北京放宽购房限制以提振楼市

And it's 9 a.m. in Shanghai, Shenzhen and here in Hong Kong. You're watching the China show? I'm Stephen Engle with this man right here, David English. It's the England English show again today. Happy Monday morning to all of you are counting down to the opening of greater markets as, uh, uh, the approach is looking like this, which stops across the region on the up, uh, as disappointing U.S. jobs data erodes the short term case for fed interest rate hikes.

Oil extending gains with a Strait of Hormuz deal remaining elusive. Now we'll be watching China's AI players at the open after reports that ByteDance is working on what could be the country's biggest AI model in an effort to leapfrog its rivals. And on the weekend, China's inflation print comes in much cooler than expected, reflecting easing pressure from energy shocks as well as continued weakness in the underlying economy.

And Beijing joins Shanghai and easing homebuying restrictions in a bid to revive the Chinese capital's sluggish property market. Good morning and welcome to the program. We're looking at a lot of different sectors today as we approach the open. So we talked about oil prices. We're looking at energy as far as that is concerned. Brent price is 84 bucks right now. As we kick off a fresh trading week. We are of course also having to discount a softer U.S. dollar following that jobs report on Friday.

Uh, U.S. jobs report on Friday. And certainly it does going to be, uh, fairly compelling, even more so to watch that, uh, those Treasury auctions at the back end of the week, I think we have ten and 30 year, uh, auctions in the Treasury market. Uh, S&P futures are a touch softer. We are a touch stronger. Uh, the regional benchmark. Speaking of fed, uh, fed rate hike bets, uh, here's a two day look at where we are in Treasury yield.

And you can see, of course, quite visibly when the jobs data came out. Similar look, as far as gold prices go and really being treated as a risk asset over three days gold is at 4400. Just easing back a little bit from that level. Certainly gold stocks will be tracking going into the day today right. Equity markets just keep in mind Singapore is on holiday. Uh you do have a couple of markets of course, coming online like Malaysia, uh, Taiwan, as you can see on your screens better by 1.4% Nikkei uh, 1.3.

So we are just over the hump in as far as earnings in Japan, uh, are concerned. And we go into the thick of things as far as Greater China as far as we are concerned. Right. A50 futures coming up on your screens. Dollar China. It's going to be critical given the dollar weakness we've seen. And do we get pushback? I guess it's a question right now for FX markets. Uh from officials there, given how strong we are now in the Chinese currency.

But relatively speaking, of course, it's been strong really across the Asian FX board, right? Two, five, ten and 30 on CBGB's. On the back of really much softer inflation numbers coming out on the weekend. We'll talk more about this in a moment. But the statistic for you, it was it matched the biggest myths relative to estimates. I'm talking about consumer prices going back about three years or so. It's a 0.5 percent was headline inflation.

Of course we'll talk about PPI tomorrow. But as you can see, bonds just about across the board with the exception of the short end are seeing a bit of a pullback right now. So we are stronger yet again on Chinese bond markets. Yeah. And Dave no surprise this Monday morning. Tech is a top of our agenda. ByteDance has reportedly told its employees that it would not use distillation as a shortcut to advance its AI models, even if it means lagging behind domestic rivals.

That's according to the information. Let's bring in our China correspondent, Min Min Lo. So how should we read this? They're not going to be using distillation, which was one of the criticisms of moonshot AI that they had been distilling from the large language models in the United States. But we're also hearing that they're aiming to have a pretty big model with high parameters, uh, to develop their eye over the long term.

That's right. Steve, and this is according to The Information's reporting. It's pretty remarkable and worth noting just because not many Chinese companies have publicly addressed the issue of distillation. But according to the information, Zhang Ming, who is the founder of ByteDance, had told its employees in an internal meeting that the company will not rely on distillation for any advancement of its AI models, even if it means lagging behind.

And he says this is because the company must be willing to sacrifice short term gains for long term goals, and distillation is going to interfere with true indigenous long term tech innovation. And it also speaks to the ambition of ByteDance because, as you said, they are planning to work on this 5 trillion parameter parameter model. And to give you a context, Kimmy K3, which is currently the largest, has 2.8 trillion.

So Binance is aiming for 5 trillion, which is way above what is currently available, and they are planning to use that to leapfrog competitors. But of course, this is according to, uh, what reports are saying. Some are saying that this is a project that is in its early stage and may or may not pan out. But again, it comes after TBC. We really shocked the tech world with a much smaller company, much fewer resources than ByteDance being able to create a model that is on par with frontier models.

That really started off this internal debate about whether or not to use distillation. I mean, speaking of the breakthroughs we have seen, and this could yet be another one, of course, if they push through with it. Uh, we're hearing from sources that the US is looking at, uh, how China's firms are able to get access to certain Nvidia chips overseas. And just give us a context. And what is it exactly? Yeah. So this is a Bloomberg school by one of our colleagues, according to sources.

Um, she's found that the US, uh, under the Department of Commerce, there is a US agency that is now investigating how Chinese companies are getting their hands on these Nvidia chips. So they're compiling a list of companies that are allegedly having these black market operations to get the chips to China. And they're compiling a separate list of countries that are offering access to Nvidia's servers through these cloud computing agreements.

Now, these are technically legal. You can rent a server overseas, and that doesn't violate U.S. export controls. But the question is, as they compile this list, does this mean that the U.S. is starting to make the preliminary steps to tighten that loophole? And the question is also whether that U.S. agency has that authority because it's able to limit the movement of physical goods. But whether it can really stop these cloud computing agreements.

That's a different question. And legislators are trying to give it that authority. That bill has to pass through the Senate, and then the next level of opposition could come from, of course, the US tech companies. Nvidia has been very opposed to these export controls, saying it's already cutting off access to the second largest market in the world. And he's saying the US cannot afford to lose Asia because a lot of the data centers cropping up in Asia is driven by demand from these Chinese firms that are renting the data centers.

Okay. Amendment. Thank you so much, amendment Loh with a recap there of the big tech stories that we're tracking going into the open. They could have, of course, some implications as as far as market reaction is concerned. Now just very briefly we talked about this inflation which came through very soft. Uh, and you know, the bond markets are in fact, um, somewhat reflecting this, of course, in an overnight, uh, phenomenon in China, there has been, of course, very soft inflation.

Uh, but in terms of the line in the sand, uh, the Chinese ten year yield now appear