2023-10-25 01:32:16
The Hong Kong stock market rose sharply in early trading on Wednesday (25th), and the three major indexes of the A-share market also rose simultaneously. The positive news was that the Standing Committee of the National People’s Congress voted on Tuesday to approve the central government’s issuance of additional government bonds in the fourth quarter.RMB(The same below) 1 trillion yuan, and “Bloomberg” disclosed that President Xi Jinping inspected the central bank on Tuesday, which was his first inspection of the central bank since becoming president.
Hong Kong’s Hang Seng Index surged 2.79% in early trading on Wednesday, and the Hang Seng Technology Index soared 4.53%. In the A-share market, the Shanghai Composite Index rose 0.82%, the Shenzhen Component Index rose more than 1%, and the ChiNext Index rose 0.54%.
U.S. Chinese concept stocks also rose,NasdaqChina’s Golden Dragon Index closed up 3.98% on Tuesday.
According to Xinhua News Agency, the Standing Committee of the Chinese National People’s Congress voted on Tuesday to approve the central government’s issuance of additional public bonds of 1 trillion yuan in the fourth quarter. The national fiscal deficit will increase by 25.8% to 4.88 trillion yuan, and the estimated deficit rate will increase from 3% to about 3.8%. .
The Ministry of Finance pointed out that the funds will be used in eight major areas: post-disaster recovery and reconstruction, key flood control projects, natural disaster emergency response capacity improvement projects, other key flood control projects, irrigation area construction and renovation and key soil erosion control projects, and urban drainage and flood prevention capacity improvement actions. , key natural disaster comprehensive prevention and control system construction projects, and high-standard agricultural land construction in Northeast China and disaster-stricken areas in the Beijing-Tianjin-Hebei region.
According to a report by China Business News, compared with the 1 trillion yuan anti-epidemic special public bond in 2020, this time the 1 trillion yuan special public bond will be fully used by the central government and will not be repaid by the local government.
“Bloomberg” disclosed earlier this month that Chinese policymakers are considering increasing this year’s budget deficit and issuing more public debt to achieve the full-year economic growth target of about 5%.
CITIC Securities pointed out that the central government’s issuance of additional public bonds of 1 trillion yuan is expected to boost gross domestic product (GDP) in the fourth quarter and next year, helping to boost the confidence of stock market investors.
Luo Zhiheng, chief economist of Guangdong Securities, also said that the current macroeconomic situation continues to recover, but the overall demand is insufficient and the problem of weak confidence of micro entities still exists. China’s additional issuance of public bonds will help strengthen infrastructure construction and expand total demand, ranking fourth. lay the foundation for the economy in the first quarter and next year.
At the same time, according to Bloomberg, people familiar with the matter revealed that Xi Jinping inspected the central bank on Tuesday afternoon. This was his first inspection of the central bank since becoming president, showing the importance he attaches to the economy and financial markets.
Sources said Xi Jinping inspected the central bank and the State Administration of Foreign Exchange, accompanied by government officials including Vice Premier He Lifeng, who also visited sovereign wealth fund China Investment Corporation (CIC).
It is very rare for the top leader of the Communist Party of China to visit the People’s Bank of China. Xi Jinping has never visited the People’s Bank of China before. This move shows that the Party Central Committee wants to strengthen “centralized and unified” leadership over the financial industry. In the past, such inspections were usually led by the Premier or Deputy Prime Minister of the State Council.
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