ZELENSKIY SAYS DIPLOMACY SHOULD BE REINVIGORATED, EXPECTS PROPOSALS FROM U.S. ON POSSIBLE FORMATS

Domestic News 1. The China Securities Regulatory Commission (CSRC) plans to fine Futu Securities 1.85 billion yuan and Tiger Brokers 411.2 million yuan. 2. The Hong Kong Securities and Futures Commission (SFC) announced enhanced measures to address document forgery and money laundering risks and raised account opening standards. 3. The People's Bank of China (PBOC) announced a 600 billion yuan Medium-term Lending Facility (MLF) operation on May 25, with a one-year term. 4. The Ministry of Commerce held a roundtable meeting with foreign-invested enterprises in the pharmaceutical industry to expand opening up in related fields. 5. The CSRC and eight other departments jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-border Securities, Futures, and Fund Management Activities." 6. The State Council issued an opinion that basic public services should be provided by the place of residence to promote equal access to basic public services for non-registered permanent residents and registered residents. 7. The Shanghai Stock Exchange (SSE) announced that it will focus on monitoring severely abnormally volatile stocks such as Changyingtong, stocks with abnormal volatility and delisting risk warnings such as *ST Zhengping, and stocks facing delisting. 8. Hang Seng Indexes Company Limited released its quarterly review results: J&T Express, BeiGene, and Aluminum Corporation of China were included in the Hang Seng Index; MINIMAX-W and Zhipu were included in the Hang Seng Tech Index. International News 1. The EU expanded sanctions against Iran, including actions that "threaten freedom of navigation in the Middle East." 2. Federal Reserve Governor Waller: Given the growing risks of inflation, further rate cuts should no longer be the default plan; the current stance is to keep interest rates stable in the short term. If inflation expectations lose their anchor, then rate hikes will be necessary. This could reduce the Fed's balance sheet by $300 billion to $500 billion. 3. Market pricing shows that US interest rate futures traders now expect the Fed to raise rates as early as October; traders have fully priced in a 25 basis point rate hike by the end of 2026. 4. Middle East Situation—① Pakistani sources: The increasing demands of the US and Iran on uranium and the Strait of Hormuz have led to a stalemate in negotiations. ② After being denied in the early morning, Saudi media claimed to have exclusively learned of a draft agreement between the US and Iran that was "close to being reached." ③ Market news: The UAE joins Saudi Arabia and Qatar in urging Trump not to restart the war against Iran. ④ Iranian media reports that the Pakistani Army Chief of Staff has departed for Iran, reportedly to meet with senior Iranian officials. ⑤ Sources: Qatari negotiators have arrived in Tehran to assist in facilitating a US-Iran agreement. ⑥ Rubio: Some progress has been made in negotiations with Iran, but I don't want to exaggerate; we haven't reached that stage yet.

The yield on Japan's 40-year government bonds fell 3 basis points to 4.21%.