meeting survey showed bond market investors are pessimistic about future expectations. Among 172 respondents, 58% indicated the yield on two-year U.S. Treasury bonds had not peaked yet, with the majority expecting the yield on ten-year Treasury bonds to climb above 4.5%.
2. U.S. Existing Home Sales Unexpectedly Hit a Seven-Month Low
Data from the National Association of Realtors (NAR) shows that U.S. existing home sales in August fell short of expectations, marking a seven-month low. By the end of August, there were 1.1 million homes on the market, the lowest August inventory level since 1999, roughly half of the pre-pandemic supply. The shortage continues to fuel competitive bidding and price increases. The median sale price of homes sold in August was $407,100, up 3.9% from August last year, among the highest readings on record.
3. Bank of England Pauses Rate Hikes for the First Time in Nearly Two Years
After 14 consecutive aggressive rate hikes, influenced by an unexpected slowdown in August's inflation data, the Bank of England announced a pause in rate hikes. As the major economy with the most severe inflation, the UK's unexpected cooling in August CPI opened the door for the Bank of England to pause rate hikes. However, the Bank has left room for future hikes, reiterating its previous guidance to "maintain sufficient restriction for a considerable time" to bring inflation to target. Further monetary policy tightening will be needed if inflation persists.
4. Russia Temporarily Bans Exports of Diesel and Gasoline
The Russian government's press office announced on its website that Russia would impose a temporary ban on gasoline and diesel exports to stabilize its domestic market. According to a government decree signed by Prime Minister Mikhail Mishustin, the ban, which also applies to gasoline, came into effect on September 21, with no specified end date. Additionally, recent data indicate that hedge funds have been pouring into the oil market, betting that oil prices will soon break through $100 per barrel. In the two weeks up to September 12, net long positions in Brent and WTI crude oil funds combined increased by 35% to 527,000, reaching an 18-month high.
Today's Focus
Today, investors should pay attention to important economic data such as New Zealand's trade balance, Japan's CPI, the UK's GfK consumer confidence index, retail sales, CBI industrial order difference, Canada's retail sales, and the Eurozone and U.S. Markit manufacturing PMI. Additionally, they should be aware of risk events like the Bank of Japan's interest rate meeting and Federal Reserve Governor Lisa Cook's speech.
