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According to a report by Reuters, influenced by multiple factors such as the tense Sino-U.S. relations, China's push for domestic software alternatives, and U.S. export controls, Microsoft has closed at least 15 branches and joint ventures in China over the past five years, executing a strategic contraction. In 2023, the company internally considered exiting the Chinese market, as some executives believed that "the geopolitical risks outweighed the limited economic returns," but ultimately did not proceed with the exit. Microsoft disclosed in 2024 that its business in China accounted for only about 1.5% of its global revenue.The report states that Microsoft's final decision to remain in China was primarily due to the establishment of a profitable path—providing Azure cloud and AI services to Chinese companies like ByteDance and Shein, helping them operate compliantly in overseas markets. Additionally, the company believes that retaining its business in China remains strategically significant for acquiring engineering talent. However, analysts question the sustainability of this AI business model: the service relies on third-party models like OpenAI, and Chinese companies are increasingly adopting domestic alternatives like Kimi, which offer comparable performance at lower costs.Microsoft's research and development presence in China is also contracting. Its predecessor, Microsoft Research Asia, has successively established new labs in Vancouver, Singapore, and Tokyo. In 2024, the company offered job opportunities to 1,000 top engineers to relocate to the U.S. and three other countries, but only about one-third accepted, with most senior engineers moving to domestic universities and tech companies. A Microsoft spokesperson responded that the company will continue to commit to the Chinese market but did not comment on specific decision details. ByteDance and Shein did not respond to related inquiries.

After the overseas CEX Apps like Bybit and OKX were removed from the local Google Play in South Korea, the country is further tightening the process of transferring crypto assets to overseas platforms. According to the latest amendment to the Enforcement Decree of the Specific Financial Information Act, South Korean trading platforms will need to determine whether to allow transfers based on the risk level of the overseas platforms; when transferring to certain overseas trading platforms or personal wallets, users may be required to prove that the account belongs to them and explain the purpose of the transaction and the source of funds. If the information is insufficient, the transfer may be delayed or refused.Transactions reaching 10 million Korean won or more will also be included in the suspicious transaction monitoring system established by the exchanges, and the relevant regulations will be implemented six months after their announcement.

Grayscale Research Director Zach Pandl stated that even if the Clarity Act does not pass, the main blockchain operations, the demand for Bitcoin as a store of value, and the growth of stablecoin payments will not be immediately affected, and regulators will fill the regulatory gaps through rule-making.Zach Pandl pointed out that the lack of comprehensive market structure legislation may suppress new investment activities in the U.S., prompting participants in the crypto industry and startups to turn to overseas jurisdictions with clear regulatory frameworks. The U.S. government will continue to support the development of the crypto ecosystem. Strategy co-founder and Executive Chairman Michael Saylor previously stated that regardless of whether the Clarity Act passes, Bitcoin will continue to evolve, but the U.S. needs clarity in digital asset regulation. Senator Bernie Moreno stated that Senate Democrats and Republicans have concluded relevant negotiations and will proceed to a vote.

The State Taxation Administration of China responded to the recent discussions on taxing insurance income in Hong Kong, stating that Chinese tax residents are required to fulfill their tax obligations on global income according to the law, and that overseas insurance income also falls within the scope of taxable income. This is not a new policy and is not specifically aimed at the Hong Kong insurance market. The tax authority indicated that residents must declare and pay taxes on overseas insurance income and other investment income in accordance with the law, and the relevant rules treat overseas income from different countries and regions equally.Yesterday, Caixin reported that with the normalization of CRS information exchange, Chinese tax authorities can now fully obtain data on dividends and cash value from overseas insurance policies, gradually filling the gaps in tax administration. Currently, the taxation of insurance income from overseas sources has been initiated.

According to Bloomberg, informed sources revealed that the U.S. government department responsible for investigating violations of chip export controls is currently conducting a systematic review of how Chinese AI companies obtain advanced chips from Nvidia through legal means, focusing on their behavior of renting computing power in third countries. This move stems from recent technological breakthroughs achieved by Chinese AI companies, indicating that they still have the capability to acquire and use top-tier hardware despite U.S. export restrictions on chips to China. Analysts believe that this review may prompt the U.S. to further tighten regulatory rules on computing power leasing in third countries to close existing loopholes in the export control system.

The Federal Reserve accepted a total of $1.429 billion from 6 counterparties in the fixed-rate reverse repurchase operation.

According to Caixin, as the CRS information exchange becomes normalized, tax authorities can fully obtain data on dividends and cash value from overseas insurance policies, gradually filling the gaps in tax administration. The taxation of insurance benefits from overseas income has now been initiated.In addition, the CRS, as the "eye in the sky" of the global tax system, is also being upgraded according to schedule, with CRS 2.0 approaching. Key changes include incorporating crypto assets, central bank digital currencies (CBDC), and specific electronic currency products into the definition of financial assets, aligning with the trend of digital assets gradually merging with the mainstream financial world. Overall, from multiple dimensions such as overseas stock trading, overseas insurance, and offshore trusts, the iteration of CRS 2.0 and the tightening of overseas income tax collection mechanisms resonate with each other, mutually supporting and enhancing the effectiveness of cross-border tax source regulatory constraints.

As expectations for easing tensions in the Middle East rise, the market continues to focus on the progress of peace negotiations. Gold prices show resilience in their upward trend, which has also increased investors' attention to multi-asset CFD products. According to data from the Gate platform, the 24-hour increase for gold CFD (XAUUSD) is 0.13%, with today's highest price at $4304.09. At the same time, gold-related assets are performing actively, with GDX up 7.48% and GLD up 4.12%. Driven by popular targets, the trading activity of Gate CFD has also increased, with weekly trading volume surpassing $200 billion, ranking first across the network.

According to Jinshi reports, the Federal Reserve accepted a total of $1.65 billion from 2 counterparties in fixed-rate reverse repurchase operations.

According to South Korean media MK, the annual tax reform plan previously announced by the South Korean government does not include a proposal to further postpone the taxation of virtual assets (cryptocurrencies), which means that the current legal schedule for taxation in 2027 is likely to remain.According to the current South Korean Income Tax Act, starting in 2027, income from the transfer and lending of virtual assets will be classified as "other income," and investors will enjoy a tax-free allowance of 2.5 million Korean won per year. Any amount exceeding this will be subject to a 20% income tax, along with an additional 10% local income tax, resulting in a combined tax rate of 22%.

Bloomberg ETF analyst Eric Balchunas posted on X platform that BlackRock announced a 1-for-3 reverse split for ETHA, with the price rising from $14 to $42 in October.This move will reduce trading costs from 7 basis points to about 2 basis points. The ETF issuer believes that a 7 basis point spread is an issue and is adjusting it to about 2 basis points, while cryptocurrency exchanges charge about 140 basis points.

According to Jinshi, the Federal Reserve accepted a total of $2.551 billion from 3 counterparties in its fixed-rate reverse repurchase operation.

According to Jinshi reports, the central bank announced that it will conduct a 500 billion yuan reverse repurchase operation on August 5, with a term of 3 months. Meanwhile, in international news, data from the Bank of Japan indicates that Japan may not have intervened in the foreign exchange market on Monday.U.S. Treasury Secretary Yellen stated that the U.S. will take all necessary measures to support the yen and mentioned that a deal with Iran might be reached tomorrow to open the Strait of Hormuz.

According to reports from Huxiu Technology, Jieyue Xingchen is advancing along two strategic lines: one centered around large models, and the other focused on intelligent terminal devices. The mobile phone business has been placed under the independent company "Zhiyue Xingchen," operated by a team with backgrounds in Huawei and Honor, led by terminal president Ni Jiayue. Jieyue's first intelligent terminal phone STEPX Neo was unveiled during WAIC, but the price and mass production schedule have not been announced. Huxiu has learned that Jieyue is building an overseas commercialization team, planning to sell large model APIs (primarily voice models) overseas, and mobile phones will also be included in the overseas sales plan.Jieyue Xingchen's chairman Yin Qi previously attempted the "AI + car" path at Qianli Technology (formerly Lifan Technology), and this time, using mobile phones as the first piece of the terminal strategy aims to establish a closed-loop system of "model---operating system---terminal." The phone is equipped with the Step AOS intelligent terminal operating system, positioned as a carrier for intelligent terminal services, with the business model ultimately returning to Token consumption. Jieyue also maintains model collaborations with 60% of top domestic mobile phone brands, with existing installations exceeding 42 million units, but the potential competitive relationship with its own mobile phone business remains unclear. As of the time of publication, Jieyue Xingchen has not commented.

According to Jinshi, the Federal Reserve accepted a total of $2.127 billion from 4 counterparties in its fixed-rate reverse repurchase operations.

According to the Korea Herald, in June this year, the five major cryptocurrency exchanges in South Korea (Upbit, Bithumb, Coinone, Korbit, Gopax) had a stablecoin outflow to overseas exchanges amounting to 27.625 trillion won, while inflows from overseas reached 22.022 trillion won during the same period, resulting in a net outflow of 5.603 trillion won, which is equivalent to 77.6% of the net overseas stock purchases by South Korean investors (approximately 7.22 trillion won) during the same period. At the beginning of last year, this ratio was only around 20%.The report states that stablecoins have been in a net outflow state for 18 consecutive months from the beginning of last year to June this year, contrasting with some months of net selling in overseas stocks. In the second quarter of this year alone, the net outflow of stablecoins was 16.872 trillion won, while overseas stocks experienced a net selling of 16.185 trillion won. These outflowing stablecoins are believed to be primarily used for derivatives trading not offered by domestic exchanges. Recently, overseas exchanges have launched spot and futures products for major South Korean stocks such as Samsung Electronics, SK Hynix, and Hyundai Motor, in addition to cryptocurrency futures, with some high-leverage products allowing for tens of times leverage on indices or individual stocks.

According to Daum, the South Korean stock market has recently experienced increased volatility, with investors' risk appetite significantly cooling, and funds are flowing back from the stock market to safer assets such as banks. Due to adjustments in the semiconductor sector and stricter regulations on leveraged investments, the funds waiting to be invested in the South Korean stock market are rapidly withdrawing, leading to a phenomenon of "reverse capital migration."Data shows that by the end of July, the balance of time deposits at the five major banks in South Korea (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) reached 973.49 trillion won, an increase of 24.09 trillion won compared to the end of the previous month, marking the largest monthly increase this year.There has also been a noticeable contraction in funds around the stock market. Data from the Korea Financial Investment Association shows that the deposits in investors' securities accounts (funds waiting to be invested in stock trading) reached a historical high of 139.69 trillion won on June 4, but had fallen to 107.20 trillion won by July 28, a decrease of over 32 trillion won in less than two months. The balance of credit trading financing, which represents the scale of market financing transactions, also dropped to 33.19 trillion won during the same period, down approximately 4.5 trillion won from the peak of 37.72 trillion won recorded on July 2, a decrease of about 12%.

According to Jinshi reports, the Federal Reserve accepted a total of $2.151 billion from 4 counterparties in the fixed-rate reverse repurchase operation.

According to The Block, South Korean media and financial regulatory agencies have begun reviewing measures aimed at effectively preventing unregistered overseas cryptocurrency exchanges from providing services to domestic traders.

According to Jinshi, the Federal Reserve accepted a total of $1.076 billion from 3 counterparties in its fixed-rate reverse repurchase operations.