There is another heavyweight news coming from China and the United States!
On October 26 local time, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with US Secretary of State Antony Blinken of the United States in Washington. Wang Yi expressed the need to promote the rapid return of China US relations to the track of healthy, stable, and sustainable development.
Meanwhile, on October 25th, the China US Financial Working Group held its first meeting via video. This meeting was co chaired by deputy officials from the People's Bank of China and the US Treasury Department, with the participation of the State Administration of Financial Regulation, the China Securities Regulatory Commission, as well as relevant financial regulatory departments such as the Federal Reserve and the US Securities and Exchange Commission.
From a market perspective, the Hong Kong market has responded more warmly. In the early trading session, the Hang Seng Index directly rose by over 1%. Last night, although the US stock market plummeted, the US stock index rose sharply after the session, and US bonds also saw a pullup; Meanwhile, the popular Chinese concept stocks in the US stock market rose generally.
Wang Yi Meets with Antony Blinken
According to Xinhua News Agency, on October 26 local time in Washington, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with US Secretary of State Antony Blinken in Washington. Before the meeting, both sides briefly met with reporters.
Wang Yi said that this invited visit to the United States is a return visit to Secretary of State Antony Blinken's visit to China in June. The two major powers of China and the United States have differences and contradictions, while the two countries also have important common interests and challenges that need to be addressed together. To this end, China and the United States need dialogue, not only to resume dialogue, but also to deepen dialogue, comprehensive dialogue, enhance mutual understanding through dialogue, reduce misunderstandings and misjudgments, continuously seek to expand consensus, and carry out mutually beneficial cooperation. Promote the decline and stabilization of bilateral relations, and return to the track of healthy, stable, and sustainable development as soon as possible.
Wang Yi stated that there will always be some noise in China US relations, and China will take it calmly. Because we believe that the standard for judging right and wrong is not based on who has a thick arm or a loud voice, but on whether they have followed the provisions of the three joint communiques between China and the United States, complied with international law and basic norms of international relations, and complied with the trend of development and progress of the times. We believe that facts will prove everything, and history will give a fair evaluation.
According to sources, Wang Yi is the highest ranking Chinese official to visit Washington in recent years. In the past few months, there have been multiple contacts between the United States and China. A US official stated that these two competing powers seek to handle tensions in a "responsible manner". The report also pointed out that, considering Beijing's successful experience in mediating reconciliation between Iran and Saudi Arabia, the United States may be trying to persuade China to work together to mediate the Israeli-Palestinian conflict. This is a landmark moment: Washington is powerless to deal with the new Middle East crisis alone. The United States has almost lost trust in the Arab world, especially among Palestinians.
The First Meeting of the China US Financial Working Group
According to the website of the central bank, in order to implement the important consensus reached during the Bali meeting between the heads of state of China and the United States, and based on the consensus reached during the July talks in Beijing by Vice Premier of the State Council and China US economic and trade leader He Lifeng and US Treasury Secretary Yellen, the first meeting of the China US Financial Working Group was held via video on October 25th.
This meeting was co chaired by deputy officials from the People's Bank of China and the US Treasury Department, with the participation of the State Administration of Financial Regulation, the China Securities Regulatory Commission, as well as relevant financial regulatory departments such as the Federal Reserve and the US Securities and Exchange Commission.
Both sides had professional, pragmatic, candid, and constructive communication on topics such as currency and financial stability, financial regulation, sustainable finance, anti money laundering and anti-terrorism financing, global financial governance, and other key concerns of both sides. Both parties agree to continue communication.
On October 24th, the China US Economic Working Group held its first meeting via video. This meeting is chaired by deputy ministerial level officials from the finance ministries of both countries. The two sides had in-depth, candid, and constructive communication on topics such as the macroeconomic situation and policies of the two countries and the world, bilateral economic relations, and cooperation in addressing global challenges. China has expressed its concerns. Both parties will continue to maintain communication.
In September of this year, both China and the United States announced the establishment of an economic working group, including the "Economic Working Group" and the "Financial Working Group". The "Economic Working Group" is led by deputy ministerial level officials from the Treasury Departments of China and the United States, while the "Financial Working Group" is led by deputy ministerial level officials from the People's Bank of China and the US Treasury Department. In addition, during the visit of US Secretary of Commerce Raymond to China, the "Business Issues Working Group" between China and the United States was announced. Currently, there are three working groups in the economic and trade fields between China and the United States serving as high-level exchange and communication mechanisms.
Full market counterattack
Geography is a very important factor that affects the market. With the easing of the geopolitical situation, the market has also responded well. In early trading today, the Hang Seng Index's rise rapidly expanded to over 1%; The Hang Seng Technology Index rose 1.75%. At the same time, against the backdrop of the strong US dollar, the RMB has not regained its previous depreciation trend.
It is worth mentioning that although US stocks plummeted last night, US bonds experienced a jump in price. The recovery of this global asset anchor is a major positive for the pricing of global equity assets. On Wednesday, the yield of the benchmark 10-year US treasury bond bond, which rose sharply by more than 10 basis points, approached a new daily high of 4.99% at the beginning of the European market. It was close to 4.98% before the European Central Bank issued its resolution, which quickly smoothed the rise and turned down after the resolution was released. However, after the announcement of US GDP, the yield further declined, reaching around 4.84% by the end of the bond market, dropping more than 11 basis points on the day, approaching the intraday low since October 17, which broke through 4.80% on Tuesday.
It should be noted that domestic A-shares also have positive expectations. Last night, several celebrity companies announced large-scale buybacks, and this was the first time there were announcements of buyback cancellation. Zhongke Xingtu announced that the company plans to repurchase its shares through centralized bidding transactions, with a repurchase amount of no less than 80 million yuan and no more than 100 million yuan; The repurchase price shall not exceed 69 yuan per share. The company will use it to repurchase stocks and cancel them, forming a long-term repurchase mechanism. In addition, the market's expectation of an "important meeting coming soon" has gradually increased in the near future. Various signs indicate that the rebound of A-shares has a certain sustained foundation.