No 896 - One step forward one step back

原创

BANDSFinancial

磐石金融有限公司（ BANDS Financial Limited ）在香港注册成立，是一家持有香港证监会（SFC）2号牌照的期货经纪公司，业务涉及中国以外全球大部分活跃期货及期权市场。

香港

We seem to be a long way from the safe haven of fresh data from China. From a Chinese perspective, there is nothing in the calendar until the 31st of May. Until then, the media and bank analysts must bide their time and try to avoid being purely speculative in the absence of fresh facts.Although covid infections in Shanghai are now static. As covid infections outside Shanghai‘s designated quarantine venues have fallen to zero, attention has now fallen on Beijing. Xinhua reports that Vice Premier Sun Chunlan is now “giving directions” for the pandemic response work in Beijing. “Party and government cadres at all levels should thoroughly implement the spirit of a series of important instructions from General Secretary Xi Jinping on the prevention and control of the epidemic, implement the decisions of the Party Central Committee and the State Council, adhere to the general policy of ”dynamic zero-Covid“, speed up contact tracing, transfer, and quarantine work, to achieve as fast as possible zero community transmission, to ensure people's health and normal production and living order.” These are very similar to the phrases she used before the intensification of the lockdown in Shanghai, and it would seem a stricter regime in Beijing will now follow.Despite the impending lockdown in Beijing, the policy levers are still being adjusted. This morning the Chinese media is highlighting the intention of Beijing to offer more than 140 billion yuan ($21.1 billion) of additional tax relief to businesses, increasing the total of tax rebates this year to RMB 2.64 trillion ($394.1 billion) back of the envelope calculations would suggest this is 3.76% of Chinese GDP. Other initiatives include subsidies to grain farmers and postponing social security payments and loan repayments for small companies. On the other hand, for consumers the loan prime rate was adjusted last week which has led to a fall in mortgage terms and various cities are currently lowering the barriers to entry to the housing market by lowering initial deposit percentages and changing the restrictions on buying second homes. However, such changes have to be careful to remain within the policy limits of homes are for living in and not for speculation.Last night all three major US indexes closed firmly, However Nasdaq futures are down 1.30% in early trade as Snap Inc the owner of Snapchat has announced it expects Q2 revenue to fall below previous guidance. Snap Inc’s shares have fallen more than 31% in the after-hours markets and other platform products are lower. The company formerly known as Facebook is down more than 7%, Pinterest is down 12%. So, for the moment, the markets still appear to be dancing one step forward and one step back

Have a good dayRegards John