September 6th Macroeconomic Index: RMB Becomes World's Fifth Largest Reserve Currency, Wuxi Implements New Housing Loan Policy

Daily Macro Economy News

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

Domestic News

1. Wuxi implements "recognizing housing but not recognizing loans"

2. Wang Shouwen: Policy documents on the open and innovative development of trade in services will be introduced to further improve policy measures

3. PBOC Jin Zhongxia: RMB has become the world's fifth largest reserve currency and fifth largest payment currency

4. During the year, 44 companies were "officially announced" to delist

International News

1. U.S. stocks are closed for one day on Monday

2. Tritium was detected for the first time at the discharge outlet of nuclear contaminated water in Japan

3. The growth rate of industrial production in Hanoi, Vietnam in the first half of the year was only 2.3%

4. The Russian Central Bank plans to extend restrictions on foreign exchange cash transactions

Domestic News

1. Wuxi implements "recognizing housing but not recognizing loans"

The Wuxi Municipal Bureau of Housing and Urban-Rural Development , the Wuxi Branch of the People's Bank of China(PBOC), and the Wuxi Supervision Branch of the State Administration of Financial Supervision and Administration have issued notices to optimize the standards for determining the number of housing units in personal housing loans. When resident families (including borrowers, spouses, and underage children) apply for loans to purchase commercial housing, if the family members do not have a complete set of housing in the name of the city, regardless of whether they have used the loan to purchase housing, banking financial institutions will implement the housing credit policy for the first set of housing. This notice shall come into effect from the date of issuance of Jianfang [2023] No. 52 document (August 18, 2023), and if the original policy is inconsistent with this notice, this notice shall prevail.

2. Wang Shouwen: Policy documents on the open and innovative development of trade in services will be introduced to further improve policy measures

On September 3, Wang Shouwen, deputy secretary of the party leading group of the Ministry of Commerce, International Trade Negotiator and Deputy Minister, stated at the Summit Forum on the Development of Trade in Services that a series of policy documents on the open and innovative development of trade in services will be launched to further improve policy measures. The next step is to reasonably reduce the negative list of foreign investment access, accelerate the issuance of the negative list of national cross-border trade in services, and form a system of gradient opening up of China's cross-border trade in services.The Reference Document on Domestic Regulation of Trade in Services will be accelerated and implemented within the framework of the WTO. At the same time, a series of countries such as South Korea and New Zealand will adopt negative lists to promote service trade negotiations.

3. PBC Jin Zhongxia: RMB has become the world's fifth largest reserve currency and fifth largest payment currency

Jin Zhongxia, Director of the International Department of the People's Bank of China(PBC), stated that the internationalization of the RMB has made steady progress, and the RMB has become the world's fifth largest reserve currency, fifth largest payment currency, fifth largest trading currency, and third largest trade and financing currency. Jin Zhongxia introduced that in May 2022, the International Monetary Fund raised the weight of the RMB in the special drawing rights currency basket from 10.9% to 12.28%. Since the beginning of this year, the internationalization of the RMB has made new encouraging progress. And in July, the proportion of the RMB in global payments exceeded 3% for the first time. From the perspective of trade, the proportion of RMB settlement in goods trade from January to July reached 24%, the highest level in recent years. From the perspective of investment, by the end of June, the balance of RMB assets allocated by overseas entities had reached 9.8 trillion yuan.

4. During the year, 44 companies were "officially announced" to delist

With the recent announcement of the planned voluntary delisting of Jingwei Textile Machinery, the A-share delisting team will be further expanded. According to data, apart from the Jingwei Textile Machinery, a total of 44 enterprises were officially declared delisted from January to August this year, and the number is close to that of last year (46 enterprises). However, the overall number of A-shares delisted enterprises is currently very limited, with no more than 200 as of the end of last year. "More in, less out" is still the current situation of the market ecology. Industry insiders point out that behind creating an active capital market, it is essential to continuously improve the "in and out" survival of the fittest mechanism.

International News

1. U.S. stocks are closed for one day on Monday

Affected by the local Labor Day holiday, US stocks were closed for one day on Monday (September 4th). Trading contract in precious metals and WTI under CME ended at 02:30 Beijing time on the 5th ahead of schedule, and trading contract in Brent crude oil futures under ICE ended at 01:30 Beijing time on the 5th ahead of schedule.

2. Tritium was detected for the first time at the discharge outlet of nuclear contaminated water in Japan

After the Fukushima nuclear contaminated water was discharged into the ocean, Japan detected radioactive substance tritium for the first time in seawater sampled near the discharge outlet on August 31. According to a report by Kyodo News Agency on September 1st, the concentration of radioactive substance tritium in the seawater sampled this time was 10 becquerels per liter, which was the first time the minimum limit had been reached after the discharge was initiated on the 24th. In the past 5 years, this figure was originally between 0.4 to 2.8 becquerels per liter. For the significant increase in tritium concentration in just a few days, Tokyo Electric Power acknowledges that this is the impact of the discharge of nuclear contaminated water, but they insist that this concentration is "completely safe".

3. The growth rate of industrial production in Hanoi, Vietnam in the first half of the year was only 2.3%

According to VietnamPlus, in the first half of 2023, the industrial production growth rate in Hanoi, Vietnam was only 2.3%, while this year's target is 7.5% to 8%, which has put greater pressure on the tasks in the last few months of this year. Tran Thi Phuong Lan, Acting Director of the municipal’s Department of Industry and Trade, said that the COVID-19, the instability of the world situation and the monetary tightening policy have had an impact on the global economy. In Vietnam, the economy has been significantly affected, especially in terms of exports and production and business activities. In this context, it is inevitable that various industries in Hanoi will be negatively affected.

4. The Russian Central Bank plans to extend restrictions on foreign exchange cash transactions

Nabiullina, the governor of the Russian central bank, has stated that the bank plans to extend restrictions on foreign exchange cash transactions in September. Nabiulina said it should be clear that the sanctions and restrictions on the issuance of foreign exchange cash by Russian banks have not been lifted. Therefore, the Russian central bank plans to extend the foreign exchange cash trading restrictions originally scheduled to expire on September 9th. At the same time, she pointed out that due to the more attractive exchange quotation compared to last spring, the current foreign exchange cash inflows of Russian banks are greater than the demand.

Domestic Macro Economy Index