December 12th Macroeconomic Index: China Issues Additional Treasury Bonds, U.S. Inflation Expectations Fall

   Daily Macro Economy News

Latest Global Major Index

International Crude Price Trend and Exchange Rate of RMB to USD Trend

Domestic News

1. The General Office of the State Council issued the "Several Measures on Accelerating the Integrated Development of Domestic and Foreign Trade" to support foreign trade enterprises to expand the domestic market and organize a series of activities for foreign trade to expand domestic sales

2. The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation issued an announcement to significantly revise and improve the technical requirements for new energy vehicle products that are currently exempted from purchase tax

3. The Ministry of Finance issued an additional 10 billion yuan of treasury bonds in Hong Kong today

4. Jin Guanping, Economic Daily: Continuously meet diversified housing needs

International News

1. U.S. inflation expectations for the coming year fell to the lowest since April 2021

2. The eurozone economy will not be able to avoid its first recession since the pandemic

3. The Bank of Japan believes that there is no need to end negative interest rates in December, lacking evidence that inflation is sustainable

4. The Russian government announced the suspension of the export of strong gluten wheat

Domestic News

1. The General Office of the State Council issued the "Several Measures on Accelerating the Integrated Development of Domestic and Foreign Trade" to support foreign trade enterprises to expand the domestic market and organize a series of activities for foreign trade to expand domestic sales

The General Office of the State Council issued the "Several Measures on Accelerating the Integrated Development of Domestic and Foreign Trade" to support foreign trade enterprises to expand the domestic market and organize a series of activities for foreign trade to expand domestic sales. Support domestic trade enterprises to use cross-border e-commerce, market procurement trade and other ways to open up the international market. Deepen the pilot project of domestic and foreign trade integration, and encourage the increase of reform and innovation related to the integration of domestic and foreign trade. Cultivate integrated domestic and foreign trade enterprises, support the core enterprises of the supply chain to drive upstream and downstream enterprises to explore the domestic and international markets. We will increase fiscal and financial support, implement relevant financial support policies, and actively support the integrated development of domestic and foreign trade.

2. The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation issued an announcement to significantly revise and improve the technical requirements for new energy vehicle products that are currently exempted from purchase tax

The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation issued an announcement to significantly revise and improve the technical requirements for new energy vehicle products that are currently exempted from purchase tax, including a number of indicators such as vehicle energy consumption and driving mileage, which is the first major revision since 2017. The new technical requirements add the technical index requirements for low-temperature mileage attenuation, and clarify the relevant requirements for battery swap mode vehicle models. From June 1 next year, vehicles that do not meet the technical requirements will be withdrawn from the "Tax Reduction and Exemption Catalogue".

3. The Ministry of Finance issued an additional 10 billion yuan of treasury bonds in Hong Kong today

Today (12th), the Ministry of Finance will issue 10 billion yuan of treasury bonds to professional investors in Hong Kong, including an additional 2-year 3 billion yuan bonds, 3-year 3 billion yuan bonds and 5-year 4 billion yuan bonds. This is the fourth issue of RMB sovereign bonds issued by the Ministry of Finance in Hong Kong this year, and the annual issuance scale will reach 50 billion yuan.

4. Jin Guanping, Economic Daily: Continuously meet diversified housing needs

At present, China's real estate market has basically solved the problem of "rigid need of housing", but the problem of structural insufficiency still exists. From the perspective of demand, the people have higher requirements for housing quality, and hope to live in better houses and get better services. To this end, it is necessary to focus on satisfying the demand for rigid and improved housing, and strive to let the people live in good houses. In the future, the real estate market will establish a new mechanism for the linkage of "people, housing, land and money", starting from the scientific allocation of factor resources, and allocating houses by people, land by houses, and money by houses, so as to prevent the market from going up and down. At the same time, establish a full life cycle management mechanism from development and construction to the maintenance and use of housing, including the optimization of development methods, financing methods, sales methods, and establish housing physical examination, housing pension, housing insurance and other systems.

International News

1. U.S. inflation expectations for the coming year fell to the lowest since April 2021

Data from the New York Fed showed that U.S. consumers' inflation expectations for the year ahead fell to their lowest level since April 2021 in November. Median expectations for inflation over the year ahead fell for the second month in a row, with 3.4% in November down from 3.6% in October. Expectations for three-year and five-year inflation levels are stable at 3% and 2.7%, respectively. The pullback in short-term inflation expectations reflects a range of factors, including a pullback in expected increases in gasoline prices and the lowest expected increases in rent and college tuition prices since January 2021. Inflation expectations for people over 60 have fallen to a nearly three-year low. Consumers’ perceptions of the labor market have deteriorated. The average expectation of the likelihood of unemployment in the next 12 months rose by almost 1% to 13.6%. The expected probability of finding a job after losing a job fell to a seven-month low of 55.2%. Respondents in the Midwest region were the least confident in finding a new job.

2. The eurozone economy will not be able to avoid its first recession since the pandemic

The eurozone economy will not be able to avoid its first recession since the pandemic, and the economy is expected to shrink for the second consecutive quarter in the last three months of the year. A modest economic upturn is expected in early 2024.

3. The Bank of Japan believes that there is no need to end negative interest rates in December, lacking evidence that inflation is sustainable

The Bank of Japan believes that there is no need to end negative interest rates in December and that there is a lack of evidence that inflation is sustainable. The Bank of Japan is reviewing a benchmark ratio used to calculate the macro surcharge balance in the current account balance of the Bank of Japan.

4. The Russian government announced the suspension of the export of strong gluten wheat

The Russian government issued a government order on December 11 local time to suspend the export of Russian strong gluten wheat (also known as hard wheat). The Russian government said that the move is aimed at ensuring food security in Russia and the stability of prices of strong gluten wheat products in the Russian domestic market. The temporary restrictive measures on the export of strong gluten wheat will take effect from the date of issuance of the government decree and will be valid until May 31, 2024. At the same time, the government decree states that the export of gluten wheat for international humanitarian assistance, within the framework of international intergovernmental agreements and exports to the member states of the Eurasian Economic Union should be exempted from the restriction of the order.

Domestic Macro Economy Index