【Key Focus】
• Ministry of Finance: A package of fiscal incremental policies will be introduced
• National Development and Reform Commission: Intensify the launch of a package of incremental policies
•The draft law on the promotion of private economy is open to the public for comments
•The futures market ushered in a blockbuster comprehensive document
• National Bureau of Statistics: CPI was flat month-on-month in September, and the month-on-month decline in PPI narrowed
• The scale of mainland foreign reserves rose month-on-month for three consecutive months Gold reserves remained unchanged for five consecutive months
United States September CPI was higher than market expectations
【Domestic News】
•Minister of Finance Lan Foan introduced at the press conference of the State Council Information Office on October 12 that a package of targeted incremental policy measures will be launched in the near future. The first is to strengthen support for local governments to resolve government debt risks, increase debt quotas on a larger scale, and support local governments to resolve hidden debts, so that local governments can free up more energy and financial space to promote development and protect people's livelihood; The second is to issue special treasury bonds to support large state-owned commercial banks to replenish core Tier 1 capital, enhance their ability to resist risks and provide credit, and better serve the development of the real economy; The third is to superimpose the use of local government special bonds, special funds, tax policies and other tools to support and promote the real estate market to stop falling and stabilize; Fourth, we will increase the support and guarantee for key groups, and a one-time living subsidy has been issued to the needy people before the National Day, and the next step will be to increase the number of students to help the poor and enhance the overall consumption capacity.
• The Information Office of the State Council held a press conference on the 8th, and Zheng Shajie, director of the National Development and Reform Commission, said that in response to the new situation and new problems in the current economic operation, the mainland has launched a package of incremental policies to promote the sustained economic recovery. In view of the downward pressure in economic operation, we should strengthen the counter-cyclical adjustment of macroeconomic policies, and we must continue to work harder and more vigorously in all aspects. In view of the lack of effective domestic demand and other problems, the policy of expanding domestic demand should focus more on benefiting people's livelihood and promoting consumption, and actively play the role of investment in stimulating economic growth. In view of the current production and operation difficulties of some enterprises, we will increase the efforts to help enterprises, effectively optimize the business environment, and help enterprises tide over difficulties. In view of the continued weakness of the property market, comprehensive policy measures were adopted to promote the real estate market to stop falling and stabilize. In response to the fluctuating and downward trend of the stock market in the early stage, a series of effective measures have been introduced to boost the capital market.
•On October 10, the Ministry of Justice and the National Development and Reform Commission (NDRC) published the Law on the Promotion of the People's Republic of China Private Economy (Draft for Solicitation of Comments) (hereinafter referred to as the Draft) on the portal website to solicit opinions from the public. The draft consists of 9 chapters and 77 articles, insisting on transforming the principles, policies, and effective practices in the development of the private economy of the Party Central Committee and the State Council into a legal system after the reform and opening up, especially since the 18th National Congress of the Communist Party of China, and putting down the requirements for equal treatment and protection of the private economy. The draft adheres to the problem-oriented approach and is based on the actual situation, which not only makes rigid provisions on the key systems and requirements involved in solving problems, but also leaves room for practical exploration.
•Recently, the General Office of the State Council forwarded the Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Futures Market issued by the China Securities Regulatory Commission and other departments. This comprehensive document specifically for the futures market systematically and comprehensively deploys policies and measures in eight aspects to promote the construction of a comprehensive and three-dimensional futures market development and regulatory layout. The "Opinions" proposes to strengthen the supervision of the whole process of high-frequency trading. Adhere to the principle of maintaining fair trading and stable operation of the market, and strengthen the supervision of high-frequency trading. Continue to optimize the reporting system for specific programmatic transactions. Improve the regulatory rules for high-frequency trading. According to the development and changes of the market, the implementation scope and charging standards of the declaration fee should be optimized in a timely manner. Regulate the reduction of fees by futures exchanges and futures companies, and cancel the reduction of fees for high-frequency trading. Strengthen the management of the connection between futures company seats and customer devices. Regulate futures companies' use of futures exchange host trading custody resources.
• The National Bureau of Statistics released the national CPI and PPI data for September 2024 on October 13. Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, said that in September, the consumer market was generally stable, prices were basically stable, and the national CPI was flat month-on-month, up 0.4% year-on-year; Affected by factors such as fluctuations in international commodity prices and insufficient effective demand in the domestic market, the month-on-month decline in PPI narrowed and the year-on-year decline expanded.
•The People's Bank of China and other four departments issued the "Opinions on Giving Play to the Role of Green Finance and Serving the Construction of a Beautiful China". The "Opinions" make it clear that focusing on the actual needs of the construction of a beautiful China, we will make overall plans for a number of landmark major engineering projects and increase docking financing support. In accordance with the requirements of coordinated promotion of carbon reduction, pollution reduction, green expansion, and growth, we will build a Beautiful China construction project library around key areas such as the construction of the Beautiful China Pilot Zone, the green and low-carbon development of key industries, the in-depth promotion of pollution prevention and control, and ecological protection and restoration, so as to effectively improve the accuracy of financial support.
•The State Administration of Financial Supervision and Administration issued the Administrative Measures for Syndicated Loan Business. In accordance with the principle of taking into account efficiency and risk diversification, the Measures adjust the lower limit of the loan share and distribution share when a single bank acts as the lead bank from 20% and 50% to 15% and 30% respectively. The requirements for the share of loans when setting up deputy lead banks and joint lead banks are added, stipulating that the share of loans undertaken by each lead bank shall not be less than 10% of the amount of syndicated financing in principle, and the share of loans undertaken by each bank shall not be higher than 70% in principle.
•The "Opinions on Accelerating the Development and Utilization of Public Data Resources" issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council was released on October 9, which is the first time that the central government has systematically deployed the development and utilization of public data resources. The opinions put forward that by 2025, the system and rules for the development and utilization of public data resources will be initially established, the scale and quality of resource supply will be significantly improved, data products and services will be continuously enriched, the development and utilization of public data resources in key industries and regions will achieve remarkable results, and a number of data element enterprises will be cultivated, and the role of public data resource elements will initially appear.
•On October 8, Secretary of Commerce Wang Wentao held a phone call with United States Secretary of Commerce Raimondo. Wang Wentao focused on expressing solemn concern about the US semiconductor policy on China and the restriction of China's connected cars. Wang Wentao stressed that it is particularly necessary to clarify the national security boundaries in the economic and trade fields, which is conducive to maintaining the security and stability of the global industrial and supply chains, and creating a good policy environment for industrial cooperation between the two countries. China urges the US side to pay attention to the specific concerns of Chinese companies, lift sanctions on Chinese companies as soon as possible, and improve the business environment for Chinese companies in the US.
•The National Development and Reform Commission and other departments issued the Guidelines for the Construction of the National Data Standards System. Among them, it is required that by the end of 2026, the national data standard system will be basically completed, and more than 30 basic general national standards in the data field will be formulated and revised around data circulation and utilization infrastructure, data management, data services, training data sets, public data authorization and operation, data rights confirmation, data resource pricing, and enterprise data paradigm transactions, etc., and a number of standard application demonstration cases will be formed, a standard verification and application service platform will be built, and a group of data management capability assessment, data evaluation, and data service capability assessment will be cultivated. Third-party standardization service bodies with capabilities such as public data authorization, operational performance evaluation, etc.
•The four departments issued an announcement on strengthening the access of electric bicycle products and the management of industry standards. The announcement requires that the mandatory national standards be strictly implemented, and from November 1, 2024, the electric bicycles newly entrusted with certification shall meet the requirements of the mandatory national standards and modification orders, and can only be used in the factory, sales, import or other business activities after certification and marking the certification mark. The certification client can voluntarily implement it in advance.
•Statistics from the State Administration of Foreign Exchange show that as of the end of September 2024, the size of the mainland's foreign exchange reserves was US$3,316.4 billion, an increase of US$28.2 billion, or 0.86%, from the end of August. China's gold reserves stood at 72.8 million ounces (about 2,264.33 tons) at the end of September, unchanged from the previous month.
•On October 12, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and other commercial banks announced that they would adjust the interest rates of existing housing loans in batches on October 25. According to the announcement, the adjustment will be for commercial personal housing loans, and the interest rate of the existing housing loans (including the first, second and above) will be adjusted in batches. Among them, the interest rate in Beijing, Shanghai, Shenzhen and other regions is higher than the LPR (loan prime rate) minus 30 basis points for the first home loan and the interest rate in other regions is higher than the LPR minus 30 basis points for all existing housing loans will be adjusted to the LPR minus 30 basis points.
•The reporter recently learned from the Ministry of Human Resources and Social Security that the mainland's unemployment insurance continues to expand its coverage and continuously improve the level of protection. As of the end of September, 245 million people were covered by unemployment insurance. In the future, we will promote the wide coverage of unemployment insurance to professional workers, and improve the linkage mechanism between employment, unemployment insurance, and minimum livelihood security.
•According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers, in August 2024, 76,000 vehicles were imported, up 8.2% m/m and 1.6% y/y. The import value was 4.27 billion US dollars, down 1.6% month-on-month and 0.9% year-on-year. From January to August 2024, vehicle imports totaled 478,000 units, down 1.8% y/y. The import value was 27.24 billion US dollars, a year-on-year decrease of 8.1%.
•The results of the election of the sixth Chief Executive of the Macau S.A.R. Region were announced on the 13th, and Shum Ho Fai was elected as the sixth Chief Executive-elect with 394 votes in the 400 election committee.
【International News】
United States non-seasonally adjusted CPI recorded an annual rate of 2.4% in September, the sixth consecutive month of decline, but higher than market expectations of 2.3%. United States seasonally adjusted CPI recorded 0.2% in September, compared with 0.2% in the previous month.
• Initial jobless claims in the United States recorded 258,000 in the week to Oct. 5, the highest since the week of Aug. 5, 2023.
United States PPI rose 1.8% year-on-year in September, higher than expected, and the previous value rose 1.7%; United States PPI was flat in September from the previous month, rising 0.2% in the previous month.
•According to a report released by the Congressional Budget Office of United States on the 8th, the federal government budget deficit in fiscal year 2024 (October 1, 2023 to September 30, 2024) United States as high as $1.8 trillion, an increase of $139 billion from the previous fiscal year.
• Japan Prime Minister Shigeru Ishiba announced the dissolution of the House of Representatives at an interim cabinet meeting on the morning of the 9th. Fukushiro Ega, Speaker of the House of Representatives, read out the edict of dissolution at the plenary session of the House of Representatives in the afternoon of the same day, and the House of Representatives was officially dissolved, thus opening the prelude to the election campaign for the next House of Representatives.
•Japan's Ministry of Health, Labor and Welfare data showed that the basic salary of full-time employees rose 2.9% year-on-year in August, up from 2.6% in July; Nominal cash income growth for all workers slowed to 3%, slightly higher than consensus expectations.
United Kingdom GDP grew 0.2% month-on-month in August after two consecutive months of no growth, according to the United Kingdom's Office for National Statistics.
• The Copernicus Climate Change Service, the European Union's climate monitoring agency, released a report on the 8th, saying that the past September was the second hottest September in the global and European regions since the agency began records in 1940.
• On the 9th local time, the Council of the European Union issued an announcement that the Council reached an agreement on a package of financial assistance to Ukraine on the same day. The agreement includes a €35 billion Special Macro-Financial Assistance (MFA) loan to Ukraine, bringing the EU and G7 to Ukraine a total of up to €45 billion.
• Data released by the Germany Federal Statistical Office on the 11th showed that inflation in Germany continued to slow down in September, falling to 1.6%, down from 1.9% in August and the lowest level since February 2021, affected by a further decline in energy prices.
• Russia Deputy Prime Minister Alexander Novak said Russia does not plan to ban diesel exports again.
• Israel Prime Minister Benjamin Netanyahu issued a video statement on the evening of the 8th, saying that Israeli forces have killed the successor of Lebanon Allah leader Nasrallah. Netanyahu did not mention the person's name.
• According to the official website of the Bank of Korea, on October 11, the Bank of Korea cut its benchmark interest rate by 25 basis points to 3.25%, in line with market expectations.
Editor: Zhang Yao
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