Market Review
Headline News
Chinese Market
1. The A-share market welcomes four major positive developments
The China Securities Regulatory Commission and other departments have issued four policies to bolster investor confidence. First, from August 28, 2023, the stock transaction stamp duty will be reduced by half, marking the first cut in the stamp duty in fifteen years. Second, to regulate the reduction of shares, companies experiencing breakage, breaking net situations, or those that have not distributed cash dividends in the last three years, or whose total cash dividends are less than 30% of the average net profit of the last three years, controlling shareholders, and actual controllers are prohibited from reducing their company shares through the secondary market. Third, the pace of IPOs will be temporarily tightened to promote a dynamic balance between investment and financing ends. Fourth, the minimum margin ratio for investors’ financed securities purchases will be lowered from 100% to 80%.
2. Chief Executive John Lee says he will study how to increase stock market liquidity
Hong Kong SAR Chief Executive John Lee has stated that a group will be established by the Financial Secretary to study how to increase stock market liquidity. In terms of capital flows, despite continued signs of foreign capital withdrawal, funds from the mainland to the Hong Kong stock market have continuously flowed in over the past two months, with the net purchase amount exceeding 200 billion Hong Kong dollars within the year.
Overseas Market
1. U.S. oil drilling numbers fall to an 18-month low
Data from Baker Hughes oil services show that the number of active oil rigs in the US dropped to 512 in the past week, reaching a new low since February 4, 2022. However, U.S. oil production last week hit its highest level in more than three years, reaching 12.8 million barrels per day.
2. Myanmar plans to implement a 45-day rice export restriction
An official from the Myanmar Rice Industry Association stated that to control the domestic rise in food prices, Myanmar will temporarily restrict rice exports for about 45 days starting from the end of this month. Rice is a major staple food for about half of the world's population. According to data from the United States Department of Agriculture, Myanmar is the world's fifth-largest rice exporter, selling more than 2 million tons of rice abroad annually.
3. India imposes a 20% export duty on parboiled rice
A document released by the Indian government shows that it has imposed a 20% export duty on parboiled rice (also known as semi-cooked rice), effective immediately. India is the world's largest rice exporter, accounting for 40% of global trade. Due to India's consecutive export bans, the global market supply of rice will decrease by 20%, or about 9.1 million tons. A report released by the United Nations Food and Agriculture Organization (FAO) at the beginning of the month stated that the global rice price index in July rose by 19.7% year-on-year, reaching its highest level since September 2011.
4. U.S. marine expert claims Japanese data is opaque and incomplete
Ken Buesseler, a marine radiochemist at the Woods Hole Oceanographic Institution, stated that unlike normally operating nuclear power plants, the water Japan is discharging has direct contact with melted core materials and is highly radioactive. The data provided by Japan lacks transparency and comprehensiveness, making it impossible to substantiate their claims of the safety of nuclear-contaminated water discharge into the sea.
