China's securities regulator announced stricter regulations on program trading today.

Market Recap

Market Focus

China Market

The Securities Regulatory Commission advocates strengthening the supervision of algorithmic trading

The Securities Regulatory Commission guides stock exchanges to effectively implement the algorithmic trading reporting system, intensifying differentiated supervisory arrangements for high-frequency trading. It urges stock exchanges to ensure that all market participants strictly adhere to the algorithmic trading reporting system and regulatory arrangements, aiming to maintain a healthy market order and ecosystem, thereby protecting investors' legal rights.

Shanghai and Shenzhen stock exchanges mandate reporting before conducting algorithmic trading

The Shanghai and Shenzhen stock exchanges have issued a notice on strengthening the management of algorithmic trading, requiring investors to report their algorithmic trading activities. If a client's algorithmic trading is deemed to potentially affect the safety of the trading system or the orderly conduct of transactions, members may take measures such as refusing their algorithmic trading requests or rescinding related declarations.

All first-tier cities implement the "Recognize House, Not Loan" policy

Following the official announcements of the new real estate policy "Recognize House, Not Loan" in Guangzhou and Shenzhen, Shanghai and Beijing have successively announced their implementation. Several interviewed industry insiders commented that the policy lowers the threshold for home purchasing and may stimulate some consumer demand. However, under the current situation, it is unlikely to trigger a new cycle of price increases. After the new policies in Beijing and Shanghai were announced, some developers cancelled all discounts and comprehensively raised the sales prices of their properties.

August Caixin Manufacturing PMI records the fastest growth in six months

China's Caixin Manufacturing PMI for August stood at 51, not only returning above the pivotal 50 mark but also marking the fastest growth rate since February. Both supply and demand in the manufacturing sector expanded, with the manufacturing production index and new orders index rebounding above the pivotal mark, and the employment index reaching its highest since April 2010.

Overseas Markets

The U.S. reports mixed non-farm payroll data for August

Data released by the U.S. Bureau of Labor Statistics shows that the U.S. added 187,000 non-farm jobs in August, exceeding the expected 170,000. The unemployment rate unexpectedly rose to 3.8%, the highest since February last year. The labor participation rate increased to 62.8%, the highest level since the global outbreak of COVID-19 in February 2020. Following the data release, interest rate markets reflected a decreased likelihood of the Federal Reserve hiking rates again this year, with expectations for a 25 basis point rate cut moving forward from June to May next year.

U.S. ISM Manufacturing Index contracts for 10 consecutive months

Data from ISM showed that the U.S. ISM Manufacturing Index rose to 47.6 in August. Despite contracting for 10 consecutive months, the figure for August reached a six-month high. The data indicates that manufacturing is stabilizing at a soft level, with the weak conditions no longer worsening. Financial institutions suggest that the August data point to progress in reducing excess inventories and a rebound in consumer goods spending, offering manufacturers some hope and indicating slight alleviation in the downturn.

Saudi Arabia may launch the world's largest IPO

Sources claim that Saudi Arabia is considering selling up to $50 billion in shares of Saudi Aramco, which, if successful, would constitute the largest IPO in global capital market history. Saudi Aramco is the world's largest oil company and one of the highest-valued companies globally, with a current market capitalization of approximately $2.25 trillion.