Market Overview - The A-share market experienced a collective decline in the three major indices, with the Shanghai Composite Index down 0.21%, the Shenzhen Component Index down 0.7%, and the ChiNext Index down 1.25% as of midday trading [1] - The total market turnover was 783 billion yuan, a decrease of 95.7 billion yuan compared to the previous day, with over 2,200 stocks declining [1] Sector Performance - The electricity sector saw significant gains, with stocks like Huayin Electric (600744) achieving a five-day streak of gains, and other stocks such as Shaoneng Co. (000601) and New Zhonggang (605162) also performing well [3] - The real estate sector experienced a morning surge, with stocks like Yucheng Development (000514) and Shihe Co. (000014) hitting the daily limit [3] - The cross-border payment and multi-financial sectors showed volatility, with several stocks like Xinyada (600571) and Jingbeifang (002987) reaching the daily limit [3] - The CPO concept stocks collectively adjusted, with stocks like Zhongji Xuchuang (300308) and Tianfu Tongxin (300394) dropping over 4% [3] Notable Stocks - Stocks with three consecutive daily limits include Jin'an Guoji (002636) and Huayin Electric [4] - Stocks with two consecutive daily limits include Shaoneng Co., Jiu Ding New Materials (002201), and Xinyada [5] Hot Sectors - The e-commerce sector led with 13 stocks hitting the daily limit, with a maximum of three consecutive daily limits [6] - The cross-border e-commerce sector had nine stocks hitting the daily limit, with a maximum of four consecutive daily limits [7] - The energy storage sector also performed well, with nine stocks hitting the daily limit and four achieving three consecutive daily limits [8] Key Industry Insights - The electricity sector is experiencing increased demand due to high temperatures and economic growth, with the national maximum electricity load reaching 1.465 billion kilowatts, a historical high [11] - The cross-border payment sector is set to enhance its global competitiveness following the People's Bank of China's new draft rules for the Renminbi Cross-Border Payment System, which aims to improve flexibility and attract more global participants [12] - The football sector is gaining attention with the ongoing Jiangsu City Football League, and the export of sports goods from Jiangsu reached 6.8 billion yuan in the first five months of the year, a year-on-year increase of 7.8% [13]

Core Viewpoint - The upgrade of the CIPS regulatory framework by the People's Bank of China is expected to enhance the global competitiveness of the Renminbi Cross-Border Payment System (CIPS) [1] Group 1: Regulatory Changes - The People's Bank of China has released a draft of the "Rules for the Renminbi Cross-Border Payment System," which strengthens the global competitiveness of CIPS [1] - The new regulations grant operating institutions greater management autonomy and risk responsibility, improving the system's flexibility and market responsiveness [1] Group 2: Market Expansion and Compliance - The document outlines the potential for CIPS to expand multi-currency operations and align with international anti-money laundering standards [1] - The integration of new technologies is also highlighted, which is expected to attract more global participants and enhance international credibility [1]

Core Viewpoint - The introduction of new business rules aims to better meet the development and scale expansion needs of the Cross-border Interbank Payment System (CIPS), enhancing its global influence and supporting the internationalization of the Renminbi [1][2]. Summary by Sections Event - On July 4, the People's Bank of China released a notice for public consultation on the draft business rules for the CIPS [2]. - The CIPS is a wholesale payment system specifically for Renminbi cross-border payment and clearing, providing secure, efficient, convenient, and low-cost fund clearing services [2]. Business Rule Changes - The number of financial institutions participating in CIPS has grown from over a hundred in its early days to over a thousand by May 2025, necessitating updates to the original rules [2]. - The original rules were too detailed and restrictive, particularly regarding account management and fund settlement, which limited flexibility for technological upgrades and business innovation [2]. Participant Admission and Custodian Bank Requirements - The new rules relax the admission criteria for direct participants, removing specific requirements and allowing the operating institution to adjust participant management dynamically [3]. - The custodian bank requirement has been broadened from "domestic banks" to "qualified direct participants" [3]. - The detailed operational steps for fund injection have been simplified, retaining only the principle of liquidity management for direct participants [3]. Impact on CIPS and Renminbi Internationalization - The policy adjustments are expected to enhance CIPS's global influence and facilitate the internationalization of the Renminbi by attracting more participants and providing a more efficient cross-border settlement option [3].

Group 1 - The event held on June 18 in Shanghai marked the signing ceremony between the Cross-Border Interbank Payment System (CIPS) and five foreign financial institutions, including MOX, Standard Bank, and others, indicating a significant step in cross-border financial cooperation [1][3] - CIPS serves as a crucial financial infrastructure for promoting the internationalization of the Renminbi, providing secure and efficient cross-border clearing services to global participants [3] - As of May 2025, CIPS has 174 direct participants and 1,509 indirect participants, covering over 4,900 legal banking institutions across 187 countries and regions [3] Group 2 - MOX has become the first non-bank financial institution in Macau to obtain direct participant status in CIPS, which is a significant achievement for both parties following their discussions in April 2025 [3] - This partnership is expected to enhance the internationalization of the Macau bond market and facilitate financial services cooperation with Portuguese-speaking countries, creating new opportunities for the development of the Macau bond market [3]