Investment Daily Note

Market Highlights

Funds outstanding for foreign exchange at the People's Bank of China (PBOC) and financial institutions in China dropped by the most in history during July, pointing to acceleration of capital outflow, which in turn raised the pressure on PBOC to lower required reserve ratio.

According to latest figures by National Energy Administration, total electricity consumption for July fell 1.3% year-on-year, ending a three-month streak of growth, which reflects immense downward pressureof the Chinese economy; it is highly likely that the authority would loosen monetary policy again in 3Q.