At The Same Time, The Last Week Of China And America Was Busy At The Same Time.

Last weekend, the global financial market ushered in two heavy news. The CSRC changed hands and the US government agreed to temporarily close the government shutdown.

Meanwhile, this Tuesday, the Federal Reserve will open the first interest conference in 2019. It is certain that the rate hike is suspended.

The CPC Central Committee decided to appoint Comrade Yi man man as secretary of the CPC Committee of the China Securities Regulatory Commission to remove Comrade Liu Shiyu's position as secretary of the Party committee of the China Securities Regulatory Commission.

The State Council decided to appoint Comrade Yi Hui to be the chairman of the CSRC and to remove Comrade Liu Shiyu's post as chairman of the CSRC.

The 54 year old Yi man man, who has been in the industrial and commercial bank system for the past thirty years in his career, has been practicing at the grassroots level for a long time, and finally becomes the helmsman of the "cosmos".

From the "old bankers" to the capital market, it will easily be the first. The state-owned big banks have trained many chairmen to the SFC, such as Zhou Xiaochuan and Guo Shuqing, who came from CCB and Shang Fulin before the chairmen of the SFC. They were promoted to the chairmen of the SFC from the governor of ABC and Xiao Gang served as chairman of the SFC for 10 years.

However, compared to those of the above who have served as the chairman of the SFC before the chairman of the SFC, the biggest difference between them is that he has been infiltrating the market for a long time, and has a deeper understanding of the operation of commercial banks and the operation of financial markets.

Starting in the fourth quarter of 2018, the Shanghai Stock Index saw a drop of 2500 points, which is also considered by the market to be the bottom of the regulatory policy.

Not only is Liu Shiyu, but for a while, even Vice Premier Liu He, who is in charge of the financial market, has made a public speech to stabilize the market sentiment.

In addition, regulators have repeatedly promised to push ahead with many stable market policies as soon as possible.

It is easy to find that in the measures issued by the SFC to stabilize the market, the regulatory policies formulated since Liu Shiyu took office began to turn around.

As of October last year, the SFC has issued more than 10 regulatory questions and answers or policy documents, including the price adjustment mechanism, the identification of operating assets, the rapid audit and matching fund collection, and even the interval between the IPO companies being backdoor. Some market views clearly believe that the publication of this series of policies clearly means that the market of mergers and acquisitions will have a more relaxed regulatory orientation.

In this process, refinancing has also ushered in a certain degree of deregulation.

In November 9th last year, the SFC issued the "regulatory questions and answers - Guidance on regulating the financing behavior of listed companies", loosening the use of fund-raising funds and loosening the time interval for refinancing of listed companies.

Making the market clearer and aware that the policy is turning around is a statement issued by the SFC in October 30th last year.

The statement clearly stated that the SFC will optimize paction regulation, that is, reduce paction resistance and enhance market liquidity.

Reduce unnecessary intervention in the trading session, let the market have clear expectations for supervision, and allow investors to have fair trade opportunities.

Policy guidance and market performance seem to be back to Liu Shiyu before taking office, but this time it is Liu Shiyu himself who will take the responsibility of taking over the SFC.

In recent years, the three chairmen, from Guo Shuqing to Xiao Gang, from Xiaogang to Liu Shiyu, have three different styles. The direction of supervision is quite different.

But no matter who is in charge of the SFC, some core issues of the capital market are always in the process of solving.

Every time the market thinks the chairman is the answer, the drastic change of the market pushes them to the cusp of the storm.

Now that Liu Shiyu is stepping down and leaving the capital market as an example, how will the capital market go to the new chairman of the SFC?

The closure of the US government is officially over.

"Today, I am proud to announce that we have reached an agreement to temporarily end and reopen the federal government."

On January 25th, President Trump delivered a speech at the rose garden of the White House.

After the bill passed by the Senate and house of representatives in the United States, Trump formally signed the bill. The US government will reopen the door from three weeks to February 15th in January 28th.

The house of Representatives unanimously passed an oral vote and decided to provide funding for a series of federal agencies by February 15th.

But this series of funds does not include US $5 billion 700 million border wall funds.

Prior to this, Trump insisted on requisites to restart the federal government's precondition for building a wall to provide $5 billion 700 million source of funding.

It is worth noting that if the Congress and Trump fail to reach a further agreement within three weeks, the US government may end up in mid February.

In the past 21 days, the two parties will resume discussions on the $5 billion 700 million repair wall. If the two parties still fail to reach a consensus by February 15th, they will not rule out a state of emergency or allow the government to close again.

Trump said this is not a concession.

It is taking care of millions of people who have been seriously hurt by the closure of the government.

Up to now, the economic loss of government shutdown has exceeded 6 billion, which is higher than the $5 billion 700 million border wall fund Trump requested.

The long-term suspension resulted in arrears of wages for some 800 thousand federal workers.

Trump also said federal workers who did not get paid for weeks would soon be paid.

"I will make sure that everyone can receive a salary as soon as possible."

The current round of government shutdown does not seem to have an impact on US stocks. Dow and S & P 500 index rose more than 10% during the US government shutdown.

The Federal Reserve will hold its first interest conference in 2019 this Tuesday.

According to media reports, the recent decision of the Fed officials to close the table ahead of schedule may be the core issue of the January 29th Conference on interest rates.

Last Friday, the Wall Street Journal reported that Federal Reserve officials are about to stop deciding when to reduce their balance sheet bonds. This is a key factor for investors to focus on how far the Federal Reserve will tighten monetary policy.

The expansion of the balance sheet took place during the three rounds of bond purchase which began during the financial crisis and ended in October 2016, with a balance sheet of over $4 trillion and 500 billion.

The reduction began in October 2017.

Wall Street is worried that this move will increase the market pressure caused by a series of interest rate hikes since 2015.

The report said that the FOMC meeting this week may further consider when to end the move.

In recent meetings, the decision-making body has been weighing off the balance sheet. Officials pointed out in December last year that as the operation proceeds, the Fed's benchmark fund interest rate may become unstable.

"Many heavy tasks have been completed," George, chairman of the Kansas Fed chairman, told the Wall Street journal in January 15th.

We are satisfied with the Committee. They have fully understood the part of all activities. "

Although Fed officials initially believed that the reduction in the balance sheet would not have much impact on the market, that was not the case.

The US stock market opened higher on Friday, and the three major U.S. stock indexes rose nearly 1% in the first hour after opening.