Yang Mama made a big splash and racked up 73.8 billion dollars of gold.

1

The Central Bank of China has bought 73.8 billion dollars!

According to data released by the State Administration of Foreign Exchange, China had foreign exchange reserves of 3.193 trillion US dollars in June and 3.1765 trillion US dollars at the end of May, up 0.52% from the previous month.

Since November 2022, the Central Bank of China's gold reserves have shown 8 consecutive months of growth.The cumulative increase in holdings reached 5.31 million ounces, based on the latest international gold price of 1,920 US dollars/ounce.The cumulative increase in holdings reached 10.2 billion US dollars, or about 73.8 billion yuan.

The World Gold Council believes that if the expected mild recession in the US economy becomes a reality, then gold, which performed strongly in the first half of the year, is likely to stabilize in the second half of the year; if the US economy experiences a clear economic recession, market fluctuations will also increase, driving investors towards safe-haven assets and benefiting gold.

Since this year, ETFs related to the A-share market have increased by nearly 10%.

(The content of this article is a list of objective data and information and does not constitute any investment advice)

Gold has surged 3 times in the past:

The first time was in the 70s of the last century, when the US announced the decoupling of the US dollar from gold. The price of gold ushered in the most spectacular rise in history. It rose from 35 US dollars to 850 US dollars per ounce in 10 years.

The second surge was during the 2008 subprime mortgage crisis, when the price of gold rose from more than $700 to $1,900.

It surged for the third time. In 2020, the price of gold surpassed $2,000 from $1,500.

These three major market events were all driven by major events of the century, such as the decoupling of the US dollar from gold, the subprime mortgage crisis, and the epidemic. Major events boosted the gold market.

2

Nine major photovoltaic companies end size dispute

After more than half a year of deep adjustments, photovoltaic ETFs and new energy ETFs have recently ushered in a return.

For the first time in the photovoltaic industry, nine leading photovoltaic companies, Artes, Dongfang Risheng, Jingao, Jinko, Longji, Tianhe, Tongwei, Yidao, and Zhengtai, jointly announced that they had reached a consensus on the size standardization of medium-sized components of a new generation of rectangular silicon wafers.

The dispute over the size of photovoltaic modules is a sign of controversy within the industry. To a certain extent, size standardization also represents a compromise between leading companies facing a decline in industry sentiment.

According to Tianhe Solar, the unification of size will improve production efficiency, reduce industrial chain costs, bring about large-scale development, and fully unleash the value of the entire industry; it is also conducive to forming a mature industrial chain ecology, reducing electricity costs, and maximizing application-side value.

Longji Green Energy said that whether it is an upstream material manufacturer or a downstream system integrator, the whole industry chain is deeply affected by frequent changes in size. Standardization of components has become a key factor affecting the healthy development of the entire industry, and standardization of component sizes will surely have a major impact on the future development of the industry:

First, it can optimize the supply structure of the industrial chain and reduce specification switching losses and structural price fluctuations caused by adapting to different component sizes; second, it can greatly reduce the inventory of all upstream components. Production lines no longer need to consider the complex compatibility of various devices, which is conducive to improving capacity utilization and promoting cost reduction throughout the industry chain; third, it is conducive to reducing power plant design costs, supply risks and product selection workload for end customers; fourth, it facilitates the later operation and maintenance management of power plants and product replacement and transformation.

The photovoltaic industry has been making frequent moves recently, and the two leading photovoltaic silicon wafers have drastically lowered their prices.

TCL Central announced the latest monocrystalline silicon wafer price on July 9, down nearly 30% from the highest price quoted on June 1. Among them, the prices of the N-type 130 μM210 and 182 were 3.84 yuan and 2.90 yuan respectively, down 29.54% and 25.06% respectively from 5.45 yuan and 3.87 yuan on June 1.

Longji Green Energy updated the price of silicon wafers at the end of June. The latest price for the P-type M10 150 μm thickness monocrystalline silicon wafers was 2.93 yuan/piece. Compared with the 4.36 yuan/sheet announced on May 29, a decrease of 32.8%.

Industry institutions believe that as upstream prices gradually fall to the bottom and restructure, there is little room left for subsequent price reductions. It is expected that silicon wafers will adjust operating levels through continuous rolling to cope with their own inventory levels and pricing strategies.

Star fund managers Zhao Wei, Cui Chenlong, and others said that most of the risks in the new energy sector have been released, but it will still take time for industrial supply to clear. As subsequent demand improves sequentially, some companies leading the middle and downstream links and new technology directions with relatively good supply patterns have high investment value.

3

Can't watch out on US stocks? Foreign giants are optimistic about the Chinese market

Chief Economist at SiruiHong KuiMentioned at the investment opportunity sharing session in the second half of the yearIt's impossible to empty US stocks now because this market is too strong.

Hong Yu admits that the profits of US listed companies in the first quarter exceeded expectations. Although fundamentals, bank credit tightening, sales growth, declining workers' wage growth, and rising channel inventories all tell you that historically, it is bound to decline. Basically, there is no way for you to beat it now. In a market with such poor fundamentals, its stock price is so strong; many people wonder if it will probably decline in the fourth quarter of this year, but American residents' savings are about 600 billion dollars, which is enough for him to spend until the end of the year.

Foreign-funded institutions have successively released mid-year forecasts for 2023. Despite sluggish market sentiment, several major foreign-funded institutions are relatively optimistic about the Chinese market.

BlackRock, the world's largest asset management agency, views the Chinese stock market as “overmatched.” Lu Wenjie, chief investment officer of BlackRock Fund, said that on the one hand, since global investors are currently clearly underpaying for the Chinese market; on the other hand, China's corporate profits will still grow in double digits over the next 12 months. This level is also rare in the world. Furthermore, the average price-earnings ratio of Chinese stocks is only 10 times or 11 times, making it one of the cheapest markets in the world.

Regarding the outlook for A-shares in the second half of the year, Lu Wenjie hopes to see further economic recovery. This is the basis for the relatively good performance of the stock market. Currently, the market does not have much incremental capital, so he is mainly seizing structural opportunities.

Speaking about the Chinese economy, Fidelity, another major asset management giant, pointed out that after experiencing a good start, China's economic recovery has slowed somewhat, corporate profit expectations have declined overall, and Chinese consumers' enthusiasm for consumption has yet to recover, but China's economic rebound is not over yet, and it will take some time for consumer confidence to recover. Fidelity further stated that it is still seeing some positive factors, including loose monetary and fiscal policies, and a more favorable regulatory environment.

Zhao Yaoting, a global market strategist at Invesco Asia Pacific, believes that the valuation of Chinese stocks is very attractive. Currently, it is at the tipping point between a “landing with twists and turns” and a “smooth landing.” This has created a good investment environment, and investors have an opportunity to rethink how to allocate their investments.