Chen Guo: Allocate Resources with Steady Progress; Avoid Excessively Aggressive Risk Appetite in the Short Term

There remains a certain degree of uncertainty in the short-term U.S. "stock, bond, and foreign exchange" markets and overseas financial markets. First, at least based on the current intensity, the recent increase in buybacks by the U.S. Treasury cannot fundamentally address the internal causes of persistently high long-term interest rates in the United States, and the current scale is also limited. Similarly, the pressure for the yen to depreciate has not been fully alleviated, with expectations of a Bank of Japan rate hike in September gaining momentum. For the U.S. "stock, bond, and foreign exchange" markets to stabilize, it will be necessary to observe how U.S. monetary and fiscal policies can further strengthen their coordination, including the statements to be made by the Federal Reserve Chair at the Jackson Hole meeting next week.