Evening hotspots in A-shares | Central bank sets tone! Will continue to implement moderately loose monetary policy.

1. The central bank: Increase financial support for the economy and continue to implement a moderately loose monetary policy On August 1, the People's Bank of China held a work conference for the second half of 2025 and a promotion meeting for continuous and effective central inspection and rectification. It pointed out that the intensity of financial support for the economy is increasing. Implement a moderately loose monetary policy, reduce the reserve requirement ratio, flexibly use various monetary policy tools, and maintain ample liquidity. Lower policy interest rates, structural monetary policy tool rates, and individual housing provident fund loan rates to promote the downward trend of financial market interest rates and overall social financing costs. Continuously improve the monetary policy framework, cultivate policy interest rates, improve the monetary policy toolkit, do well in policy communication and expectation guidance, and consolidate and expand the effectiveness of rectifying fund idling and the "internal competition" within the financial industry. 2. U.S. non-farm payroll "unexpectedly cold" in July, market fully pricing in rate cuts in October On Friday, data released by the U.S. Bureau of Labor Statistics showed that seasonally adjusted non-farm employment in July stood at 73,000, lower than the market's expectation of 110,000, and the smallest increase since October of last year. The U.S. unemployment rate in July was 4.2%, up compared to the previous month, in line with market expectations. Futures markets suggest that traders believe there is a 75% chance the Fed will cut rates by 25 basis points at the September meeting, up from 45% before the employment report was released. Traders have fully digested the scenario of a rate cut in October by the Fed, with the money markets expecting an 80% chance of a rate cut by the European Central Bank in March 2026, compared to 65% before the U.S. data was released. 3. Resuming the collection of value-added tax on national bonds and other bond interest income, what impact does it have? Experts interpret The Ministry of Finance and the State Administration of Taxation issued a notice to the public on August 1, stating that starting from August 8, 2025, value-added tax will be levied on interest income from newly issued national bonds, local government bonds, and financial bonds. Experts and industry insiders believe that this policy adjustment will have limited impact on the market and virtually no impact on individual investors. The interest income from the financial institutions' interbank deposits, interbank loans, interbank CDs, etc., will continue to be subject to the relevant VAT exemption policy, with no impact on the institutions concerned. Li Jiyue believes that China has issued a large volume of bonds, with strong market absorptive capacity, a small proportion of new bond issuance, and bond prices being influenced by multiple factors. Tax policies are just one of the factors affecting the market, with the policy adjustment having limited impact. 4. Trump signs executive order imposing tariffs on most countries, Foreign Ministry responds Foreign Ministry spokesperson Guo Jiakun hosted a regular press conference on August 1. During the conference, a reporter from AFP asked: U.S. President Trump has signed an executive order imposing tariffs on most countries. What is the Foreign Ministry's response? Guo Jiakun expressed that China's position against the indiscriminate imposition of tariffs has always been consistent and clear. There are no winners in a tariff war or trade war, and protectionism harms the interests of all parties. 5. Deputy Governor of the Central Bank Pan Changneng: Welcome American companies and financial institutions to invest in China On July 29, 2025, on behalf of Governor Pan Gongsheng, Pan Changneng, Deputy Governor of the People's Bank of China, met with a delegation from the National Committee of American Chamber of Commerce. The two parties engaged in in-depth discussions on Sino-American economic and trade relations, China's macroeconomic policies, financial opening, and other topics. Pan Changneng stated that the People's Bank of China is resolutely promoting the high-level opening of the financial industry, continuously optimizing the environment for foreign investment. Governor Pan Gongsheng has held multiple symposiums for foreign companies and financial institutions to gather opinions and suggestions. American companies and financial institutions are welcome to invest in China, participate in the construction of the Chinese financial market, and share the opportunities for Chinese development. 6. Addressing the "internal competition" among private enterprises, NDRC is coordinating measures such as amending laws At a press conference held on Friday by the National Development and Reform Commission, it was reported that in promoting the high-quality development of the private economy, the National Development and Reform Commission has established a regular communication and exchange mechanism with private enterprises. A total of 17 symposiums have been held, with face-to-face exchanges with nearly 80 private enterprises. Measures are being coordinated to address the widespread concern of "internal competition" among enterprises by revising laws, issuing policies, improving standards, and enhancing industry self-discipline. Additionally, the National Development and Reform Commission has conducted over 500 dialogues and exchanges with private enterprises through various channels. Development and reform departments at all levels have held over 20,000 symposiums with private enterprises at the provincial, city, and county levels. A comprehensive service platform for the development of the private economy has received over 2,400 inquiries and demands in the past six months. 7. Regarding IPOs! Hong Kong Stock Exchange announces major new regulations! Why modify the IPO pricing mechanism? On August 1, HKEX's wholly-owned subsidiary, the Hong Kong Stock Exchange, published a consultation summary on optimizing the pricing and disclosure requirements for initial public offerings (IPOs) and further consultation on the proposed sustained public holding requirement. HKEX stated that it plans to allow new applicants to choose between Mechanisms A or B as the allocation mechanism for the IPO. Under Mechanism A, the maximum clawback percentage to the public offer portion is raised from the original proposal of 20% to 35%; Mechanism B introduces a new option that requires the issuer to set a proportion of the public offer portion in advance, with a minimum of 10% (maximum of 60%) of the shares offered, without a clawback mechanism. Regarding the reasons for modifying the IPO pricing mechanism, Wu Jiexuan stated that the IPO pricing mechanism in Hong Kong has not changed for over twenty years, or precisely 27 years. During these years, the background and situation of issuers and investors have undergone significant changes, prompting HKEX to establish a more flexible, clear, and transparent framework for IPO pricing and share allocation for issuers and investors. 8. July new energy vehicle sales figures released: BYD Company Limited exceeds 340,000 vehicles, NIO delivers over 30,000 vehicles On August 1, BYD Company Limited, Xiaomi, Xpeng, and other car companies announced their delivery results for the previous month. BYD Company Limited: Sales of 344,300 vehicles in July, compared to 342,400 vehicles during the same period last year; sales of passenger vehicles reached 341,000 vehicles. Xiaomi: In July 2025, Xiaomi delivered over 30,000 vehicles. NIO: In July 2025, NIO delivered 21,017 new vehicles, with a year-on-year growth of 25.2% in the first seven months. Xpeng: In July 2025, Xpeng delivered a total of 36,717 new vehicles, with a year-on-year growth of 229% and a month-on-month growth of 6%, setting a new high in monthly deliveries. Market-focused investment opportunities include nuclear fusion and other sectors of interest, with a summary of market activity emphasizing concerns related to nuclear power and solid-state batteries, among other topics. Additionally, selected announcements highlight significant financial activities, including fundraising and performance results of various companies, both positive and negative.