The program Politics and Economy reported that CCTV News recently issued an official announcement regarding the Trump-Xi summit, which is worth reading.
According to CCTV News, from September 23 to 25, Chinese President Xi Jinping paid a state visit to the United States.
*Eight Achievements Reached Between China and the U.S.*
During the visit, the two heads of state held in-depth discussions on building a constructive strategic stability relationship between China and the U.S. and on major international and regional issues, reaching eight points of consensus, including:
First, both sides agreed to build a "constructive strategic stability relationship between China and the U.S. based on mutual respect, fairness, and reciprocity."
Second, both sides agreed to support each other in successfully hosting the Asia-Pacific Economic Cooperation (APEC) informal leaders' meeting and the Group of Twenty (G20) leaders' summit. The two heads of state expressed their intention to attend each other's hosted meetings.
Third, the two heads of state agreed that Iran should fulfill its commitment not to develop nuclear weapons, and that no country or organization shall impose tolls on international waterways.
Fourth, the two heads of state recalled that China and the U.S. were allies during World War II and fought side by side to achieve victory in the war.
Fifth, the two heads of state acknowledged the positive role of the China-U.S. economic and trade consultation mechanism and the outcomes achieved by their economic and trade teams, including establishing and advancing mechanisms such as a Trade Council, reaching a reciprocal tariff reduction arrangement of "30 billion U.S. dollars," and postponing the outcome of the Kuala Lumpur economic and trade consultations, and instructed to implement these agreements.
Sixth, cooperation between China and the U.S. in anti-drug law enforcement has yielded visible results. Recently, both sides have closely collaborated, jointly cracking multiple cases involving new psychoactive substances and precursor chemicals, arresting dozens of relevant suspects in both countries.
Seventh, both sides agreed to establish a China-U.S. dialogue on artificial intelligence to exchange views on the risks and benefits related to AI. The next dialogue will be held in November this year. Both sides agreed to establish a communication channel for AI-related incidents.
Eighth, the U.S. welcomes the arrival in the U.S. of a pair of giant pandas leased by China to Atlanta Zoo.
In addition, the militaries of China and the U.S. also agreed to sign as soon as possible a memorandum of understanding to enhance crisis communication and prevention, and will continue cooperation in searching for the remains of missing U.S. military personnel in China.
Some items in this official announcement are rather vague. For instance, in the mutual tariff reduction item, China reduced import tariffs on many agricultural products from the U.S., except for U.S. soybeans. Why is this omission? Please refer to the author's article yesterday on the "hidden battle over soybeans."
Yesterday (28th), A-shares fell, and Asian stock markets also declined, yet the Hong Kong market performed relatively well. Why?
According to Zhitong Finance, Fitch Ratings believes that deeper integration between Hong Kong and mainland China's capital markets will improve the financial condition of Hong Kong securities firms rated by Fitch, reinforcing their strategic importance to their Chinese parent companies. These firms are better positioned than local peers to expand market share and strengthen their standing, benefiting from established and increasingly close ties with Chinese enterprises experiencing rising offshore financing demand, as well as growing investor demand for cross-border wealth management services.
*Fitch Expects Increased IPO Share for Chinese Brokerages*
Fitch expects that Hong Kong-based brokerages under its rating, particularly subsidiaries of Chinese brokerages in Hong Kong, will capture a larger share in initial public offering (IPO) activities. This is driven by growth in dual listings and technology-related transactions, where these firms have established client relationships and execution advantages. Given that rated Hong Kong brokerages are more reliant on equity market-related transactions, an improving capital market environment should further support their profitability.
Fitch believes that medium-term, cross-border stock market connectivity is expected to extend to bond markets. Policies aimed at developing Hong Kong's bond market will help achieve this goal and assist rated firms in diversifying their revenue sources. However, most rated Hong Kong brokerages remain relatively small in scale; if market sentiment shifts significantly, capital flows from mainland investors could reverse, potentially affecting the financial conditions of most Fitch-rated Hong Kong brokerages.
With the upcoming National Day holiday, domestic markets are closed, so funds have flowed into Hong Kong, causing yesterday's Hong Kong market not only to see its index rise but also its trading volume increase.
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*Correction Notice:*
In the article dated September 24, titled "A Few Minor Incidents," Ipek Ozkardeskaya was mentioned. She is not an analyst at Julius Baer, but rather an analyst at Swissquote. Therefore, the comments attributed to her regarding U.S. President Trump restricting diesel exports, which are detrimental to the U.S., are unrelated to Julius Baer.
However, on Monday night, Trump realized that restricting diesel exports was indeed detrimental to the U.S. and thus lifted some of the restrictions on diesel exports. Hence, Swissquote analyst Ipek Ozkardeskaya's view that Trump's restriction on U.S. diesel exports is detrimental to the U.S. remains valid. Senior Investor, Shek King-chuen
(Investing involves risk. Risk tolerance varies among investors; independent thinking is essential. The author may trade according to market conditions.)
*Articles published in ET Net, whether signed or unsigned, represent the authors' personal opinions and do not reflect the position of ET Net. ET Net serves as a platform providing free speech.
According to CCTV News, from September 23 to 25, Chinese President Xi Jinping paid a state visit to the United States.
*Eight Achievements Reached Between China and the U.S.*
During the visit, the two heads of state held in-depth discussions on building a constructive strategic stability relationship between China and the U.S. and on major international and regional issues, reaching eight points of consensus, including:
First, both sides agreed to build a "constructive strategic stability relationship between China and the U.S. based on mutual respect, fairness, and reciprocity."
Second, both sides agreed to support each other in successfully hosting the Asia-Pacific Economic Cooperation (APEC) informal leaders' meeting and the Group of Twenty (G20) leaders' summit. The two heads of state expressed their intention to attend each other's hosted meetings.
Third, the two heads of state agreed that Iran should fulfill its commitment not to develop nuclear weapons, and that no country or organization shall impose tolls on international waterways.
Fourth, the two heads of state recalled that China and the U.S. were allies during World War II and fought side by side to achieve victory in the war.
Fifth, the two heads of state acknowledged the positive role of the China-U.S. economic and trade consultation mechanism and the outcomes achieved by their economic and trade teams, including establishing and advancing mechanisms such as a Trade Council, reaching a reciprocal tariff reduction arrangement of "30 billion U.S. dollars," and postponing the outcome of the Kuala Lumpur economic and trade consultations, and instructed to implement these agreements.
Sixth, cooperation between China and the U.S. in anti-drug law enforcement has yielded visible results. Recently, both sides have closely collaborated, jointly cracking multiple cases involving new psychoactive substances and precursor chemicals, arresting dozens of relevant suspects in both countries.
Seventh, both sides agreed to establish a China-U.S. dialogue on artificial intelligence to exchange views on the risks and benefits related to AI. The next dialogue will be held in November this year. Both sides agreed to establish a communication channel for AI-related incidents.
Eighth, the U.S. welcomes the arrival in the U.S. of a pair of giant pandas leased by China to Atlanta Zoo.
In addition, the militaries of China and the U.S. also agreed to sign as soon as possible a memorandum of understanding to enhance crisis communication and prevention, and will continue cooperation in searching for the remains of missing U.S. military personnel in China.
Some items in this official announcement are rather vague. For instance, in the mutual tariff reduction item, China reduced import tariffs on many agricultural products from the U.S., except for U.S. soybeans. Why is this omission? Please refer to the author's article yesterday on the "hidden battle over soybeans."
Yesterday (28th), A-shares fell, and Asian stock markets also declined, yet the Hong Kong market performed relatively well. Why?
According to Zhitong Finance, Fitch Ratings believes that deeper integration between Hong Kong and mainland China's capital markets will improve the financial condition of Hong Kong securities firms rated by Fitch, reinforcing their strategic importance to their Chinese parent companies. These firms are better positioned than local peers to expand market share and strengthen their standing, benefiting from established and increasingly close ties with Chinese enterprises experiencing rising offshore financing demand, as well as growing investor demand for cross-border wealth management services.
*Fitch Expects Increased IPO Share for Chinese Brokerages*
Fitch expects that Hong Kong-based brokerages under its rating, particularly subsidiaries of Chinese brokerages in Hong Kong, will capture a larger share in initial public offering (IPO) activities. This is driven by growth in dual listings and technology-related transactions, where these firms have established client relationships and execution advantages. Given that rated Hong Kong brokerages are more reliant on equity market-related transactions, an improving capital market environment should further support their profitability.
Fitch believes that medium-term, cross-border stock market connectivity is expected to extend to bond markets. Policies aimed at developing Hong Kong's bond market will help achieve this goal and assist rated firms in diversifying their revenue sources. However, most rated Hong Kong brokerages remain relatively small in scale; if market sentiment shifts significantly, capital flows from mainland investors could reverse, potentially affecting the financial conditions of most Fitch-rated Hong Kong brokerages.
With the upcoming National Day holiday, domestic markets are closed, so funds have flowed into Hong Kong, causing yesterday's Hong Kong market not only to see its index rise but also its trading volume increase.
---------------------------------
*Correction Notice:*
In the article dated September 24, titled "A Few Minor Incidents," Ipek Ozkardeskaya was mentioned. She is not an analyst at Julius Baer, but rather an analyst at Swissquote. Therefore, the comments attributed to her regarding U.S. President Trump restricting diesel exports, which are detrimental to the U.S., are unrelated to Julius Baer.
However, on Monday night, Trump realized that restricting diesel exports was indeed detrimental to the U.S. and thus lifted some of the restrictions on diesel exports. Hence, Swissquote analyst Ipek Ozkardeskaya's view that Trump's restriction on U.S. diesel exports is detrimental to the U.S. remains valid. Senior Investor, Shek King-chuen
(Investing involves risk. Risk tolerance varies among investors; independent thinking is essential. The author may trade according to market conditions.)
*Articles published in ET Net, whether signed or unsigned, represent the authors' personal opinions and do not reflect the position of ET Net. ET Net serves as a platform providing free speech.
