NO.1 Central Bank Conducts 300 Billion Yuan MLF Operation, Interest Rate Cut by 30 Basis Points

On September 25th, the People's Bank of China (PBOC) released information about the Mid-Term Lending Facility (MLF) operations for September. On that day, the PBOC conducted an MLF operation of 300 billion yuan with a winning bid interest rate of 2%, which is a decrease of 0.3 percentage points compared to the previous month.

Commentary: Wang Qing and Feng Lin from the Research and Development Department of Orient Gold & Credit Rating analyzed that the MLF operation interest rate for September is 2.0%, a decrease of 0.3 percentage points from August. Firstly, on September 24th, the central bank announced a reduction of the main policy interest rate by 20 basis points (0.2 percentage points), and "expected that after this adjustment of the policy interest rate, it would lead to a decrease in the MLF interest rate by approximately 0.3 percentage points." Consequently, the MLF operation interest rate was reduced by 0.3 percentage points today, which is in line with market expectations.

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NO.2 State Financial Regulatory Administration: Expanding the Scope of Equity Investment Pilot for Financial Asset Investment Companies to 18 Cities

According to a message on the website of the State Financial Regulatory Administration, the General Office of the State Financial Regulatory Administration issued a notice on expanding the scope of the equity investment pilot for financial asset investment companies. It proposed to extend the pilot scope from Shanghai to Beijing, Tianjin, Shanghai, Chongqing, Nanjing, Hangzhou, Hefei, Jinan, Wuhan, Changsha, Guangzhou, Chengdu, Xi'an, Ningbo, Xiamen, Qingdao, Shenzhen, Suzhou, and other 18 cities.

Commentary: The State Financial Regulatory Administration's expansion of the equity investment pilot scope for financial asset investment companies to 18 cities is another significant step in the deepening of financial reforms. By expanding the pilot, the business scope and risk-bearing capacity of financial asset investment companies can be further enhanced, which will help guide more social capital into the real economy.

NO.3 Offshore Yuan Regains 7.0 Mark Against the US Dollar

On September 25th, the offshore yuan regained the 7.0 mark against the US dollar during trading, marking the first time since May last year.

Commentary: The offshore yuan's recovery to the 7.0 mark against the US dollar demonstrates the increased resilience of the yuan, which is of great significance for boosting market confidence and stabilizing investor sentiment. This phenomenon reflects the international market's recognition of China's economic recovery and will also bring certain benefits to multinational corporations and investors, especially in terms of holding and allocating yuan assets.NO.4 Gold Reaches New Highs, Gold Jewelry Prices Rise to 778 Yuan/Gram

On September 25th, spot gold prices broke through $2,665 per ounce during trading, setting a new record high. In terms of physical gold that day, Chow Sang Sang's 99.99% pure gold jewelry was quoted at 778 yuan/gram, an increase of 8 yuan compared to the previous day's 770 yuan. Lao Miao Gold's 99.99% pure gold jewelry was quoted at 775 yuan/gram, while Chow Tai Fook quoted 773 yuan/gram.

Commentary: The new high in gold prices reflects the strong increase in investors' demand for safe-haven assets amidst global economic uncertainty. The rise in gold prices not only reflects rising inflation expectations but also indicates market concerns about geopolitical risks and other factors. High gold jewelry prices have a significant impact on ordinary consumers, which may suppress demand for gold jewelry and lead them to seek other precious metals or substitutes. The higher price of gold has also prompted the market to reconsider strategies for gold reserves and asset allocation. Overall, gold, as a traditional safe-haven asset, is once again favored, showing a tight global market sentiment, but it is also necessary to be vigilant about the volatility risks that may come with excessively high prices.