Important Developments Impacting the Market This Weekend
Over the weekend, several important developments took place that could have an impact on the market. The State Council issued the “Opinions on Further Optimizing the Foreign Investment Environment and Increasing the Attraction of Foreign Investment,” which aims to create a market-oriented and international business environment to attract more foreign investment.
In July, new credit reached 345.9 billion yuan, while social financing increased by 528.2 billion yuan. These figures indicate a stable growth in financial support for the real economy. However, it is important to consider multiple factors when analyzing monthly data fluctuations.
In response to negative statements about China, the Xinhua Times commented that bad-mouthing China will only hit a wall repeatedly in the face of facts. The US President, Joe Biden, referred to China as a “time bomb” during a political fundraising event. However, the People’s Daily Bell argues that containment and suppression cannot stop China’s development, pointing out the harmful effects of the US executive order on foreign investment review.
In terms of financial data, industry experts argue that while the year-on-year increase in loans may indicate weakened financial support, the overall financial data for the first half of the year shows stable growth. The year-on-year growth rates of M2, social financing, and new loans remain at a high level, reflecting robust financial efforts.
In global markets, the three major US stock indexes experienced mixed results. The Dow Jones index closed up, while the Nasdaq index closed down. Popular Chinese concept stocks also saw a collective decline, with the Nasdaq China Golden Dragon Index falling 3.66%.
Several major hedge funds, including Bridgewater and Soros Fund, increased their positions in Chinese assets and Chinese concept stocks during the second quarter, according to their 13F reports submitted to the US Securities and Exchange Commission.
In the A-share market, the China Securities Regulatory Commission announced the promotion of block trading transactions through the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Hong Kong Stock Exchange. This move aims to deepen the trading interconnection between mainland China and Hong Kong and promote the development of both capital markets.
Lastly, the China Foundation Association disputed recent reports that China intends to strengthen the supervision of hedge funds. The association stated that the reports are not objective or true, emphasizing that the regulations issued by the State Council did not stipulate a minimum size requirement for funds.
Overall, these developments highlight the ongoing dynamics in the market and the potential impact on various sectors. Investors should closely monitor these factors to make informed decisions.