1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The US and the EU have reached a 15% tariff rate agreement. The EU will increase its investment in the US by $600 billion, purchase US military equipment, and buy $750 billion worth of US energy products. This will lead to a short - term decline in the US dollar index [15]. - The central bank conducted 789.3 billion yuan of 7 - day reverse repurchase operations. Market sentiment is expected to ease temporarily next week, but risk appetite will be strong in Q3, and there will still be fluctuations in the bond market [3]. - The 10 - department joint issuance of the plan to promote agricultural product consumption aims to boost agricultural product consumption through various measures. The decline in industrial enterprise profits in June has narrowed, and the new kinetic energy industry represented by the equipment industry has seen rapid profit growth [17][18]. - The export data of Malaysian palm oil is poor, and the domestic oil mill operating rate is expected to increase. Steel prices have risen significantly due to the continuous increase in coking coal and coke prices and the relatively strong fundamentals of finished products, but there is a risk of overvaluation [5]. - Polysilicon is expected to correct in the short term, and it is advisable to consider short - selling lightly through options [6]. 3. Summary by Directory 3.1 Financial News and Comments 3.1.1 Macro Strategy (Foreign Exchange Futures - US Dollar Index) - The US and the EU have reached a 15% tariff rate agreement. Trump has the right to restore higher tariff levels if other countries fail to fulfill their investment commitments. The EU hopes to continue discussions on steel and aluminum tariffs with the US. The applicable tariff will be the higher of the "most - favored - nation tariff" or 15%. The short - term market risk preference will moderately recover, and the US dollar index will decline in the short term [13][15]. - Investment advice: The US dollar index will decline in the short term [16]. 3.1.2 Macro Strategy (Stock Index Futures) - 10 departments jointly issued the "Implementation Plan for Promoting Agricultural Product Consumption" to promote agricultural product consumption through various measures. In June, the profits of industrial enterprises above designated size decreased by 4.3% year - on - year, and the decline has narrowed. The new kinetic energy industry represented by the equipment industry has seen rapid profit growth. The US and the EU have reached a 15% tariff agreement, which may set an example for upcoming China - US tariffs. A Politburo meeting will be held this week, and attention should be paid to its statements on the economic work in the second half of the year [17][18][19]. - Investment advice: It is recommended to allocate stock indexes evenly [20]. 3.1.3 Macro Strategy (US Stock Index Futures) - The US and the EU have reached a 15% tariff agreement, but there are still differences in key industry tariffs. The US durable goods orders in June decreased by 9.3% month - on - month, better than the expected - 10.7%. The core data excluding Boeing orders performed well. The US - EU tariff negotiation has accelerated, and the risk of further deterioration of the tariff level has decreased, supporting market risk preference [21][22]. - Investment advice: The trade negotiation is moving in a positive direction, and it will still fluctuate strongly in the short term, but attention should be paid to the risk of correction [22]. 3.1.4 Macro Strategy (Treasury Bond Futures) - The central bank conducted 789.3 billion yuan of 7 - day reverse repurchase operations, with a net investment of 601.8 billion yuan. Market sentiment is expected to ease temporarily next week, and the funds are expected to become looser after the end of the month. However, risk appetite will be strong in Q3, and there will still be fluctuations in the bond market [23]. - Investment advice: It is recommended to cautiously bet on the opportunity of oversold rebound next week. Do not be bearish in the long term, but the market will be volatile in Q3, and it may be too early for allocation buyers to go long at present [24]. 3.2 Commodity News and Comments 3.2.1 Black Metals (Coking Coal/Coke) - The coking coal price in the Linfen market is running strongly. The recent futures price increase is mainly due to macro - policies. The National Energy Administration plans to conduct a verification of coal mine production in key coal - producing provinces, but the actual impact of checking over - production may be limited. The price may return to the fundamentals. The supply of coking coal has recovered partially this week, and the coke price has increased for the third time, with some steel mills accepting the increase [25][26]. - Investment advice: The market sentiment for coking coal is still strong, but the risk is high as the price rises significantly. Pay attention to position management [27]. 3.2.2 Agricultural Products (Soybean Oil/Rapeseed Oil/Palm Oil) - The actual soybean crushing volume of domestic oil mills in the 30th week was 2.2389 million tons, with an operating rate of 62.94%. It is expected to reach 2.3726 million tons and 66.69% in the 31st week. From July 1 - 25, the export of Malaysian palm oil decreased by 9.23% month - on - month. The production of Malaysian palm oil in July is expected to increase, and the inventory will increase significantly. China may export 100,000 - 120,000 tons of soybean oil to India [28][29]. - Investment advice: The data from Malaysia is bearish for palm oil. It is not recommended to short unilaterally. Consider buying put options or waiting for opportunities to go long at low prices. For international soybean oil, focus on US weather and bio - fuel policies. For domestic soybean oil, if exports to India increase, it will support prices [30]. 3.2.3 Agricultural Products (Sugar) - The international sugar price has fluctuated greatly. The expected increase in production in Brazil and India and the rumor of India's export in the 2025/26 season have put pressure on the price. India's sugar export may be unfeasible at current international prices. The sugar mills of Guangxi Nanhua have cleared their warehouses, and the spot price in Guangxi has remained stable with a narrow - range shock. The sugarcane yield in the central - southern region of Brazil has decreased in June [31][33][34]. - Investment advice: The international sugar market is under pressure from supply. The Zhengzhou sugar futures are expected to fluctuate mainly. Pay attention to the resistance level of 5900 yuan [35]. 3.2.4 Agricultural Products (Cotton) - In the first half of 2025, China's cotton product exports increased under pressure. As of mid - July, the pre - sale progress of Brazilian cotton in 2025 was 65%. As of July 17, the weekly net signing of US cotton in the 25/26 season was 30,100 tons, a year - on - year decrease of 54%. The ICE cotton price is expected to be in a low - level shock pattern in the short term [36][37][39]. - Investment advice: The lack of news about increased import quotas in China, tight old - cotton inventory, and high operating rates in Xinjiang spinning mills will support cotton prices in the short term. However, the demand from inland spinning mills is weakening, and the increase in warehouse receipts and the expectation of increased production in the 25/26 season may limit the upward trend of cotton prices [40]. 3.2.5 Agricultural Products (Soybean Meal) - Argentina has lowered the export tariffs on soybeans, soybean meal, and soybean oil. The operating rate of domestic oil mills has remained high. China has stopped purchasing US soybeans since the end of May, and the pre - sale of US new - crop soybeans is significantly lower than the normal level in previous years [41][42]. - Investment advice: CBOT soybeans and soybean meal are expected to fluctuate. Focus on the development of the China - US trade war. Soybean meal inventory will continue to accumulate, and the spot basis will remain weak [42]. 3.2.6 Black Metals (Steam Coal) - Most coal mines in Ordos maintained normal production on July 23, and the coal price was stable with a slight increase. The implementation of the over - production policy and high summer temperatures are expected to keep the coal price strong. The power plant's inventory has decreased slightly, and the coal price is expected to return to around the long - term agreement price of 670 yuan [43][44]. - Investment advice: The coal price is expected to remain strong, and it is expected to return to around 670 yuan, the long - term agreement price [44]. 3.2.7 Black Metals (Iron Ore) - The iron ore production and sales of Mount Gibson in the second quarter decreased year - on - year. Affected by coking coal and coke, the iron ore price has fluctuated strongly, but it has encountered resistance after breaking through $105. The long - term increase in the price center of coking coal and coke will suppress the upside potential of iron ore [45]. - Investment advice: Observe the follow - up of the spot market after the price pull - back. The market sentiment fluctuates greatly, so it is recommended to reduce the position [46]. 3.2.8 Black Metals (Rebar/Hot - Rolled Coil) - The fifth blast furnace of Vietnam's Hoa Phat Group's Dung Quat Steel Complex has been put into operation, increasing the annual production capacity by 5.6 million tons. The total new - signed contract value of the top seven construction central enterprises in the first six months exceeded 5.9 trillion yuan. South Korea will impose temporary anti - dumping duties on hot - rolled steel plates imported from China and Japan. Steel prices have risen significantly, but there is a risk of overvaluation [47][49][50]. - Investment advice: Steel prices will remain strong in the short term. It is recommended to observe cautiously [51]. 3.2.9 Agricultural Products (Corn Starch) - The consumption of corn starch sugar is average, and the operating rate has decreased. The consumption of corn and corn starch has decreased this week [52]. - Investment advice: Starch enterprises may continue to face losses, and the operating rate is expected to remain low. This is not favorable for the rice - flour price difference [53][54]. 3.2.10 Agricultural Products (Corn) - In June 2025, the national industrial feed production was 27.67 million tons, a year - on - year increase of 6.6%. The proportion of corn in compound feed increased by 2.5 percentage points year - on - year. The "anti - involution" policy in the breeding industry may reduce the corn demand in the new year [55]. - Investment advice: The stalemate in the spot market may continue until the new corn is on the market. The 09 contract may weaken in advance. Hold the short positions of new - crop corn and look for opportunities to add positions on rebounds [55]. 3.2.11 Non - Ferrous Metals (Lithium Carbonate) - The Guangzhou Futures Exchange has adjusted the trading limit for the LC2509 contract of lithium carbonate futures. The price of lithium carbonate has increased, and there are rumors about production cuts in some areas. The limit - trading measure is expected to stabilize the market [56][57]. - Investment advice: Before the production cuts are confirmed, there is no upward momentum for the price. Pay attention to the downstream procurement. It is recommended to pay attention to the opportunity of holding inventory and reverse arbitrage [58]. 3.2.12 Non - Ferrous Metals (Copper) - The EU has started monitoring the trade of scrap copper and aluminum. Teck Resources has lowered the production forecast of its Chilean copper mine. Freeport's Indonesian subsidiary has started its new smelter [59][60][61]. - Investment advice: Unilaterally, be cautious about the repeated macro - expectations. The copper price is expected to remain high and fluctuate. It is recommended to observe. For arbitrage, pay attention to the opportunity of domestic - foreign reverse arbitrage [62]. 3.2.13 Non - Ferrous Metals (Polysilicon) - The Guangzhou Futures Exchange has adjusted the trading limit, daily limit, margin, and handling fees for industrial silicon and polysilicon futures. The spot price of polysilicon has increased slightly, but the actual transaction has not changed much. The production of polysilicon is expected to increase in July and August, with a monthly surplus of 100,000 - 200,000 tons [63][64][65]. - Investment advice: The delivery price of polysilicon sets a lower limit for the futures price. However, due to the difficulty of the spot price to keep up with the futures price increase, the short - term price is expected to correct. Consider short - selling lightly through options and look for opportunities to go long after the correction [66]. 3.2.14 Non - Ferrous Metals (Industrial Silicon) - The production and operating rate of industrial silicon in Xinjiang, the Northwest, Yunnan, and Sichuan have shown different trends. The social inventory has decreased, and the factory inventory has increased. The supply is expected to increase with the resumption of production, and the supply - demand gap will narrow in August [67][68][69]. - Investment advice: After the price increase, the basis of industrial silicon has weakened rapidly. Pay attention to the opportunity of short - selling at high prices or selling out - of - the - money call options [69]. 3.2.15 Non - Ferrous Metals (Nickel) - Danantara is considering acquiring the GNI smelter in Indonesia. The nickel price has been strong recently but fell on Friday night. There are different statements about Indonesia's nickel export policy. The price of Philippine nickel ore has decreased, and the price of nickel iron has increased, but the steel mills' purchasing intention is not strong [70][71]. - Investment advice: The nickel price is closely related to macro - sentiment. It is recommended to use options for hedging in unilateral trading. Holders can sell for hedging at high prices [72]. 3.2.16 Non - Ferrous Metals (Lead) - From January to June 2025, the number of electric bicycles recycled and replaced was 8.465 million each. The new national standard for electric bicycles will be implemented on September 1. The overseas macro - situation has limited fluctuations. The supply of primary lead is tight, and the production of secondary lead has increased slightly. The demand from end - users has not improved significantly, but the lead social inventory may turn around [73][74][75]. - Investment advice: In the short term, pay attention to the opportunity of buying at low prices and manage the position well. For arbitrage, it is recommended to observe temporarily [76]. 3.2.17 Non - Ferrous Metals (Zinc) - The port inventory of zinc concentrate has decreased by 860,000 tons compared with last week. The 0 - 3 cash spread of LME zinc has turned negative, but the注销仓单 is still high. The zinc smelting profit may improve in August, and the supply is expected to remain high. The demand from primary processing industries is differentiated, and the social inventory has increased significantly [77][78]. - Investment advice: Unilaterally, the risk is high, and it is recommended to observe. For arbitrage, pay attention to the opportunity of medium - term calendar spread positive arbitrage. It is recommended to observe in terms of domestic - foreign trading [79]. 3.2.18 Energy Chemicals (Carbon Emissions) - On July 25, the closing price of the EUA main contract was 71.34 euros/ton, a 0.65% increase from the previous day and a 2.07% increase from last week. The investment funds reduced their net long positions by 100,000 tons last week. The carbon price is expected to be volatile in the short term [80]. - Investment advice: The EU carbon price will be volatile in the short term [81]. 3.2.19 Energy Chemicals (Crude Oil) - The number of US oil rigs has decreased. The Middle - East oil price has strengthened relative to Brent. The increase in the Middle - East oil export volume is limited. The strong diesel crack spread and EU sanctions on Russia support the Middle - East oil price [82][83]. - Investment advice: The oil price will remain volatile. Pay attention to the OPEC+ meeting and market risk preference [84]. 3.2.20 Energy Chemicals (Caustic Soda) - On July 25, the price of liquid caustic soda in Shandong was slightly adjusted. The supply has increased, and the demand is average. The caustic soda futures price has increased due to the overall positive sentiment in the commodity market, but the increase is limited [85][86]. - Investment advice: The caustic soda valuation is not low, and the speculative demand is difficult to stimulate, resulting in a small increase [86]. 3.2.21 Energy Chemicals (Pulp) - The spot price of imported wood pulp is generally stable, with individual prices increasing slightly. The futures price has continued to rise, but the downstream paper mills' follow - up is not strong, and high - price transactions are difficult [87]. - Investment advice: Due to the "anti - involution" policy, low - valued pulp may be targeted by funds. Investors should pay attention to the risks [88]. 3.

汇市盘初，欧元兑美元EUR/USD小幅上涨0.08%，报1.1755、美元指数DXY下跌0.13%，报97.56。 美元指数 欧元/美元 ...

Core Viewpoint - The article discusses the valuation of global stock indices and U.S. Treasury indices, highlighting the performance of various markets and the impact of currency fluctuations on investment opportunities. Group 1: Market Performance - The global stock market experienced an overall increase this week, with the Asia-Pacific region leading the gains [4][5]. - The A-share market has risen for five consecutive weeks, with the CSI All Share Index increasing by over 2% this week [5]. - The Hong Kong stock market has also seen a rise of over 2% for two consecutive weeks [5]. - The U.S. and European markets also showed overall increases [6]. - The global stock market index has returned to a 3.0 star rating [7]. Group 2: Currency Impact - Renminbi-denominated assets have performed well globally this year, partly due to the appreciation of the renminbi against the U.S. dollar, which has risen by 3% since April [8][9]. - Historical trends indicate that bull markets in A-shares and Hong Kong stocks often coincide with periods of renminbi appreciation, such as the 2020-2021 bull market [10][16]. - The current dollar interest rate cut cycle, which began in September 2024, has led to a depreciation of the dollar, benefiting A-shares and Hong Kong stocks [18]. - Currency fluctuations are not a long-term influencing factor but can create short-term investment opportunities [19][21]. Group 3: Investment Opportunities - The article mentions the availability of global stock index funds in overseas markets, which total over a trillion dollars, but notes the limited options for such funds in mainland China [29]. - The company has launched a "Global Index Advisory Portfolio" that diversifies investments across U.S., UK, Hong Kong, and A-share indices to track global stock market performance [31]. - There are current purchase limits for mainland investors in overseas markets, with a maximum daily purchase of 350 yuan [33].

Core Points - The central exchange rate of the RMB against various currencies shows a mixed trend, with the USD/RMB rate increasing, indicating a depreciation of the RMB [1] Group 1: Exchange Rate Changes - The USD/RMB rate is reported at 7.1419, an increase of 34 points, indicating a depreciation of the RMB [1] - The EUR/RMB rate is reported at 8.4001, a decrease of 76 points [1] - The HKD/RMB rate is reported at 0.90983, an increase of 4.2 points [1] - The GBP/RMB rate is reported at 9.6565, a decrease of 438 points [1] - The AUD/RMB rate is reported at 4.7158, an increase of 6 points [1] - The CAD/RMB rate is reported at 5.2407, a decrease of 101 points [1] - The JPY/RMB rate is reported at 4.8621, a decrease of 210 points [1] - The RMB/RUB rate is reported at 11.1195, an increase of 1539 points [1] - The NZD/RMB rate is reported at 4.3177, a decrease of 27 points [1] - The RMB/MYR rate is reported at 0.5897, a decrease of 17.3 points [1] - The CHF/RMB rate is reported at 8.9906, a decrease of 277 points [1] - The SGD/RMB rate is reported at 5.5949, a decrease of 30 points [1]

Group 1 - The European Central Bank's decision has led to a continued decline in the euro against the US dollar, with a decrease of 0.1%, resulting in an exchange rate of 1.1755 [1]

巴基斯坦外汇协会主席：巴基斯坦情报机构副负责人与外汇公司会面，讨论巴基斯坦卢比贬值问题。 ...

Report Information - Report Date: July 24, 2025 [2] - Report Title: Global Asset Market Performance and Related Trading Data Key Points of Global Asset Market Performance 10 - Year Treasury Yields of Major Economies - On July 23, 2025, yields in the US, UK, France, etc., were 4.383%, 4.634%, 3.299% respectively, with various changes in the latest, weekly, monthly, and yearly periods [3] 2 - Year Treasury Yields of Major Economies - On July 23, 2025, yields in the US, UK, Germany, etc., were 3.850%, 3.876%, 1.839% respectively, with different changes over different time - spans [3] Dollar Exchange Rates Against Major Emerging - Market Currencies - On July 23, 2025, the exchange rate of the dollar against the Brazilian real was 5.520, with a latest change of - 0.81%, and different changes in other time periods [3] Stock Indices of Major Economies - On July 23, 2025, the S&P 500 was at 6358.910, with a latest change of 0.78%, and different changes in weekly, monthly, and yearly periods. Other indices like the Dow Jones Industrial Average, Nasdaq, etc., also had their respective performances [3] Credit Bond Indices - The US investment - grade credit bond index, euro - zone investment - grade credit bond index, etc., had different changes in the latest, weekly, monthly, and yearly periods [3][4] Key Points of Stock Index Futures Trading Data Index Performance - The closing prices of A - shares, CSI 300, SSE 50, etc., were 3582.30, 4119.77, 2801.20 respectively, with corresponding percentage changes [5] Valuation - The PE (TTM) of CSI 300, SSE 50, and other indices were 13.53, 11.44, etc., with corresponding环比changes [5] Risk Premium - The risk premium of the S&P 500 was - 0.68, with a环比change of - 0.07, and the German DAX had its own values [5] Fund Flows - The latest values of fund flows in A - shares, the main board, etc., were - 1079.62, - 851.71, etc., with different 5 - day average values [5] Trading Volume - The latest trading volumes of the Shanghai and Shenzhen stock markets, CSI 300, etc., were 18646.00, 4703.31, etc., with corresponding环比changes [5] Main Contract Basis - The basis of IF, IH, IC were - 10.57, 1.60, - 76.76 respectively, with corresponding percentage changes [5] Key Points of Treasury Futures Trading Data Treasury Futures - The closing prices of T00, TF00, T01, TF01 were 108.520, 105.790, 108.600, 105.875 respectively, with corresponding percentage changes [6] Funding Rates - The R001, R007, SHIBOR - 3M were 1.4268%, 1.5017%, 1.5510% respectively, with corresponding daily changes in basis points [6]

Global Asset Market Performance 10 - Year Treasury Yields of Major Economies - On July 22, 2025, the 10 - year Treasury yields of the US, UK, France, etc. were 4.346, 4.569, 3.263 respectively. The latest changes were - 0.033, - 0.033, - 0.029; weekly changes were - 0.137, - 0.055, - 0.142; monthly changes were 0.050, 0.097, 0.013; and annual changes were 0.162, 0.461, 0.112 [3]. - For Asian and South American economies like Japan, Brazil, and China, on July 22, 2025, yields were 3.834, 6.558, 1.691. The latest changes were - 0.028, - 0.005, 0.014; weekly changes were - 0.108, - 0.043, 0.033; monthly changes were 0.008, 0.050, 0.043; and annual changes were - 0.618, 0.162, - 0.569 [3]. 2 - Year Treasury Yields of Major Economies - On July 22, 2025, the 2 - year Treasury yields of the US, UK, Germany were 3.880, 3.838, 1.808. The latest changes were - 0.030, - 0.027, - 0.013; weekly changes were - 0.020, 0.008, - 0.073; monthly changes were not available for the US, - 0.031, - 0.040; and annual changes were - 0.740, - 0.230, - 1.008 [3]. US Dollar Exchange Rates Against Major Emerging - Market Currencies - On July 22, 2025, the exchange rates against the Brazilian real, South African rand, South Korean won were 5.565, 17.558, 1380.900. The latest changes were - 0.04%, - 0.36%, - 0.13%; weekly changes were 0.15%, - 2.06%, - 0.48%; monthly changes were 0.98%, - 1.15%, 1.59%; and annual changes were 2.50%, - 2.21%, 0.40% [3]. RMB Exchange Rates - On July 22, 2025, the on - shore RMB, offshore RMB, and mid - price were 7.169, 7.171, 7.146. The latest changes were - 0.01%, 0.00%, - 0.09%; weekly changes were - 0.19%, - 0.19%, - 0.05%; and monthly changes were - 1.12%, - 1.39%, 0.20% [3]. Stock Indices of Major Economies - On July 22, 2025, the Dow Jones, S&P 500, and French CAC were 6309.620, 44502.440, 20892.690. The latest changes were 0.06%, 0.40%, - 0.39%; weekly changes were 1.05%, 1.09%, 1.04%; monthly changes were 12.36%, 11.25%, 13.56% [3]. - For Asian and other emerging - market indices like the Nikkei, Hang Seng Index, and Shanghai Composite Index, on July 22, 2025, they were 39774.920, 25130.030, 3581.861. The latest changes were 0.24%, 2.20%, 2.19%; weekly changes were 0.54%, 3.94%, 4.72%; and monthly changes were - 3.44%, 37.37%, 20.55% [3]. Credit Bond Indices - The latest changes of emerging - market investment - grade, high - yield, and US investment - grade credit bond indices were 0.17%, 0.11%, 0.09%. The weekly changes were 0.94%, 0.45%, 0.51%; monthly changes were 0.38%, 0.68%, 1.01%; and annual changes were 4.87%, 6.08%, 9.58% [4]. Stock Index Futures Trading Data Index Performance - On July 22, 2025, the closing prices of A - shares, CSI 300, and SSE 50 were 3581.86, 4118.96, 2792.18. The percentage changes were 0.62%, 0.82%, 0.72% [5]. Valuation - The PE (TTM) of CSI 300, SSE 50, and CSI 500 were 13.53, 11.44, 30.40. The环比 changes were 0.08, 0.03, 0.28 [5]. Risk Premium - The risk premium (1/PE - 10 - year interest rate) of S&P 500 and German DAX were - 0.61, 2.27. The环比 changes were 0.03, 0.07 [5]. Fund Flows - The latest values of A - shares, the main board, and the SME board were - 645.25, - 337.32, not available. The 5 - day average values were - 233.14, - 142.91, not available [5]. Trading Volume - The latest trading volumes of the Shanghai and Shenzhen stock markets, CSI 300, and SSE 50 were 18930.38, 4508.74, 1293.95. The环比 changes were 1930.58, 729.35, 325.56 [5]. Main Contract Basis - The basis of IF, IH, and IC were - 9.16, 4.62, - 84.01. The basis percentages were - 0.22%, 0.17%, - 1.35% [5]. Treasury Bond Futures Trading Data - On July 22, 2025, the closing prices of T00, TF00, T01, TF01 were 108.635, 105.885, 108.695, 105.970. The percentage changes were - 0.03%, - 0.03%, - 0.06%, - 0.02% [6]. - The money market rates of R001, R007, SHIBOR - 3M were 1.3599%, 1.4846%, 1.5490%. The daily changes were - 14.00 BP, - 2.00 BP, 0.00 BP [6]

Group 1: Foreign Exchange Management - The State Administration of Foreign Exchange (SAFE) is exploring integrated management of domestic and foreign currencies, aiming for "one set of rules, one-stop processing" [1] - SAFE reported that foreign investment in domestic stocks and funds increased by $10.1 billion in the first half of the year, reversing a two-year trend of net selling [2] - The resilience of China's foreign exchange market is improving, with enhanced ability to respond to external shocks and a more flexible exchange rate mechanism [3] Group 2: Foreign Investment Trends - Foreign investors' holdings of domestic bonds exceeded $600 billion, indicating a stable macroeconomic environment for investment [2][4] - The proportion of foreign investors holding domestic bonds and stocks is around 3%-4%, with expectations for gradual increases in allocation to RMB assets [4] - As of June 2025, foreign institutions held 4.23 trillion yuan in the interbank bond market, accounting for 2.5% of the total [8] Group 3: Data and Technology Initiatives - The National Data Bureau is promoting high-quality data set construction and has initiated actions to establish data labeling bases in seven cities [6][7] - The bureau aims to create a closed-loop ecosystem for data elements, focusing on market-oriented reforms and the "Artificial Intelligence +" initiative [10] Group 4: Capital Market Developments - Shenzhen is expected to see reforms including the return of Hong Kong-listed companies to the Shenzhen Stock Exchange [9] - The Science and Technology Innovation Board (STAR Market) has supported over 580 "hard technology" companies, raising more than 1.1 trillion yuan in IPO and refinancing funds [11]

Core Viewpoint - The foreign exchange market in China is showing signs of stability and growth, with a significant increase in cross-border payments and a notable rise in the use of the Renminbi for international transactions [1][4]. Group 1: Foreign Exchange Market Characteristics - The scale of cross-border receipts and payments has steadily increased, reaching a total of $7.6 trillion in the first half of 2025, a year-on-year growth of 10.4%, with the Renminbi accounting for 53% of this total [2][4]. - There has been a continued net inflow of cross-border funds, amounting to $127.3 billion in the first half of 2025, with a 46% increase in net inflow in the second quarter compared to the previous quarter [2][3]. - The foreign exchange market is generally balanced, with a bank settlement deficit of $25.3 billion in the first half, but showing a shift to surplus in May and June [3]. Group 2: Market Activity and Trends - The trading volume in the domestic Renminbi foreign exchange market reached $21 trillion in the first half of 2025, reflecting a 10.2% year-on-year increase [3]. - The foreign exchange reserves stood at $3.3174 trillion by the end of June 2025, an increase of $115.1 billion from the end of 2024, indicating a stable reserve position [3]. - The willingness to settle foreign exchange transactions has increased, with bank settlements in June 2025 amounting to 14.9 billion Renminbi, while the total for the first half reached 82.135 billion Renminbi [5][6]. Group 3: Cross-Border Payment Insights - The data on bank customer foreign exchange receipts and payments indicates a healthy cross-border capital flow, with total receipts of 46.485 billion Renminbi and payments of 44.667 billion Renminbi in June 2025 [5][6]. - The increase in foreign currency income from bank customer transactions suggests a growing inclination to settle in Renminbi, reflecting a shift in market sentiment towards the currency [8]. - The net increase in foreign investment in domestic stocks and bonds reached $10.1 billion in the first half of 2025, reversing a trend of net outflows observed in the previous two years [8].