The parties worried about the first stage of Sino-US trade
The agreement fell into danger again, Hong Kong stocks fell 1.6% or 422 points; the Shanghai index once again fell 2900 points, low to 2891 points; in the afternoon, the stability of the funds barely made the Shanghai index regain 2900 points, but still closed down 0.25%, and The turnover of the two cities has shrunk to 361.1 billion yuan (RMB. The same below), or indicates that the market outlook is still a long way to go.
In order to maintain stability expectations, the spokesman of the Ministry of Commerce immediately clarified after the market closed
Although it was not allowed to disclose that Vice Premier Liu He had a phone call with the US on the 16th, he discussed the details of the first phase of the agreement, but referred to “outside rumors.” It is not accurate. (Or suggesting that the foreign media reported that China and the United States will be delayed until next year to sign the first phase of the agreement is inaccurate), and reiterated that China is still striving to reach the first phase of the agreement.
However, the Chinese side has launched all the propaganda systems and tools, and the “Hong Kong Bill of Rights and Democracy Act” has been passed. It even describes that US politicians are destined to “take their own insults”. This is a “low-level joke.” So far, the “highest level” State Councilor and Foreign Minister Wang Yi has also voiced that the US Congress passed the Hong Kong-related bill. “The essence is to mess up Hong Kong and even destroy Hong Kong!”
Looking at the reverse thinking, Beijing has overwhelmingly countered the “Hong Kong Human Rights Law” passed by the US Congress, and even threatened to counter it. It is rumored that Beijing is very concerned about and avoids the passage of this bill. At present, the “ball” has fallen in the hands of President Trump of the United States. Under the “forced by the situation”, both the Senate and the House of Representatives have passed the vote. I believe that the “invasion” will eventually pass through a large stroke. How to accept the subject, indeed test the wisdom of the leaders of the two countries.
It is no wonder that Prime Minister Li Keqiang yesterday and the heads of major international economic and financial institutions held a “1+6” round-table dialogue in Beijing. They did not name the “approval” and “sadness cards”, saying that “the global economic situation is undergoing profound and complex changes and protection. The rise of the world, the world economic growth rate has slowed down markedly, the global industrial chain and the international division of labor system have been affected, and the uncertainties and uncertainties have increased significantly.”
As a means of correspondence, Li Keqiang first specified China’s economic response next year, and clearly stated that it would “increase efforts to lower the actual loan interest rate level”. The analysis expects that the central bank will lower or even cut interest rates as soon as next month. In particular, the central bank cut the 1-year and 5-year LPR (the loan market quotation rate) by 0.05% on Wednesday (20th), clarifying that the central bank will use MLF. Interest rates (intermediate lending facilities) serve as a new benchmark. In December, there will be two 1-year MLFs due, which will be 187.5 billion yuan on December 6, and 286 billion yuan on December 14, and if the central bank continues to cut interest rates, it will curve. Let the “reduction of interest rate” in the fifth quotation of LPR on December 20.
Li Keqiang also revealed that his “toolbox” next year also includes: (1) The continuity and stability of macroeconomic policies will be maintained next year
(2) Continue to implement a proactive fiscal policy and a prudent monetary policy to give market stability expectations. (3) Reaffirming that “no quantitative easing will be done”, but it will use the economic counter-cyclical adjustment tool to “implement a larger tax cut and reduce fees this year” and maintain a reasonable and sufficient liquidity. (4) To announce the release of domestic demand potential, further open up the manufacturing industry and expand the open service industry. (V) Further relax the access to foreign-funded markets and implement the announced open measures in the financial sector, including “taking the opportunity of a new round of scientific and technological revolution and industrial revolution to develop and expand new kinetic energy”.
However, these are some medium- and long-term policies, and the impact on the Chinese economy will not emerge in a short period of time. On the contrary, CSSC announced last night that the company issued shares to purchase assets and raise funds for matching funds and related transactions, which was not approved by the CSRC M&A Committee. The main reason is that there are significant uncertainties in the future profitability of the underlying assets. At the time of the resumption of trading, it is believed that the stock and related sectors will be subject to significant pressure.
China Shenhua announced yesterday that coal sales in October was 33.7 million tons, down 12.2% year-on-year; cumulative sales in the first 10 months were 365.4 million tons, down 3.4% year-on-year, reflecting the overall economic fatigue.