Mainland China has optimized the management of QFII and RQFII cross-border funds to improve the quality of capital account opening.
Recently, the People's Bank of China and the State Administration of Foreign Exchange jointly issued a notice revising the "Regulations on the Management of Investment Funds in Securities and Futures by Overseas Institutions Investing in China", further optimizing the cross-border fund management of Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII). The regulations will take effect on August 26, 2024. The main contents of the newly revised regulations include: further simplifying business registration procedures; further optimizing account management; further improving exchange management; and unifying the foreign exchange risk management of QFII/RQFII and the direct access of the interbank bond market (CIBM) with banks.
Express News | The review results of the semi-annual index of the China Securities HS H-Share Smart Index for Shanghai-Hong Kong Stock Connect AH Shares have been released.
Hang Seng Index rose 28 points in half a day, with electronic related stocks being popular. Eastbuy fell 21%.
The US economy grew better than expected in Q1. The Dow rose more than 500 points the night before (25th) and closed up 81 points or 0.2%. Hong Kong stocks rebounded with the external market in the morning, and the Hang Seng Index opened high with 74 points, rose 224 points in the initial stage, saw 17,229 points and then fell back. It had previously fallen as much as 80 points to 16,924 points and then rose 28 points or 0.17% in the morning and reported 17,033 points. The national index fell 4 points or 0.1%, reported 6,012. The Hang Seng Technology Index rose 22 points or 0.7%, reported 3,443. The total turnover of the market in half a day was 60.193 billion yuan. The net inflow of Shanghai, Shenzhen and Hong Kong Stock Connect transactions was 2.42 billion and 14.88 billion respectively.
Market Chatter: Hong Kong Bourse Reviewing 106 IPO Applications
HSBC Research: Lowering deposit rates for domestic banks is a surprise. Preferential construction bank (00939.HK), industrial and commercial bank (01398.HK), Bank of China (03988.HK), China Merchants Bank(03968.HK) and HKEX (00388.HK).
HSBC Research has published a research report indicating that major banks in mainland China have recently lowered deposit rates, causing surprise. Although current deposit rates are already low, there is still room for further reduction, and the reduction in interest rates for fixed-term deposits of 2 to 5 years exceeds the reduction in LPR. Therefore, it is expected that the cost of transferring the reduction in LPR to deposit costs may increase from the originally expected 25% to close to 50% to 100%. Assuming a transfer rate of 50%, the bank's net interest margin (NIM) is expected to be affected by approximately 1 to 2 basis points, or a reduction in profit of 1% to 2.3%. If the transfer rate is 100%, the impact on the bank's NIM and profit will be more severe due to a greater proportion of deposit balances subject to the reduced interest rates.
Hang Seng Index fell by 306 points, Meituan dropped more than 5%, and resource and energy stocks were weak.
The USD/JPY exchange rate fell to the edge of 152, triggering a global stock market decline due to arbitrage trading and unwinding. As for the Hong Kong stock market, the Hang Seng Index opened low by 50 points and the decline expanded. It fell to 16,964 points after a drop of 346 points, and closed at 17,004 points, a decrease of 306 points or 1.8% for the whole day. The national index fell 125 points or 2.1%, closing at 6,016 points. The Hang Seng Tech Index fell 69 points or 2%, closing at 3,421 points. The total turnover of the market for the day was HKD 105.734 billion, with a net outflow of RMB 0.36 billion and 1.64 billion in the southbound trading under the Shanghai and Shenzhen-Hong Kong Stock Connect. The chip equipment manufacturer ASMPT (00522.HK) fell after its performance announcement yesterday.