Market Review
Key News
China Market
1. Beijing Proposes New Regulations for Transparent Pricing of Commercial Housing Sales
The Beijing Municipal Market Supervision Administration has announced that it is soliciting opinions on the "Detailed Rules for the Implementation of Regulations on Transparent Pricing of Commercial Housing Sales in Beijing" (Draft for Comments). The Detailed Rules consist of twenty-one articles, mainly setting forth the purpose and basis of the formulation, application scope, concept of transparent pricing, basic principles and requirements of transparent pricing, special obligations of online trading platform providers and other trading venues, responsibilities of market supervision departments, and encouraging industry associations to undertake responsibilities.
2. Shanghai and Shenzhen Stock Exchanges Debunk Rumors of Extended Trading Hours
Recently, self-media claimed that the A-share market will extend trading hours after the holiday and pilot T+0 trading on some stocks. Officials from the Shanghai and Shenzhen stock exchanges have debunked these rumors as untrue. Further elaboration by the officials referenced an August 18 statement from the CSRC, indicating an ongoing comprehensive study to possibly extend A-share market trading hours, which involves a wide range and significant impact.
3. Ministry of Industry and Information Technology Plans to Coordinate Opening of Telecommunications Services to Private Capital
In order to further advance the innovative management of the information and communication industry, optimize the business environment, promote high-quality development of the information and communication industry, and continuously play its strategic, foundational, and leading role in supporting economic and social development. The Ministry of Industry and Information Technology is publicly soliciting opinions on the "Opinions on Innovating the Management of the Information and Communication Industry to Optimize the Business Environment (Draft for Comment)". The draft points out the need to continuously optimize an efficient, open, and unified access environment to stimulate industry development vitality.
4. National Energy Administration Cracks Down on Chaotic Practices in New Energy Development
The Comprehensive Department of the National Energy Administration recently issued the "Special Rectification Work Plan for Inappropriate Market Intervention Behaviors in the Development Field of New Energy and Pumped Storage" (hereinafter referred to as the "Work Plan"), targeting mandatory industrial support and investment landing requirements in the development of wind power, photovoltaic, and pumped storage projects, thus cracking down on the unspoken rules and chaotic practices in the new energy industry. Following the issuance of the notice, several regions including Fujian, Guizhou, and Shanxi have issued special rectification plans.
Overseas Market
1. The Most Severe Conflict between Israel and Palestine in Half a Century Erupts
Hamas launches thousands of rockets, putting Israel in a state of war. The Israeli military conducts Operation Iron Sword against Palestinian militants in Gaza. The conflict has resulted in 1,100 deaths. US Secretary of State Antony Blinken stated that there's no direct evidence suggesting Iran had instigated Hamas’ attacks on Israel. Israeli media speculate that the government might launch "significant military operations", multiple global airlines have cancelled flights to Israel, the Israeli Prime Minister's visit to China may be affected by the conflict, and the Security Council is to hold internal consultations.
2. Federal Reserve Governor Bowman Supports Further Rate Hikes
Federal Reserve Governor Bowman says that inflation remains too high, and high energy prices may reverse the recent progress in reducing inflation. The current level of monetary policy restraint is expected to gradually lower inflation. If data show that progress on inflation stalls or the return to a 2% pace is too slow, further raising rates and maintaining them at a restrictive level for a time may be appropriate, and she is willing to support rate hikes at future meetings.
3. Media Reports that Biden Plans to Request $100 Billion in Aid for Ukraine
According to The Daily Telegraph, US President Joe Biden plans to request from Congress the largest amount of aid for Ukraine to date—$100 billion. This "once-and-for-all" funding plan, if passed, would allow Biden to circumvent the deadlock with Republican members of Congress and provide sufficient aid to Ukraine until the 2024 presidential elections. However, the White House is concerned that concerns raised over military aid to Ukraine could harm Biden's prospects in next year's elections.
4. Finland's Undersea Gas Pipeline Closed Due to Suspected Leak
Gasgrid, the Finnish gas system operator, reports that a gas pipeline connecting Finland and Estonia has been shut down recently due to a suspected leak. According to Gasgrid, the offshore pipeline, suspected of leaking, has not affected Finland, with Finnish gas supplies temporarily secured through the Inkoo port's floating liquid natural gas terminal. To reduce dependence on Russian gas, Finland and Estonia initiated the "Baltic Connector" gas pipeline project in early 2020, connecting the ports of Inkoo in Finland and Paldiski in Estonia, with a sea part 77 kilometers long.
Today's Focus
Today, investors need to pay attention to Germany's industrial output, the Eurozone Sentix Investor Confidence Index, China's social financing and M2 money supply economic data. Besides, investors should also keep an eye on the Israel-Palestine situation, OPEC's "2023 World Oil Outlook", ECB vice-president de Guindos, Dallas Fed President Logan, and Federal Reserve governor Barr's speeches among other risk events.
