February 8 Macroeconomic Index:Artificial Intelligence Summit, RMB Trade Financing, Real Estate Tax Adjustment and Global Economic Strategy

Latest Global Major Index

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

Domestic News

1. Zhang Guoqing, Special Representative of President Xi Jinping and Vice Premier of the State Council, will attend the AI Action Summit

2. Hong Kong Monetary Authority: Launched the RMB Trade Finance Liquidity Facility

3. Ministry of Foreign Affairs: China is an active advocate and practitioner of AI global governance

4. The Civil Aviation Administration of China solicited public comments on the "Measures for the Management of Civil Unmanned Aircraft Incident Information (Draft for Comments)".

5. Chongqing will improve the pilot policy of personal housing property tax, and no longer include the purchase of ordinary houses by people outside the city into the scope of taxation

 International News

1. The central banks of China and Indonesia renewed the bilateral currency swap agreement

2. Agency: U.S. tariffs will have a broad impact on multiple assets

3. Canada stated that it should not succumb to protectionist pressure and must strengthen the protection of the core values of the WTO

4. Strategists: The NFP data is unlikely to change the Fed's policy stance

5. Institutions: The Bank of Japan's move closer to the neutral rate will pull up the yield curve

Domestic News

1. Zhang Guoqing, Special Representative of President Xi Jinping and Vice Premier of the State Council, will attend the AI Action Summit

The spokesperson of the Ministry of Foreign Affairs announced that Zhang Guoqing, Special Representative of President Xi Jinping, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, will be invited to France to attend the AI Action Summit from February 9 to 12.

2. Hong Kong Monetary Authority: Launched the RMB Trade Finance Liquidity Facility

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said that the HKMA's RMB Trade Finance Liquidity Facility was launched to support banks in providing RMB trade finance to enterprises. The total quota of the whole arrangement is RMB100 billion, which is about 10% of Hong Kong's RMB cash pool. Banks can borrow funds for a period of one month, three months and six months, which is a maximum of seven days for the HKMA's short-term RMB liquidity, which greatly guarantees the stability of the source of funds. The interest paid by banks to the HKMA is based on the onshore RMB market interest rate plus 0.25%, which on the one hand maintains the market-oriented component of the interest rate, and on the other hand, because the onshore interest rate is generally lower than the offshore interest rate and is relatively stable, it can provide banks with more stable and lower-cost funds, which in turn is conducive to enterprises obtaining trade finance at lower lending rates. And they will be in close contact with the bank in the next two to three weeks, and we will officially launch on February 28.

3. Ministry of Foreign Affairs: China is an active advocate and practitioner of AI global governance

Foreign Ministry Spokesperson Lin Jian held a regular press conference. A reporter asked, the Ministry of Foreign Affairs released the news that Vice Premier Zhang Guoqing attended the Artificial Intelligence Action Summit. Can you elaborate on China's considerations and expectations for the meeting? Lin Jian said that China is an active advocate and practitioner of global governance of artificial intelligence. China looks forward to attending the summit to strengthen communication and exchanges with all parties, build consensus on cooperation, and actively promote the implementation of the UN Global Digital Compact. We also welcome all countries to attend the 2025 World Artificial Intelligence Conference in China, shape a global governance framework for AI with broad consensus, and promote AI for good.

4. The Civil Aviation Administration of China solicited public comments on the "Measures for the Management of Civil Unmanned Aircraft Incident Information (Draft for Comments)".

In order to implement the deployment of the Civil Aviation Administration of China on accelerating the construction of a low-altitude flight safety supervision system, timely and accurately grasp the information and data related to the safe operation of unmanned aircraft, strengthen analysis and utilization, and promote the safe operation of civil unmanned aircraft, the Aviation Safety Office of the Civil Aviation Administration has drafted the "Measures for the Management of Civil Unmanned Aircraft Incident Information", which is now open to the public for comments.

5. Chongqing will improve the pilot policy of personal housing property tax, and no longer include the purchase of ordinary houses by people outside the city into the scope of taxation

Recently, the General Office of the Chongqing Municipal People's Government issued a notice on "Several Policy Measures for Chongqing to Promote Sustained Economic Improvement". In terms of real estate, Chongqing will improve the city's pilot policy of personal housing property tax, and no longer include the purchase of ordinary housing by people outside the city into the scope of taxation; Promote the expansion and efficiency of the "white list" projects of the urban real estate financing coordination mechanism, and support financial asset management companies in acquiring non-performing loans of difficult real estate projects.

International News

1. The central banks of China and Indonesia renewed the bilateral currency swap agreement

With the approval of the State Council, the People's Bank of China and Bank Indonesia recently renewed the bilateral local currency swap agreement, with a swap scale of 400 billion yuan/878 trillion Indonesian rupiah, the agreement is valid for five years and can be extended by mutual agreement. The renewal of the bilateral local currency swap agreement between the two sides will help further deepen monetary and financial cooperation between the two countries, promote bilateral trade and investment facilitation, and maintain the stability of the financial market.

2. Agency: U.S. tariffs will have a broad impact on multiple assets

Benoit Anne, Managing Director of MFS Investment Management, said the U.S. tariffs could have a broad impact on a wide range of assets. Global equity markets have yet to take into account significant policy risks, and tariffs are expected to have a negative impact on stock prices. In terms of fixed income, the latest developments could further weaken the Fed's ability to ease policy in the future, given that US domestic prices are likely to be affected by a one-time adjustment. In addition, Canada's energy producers and Midwest refineries are likely to face challenges from tariffs. Legal uncertainties, possible contagion in other regions, and government negotiations are also being closely watched.

3. Canada stated that it should not succumb to protectionist pressure and must strengthen the protection of the core values of the WTO

According to authoritative sources, on February 6, local time, Canada made a strong statement at the special meeting of the World Trade Organization (WTO) on agriculture, defending trade liberalization and multilateralism, and warning against re-adopting protectionist measures. "We should not succumb to protectionist pressures, nor should we revert to the disorder of the '70s and '80s. We've all been there, and we all know the consequences of it. ”

4. Strategists: The NFP data is unlikely to change the Fed's policy stance

Michael Brown, a strategist at Pepperstone, said in a note that it is hard to imagine a game-changer for the US jobs report from a Fed policy perspective. Fed Chair Jerome Powell noted that policymakers need to see real progress in inflation, or some degree of weakness in the labor market, before they can cut rates again. For the market, the jobs report could be "good news is good news" or vice versa. The market is concerned with the underlying economic situation, not any potential policy implications.

5. Institutions: The Bank of Japan's move closer to the neutral rate will pull up the yield curve

BlueBay, the asset management arm of Royal Bank of Canada, believes that the Bank of Japan is already behind the curve and needs to reach a neutral level between 1%-1.5% in the coming year. This should pull the curve higher, especially the 10-year portion that is currently being artificially depressed by central bank purchases. From July, the Bank of Japan will reduce its purchases of Japanese government bonds. Nonetheless, we believe the portion of the 30-year curve is approaching a fair value of around 2.5%. The 10-year JGB yield rose 4 basis points to 1.304% and the 30-year yield rose 1 basis point to 2.289%, Tradeweb data showed.

Domestic Macro Economy Index