Daily Macro Economy News on June 9

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Domestic News

1. In the field of banking and insurance, China will increase financial support for new types of consumption and service consumption, and strengthen the financing guarantee for investment

2. Vigorously develop advantageous characteristic industries, and actively explore new paths for transformation and development of resource-based areas

3. Achieving the "3060" target will require massive investment in green transformation and green technology

4. Resolutely eliminate regulatory gaps and blind spots, clarify the boundaries of responsibility, tighten the chain of responsibility, and strengthen comprehensive governance

International News

1. Iran Oil Exports Up to 1 Million Barrels Per Day

2. EU approves €8 billion in government subsidies for semiconductor research projects

3. Eurozone GDP fell 0.1% quarter-on-quarter in Q4 2022 and 0.1% quarter-on-quarter in Q1 2023, showing two consecutive quarters of contraction

4. The UK will set a threshold for “windfall tax” to ease the burden on oil and gas sector

More detials:

Domestic News

1. In the field of banking and insurance, China will increase financial support for new types of consumption and service consumption, and strengthen the financing guarantee for investment

The 14th Lujiazui Forum was held in Shanghai. The Central Bank, China Banking and Insurance Regulatory Commission (CBIRC), the Securities Regulatory Commission and Exchange Commission and the Foreign Exchange Bureau said that they will launch a number of measures to effectively improve the financial services to the real economy. China will increase financial support for new types of consumption and service consumption in the field of banking and insurance, strengthen financing protection for investment, improve foreign trade credit and export credit insurance services and help enterprises to stabilize orders and expand markets. In the capital market, there will be policies and measures in due course to further support the high level of scientific and technological self-sufficiency and self-improvement to help the construction of a modern industrial system.

2. Vigorously develop advantageous characteristic industries, and actively explore new paths for transformation and development of resource-based areas

National leaders stressed in an inspection trip to Inner Mongolia that Inner Mongolia is an important national energy and strategic resource base, agricultural and livestock products production base and China's important bridgehead to the north. We should optimize the industrial structure based on these endowment characteristics and strategic positioning, vigorously develop advantageous industries, actively explore new paths for the transformation and development of resource-based areas, and accelerate the construction of a modern industrial system reflecting the advantages of Inner Mongolia's characteristics.

3. Achieving the "3060" target will require massive investment in green transformation and green technology

Central Bank Governor Gang Yi said that achieving the "3060" goal, will require massive investment in green transformation and green technology, and the amount of capital required is estimated to be in the order of one hundred billion yuan. Government funds can only cover a small part of the total, and it mainly relies on mobilizing social funds. As of the end of the first quarter of 2023, China's green loan balance in domestic and foreign currencies exceeded 25 trillion yuan and its green bond balance exceeded 1.5 trillion yuan, both ranking among the top in the world.

4. Resolutely eliminate regulatory gaps and blind spots, clarify the boundaries of responsibility, tighten the chain of responsibility, and strengthen comprehensive governance

Yunze Li, director of the China Banking and Insurance Regulatory Commission (CBIRC), pointed out that strengthening and improving modern financial supervision is an important task in the current financial sector. To resolutely eliminate regulatory gaps and blind spots, clarify the boundaries of responsibility, tighten the chain of responsibility, and strengthen comprehensive governance. We should improve the responsibility system of participation of multiple entities, multi-disciplinary collaboration and multi-level coherence, and truly achieve a "full coverage, no exceptions" regulatory. To effectively improve the service of the real economy, continue to deepen the reform of key areas for development, always adhere to the financial openness to the outside world

International News

1. Iran Oil Exports Up to 1 Million Barrels Per Day

Sources said the US and Iran are close to reaching a tentative deal that would exempt the US from some sanctions restrictions, including allowing Iran to export oil up to 1 million barrels per day, while Iran pledges to stop highly enriched uranium activities enriched to 60 percent and above and to continue cooperating with the International Atomic Energy Agency(IAEA).

2. EU approves €8 billion in government subsidies for semiconductor research projects

The EU approved €8 billion in government subsidies for semiconductor research projects. These projects received a total of €13.7 billion in private sector funding, for a total of approximately €22 billion in funding support.

3. Eurozone GDP fell 0.1% quarter-on-quarter in Q4 2022 and 0.1% quarter-on-quarter in Q1 2023, showing two consecutive quarters of contraction

Eurostat released revised data showing that eurozone GDP fell 0.1% quarter-on-quarter in Q4 2022 and fell 0.1% quarter-on-quarter in Q1 2023, showing two consecutive quarters of contraction, implying that the eurozone economy is in technical recession.

4. The UK will set a threshold for “windfall tax” to ease the burden on oil and gas sector

On June 9, The Financial Times reported that three people briefed on the U.K. government's plans said the UK will scale back windfall taxes on oil and gas producers as part of efforts to boost investment in the North Sea. Chancellor of the Exchequer, David Hunt, is expected to confirm in the coming days plans to set a "floor" for the 35 percent gas tax, which would apply only when oil and gas prices rise above a certain level. Treasury officials will meet with the oil and gas industry at a forum in Aberdeen on Friday. Before that, the industry has been lobbying for months, while Statoil (Equinor) is also considering whether to continue its large new North Sea project “Rosebank”. The level of the windfall tax is not yet clear. An industry source hinted that the industry wants to set the floor at about 120% of the long-term average price, but he said it is still not reaching an agreement in the industry.

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