Core Viewpoint - The development of financial infrastructure is crucial for enhancing the competitiveness of Shanghai as an international financial center, with a focus on supporting the real economy, preventing financial risks, and promoting market innovation [1][6][11]. Group 1: Importance of Financial Infrastructure - Financial infrastructure serves as the backbone of the modern financial system, facilitating financial regulation, market openness, resource allocation, risk prevention, and product innovation [1][3]. - A robust financial infrastructure is essential for the high-quality development of financial markets and is a key component of financial system reform [2][4]. Group 2: Role of State-Owned Banks - State-owned banks, particularly the Bank of Communications, play a vital role in enhancing the financial infrastructure and supporting the development of Shanghai as an international financial center [10][11]. - The Bank of Communications aims to leverage its resources to enrich market participant structures and enhance market depth and activity [12][13]. Group 3: Tasks and Requirements for Financial Infrastructure - The elevation of Shanghai's international financial center requires financial infrastructure to provide efficient and diverse services, facilitating global capital allocation and supporting technological innovation [7][8]. - Financial infrastructure must also enhance risk prevention capabilities to ensure financial security and stability, particularly in the context of international financial activities [8][9]. Group 4: International Standards and Governance - The development of financial infrastructure should align with international high standards to participate effectively in global financial governance, promoting both inbound and outbound financial activities [9][14]. - Mechanisms such as "Bond Connect" and "Swap Connect" are examples of initiatives that enhance connectivity between domestic and international markets [9][14]. Group 5: Conclusion - Shanghai is positioned as a key node in the domestic and international economic cycles, with financial infrastructure development being critical for achieving high standards in market systems and facilitating comprehensive financial reforms [16].

Core Insights - In May, foreign institutional investors in China purchased bonds worth 807.1 billion yuan, while selling bonds amounting to 669.7 billion yuan, resulting in a net purchase of 137.4 billion yuan [1] Group 1: Trading Volume - In May, the total trading volume of cash transactions by foreign institutional investors reached 1,476.8 billion yuan, representing a year-on-year decrease of 13% and a month-on-month decrease of 16% [1] - The trading volume accounted for approximately 5% of the total cash market transaction volume during the same period [1]

Group 1 - The People's Bank of China and the China Securities Regulatory Commission jointly announced measures to support the issuance of technology innovation bonds, aiming to enrich the product system and improve the supporting mechanisms for these bonds [1] - The National Interbank Funding Center announced a full waiver of transaction fees for technology innovation bonds in the interbank bond market from 2025 to 2027 [1] - The Central Clearing Company will waive service fees for the issuance of technology innovation special financial bonds from January 1, 2025, to December 31, 2027, and will refund any fees already paid for applicable services [3] Group 2 - The Interbank Market Clearing House will also fully waive interest payment and redemption service fees for issuers of technology innovation bonds starting from May 7, 2025, for an initial period of two years [4] - The Shanghai, Shenzhen, and Beijing Stock Exchanges will reduce transaction settlement costs for technology innovation bonds and continue to waive various fees related to issuance and trading [7] - The announcement encourages local governments to establish risk compensation funds or other supportive measures to provide interest subsidies and government financing guarantees for technology innovation bonds [7]