Breakfast | Wall Street funds pouring into Chinese assets, mainland issues "policy gift package" overnight

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Wall Street funds pour into Chinese assets, with a surge in Chinese concept stock ETFs

"Buy 'everything' in China!" — Wall Street's enthusiasm for Chinese assets is rapidly heating up. Statistics show that from September 23 to September 27, the assets of several overseas-listed Chinese ETFs such as KWEB, FXI, MCHI surged to a new high, with net inflows reaching new highs in nearly a year or even three years.

China introduces more supportive real estate policies

The People's Bank of China, together with the China Banking and Insurance Regulatory Commission, has introduced four financial policies to support the real estate sector. Mainland China's four major state-owned banks announced adjustments to the interest rates of existing individual housing loans and issued detailed operational guidelines on October 12. The Ministry of Housing and Urban-Rural Development: fully promote the stabilization of the real estate market. It is necessary to strictly control the increment of commercial housing construction, optimize the stock, and improve quality. China Real Estate Association: proposes to carry out promotional activities for commercial housing in hundreds of cities.

Significant adjustments to existing housing loans

1. Pricing mechanism for commercial loans: ① Allow changing the housing loan interest rate based on the LPR (Loan Prime Rate) by a certain margin (the margin can be negative).

② For existing housing loans with a margin higher than -30 basis points, they will be uniformly adjusted to not less than -30 basis points and not lower than the lower limit of the new loan interest rate margin currently implemented in the city.

③ Guide commercial banks to carry out a batch adjustment of existing housing loan interest rates by October 31, 2024.

④ Remove the restriction that the shortest period for repricing the housing loan interest rate is one year.

⑤ Market interest rate pricing self-discipline mechanism: Major commercial banks are required to publish operational guidelines for batch adjustment of existing housing loan interest rates no later than October 12.

⑥ After the batch adjustment is completed, both parties can independently negotiate and dynamically adjust the existing housing loan interest rates based on market principles.

1. Minimum down payment ratio for commercial loans: The minimum down payment ratio for commercial individual housing loans no longer distinguishes between first and second homes, and is unified at not less than 15%.

2. Re-lending for affordable housing: The proportion of re-lending by the People's Bank of China to financial institutions is increased from 60% of the loan principal to 100%.

3. Extension of some real estate financial policy deadlines: ① The application period for reasonable extension policies for existing financing such as development loans and trust loans is extended to December 31, 2026. ② The application period for management of operating property loans is extended to December 31, 2026.

4. Shanghai:

① Adjusting housing purchase restrictions: The social security payment period for non-local households is adjusted to 1 year; relaxing housing purchase restrictions in the new area;

② Guiding commercial banks to steadily and orderly reduce existing housing loan rates to near the rates for new loans;

③ The minimum down payment ratio for the first home is 15%, and for the second home is 25%;

④ The exemption period for individual sales of residential properties from value-added tax is adjusted from 5 years to 2 years;

⑤ Timely cancellation of standard and non-standard residential housing, reducing housing transaction costs.

1. Shenzhen:

① Optimizing district-based housing purchase restrictions: Local households can purchase 2 properties and an additional property in areas like Yantian for a total of 3, while non-local households can purchase 1 property;

• Cancel the restrictions on the transfer of commercial housing and serviced apartments: Commercial housing and serviced apartments can be listed for trading after obtaining the real estate ownership certificate.
• Adjust the VAT exemption period for the transfer of personal housing: The VAT exemption period is adjusted from 5 years to 2 years.
• Optimize the policy for personal housing loans: The minimum down payment ratio for the first house is 15%, and for the second house is 20%.
• Carry out a pilot project for the sale of existing houses, gradually increasing the proportion of existing house sales in new land supply.

HKEX soared nearly 28% last week, Goldman Sachs: This time is different

Stimulated by an unexpectedly strong combination of policies, Hong Kong stocks surged by 27.73% last week, reversing the downturn of nearly 5 months, with a year-to-date increase exceeding the S&P. The turnover of the Hang Seng Index exceeded HKD 400 billion, setting a new historical record, with a weekly increase of 21.03%. The Hang Seng TECH Index rose by 20.23%. Goldman Sachs pointed out that due to improved sentiment in the Chinese stock market, the resurgence of Hong Kong IPO activities, and other factors, this rise of HKEX is different from the past. They raised the 12-month average target price of HKEX from HKD 306 to HKD 318, indicating a potential 14% upside for the stock.

NIO China receives new round of strategic investment

On September 29, NIO announced that three existing shareholders of NIO Holdings Limited - Hefei Jianheng New Energy Automobile Investment Fund Partnership (Limited Partnership), Anhui Provincial High-tech Industry Investment Co., Ltd., and Guotou Merchants Investment Management Co., Ltd. signed a strategic investment agreement. The strategic investors will subscribe for new shares of NIO China with RMB 3.3 billion in cash, and NIO will also invest RMB 10 billion in cash to subscribe for new shares of NIO China.

Guo Mingchi: Apple is estimated to mass produce Vision Pro 2 in the second half of 2025

The new M5 version of Apple's Vision Pro 2 is expected to be mass-produced in the second half of 2025, with highlights including the integration of Apple Intelligence and spatial computing. The main hardware change is the processor, which will be upgraded to the M5 (currently M2) with significantly improved computing power.

BYD recalls nearly 100,000 electric vehicles due to safety risks

According to the State Administration for Market Regulation, BYD will recall a total of 96,700 domestically produced Dolphin and Yuan PLUS electric vehicles starting from September 30. The recall involves vehicles produced between 2023 and 2022, due to manufacturing process issues with the electric power steering column controller, which may cause overheating and erosion of capacitors, posing safety risks.

Mark Zuckerberg becomes the world's fourth richest person

The net worth of Meta's CEO Mark Zuckerberg increased by $73.4 billion in 2024, reaching $201 billion, making him the world's fourth richest person.

California Governor vetoes AI safety bill, seeks comprehensive regulatory framework

The SB 1047 bill required developers of large-scale advanced AI models to take preventive measures, such as pre-testing, simulating hacker attacks, installing network security measures, and providing protection for whistleblowers. The media reported that Governor Newsom decided to reject the measure because it only applied to the largest and most expensive artificial intelligence models, while other models remained unregulated

Yonghui Superstores: Founder Zhang Xuansong's shareholding ratio remains unchanged, Pang Donglai will continue to provide assistance in adjustment

Yonghui Superstores announced on the evening of September 28th that there have been no changes in the shareholding ratio of founder and chairman Zhang Xuansong. Yonghui Superstores will continue to learn from Pang Donglai, who will also continue to assist Yonghui Superstores in adjustments to achieve healthy operational goals.

China and the United States hold a new round of diplomatic policy consultations

On September 27th, Miao Deyu, Assistant Minister of Foreign Affairs and Director of the Policy Planning Office of the Chinese Ministry of Foreign Affairs, held a new round of China-US diplomatic policy consultations with Ahmed, Director of the Policy Planning Office of the US Department of State in New York. The two sides had candid and in-depth exchanges of views on the international situation and related issues.

China Council for the Promotion of International Trade responds to a series of recent US restrictions related to China

The China Council for the Promotion of International Trade held a press conference. The spokesperson of the China Council for the Promotion of International Trade responded to a series of recent US restrictions related to China, including raising the 301 tariffs on some Chinese goods and strengthening export restrictions on technologies such as quantum computing and semiconductor manufacturing.

Important Events and Data of the Week: US Non-Farm Payrolls, China PMI

Monday: China's official manufacturing PMI for September, Caixin manufacturing and services PMI for September in China.

Tuesday: Manufacturing PMI for September in the US, UK, France, and Germany. Federal Reserve Chairman Powell delivered a speech at the National Association for Business Economics, the Bank of Japan released the summary of its September monetary policy meeting, and Fed officials Bostic and Daly gave speeches. Vice presidential candidates from both US parties participated in the vice presidential debate. Canada imposed a 100% tariff on Chinese electric vehicles. The Hong Kong Stock Exchange was closed on Tuesday, with trading resuming from Wednesday to Friday but with Northbound and Southbound trading closed.

Wednesday: ADP Employment Report for September in the US. Several Fed officials delivered speeches.

Thursday: Services PMI for September in the US, UK, France, and Germany, initial jobless claims in the US up to the week ending September 28th. Fed officials Barkin, Kashkari, and Bostic delivered speeches. Tesla announced its third-quarter delivery volume.

Friday: US non-farm payrolls and unemployment rate for September. Fed official Williams delivered a speech