July 10th Macroeconomic Index: MIIT Tightens Photovoltaic Manufacturing Regulations, Shenzhen Proposes Carbon Neutrality Standards

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Domestic News

1. The Ministry of Industry and Information Technology (MIIT) has taken more action to regulate the photovoltaic manufacturing industry, and What kind of signal does the latest draft release?

2. Shenzhen's "Implementation Guide for Carbon Neutrality for Financial Institutions" local standards solicit opinions

3. Shanghai will build a hydrogen-based green energy trading platform

4. Hangzhou Municipal Bureau of Finance issued the "Several Measures to Support the High-quality Development of Low Altitude Economy in Hangzhou (Draft for Comments)"

5. Foshan plans to introduce a policy of withdrawing housing provident fund to pay for the down payment of house purchases

International News

1. Slowdown in Asian demand makes lower European natural gas prices

2. Investment banks: Germany's budget agreement may increase GDP growth by 0.5% next year

3. The Bank of Italy will issue guidelines for crypto assets

4. ECB Executive Board: We should not worry too much about service inflation and wage growth

5. Congestion spreads to Malaysian ports, and many container ships are anchored and waiting

Domestic News

1. The Ministry of Industry and Information Technology (MIIT) has taken more action to regulate the photovoltaic manufacturing industry, and What kind of signal does the latest draft release?

On July 9, the Electronic Information Department of the Ministry of Industry and Information Technology publicly solicited opinions on the standard conditions and announcement management measures for the photovoltaic manufacturing industry (draft for comments). The reporter noted that the 2024 draft for comments will continue to guide photovoltaic companies to reduce photovoltaic manufacturing projects that simply expand production capacity and avoid low-level repeated expansion. However, different from the previous 2021 version, the latest draft of the PV manufacturing industry specification conditions (2024 version) disclosed on the official website has increased the requirements for intellectual property rights. Liu Yiyang, deputy secretary-general of the China Photovoltaic Industry Association, said that at present, leading photovoltaic enterprises can build their own moats through self-developed patents or acquisition of patents, and at the same time, they can also release the trend of the photovoltaic industry attaching importance to patents, and the importance of patents can also avoid or break the situation of low-level duplicate construction. (Yicai)

2. Shenzhen's "Implementation Guide for Carbon Neutrality for Financial Institutions" local standards solicit opinions

The Shenzhen Municipal Local Financial Administration recently issued a notice to solicit opinions on the "Implementation Guidelines for Carbon Neutrality for Financial Institutions". According to the notice, the local standard project "Carbon Neutrality Implementation Guide for Financial Institutions" drafted by Menglang Sustainable Digital Technology (Shenzhen) Co., Ltd. has been compiled. According to the notice, at present, the carbon neutrality of financial institutions is mostly "zero-carbon outlet" or self-operated carbon neutrality, and carbon neutrality in investment and financing activities faces the pain points of difficult access and measurement of carbon data, and clear operational specifications are needed to provide financial institutions with a basis for carbon neutrality implementation. The Implementation Guidelines refer to relevant international and domestic carbon neutrality standard documents, combined with the business characteristics of financial institutions and the local characteristics of Shenzhen, and stipulate the main steps, implementation requirements and operational guidelines for financial institutions to carry out carbon neutrality actions.

3. Shanghai will build a hydrogen-based green energy trading platform

Shanghai Environment and Energy Exchange, Shanghai Lingang Green Innovation Economic Development Co., Ltd. and other two parties signed a MOU to set up a Shanghai hydrogen-based green energy trading platform in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone to further expand the scale of bonded refueling of liquefied natural gas and green methanol. According to reports, the Shanghai Hydrogen-based Green Energy Exchange will build a hydrogen energy industry chain trading service platform integrating green hydrogen, green methanol, green ammonia and other green hydrogen-based products and green hydrogen certificate trading, data services and financial services. In the early stage, the platform will carry out green hydrogen certificate trading and green methanol, green ammonia and green hydrogen trading services based on China, and build an international green hydrogen-based product trading center by going global after the trading model matures.

4. Hangzhou Municipal Bureau of Finance issued the "Several Measures to Support the High-quality Development of Low Altitude Economy in Hangzhou (Draft for Comments)"

The Hangzhou Municipal Bureau of Finance issued the "Several Measures to Support the High-quality Development of Low-altitude Economy in Hangzhou (Draft for Comments)". The draft proposes that for low-altitude economic enterprises newly settled (operating in the city for less than 1 year), in line with the established conditions, they promise that the output value (operating income) included in the city's statistical accounting in the second year will not be less than 20 million yuan, and when they complete the commitment in the second year, they will be given a settlement reward of no more than 10 million yuan according to 5% of the paid-in registered capital.

5. Foshan plans to introduce a policy of withdrawing housing provident fund to pay for the down payment of house purchases

Recently, the Foshan Housing Provident Fund Management Center issued a notice on matters related to the withdrawal of housing provident fund to pay for the down payment of housing purchase (draft for comments) (hereinafter referred to as the draft for comments). According to the draft for comments, the future purchase of a house in Foshan may be able to use the provident fund as a down payment. According to the draft for comments, if an employee or his or her spouse purchases a newly built commercial house within the administrative area of Foshan and uses a housing loan, the employee may apply for a withdrawal of the housing provident fund to pay the down payment for the purchase of the house. According to the draft for comments, an application should be made before the filing of the commercial housing sales contract, and it can be withdrawn once. The withdrawal amount shall not exceed the amount of the down payment for the purchase of the house, and the balance of the personal housing provident fund account shall not be less than 500 yuan after withdrawal.

International News

1. Slowdown in Asian demand makes lower European natural gas prices

European natural gas prices slipped on signs that fuel demand in Asia would decline later in the summer, following an increase in natural gas consumption due to a heat wave. At one point, the benchmark futures price fell 2.2% at one point, hovering around 32 euros per megawatt hour on Tuesday. Europe competes with Asia for LNG supplies, especially in winter and summer. The extreme heatwave in Japan, a major LNG importer, will ease in mid-July. Traders are also assessing supplies from Europe after Hurricane Beryl hit Texas and suspended the U.S. Freeport LNG export facility.

2. Investment banks: Germany's budget agreement may increase GDP growth by 0.5% next year

Berenberg bank analyst Holger Schmieding said in a note that the new budget adopted by German political leaders is a step in the right direction, although it is not the breakthrough needed to achieve sustained and stable growth in line with the eurozone average. He said the agreement combines modest tightness with a number of measures that boost supply potential, including incentives for employees to continue working after retirement, removing barriers to work for immigrants, and providing tax incentives for businesses to invest. But more radical reforms, including easing the debt brakes, more public investment, or reliable military funding, will have to wait for the new government to complete. The German government expects supply support measures to boost economic growth by 0.5 percentage points next year, although this seems overly optimistic.

3. The Bank of Italy will issue guidelines for crypto assets

Bank of Italy Governor Panetta said on Tuesday that the central bank will issue guidelines in the coming days on how to apply the upcoming EU rules on crypto assets to keep the payment system functioning. In a speech to the Italian Banking Institute (ABI), Panetta said that the EU regulation, known as the Markets in Crypto Assets Regulation (MiCAR), considers electronic money tokens (EMTs) and asset-linked tokens (ARTs) to meet the requirements for use as a means of payment. The value of (EMTs) is pegged to the value of a single official currency, while the value of ARTs depends on one or more of the underlying assets. "Our assessment is that the only tools that can be used as a means of payment to fully maintain public trust are EMTs, which can be issued by banks or electronic money institutions," Panetta said. ”

4. ECB Executive Board: We should not worry too much about service inflation and wage growth

ECB Executive Board member Panetta said the ECB should not be overly concerned about stubborn services inflation and strong wage growth. "Market concerns are not unfounded, but they need to be put in perspective, because the price of services tends to move differently than the price of goods," Panetta said. Panetta reiterated at the annual meeting of the Italian Banking Association that recent data and prospects allow for a further gradual reduction in borrowing costs. Previously, while eurozone inflation eased slightly to 2.5% in June, services inflation remained steady at 4.1%. This price pressure has some ECB officials cautious about committing to further rate cuts after cutting them for the first time last month.

5. Congestion spreads to Malaysian ports, and many container ships are anchored and waiting

According to foreign media sources, congestion spread from the port of Singapore to Malaysia, with about 20 container ships moored near Port Klang on the west coast of Malaysia near Kuala Lumpur, causing supply chain disruptions and delays in the transportation of consumer goods. Port Klang and the Port of Singapore are both located in the Strait of Malacca, an important shipping route connecting Europe, the Middle East and East Asia. Ships have avoided the Suez Canal and the Red Sea due to Houthi attacks, and many ships heading to Asia have chosen to make a detour to the southern tip of Africa, meaning they cannot refuel or unload in the Middle East. The ports of Singapore and Tanjung Pelepas also appear to be "full". Tanjung Pelepas Port is an important port in Malaysia, located at the southern tip of Johor, adjacent to Singapore. But there were fewer ships waiting there. Analysts say terminal congestion is likely to continue into August.

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