On January 10th, Friday, the three major A-share indices collectively fell, while the micro-market rose. Hong Kong stocks climbed. Government bond futures significantly declined, and the offshore yuan surged by a hundred points.
Today, the People's Bank of China announced that it has decided to temporarily suspend the purchase of government bonds in the open market. Guo Tao, Chief Economist of Bank of China Securities, reminded to avoid overinterpreting the moderately loose monetary policy, as the Central Economic Work Conference at the end of 2024, after 14 years, reintroduced moderate easing, which is more of a supportive confirmation of the previous monetary policy stance.
As of the time of writing, the Shanghai Composite Index fell by 0.04%, the Shenzhen Component Index fell by 0.38%, the ChiNext Index fell by 0.34%, and the Wind Micro Market Index rose by 0.39%.
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As of the time of writing, the Hang Seng Index rose by 0.54%, and the Hang Seng Tech Index rose by 0.83%. XPeng, Meituan, and SMIC rose over 1%; Dongfang Zhenxuan fell by 3.5%; Sunac China fell over 25%, following reports that Cinda Hong Kong filed for its liquidation.
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【9:35】
Government bond futures opened significantly lower, with the 30-year main contract down by 0.87%, the 10-year main contract down by 0.46%, the 5-year main contract down by 0.36%, and the 2-year main contract down by 0.18%.
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The AI companionship concept surged at the beginning of the session, with Broadcom Integrated and Suhao Hongye hitting two consecutive trading limits, De Yi Cultural and Creative rising over 10%, and Baixinglong, Xinghui Entertainment, and Shifeng Culture following suit.
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【9:10】
After the announcement from the People's Bank of China, bonds collectively fell, with the yields on 5-year and 10-year government bonds rising by 4 basis points during the day, and the 30-year yield rising by 3.5 basis points
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The offshore RMB against the US dollar has risen nearly 100 points in the short term, currently reported at 7.3481.
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01918

Today, the People's Bank of China announced that it has decided to temporarily suspend the purchase of government bonds in the open market. Government bond futures fell sharply, and the offshore renminbi surged by a hundred points. Sunac China fell over 25%, following reports that Cinda Hong Kong had filed for its liquidation

- On January 10, the People's Bank of China announced a temporary halt to purchasing government bonds in the open market, leading to a collective drop in bond prices and a significant rise in short-term bond yields.  
- The offshore RMB strengthened against the USD, reaching 7.3507.  
- Economists emphasize the need to avoid overinterpreting the moderately accommodative monetary policy, which is seen as a confirmation of previous supportive stances rather than a shift in policy direction.

Wallstreetcn

Sunac China

The three major A-share indices fell collectively, Hong Kong stocks rose, Sunac China dropped over 25%, government bond yields rose rapidly, and the offshore yuan surged by a hundred points