Weekend Market Roundup: Eight Agencies Jointly Crack Down on Illegal Cross-Border Securities and Forex Fund Operations

Key market-moving developments this weekend: The State Council issued an implementation opinion on providing basic public services based on habitual residence; eight regulators led by the CSRC jointly launched a campaign against illegal cross-border securities, futures and fund operations; the PBoC announced a CNY 600 billion MLF operation on May 25; Trump declared a US-Iran deal is "essentially done"; Kevin Warsh was sworn in as the new Fed Chair as Wall Street abandons rate-cut hopes; and all three major US indices closed higher with the Dow extending its record high.

Macroeconomic

State Council Issues Opinion on Providing Basic Public Services Based on Habitual Residence

The opinion stresses that delivering basic public services based on habitual residence will help non-registered urban residents enjoy the same services as registered residents, improve urbanisation quality, unlock domestic demand potential, and support the construction of a new development paradigm.

PBoC to Conduct CNY 600 Billion MLF Operation on May 25 — An Increase for the Month

The People’s Bank of China announced it will conduct a one-year Medium-term Lending Facility (MLF) operation of CNY 600 billion on May 25, 2026, using a fixed-volume, rate-bidding, multiple-price format, to maintain ample liquidity in the banking system. The operation represents a net injection of medium-to-long-term funds for the month of May.

MOFCOM: China Absorbed CNY 287.69 Billion in FDI in January–April 2026

According to the Ministry of Commerce, China registered 20,113 new foreign-invested enterprises from January to April 2026, up 6.8% year-on-year. Actual utilization of foreign capital stood at CNY 287.69 billion, down 10.3% year-on-year. By sector, manufacturing absorbed CNY 78.88 billion and services absorbed CNY 204.15 billion.

Global Markets

Trump Says US-Iran Deal “Essentially Done”, Details Coming Soon

US President Trump declared on May 23 that a deal with Iran is “essentially done” and that the Strait of Hormuz will be reopened accordingly. Secretary of State Rubio confirmed talks are “making progress.” Iran said both sides are in the final stages of a memorandum of understanding focused on ending the conflict, not nuclear specifics.

US Media: Iran Agrees to Relinquish Its Highly Enriched Uranium Stockpile

US media reported on May 23 that Iran has agreed to give up its highly enriched uranium stockpile as a key element of the impending deal. Two US officials told The New York Times that the agreement does not resolve how Iran will surrender the stockpile, leaving details to a subsequent phase of nuclear negotiations.

Source: Next Round of US-Iran Talks May Be Held on June 5

According to Saudi sources on May 24, a person familiar with the matter indicated that the next round of US-Iran talks may take place on June 5. Trump has said a deal is “essentially done” and Rubio confirmed progress is being made.

Kevin Warsh Sworn in as New Fed Chair — Wall Street No Longer Bets on Rate Cuts

Kevin Warsh was sworn in as the new Federal Reserve Chair in Washington on Friday, May 22. In his address, Warsh said he will lead a “reform-minded” Federal Reserve and pledged to fulfil the mandate of controlling inflation and achieving full employment with “independence, clear judgment, and a firm stance.”

All Three Major US Indices Rise, Dow Hits Fresh Record; Tesla Up ~2%, China Dragon Index Falls Over 2%

US equities closed broadly higher on May 22. The Dow Jones Industrial Average gained 294.04 points (+0.58%) to 50,579.7, up 2.13% for the week. The S&P 500 rose 27.75 points (+0.37%) to 7,473.47, up 0.88% for the week, marking eight consecutive weekly gains. The Nasdaq Composite advanced 50.87 points (+0.19%) to 26,343.97, up 0.45% for the week.

Financial & Capital Markets

Eight Agencies Including CSRC Jointly Launch Crackdown on Illegal Cross-Border Securities, Futures and Fund Operations

With State Council approval, the CSRC, Ministry of Industry and Information Technology, Ministry of Public Security, People’s Bank of China, State Administration for Market Regulation, National Financial Regulatory Administration, Cyberspace Administration of China, and State Administration of Foreign Exchange jointly issued the “Comprehensive Action Plan to Rectify Illegal Cross-Border Securities, Futures and Fund Operations.” The plan targets the elimination of illegal cross-border financial activities and establishes a long-term mechanism combining comprehensive regulatory tools to protect market order and investor rights.