From the Editor

China’s factory activity shrank for a third month in a row in July, official data showed on Wednesday. And the country’s non-manufacturing activity expands at slower pace in July. China’s central bank surprised markets by cutting an unscheduled one-year policy rate. China’s industrial profits rose 3.6% year on year in June, data from the National Bureau of Statistics (NBS) showed on Saturday.

The Bank of Japan lifted its target policy rate to 0.25% from a range of zero to 0.1% on Wednesday. The euro zone’s economy grew 0.3% in the second quarter, official data showed on Tuesday. Germany’s economy, however, contracted in the second quarter. Federal Reserve held its benchmark interest rate steady after a two-day policy meeting ended on Wednesday. 

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International Finance Forum establishes Artificial Intelligence Committee

 

 

 

 

 

 

The International Finance Forum (IFF) announced the establishment of its Artificial Intelligence (AI) Committee during an inaugural webinar on Monday in efforts to integrate AI technologies, foster innovation and collaboration and promote dialogues in the development of AI.  

The Committee is comprised of leading experts in AI, legal veterans, industry experts, academics and practitioners. The Committee will serve as a pioneering dialogue mechanism that will bring together a diverse array of AI stakeholders to discuss and share key AI advancements.

In his opening remarks, IFF Executive Vice President Zhu Xian said: “under the esteemed leadership of the International Finance Forum, this Committee serves as a centralized platform for exchange, fostering collaboration among leaders in technology, finance, academia, and policy-making. Our collective aim is to harness the transformative power of AI while navigating its implications for the future of our global economy and society.” 

The Committee will foster research and development in AI applications in various sectors, help establish ethical standards and guidelines, promote international collaboration and dialogues and share insights into AI technologies and integration with a broader audience.

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IFF Co-Chair Han Seung-soo pens Op-Ed for China Daily 

 

 

 

Han Seung-soo, IFF Co-Chair, Chair of the Council of Presidents of the United Nations General Assembly and former Prime Minister of the Republic of Korea, penned an Op-Ed for China Daily on Tuesday, in which he argues that collaboration is key to sustainable growth. 

Han wrote that the challenges posed by climate change are becoming more and more urgent, and there is already a global consensus that only by transforming the development paradigm from quantitative growth to sustainable development and jointly achieving a more rapid energy transition can we help the human race and our future generations.

“There are some important experiences that the world can learn from China's success, including the key instruments of green finance. For example, green bonds that are specifically earmarked for funding projects with environmental benefits, green loans that are granted to projects which contribute to environment sustainability often with favorable terms, and green investment funds that pool capital from multiple investors to finance a diversified portfolio of environmentally sustainable projects and companies.

In this connection, I am very pleased that recognizing the importance of the role that green finance plays in sustainable development and in order to reward innovative green finance solutions worldwide, the International Finance Forum launched the IFF Global Green Finance Award in 2020. The award leverages IFF's global resources and aims to support to achieve the sustainable development goals.”

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IFF holds Mid-Year Membership Meeting

 

 

 

 

 

 

 

The International Finance Forum held its Mid-Year Membership Meeting on July 25, which gathered IFF General Assembly members, Board of Directors. Executive Committee, as well as members of the Academic Committee. 

Steven Alan Barnett, Senior Resident Representative in China of the International Monetary Fund (IMF), joined the meeting and presented an in-depth analysis of China's economy and growth prospects. 

Lin Jianha, IFF Executive Vice President, former Secretary of the International Monetary Fund, delivered the IFF 2024 Mid-Year Report to the General Assembly.

General Assembly members gave positve feedbacks on the Reprot and expressed wishes for more focus on some of the thorny issues faced by the world.

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China News

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 China’s factory activity contracts in July

China’s factory activity shrank for a third month in a row in July, official data showed on Wednesday.

The official purchasing managers’ index (PMI) fell to 49.4 in July from 49.5 in June. The 50-mark separates growth from contraction.

The sub-index of production fell to 50.1 while new orders fell to 49.3%.

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   China’s non-manufacturing activity edges down in July

China’s non-manufacturing activity expands at slower pace in July, according to official data.

The non-manufacturing purchasing managers’ index came in at 50.2 in July, down from 50.5 in June. The 50-mark separates expansion from contraction.

The sub-index for construction activity fell to 51.2 while the services PMI dipped to 50.

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 China surprises with one-year policy rate cut

China’s central bank surprised markets by cutting an unscheduled one-year policy rate.

The People’s Bank of China (PBOC) lowered the medium-term lending facility (MLF) interest rate to 2.3% from the previous 2.5%.

The central bank issued 200 billion yuan in one-year loans via MLF at on interest rate of 2.3%.

The MLF was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the PBOC using securities as collateral.

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 China’s industrial profits rise 3.6% in June

China’s industrial profits rose 3.6% year on year in June, data from the National Bureau of Statistics (NBS) showed on Saturday.

Industrial profits rose 3.5% in the first half of the year compared to the same period a year ago.

NBS statistician Wei Ning attributed the profits growth to rapid industrial production growth and easing in factory-gate price declines.

 

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China’s June international trade in goods and services up 2%

China’s international trade in goods and services went up 2% year on year in June, data from the State Administration of Foreign Exchange showed.

China exported $301.1 billion worth of goods and services while imports amounted to $260.4 billion.

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International News

 

 

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Bank of Japan raises interest rates to 0.25%

Japan’s central bank raised interest rates on Wednesday, the second raise since 2007.

The Bank of Japan lifted its target policy rate to 0.25% from a range of zero to 0.1%.

It is the second raise since March when the bank raised interest rates for the first time since 2007.

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Euro zone economy grows 0.3% in Q2

The euro zone’s economy grew 0.3% in the second quarter, official data showed on Tuesday.

The euro zone’s GDP grew 0.6% in the second quarter compared to the first quarter, data from Eurostat, the statistical office of the European Union showed.

Ireland recorded the highest increase of 1.2% among the EU member states.

In a separate data released by Eurostat, euro zone inflation rose to 2.6% in July, up from 2.5% in June.

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German economy shrinks in Q2

Germany’s economy contracted in the second quarter, official data showed on Tuesday.

The country’s gross domestic product (GDP) dropped by 0.1% year on year in the second quarter.

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Canada’s economy grows 0.2% in May

Canada’s economy grew 0.2% in May, Statistics Canada said on Wednesday.

The manufacturing sector drove growth in May for a second consecutive time, according to Statistics Canada.

The retail sector was the largest drag on growth in May with most retail sub-sectors going down in the month.

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Fed holds rates steady

Federal Reserve held its benchmark interest rate steady after a two-day policy meeting ended on Wednesday.

In a statement, the Fed said “the risks to achieving its employment and inflation goals continue to move into better balance”.

Speaking at a news conference, Fed Chair Jerome Powell indicated that rate cut could come as soon as September.