Weekly Market News Recap (2020.7.25-2020.7.31)
China Futures and Capital Market:
l China Construction Bank has been approved to be the trading settlement member of China Financial Futures Exchange, and the first batch of pilot commercial banks (industry, agriculture, China, construction and communications) have all participated in the comprehensive implementation of treasury bond futures business.
l SHFE: we will do a good job in the listing of international copper and other international futures and options such as zinc and aluminum, and accelerate the research and development of refined oil and natural gas futures; we will take the low sulfur fuel oil futures as a pilot to explore the establishment of overseas warehouses; we will explore the cooperation with overseas exchanges in the authorization of settlement price and the "northward link" of commodity futures.
l DCE: it has decided to adjust the listing method of arbitrage contracts from the night trading section of July 31, and add some intertemporal and cross variety arbitrage contracts related to non-January / may / September contracts.
l DCE: it launched treasury bonds as margin business, and simultaneously optimized standard warehouse receipts as margin business to further reduce market transaction costs and improve market operation efficiency.
l The Shanghai gold exchange: in recent days, the price of gold and silver fluctuates greatly, the position level is high, and the market risk is obviously intensified; if the risk situation of gold and silver is further intensified, the exchange will take appropriate risk control measures according to the market situation to prevent market risk.
l The yield of Dacheng nonferrous futures ETF (159980. SZ) hit 18.18%, becoming the best performance commodity futures ETF in the second quarter.
l CSRC: support the public offering of various long-term funds, further optimize the registration mechanism of conventional bond fund products and improve the registration efficiency from August 1, 2020.
l Hong Kong Stock Exchange: A-share leverage and reverse products are listed in Hong Kong, China for the first time.
l All equity and related changes of JPMorgan futures were completed on July 21. The first futures company wholly owned by foreign capital in China was officially born.
l Industrial and Commercial Bank of China: from July 31, the opening trading of platinum, palladium and precious metal index products will be suspended.
China Macro-News:
l The meeting of the Political Bureau of the CPC Central Committee: the financial policy should be more active and promising, adhere to the principle of "no speculation in housing", strictly crack down on illegal securities activities in accordance with the law, and accelerate the formation of a new development pattern with the domestic big cycle as the main body and the domestic and international dual circulation promoting each other.
l National Bureau of Statistics: China's manufacturing PMI rose to 51.1% in July, which has been in the expansion range for five consecutive months.
l National Bureau of Statistics: in June, the total profits of Industrial Enterprises above Designated Size reached 666.55 billion yuan, with a year-on-year increase of 11.5%, 5.5 percentage points higher than that in May.
l In the first quarter, foreign central banks incorporated RMB assets into official reserves, equivalent to US $221.5 billion, a record high.
l Ministry of transport: strengthen the system layout, concentrate on tackling key problems, and strive for greater breakthroughs in automatic driving technology, high-quality transportation infrastructure and high-performance transportation equipment.
Commodity News:
l World Gold Association: in view of the weak consumer demand, after the recent sharp rise, the fluctuation of gold price may increase in the short term; investment demand has strong reasons to maintain good support in the long term.
l China Gold Association: the proven reserves of gold in China have increased for 15 consecutive years, and exceeded the 10000 tons mark for five consecutive years. China's gold production in 2019 is 380.226 tons, still ranking first in the world, and has been ranked the first in the world for 13 consecutive years since 2007.
l The "crude oil incident" sounded the alarm, and many banks suspended the opening trading of precious metals in their accounts.
l Last week, EIA crude oil inventory decreased by 10.612 million barrels, the largest decline since January 3.
l In June, the average price of China's steel import and export was inverted for the first time.
Global Macro-News:
l As of Beijing time 15:00 on July 31 2020, the total NCP diagnosed cases are 17,328,002 (+1,734,459) globally, including 87,956 (+1,453) cases in China. Among them,10,936,035 (+1,410,277) cases were cured and 670,287 (+38737) cases died.
l The US GDP in the second quarter fell by 32.9% on a month on month basis, the largest decline since the 1940s. Trump's idea of postponing the November election has been opposed by both Parties.
l The Federal Reserve kept the federal funds rate range from 0% to 0.25%, which was in line with expectations.
l According to the report of the world tourism organization of the United Nations, the number of cross-border tourists in May this year decreased by 98% compared with the same period last year, and the scale of economic loss was more than three times that during the global financial crisis in 2009.
l According to CFTC data, leveraged funds have reduced the short position of US Treasury futures to the lowest level since the beginning of 2018.
l The GDP of Germany fell by 10.1% in the second quarter, the biggest drop on record, while exports, consumption and investment fell across the board.
