Mainland-Hong Kong Stock Connect officially includes ETFs

The announcement came just days before Hong Kong marked the 25th anniversary of its return to Chinese sovereignty and is being viewed by some as a “gift” by Beijing to Hong Kong, but despite the symbolic timing, the move to include ETFs in the Stock Connect was inevitable and logical. This is just the latest in a spate of activity related to the two-way opening of China’s capital markets over the past few months…
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PBoC holds video conference on implementation of economic support measures

The government, and the PBoC, are under pressure to show they are taking action to support an economy that likely contracted in the second quarter of 2022, mainly as a result of the zero-COVID policy. The PBoC needs to get the message out to banks that monetary policy decisions and measures set by the State Council must be implemented, although the most recent ones are mainly an expansion, extension, and doubling-down on actions that are already being taken…
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SAFE, PBoC expect RMB stabilization

This isn’t bravado. Regulators are genuinely more comfortable with financial outflows and RMB volatility than they once were. That’s largely due to the fact that, if the RMB is ever to become an international currency, financial investors need to be able to trust that they can move their money in and out of China freely…
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CBIRC releases support measures for pandemic-hit sectors

Implementation of these measures will provide some support for pandemic-hit businesses to survive, although it might also be storing up problems for banks further down the road. That said, for businesses to genuinely prosper this year and beyond, they will need larger stimulus measures in the short term and ultimately, an environment free of pandemic disruption…
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Politburo meeting pledges economic support measures

As China continues to deploy stringent lockdown measures to contain the Omicron variant of COVID-19, hopes for achieving the 5.5% growth target put forward in March have all but vanished. Even so, policymakers remain reluctant to resort to broad-based stimulus and are instead looking for ways to support beleaguered industries and businesses at the margins…
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John Lee appointed as the next Chief Executive of Hong Kong

We can expect that under John Lee, the Hong Kong government will continue to push for further economic integration with mainland China. However, the change in administration in Hong Kong will probably not have a major impact on the broader development of the GBA, since much of the driving force behind GBA integration is coming from the central government and Guangdong provincial government rather than from the Hong Kong special administrative region…
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