policy

The State Taxation Administration of China responded to the recent discussions on taxing insurance income in Hong Kong, stating that Chinese tax residents are required to fulfill their tax obligations on global income according to the law, and that overseas insurance income also falls within the scope of taxable income. This is not a new policy and is not specifically aimed at the Hong Kong insurance market. The tax authority indicated that residents must declare and pay taxes on overseas insurance income and other investment income in accordance with the law, and the relevant rules treat overseas income from different countries and regions equally.Yesterday, Caixin reported that with the normalization of CRS information exchange, Chinese tax authorities can now fully obtain data on dividends and cash value from overseas insurance policies, gradually filling the gaps in tax administration. Currently, the taxation of insurance income from overseas sources has been initiated.

In July, the United States unexpectedly lost 23,000 jobs, far below the expected increase of 80,000. The increase in June was also revised down to only 20,000. Despite the weak job market, the unemployment rate unexpectedly fell from 4.2% to 4.1%. "Fed mouthpiece" Nick Timiraos commented that in July, the U.S. unemployment rate dropped to 4.09% because both the number of job seekers and the number counted as unemployed decreased; this data brought the unemployment rate to its lowest level in two years.Analysts pointed out that this disappointing report has reignited concerns about the labor market and may complicate the Federal Reserve's interest rate decisions, as policymakers need to seek a balance between weak employment and persistent inflation. As a result, market expectations for interest rate hikes quickly receded.Affected by this, U.S. stock index futures surged rapidly, with Nasdaq futures up 0.79% for the day, S&P 500 futures up 0.39%, and Dow futures up 0.27%. U.S. Treasury prices soared, with the yield on the 10-year U.S. Treasury currently down 4.29 basis points, reported at 4.627%; non-U.S. currencies generally rose, with the dollar against the yen briefly falling 80 points, reported at 157.72.At the same time, the U.S. Dollar Index DXY briefly fell nearly 30 points, reported at 99.67. Spot gold briefly rose about $40, reported at $4,351.43 per ounce.

SK Hynix announced a dividend of 375 Korean won per share and will announce the shareholder return policy plan in the third quarter, considering additional shareholder return measures.

U.S. Senator Elizabeth Warren has requested the U.S. Department of Commerce to explain its policy towards the UAE, which involves granting the UAE-related entities more access to AI chip exports after the UAE invested in the Trump family-supported cryptocurrency project World Liberty Financial.In a letter to Commerce Secretary Howard Lutnick, it was mentioned that an entity in Abu Dhabi invested $500 million in World Liberty Financial in January; another UAE-related company used World Liberty's USD 1 stablecoin to complete a $2 billion investment in the cryptocurrency exchange Binance. The U.S. Department of Commerce previously reclassified the UAE to Country Group A:5, allowing it to receive more license-free exports, including advanced chips. The department also stated that it would "actively review" license applications for exporting chips and servers to the UAE entity MGX involved in the $2 billion investment in Binance.Warren stated that the actions of the Department of Commerce raise significant questions about how the President's cryptocurrency business interests may affect institutional operations and national security. In June, several senators, including Warren, requested a hearing on the $500 million transaction involving World Liberty Financial.

According to Jinshi reports, Federal Reserve Governor Cook stated that so far, the policy has not led to significant unemployment.

According to Fox News, the U.S. Treasury Department has removed certain sanctions related to Iran from its website. A Treasury official stated, "This does not represent any change in U.S. policy toward the Iranian government, the Islamic Revolutionary Guard Corps Quds Force, any designated terrorist organizations or their supporters or agents. Today's removal is part of normal administrative procedures and was conducted after reviewing specific circumstances related to Fly Baghdad."Earlier, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) published an "Update on the Revocation of Terrorism Designation," lifting certain sanctions related to Iran, including removing Fly Baghdad from the sanctions list. Fly Baghdad was previously listed on the anti-terrorism sanctions list due to its association with the Iranian Islamic Revolutionary Guard Corps Quds Force.

According to Jinshi reports, the White House does not plan to publicly release its new framework for evaluating advanced artificial intelligence models; relevant details will only be provided to companies participating in the process. Companies, policymakers, researchers, and U.S. allies that are not involved in the process will not be able to understand how the government plans to implement one of its key artificial intelligence policies.The White House held a meeting with industry representatives to discuss the recently completed framework, and companies that were not invited to the meeting still do not understand the content of the framework.

According to Jinshi News, strategists indicate that the U.S. Treasury may use euros instead of dollars to fund its yen purchasing plan, in order to avoid depreciation of its own currency and to prevent its strong dollar policy from being questioned.David Forester, a senior strategist at Crédit Agricole Bank in Singapore, pointed out that the U.S. maintains a strong dollar policy and does not want to be seen as trying to gain a competitive advantage by weakening its own currency.Jason Wang, a currency strategist at the New Zealand Bank in Wellington, stated that this approach may be less transparent, but the ultimate effect is the same.

According to Jinshi, the People's Bank of China held a work meeting for the second half of 2026, deciding to continue implementing a moderately loose monetary policy. The State Administration of Foreign Exchange also held a meeting, stating that it will continue to steadily expand the institutional opening of the foreign exchange sector.In addition, the China Cotton Association opposes U.S. sanctions against Chinese cotton textile enterprises, while the State Grid indicated that electricity loads in multiple regions have reached historical highs and will take multiple measures to ensure power supply.

According to Jinshi, the People's Bank of China held a work meeting for the second half of 2026, stating that it will continue to implement a moderately loose monetary policy. The meeting emphasized the comprehensive use of various monetary policy tools to maintain ample liquidity and support the effective financing needs of the real economy.By the end of June, the total social financing scale increased by 7.4% year-on-year, and the broad money supply increased by 8% year-on-year.

According to Jinshi reports, several important events occurred domestically and internationally yesterday. The China Securities Regulatory Commission approved the registration of coking coal options, and the Beidou satellite navigation system completed its in-orbit upgrade. The State Administration for Market Regulation launched price compliance guidance for the photovoltaic industry, and the three major telecom operators will stop issuing cards through third-party internet channels.On the international front, the Bank of Japan maintained its interest rates, and the South Korean KOSPI index recorded its largest single-day increase in history. Hawkish pressure within the Federal Reserve is rising, with several officials supporting interest rate hikes.

According to Jinshi reports, Federal Reserve Chairman Waller stated that he is considering reducing the frequency of Federal Reserve policy meetings.

According to Jinshi reports, Bank of Japan Governor Kazuo Ueda stated that the Bank of Japan is expected to continue raising interest rates and will adjust the intensity of its easing policy based on economic, price, and financial conditions.

According to Jinshi reports, Bank of Japan Policy Board member Takeda Hajime proposed raising the short-term interest rate target to 1.25%.

According to Jinshi reports, Dong Ximiao, chief economist of Zhailian, expects that a reduction in the reserve requirement ratio and interest rates may be implemented in the third quarter. If the momentum for economic recovery weakens marginally in the second half of the year, a timely reduction of the policy interest rate by 10 to 20 basis points cannot be ruled out.Regarding the reserve requirement ratio, there is still room for a reduction of 25 to 50 basis points within the year, with the implementation window possibly arranged during peak bond supply or periods of tight liquidity. The People's Bank of China will increasingly utilize structural monetary policy tools to strengthen the regulation of market liquidity.

According to The Block, the Solana Policy Institute in the United States has sent a letter to the bipartisan leaders of the Senate, urging them to push the Clarity Act digital asset bill into the voting process before the congressional legislative window closes in early August. The bill aims to provide regulatory clarity for U.S. crypto developers, institutions, and consumers, and establish a "non-money transmission" safe harbor for non-custodial software developers through the Blockchain Regulatory Certainty Act.The latest Republican version also adds ethical provisions that prohibit federal officials and their spouses from issuing or sponsoring digital assets, with the relevant provisions set to expire on January 20, 2029. SPI stated that the bill helps prevent "overreach" of regulation and criminal enforcement against software developers, maintaining the momentum for domestic construction in the United States.

Circle's Senior Director of Strategy and Policy for the EU, Patrick Hansen, pointed out that since the implementation of the EU's Markets in Crypto-Assets Regulation (MiCA), approximately 35 electronic money tokens (EMT) from 21 institutions have obtained compliance certification, with banks and electronic money institutions entering the market, showing a good momentum for local issuance.However, among the top 50 stablecoins globally, currently only USDC, USDG, and EURC meet MiCA requirements, while the rest remain outside the regulatory framework, leaving EU users facing a dual dilemma of lack of protection or being forced to cut off access. Hansen believes that for MiCA to truly become a global regulatory blueprint, it must achieve two goals simultaneously: first, to promote local EMTs to go global with competitive systems; second, to establish a recognition mechanism for compliant stablecoins from abroad, attracting global issuers into the MiCA regulatory framework, rather than making local issuance the only entry path.

Michael Kratsios, the Director of the White House Office of Science and Technology Policy, stated that information has been obtained showing that Moonshot AI is distilling Anthropic's Fable model by building a large-scale internal platform for the development of its K3 model, and has switched access methods multiple times to evade detection. He also pointed out that Moonshot AI has purchased GB300 servers and accessed GB300 equipment in Thailand, which may be used for training AI models. Kratsios stated that the U.S. supports legitimate distillation and open innovation but opposes the theft of U.S. technology through large-scale secret industrial distillation methods. Currently, Moonshot AI has not publicly responded to this.

Artificial intelligence company Anthropic announced on Wednesday that it will make an additional donation of $20 million to the bipartisan advocacy organization Public First Action, bringing its total commitment to $40 million. Anthropic stated that the decision for the additional donation stems from the continuous enhancement of AI model capabilities (including its self-developed Mythos model) and the potential risks it brings.Public First Action is a 501(c)(4) nonprofit organization dedicated to public education on AI transparency and safety. The organization is associated with three super political action committees (super PACs) and plans to support candidates advocating for AI safety across both parties. Anthropic emphasized that the donations are solely for supporting Public First Action's policy mission and cannot be used to influence the election of specific candidates.In a statement, Anthropic noted that AI policy decisions will impact various aspects of public life, including the labor market and national security, and the company hopes to promote "flexible regulation" to manage risks while reaping the benefits of AI. Currently, the super PAC "Leading the Future," which advocates for rapid AI development and light regulation, has received significant funding from supporters including OpenAI co-founder Greg Brockman and venture capital firm a16z. As AI increasingly becomes a topic in elections, public education and lobbying efforts by advocacy groups are continuing to ramp up.