Global trade market is ever-changing with new challenges and opportunities. To facilitate your business planning, we have summarised key happenings last month for easy reading:
China-Indonesia's Jointly Constructed Jakarta-Bandung High-speed Railway Opened
On September 7, the China-Indonesia jointly constructed Jakarta-Bandung high-speed railway opened, reducing the fastest travelling time between the two locations from 3.5 hours to 40 minutes. This is the first high-speed railway in Indonesia and Southeast Asia, as well as a flagship project of pragmatic cooperation between China and Indonesia under the Belt and Road Initiative and Indonesia’s “Global Maritime Fulcrum” concept. In early October, the railway will officially start ticket sales and commercial operations.
European Central Bank Raised Interest Rates to Historic Highs
According to a September 14 coverage on the Financial Times website, the European Central Bank raised interest rates to historic highs to curb consumer prices, but the euro fell after the bank signaled that its tightening cycle was ending. The ECB raised its main refinancing rate, deposit facility rate, and marginal lending rate by 25 basis points each to 4.5%, 4%, and 4.75%, exceeding market expectations. This is the bank’s 10th consecutive rate hike since July last year.
People's Bank of China and Foreign Exchange Regulator Met With Foreign Financial Institutions and Enterprises
On September 18, the People’s Bank of China and the foreign exchange regulator held a meeting with foreign financial institutions and enterprises, including JPMorgan Chase, HSBC, Deutsche Bank, and Tesla. The meeting covered various fields in finance and mixed industry, showing renewed efforts to boost foreign trade and attract foreign investment. Pan Gongsheng, Secretary of the Party Committee and Governor of the People’s Bank of China, and Director of the State Administration of Foreign Exchange, said: “Attracting and using foreign investment is an important part of promoting a high level of opening up and building a new open economic system.”
US Federal Debt Surpassed $33 Trillion
According to an update on the US Treasury Department’s website on September 18, the scale of US federal debt has exceeded $33 trillion, reaching $33.04 trillion. The US national debt is on an accelerating upward trend. Treasury Secretary Janet Yellen said on the 18th that the current federal debt is still “within a controllable range,” but measures should be taken to reverse the trend of debt increase. Earlier, President Joe Biden had signed a bill on the federal government’s debt ceiling and budget on June 3. The bill delays the effective date of the debt ceiling to early 2025 and limits spending for the 2024 and 2025 fiscal years. This is the 103rd adjustment of the US debt ceiling since World War II.
Hong Kong's Export Sentiment Softened from 2-Year High
Hong Kong’s export sentiment, one indicator of the city’s economic recovery, softened after the second quarter of the year, as reflected from the HKTDC Export Index 3Q23 survey conducted by HKTDC Research. This business confidence survey, designed to gauge the prospects of the near-term export performance of Hong Kong traders, recorded a two-year high export index last quarter. Economic risks remained the top concern.
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