February 20 Macroeconomic Index:Global financial trends-from China’s AI glasses testing to diverse changes in the international market

Latest Global Major Index

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

Domestic News

1. The China Academy of Information and Communications Technology officially launched a special test of AI glasses

2. Hong Kong Monetary Authority: The composite interest rate at the end of January 2025 was 2.16%, down 8 basis points from the previous month

3. Five departments: support the upgrading of consumption of automobile products, electronic products, household products, etc., and promote EV, smart household appliances, and the "renewal" of home decoration and kitchen ware

4. State Administration of Financial Supervision and Administration: It is necessary to maintain a stable and effective supply of incremental credit to private enterprises

5. All-China Federation of Industry and Commerce: help create a fair and open market environment

 International News

1. Brazil announced its accession to OPEC+

2. The average wholesale price of rice in Japan rose by nearly 70% year-on-year in January

3. UK inflation has reached a 10-month high, complicating the BOE's interest rate path

4. South Korea is reported to be building the world's largest AI data center

5. JPMorgan Chase & Co. upgrades Singapore equities to overweight in favour of retail and property stocks

Domestic News

1. The China Academy of Information and Communications Technology officially launched a special test of AI glasses

With the rapid development of artificial intelligence technology and the expansion of application scenarios, AI glasses, as one of its important landing scenarios, have also ushered in unprecedented development opportunities, showing a rapid growth trend. The CTTL-Terminals of the China Academy of Information and Communications Technology and S-Dream Lab jointly conducted a comprehensive and objective function, performance, usability and reliability test on the main use scenarios and functions of RayBan-Meta Wayfarer smart glasses from 7 modules and more than 60 test items in basic configuration, audio, image, image stabilization, interaction, battery life, security and privacy, aiming to provide reference evaluation indicators for the AI glasses industry and promote technological innovation and upgrading and industrial standardization. Promote the benign and sustainable development of the industry ecology.

2. Hong Kong Monetary Authority: The composite interest rate at the end of January 2025 was 2.16%, down 8 basis points from the previous month

The Hong Kong Monetary Authority (HKMA) announced the composite interest rate for the end of January 2025. The composite interest rate, which measures the average cost of funds of banks, decreased by 8 basis points to 2.16% at the end of January 2025, from 2.24% at the end of December 2024. The decline in composite interest rates reflected a decrease in the weighted cost of funds for deposits and interbank funds during the month.

3. Five departments: support the upgrading of consumption of automobile products, electronic products, household products, etc., and promote EV, smart household appliances, and the "renewal" of home decoration and kitchen ware

Five departments, including the State Administration for Market Regulation, issued the "Three-Year Action Plan for Optimizing the Consumption Environment (2025-2027)". The Action Plan proposes to further implement the actions of "increasing varieties", "improving quality" and "creating brands" in the consumer goods industry, promote the construction of quality infrastructure, help improve the quality of the industrial chain and supply chain, and strengthen the quality, standards and brand building in the fields of automobiles, home appliances, home furnishings, electronic products, textiles and garments, and food. Support the upgrading of consumption of automotive products, electronic products, household products, etc., and promote the replacement of "energy" for automobiles, "intelligence" for home appliances, and "renewal" of home decoration and kitchen bathrooms. Improve the recycling system of renewable resources and smooth the consumption cycle. (State Administration for Market Regulation)

4. State Administration of Financial Supervision and Administration: It is necessary to maintain a stable and effective supply of incremental credit to private enterprises

On February 18, the Party Committee of the State Administration of Financial Supervision held a meeting to convey and study the spirit of General Secretary Xi's important speech at the symposium on private enterprises, and to study, deploy and implement measures. The meeting demanded that the General Administration system should adhere to the problem-oriented, continue to make great efforts to guide and urge the banking and insurance industries to make the financial services of private enterprises practical, in-depth and refined, grasp the key points, make practical moves and actions. It is necessary to maintain a stable and effective supply of incremental credit to private enterprises, and increase the support for first loans, renewal loans, and credit loans for private small and micro enterprises. We will build a bank-enterprise precise docking platform for key private investment projects, give full play to the role of the "Financing Coordination Mechanism for Supporting Small and Micro Enterprises", implement the policy of renewing loans without principal repayment, strengthen science and technology to empower inclusive finance, and effectively improve the financing satisfaction of private enterprises. Make good use of the "white list" mechanism, play a good role in the "combination of various financing tools for real estate", and meet the reasonable financing needs of various real estate enterprises, including private real estate enterprises, in different links and stages. Enrich the insurance product system, steadily promote the pilot work of equity investment in financial asset investment companies, and strengthen and improve comprehensive financial services for private enterprises. In terms of market access in the financial industry, enterprises of all types of ownership will be treated equally and fairly.

5. All-China Federation of Industry and Commerce: help create a fair and open market environment

The reporter learned from the All-China Federation of Industry and Commerce that in the next step, the All-China Federation of Industry and Commerce will strengthen ideological guidance, guide the majority of private economic people to resonate with the development of enterprises and the national strategy, and actively participate in the construction of Chinese-style modernization. The All-China Federation of Industry and Commerce said that private enterprises should maintain their concentration and work hard to improve their internal skills when they encounter difficulties and challenges in the process of operation and development. The All-China Federation of Industry and Commerce will strengthen enterprise services, assist the party and the government in breaking down various obstacles to the equal use of production factors in accordance with the law and fair participation in market competition, and help create a fairer and more open market environment.

International News

1. Brazil announced its accession to OPEC+

Brazilian Minister of Mines and Energy Alexander Silveira announced on the 18th local time that Brazil has joined the "OPEC+" composed of members of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers. Silveira said that OPEC+ is an important platform to help Brazil realize its strategic vision, and joining OPEC+ is not inconsistent with fulfilling environmental commitments, but will also promote environmental protection and economic and social development. "This is a historic moment for Brazil and its energy sector, which will open a new chapter of dialogue and cooperation in the energy sector." Silveira also announced on the same day that Brazil will join the International Energy Agency and the International Renewable Energy Agency.

2. The average wholesale price of rice in Japan rose by nearly 70% year-on-year in January

According to data released by the Ministry of Agriculture, Forestry and Fisheries of Japan on the 19th local time, the average wholesale price of various brands of rice in Japan in January was 25,927 yen per 60 kg of brown rice (about 1,244 yuan), an increase of 10,569 yen or 69% over the same period last year.

3. UK inflation has reached a 10-month high, complicating the BOE's interest rate path

The Bank of England's position is further complicated by the fact that annual inflation in the UK reached its highest level since March last year. Earlier, the Bank of England said it would cut interest rates gradually due to a weak outlook for economic growth. The Office for National Statistics reported on Wednesday that the CPI rose 3.0% in January from a year earlier, up from 2.5% in December, while economists had expected annual inflation to rise to 2.8%. This means inflation is further above the central bank's 2% target, suggesting that it will be harder for the Bank of England to lower interest rates in hopes of boosting the economy. At its most recent meeting in early February, the Bank of England cut its benchmark interest rate to 4.5%, and Governor Bailey said it would take a "gradual and cautious" approach to rate cuts going forward.

4. South Korea is reported to be building the world's largest AI data center

South Korea is reportedly building the world's largest artificial intelligence (AI) data center. The data center will have a power capacity of 3 gigawatts, about three times the size of the Stargate data center, and will cost up to $35 billion. The project is being led by Stock Farm Road Investment Group, co-founded by LG founder grandson Brian Koo and investor Amin Badr Eldin.

5. JPMorgan Chase & Co. upgrades Singapore equities to overweight in favour of retail and property stocks

JPMorgan Chase & Co. upgraded Singapore equities to "overweight", citing government support for the market, high dividend yields and fiscal room to cushion the impact of an external slowdown. Analysts at the bank said we believe that Singapore's support for households and businesses should keep economic activity strong, while investment in innovation and a boost to the stock market will bring new growth opportunities. Strategists at JPMorgan Chase & Co. wrote that the budget should benefit property developers given that there are no "new cooling measures" introduced. They said retail owners should see an increase in supermarket sales from government consumption vouchers. Strategists at JPMorgan Chase & Co. said they still prefer banks and industrials, while remaining selective on REITs. Their optimistic target for the Straits Times Index is 4200 points, implying a 7% upside from current levels.

Domestic Macro Economy Index