Newsletter By 2019-07-14
The world is on the brink of another round of quantitative easing. The leaders of the world's major political countries are almost invariably eager to have some kind of economic results in order to prove themselves, while completely ignoring the law of economic operation. They know that there will be a looming crisis in the future, yet they must focus on the present and get through the crisis they are currently facing. Under such pressures, the central banks around the world have almost no other option but to give up the independence they were proud of, and play by the decisions of political leaders. There is only one thing that can be done now, and that is to boost liquidity. Since we cannot avoid an outbreak of an economic crisis, what we can really do is try to avoid the crisis from breaking out around us. As for the future affairs, we cannot really control and manage them that much, so it is best we leave it for people in the future to deal with. Therefore, on the whole, the independent financial systems of the future are going to be active again. This is because they will have new assets under management, more capitals, and more importantly, new traders coming in to trade.
>>The integrity and credibility of the capital market has been temporarily restored due to a short-term suppression of U.S.-China trade war in a period of excess capital and less-restrictive global liquidity. We will need to maintain geo-economic, economic and geopolitical stability, all of which are important factors that determines the growth of capital markets. Anbound's researchers explained the future direction of the stock market is at the hands of several factors: (1) The global economy, (2) The final trade agreements of U.S. and China, (3) The possibility of another destructive intervention on the global market by the U.S., and (4) The recovery rate of the global economy when faced with a set of challenges. China needs to move towards the future and strengthen the Chinese market by developing and expanding its financial market. The bond market should also be among China's top priority.
>>Deepening the reform of CPC and state institutions is a major task for China. In the future, China's reforms need to be expanded beyond institutional reforms. Firstly, deepening reforms need to be extended from the organizational reform of CPC and the state to cover a wider scope. Secondly, the deepening of reform in the future requires more social and local participation. Thirdly, market-oriented reforms should occupy an important position in deepening reform. Fourthly, the reforms of mechanism and institutions are intimately linked with each other. Finally, the deepening of reforms should focus not just on China, but the world as a whole. Market reforms should be intensified and institutional reforms in various fields should be accelerated. In addition to that, the development space should be expanded. At the same time, market and social forces should be encouraged to involve themselves more in deepening reforms, bringing back an environment similar to that of the past where all parties worked together towards the common goal of development.
>>On April 30th, the U.S. President Donald Trump and House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer agreed to a US$2 trillion infrastructure plan to upgrade America's highways, railroads, bridges and broadband infrastructure. Such a large-scale plan to revive the U.S. infrastructure will, once put into action, have an important impact on the U.S. economy, politics, and possibly even the global economy. It will also help boost Trump's re-election campaign, and influence global politics and economy through the U.S. economic and political landscape. Anbound researchers analyzed why the agreement infrastructural plan came to reach.
>>China will replenish social security funds through the injection of state capital this year to make the funds more sustainable. Policies to reduce employers' contributions to social insurance schemes will be further implemented to ensure that pensions are paid on time and in full. The decision was made at the State Council's executive meeting chaired by Premier Li Keqiang on July 10.
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