磐石金融：No 666 - Liu Liu Liu

　　磐石金融有限公司（ BANDS Financial Limited ）在香港注册成立，是一家持有香港证监会（SFC）2号牌照的期货经纪公司，业务涉及中国以外全球大部分活跃期货及期权市场。

　　So, China returns to work today after the three-day National Holiday, and what has the man in the street been reading during his long sojourn？ Well, during the weekend Xinhua reported last Friday‘s Politburo meeting with the following phrases from the meeting itself. “The current economic recovery is uneven, and the foundation is not solid.” And “It is necessary to accurately implement macro policies, maintain the continuity, stability and sustainability of macro policies, and not to make a sudden turn.” Indeed, it seems the 25-member Politburo the most senior policy-making body is agreed to “make good use of the window period with lower growth pressure”. I will interpret as since the agreed target for growth is “above 6%” and is easily achievable there is a window of opportunity to address the Politburo’s laundry list of structural issues. What they are the Politburo does not list specifically, but the phrase “Strengthening the regulation on platform economy” would certainly imply that the regulatory headwind for Chinese big tech is far from over.China watchers will be particularly attentive in the coming weeks to the Chinese bond market and the Chinese local government bond market in particular. In the current climate, the implicit guarantee that many organizations obtain by a loose association with central government may be tested. Indeed, most Local Government Financing Vehicle (LGFV) bonds have an investment grade, but on a stand-alone basis, it is questionable they deserve such a rating. The question China watchers may ask is does the Politburo currently have the appetite to tolerate an actual bond default？ Well, re-reading the phrase “not to make a sudden turn” that answer maybe probably not, but wait to the last moment, well, probably yes. Tomorrow we have a full calendar of Chinese data in which the exports and imports YoY data will give a clue to how hard Beijing is currently pressing on the brake pedal.I note that this is number 666 of the Shanghai letter. While in the west 666 is called the “number of the beast” drawing on chapter 13 of the Book of Revelations of the New Testament, it is associated with bad luck or specifically the devil. However, in China having a different starting point 666 has become a popular text shorthand. Pronounced in Mandarin as “liu liu liu”, it sounds similar to the phrase for smooth going and became a three-letter mnemonic posted by internet gamers in acknowledging each other's skill. Seeping into a wider audience, 666 has taken on the meaning of good luck or a job well done. So, I‘ll adopt the Chinese version, I think it’s appropriate.Of course, 666 is also the sum of all the numbers on a roulette wheel, why I know that, well, that belongs to a different life.Have a good day

　　Joh