Core Viewpoint - The People's Bank of China (PBOC) announced eight policy measures to be implemented in Shanghai, aimed at supporting economic recovery and enhancing financial market stability [1][2]. Group 1: Policy Measures - Establishment of an interbank market trading report database to collect and analyze trading data across various financial sub-markets [1]. - Creation of a digital RMB international operation center to promote the internationalization of digital currency and financial market development [1]. - Establishment of a personal credit institution to provide diversified credit products for financial institutions, enhancing the social credit system [1]. - Launch of a comprehensive reform pilot for offshore trade finance services in the Shanghai Lingang New Area to support offshore trade development [2]. - Development of offshore bonds in the free trade zone to expand financing channels for enterprises involved in the Belt and Road Initiative [2]. - Optimization of free trade account functions to facilitate efficient capital flow between quality enterprises and foreign funds [2]. - Innovation in structural monetary policy tools in Shanghai, including pilot projects for blockchain letters of credit refinancing and cross-border trade refinancing [2]. - Collaboration with the China Securities Regulatory Commission to promote RMB foreign exchange futures trading, enhancing the foreign exchange market product series [2]. Group 2: Global Financial Governance - The international monetary system is expected to evolve towards a structure with a few sovereign currencies coexisting and competing, requiring responsible fiscal discipline and financial regulation from sovereign currency countries [3]. - There is a growing global demand for improvements in the cross-border payment system, with emerging payment infrastructures and settlement methods driving efficiency and inclusivity [3]. - International financial organizations need to enhance their governance structures and economic supervision roles to better assess global risks and support economic globalization and multilateral trade [3][4].

Group 1 - The People's Bank of China announced eight policy measures to enhance Shanghai's status as an international financial center, focusing on financial innovation and internationalization [1][2] - Establishing a digital RMB international operation center aims to improve the RMB's position in the international monetary system and facilitate cross-border trade [2][3] - The pilot program for offshore trade finance services in the Shanghai Lingang New Area reflects China's emphasis on international trade and offshore finance, aiming to broaden financing channels [3][4] Group 2 - The introduction of structural monetary policy tools in Shanghai includes innovative pilot projects such as blockchain credit refinancing and cross-border trade refinancing [4][5] - The collaboration with the China Securities Regulatory Commission to promote RMB foreign exchange futures trading is expected to enhance risk management for financial institutions and enterprises [5][6] - The development of a diverse foreign exchange market product suite is anticipated to attract international investors and improve market liquidity [6]

Core Viewpoint - The recent financial policy measures announced at the 2025 Lujiazui Forum signify China's commitment to deepen financial reform and enhance high-level openness, providing strong policy guidance for local financial systems, particularly for regions like Sichuan that are undergoing a critical transformation phase [1][2]. Policy Analysis - The eight financial opening measures reflect a clear signal of China's intention to maintain high-level openness and improve the modern financial system amidst global economic adjustments, focusing on stabilizing market expectations, deepening institutional reforms, and sustaining growth momentum [2]. - Among the eight measures, five are related to foreign finance, while three focus on domestic aspects, indicating a balanced approach to both internal and external financial development [2]. Key Directions - The measures emphasize three key areas: enhancing financial infrastructure for better resource allocation, facilitating cross-border capital flow through innovations like digital RMB and free trade accounts, and enriching risk management tools to improve market stability and service capabilities [3]. - The shift from "tool-based opening" to "systematic opening" is evident, indicating a long-term focus on institutional modernization and functional restructuring [3]. Opportunities for Sichuan - Sichuan, as a major western economic province, needs precise financial support and institutional supply to accelerate the development of strategic emerging industries and promote the specialization of small and medium-sized tech enterprises [4]. - The implementation of structural monetary policy tools and risk-sharing mechanisms for tech innovation can help establish a "Western Financial Innovation Corridor," enhancing financing accessibility for tech enterprises [4]. Recommendations for Sichuan - The establishment of a digital RMB international operation system and cross-border payment mechanisms will support Sichuan's economic interactions with the Chengdu-Chongqing economic circle and RCEP countries, enhancing local industries' efficiency in global value chains [5]. - Strengthening financial infrastructure, such as interbank transaction reporting and personal credit systems, is crucial for improving financial resource allocation and credit transparency in Sichuan [5]. - Innovations in offshore trade finance and offshore bonds can provide new opportunities for Sichuan as a hub for the Belt and Road Initiative, enhancing cross-border financing capabilities and attracting international capital [5].

Core Insights - The convenience and flexibility of RMB cross-border trade financing are expected to improve, promoting the internationalization of the RMB [1][12] - The construction of Shanghai as an international financial center is accelerating [1] Financial Policies and Measures - The People's Bank of China (PBOC) announced eight policy measures at the 2025 Lujiazui Forum, focusing on enhancing financial openness and RMB internationalization [3][4] - Key measures include establishing an interbank market transaction reporting system, a digital RMB international operation center, and offshore trade finance service reforms in the Shanghai Lingang New Area [1][3] Digital RMB Development - The establishment of the digital RMB international operation center aims to facilitate the internationalization of digital RMB and support financial market development [4][7] - The digital RMB can optimize cross-border payment systems by shortening payment chains and improving settlement efficiency [4][12] Offshore Bonds and Trade Financing - The development of offshore trade finance and self-trade offshore bonds is highlighted as a significant opportunity, enhancing the international influence of RMB-denominated bonds [8][9] - The self-trade offshore bond, known as "Pearl Bond," is a key innovation in Shanghai's free trade zone, allowing for both onshore and offshore financing [8] Structural Monetary Policy Innovations - The PBOC proposed to pilot structural monetary policy tools in Shanghai, including blockchain credit refinancing and cross-border trade refinancing [10][11] - These innovations aim to guide funds to key sectors of the real economy and alleviate financing challenges for foreign trade enterprises [11] RMB Foreign Exchange Futures - The PBOC plans to collaborate with the China Securities Regulatory Commission to advance RMB foreign exchange futures trading, enhancing the foreign exchange market product system [13][14] - This initiative is expected to provide better risk management tools for enterprises and reduce reliance on offshore markets [13][14]

Group 1: Research Views - The performance of Chinese assets has been strong since June, with both stocks and bonds rising, pricing in possible policy changes in June. The views on stock index futures and treasury bond futures are both "volatile" [1] - For stock index futures, there are three main factors affecting the market: Sino-US communication may help resolve trade disputes; long - term consumption stimulus policies are attracting attention; and the upcoming Lujiazui Forum may bring news on capital market reform. The PPI data shows low inflation, and the market style may still favor consumption and technology. In Q1, the decline in the revenue growth rate of A - share listed companies has narrowed for three consecutive quarters, net profit has increased by about 4% year - on - year, but ROE is still at the bottoming stage [1] - For treasury bond futures, on June 18, the 30 - year main contract rose 0.09%, the 10 - year and 5 - year main contracts fell 0.01%, and the 2 - year main contract rose 0.01%. After the cross - month, the liquidity has eased marginally. In June, the bond market is unlikely to have a trending market and shows a sideways volatile pattern [1] Group 2: Daily Price Changes - For stock index futures on June 18, IH was at 2,677.4 (down 0.13% from the previous day), IF was at 3,872.2 (up 0.09%), IC was at 5,738.0 (down 0.18%), and IM was at 6,124.2 (down 0.09%) [2] - For stock indices on June 18, the Shanghai Composite 50 was at 2,679.9 (down 0.15% from the previous day), the CSI 300 was at 3,875.0 (up 0.12%), the CSI 500 was at 5,745.9 (down 0.09%), and the CSI 1000 was at 6,135.4 (down 0.10%) [2] - For treasury bond futures on June 18, TS was at 102.54 (unchanged), TF was at 106.28 (down 0.02%), T was at 109.14 (down 0.02%), and TL was at 120.90 (up 0.07%) [2] Group 3: Market News - At the 2025 Lujiazui Forum, the governor of the People's Bank of China announced eight major financial policies, including setting up an inter - bank market transaction reporting library, a digital RMB international operation center, and a personal credit investigation agency; carrying out a comprehensive reform pilot of offshore trade financial services in the Lingang New Area of Shanghai; developing free - trade offshore bonds; optimizing and upgrading the functions of free - trade accounts; innovating structural monetary policy tools in Shanghai; and promoting RMB foreign exchange futures trading [4][5] Group 4: Chart Analysis - **Stock Index Futures**: The report provides charts of the trends of IH, IF, IM, and IC main contracts, as well as the basis trends of corresponding contracts [6][7][8] - **Treasury Bond Futures**: Charts include the trends of treasury bond futures main contracts, treasury bond spot yields, basis, inter - period spreads, cross - variety spreads, and funding rates [12][13][17] - **Exchange Rates**: Charts show the central parity rates of the US dollar, euro against the RMB, forward exchange rates, the US dollar index, euro - US dollar exchange rate, pound - US dollar exchange rate, and US dollar - yen exchange rate [19][20][24]

Group 1: Core Policies Announced - The People's Bank of China (PBOC) announced eight policy measures to be implemented in Shanghai, focusing on enhancing financial infrastructure and services [2][3] - Establishment of an interbank market trading report database to analyze transaction data across various financial sub-markets [2] - Creation of a digital RMB international operation center to promote the internationalization of digital currency [2] Group 2: Support for Financial Center Development - The National Financial Regulatory Administration announced a joint action plan with the Shanghai government to support the construction of an international financial center [4] - Encouragement for innovation in technology finance and cross-border finance, including the establishment of financial asset investment companies in Shanghai [4] - Recent approvals for insurance asset management companies in Shanghai, indicating ongoing support for financial openness [4] Group 3: Innovation in Capital Markets - The China Securities Regulatory Commission (CSRC) introduced the "1+6" policy measures to enhance the STAR Market, including the establishment of a growth tier for technology companies [6][7] - Introduction of six reform measures aimed at improving the listing process and support for high-quality technology enterprises [6][7] - Plans to establish a specialized technology company in Shanghai to enhance asset management services and investment capabilities [7]

Group 1 - The People's Bank of China announced eight policy measures to be implemented in Shanghai to support economic recovery and financial market stability [1][2] - Establishment of an interbank market trading report database to analyze trading data across various financial sub-markets [1] - Creation of a digital RMB international operation center to promote the internationalization of digital currency [1] Group 2 - Development of a personal credit reporting agency to provide diversified credit products for financial institutions [1] - Launch of offshore trade finance service reform pilot in the Lingang New Area to support offshore trade development [1] - Introduction of offshore bonds to broaden financing channels for enterprises involved in the Belt and Road Initiative [2] Group 3 - Optimization of free trade account functions to enhance efficient capital flow between quality enterprises and foreign funds [2] - Innovation in structural monetary policy tools, including pilot projects for blockchain letters of credit refinancing and cross-border trade refinancing [2] - Collaboration with the China Securities Regulatory Commission to promote RMB foreign exchange futures trading [2] Group 4 - Discussion on global financial governance, emphasizing the need for improved international monetary systems and cross-border payment frameworks [3] - Advocacy for stronger economic supervision by international financial organizations to assess global risks and support economic globalization [3] - Commitment to reform and multilateralism to contribute to a fair and resilient global financial governance system [3]

Group 1 - The People's Bank of China announced eight policy measures to enhance Shanghai's status as an international financial center, including the establishment of a digital RMB international operation center and offshore trade financial service reforms [1][2]. - The establishment of the digital RMB international operation center aims to improve the RMB's position in the international monetary system, facilitate cross-border trade, and lower traditional payment costs [2][3]. - The offshore trade financial service reform pilot in Shanghai's Lingang New Area reflects China's emphasis on international trade and offshore finance, aiming to broaden financing channels for enterprises involved in the Belt and Road Initiative [3][4]. Group 2 - The introduction of structural monetary policy tool innovations in Shanghai includes trials for blockchain credit refinancing and cross-border trade refinancing, which are expected to enhance financing support for foreign trade enterprises [4][5]. - The collaboration between the People's Bank of China and the China Securities Regulatory Commission to promote RMB foreign exchange futures trading is anticipated to create favorable conditions for managing exchange rate risks for financial institutions and enterprises [5][6]. - The development of a diversified foreign exchange market product series is expected to attract more international investors, enhancing market liquidity and activity, while also boosting confidence in holding RMB assets among foreign investors [6].

Report Industry Investment Rating - Not provided Core View - The opening of the Lujiazui Forum today announced a series of measures, such as eight financial opening - up initiatives. Overall, the released information had no obvious unexpected highlights, so the market reaction was flat, maintaining a volatile state with no significant change in trading volume. The current economic fundamentals are still in a weak recovery state, lacking a clear trend and having limited driving force for the index. Coupled with the turbulent external situation and the sharp escalation of geopolitical risks in the Middle East, there are still uncertainties overseas, posing significant resistance to the short - term upward movement of the index. However, the management is determined to stabilize the market, so the downside space of the stock index is limited. In the short term, the stock index is expected to fluctuate within a range, waiting for new driving factors [4]. Market Review - Today, except for the CSI 300 Index, all other stock indexes closed down. In terms of capital flow, the trading volume of the two markets decreased by 1.6146 billion yuan. In the futures index market, IF and IC increased in volume and price, while IH and IM increased in price with reduced volume [2]. Important Information - The central bank governor, Pan Gongsheng, announced eight major financial opening - up initiatives, including setting up a trading report repository in the inter - bank market, a digital RMB international operation center, and a personal credit information agency; conducting a comprehensive reform pilot of offshore trade financial services in the Lingang New Area of Shanghai; developing free - trade offshore bonds; optimizing and upgrading the functions of free - trade accounts; piloting innovative structural monetary policy tools in Shanghai; and promoting RMB foreign exchange futures trading in conjunction with the CSRC [3]. - The CSRC announced that starting from October 9, 2025, qualified overseas investors will be allowed to participate in on - site ETF options trading for hedging purposes only [3]. Strategy Recommendation - Hold and wait and see [5] Market Observation Futures Index Market | Index | Main Contract Intraday Change (%) | Trading Volume (10,000 lots) | Trading Volume MoM (10,000 lots) | Open Interest (10,000 lots) | Open Interest MoM (10,000 lots) | | --- | --- | --- | --- | --- | --- | | IF | 0.23 | 10.5667 | 1.0037 | 23.8264 | 0.0486 | | IH | 0.01 | 4.843 | - 0.2249 | 8.1317 | - 0.1259 | | IC | 0.03 | 8.8945 | 0.2632 | 21.9162 | 0.0926 | | IM | 0.10 | 18.8199 | 0.8241 | 32.1988 | - 0.7768 | [5][6] Spot Market | Name | Value | | --- | --- | | Shanghai Composite Index Change (%) | 0.04 | | Shenzhen Component Index Change (%) | 0.24 | | Ratio of Rising to Falling Stocks | 0.52 | | Trading Volume of the Two Markets (100 million yuan) | 1191.067 | | Trading Volume MoM (100 million yuan) | - 1.6146 | [6]

Market Overview - A-shares experienced narrow fluctuations on Wednesday, with major indices showing slight increases, while most individual stocks declined. The Shanghai Composite Index rose by 0.04% to 3388.81 points, and the Shenzhen Composite Index increased by 0.03% [1] - The total trading volume across A-shares was 12.218 trillion yuan, a slight decrease from 12.371 trillion yuan on Tuesday [1] Sector Performance - Bank stocks saw a broad increase, providing some support to the indices despite the decline in most individual stocks. Other sectors that performed relatively well included electronic components, consumer electronics, and wind power [1] - Conversely, sectors with significant declines included pesticides and veterinary drugs, beauty care, small metals, medical services, and household light industry [1] Financial Policy Announcements - The Lujiazui Forum opened on Wednesday, where the central bank governor announced eight financial opening measures, which likely contributed to the rise in bank stocks. The measures include establishing a trading report database for the interbank market and setting up a digital RMB international operation center [1] Market Sentiment and Future Outlook - The chairman of the China Securities Regulatory Commission discussed the Sci-Tech Innovation Board and the ChiNext at the Lujiazui Forum [2] - The U.S. stock market saw a slight decline overnight, with all three major indices dropping by less than 1%. The Hong Kong market experienced a general increase, although the Hang Seng Index fell by 1.12% [2] - The Federal Reserve's two-day interest rate meeting is ongoing, with expectations that there will be no interest rate cuts. Market focus is primarily on the Fed's statements [2] - Many institutions are adopting a defensive stance in their stock recommendations, indicating a cautious market sentiment. The A-share market is expected to continue its sideways trend until there is a noticeable improvement in the economic situation [2]