Market Review
Key Highlights
China Market
1. Central Bank Governor Pan Gongsheng Calls for Guiding Stable Financial Market Behavior and Expectations
Pan Gongsheng, the governor of the People's Bank of China, delivered a "Report on Financial Work" at the 6th meeting of the Standing Committee of the 14th National People's Congress. The report emphasized that prudent monetary policy is more targeted and potent, further lowering the real loan interest rates for financial institutions, reducing the comprehensive financing costs for enterprises and personal consumption credit costs, accelerating the legislative work on financial stability laws, enhancing financial support for housing projects, and implementing policies to invigorate the capital market and boost investor confidence.
2. GDP Data for the First Three Quarters Released in Twelve Provinces and Municipalities
According to data released by the National Bureau of Statistics, the preliminary calculation shows that the GDP for the first three quarters amounted to 913027 billion yuan, an increase of 5.2% year-on-year. This growth rate has slightly decreased compared to the GDP growth rate in the first half of the year (5.5%). Among the 12 provinces and municipalities that have announced their economic data for the first three quarters, 9 exceeded the national growth rate. They are Hainan (9.5%), Inner Mongolia (7.2%), Sichuan (6.5%), Zhejiang (6.3%), Hubei (6.0%), Shanghai (6.0%), Chongqing (5.6%), Qinghai (5.6%), and Liaoning (5.3%), with Hainan having the highest growth rate.
3. Ministry of Industry and Information Technology Says China Has Built the World's Largest 5G Network
In recent years, the latest generation of information technology, led by 5G, has been accelerating integration into all sectors of the economy and society, becoming a key support for the free flow and circulation of data resources and an important engine leading the transformation and upgrading of industries towards intelligent, green, and integrated development. According to the Ministry of Industry and Information Technology, China has built the world's largest and technologically advanced 5G network. By the end of September, China has cumulatively built and opened 3.189 million 5G base stations, with 737 million 5G mobile telephone users, over 20,000 5G industry virtual private networks, and the number of 5G standard essential patents declared accounts for 42% of the global total.
4. Ningbo, Zhejiang Launches "New-for-Old" Housing Exchange
Recently, a number of regions have introduced favorable policies for the real estate market in succession, featuring various "market stabilization" strategies. The Housing and Urban-Rural Development Bureau of Ningbo recently announced the launch of a "new-for-old" housing exchange program, with the first batch of 34 real estate projects participating in "buy new sell old." According to a representative of Ningbo Real Estate Industry Association, the introduction of the "new-for-old" service model, supporting "upgrading to a larger home" and "buy new sell old," aims to better utilize the gradient consumption and linkage effect of the first and second-hand housing markets, accelerate the efficiency of property exchange, and better meet the needs of citizens for improved housing.
Overseas Markets
1. Israel Announces a Three-Step Plan for Military Operations in Gaza
Israel's Defense Minister Gallant said that Israel's actions will be divided into three main phases: the first phase involves launching military operations through airstrikes, followed by ground operations, with the goal of "eliminating armed forces, thereby defeating and destroying Hamas"; the second phase will involve lower intensity combat to "eliminate remaining resistance forces”; the third phase aims to "establish a new security environment in the Gaza Strip."
2. Biden Seeks to Increase $105 Billion Military Aid Proposal
The Biden administration has requested Congress to pass a special budget bill to increase the budget by $105 billion for comprehensive support programs in areas including Ukraine, Israel, and enhancing the security of the United States itself. General Mohammad Bagheri, the chief of staff of Iran's armed forces, warned that the extensive US support for Israel, including the delivery of weapons and ammunition to the Israeli government, would be seen as the US government's "participation in criminal activities," further complicating the situation in Gaza.
3. Media Reports Bank of Japan Considering Adjustment of Yield Curve Control Policy
Media reports suggest that Bank of Japan officials are considering whether to discuss adjustments to the Yield Curve Control (YCC) policy at the policy meeting on October 31. In July, the Bank of Japan made minor adjustments to the YCC policy at its monetary policy meeting, maintaining the target yield range for 10-year Japanese government bonds at ±0.5%, but with altered wording, stating that the upper and lower limits are only for reference and will be controlled more flexibly.
4. EU Considers Extending Natural Gas Price Cap
Media reports indicate that the European Union is considering extending the emergency natural gas price cap introduced in February, due to concerns that conflicts in the Middle East and damage to the Baltic gas pipelines may drive up gas prices again this winter. Senior EU diplomats and officials say that despite falling energy prices and EU gas storage levels being at a record high, gas supply this winter could still be affected by the Palestine-Israel conflict and potential sabotage of gas infrastructure.
Focus This Week
This week, investors should pay attention to manufacturing PMI in Europe and the US, Australian CPI, German retail sales and job market reports, US Q3 GDP, core PCE price index, initial jobless claims, and the University of Michigan consumer sentiment index, among other economic data. Additionally, investors should continue to closely monitor the situation between Palestine and Israel, as well as interest rate meetings and central bank governor press conferences from the Bank of Canada and the European Central Bank.
