Core Insights - The article discusses the recent suspension of the "old-for-new" subsidy program for consumer goods in certain regions of China, particularly in Guangxi, effective from June 20 [1][3]. - Despite some regions pausing the subsidies, the overall consumer spending during the 618 shopping festival remains strong, with significant growth in sales and order volumes reported [4][6]. Subsidy Program Status - The central government has allocated a total of 300 billion yuan for the "old-for-new" subsidy program, with 162 billion yuan already disbursed, leaving 138 billion yuan to be distributed throughout the year [10][11]. - The subsidy program has expanded its categories, now including additional home appliances and digital products, with maximum subsidies reaching up to 2,000 yuan for smart home devices [12][13]. Consumer Behavior and Market Impact - The 618 shopping festival saw a record-breaking total order volume exceeding 2.2 billion, with significant year-on-year growth in various categories, including AI hardware and home appliances [4][14]. - The subsidy program has effectively driven sales, with reported sales figures reaching 1.1 trillion yuan across five major categories by the end of May [15]. Future Outlook - The remaining 138 billion yuan in subsidies will be released in phases, ensuring the continuation of the program until the end of the year [16][19]. - There are concerns regarding the rapid consumption of subsidy funds, prompting some regions to implement measures to control spending and prevent fraudulent claims [19][20].

Group 1 - The Federal Reserve decided to maintain the federal funds rate target range at 4.25% to 4.50%, marking the fourth consecutive meeting without a rate change. Officials expect inflation in the U.S. to worsen in the coming months but anticipate two rate cuts by the end of 2025 [4] - The Fed projects that by the end of 2025, the U.S. inflation rate will rise to 3%, the unemployment rate will increase to 4.5%, and economic growth will slow to 1.4% [4] - Fed Chairman Jerome Powell cautioned against over-reliance on interest rate predictions, emphasizing that forecasts may change based on incoming data, particularly inflation data [4] Group 2 - U.S. stock indices closed mixed, with the Nasdaq up 0.13%, while the S&P 500 and Dow Jones fell by 0.03% and 0.1%, respectively. Circle saw a significant increase of nearly 34%, reaching a new high [5] - Major tech stocks had varied performances, with Intel rising over 3% and Tesla up more than 1%, while Google and Amazon fell over 1% [5] - Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index down 0.82% [5] Group 3 - International gold prices decreased, with spot gold down 0.55% at $3368.47 per ounce, and COMEX gold futures falling 0.6% to $3386.40 per ounce [6] - International oil prices also saw slight declines, with WTI crude oil down 0.22% at $73.11 per barrel, and Brent crude down 0.26% at $76.25 per barrel [7] Group 4 - The Central Financial Committee issued opinions to support the accelerated construction of the Shanghai International Financial Center, aiming for a comprehensive enhancement of its capabilities within five to ten years [10] - The action plan includes promoting the gathering of financial institutions, improving financial services for the real economy, expanding institutional openness, enhancing regulatory standards, and improving policy support [10] Group 5 - The China Securities Regulatory Commission (CSRC) announced the establishment of a growth tier on the Sci-Tech Innovation Board to enhance institutional inclusiveness and adaptability [12] - The CSRC will allow qualified foreign investors to participate in ETF options trading starting from October 9, 2025, aimed at hedging purposes [13] Group 6 - JD.com announced its entry into the hotel and travel industry, offering hotel operators up to three years of zero commission to attract participation in its membership program [23] - The collaboration between ByteDance's Seed team and BYD on lithium battery development aims to leverage AI technology for advancements in battery research [25] Group 7 - Minimax, an AI unicorn, is considering an IPO in Hong Kong, currently in the preliminary preparation stage [27] - Haitian Flavoring and Food Company has seen significant interest in its IPO, with subscription amounts exceeding 400 billion HKD, indicating strong investor confidence [28]

Macro Dynamics - The Chinese Foreign Ministry responded to Trump's announcement of extending the deadline for the sale of TikTok, reiterating that China will handle related issues according to its laws and regulations [1] - As of June 18, 791 Chinese citizens have been safely relocated from Iran, with over 1,000 more in the process of evacuation, supported by Chinese embassies in neighboring countries [2] Financial Institutions - UBS reported a data breach affecting over 130,000 employees, but emphasized that client data remains secure [10] Market Data - On June 18, A-shares saw slight increases, with the Shanghai Composite Index rising by 0.04% and the ChiNext Index by 0.23%, while the total market turnover was approximately 11,910.88 billion [11] - The margin balance in the two markets increased by 53.83 billion, reaching a total of 18,098.63 billion [12] - The Hong Kong stock market closed with the Hang Seng Index down by 1.12% and the Hang Seng Tech Index down by 1.46% [13] Company Dynamics - JD Travel announced a plan for hotel operators to join the "JD Hotel PLUS Membership Program," offering up to three years of zero commission to optimize supply chain costs [15] - Powin, the third-largest energy storage company in the U.S., filed for bankruptcy, with major debts owed to companies including CATL and CIMC [16] - Toyota's chairman saw a 20% increase in total compensation, reaching approximately 1.34 million USD, primarily from bonuses and stock compensation [17] - The launch of a new budget delivery vehicle by Cainiao, priced at 21,800 RMB, aims to enhance logistics capabilities [20] - The live streaming event by Pop Mart on AliExpress attracted 240,000 viewers, significantly boosting the GMV of the trendy toy category by 300% year-on-year [18][19]

Core Insights - The Chinese government has allocated 300 billion yuan for a long-term special bond to support the consumption of old-for-new products, with 162 billion yuan already distributed to local governments, and the remaining funds will be distributed in an orderly manner [1][2] - The new round of subsidies for consumer products has a remaining scale of 138 billion yuan, with the policy for household appliances set to end on December 31, 2025 [2] Group 1: Policy Implementation - Many regions have paused or adjusted the old-for-new subsidy programs, with reports of suspensions in Jiangsu, Hubei, and Chongqing due to system upgrades and funding exhaustion [3][4] - Local governments are responsible for managing the subsidy funds, ensuring timely distribution and safety, with specific limitations on the time and amount of subsidies available in various regions [4][5] Group 2: Market Impact - The suspension of subsidies in various regions is linked to rapid fund utilization and adjustments to local policies, with some areas expanding the scope of eligible products [5][6] - The old-for-new policy has significantly driven sales, with 1.1 trillion yuan in sales generated across five major categories by May 31, 2023, and approximately 175 million subsidies issued to consumers [7]