Weekly Financial Report: May 26 to June 1

Key Highlights:

• Zhang Guoqing: Platform enterprises should utilize traffic resources to support high-quality products and services, achieving mutual benefits with merchants, new employment form workers, and consumers.
• Opinions on Improving the Modern Enterprise System with Chinese Characteristics were released on the 26th, outlining 19 specific measures focused on institutional innovation and emphasizing the role of capital markets in enhancing corporate governance.
• Documents issued by the Central Committee and the State Council: By 2027, the trading systems for carbon emissions and water rights will be fundamentally improved, and the pollution rights trading system will be established and refined.
• Adhering to the principle that those who contribute more should earn more, three departments will increase salary incentives for skilled workers in state-owned enterprises.
• This year, the sales revenue from exchanging old consumer goods for new ones has surpassed 1 trillion yuan.
• Trump announced a plan to increase import tariffs on steel and aluminum from 25% to 50% starting June 4.
• Eight OPEC and non-OPEC oil-producing countries have decided to increase daily production by 411,000 barrels starting in July.

Domestic News

• On May 27-28, Zhang Guoqing, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted research in Shanghai to promote the healthy development of the platform economy and market regulation. He emphasized the significant role of the platform economy in facilitating innovation and strengthening the domestic circulation.
• The document titled Opinions on Perfecting the Modern Enterprise System with Chinese Characteristics was released on the 26th. This programmatic document for the new era contains eight sections and 19 specific measures, focusing on improving innovation incentive systems.
• The Opinions on Improving the Market-oriented Allocation System for Resource and Environmental Factors suggest that by 2027, the trading systems for carbon emissions and water rights will be fundamentally refined, and the pollution rights trading system will be established.
• The Ministry of Commerce held a conference on the advancement of the national intelligent supply chain construction, emphasizing the need to seize opportunities from the digital economy and artificial intelligence.
• The State Administration for Market Regulation released a draft compliance guideline for network trading platform fees, inviting public feedback.
• The Ministry of Human Resources and Social Security, Ministry of Finance, and the State-owned Assets Supervision and Administration Commission jointly issued a notification to enhance salary distribution incentives for skilled workers in state-owned enterprises.
• According to the National Bureau of Statistics, from January to April, the profits of industrial enterprises above designated size increased by 1.4% year-on-year.
• The Ministry of Industry and Information Technology released the Computing Power Interconnection Action Plan, aiming to establish a robust standard system by 2026.
• On May 29, the Hongdao Operating System, a new type of industrial operating system, was officially launched, marking significant progress in the field of robotics software in China.
• The State Administration of Foreign Exchange announced that in April 2025, the import and export scale of goods and services reached 43,706 billion yuan, a year-on-year increase of 6%.
• The China Automotive Industry Association announced the importance of maintaining fair competition in the rapidly developing new energy vehicle industry, highlighting the negative impacts of “price wars.”
• On May 30, the China Securities Index Co., Ltd. announced adjustments to the sample indices for the CSI 300, CSI 500, and others, with the changes taking effect on June 16.
• The Shanghai Stock Exchange and China Securities Index Co., Ltd. will officially launch the Shanghai Stock Exchange 580 Index on June 16, which will reflect the performance of smaller market-cap securities.
• According to the National Bureau of Statistics, the manufacturing Purchasing Managers’ Index (PMI) for May was 49.5%, indicating an improvement in the manufacturing sector’s performance.
• From January to April, light industry enterprises above designated size achieved a revenue of 7.35 trillion yuan, an increase of 4.9% year-on-year.
• As of May 31, the total sales generated from the exchange of old consumer goods for new ones exceeded 1.1 trillion yuan.

International News

• On May 30, President Trump announced plans to raise the import tariffs on steel from 25% to 50% to protect the domestic steel industry.
• The U.S. Court of Appeals for the Ninth Circuit upheld a temporary injunction that prevents federal agencies from implementing mass layoffs and restructuring plans.
• The U.S. Commerce Department released revised data showing that the GDP for Q1 2025 contracted by 0.2%, highlighting the uncertainties caused by U.S. tariff policies.
• According to the Bank of Japan, its holdings of government bonds have reached record losses, reflecting a significant decline in market demand for long-term bonds.
• OPEC announced that eight oil-producing countries will increase oil production by 411,000 barrels per day starting in July.