Core Viewpoint - The recent measures aim to promote the high-quality development of offshore bonds in Shanghai's free trade zone, enhancing international competitiveness and expanding financing channels for Chinese enterprises abroad and in Belt and Road Initiative countries [1][2]. Group 1: Development and Significance - The development of offshore bonds is part of the eight initiatives announced by the People's Bank of China Governor Pan Gongsheng to support Shanghai's international financial center construction [1]. - The measures are expected to facilitate overseas financing for Chinese companies and create conditions for foreign investors to allocate RMB and multi-currency assets, thereby strengthening Shanghai's position in the global financial system [1]. Group 2: Issuance and Investment Rules - The measures specify that eligible issuers include foreign-registered financial and non-financial enterprises, non-legal entities, sovereign institutions, international organizations, and overseas subsidiaries of domestic companies [2]. - Investment entities include foreign-registered financial and non-financial enterprises, sovereign wealth funds, and international organizations, as well as overseas subsidiaries of domestic companies [2]. Group 3: Currency and Fund Utilization - The measures encourage the use of RMB while accommodating the foreign currency needs of issuers [3]. - Funds raised through offshore bonds must comply with management regulations and primarily support overseas project financing, with provisions for the free remittance of funds abroad [3]. - Issuers are required to adhere to international practices for information disclosure, and a monitoring mechanism will be established to ensure compliance with anti-money laundering and anti-terrorism financing regulations [3].

Group 1: AI and Financial Innovation - The Bank of China Shanghai Branch has launched a comprehensive financial support plan for the AI industry, committing to provide no less than 100 billion yuan over the next five years to meet the financing needs of various entities in the AI sector [2] - The plan focuses on key areas such as computing power supply, algorithm development, and data elements, aiming to guide financial resources to these critical segments [2] - The bank is also expanding application scenarios by supporting six core areas: AI in finance, manufacturing, education, healthcare, cultural tourism, and urban governance [2] Group 2: Shipping Industry Support - The Bank of China and China Insurance have jointly released an action plan to support the construction of Shanghai as an international shipping center, addressing key challenges in shipping safety, convenience, and green transformation [3] - The plan includes ten specific action measures aimed at enhancing the shipping industry's capabilities and services [3] - The Shanghai Branch is leveraging its cross-border financial service expertise to create a dedicated cross-border financial service system for ship management enterprises [3] Group 3: Offshore Bond Issuance - The Bank of China supported the issuance of the world's first public offshore bond in the Shanghai Free Trade Zone, with a total scale of 200 million yuan, marking a significant step in promoting high-level financial openness [4] - This offshore bond strictly adheres to international standards and principles, allowing foreign entities to issue bonds and attract international investors [4] - The Shanghai Branch is committed to enhancing the competitiveness and influence of Shanghai as an international financial center through innovative financial product services [4]

Core Viewpoint - The People's Bank of China announced eight policy measures to be implemented in Shanghai, aimed at enhancing financial services and promoting the use of digital currency [1] Group 1: Policy Measures - Establishment of an interbank market trading report database [1] - Creation of an international operation center for digital RMB [1] - Formation of a personal credit reporting agency [1] - Launch of a comprehensive reform pilot for offshore trade finance services in the Lingang New Area of Shanghai [1] Group 2: Financial Innovations - Development of offshore bonds in the free trade zone [1] - Optimization and upgrading of free trade account functions [1] - Implementation of innovative structural monetary policy tools in Shanghai as a pilot [1] - Collaboration with the China Securities Regulatory Commission to promote RMB foreign exchange futures trading [1]

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]

Core Viewpoint - The People's Bank of China (PBOC) emphasizes the development of "free trade offshore bonds" as part of eight major financial opening measures announced by Governor Pan Gongsheng at the 2025 Lujiazui Forum, aiming to address debt rollover needs and support enterprises involved in the Belt and Road Initiative [2][3] Group 1: Development of Free Trade Offshore Bonds - "Free trade offshore bonds" are defined as bonds issued to domestic and foreign institutional investors with free trade accounts within the free trade zone, allowing issuers to be from domestic, free trade zone, or foreign entities, and can be denominated in both RMB and foreign currencies [3] - The issuance of these bonds, also known as "pearl bonds," began in 2016 with a successful issuance of 3 billion RMB in local government bonds, marking the inception of the bond market in the Shanghai Free Trade Zone [3] - The market for free trade offshore bonds saw a significant increase in issuance, surpassing 100 billion RMB for the first time in 2022, and by mid-2023, the issuance scale had already exceeded twice that of the entire previous year, with city investment companies accounting for 77% of the market [3][4] Group 2: Regulatory Environment and Market Concerns - Concerns about potential defaults have arisen due to the rapid growth of free trade offshore bonds, leading to stricter regulations that limit issuance to enterprises within the free trade zone and foreign entities [4] - In May 2023, regulatory guidance restricted banks to only invest in bonds issued by enterprises within the free trade zone, resulting in a significant decrease in new issuances [4] Group 3: Financing Opportunities for City Investment Companies - The PBOC's push for free trade offshore bonds is seen as a response to the need for debt rollover and a way to provide stable, diversified RMB financing channels for enterprises involved in the Belt and Road Initiative [5] - City investment companies facing challenges in domestic financing and USD bond issuance may find new financing options through free trade offshore bonds, provided they have overseas infrastructure project assets or can rely on overseas income for repayment [6] - Despite regulatory tightening, the market for city investment companies' offshore bonds showed resilience, with a significant increase in issuance expected in 2024, driven by the need to address domestic funding gaps [7]

Core Viewpoint - The People's Bank of China announced eight significant financial policies aimed at enhancing the financial system, promoting digital currency, and supporting international trade and investment. Group 1: Financial Market Enhancements - Establishment of an interbank market trading report database to collect and analyze trading data across various financial sub-markets, aiding financial institutions and regulatory oversight [1] - Creation of a digital RMB international operation center to facilitate the internationalization of digital currency and support financial market innovation [1] Group 2: Credit and Trade Innovations - Establishment of a personal credit institution to provide diversified credit products, improving the social credit system [2] - Launch of a comprehensive reform pilot for offshore trade finance services in the Shanghai Lingang New Area to support offshore trade development [3] Group 3: Financing and Investment Facilitation - Development of offshore bonds following international standards to expand financing channels for enterprises involved in the Belt and Road Initiative [3] - Optimization of free trade account functions to enhance efficient capital flow between quality enterprises and foreign funds, promoting cross-border trade and investment [4] Group 4: Monetary Policy Innovations - Implementation of structural monetary policy tool innovations in Shanghai, including blockchain credit refinancing and cross-border trade refinancing initiatives [4] - Collaboration with the China Securities Regulatory Commission to advance RMB foreign exchange futures trading, improving the foreign exchange market product offerings [4]

Core Viewpoint - The People's Bank of China announced the development of offshore bonds for free trade, aiming to enhance financing channels for enterprises involved in the Belt and Road Initiative and improve the functionality of free trade accounts [1] Group 1 - The initiative follows the principle of "two ends outside" and adheres to international standards and rules [1] - The goal is to facilitate efficient capital flow between high-quality enterprises and foreign funds [1] - This move is expected to enhance the level of liberalization and convenience in cross-border trade and investment [1] Group 2 - The development of offshore bonds is part of efforts to support Shanghai's high-level opening up to the outside world [1] - The optimization of free trade account functions is aimed at better serving enterprises engaged in international trade [1]