Weekly Market News Recap (2020.7.4-2020.7.10)
China Futures and Capital Market:
l In June, the total transaction amount of the National Futures market was 30.84 trillion yuan, with a year-on-year increase of 27.32%; the total transaction amount of the option market was 11.892 billion yuan, an increase of 380.1%.
l CSRC: continue to promote the normalization of cracking down on illegal activities of OTC capital allocation, and resolutely safeguard the interests of investors and the order of the capital market.
l DCE: in order to make a solid preparation for the listing of pig futures, it will carry out simulation trading of pig Futures (internal test) from July 10, 2020.
l SSE: start the research on high frequency trading mode and supervision of options market.
l Hong Kong Stock Exchange: launched SPSA centralized management service on July 10 as a new measure to further serve Shanghai Shenzhen Hong Kong stock connect.
l Hong Kong Stock Exchange: its OTC settlement companies launched settlement services based on HONIA pricing interest rate products.
l Two large state-owned banks: at present, less than 2% of the total assets of the two major banks, together with the parent company's old products and the new products of its subsidiaries, are used to allocate equity assets, and the current goal is to increase it to about 5% in the future.
China Macro-News:
l China's State Council: it is required to accelerate the construction of major water conservancy projects, expand the scale of equity and debt financing, and accelerate the construction of water conservancy projects through market-oriented reform.
l In June, China's CPI rose by 2.5% year-on-year, ending the 4-month trend of narrowing growth, with an expected increase of 2.6% and a former rise of 2.4%.
l In June, China's PPI fell by 3% year-on-year, ending the trend of four consecutive months of decline, with an expected decrease of 3.1% and a former decrease of 3.7%.
l At the end of June, China's foreign exchange reserves reached US $3112.3 billion, up $10.6 billion or 0.3% over the end of May.
l China's M2 money supply in June was 11.1% year-on-year, with an expected 11.1% and the previous value of 11.1%.
l In June, China's RMB loans increased by 1810 billion yuan, which is expected to be 1800 billion yuan, with the former value of 148 billion yuan.
l China's social financing scale increased by 3430 billion yuan in June, which is expected to be 3050 billion yuan, with the former value of 3190 billion yuan.
l Ministry of Commerce: actively support Hong Kong and Macao enterprises to explore the mainland market.
l Ministry of Commerce: further increase the support of agricultural products market, improve the level of software and hardware construction, and promote the legislation of agricultural product market.
l Ministry of water resources: upgrade the level IV emergency response for flood and drought disaster prevention to level III.
Commodity News:
l The world's largest copper producer Codelco suspended its copper upgrading project.
l Copper futures soared 40% in 100 days, outperforming Gold: enterprises and capital jointly bet on supply and demand to further tighten.
l The Chicago Mercantile Exchange lowered the margin of WTI crude oil futures for the third time in recent two months.
Global Macro-News:
l As of Beijing time 15:00 on July 10, 2020, the total NCP diagnosed cases are 12,420,413 globally, including 85,447 cases in China. Among them, 7,249,713 cases were cured and 557,547 cases died.
l The latest data of the U.S. Department of labor: 1.314 million people applied for unemployment benefits for the first time last week, which was lower than the 1.375 million people expected by Bloomberg. This is the 14th consecutive week that the number of new jobless claims has fallen, but it has exceeded 1 million for 16 consecutive weeks.
l Chicago Options Exchange (CBOE): the European version of the US volatility index contract may be launched after its first European derivatives market starts operation in early 2021.
l The S & P cut the global GDP forecast for 2020 to shrink by 3.8%, which was expected to shrink by 2.4%.
l Last week, the U.S. consumer comfort index dropped for the first time in seven weeks, raising the possibility of economic recovery cooling down. The US 30-year mortgage rate fell to 3.03%, the sixth consecutive record low.
l Kim Yu Zheng, younger sister of North Korean leader Kim Jong Un, called the move "meaningless" in addition to the possibility of meeting with the United States this year.
l The U.S. energy information administration lowered the global oil supply forecast this year, improved the demand outlook, and raised the US crude oil production and oil demand forecast.
