Hot spotlight
01
U.S. core PCE in May hit a new low since March 2021
According to data released by the U.S. Department of Commerce, the U.S. personal consumption expenditures (PCE) price index grew at a month-on-month rate of 0.1% in May from 0.3% in April, the lowest level since November 2023. The core PCE price index, the Fed's most important measure of core inflation, slipped to 2.6% year-on-year in May, the lowest since March 2021, after rising 2.7% in April.
Tsinghua Financial Review observes
This data will be a major milestone on the road to the Fed's fight against inflation. Following the release of the data, traders increased their bets on a rate cut by the Federal Reserve. The CME Fed Watch tool shows that the probability of a 25 basis point rate cut by the Fed in September 2024 rises to 61%. If this trend in US inflation persists over the next two months, the Fed may be confident that it will start cutting interest rates in September. (Observer/Wang Mao)
grave
meeting
01
The State Council has introduced a number of policies and measures to guide long-term capital for venture capital
On June 26, the Information Office of the State Council held a regular briefing on the policies of the State Council to introduce the relevant situation of the "Several Policies and Measures to Promote the High-quality Development of Venture Capital". The "Policies and Measures" put forward several policy measures around the whole chain and life cycle of venture capital "fundraising, investment, management and withdrawal". On the fund-raising side, we will guide long-term funds such as insurance funds to invest in venture capital to solve the problems of "lack of long-term money" and "no rice in the pot" in the industry. On the investment side, many venture capital institutions have reported that "it is difficult to invest even if there is money". On the management side, it is proposed to continue to strengthen the management of venture capital funds funded by the government and state-owned enterprises. On the exit side, the focus is on broadening exit channels and optimizing the exit policy of venture capital funds.
Tsinghua Financial Review observes
In the next step, the National Development and Reform Commission will, in accordance with the requirements of the executive meeting of the State Council, take the introduction of the "Policies and Measures" as an opportunity to work with relevant departments and local governments to implement the "Policies and Measures" to the letter, and promote the high-quality development of venture capital. Guide central enterprises to make full use of the current relevant policies, focus on the main responsibilities and main businesses, combine their own advantages and conditions, use venture capital funds to increase investment in industry science and technology leaders, transformation of scientific and technological achievements and small and medium-sized enterprises in the upstream and downstream of the industrial chain, encourage early, small, long-term, and hard science and technology, give full play to the role of long-term patient capital, support strategic emerging industries and future industries, help cultivate and develop new quality productivity, and further promote the high-quality development of the real economy. (Observer/Zhou Mingyi)
grave
policy
01
The three departments have clarified work arrangements related to the protection of the rights and interests of financial consumers
The State Administration of Financial Supervision and Administration, the People's Bank of China and the China Securities Regulatory Commission issued an announcement on June 28 on work arrangements related to the protection of financial consumer rights and interests. According to the announcement, the State Administration of Financial Supervision is responsible for the overall protection of the rights and interests of financial consumers, formulates relevant development plans and policies and systems, improves the system and mechanism for the protection of the rights and interests of financial consumers, and carries out financial consumer education. The State Administration of Financial Regulation, the People's Bank of China and the China Securities Regulatory Commission have established a coordination mechanism for the protection of the rights and interests of financial consumers to strengthen information sharing and business collaboration.
Tsinghua Financial Review observes
The State Administration of Financial Supervision uniformly accepts complaints from transferred financial consumers against banking financial institutions (including trust companies, consumer finance companies and other non-bank financial institutions) and insurance institutions, the People's Bank of China receives complaints from transferred financial consumers against non-bank payment institutions and credit reporting agencies, and the CSRC accepts complaints from transferred financial consumers against non-bank payment institutions and credit reporting agencies, and the China Securities Regulatory Commission accepts complaints from transferred securities and futures fund industries. Financial institutions should conscientiously implement the main responsibility for the protection of the rights and interests of financial consumers, fully respect and conscientiously protect the legitimate rights and interests of financial consumers, carry out business activities in accordance with laws and regulations, promptly and properly handle disputes with financial consumers, strengthen governance at the source and traceability rectification, and continuously improve the quality and efficiency of the protection of the rights and interests of financial consumers. (Observer/Zhou Mingyi)
grave
affair
01
Large U.S. banks complete Fed stress tests and announce higher dividend payouts
In late June 2024, after passing the Fed's annual stress test, several large U.S. banks such as JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, and Citigroup announced an increase in dividend payouts on June 28 local time. Previous regulator assessments showed that all 31 banks tested were able to maintain sufficient capital. In addition, JPMorgan Chase & Co. and Morgan Stanley approved share buybacks of up to $30 billion and $20 billion, respectively.
Tsinghua Financial Review observes
Large U.S. banks have completed the Federal Reserve's annual stress test, many have raised their dividend payouts, and some banks have driven share buyback programs, indicating that large U.S. banks are well-capitalized, operating well, and making considerable profit growth. This shows that the U.S. banking industry has the ability to support the continued development of the U.S. economy. (Observer/Wang Mao)
important
numeral
01
China's manufacturing PMI was 49.5% in June, unchanged from the previous month
According to data released by the China Federation of Logistics and Purchasing on the 30th, in June, China's manufacturing purchasing managers' index (PMI) was 49.5%, the same as the previous month, and the prosperity of the manufacturing industry was basically stable. In terms of enterprise scale, the PMI of large enterprises was 50.1 percent, down 0.6 percentage points from the previous month, and the PMI of small and medium-sized enterprises was 49.8 percent and 47.4 percent respectively, up 0.4 and 0.7 percentage points from the previous month. From the perspective of sub-indexes, among the five sub-indices that constitute the manufacturing PMI, the production index and the supplier delivery time index are higher than the critical point, and the new orders index, raw material inventory index and employment index are lower than the critical point.
Tsinghua Financial Review observes
In June, the company's production continued to expand. The production index was 50.6 percent, down 0.2 percentage points from the previous month, higher than the critical point, and the production of manufacturing enterprises continued to expand. New drivers continue to grow. From the perspective of key industries, the PMI of high-tech manufacturing industry was 52.3 percent, up 1.6 percentage points from the previous month, and remained in the expansion range for eight consecutive months; the PMI of equipment manufacturing industry was 51.0 percent, up 0.3 percentage points from the previous month, and maintained expansion for four consecutive months. (Observer/Zhou Mingyi)
This article is edited by Wang Mao
Editor-in-charge丨Ding Kaiyan, Lan Yinfan
Preliminary trial丨Xu Lanying
Final Review丨Zhang Wei