May 27th Macroeconomic Index: China's Auto Imports Decline, Cross-City Subway Opens in Guangdong

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

Domestic News

1. Premier Li Qiang met with Fumio Kishida

2. New measures for the convenience of the people, Beijing citizens can pay by medical insurance when buying drugs online

3. From January to April 2024, China's auto imports dropped by 8% to 210,000

4. China's longest cross-city subway debuted today across 5 cities in Guangdong

5. State leader Xi Jinping will attend the opening ceremony of the 10th Ministerial Conference of the China-Arab States Cooperation Forum and deliver a keynote speech

International News

1. The Fed's interest rate cut expectations have been twisted again

2. China has become South Korea's largest overseas shopping destination

3. Texas in the United States suffered a tornado and interstate highway traffic was blocked

4. U.S. and U.K. stock markets are closed tomorrow            

5.  Fed officials concluded at their latest meeting that they need to keep interest rates at current levels for longer than previously expected

Domestic News

1. Premier Li Qiang met with Fumio Kishida

Premier Li Qiang met with Japanese Prime Minister Fumio Kishida in Seoul. Li Qiang expressed the hope that the Japanese side will keep its promises, properly handle history, Taiwan and other issues, work together with China in the same direction, and build a constructive and stable China-Japan relationship that meets the requirements of the new era. The issue of discharging nuclear-contaminated water from Fukushima into the sea concerns the health of all mankind, and we hope that Japan will earnestly fulfill its responsibilities and obligations. The two sides agreed to strengthen dialogue and communication at all levels, and convene a new round of China-Japan high-level economic dialogue and high-level people-to-people exchange consultation mechanism at an appropriate time. (CCTV News).

2. New measures for the convenience of the people, Beijing citizens can pay by medical insurance when buying drugs online

A few days ago, Beijing began to pilot online drug purchase by medical insurance in more than 10 pharmacies, and currently supports JD.com to place orders and Alipay medical insurance carries out payment and settlement. The reporter found that after selecting the drug with the words "medical insurance payment" and click "medical insurance payment", it will jump to Alipay, activate and authenticate the electronic medical insurance certificate, and then use the personal medical insurance account to settle. It is reported that the online purchase of drugs for medical insurance is being promoted simultaneously in Shanghai, Guangdong and other places. (CNR)

3. From January to April 2024, China's auto imports dropped by 8% to 210,000

Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), pointed out in a document that China's imported car imports continue to decline from 1.24 million units in 2017 to an average annual rate of about 800,000 units in 2023. From January to April 2024, 210,000 vehicles were imported, down 8% year-on-year, and the downward trend continued. With the continuous growth of China's auto industry, the transformation of electrification has changed the market demand structure, the demand for fuel vehicles continues to shrink, and the demand for imported fuel vehicles has also declined significantly. With the continuous complexity of international relations, it is still necessary to take precautions to establish more import models and maintain a reasonable scale of imported cars.

4. China's longest cross-city subway debuted today across 5 cities in Guangdong

On May 26, the country's first super-Great Intercity Railway across 5 cities was opened in Guangdong, with a total length of 258 kilometers and a maximum speed of 200 kilometers per hour, which is an important traffic artery running through the entire Guangdong-Hong Kong-Macao Greater Bay Area. Use a bus card or mobile phone to scan the code to enter the station, passengers do not need to buy tickets in advance, and they can go as they go.

5. State leader Xi Jinping will attend the opening ceremony of the 10th Ministerial Conference of the China-Arab States Cooperation Forum and deliver a keynote speech

Foreign Ministry spokesperson Hua Chunying announced: As agreed by China and Arab States, the 10th Ministerial Conference of the China-Arab States Cooperation Forum will be held in Beijing on May 30. President Xi will attend the opening ceremony of the conference and deliver a keynote speech. Wang Yi, member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, will co-chair the meeting with President of the Arab side and Mauritanian Foreign Minister Marzouk. The Ministers for Foreign Affairs or representatives of Arab States and the Secretary-General of the League of Arab States will attend the meeting. (Ministry of Foreign Affairs)

International News

1. The Fed's interest rate cut expectations have been twisted again

There are still many uncertainties in the US CPI inflation, such as rent inflation, oil prices and other factors, or make the market more tug-of-war for the Fed's interest rate cut expectations in the future, exacerbating the volatility of the 10Y U.S. Treasury interest rate, if the U.S. non-farm, CPI, and consumption data released next month are weaker than market expectations, the interest rate cut expectation may also come back. As for the U.S. dollar index, although European industrial production has rebounded slightly, it is still much weaker than the Federal Reserve, which can also support the U.S. dollar index to fluctuate at a high level.

2. China has become South Korea's largest overseas shopping destination

With Chinese e-commerce sweeping the world, overseas shopping for Chinese goods has become popular in South Korea. According to recent data released by Statistics Korea, in 2023, the amount of goods purchased by South Korean consumers online from China reached 3.2873 trillion won (about 17.4 billion yuan), a year-on-year increase of 121.2%, and China surpassed the United States for the first time to become South Korea's largest overseas shopping destination. From the perspective of hot categories, the orders are clothing, medical consumables, beverages, food, life and automotive supplies. Korean media pointed out that the distribution and delivery system created by China's e-commerce has greatly improved the consumer experience, and it is expected that the scale of overseas shopping from China will continue to increase.

3. Texas in the United States suffered a tornado and interstate highway traffic was blocked

Interstate highways 35 in Texas was hit by a large tornado, disrupting traffic. Several trucks overturned, and some areas were hit by hailstones the size of baseballs. Local media reported that the tornado also caused the roof of a truck stop along the route to collapse, possibly trapping up to about 150 people. The exact number of casualties is unknown. Currently, rescue efforts are underway.

4. U.S. and U.K. stock markets are closed tomorrow                                                                                                                                                                                                                                                              

On May 26, the U.S. and U.K. stock markets will be closed for one day on May 27 (next Monday) due to the impact of Memorial Day/Spring Bank Holiday; The trading of precious metals and U.S. crude oil futures contracts of CME Group (CME) was suspended at 02:30 Beijing time on the 28th, and the trading of stock index futures contracts was suspended at 01:00 Beijing time on the 28th. Trading in the Brent crude oil futures contract of the Intercontinental Exchange (ICE) ended at 01:30 Beijing time on the 28th.

5. Fed officials concluded at their latest meeting that they need to keep interest rates at current levels for longer than previously expected

Nick Timiraos, the "mouthpiece of the Federal Reserve," writes that Fed officials concluded at a recent meeting that they need to keep interest rates at current levels for longer than previously expected. Last month, U.S. inflation data disappointed for the third month in a row. According to the latest minutes, while officials still believe interest rates are high enough to curb economic activity and bring down inflation, they have hinted that they are less certain about the extent to which policy will be restrictive. An unspecified number of officials mentioned that they are willing to tighten policy further if inflation risks justify it.

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