《ET Net News Agency, Sept 28 Special Report》Chinese President Xi Jinping completed his state visit to the United States last week, during which the two leaders reached eight-point consensus, including agreeing to build a "constructive strategic stability relationship between China and the U.S. based on respect, fairness, and reciprocity," and agreeing to establish a dialogue channel on artificial intelligence and communication on AI-related incidents. Stock markets in Shanghai and Shenzhen opened lower this morning, with the SSE Composite Index down 0.26% at 3,878.41 points, the Shenzhen Component Index down 0.38%, and the ChiNext Index down 0.65%. At the market opening, pharmaceutical stocks performed well, while non-ferrous metals and coal stocks declined.
Goldman Sachs noted in a report that although the atmosphere at the summit between U.S. President Trump and President Xi was friendly, deep-seated tensions between the two countries remain. The bank believes that the concrete outcomes of the summit were limited, and the two-month ceasefire extension was shorter than expected; major areas of disagreement or tension between China and the U.S. were either briefly mentioned or not mentioned at all in the joint statements. Trump is also considering a $14 billion arms sale to Taiwan, which could be postponed until after the APEC or G20 summits.
China's Ministry of Commerce website published an article today, with an official from the Department of North America and Oceania Affairs interpreting the outcomes of the eighth round of China-U.S. economic and trade consultations. Both sides agreed to reciprocally reduce tariffs on about $30 billion worth of products imported from each other, with tariffs on approximately 90% of these products to be lowered to the most-favored-nation rate level. Both sides also agreed to establish a China-U.S. Trade Council, with an agricultural working group to be established under it, and the first working group meeting will be held before the end of this year; they also agreed to establish a China-U.S. Investment Council, under which economic and trade teams from both sides will conduct regular dialogues on potential investment opportunities and investment barriers.
Additionally, bipartisan U.S. lawmakers jointly introduced a bill on the 25th, aiming to prohibit the federal government from using optical module components made in China in classified government systems. The bill specifically names Zhongji Aogo (Sz:300308) and Newishine (Sz:300502), and includes their subsidiaries, affiliated companies, and regulated products using related firmware, software, or components within its scope. The news dragged down Zhongji Aogo and Newishine at the market opening.
Additionally, the People's Bank of China conducted a 139 billion yuan (RMB, same below) 7-day reverse repo operation today, along with a 661 billion yuan overnight reverse repo operation and a 300 billion yuan 14-day reverse repo operation. There were 660.3 billion yuan of reverse repos maturing in the open market today, resulting in a net injection of 439.7 billion yuan. This week (Sept 28-30), a total of 703.3 billion yuan of reverse repos will mature in the open market. (wn)
Goldman Sachs noted in a report that although the atmosphere at the summit between U.S. President Trump and President Xi was friendly, deep-seated tensions between the two countries remain. The bank believes that the concrete outcomes of the summit were limited, and the two-month ceasefire extension was shorter than expected; major areas of disagreement or tension between China and the U.S. were either briefly mentioned or not mentioned at all in the joint statements. Trump is also considering a $14 billion arms sale to Taiwan, which could be postponed until after the APEC or G20 summits.
China's Ministry of Commerce website published an article today, with an official from the Department of North America and Oceania Affairs interpreting the outcomes of the eighth round of China-U.S. economic and trade consultations. Both sides agreed to reciprocally reduce tariffs on about $30 billion worth of products imported from each other, with tariffs on approximately 90% of these products to be lowered to the most-favored-nation rate level. Both sides also agreed to establish a China-U.S. Trade Council, with an agricultural working group to be established under it, and the first working group meeting will be held before the end of this year; they also agreed to establish a China-U.S. Investment Council, under which economic and trade teams from both sides will conduct regular dialogues on potential investment opportunities and investment barriers.
Additionally, bipartisan U.S. lawmakers jointly introduced a bill on the 25th, aiming to prohibit the federal government from using optical module components made in China in classified government systems. The bill specifically names Zhongji Aogo (Sz:300308) and Newishine (Sz:300502), and includes their subsidiaries, affiliated companies, and regulated products using related firmware, software, or components within its scope. The news dragged down Zhongji Aogo and Newishine at the market opening.
Additionally, the People's Bank of China conducted a 139 billion yuan (RMB, same below) 7-day reverse repo operation today, along with a 661 billion yuan overnight reverse repo operation and a 300 billion yuan 14-day reverse repo operation. There were 660.3 billion yuan of reverse repos maturing in the open market today, resulting in a net injection of 439.7 billion yuan. This week (Sept 28-30), a total of 703.3 billion yuan of reverse repos will mature in the open market. (wn)
