US Treasury yield hits 19-year high as global markets shift dynamics

The US 10-year Treasury yield climbed to its highest level in 19 years this week, while the Japanese yen gained strength and China's stock market rally drove a surge in brokerage earnings, according to market data drawing investor attention.

Chinese brokerages cash in on rally

Chinese brokerage revenue jumped more than 50 per cent as the country's buoyant stock market lifted sector earnings in the first half of the year. The broader industry recorded a 23.5 per cent average increase in net profit, while operating revenue climbed 31 per cent across 150 brokerages, according to the Securities Association of China.

Hong Kong retirement assets grow

Hong Kong's Mandatory Provident Fund assets reached HK$1.67 trillion, reflecting continued growth in the city's retirement savings pool. The Financial Services Development Council has proposed allowing part of the fund to invest in alternative assets and infrastructure. The council also called for Hong Kong to attract more long-term mainland capital to invest globally through the city.

Global market shifts

Beyond China, a strengthening yen and Washington's Treasury buy-back programme highlighted shifting dynamics in global currency and bond markets this week. The European Central Bank increased rates by 25 basis points, adding to the monetary policy movements capturing market focus.

Source: South China Morning Post