Industry Investment Rating - No relevant information provided Core Viewpoints - The two discount interest policies are an innovative exploration of fiscal and financial collaboration to boost consumption, aiming to support people's consumption needs and form a policy combination with existing subsidies [2] - The Fed may have the possibility to cut interest rates by 50 basis points, and the current interest rate should be 150 - 175 basis points lower [3] Summary by Related Catalogs Hot News - The Ministry of Finance will continue to summarize experience and improve processes for the two discount interest policies, which can work with existing consumer subsidies [2] - By the end of July, M2 balance was 329.94 trillion yuan, up 8.8% year - on - year; M1 balance was 111.06 trillion yuan, up 5.6% year - on - year; M0 balance was 13.28 trillion yuan, up 11.8% year - on - year. Net cash injection in the first seven months was 465.1 billion yuan [2] - China included two EU banks in the counter - measure list and prohibited domestic organizations and individuals from trading and cooperating with them [2] - In the first seven months, RMB loans increased by 12.87 trillion yuan. Household loans increased by 68.07 billion yuan, with short - term loans decreasing by 38.3 billion yuan and medium - and long - term loans increasing by 1.06 trillion yuan [2] - The US Treasury Secretary believes the Fed should cut interest rates, and there is a possibility of a 50 - basis - point cut [3] Key Focus - Key commodities to focus on include coking coal, rapeseed meal, coke, soda ash, and caustic soda [4] Night - session Performance - The night - session performance shows different sector changes, with precious metals up 26.41%, non - ferrous metals up 21.22%, coal - coking - steel - ore up 15.30%, etc [4] Sector Positions - The chart shows the position changes of commodity futures sectors in the past five days [5] Performance of Major Asset Classes - Different asset classes have various performance indicators. For example, the Shanghai Composite Index had a daily increase of 0.48%, a monthly increase of 3.09%, and an annual increase of 9.90%; WTI crude oil had a daily decrease of 0.71%, a monthly decrease of 9.39%, and an annual decrease of 12.79% [6] Trends of Major Commodities - Charts display the trends of various commodities such as the Baltic Dry Index, CRB Spot Index, WTI crude oil, London spot gold, LME copper, etc [7]

Core Viewpoint - The newly announced loan interest subsidy policies aim to stimulate consumer spending and support service industry operators by providing a 1% annual interest subsidy, with the central government covering 90% of the subsidy costs for one year [1][13]. Group 1: Policy Overview - The two subsidy policies target loans issued to eight major service sectors and personal consumption loans used for actual consumption [1]. - The policies will undergo an evaluation after their expiration to consider extending the duration or expanding the support scope [1][15]. - The subsidy is designed to support legitimate borrowing and consumption behaviors, excluding any non-consumption or arbitrage activities [2][5]. Group 2: Application Conditions - For personal consumption loans, the key condition is that the loan must be used for genuine consumption, with a maximum subsidy of 500 yuan per transaction, and up to 1000 yuan for multiple transactions under 50,000 yuan [5][9]. - Service industry operators can apply for the subsidy if they use the loan for operational activities, with eligibility extending from March 16 to the end of the year [6][7]. Group 3: Implementation and Management - The application process is simplified, with no additional actions required from borrowers; the lending institutions will handle the subsidy applications [4][9]. - Financial regulatory bodies will monitor the implementation of the policies, ensuring compliance and effective use of funds [17][19]. - The policies are expected to enhance the credit supply to the service sectors, particularly in areas closely related to daily life, such as hospitality, healthcare, and education [17][21]. Group 4: Economic Impact - The policies are anticipated to significantly boost service consumption, which has been growing rapidly, with a projected contribution rate of 63% to overall consumer spending growth by 2024 [11][19]. - The collaboration between fiscal and financial policies is expected to create a leveraging effect, potentially increasing the amount of loans directed towards consumer spending [13][20].

Market Overview - Major global stock indices showed mixed performance, with the Dow Jones Industrial Average rising by 1.10% to 44,458.61 and the Nasdaq increasing by 1.39% to 21,681.9 [2] - The S&P 500 also saw a gain of 1.13%, closing at 6,445.76, while the German DAX fell by 0.23% to 24,024.78 [2] - In Asia, the Nikkei 225 experienced a significant increase of 2.15%, reaching 42,718.17, while the KOSPI declined by 0.53% to 3,189.91 [2] Economic Indicators - The U.S. Consumer Price Index (CPI) for July showed a year-on-year increase of 2.7%, matching expectations, while the core CPI rose by 3.1%, slightly above the anticipated 3% [5] - The total U.S. national debt surpassed $37 trillion for the first time, reaching $37,004,817,625,842, indicating a significant fiscal imbalance [6] Corporate Developments - Circle, the first publicly traded stablecoin company, reported a revenue of $658 million for the second quarter, a 53% year-on-year increase, exceeding market expectations [11] - China Unicom reported a revenue exceeding 200 billion yuan for the first half of the year, with a year-on-year growth of 1.5% [15] - Kweichow Moutai announced a revenue of 89.389 billion yuan for the first half of the year, reflecting a 9.10% increase, with a net profit of 45.403 billion yuan, up 8.89% [14] Legal and Regulatory News - Elon Musk's xAI plans to take legal action against Apple, alleging anti-competitive practices in the AI sector [9] - The Chinese government has implemented a fiscal subsidy policy for personal consumption loans, aimed at stimulating consumer spending in various sectors [8]

Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core View of the Report The market trading sentiment is positive due to the influence of the discount policy, some positive mid - year reports, and the increasing expectation of external interest rate cuts. The trading volume of the two markets has rebounded to 2.15 trillion yuan, and the rise of Chinese concept stocks indicates that foreign investors also favor A - shares. With the index reaching a new high and both volume and price rising, it is expected that the sentiment will continue to drive the short - term trend to be strong. However, the recent positive factors are more of a short - term emotional reaction, and a callback after rapid pricing should be guarded against. Taking the CSI 300 index as an example, around 4200 is the first technical resistance level. If there is no breakthrough, investors with positions need to manage risks [4]. 3) Summary by Relevant Catalogs Market Review The stock index continued to rise with increasing volume today, and the small - cap stocks showed stronger performance. The trading volume of the two markets rebounded significantly by 26.9417 billion yuan. In the futures index market, all varieties rose with increasing volume, and the sentiment was optimistic [2]. Important Information - The personal consumer loan discount policy implemented by the Ministry of Finance is the first at the central level and can be regarded as another "national subsidy" in this field [3]. - The "dual discount" policy has a one - year term, and whether to extend it will be studied according to the situation after expiration [3]. Strategy Recommendation An insurance strategy is recommended: hold the spot and buy put options [5]. Futures Index Market Observation | | IF | IH | IC | IM | | --- | --- | --- | --- | --- | | Main contract intraday percentage change (%) | 1.02 | 0.35 | 1.78 | 1.77 | | Trading volume (10,000 lots) | 12.6774 | 6.6685 | 10.6869 | 22.9667 | | Trading volume change compared to the previous period (10,000 lots) | 2.3189 | 0.933 | 2.7828 | 5.5257 | | Open interest (10,000 lots) | 26.6298 | 10.1476 | 22.5209 | 37.1522 | | Open interest change compared to the previous period (10,000 lots) | 1.015 | 0.661 | 1.1324 | 3.2273 | [5] Spot Market Observation | Name | Value | | --- | --- | | Shanghai Composite Index percentage change (%) | 0.48 | | Shenzhen Component Index percentage change (%) | 1.76 | | Ratio of rising to falling stocks | 1.15 | | Trading volume of the two markets (100 million yuan) | 21509.37 | | Trading volume change compared to the previous period (100 million yuan) | 2694.17 | [6]

Group 1 - The Ministry of Finance emphasizes that financial regulatory authorities will incorporate the execution of two interest subsidy policies into daily financial supervision [1] - The Ministry of Finance will collaborate with financial regulatory authorities to ensure that loan processing institutions manage loans properly and protect the legitimate rights of borrowers [1] - Loan processing institutions are required to base credit assessments on the actual needs and credit status of borrowers, and must not use interest subsidy policies to induce consumers to borrow [1]

Core Viewpoint - The Ministry of Finance's Deputy Minister Liao Min emphasized the importance of two interest subsidy policies that work in conjunction with financial policies to stimulate consumer spending and enhance market vitality [1] Group 1: Policy Characteristics - The new interest subsidy policies are designed to leverage public funds to attract more financial resources into the consumer sector [1] - Unlike previous direct fiscal subsidies, these policies aim to channel funds specifically into consumer areas to unlock consumption potential [1] Group 2: Financial Impact - A simple calculation indicates that a 1% interest subsidy could potentially mobilize 100 yuan of loan funds for resident consumption or service supply in the consumer sector [1]

Core Viewpoint - The Ministry of Finance's deputy minister, Liao Min, emphasized the importance of two interest subsidy policies that work in conjunction with financial policies to stimulate consumer spending and enhance market vitality [1] Group 1: Policy Characteristics - The new interest subsidy policies are designed to leverage public funds to attract more financial resources into the consumer sector [1] - These policies aim to activate consumer potential and improve market dynamics by directing funds towards genuine consumption areas [1] Group 2: Financial Impact - A simple calculation indicates that a 1% interest subsidy could potentially mobilize 100 yuan of loan funds for resident consumption or service supply in the consumption sector for every 1 yuan of subsidy [1]

Core Viewpoint - The implementation of interest subsidy policies for personal consumption loans and service industry loans aims to stimulate domestic consumption and enhance market vitality through financial support [2][4]. Group 1: Policy Implementation - Major state-owned banks are actively promoting the organization and implementation of the interest subsidy policy to contribute to domestic consumption potential [1][2]. - The State Council emphasized the need for effective coordination among departments, simplification of procedures, and strict monitoring to ensure the efficient use of funds [2][4]. - The interest subsidy policy is part of a series of measures aimed at boosting consumption since the release of the "Special Action Plan to Boost Consumption" in March [2][5]. Group 2: Bank Responses - Industrial and Commercial Bank of China announced its commitment to market-oriented principles and streamlined processes to implement the policy [2][3]. - China Bank aims to deliver policy benefits directly to consumers and service industry entities through efficient financial services [2][3]. - Agricultural Bank and Postal Savings Bank plan to leverage their extensive networks to reduce consumption credit costs for urban and rural residents [3][5]. Group 3: Economic Impact - The focus on personal consumption loans and service industry loans reflects a macroeconomic adjustment strategy to stimulate demand, particularly in education and healthcare services [4][5]. - The policy is expected to alleviate financing difficulties for small and micro enterprises, which constitute over 90% of market entities, while indirectly promoting employment and income growth [5][6]. - The shift of financial resources from traditional sectors to new consumption-driven sectors aligns with the overall direction of economic transformation and upgrading [5][6]. Group 4: Risk Management - There are concerns about potential fund misallocation, necessitating a comprehensive monitoring mechanism to ensure funds reach intended sectors [6][7]. - Banks are advised to enhance their risk management frameworks, balancing inclusive finance with commercial sustainability [7][8]. - Suggestions include optimizing a tripartite risk-sharing mechanism among government, banks, and insurance, and exploring innovative financial products to stimulate consumption [8].

Core Insights - The four major banks in China are rapidly implementing a personal consumption loan and service industry loan interest subsidy policy in response to the State Council's directives, marking a shift from direct financial support to a mechanism-driven approach for sustainable economic growth [1][2] Group 1: Policy Mechanism - The interest subsidy policy creates a "leverage transmission" mechanism, where fiscal funds do not directly enter personal or corporate accounts but instead lower loan interest rates, encouraging bank credit to flow into consumption and service sectors [1][2] - For consumers, the subsidy effectively acts as a "disguised salary increase," reducing the cost of large purchases by saving 2,000 yuan in interest on a 100,000 yuan loan annually [1] - For small service industry businesses, the reduced financing costs allow for reinvestment in equipment upgrades and employee training, enhancing supply quality [1] Group 2: Economic Impact - The policy addresses two major economic pain points: consumers are hesitant to spend due to rigid expenses and weak income expectations, while small service enterprises face long-standing financing challenges [2] - The dual empowerment from the policy is reshaping economic circulation logic, where improved supply quality through loans can lead to increased consumer spending, creating a positive cycle of "consumption upgrade - supply optimization - re-consumption" [2] Group 3: Banking Sector Transformation - The rapid response from the four major banks is driven by the dual benefits of the subsidy model, attracting quality clients and expanding credit scale while enhancing their inclusive finance brand image [2] - This "policy guidance + market-driven" model contrasts with previous inefficient government subsidies, providing a more sustainable commercial motivation for policy execution [2] Group 4: Long-term Outlook - The financial "national subsidy" serves as a macro tool "stress test," balancing stable growth and risk prevention through interest rate caps and regulatory measures to ensure effective use of fiscal funds [3] - The transformation of the subsidy from a temporary measure to a regular tool for economic adjustment indicates a shift towards a healthier and more resilient economic ecosystem [3]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - Some key commodity futures prices with large gains the previous week significantly declined, such as coking coal and rebar, alleviating the expectation of a rapid rebound in PPI, and government bond yields started to fall from the middle of the week [2]. - The State Council deployed interest subsidies for personal consumer loans and loans to service - sector business entities. If interest - subsidy measures are more used to reduce financing costs, the theoretical necessity of interest rate cuts decreases [2]. - Starting from August 8th, newly issued government bonds and financial bonds will resume VAT collection. After the policy was announced on Friday, government bond yields declined overall, and it may guide the yields of existing government bonds and financial bonds downward [2]. Summary by Directory High - Frequency Data Panoramic Scan - **Food**: The average wholesale price of pork decreased by 0.84% week - on - week, the edible agricultural product price index remained flat week - on - week, and the Shandong vegetable wholesale price index increased by 0.02% week - on - week [11]. - **Other Consumer Goods**: The movie box office revenue increased by 43.31% week - on - week [11]. - **Commodities**: The RJ/CRB commodity price index decreased by 0.61% week - on - week, the LME copper spot price decreased by 1.52% week - on - week, and the LME aluminum spot price decreased by 1.95% week - on - week [11]. - **Energy**: The futures settlement prices of Brent and WTI crude oil increased by 4.09% and 4.12% week - on - week respectively, and the coal inventory at Qinhuangdao Port decreased by 8.23% week - on - week [11]. - **Non - Ferrous Metals**: The LME copper and aluminum spot prices decreased week - on - week, and the copper - gold ratio increased by 0.55% week - on - week [11]. - **Ferrous Metals**: The rebar inventory increased by 2.99% week - on - week, and the rebar price index increased by 4.47% week - on - week [11]. - **Real Estate**: The transaction area of commercial housing in 30 large - and medium - sized cities increased by 6.99% week - on - week, and the total transaction price of land in 100 large - and medium - sized cities increased by 102.13% week - on - week [11]. - **Shipping**: The CCFI composite index decreased by 2.30% week - on - week, and the Baltic Dry Index decreased by 3.13% week - on - week [11] High - Frequency Data and Important Macroeconomic Indicators Trend Comparison - Not elaborated in detail in the given content, only mentions multiple charts showing the relationship between high - frequency data and important macro - indicators [18][21][33] Important High - Frequency Indicators in the US and Europe - Not elaborated in detail in the given content, only mentions charts related to US weekly economic indicators, initial jobless claims, same - store sales growth, etc. [74][76][79] Seasonal Trends of High - Frequency Data - Not elaborated in detail in the given content, only mentions multiple charts showing the seasonal trends of high - frequency data such as the daily average output of crude steel and the production material price index [86][90][95] High - Frequency Traffic Data in Beijing, Shanghai, Guangzhou, and Shenzhen - Not elaborated in detail in the given content, only mentions charts showing the year - on - year changes in subway passenger volume in Beijing, Shanghai, Guangzhou, and Shenzhen [146][148]