Market Review
Key Highlights
China Market
1. Implementing differentiated housing credit policies according to the city to guide city governments in precise execution
The Party Committee of the People's Bank of China and the Party Group of the State Administration of Foreign Exchange held an expanded meeting. The meeting emphasized the importance of deepening financial reforms, accelerating the establishment of a modern central banking system, improving the "dual pillar" regulatory framework of monetary and macro-prudential policies; promoting financial stability legislation, speeding up the construction of a financial stability fund, and firmly safeguarding the bottom line of not having systemic risks; implementing differentiated housing credit policies according to the city to guide city governments in precise execution, better supporting the demand for both rigid and improved housing.
2. The price of second-hand houses has been declining for 18 consecutive months
This past October, the housing prices in the hundred cities nationwide showed a divergent trend. The China Real Estate Index System's price index for hundred cities reveals that the prices of newly built houses in first- and second-tier cities have increased year-over-year, while those in third- and fourth-tier representative cities have declined, with nearly 80% of the cities in the tier experiencing a year-over-year price drop. The downward trend in the price of second-hand housing is particularly notable. Among them, the prices of second-hand residential properties in first-tier cities have decreased month-over-month, as have those in second-tier and third- and fourth-tier representative cities (see figure below).
3. The Foreign Ministry says it is coordinating to help Chinese citizens leave Gaza as soon as possible
At the regular press conference held by the Ministry of Foreign Affairs today, spokesperson Wang Wenbin said regarding the safety of Chinese citizens in Gaza, "We highly prioritize the safety of Chinese citizens in Gaza, have been keeping close contact with them, and have been providing all possible assistance. Currently, the Ministry of Foreign Affairs is coordinating efforts to help Chinese citizens leave Gaza as soon as possible."
4. Ministry of Industry and Information Technology issues “Guidelines for the Innovative Development of Humanoid Robots”
The Ministry of Industry and Information Technology recently issued the “Guidelines for the Innovative Development of Humanoid Robots” (hereinafter referred to as the "Guidelines"), planning by 2025 to initially establish an innovative system for humanoid robots; by 2027, to reach the advanced levels of the world, becoming an important new engine for economic growth. The "Guidelines" also set up three special columns for key technology breakthroughs, key products and components breakthroughs, and scenario application expansion, ensuring that tasks are implemented effectively.
Overseas Market
1. US productivity sees its largest increase since 2020
Data released by the US Bureau of Labor Statistics shows that US labor costs unexpectedly fell in the third quarter as labor productivity saw its highest increase since 2020, offsetting the impact of hourly earnings rising, which might indicate a possible easing of inflation pressures. Specifically, it decreased by a seasonally adjusted annual rate of 0.8% in the third quarter, marking the first decrease since the end of 2022. This is compared to analysts' expectations of a 0.7% increase.
2. Bank of England hits the pause button on rate hikes again
Following the Federal Reserve and the European Central Bank, the Bank of England has paused rate hikes, maintaining the interest rate unchanged. The Bank of England decided to keep the interest rate at 5.25%, the highest in 15 years, by a vote of 6 to 3. From December 2021 to August this year, the Bank of England has consistently raised borrowing costs fourteen times and paused the rate hikes in September, marking the second consecutive pause.
3. Reports say the Bank of Japan to exit loose monetary policy next year
According to reports, Bank of Japan Governor Kazuo Ueda will gradually eliminate the ultra-loose monetary policy and seeks to exit the decade-long loose policy at some point next year. The news comes from six sources familiar with the Bank of Japan's thoughts, including government officials in direct contact with the bank. The Bank of Japan's move to exit ultra-loose monetary policy is inherently risky and requires skillful execution, possibly also a bit of luck, especially considering global uncertainties, including the conflict in the Middle East, and concerns about whether the US economy can achieve a soft landing.
4. The UAE may commit to investing 50 billion dollars in India
According to sources cited by the media, the UAE is considering investing up to 50 billion dollars in India as part of its bet on its second-largest trading partner, India. The deal under discussion includes investment in key Indian infrastructure projects and state-owned assets, with potential participation from sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) and ADQ.
Today's Focus
Today, investors need to pay attention to economic data such as the Services PMI in China, the UK, and the US, Germany's trade balance, and employment reports from the US, the Eurozone, and Canada. In addition, investors should also closely monitor risk events such as the situation in Gaza and speeches by Federal Reserve Governor Lael Brainard.
