Message from Coach
On this week’s market summary:
1️⃣China is increasing its regulatory scrutiny of non-bank financial companies including Ant Group, the Chinese fintech conglomerate expected to raise as much as $30bn in its initial public offering this year. State media reported on Thursday that China’s State Council, or cabinet, has approved regulations that would introduce licensing procedures for financial holding companies and, potentially, capital requirements.
2️⃣Citigroup has become the first US bank to receive a fund custody licence in China, allowing it to provide a core service to global asset managers as they rush to participate in the opening up of the country’s financial sector. The New York-based bank said on Wednesday that the licence — which allows it act as a custodian bank and hold securities on behalf of mutual and private funds in China — had been approved by the China Securities Regulatory Commission.
3️⃣Europe will create thousands of “zombie companies” and lose competitiveness against the US and other countries if it keeps extending state aid to shield the economy from the coronavirus pandemic, Deutsche Bank’s chief has warned. Christian Sewing told a conference in Frankfurt on Wednesday that “Europe threatens to suffer again from its greatest weakness. We are relatively good at counteracting the symptoms of a crisis. But we are slower to adjust permanently to a new normal state.”
4️⃣House prices soared to record highs last month, rising at their fastest pace in 16 years as the stamp duty holiday took effect and buyers sought new homes after months of living in lockdown. The Nationwide Building Society reported on Wednesday that UK house prices rose 2 per cent in nominal terms, despite the country entering its deepest recession on record in the second quarter. The surge in prices stemmed from the reopening of the housing market in May alongside the stamp duty holiday on property values of less than £500,000, announced in July, which runs until the end of next March.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?” .
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics.
Take a look of the summary and WhatsApp us in the group if you have questions.