The People's Bank of China: We will continue to implement a moderately loose monetary policy and increase counter-cyclical and cross-cyclical adjustments.
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The People's Bank of China and Hong Kong regulators support the joint establishment of a fixed-income and currency electronic trading platform in Hong Kong.
PANews reported on July 7 that the People's Bank of China, the Hong Kong Monetary Authority, and the Hong Kong Securities and Futures Commission jointly announced their welcome to the China Foreign Exchange Trading Center and the Hong Kong Stock Exchange for jointly establishing a Hong Kong electronic fixed income and currency trading platform. This initiative aims to deepen cooperation between the mainland and Hong Kong financial markets and consolidate Hong Kong's position as an international financial center and offshore RMB business hub. The announcement stated that the platform will be based in Hong Kong, oriented towards the international market, and will adhere to international market standards and Hong Kong regulatory requirements. It will strive to create an open, fair, efficient, and stable fixed income and currency trading infrastructure, and will enhance trading efficiency and transparency, promote price discovery, reduce transaction costs, and explore technological innovation to empower financial services. The specific launch date of the platform will be announced in due course.
Japan's Chief Cabinet Secretary stated that Japan will not implement fiscal policies that could damage market confidence and will continue to work closely with the Bank of Japan.
According to Mars Finance, on July 3, Japanese Chief Cabinet Secretary Minoru Kihara stated that the Japanese government will not implement fiscal policies that would damage market confidence and will continue to cooperate closely with the Bank of Japan. He also emphasized that monetary policy falls under the Bank of Japan's authority, and interest rate trends should be determined by the market. (Jinshi)
The China Securities Regulatory Commission (CSRC) and the Monetary Authority of Singapore (MAS) held the 10th China-Singapore Securities and Futures Regulatory Roundtable.
Odaily Odaily reports that the China Securities Regulatory Commission (CSRC) and the Monetary Authority of Singapore (MAS) successfully held the 10th China-Singapore Securities and Futures Regulatory Roundtable in Singapore. CSRC Vice Chairman Liu Haoling and MAS Deputy Governor Ho Heng Sin attended the meeting and delivered speeches. Both sides reviewed the practical achievements in capital market cooperation between the two countries in recent years, including strengthening China-Singapore index cooperation, deepening China-Singapore ETF connectivity, and enhancing securities regulatory cooperation. Both sides engaged in extensive and in-depth exchanges on the latest developments in their respective market reforms and development, capital market operations and regulatory enforcement in the context of cutting-edge technologies, and cross-border business development and regulation in the securities and futures industry. More than 40 people, including Lim Duanli, Assistant Governor of the Monetary Authority of Singapore (MAS), officials from the China Securities Regulatory Commission (CSRC) and the MAS, and representatives from both stock exchanges, participated in the meeting both in person and online. (Jinshi)
Digital China: Wins bid for a Huawei intelligent computing server procurement project from a major state-owned bank, with an estimated value of 371 million yuan.
Mars Finance reported on July 3 that Digital China (000034.SZ) announced that its subsidiary, Beijing Shenzhou Kuntai Information Technology Co., Ltd., won a Huawei intelligent computing server procurement project for a large state-owned commercial bank. The estimated procurement amount is 371 million yuan (subject to actual settlement). The project will supply Shenzhou Kuntai supernode servers. If successfully implemented, it will have a positive impact on the company's information technology application innovation business and overall operating performance. Currently, a formal contract has not yet been signed, and there is some uncertainty. (Company Announcement)
World Bank: China's economic growth remains resilient
According to Mars Finance, the World Bank released its latest China Economic Brief in Beijing on July 7. The report states that despite facing strong supply and weak demand, as well as global energy supply shocks, China's economic growth has remained generally resilient. The report shows that in the first five months of this year, driven by strong domestic and international demand related to artificial intelligence, investment in China's high-tech industries increased by 4.5% year-on-year. From the export side, strong external demand for China's technology-intensive products supported robust export performance. At the same time, China's technology-related imports expanded significantly, reflecting accelerated capital expenditure related to artificial intelligence and increased demand for components needed for technology-intensive export production. The report believes that despite facing global energy supply shocks, China has effectively mitigated the impact on the economy by relying on diversified energy import sources, a high proportion of renewable energy, and temporary retail controls on refined oil products. The report states that in the medium term, coordinated structural reforms, such as local government debt reduction and the removal of hidden barriers to the private sector, will help address insufficient domestic demand and accelerate the economic rebalancing process. Reducing employment and skills mismatches will help workers better access job opportunities and further support China's economic transformation. (Cailian Press)
Federal Reserve Bank of Walter offered two key considerations for monetary policy: initial conditions and forward guidance determine the transmission effect.
According to Odaily Odaily, Federal Reserve Bank of Walter Waller offered two points of consideration regarding the monetary policy transmission mechanism, emphasizing that policy effectiveness depends on initial conditions and the way forward guidance is used: First, "initial conditions are crucial," meaning monetary policy assessments should be based on current economic conditions, not historical averages. Second, regarding the role of forward guidance, he believes that while forward guidance can accelerate policy transmission in certain situations by influencing market expectations and changing financial conditions in advance, if it is too rigid or lacks flexibility, it may weaken policy effectiveness or even delay necessary policy adjustments. Waller emphasized that when multiple economic scenarios exist, the “average path” cannot be simply used as a basis for policy guidance, and policymaking needs to maintain adaptability and flexibility to different scenarios.