February 29th Macroeconomic Index: Beijing Implements Rent Supervision, Cross-border WMC Version 2.0 Launches in Hong Kong

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Domestic News

1. For the first time, housing rents in Beijing have been under supervision

2. Hong Kong Monetary Management Authority: Cross-border WMC version 2.0 will come into effect on 26 February, hope its improvement and implementation

3. State-owned Assets Supervision and Administration Commission: Accelerate the empowerment of new technologies such as artificial intelligence, and create a number of competitive platforms and enterprises

4. UBS: The net inflow of funds into China's "national team" into A-shares exceeded 410 billion, and the level of holdings was still far below the historical high

International News

1. The Reserve Bank of New Zealand increased its ability to intervene in foreign exchange in January

2. Biden: A new round of ceasefire between Israel and Hamas could begin as early as next Monday

3. Yellen: Inflation is expected to fall for 80% of economies this year

4. Sudan's economy shrank by 40% in 2023 due to armed conflict                                                                                                                                                                                                                                                                                                        

Domestic News

1. For the first time, housing rents in Beijing have been under supervision

The Beijing Municipal Commission of Housing and Urban-Rural Development and the Beijing Municipal Housing Fund Management Center issued the Interim Measures for the Supervision of Housing Lease Deposits and Rents in Beijing (Draft for Comments), which for the first time intends to explicitly include housing rents in supervision. For housing leasing enterprises that collect more than 3 months' rent at a time, they need to deposit the excess rent into a third-party special account, and the tenants themselves can check the amount in the rent supervision account.

2. Hong Kong Monetary Management Authority: Cross-border WMC version 2.0 will come into effect on 26 February, hope its improvement and implementation

According to the Hong Kong Monetary Management Authority, as of the end of 2023, a total of 24 Hong Kong banks have launched cross-border WMC business with their mainland partner banks, with more than 69,000 individual investors opening this account and cross-border remittance exceeding RMB12.8 billion. To further diversify investment options and promote connectivity in the Guangdong-Hong Kong-Macao Greater Bay Area, the revised Implementation Rules for the Cross-boundary WMC Pilot Program in the Guangdong-Hong Kong-Macao Greater Bay Area came into effect on 26 February 2024 (the Effective Date) to provide Greater Bay Area investors who wish to make cross-border investments with more investment options and a better user experience. The Hong Kong Monetary Management Authority looks forward to the full implementation of the WMC version 2.0 and believes that the enhanced measures will further enrich the investment choices of GBA residents and facilitate mutual access between the financial markets of the three places, which will facilitate the industry to jointly explore business opportunities in the GBA.

3. State-owned Assets Supervision and Administration Commission: Accelerate the empowerment of new technologies such as artificial intelligence, and create a number of competitive platforms and enterprises

According to the website of the State-owned Assets Supervision and Administration Commission, on February 26, the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council held an enlarged meeting. The meeting emphasized that it is necessary to find the direction of the enterprise, scientifically arrange the equipment renewal plan, optimize and adjust the business strategy and product structure in a timely manner, promote the coordinated operation of upstream and downstream production, supply and marketing, and development in market segments, emerging demand response, and supply ability improvement. It is necessary to unleash potential, sparing no efforts to increase turnover and profit; accelerate transformation and upgrading, give full play to the role of hub connection, help the promotion of multimodal transport, accelerate the empowerment of new technologies such as artificial intelligence, create a number of competitive platforms and enterprises, and improve the ability and efficiency of serving the entity industry; and it is necessary to promote central enterprises to strengthen supply chain collaboration and information sharing, reduce the comprehensive cost of industrial logistics, and drive upstream and downstream enterprises to reduce costs and increase efficiency.

4. UBS: The net inflow of funds into China's "national team" into A-shares exceeded 410 billion, and the level of holdings was still far below the historical high

UBS released a report saying that China's "national team" has seen a net inflow of more than 410 billion yuan into A-shares through ETF this year, and as a long-term investor, the "national team" is unlikely to reduce its holdings in the short term. According to the report, the net inflow of funds into the CSI 300, CSI 500, CSI 1000 and CSI 2000 ETFs was 75.9%, 12.9%, 6.7% and 4.5% respectively. The holding level of the "national team" this year is still far below the historical high, and there is potential for further increase in extreme market conditions.

International News

1. The Reserve Bank of New Zealand increased its ability to intervene in foreign exchange in January

The Reserve Bank of New Zealand (RBNZ) increased its foreign exchange intervention capacity to NZ$19.65 billion at the end of January, according to data released by the central bank on Tuesday. In addition, the data showed that net purchases of the New Zealand dollar were zero in January. At the end of January, its total foreign exchange assets rose to NZ$26.7 billion from NZ$21.4 billion a month earlier. The bank's net open FX position stood at NZ$7.62 billion.

2. Biden: A new round of ceasefire between Israel and Hamas could begin as early as next Monday

According to foreign media reports, US President Joe Biden said that a new ceasefire agreement between Israel and Hamas will begin as early as next Monday, and the agreement may include exchanging dozens of hostages held in Gaza for hundreds of Palestinian prisoners. Egypt, Qatar, the United States, France and others have acted as intermediaries between Israel and Hamas in the long effort to broker a ceasefire, and negotiations are ongoing. They are seeking a six-week ceasefire and the release of Israeli hostages held in Gaza since the Hamas attack on southern Israel sparked clashes on October 7. When asked when he could start reaching a deal, Biden said on Monday: "I hope that we will have a ceasefire by next Monday." He added: "We're close, but it is not finished yet. According to an unnamed Israeli official, "the direction is positive."

3. Yellen: Inflation is expected to fall for 80% of economies this year

U. S. Treasury Secretary Janet Yellen's remarks today painted a picture of optimism, with prices expected to continue to fall in about 80% of economies this year. Looking ahead, Yellen said that as we look ahead, we remain aware of the risks to the global outlook and continue to carefully monitor economic challenges in some countries, but the global economy remains resilient. In addition, she believes that while there are risks to the outlook, growth in the United States has consistently exceeded expectations.

4. Sudan's economy shrank by 40% in 2023 due to armed conflict

On the evening of the 26th local time, Sudanese Finance Minister Jibril Ibrahim said at a press conference in the port city of Port Sudan in eastern Sudan that Sudan's economy shrank by 40% in 2023 due to the impact of the Sudanese armed conflict, and it is expected to continue to shrink by about 28% in 2024. The federal government's revenue last year was more than 80% lower than in 2022.

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