Today's market focus: The Ministry of Housing suggests rising financial risks in real estate.

Market Review

Focus News

Chinese Market

1. CSRC Studies Extending Trading Hours

The China Securities Regulatory Commission has proposed 25 measures to invigorate the market, primarily including studying the extension of trading hours for the stock and bond markets, considering the secondary market's capacity for IPOs and refinancing, developing equity funds, reforming the investment front, enhancing the attractiveness of listed companies to investors, and optimizing and improving transaction mechanisms.

2. Multiple Chinese Ministries Hold Key Meeting

The People's Bank of China, the Financial Regulatory Authority, and the China Securities Regulatory Commission jointly held a teleconference, which called for enhanced financial support for the real economy, promoting the reduction of financing costs, coordinating local debt risk resolution work, and establishing evaluation and control mechanisms to push forward risk disposal in key regions.

3. Ministry of Housing and Urban-Rural Development Indicates Intensified Real Estate Financial Risks

The National Finance and Development Laboratory's report for the second quarter of 2023 points out that, affected by the sluggish real estate market and tight funding chains, most property developers face significant debt pressure in the second half of the year, with severe default risks. Furthermore, defaults or bankruptcy filings by leading developers such as Country Garden, Sino-Ocean Group, and Evergrande indicate considerable debt pressures and challenges in debt restructuring.

4. China Ranks Second in Global Computing Power

Jin Zhuanglong, Minister of Industry and Information Technology of China, stated that China's total computing power has reached 197 EFLOPS (197 quintillion floating-point operations per second), ranking second worldwide. Around computational hubs, 130 trunk optical cables have been built, significantly improving data transmission capabilities.

Overseas Markets

1. German Economy Minister Leads Drafting of Legislation to Restrict Chinese Investments

According to a government document cited by Germany's Handelsblatt, Germany plans to legislate restrictions on Chinese investments in critical fields such as artificial intelligence, cloud computing, cybersecurity, and raw materials. Deputy Chancellor and Minister for Economic Affairs Robert Habeck is leading the proposed measures, which will expand the German government's authority to prohibit non-EU investors from taking stakes in German companies.

2. US, Japan, and South Korea to Share Intelligence Hotline

During their meeting at Camp David, US President Joe Biden, Japanese Prime Minister Fumio Kishida, and South Korean President Yoon Suk-yeol stated that the three countries plan to hold annual trilateral summits and will establish a new hotline for rapid intelligence sharing between them. Biden mentioned that the three nations would also conduct annual multi-domain military exercises, elevating their defense cooperation to a new level and enhancing information sharing on North Korea's missile launches and cyber activities.

3. India Plans to Ban the Export of Four Rare Metals

According to the Business Standard, the Indian government is considering banning the export of lithium, beryllium, niobium, and tantalum. A senior official stated that the ban aims to ensure self-sufficiency in crucial resources due to the significant role rare metals play in the energy sector, national security, and technological achievements.

4. Russia Refuses to Negotiate with Western Countries on Ukraine Issue

Russian Foreign Minister Sergey Lavrov stated that there is no prospect for negotiations with Western countries on the Ukraine issue, as the West provides the exhausted Ukrainian military with opportunities to catch their breath and regroup, while supplying them with weapons and ammunition.