Market Review
Key News
China Market
1. Several quantitative firms indicate limited availability of securities for borrowing
Recently, the controversy over the institutional arbitrage loophole in the T+0 short selling strategy has continued to ferment in the market. Many investors believe that there are problems with fairness and system consistency in the short selling business, directly targeting the quantitative funds that employ the T+0 short selling strategy. Several quantitative institutions have stated that there should be no major issues with the system; the scale of securities available for quantitative use in the short selling market is extremely limited, having minimal impact on market trends.
2. Haidian District in Beijing cancels the guiding reference price for secondary housing transactions
There's news that the guiding reference prices for secondary housing transactions in 29 communities in Haidian District, Beijing, have been canceled. Beijing's school district housing market was hot from the fourth quarter of 2020 to the fourth quarter of 2021, with secondary housing prices in hot school districts in Haidian and Xicheng districts seeing significant increases, driving up the overall secondary housing prices in Beijing at that time. The introduction of the guiding reference price for secondary housing transactions in Haidian District was intended to curb the heat in the school district housing market.
3. The issuance of the new Inclusive Financial Development Special Fund Management Measures
The Ministry of Finance has announced the new Inclusive Financial Development Special Fund Management Measures, which aim to further facilitate employment and entrepreneurship, improve policy precision, and enhance fiscal support for inclusive finance policies. The new measures increase the maximum loan amount for individual entrepreneurship guarantee loans from 200,000 yuan to 300,000 yuan, and the maximum loan amount for small and micro enterprise loans from 3 million yuan to 4 million yuan. It is estimated that this will add 116.1 billion yuan in entrepreneurship guarantee loans annually, stimulating about 1 million people to start businesses and find employment.
Overseas Market
1. Real income of American households declines for the third consecutive year
According to the annual report by the U.S. Census Bureau on income, poverty, and health insurance, the median household income in the United States in 2022, adjusted for inflation, was $74,580, down from $76,330 in 2021. This means that the real income of American families decreased by 2.3% compared to last year, marking the largest decrease since 2010 and the third consecutive year of decline.
2. The biggest drop in the price of online goods in the US in 40 months
An online goods inflation index compiled by Adobe Software shows that the price of online goods in the US in August fell by 3.2% year over year. Not only is this the 12th consecutive month of decline, but it is also the biggest drop since April 2020. Since 2010, the share of online consumption in the total consumption of the United States has gradually increased. In the second quarter of this year, the share of online consumption reached 15.4% of the total U.S. consumption, close to the all-time high.
3. Ten-year U.S. Treasury yield reaches new high since 2007
Compared to the modest performance of the three-year U.S. Treasury auction earlier this week, the ten-year Treasury auction was robust. However, the record-high yield indicates that the rising interest rate trend is unstoppable. The U.S. Department of Treasury announced the completion of a $35 billion auction of ten-year U.S. Treasury notes, with a winning yield of 4.289%, the highest since November 2007, 29 basis points higher than the previous auction's yield of just below 4.00% in August.
Focus Today
Today, investors should pay attention to the UK's GDP for July, industrial production and goods trade balance, the U.S. CPI, and EIA crude oil stockpiles, among other economic data. Additionally, investors should also keep an eye on the annual State of the Union address by the President of the European Commission, Ursula von der Leyen, and the IEA monthly crude oil market report, among other risk events.
