The Expo will push forward new measures for opening up
On the evening of November 4, President Xi Jinping attended the opening ceremony of the 4th China International Import Expo by video and delivered a keynote speech entitled "Let the Spring Breeze of Opening Up Warm the World". Xi Jinping pointed out that China has always believed in what it says and will do what it does. The measures to expand opening up announced by me at the third CIIE have been basically implemented.
Xi Jinping stressed that China's determination to expand high-level opening up will not change, its determination to share development opportunities with the world will not change, and its determination to promote economic globalization in the direction of more openness, inclusiveness, inclusiveness, balance and win-win results will not change.
Xi Jinping pointed out that China will further reduce the negative list of foreign investment access, orderly expand the opening up of telecommunications, medical and other service industries, revise and expand the Catalogue of Encouraged Foreign Investment Industries, and introduce a negative list of cross-border service trade in pilot free trade zones. China will deeply participate in international cooperation such as green, low-carbon and digital economy, and actively promote its accession to the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the Digital Economy Partnership Agreement.
China's Application to Join the Digital Economy Partnership Agreement
According to Xinhua, President Xi Jinping attended the first phase of the 16th G20 Summit in Beijing by video on October 30 and delivered an important speech.
Xi Jinping stressed that China has put forward the Global Data Security Initiative, and we can jointly explore the formulation of international rules for digital governance that reflect the wishes of all parties and respect the interests of all parties, and actively create an open, fair, just and non-discriminatory digital development environment. China attaches great importance to international cooperation in the digital economy, has decided to apply for membership in the Digital Economy Partnership Agreement, and is willing to work with all parties to promote the healthy and orderly development of the digital economy.
On November 1, China's Minister of Commerce, Wang Wentao, sent a letter to New Zealand Minister for Trade and Export Growth O'Connor, where he formally applied on behalf of China to New Zealand, the depositary of the Digital Economy Partnership Agreement (DEPA). Signed by Singapore, New Zealand and Chile in June 2020, depa consists of sixteen thematic modules, including business and trade facilitation, dealing with digital products and related issues, data issues, and a broader environment of trust.
In addition to the existing trade and investment agreements, depa has proposed a separate agreement on the digital economy, which is the world's first special rule arrangement on the digital economy. At present, the United States, China, and Germany, the top three in the scale of the global digital economy, mainly represent the three forces of global digital economic and trade rules, and these three models have their own differences. China chose to join DEPA because some of its contents are in line with China's demands, and on the other hand, it also shows China's determination to participate in global economic governance.
The business rules of the Beijing Stock Exchange are in place
On the evening of October 30, the CSRC issued 18 rules, guidelines and normative documents, covering the issuance and registration, continuous supervision and refinancing of the Beijing Stock Exchange, and the website of the Beijing Stock Exchange subsequently published 4 basic business rules for listing and review and 6 supporting rules. The rules will take effect on November 15.
On the evening of November 2, the Beijing Stock Exchange re-issued 2 basic business rules for trading and membership management, as well as 31 rules for corresponding rules. It is clear that on the day that the selected layer of the New Third Board is shifted to the Beijing Stock Exchange, its stock trading implements a 30% limit on the increase or decrease of the stock, and there is no limit on the increase or decrease on the first day of the listing of stocks publicly issued to unspecified qualified investors, or on the first day of the delisting period.
On November 3, a large area of the selected layer was red.
【Comments】At this point, all the basic business rules of the Beijing Stock Exchange have been released, which means that the Beijing Stock Exchange has the conditions for opening the market, and from the date of implementation of the rules, the opening date is likely to be in the middle of this month. With the opening of the Beijing Stock Exchange, the door of the capital market will be opened to excellent innovative small and medium-sized enterprises, and investors will also be able to participate in this major change in the capital market and usher in more investment opportunities.
Opening of the United Nations Climate Change Conference
From October 31 to November 12, local time, the 26th meeting of the United Nations Climate Change Conference and the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) was held in Glasgow, England. Whether the Paris Agreement can be fully and effectively implemented, whether all parties can implement the emission reduction targets they have promised, and whether developed countries can fulfill the relevant support for developing countries in terms of financing, technology and capacity building are important topics that focus on this conference.
November 4 is Energy Day, and more than 40 countries have pledged to phase out coal in a new agreement, making it one of the most important outcomes of the climate conference. About $20 billion has been announced at the climate conference to help countries exit coal.
【Comments】Climate change is a common challenge for all mankind. In the face of this major challenge, which affects the common destiny of mankind, no country can stand alone. Unfortunately, due to deep disagreements, the parties have not been able to conclude negotiations on the core remaining issues of the implementation rules of the Paris Agreement at previous UN climate change conferences.
As the first climate conference to be held since the Paris Agreement entered the implementation phase, COP26 is considered the "last and best chance" to pull the world back from the tipping point of climate change. Therefore, in order to reach commitments on key issues, countries should no longer talk about or even throw pots at each other as they did in the past, but should abandon their previous grievances, trust each other, and actively advocate that all parties translate their goals into concrete actions.
Manufacturing pmi was below the boom-bust line for two consecutive months
The National Bureau of Statistics released data on October 31, and the manufacturing pmi in October was 49.2%, down 0.4 percentage points from the previous month, down for 7 consecutive months, and operated below 50% for 2 consecutive months.
Among them, the impact of the rapid rise in energy prices runs through the industrial chain supply chain. In October, the price of domestic electricity, coal and other energy sources rose rapidly, and the cost of raw materials of enterprises rose significantly, and was transmitted downstream through the industrial chain supply chain. The raw material purchase price index was 72.1%, a sharp increase of 8.6 percentage points from the previous month; the ex-factory price index was 61.1%, up 4.7 percentage points from the previous month.
【Comments】 The manufacturing pmi has been below the boom-bust line for two consecutive months, indicating that the downward pressure on the economy has increased. This is mainly due to factors such as energy constraints and faster rises in raw material prices. Zhang Liqun, a special analyst of the China Federation of Logistics and Purchasing, believes that effective measures should be taken as soon as possible to boost domestic demand, smooth the supply chain and industrial chain, effectively improve the production and operation conditions of enterprises, and strive to consolidate the foundation for sustained economic recovery.
The Fed announced taper
On November 3, local time, the Federal Reserve announced the November interest rate decision, maintaining the federal economic interest rate at 0 to 0.25%, and announced a reduction in the monthly asset purchase plan (taper) of $120 billion.
The Federal Open Market Commission (FOMC) decided to cut monthly Treasury bond purchases by $10 billion, starting in November, and institutional mortgage-backed securities (MBS) to $5 billion. Later this month, the Fed will buy at least $70 billion in Treasuries and $35 billion in MBS. In December, the Fed will buy at least $60 billion in U.S. Treasuries and at least $30 billion in MBS.
Fed Chairman Jerome Powell said at a news conference that the pace of asset purchases could be accelerated or slowed next year, depending on changes in the economic outlook.
After the decision was announced, the three major us stock indexes bottomed out, spot gold rushed up nearly $10 in the short term, the 10-year US Treasury yield bottomed out to 1.60%, and the yield curve steepened again.
【Comments】 Since the Fed has fully communicated with the market around the taper's launch plan before, and the time and strength are expected by the market, the impact of this round of taper launch on the market is limited. At the press conference, journalists were more concerned about rate hikes than tapers. Powell "talked about the discoloration of interest rate hikes" and tried his best to cut the relationship between interest rate hikes and tapers, for fear of causing excessive interpretation in the market and causing market panic. However, due to the subtle adjustment of the Fed's attitude toward inflation, the market's recent expectations for the Fed's interest rate hikes have been significantly advanced.