Investment Daily Note

Market Highlights

Minutes of FOMC's last policy meeting showed that most officials attending the meeting agreed the conditions for a rate hike are not yet met but the timing was nearing, and they thoughtit would take more evidence to confirm that inflation is on track to their target of 2%; the meetings somehow show that chance of a rate hike in September has diminished.

People's Bank of China conducted RMB110bn of medium-term lending facility (MLF) with 14 financial institutions on Wednesday, injecting over a hundred billions of liquidity into the market. We think if the liquidity in China continues to be tight, more monetary easing actions would come in the near term.