Daily Macro Economy News on June 5

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Domestic News

1. MIIT will speed up the construction of 5G industry virtual private networks, deeply implement the 5G application sailing action, further enrich and expand 5G application scenarios, and deepen industrial Internet integration

2. Beijing Municipal Administrative Center recently released its 2023 Major Project Action Plan, which will focus on promoting the construction of 217 major projects with a total investment of about 506.5 billion yuan

3. Guangxi Province introduced new rules to prevent unfinished buildings

4. Small and medium-sized banks open a new round of "interest rate cuts" on deposits, some fixed deposit varieties are adjusted up to 30 basis points

International News

1. OPEC+ conference highlights: The only change this year is Saudi Arabia's 1 million bpd "lollipop"

2. IEA expects to launch benchmarks/guidance on electric vehicle raw material imports by the end of 2023

3. Fierce fighting continues between Sudanese Conflicts in Khartoum, Darfur, and other areas

4. US F-16 fighter jets lift off urgently due to a small plane flying over Washington

More detials:

Domestic News

1. MIIT will speed up the construction of 5G industry virtual private networks, deeply implement the 5G application sailing action, further enrich and expand 5G application scenarios, and deepen industrial Internet integration

The Ministry of Industry and Information Technology (MIIT) will accelerate the construction of 5G industry virtual private networks, further implement the 5G application sailing action, further enrich and expand the 5G application scenarios, and deepen the integration of the industrial Internet. At the same time, launch the prospective layout of the next-generation Internet and other frontier areas, comprehensively promote 6G technology research and development, provide guidance to support enterprises to increase investment in research and development, accelerate the development of artificial intelligence, blockchain, cloud computing, network security and other emerging digital industries.

2. Beijing Municipal Administrative Center recently released its 2023 Major Project Action Plan, which will focus on promoting the construction of 217 major projects with a total investment of about 506.5 billion yuan

Beijing Municipal Administrative Center recently released its 2023 Major Project Action Plan, which will focus on promoting the construction of 217 major projects, with a total investment of about 506.5 billion yuan. Among them, 78 new projects will be started and 139 will be renewed, including key projects such as ensuring the completion of the second phase of the administrative office area and starting the second batch of relocation of municipal administrative organizations.

3. Guangxi Province introduced new rules to prevent unfinished buildings

Guangxi Province has issued new rules to prevent unfinished buildings, clarify that the real estate development enterprises shall not carry out commercial housing sales activities before they acquire the pre-sale permit, and also shall not enter into the intention to sell commercial housing related to the terms of the contract, shall not be charged in any form to the purchaser of the pre-sale price other than the cost as well.

4. Small and medium-sized banks open a new round of "interest rate cuts" on deposits, some fixed deposit varieties are adjusted up to 30 basis points

Recently, a number of small and medium-sized banks issued announcements to reduce the interest rates of current deposits, lump sum deposits & amount withdrawals, fixed deposits by installments and other deposit varieties. This is a new round of "interest rate cuts" on deposits by small and medium-sized banks after the self-regulatory cap on commercial bank call deposits and agreement deposits was lowered on May 15. This round of deposit interest rate cuts is mainly concentrated in the 1-year to 5-year time deposits, the reduction range is concentrated between 5 to 30 basis points, and some time deposit varieties are adjusted up to 30 basis points. Industry insiders believe that the impact of this round of reducing deposit interest rates is mainly from two aspects. Firstly, it is conducive to alleviating the pressure on small and medium-sized bank liabilities and uplifting the net interest margin. Secondly, the subsequent pressure on small and medium-sized banks to collect deposits may be raised.

International News

1. OPEC+ conference highlights: The only change this year is Saudi Arabia's 1 million bpd "lollipop"

1). The voluntary production reduction agreement reached in April, led by Saudi Arabia and Russia, was extended from the end of 2023 to the end of next year.

2). A separate Saudi Arabia production reduction of 1 million barrel per day (bpd) in July on top of the voluntary cut, with a promise to extend it if necessary.

3). The UAE's 2024 production quota is increased by 200,000 bpd as a paper offset, with some West African countries' otherwise unused quotas being adjusted downwards.

4). The 2024 OPEC+ daily production target was adjusted to 40.463 million barrels per day, a downward revision of about 1.4 million barrels per day from current production.

2. IEA expects to launch benchmarks/guidance on electric vehicle raw material imports by the end of 2023

The International Energy Agency (IEA) is expected to introduce benchmarks/guidance on electric vehicle raw material imports by the end of 2023. the IEA wants to limit its member countries' reliance on a single supplier of key raw materials for renewable energy. Lithium, nickel and cobalt will all be targeted by the IEA, which will limit the overall level of procurement by member countries.

3. Fierce fighting continues between Sudanese Conflicts in Khartoum, Darfur, and other areas

Armed clashes between the Sudanese Armed Forces (SAF) and Rapid Support Forces (RSF) in and around the capital Khartoum continued on June 4 local time, with particularly fierce fighting in the southern and eastern parts of Khartoum city and the nearby northern parts of North Khartoum, with both sides using heavy artillery and other heavy weapons. The RSF said the same day that it shot down a Sudanese Armed Forces MiG fighter warplane.

4. US F-16 fighter jets lift off urgently due to a small plane flying over Washington

Comprehensive foreign media reports, US authorities on June 4 ordered F-16 fighter jets to lift off in pursuit of a small Cessna Citation business jet, which intruded into the airspace of the US capital and subsequently crashed. The US government officials said the fighter jets' lift-off triggered a sonic boom that reverberated in the US capital and surrounding areas but did not result in the Cessna Citation plane crashing. Meanwhile, the Cessna was reportedly on autopilot and did not respond to attempts by authorities to establish contact. The F-16 fighter jet investigation found that the pilot had fallen into a coma before the plane crashed.

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