July 9th Macroeconomic Index: CSSC Reports Strong Profit Growth, NEV Exports Surge, and Housing Rents Stabilize

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Domestic News

1. CSSC: Net profit is expected to increase by about 144.04% to 171.16% year-on-year in the first half of 2024

2. Honorary Vice President of China Real Estate Association: Smart home is a new selling point of housing sales

3. Some provincial market supervision bureaus have been studying the response plan for the chaos of tanker transportation

4. Passenger Car Association: Exports of new energy vehicles in June were 80,000 units, a year-on-year increase of 12.3%

5. China Index Research Institute: Housing rents in key cities stopped falling and stabilized in June

International News

1. The uncertainty of the formation of the new French government has increased and the budget deficit may intensify

2. Due to the depreciation of the yen and the weakening of confidence, Japanese companies are struggling with rising costs

3. The United States and Australia commit to strengthening financial connectivity in the Pacific

4. Germany's exports fell more than expected in May

5. Analysts: The prospect of the Federal Reserve's interest rate cut is expected to boost Asian currencies

Domestic News

1. CSSC: Net profit is expected to increase by about 144.04% to 171.16% year-on-year in the first half of 2024

CSSC announced that the company expects to achieve a net profit attributable to the owners of the parent company in the first half of 2024 between 1.35 billion yuan and 1.5 billion yuan, an increase of about 144.04% to 171.16% year-on-year. The increase in performance was mainly due to the company's focus on its main responsibilities and main businesses, improving production efficiency and improving order structure.

2. Honorary Vice President of China Real Estate Association: Smart home is a new selling point of housing sales

At the 2024 China Smart Home Industry Development Forum held in Zhuhai, Wang Yi, Honorary Vice President of the China Real Estate Association, pointed out: "The application of smart home systems has effectively improved living conditions, promoted consumption upgrading, and is a new selling point for housing sales. "To increase the market share of smart home housing, the society's understanding of the role of smart home is consistent with high expectations, I hope that the relevant units, especially real estate enterprises, attach great importance to the application of smart home technology, leading the improvement of housing product quality." Wang Yi said.

3. Some provincial market supervision bureaus have been studying the response plan for the chaos of tanker transportation

According to reports, there are cases in the tanker transportation industry where food liquids and chemical liquids are mixed and not cleaned, and there are edible oil transportation tankers that have finished transporting coal-to-oil and other items and then shipped edible oil, and the investigation involves Huifu Grain and Oil Group and China Grain and Oil Storage (Tianjin) Co., Ltd. In addition, the report also mentioned that the mixed use of food liquids and chemical liquids and the lack of cleaning have been an open secret in the tanker transportation industry. The reporter learned from the person in charge of the relevant inspection department of a provincial market supervision bureau in the east that the person in charge of the provincial market supervision bureau has given internal instructions to study and solve the problem of tank truck transportation chaos. The testing center under the provincial market supervision bureau has a certain influence in China. This situation may mean that strong supervision of the chaos of tanker transportation is coming. (21 Finance)

4. Passenger Car Association: Exports of new energy vehicles in June were 80,000 units, a year-on-year increase of 12.3%

According to the data of the Passenger Car Association, the production of new energy passenger vehicles reached 933,000 units in June, a year-on-year increase of 26.6% and a month-on-month increase of 5.8%. Wholesale sales of new energy passenger vehicles reached 982,000 units in June, up 29.0% year-on-year and 9.5% month-on-month. Retail sales of new energy vehicles in June totaled 856,000 units, up 28.6% y/y and 6.4% m/m. NEV exports in June totaled 80,000 units, reflecting a 12.3% y/y increase and a 15.2% m/m decline. Exports from January to June 2024 totaled 586,000 units, reflecting a 21.2% y/y increase. (Passenger Federation Branch)

5. China Index Research Institute: Housing rents in key cities stopped falling and stabilized in June

According to the latest data released by the China Index Research Institute today, in June, the effect of the graduation season initially appeared, the demand for housing rental market increased, and the average rent in key cities stopped falling and stabilized, and the average rent of residential buildings in 50 cities was 36.3 yuan/square meter/month, up 0.01% month-on-month, from a decline to an increase from May; It fell by 1.60% year-on-year, an increase of 0.1 percentage points from the previous month.

International News

1. The uncertainty of the formation of the new French government has increased and the budget deficit may intensify

France's already high budget deficit could widen further due to uncertainty over the formation of a new French government, analysts at Commerzbank Research wrote in a note. Forming a new government, they wrote, could be difficult because no political coalition had a majority in parliament. They added that under an "unstable government", it is unlikely that there will be a consolidation of public finances that would address the budget deficit, and the possibility of a suspended parliament cannot be ruled out. They added that new conflicts at the EU level conflicts could also arise due to the anti-EU positions of some factions in the left-wing coalition that won the most seats.

2. Due to the depreciation of the yen and the weakening of confidence, Japanese companies are struggling with rising costs

The Bank of Japan's quarterly report showed that businesses have been grappling with rising costs due to the depreciation of the yen and weakening consumer confidence. A supermarket in Nagasaki Prefecture in southern Japan said it had to cut some of its prices to prevent customers seeking cheaper options from going to discount stores. Another company said that it is considering whether to raise product prices sooner than expected as earnings were hit by the depreciation of the yen. The yen is still trading near a 38-year low against the dollar. The depreciation of the yen means that Japanese companies have to pay more for imported goods such as food and energy. However, the report also said that the local economy is improving in most parts of Japan. The central bank raised the economic rating of two of the country's nine regions, downgraded two and left the rest unchanged. Many analysts expect the central bank to raise short-term interest rates soon amid persistent inflation.

3. The United States and Australia commit to strengthening financial connectivity in the Pacific

Australia and the United States hosted a two-day Pacific Banking Forum in Brisbane on Monday, where financial institutions and officials from the region discussed strengthening banking services. U.S. and Australian officials said Monday that they would work to improve financial connectivity in the Pacific. Pacific island nations are facing challenges as Western banks end long-standing relationships with their peers and some seek to close operations, limiting access to dollar-denominated bank accounts. Australian Assistant Treasurer Stephen Jones said Australia wanted to be the partner of choice in the Pacific, whether in the banking sector or in the defence sector.

4. Germany's exports fell more than expected in May

German exports fell more than expected in May due to weak demand from the United States and European countries, data released by Germany's Federal Statistical Office on Monday showed. Germany's exports fell 3.6% in May compared to the previous month, compared to analysts' forecasts of a 1.9% decline. The foreign trade surplus was 24.9 billion euros ($26.94 billion) in May, compared to 22.2 billion euros in April and 16.8 billion euros in May last year. Statistics Germany reported that exports to EU countries fell by 2.5% in May and exports to countries outside the EU fell by 4.9%.

5. Analysts: The prospect of the Federal Reserve's interest rate cut is expected to boost Asian currencies

Asian currencies consolidated early market but are expected to strengthen as the prospect of a Fed rate cut boosts the appetite of risk assets. The U.S. jobs report, released on Friday, appears to be seen by the market as further evidence that the economy is cooling, according to an international economist in a research note. Economists added that the market seemed to see the report as good news for rate cut expectations.

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