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Evening hot topics in A-shares | Two departments take action, PricewaterhouseCoopers faces maximum penalty

The following is the main text of the evening news: 1. August Financial Data Released, Central Bank: Further Reduce the Comprehensive Financing Cost On Friday, September 13, the People's Bank of China released data showing: - Chinese new RMB loans in January-August totaled 14.43 trillion RMB, compared to 13.53 trillion RMB previously. RMB deposits increased by 12.88 trillion RMB. Among them, household deposits increased by 9.65 trillion RMB, non-financial corporate deposits decreased by 2.88 trillion RMB, fiscal deposits increased by 960.6 billion RMB, and non-banking financial institution deposits increased by 3.59 trillion RMB. - Total social financing increment in January-August was 21.9 trillion RMB, compared to 18.87 trillion RMB previously. - China's M2 money supply in August increased by 6.3% year-on-year, unchanged from before, while M1 money supply in August decreased by 7.3% year-on-year, further expanding from July's 6.6% decrease. According to officials from the Central Bank, looking at the data for August, there are three main characteristics: rational growth in financial total, continuous optimization of credit structure, and continued decline in interest rates at low levels. Next, the People's Bank of China will adhere to a supportive monetary policy stance to create a good monetary and financial environment for economic recovery. The monetary policy will be more flexible and moderate, precise and effective, increase regulatory intensity, accelerate the effectiveness of financial policy measures already implemented, introduce some incremental policy measures, further reduce corporate financing and household credit costs, and maintain reasonable liquidity. 2. Delay How Long, How to Implement? Experts Interpret Delayed Retirement Reform Document On September 13, the Standing Committee of the National People's Congress voted on and released a decision on the gradual implementation of the legal retirement age. Specific actions include: - Men will retire at the age of 63, female cadres at 58, and female workers at 55. - Can choose flexible early or postponed retirement, not exceeding 3 years. - The minimum payment period for basic pension has increased to 20 years. - Paying pension insurance premiums for those nearing retirement and unemployed. - Special types of workers can apply for early retirement. 3. Ministry of Finance, Securities Regulatory Commission Take Action: PwC Fined 440 Million Recently, the Ministry of Finance and the Securities Regulatory Commission imposed heavy fines on PwC. The Ministry of Finance imposed administrative penalties of confiscation of illegal proceeds and a fine of 116 million RMB for PwC's illegal activities related to the 2018 audit of Evergrande Real Estate. Additionally, PwC was warned, its business operations suspended for 6 months, and its Guangzhou branch revoked. The Securities Regulatory Commission issued an administrative penalty to PwC for its lack of diligence in auditing Evergrande Real Estate's annual report and bond issuance, confiscating all business income during the period in question totaling 27.74 million RMB, and imposing the maximum fine of 297 million RMB, totaling a fine of 325 million RMB. 4. Shanghai: Supporting Leading Financial Technology Companies to Merge The Shanghai Municipal People's Government recently issued the "Action Plan for High-Quality Advancement of the Global Financial Technology Center Construction in Shanghai." It mentions strengthening direct investment support for financial technology companies, supporting leading financial technology companies to integrate industry chain resources through mergers and acquisitions, and supporting financial technology companies to engage in cross-border mergers and integrate high-quality overseas project resources. Supporting original research on financial technology technologies, focusing on areas such as artificial intelligence, cloud-native, blockchain, privacy computing, quantum computing, and promoting the fundamental technological research and original innovation of financial science and technology. 5. Chinese Companies Lead 6G Standardization Work for the First Time On September 12, at the 105th meeting of the 3rd Generation Partnership Project (3GPP) Business and Systems Technical Specification Group (SA) in Melbourne, Australia, the first 6G standard project of the 3GPP the 6G scenario use case and demand research project was approved. This project marks the official entry into the substantive stage of global 6G standardization work, with support from over 90 companies globally, more than twice the number of companies supporting the 5G demand project. Additionally, the participation of government departments, research institutions, vertical industries, and terminal companies significantly increased, from 8 during the 5G era to 46; satellite companies' participation also increased from 0 during the 5G era to 9 in the 6G era. 6. EU Plans to Reject! Ministry of Commerce Responds On September 12, a spokesperson for the European Commission announced that the proposed price commitment solutions from the China Machinery Industry Association and all electric vehicle manufacturers regarding the EU's anti-subsidy case for electric vehicles did not meet the requirements, and the EU intends to reject the relevant price commitment applications. In response, the Ministry of Commerce stated that China took note of the EU's statement. The European Commission disregarded the sincerity and efforts of the Chinese industry, proposing to reject the flexible solution suggestions without thorough communication. China is deeply disappointed by this. On the one hand, the EU claims to be willing to solve through dialogue, but on the other hand, they quickly and hastily reject China's suggestions without giving any specific reasons, showing no sincerity in moving towards a solution together. If a consensus cannot be reached in the end, the responsibility lies entirely with the EU. In addition, the following news is also worth noting: 7. The Standing Committee of the National People's Congress published a decision to amend the Statistics Law of the People's Republic of China. 8. US Stocks Opened High and Rose, with Pinduoduo Falling by Over 2% US stocks opened high and rose, with the Dow Jones index up by 0.46%, the Nasdaq index up by 0.28%, and the S&P index up by 0.31% as of 22:00. In terms of individual stocks, some Chinese concept stocks fell, with Pinduoduo falling by over 2% and Alibaba falling by over 1%. Oracle rose by nearly 3%, exceeding expectations for 2026 fiscal year revenue guidance; Boeing fell by over 2% as around 33,000 Boeing workers decided to strike. 9. White House: Proposed Establishment of Artificial Intelligence Data Center Infrastructure Working Group.The White House released a statement on the 12th local time, stating that today, as part of the responsible innovation comprehensive strategy of the Biden-Harris administration, the White House convened leaders from large-scale enterprises, artificial intelligence (AI) companies, data center operators, and utility companies to discuss measures to ensure that the United States continues to lead the world in the field of artificial intelligence.To promote public-private partnerships around the development of artificial intelligence data centers in the United States, the White House announced several new actions after the meeting. Among them, the White House is launching a new Artificial Intelligence Data Center Infrastructure Working Group to coordinate government-wide policies. A U.S. judge dismissed two charges against Trump On Thursday (September 12) local time, a judge in Georgia dismissed three charges brought by prosecutors in a 2020 Georgia election interference case, two of which involve former President and Republican presidential candidate Trump. After the judge withdrew two more charges, Trump is currently facing 8 charges in the case. Trump's lawyers released a statement on Thursday saying that Trump and his legal team in Georgia had won again. Selected Brother analyzes the investment opportunities in the market and finds that photovoltaics are receiving attention. 1. Shanghai: Accelerating the construction of onshore wind energy and photovoltaic power station projects Shanghai Development and Reform Commission issued a notice on matters related to the development and construction of renewable energy in Shanghai by 2024. It proposes to accelerate the construction of onshore wind energy and photovoltaic power station projects. The planned onshore wind power capacity in various districts this year is 24.841 megawatts, and the photovoltaic power station capacity is 48.896 kilowatts, which Shanghai Power Company has assessed can be fully guaranteed for consumption and all included in the 2024 onshore wind energy and photovoltaic power station development and construction plan. Regarding the photovoltaic industry, Minsheng Securities pointed out that domestic and foreign demand expectations are strong; the technological iteration of the industrial chain is accelerating, emphasizing differentiation advantages, and each manufacturer is expected to build differentiation advantages through continuous research and development, while continuously expanding downstream application scenarios. It is recommended to focus on three main lines: 1) The battery cell link with potential technological changes and disruption is recommended by LONGi Green Energy Technology, JA Solar Technology, Jinko Solar, Trina Solar Co., Ltd., focusing on Risen Energy, Shanghai Aiko Solar Energy, Qingdao Gaoce Technology, Suzhou Maxwell Technologies, Wuxi Dk Electronic Materials Co., Ltd., TCL Zhonghuan Renewable Energy Technology, and Hainan Drinda New Energy Technology. 2) It is recommended to focus on the inverter links that benefit deeply from the high demand for light and storage Sungrow Power Supply, Jiangsu Goodwe Power Supply Technology Co., Ltd., Ginlong Technologies, Ningbo Deye Technology, Hoymiles Power Electronics Inc., Yuneng Technology; focusing on Sungrow Power Supply, Arctech Solar Holding, Sineng Electric that are expected to benefit from large power plants. 3) It is recommended to focus on auxiliary material companies with logical room for market share improvement, recommend Wetown Electric Group, focus on Suzhou YourBest New-type Materials, Jiangsu Tongling Electric; recommend the EVA film and high-purity quartz sand links with tight supply and demand balance, recommend Hangzhou First Applied Material, Shanghai Hiuv New Materials Co., Ltd., Cybrid Technologies Inc., focusing on Jiangsu Pacific Quartz, etc. In addition, the following sectors are also worth paying attention to: 2. Artificial Intelligence | The White House announces the establishment of a new Artificial Intelligence Data Center Infrastructure Working Group. 3. 6G | Global 6G standardization work enters a substantive stage. 4. Pharmaceutical | National Medical Products Administration: Encourages multinational companies to transfer original research chemical drugs to domestic production. In terms of positive announcements, Selected Brother suggests focusing on Chongqing Sokon Industry Group Stock's acquisition of Longsheng New Energy equity, and in negative announcements, Baoding Tianwei Baobian Electric, which has been halted 7 times in 10 days, warns of risks. Positive Announcements 1. Chongqing Sokon Industry Group Stock: Intends to issue shares to purchase 100% equity of Longsheng New Energy 2. Goertek Inc.: Intends to spin off its controlling subsidiary Geoway to the main board of the Hong Kong Stock Exchange 3. Nextool Technology: Plans to repurchase shares for 20-30 million Yuan 4. Zhejiang Risun Intelligent Technology: Plans to repurchase company shares for 10-20 million Yuan 5. Greattown: Subsidiary signs a 750 million Yuan contract for advanced computing technology services Negative Announcements 1. Baoding Tianwei Baobian Electric, which has been halted 7 times in 10 days: The integration plan still needs to go through internal decision-making procedures and obtain approval from relevant regulatory authorities. 2. Lontrue Co., Ltd.: Investigated by the China Securities Regulatory Commission for suspected violations of laws and regulations on information disclosure 3. Enjoyor Technology: Investigated by the China Securities Regulatory Commission for suspected violations of laws and regulations on information disclosure.The regulatory commission initiates an investigation.4. Chongqing Hifuture Information Technology: The company's stock will be subject to additional risk alerts. 5. Shanghai STEP Electric Corporation: Director Jin Xinhai of the company has been arrested on suspicion of embezzlement. 6. Lecron Industrial Development Group: The company is under investigation by the China Securities Regulatory Commission for alleged illegal information disclosure.
13/09/2024

A-share notice selection | HK$54.8! Midea (000333.SZ) Hong Kong IPO price finalized

1. Midea Group Co., Ltd: H-share issue price is HK$54.8 per share Midea Group Co., Ltd announced that the company is conducting the issuance of H-shares and listing on the Main Board of the Hong Kong Stock Exchange. The final price for this H-share issue has been determined at HK$54.8 per share. The H-shares issued by the company are expected to be listed on the Main Board of the Hong Kong Stock Exchange on September 17, 2024. 2. 10-day trading suspension for Baoding Tianwei Baobian Electric: Internal decision-making process and approval from relevant regulatory authorities still need to be completed for the integration plan Baoding Tianwei Baobian Electric issued a risk warning announcement for its stock trading, stating that the stock price has experienced significant recent gains, which may be followed by a risk of a decrease after the large increase. The company's controlling shareholder, China Ordnance Equipment Group Co., Ltd., is in the process of integrating the transformer equipment business with China Electric Equipment Group Co., Ltd. This integration may lead to a change in the controlling shareholder of the company, with the internal decision-making process still needing to be completed, and approval from relevant regulatory authorities required. 3. Chongqing Sokon Industry Group Stock: Plans to inject 5 billion RMB into its wholly-owned subsidiary Chongqing Sokon Industry Group Stock Chongqing Sokon Industry Group Stock announced plans to inject 5 billion RMB of its own funds into its wholly-owned subsidiary Chongqing Sokon Industry Group Stock, increasing the registered capital of Chongqing Sokon Industry Group Stock to 9.96 billion RMB. This capital injection aims to strengthen the automotive capital strength of Chongqing Sokon Industry Group Stock, optimize the capital structure, reduce the asset-liability ratio, and promote sustainable high-quality development. The capital injection has been approved by the board of directors, does not require approval from shareholders, and is not considered a related party transaction or a major asset restructuring. 4. Goertek Inc.: Plans to list its subsidiary Goertek Micro on the Main Board of the Hong Kong Stock Exchange Goertek Inc. announced its plans to list its subsidiary Goertek Micro on the Main Board of the Hong Kong Stock Exchange. After this spin-off is completed, there will be no significant changes to the shareholding structure of Goertek Inc., and it will maintain control over Goertek Micro. 5. Lontrue Co., Ltd.: Under investigation by the China Securities Regulatory Commission for suspected illegal disclosure of information Lontrue Co., Ltd. announced that it has received a "Notice of Case Filing" from the China Securities Regulatory Commission, which has decided to open a case against the company for suspected illegal disclosure of information. According to the company's self-examination, the main reason for this case is the company's former controlling subsidiary Youshilianhe's involvement in suspected fraudulent transactions. 6. Shenzhen Coship Electronics: Ordered to compensate investors for losses of 6.758 million RMB in a first-instance ruling Shenzhen Coship Electronics announced that it has recently received a "Civil Judgment" and "Civil Order" from the Intermediate People's Court of Shenzhen, Guangdong Province, regarding a lawsuit claim involving 114 investors such as Zhu Xiumei, with a first-instance ruling allowing investors like Hou Xiangdong to withdraw their claims. According to the judgment, the company must compensate Zhu Xiumei and 114 other investors for losses totaling 6.758 million RMB, and also bear the case acceptance fee of 122,500 RMB. This ruling is a first-instance ruling, and the case has not been concluded yet, so the company cannot determine the impact on its finances. 7. Enjoyor Technology: Under investigation by the Securities and Exchange Commission for suspected illegal disclosure of information Enjoyor Technology announced that it has received a "Notice of Case Filing" from the Securities and Exchange Commission, as the company is suspected of illegal disclosure of information. 8. Chongqing Hifuture Information Technology: Stock will be subject to other risk warnings Chongqing Hifuture Information Technology announced that, according to the relevant regulations of the Shenzhen Stock Exchange, its stock will be subject to other risk warnings. The stock abbreviation will be changed from "Chongqing Hifuture Information Technology" to "ST Huicheng," and the stock will be suspended from trading for one day starting September 18, 2024, and resume trading on September 19, 2024. 9. Shanghai STEP Electric Corporation: Company director Jin Xinhai has been arrested on suspicion of embezzlement Shanghai STEP Electric Corporation announced that on September 12, the company received a notification from the public security agency that its director and former deputy general manager Jin Xinhai has been approved for arrest by the People's Procuratorate of Jiading District, Shanghai, for suspicion of embezzlement. This matter will not affect the normal operation of the company's board of directors or the effectiveness of its resolutions. 10. Yangzhou Yaxing Motor Coach: Submitted an application to the Shanghai Stock Exchange to withdraw its listing Yangzhou Yaxing Motor Coach announced that, in accordance with the requirements of the "Shanghai Stock Exchange Listing Rules," the company submitted an application to the Shanghai Stock Exchange on September 13 to withdraw its listing. The exchange will decide whether to accept the application.Intend to terminate the major asset restructuring and change it to a cash acquisition of assets.Harson Trading (China) Co., Announcement, In order to accelerate the trading process, improve trading efficiency, and reduce trading costs, the company plans to terminate the original issuance of shares to purchase assets and raise matching funds as well as related party transactions, and intends to adjust to cash acquisition of 45% equity of Suzhou Langkes and 55.2% equity of Jiangsu Langxun (referred to as "this cash acquisition of assets"). After the completion of this cash acquisition of assets, the company will control 55% equity of Suzhou Langkes and 65.2% equity of Jiangsu Langxun. COSCO Shipping Energy Transportation: Two single ship companies sign shipbuilding contracts COSCO Shipping Energy Transportation announced that Farstar LNG Shipping Co., Ltd. and Farze LNG Shipping Co., Ltd., in which the company indirectly holds 100% of the shares, signed shipbuilding contracts with joint sellers (Dalian Shipbuilding Industry Group Co., Ltd., China CSSC Industrial Trading Company) on September 13. It was agreed that Dalian Shipbuilding Industry Group Co., Ltd. will build two 175,000 cubic meters LNG carriers for the two single ship companies. The total contract price for the two ships is approximately 3.46 billion yuan. Lecron Industrial Development Group: Under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations Lecron Industrial Development Group announced that on September 12, the company received a "Notice of Filing" from the China Securities Regulatory Commission, stating that the company is suspected of violating information disclosure laws and regulations, and the China Securities Regulatory Commission has decided to file a case against the company. Increase and Decrease Holdings 1. JZJ Chain Drugstore Corporation: A concerted action by the controlling shareholder to increase holdings in the company's shares 2. Beijing InHand Networks Technology: Nanshan Aster intends to reduce its holdings in the company by no more than 3% 3. HMT (Xiamen) New Technical Materiasls Co., Ltd: Shareholders intend to reduce their holdings in the company by no more than 2.08% Share Repurchase 1. Nextool Technology: Plans to repurchase shares with 20 million to 30 million yuan 2. Zhejiang Risun Intelligent Technology: Plans to repurchase company shares with 10 million to 20 million yuan Major Contracts Greattown: Holding subsidiary signs a 759 million yuan advanced computing technology services project contract This article is reprinted from "Tencent Stock Selection", GMTEight editing: Li Fo.
13/09/2024

Shanghai Stock Exchange: In the first half of the year, the net inflow of funds into the ETF market reached 461.7 billion yuan, with a total trading volume of 1.47 trillion yuan.

According to the Shanghai Stock Exchange, index investing has been thriving this year, with the total size of the ETF market exceeding 2 trillion yuan. The market has seen a continuous net inflow of funds, with the ETF market receiving a net inflow in the first half of the year totaling 461.7 billion yuan, with a total turnover of 14.7 trillion yuan. In particular, the Shanghai ETF market saw a net inflow of 352.8 billion yuan, with a total turnover of 11.8 trillion yuan. The daily turnover exceeded one trillion yuan and trading activity increased, maintaining its position as the top market in Asia. Overall, with continued product diversification and ongoing optimization of supporting mechanisms, ETFs have become an increasingly high-quality tool for investors' asset allocation, leading to a significant increase in the participation of medium and long-term funds, and the gradual formation of a healthy market ecosystem. I. Overall Liquidity of ETFs The number of investors in the ETF market has been steadily increasing. In recent years, the concept of index investing has been increasingly recognized by investors, and ETF products, with their advantages of transparency, low fees, and convenient trading, have become an important tool for residents' asset allocation, further promoting financial inclusion. As of the end of June 2024, there were a total of 6.58 million holders of Shanghai ETFs (excluding fund-of-funds), a 61% increase from the end of 2020. Among them, institutional investors in the Shanghai ETF market held a total of over 1.3 trillion yuan, accounting for over 70%, with the proportion of institutional holdings increasing by 7 percentage points from the end of 2023 and the scale of holdings increasing by 31.8%. Trading activity has increased. In the first half of 2024, trading activity in the domestic ETF market further increased, with a total turnover of 14.7 trillion yuan and a total turnover of 11.5 trillion yuan for non-currency ETFs, both reaching historical highs. In particular, the overall turnover for Shanghai ETFs was 11.8 trillion yuan, with a daily average turnover of 1.008 trillion yuan, a 12.6% increase from the same period last year. The total turnover for non-currency ETFs was 8.7 trillion yuan, with a daily average turnover of 741 billion yuan, a 24.3% increase from the previous year. Continued improvement in liquidity for top products. Looking at the distribution of turnover, there were a total of 23 products (20 in Shanghai) with a daily average turnover of over 1 billion yuan in the market, with 10 broad-based ETFs leading the way, including further increases in turnover for top products such as the CSI 300 ETF and the SSE 50 ETF, as well as 5 bond ETFs and cross-border ETFs. There were a total of 4 products with a daily average turnover of over 5 billion yuan, with record high turnover for short-term bond ETFs and policy bank bond ETFs. Increased dividends for ETFs improve investor satisfaction. In the first half of 2024, a total of 24 ETFs distributed dividends, totaling 5.38 billion yuan, with 20 ETFs in Shanghai distributed dividends totaling 5.21 billion yuan, mainly in broad-based ETFs, dividend-themed ETFs, and bond ETFs. In addition, efforts have been made to establish a stable dividend distribution mechanism, with the launch of the first quarterly mandatory dividend product, the Morgan Stanley China 50 ETF, to increase the stability and predictability of dividends and help investors practice long-term investment strategies. Narrowing divergence between ETF prices and net asset values. In the first half of 2024, the gap between ETF prices and net asset values in the overall market further narrowed, with a daily average price deviation of 0.0046 yuan for Shanghai ETFs, continuing to shrink from 2023. Looking at individual products, stock ETFs in Shanghai had the smallest deviation, with an average deviation of only 0.0006 yuan for broad-based ETFs; the pricing level of bond ETFs improved the most, with the average deviation decreasing from 0.52% in 2023 to 0.08%, and the deviation value dropping from 0.13 yuan to 0.05 yuan. II. Trading Characteristics of Different Types of Products In the first half of 2024, the turnover of various types of non-currency ETFs increased, with stock ETFs still accounting for nearly 40% of total turnover; single products of bond ETFs had the highest turnover, with daily average turnover for top products reaching nearly 100 billion yuan; cross-border ETFs saw the fastest growth in turnover, increasing from 16% to 19% of total turnover. Broad-based ETFs attracted medium and long-term funds. Broad-based ETFs continued to attract inflows, with a 49% increase in size reaching 1.24 trillion yuan by the end of 2023, including 950.9 billion yuan in Shanghai, attracting significant increases from medium to long-term investors. The participation of medium and long-term funds not only brought incremental funds to the ETF market, but also effectively boosted market liquidity. The daily average turnover for broad-based ETFs was 31.6 billion yuan, with 22.9 billion yuan in Shanghai, a 41% increase from 2023, breaking through 4 billion yuan for top products. State-owned enterprise ETFs performed well. As of the end of June 2024, the total size of domestic sector-themed ETFs exceeded 500 billion yuan, with a market size of 341.5 billion yuan in Shanghai, where individual investors held over 60%, making it the type with the highest proportion of individual holdings among all ETFs. In terms of market performance, state-owned enterprise-themed ETFs, as well as banking and energy-related industry-themed ETFs, showed strong performance. Emergence of bond ETF products exceeding 10 billion yuan. The size of bond ETFs increased to 109.9 billion yuan, with 91.2 billion yuan in Shanghai, accounting for over 80% and a 68% increase from the end of 2023. The number of billion-yuan products increased from 1 to 4. Average daily turnover increased from 14.7 billion yuan to 20.5 billion yuan, with daily average turnover exceeding 6 billion yuan for short-term bond ETFs and policy bank bond ETFs. The institutional holdings structure has gradually diversified, with entities such as corporate pensions increasing their allocations, and general collateral repurchase agreements becoming an important strategy for institutional investors. The turnover of dividend-themed ETFs more than doubled. In the first half of 2024, strategy ETFs represented by dividend-themed ETFs were favored by investors, with a total size exceeding 70 billion yuan, with institutional holdings accounting for over half. Insurance institutions were among the top ten holders of major products in the second quarter of 2024. In Shanghai, the scale of dividend-themed ETFs increased by over 56% to 56.7 billion yuan, with turnover increasing by over 120%. III. Funds Flow of Shanghai ETFs Three consecutive years of net inflows. In the first half of 2024, the total net inflow of non-currency ETFs in the domestic market was 461.7 billion yuan, reaching over 80% of the total net inflow in 2023, with Shanghai non-currency ETFs receiving a net inflow of 352.8 billion yuan. In recent years, ETFs have continued to see net inflows of funds, with the amount increasing year by year, and the accumulated net inflow of funds since 2021 has exceeded 1.5 trillion yuan. Increased investments in various types of ETFs. In the first half of 2024, all types of non-currency ETFs saw net inflows, with stock ETFs continuing the trend from 2023.The trend is that the net inflow reaches 388.6 billion yuan; bond ETFs receive a net inflow of 23.4 billion yuan, already reaching the level of the whole year of 2023; the net inflow speed of commodity ETFs and strategy ETFs has increased significantly, with the net inflow in the first half of the year reaching 3.5 times and 2 times the total for the whole year of 2023 respectively.The mainstream broad-based ETF saw the highest net inflows. Among the top ten ETFs with the most net inflows, there are a total of 8 broad-based ETFs, 1 bond ETF (Government and Investment Grade Bond ETF), and 1 gold ETF. Technology innovation ETFs continue to receive net inflows from institutional funds, maintaining the trend of net inflows from earlier, with total net inflows exceeding 100 billion yuan since 2022 and trading activity also significantly increasing, with daily trading volume tripling. IV. Fund Market Making Situation Shanghai ETF market makers have a high coverage rate. As of the end of June 2024, there are a total of 33 market makers in the Shanghai Stock Exchange fund market, including 19 primary market makers and 14 general market makers. A total of 557 ETFs are equipped with market makers, accounting for 98% of the total number of Shanghai ETF products, an increase of 33 from the end of 2023. In the first half of 2024, the transaction volume of market makers accounted for 29% of the total transaction volume of all market-making products, and the market makers' activity level has been increasing year by year, with a growth of approximately 3% compared to 2023. Shanghai ETFs are equipped with multiple market makers to provide liquidity services. The average number of market makers assigned to Shanghai ETFs is 6.52. The ETFs with the highest number of market makers are the CSI 1000 ETF Index and the Huaxia Shanghai and Shenzhen 300 ETF, each with 23 market makers. There are over 100 ETF products covered by 10 market makers in Shanghai, with the top five market makers covering 56% of the products, and the top ten market makers covering 84% of the products. The concentration of ETF market-making business is relatively high. The market-making function of Shanghai ETFs is effectively utilized. Firstly, the market-making mechanism effectively increases the trading activity of products. In the first half of 2024, ETFs with market makers had a daily turnover rate 4.9 times higher than those without market makers, providing convenience for investors' trading. Secondly, the market-making mechanism reduces the relative bid-ask spread of funds, improving pricing efficiency. The average relative bid-ask spread of ETFs without market makers was 0.144%, compared to only 0.1002% for ETFs with market makers. Thirdly, the market-making mechanism helps maintain stable fund prices, reducing price impact costs. The purchase and sell impact costs of ETFs without market makers in Shanghai were 0.87% and 1.35%, respectively, while those with market makers were 0.07% each. V. Outlook The new "National Nine Provisions" propose a strong development of equity public funds, significantly increasing the proportion of equity funds and establishing a fast-track approval process for trading open-ended index funds (ETFs) to promote the development of index-linked investments. With the increasing recognition of index-linked investment concepts by investors in recent years, ETFs are expected to play a more active role in attracting medium to long-term funds to the market, serving the real economy, and meeting residents' wealth management needs. In the next step, the Shanghai Stock Exchange will conscientiously implement the decision-making and deployment of the Central Committee, the relevant requirements of the new "National Nine Provisions," and under the overall guidance of the China Securities Regulatory Commission, continue to enrich the variety of ETFs, optimize the supporting mechanisms for ETFs, cultivate a good ETF ecosystem, and promote the high-quality development of the fund market.
13/09/2024

A-share market review: Shanghai index narrowly holds onto 2700 points, hitting a new low in the stage. The Huawei industrial chain collectively retreats.

On September 13th, the three major indices fluctuated lower throughout the day, with the Shanghai Composite Index narrowly holding above 2700 points to set a new stage low. By the close, the Shanghai Composite Index fell by 0.48%, the Shenzhen Component Index fell by 0.88%, and the ChiNext Index fell by 1.07%. On the market, state-owned enterprise reform and mergers and acquisitions concept stocks surged against the trend, with more than 20 stocks such as Baoding Tianwei Baobian Electric, SinoDaan Co., Ltd., and Guizhou Wire Rope hitting their daily limit; the real estate sector remained strong throughout the day, with Beijing Airport High-Tech Park and CCCG Real Estate Corporation hitting their daily limit; large financial stocks such as securities and insurance continued to rise, with Hubei Biocause Pharmaceutical and Tianfeng hitting their daily limit; retirement concept stocks rose at the end of the day, with Everjoy Health Group and Jiangsu Phoenix Property Investment hitting their daily limit. In terms of declines, liquor stocks continued to struggle, with Kweichow Moutai falling below 1300 yuan and hitting a 22-month low, with Shanghai Guijiu hitting its daily limit; the recent strong performance of the Huawei industrial chain collectively declined, with multiple stocks such as Huayang OURGAME and Shenzhen Huaqiang Industry hitting their daily limit; lithium resources, solid-state batteries, and photovoltaic new energy tracks all fell, with Shenzhen V&T Technologies and Jiangxi Haiyuan Composites Technology hitting their daily limit or falling by more than 10%. Overall, more stocks fell than rose, with over 4000 stocks in the entire market declining. The trading volume in Shanghai and Shenzhen today was 524.8 billion, an increase of 9.1 billion compared to the previous trading day. In terms of capital flows, funds favored industries such as communication equipment and securities, while funds flowed out of industries such as optics and white liquor. Institutional views Looking ahead, China Securities Co., Ltd. stated that despite various suppressing factors internally and externally, the market itself is within a value range. Once the market stabilizes, close attention can be paid to the recent trend of defiance against declines. China Securities Co., Ltd.: Once the market stabilizes, close attention can be paid to the recent trend of defiance against declines Looking ahead, despite various suppressing factors internally and externally, the market itself is within a value range. With the Federal Reserve expected to begin cutting interest rates in September, the domestic monetary policy space is opening up, with the central bank already announcing reserve cuts this week, still with some room for further cuts; the issuance of special bonds is speeding up, localities are intensively introducing regulations for the replacement of old with new, and policies are likely to further add towards boosting domestic demand. Once the market stabilizes, close attention can be paid to the recent trend of defiance against declines. Focus on: 1. domestic and foreign demand resonance (equipment renewal, consumer goods upgrading + going abroad); 2. innovative drugs; 3. securities, insurance; 4. new energy direction. CITIC SEC: The resilience of tourism and liquor consumption expectations during the Mid-Autumn Festival and National Day holidays is strong CITIC SEC stated, data from a recent survey conducted by the CITIC-CLSACRR team shows that overall tourism interest during the 2024 National Day holiday has slightly weakened compared to the same period in 2023, possibly due to the longer holiday last year, but the willingness of low-income and affluent groups to travel has still improved. The average travel budget per capita of respondents is higher than during the 2023 National Day, but lower than during this year's Spring Festival and Labor Day. Respondents have a stronger willingness to consume white wine and beer during the Mid-Autumn Festival and National Day holidays, with both quantity and price levels having improved compared to the previous year. Expectations for white wine consumption in the next 12 months are similar to last year, with strong growth expectations among residents of lower-tier cities. Hot sectors 1. Gold stocks were active throughout the day Gold concept stocks were active throughout the day, with Beijing Xiaocheng Technology Stock rising by over 4%, and Chifeng Jilong Gold Mining, Shandong Yulong Gold, and Sichuan Gold following suit. Analysis: In terms of news, stimulated by the European Central Bank's announcement of rate cuts and expectations of rate cuts by the Federal Reserve, the spot gold price rose to over $2560 per ounce on Thursday night, hitting a historical high. Analysts point out that the long-term trend of gold is bullish at the moment, having reached the bullish target of $2550, which opens the door to the next target of $2570 and is expected to reach higher levels. 2. Real estate sector remained strong throughout the day The real estate sector remained strong throughout the day, with Beijing Airport High-Tech Park and CCCG Real Estate Corporation hitting their daily limit. Analysis: A research report by Minsheng Securities indicated that the high temperatures in July and August 2024, combined with a downturn in the market sentiment, continued the trend of declining transactions on a month-on-month and year-on-year basis. It is predicted that in September, with the traditional peak season for marketing approaching, real estate companies will see an increase in both the intensity of new listings and marketing efforts, leading to a possible month-on-month increase in overall transactions in September. 3. State-owned enterprise reform concept stocks surged against the trend State-owned enterprise reform and mergers and acquisitions concept stocks surged against the trend, with more than 20 stocks such as Baoding Tianwei Baobian Electric, SinoDaan Co., Ltd., and Guizhou Wire Rope hitting their daily limit. Analysis: On the news front, Wu Qing, Chairman of the China Securities Regulatory Commission, stated that the commission will continue to improve the quality and investment value of listed companies, actively promote mergers and acquisitions and restructuring in the market. 4. Large financial sector continued to rise Large financial stocks such as securities and insurance continued to rise, with Hubei Biocause Pharmaceutical and Tianfeng hitting their daily limit. Analysis: In the news, on September 12, Wu Qing, Chairman of the China Securities Regulatory Commission, stated in Liaoning that the commission will implement the new deployment of the "Nine National Reform Measures," further comprehensively deepen the reform of the capital market. Translation provided by SJBtranslations Note: Please note that the translation may not be perfect and can sometimes be incorrect. It is always recommended to consult a professional translator for accurate translations.Continuously improve the quality and investment value of listed companies, fully leverage the functions of the multi-level capital market system, support enterprises to develop and grow through channels such as stock and bond financing, and futures risk management, and take multiple measures to activate the mergers and acquisitions market.This article is reproduced from "Tencent Stock Selection", edited by GMTEight: Chen Xiaoyi.
13/09/2024

Upper Middle Association: By the end of 2023, there were a total of 2445 listed companies in the high-end manufacturing industry on the A-share market in China, accounting for 45.74% of the total number of listed companies on the A-share market.

On September 13, the China Association of Listed Companies released the "China Listed Companies' High-end Manufacturing Industry Development Report (2024)". The report shows that as of the end of 2023, there were a total of 2,445 high-end manufacturing industry listed companies on the A-share market in China, accounting for 45.74% of the total number of listed companies on the A-share market. Overall, in recent years, benefiting from policy support and historical opportunities for the transformation and upgrading of China's industrial structure, the number of listed companies in the high-end manufacturing industry in China has continued to increase, with significant operational results. I. Steady Growth in Asset and Liability Size The report shows that as of the end of 2023, the total asset size of listed companies in the high-end manufacturing industry reached 25.69 trillion yuan, accounting for 6.10% of the total assets of listed companies on the A-share market, a relatively low proportion. This is related to the distribution characteristics of industries among A-share listed companies, with banks, insurance, and other financial industries accounting for the vast majority of the total assets of listed companies on the A-share market. The total assets of the high-end manufacturing industry at the end of 2023 increased by 12.03% compared to the end of 2022 and by 89.54% compared to the end of 2019, with a compound annual growth rate of 17.33% over the past 5 years, higher than the overall compound growth rate of A-shares of 10.95%, indicating rapid growth in asset size. II. Continuous Expansion of Revenue and Profit Size Over the past 5 years, the revenue scale of listed companies in China's high-end manufacturing industry has continued to grow, from 8.24 trillion yuan in 2019 to 14.66 trillion yuan in 2023, with a compound annual growth rate of 15.50%. The revenue growth rate is significantly higher than the GDP growth rate, indicating that listed companies in the high-end manufacturing industry are still in a period of rapid development and remain one of the strong drivers of China's economic growth. In 2023, against the backdrop of a complex international situation and a decline in domestic and foreign demand, the year-on-year growth rate of operating income of listed companies in the high-end manufacturing industry decreased to 8.86%, but still significantly outpaced the overall year-on-year growth rate of 1.93% of listed companies on the A-share market in 2023, demonstrating strong development resilience. III. Continuous Increase in R&D Investment In 2023, R&D expenditure of listed companies in the high-end manufacturing industry reached 888.218 billion yuan, with a compound annual growth rate of 22.11% over the past 5 years. The annual growth rate has remained at a high level, and R&D investment has continued to increase rapidly, indicating that the high-end manufacturing industry in China attaches importance to technological iteration and industrial upgrading, continuing to increase efforts in key research. Over the past 5 years, the proportion of R&D expenditure of listed companies in the high-end manufacturing industry to income has rapidly increased, from 4.85% in 2019 to 6.06% in 2023. Listed companies in the high-end manufacturing industry attach great importance to the construction of independent R&D capabilities, and the intensity of R&D investment continues to increase. IV. Continuous Growth in Tax Contributions, Increasing Employment The report shows that in 2023, tax contributions of listed companies in the high-end manufacturing industry in China reached 243.562 billion yuan, with a compound annual growth rate of 13.24% over the past 5 years, making an important contribution to society. The number of employees reached 9.8059 million, with a compound annual growth rate of 10.74% over the past 5 years, providing a large number of job opportunities for society and attracting a large number of technical talents. V. Continuous Growth in Overseas Income, Diversification of Overseas Listings Over the past 5 years, listed companies in China's high-end manufacturing industry have continuously expanded their overseas business, seeking a broader market space. The year-on-year growth rate of overseas income has remained above 15%, higher than the growth rate of overseas income of all A-share listed companies in the same period. From 2019 to 2023, the overseas income of listed companies in the high-end manufacturing industry increased from 1.6832 trillion yuan to 3.829 trillion yuan, with a compound annual growth rate of 22.81%, significantly higher than the compound growth rate of overseas income of all A-share listed companies in the same period of 14.38%. The proportion of overseas income in the total overseas income of all A-share listed companies increased from 33.89% to 45.04%, reflecting the gradual development of the high-end manufacturing industry into a major force for Chinese companies going global. As for overseas listings, listed companies in China's high-end manufacturing industry have actively explored diversified listing locations. As of the end of June 2024, 51 high-end manufacturing industry listed companies have achieved overseas listings, with 50 companies simultaneously listing on the A-share and Hong Kong stock markets, while BEIGENE has achieved listings on the A-share, Hong Kong, and US stock exchanges. Fifteen high-end manufacturing industry listed companies have issued GDRs (Global Depositary Receipts) on foreign exchanges. VI. New Quality Productivity Promotes High-Quality Development of the High-end Manufacturing Industry In response to the national call, listed companies in China's high-end manufacturing industry have actively engaged in strategic layouts, practiced the new development concept, actively engaged in technological innovation, sought revolutionary breakthroughs in technology, and continuously stimulated new quality productivity, becoming the vanguard and main force in promoting the high-quality development of China's manufacturing industry. Statistics show that in 2023, the new quality productivity index saw a year-on-year growth of 5.30% in operating income and 11.73% in net profit attributable to shareholders, and it is expected to maintain sustained high-speed development in the future, driving social and economic progress. Leading the semiconductor equipment industry, NAURA Technology Group is committed to establishing an innovative talent development and incentive system that meets the requirements of new quality production development and gathers new forces for advancement with high-efficiency reform energy. It continues to escalate institutional mechanism reforms and innovatively use multiple approaches to continuously stimulate the innovative vitality and passion of value creators; applying the concept of "Career Community" for top-level design and systematically restructuring multi-level, sustainable medium- to long-term incentive mechanisms with "normalized incentive mechanism" and "differentiated incentive tools". In the field of new energy, BYD Company Limited deeply cultivates core technologies such as batteries, motors, and controllers for new energy vehicles, actively explores and develops technologies such as blade batteries, DM technology, CTB battery body integration, and cloud tracks, leading the industry's development. In 2023, BYD Company Limited sold 3.024 million new energy vehicles, ranking first in global new energy vehicle sales; as of the end of July 2024, BYD Company Limited's global sales of new energy vehicles exceeded 8 million, becoming a leading enterprise in the industry. VII. Practicing Investor Protection Mission with Multiple Measures The report shows that in 2023, the total dividends of listed companies in the high-end manufacturing industry reached 302.649 billion yuan, an increase from the previous year.In 2023, the dividend payout ratio of listed companies in the high-end manufacturing industry reached 37.91%, an increase of 4.52 percentage points compared to 2022. The highest dividend payout was in the power equipment industry, with a total of 78.612 billion yuan, while the total dividend payouts in the mechanical manufacturing and electronics industries both exceeded 45 billion yuan. The main reason for this is that the net profit levels of the power equipment, mechanical manufacturing, and electronics industries are among the top in the high-end manufacturing industry.In the fiscal year 2023, the total amount of shares repurchased by listed companies in the high-end manufacturing industry was 43.269 billion RMB. The segment with the highest amount of shares repurchased was the power equipment industry, with a total of 10.841 billion RMB. The total amount of shares repurchased in the machinery manufacturing and electronics industry also exceeded 5 billion RMB. China's high-end manufacturing industry has made significant progress from scratch. Currently, China is at a critical period of transitioning from a "manufacturing power" to a "manufacturing powerhouse." Listed companies are earnestly implementing the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, promoting the development of high-end manufacturing industry with new productive forces, accelerating the cultivation and expansion of advanced manufacturing industry clusters, promoting the high-end, intelligent, and green development of the manufacturing industry, accelerating scientific research and solving bottleneck problems, building independent and controllable industrial and supply chains, and achieving high-quality development of the high-end manufacturing industry. This article is excerpted from the China Listed Companies Association, edited by GMTEight: Chen Wenfang.
13/09/2024

A-share midday review | The three major indexes all turned green, state-owned enterprise reform concept erupted, solid-state batteries continued to decline.

ing Electronic Zone High-tech Group On September 13, the A-share market opened higher in the morning, but the three major indices turned green again later. By the close, the Shanghai Composite Index fell by 0.09%, the Shenzhen Component Index fell by 0.09%, and the ChiNext Index fell by 0.12%. In terms of market performance, gold concept stocks were active, with Pengxin International Mining hitting the daily limit, Beijing Xiaocheng Technology Stock, and Leysen Jewellery Inc. rising by over 5%, and spot gold hitting a historical high of $2560 per ounce; insurance and securities stocks were volatile and higher, Tianfeng rose by the daily limit, Hubei Biocause Pharmaceutical hit the daily limit for the 8th consecutive day; real estate sector was volatile and higher, with Beijing Electronic Zone High-tech Group hitting the daily limit; state-owned enterprise reform and mergers and acquisitions concept stocks were active, with several stocks hitting the daily limit. On the downside, the solid-state battery concept continued to decline, with Shenzhen V&T Technologies falling by over 10%; the liquor sector was volatile and lower, with Shanghai Guijiu hitting the limit down again, after the company announced that the actual controller was subject to criminal measures; and the Hongmeng concept stocks fell back, with Qingdao Topscomm Communication INC. falling by nearly 8% and Changbeishanming falling by over 4%. In terms of main funds, funds favored communication equipment, industrial metals, and insurance industries, while funds flowed out of optical and optoelectronic industries and software development industries. Institutional views Looking ahead, China Securities Co., Ltd. stated that although there are still many suppressive factors both internally and externally in the near future, the market itself is in a value range. Once the market stabilizes, close attention can be paid to the direction of recent countercyclical resilience. Key areas of focus: 1. Synchronized domestic and foreign demand (equipment renewal, consumer goods for trading, and going abroad); 2. Innovative drugs; 3. Securities firms, insurance companies; 4. New energy directions. CITIC SEC: The resilience of the Mid-Autumn Festival and National Day holidays tourism and alcohol consumption expectations is relatively strong CITIC SEC stated that according to the recent survey data of CITIC-CLSACRR team, residents' overall interest in tourism during the 2024 National Day holiday has slightly weakened compared to the same period in 2023, possibly due to the longer holiday period last year, but the willingness of low-income and affluent groups to travel is still increasing. Residents' average travel budget is higher than that of the 2023 National Day, but lower than the Spring Festival and Labor Day this year. Residents' willingness to consume baijiu and beer during the Mid-Autumn Festival and National Day holidays is stronger than usual, with both quantity and price showing improvements compared to last year. The expected change in baijiu consumption in the next 12 months is similar to last year, with strong growth expectations for residents in lower-tier cities. Huatai: Focus on Apple's new product launches and the pace of AI functionality landing On September 10, Apple (AAPL US) held its autumn product launch as scheduled, launching/updating four iPhone 16 models, two Series10/Ultra2 watches, three earphones AirPods 4/AirPods Max/AirPods Pro 2, and all specifications of the new products are basically in line with previous media reports. The main changes to the iPhone include: 1) hardware: support for the 3nm A18 chip, Camera Control, image upgrades, etc. 2) software: gradual landing of AI functions. The highlights of wearable products include adding health detection functions to watches and active noise reduction to penetrate Airpods 4. Optimistic about the continuous improvement in ASP driven by AI users upgrading and the trend towards premiumization, it is recommended to focus on related targets in industries such as periscope lenses, cooling, and acoustics. Hot sectors 1. Strong performance of gold stocks Gold concept stocks opened higher collectively, with Pengxin International Mining hitting the limit up, Beijing Xiaocheng Technology Stock, and Leysen Jewellery Inc. rising by over 5%, and follow-up gains from Shandong Yulong Gold, Chifeng Jilong Gold Mining, Sichuan Gold, Mclon Jewellery, Zhongjin Gold Corp., Ltd., among others. Comment: On the news front, stimulated by the European Central Bank's announcement of interest rate cuts and expectations of a rate cut by the Federal Reserve, the spot gold price rose above $2560 per ounce on Thursday evening, hitting a historical high. Analysts point out that the long-term trend of gold is bullish, as it has reached the target of $2550, opening the way for the next upward target of $2570, and is likely to go higher. 2. Volatile rise in the real estate sector The real estate sector was volatile and rising, with Beijing Electronic Zone High-tech Group hitting the limit up. Commentary: With continuous loose policies, the real estate sector continues to attract market attention. Continue to pay attention to hot stocks in this sector.Electronic Zone High-tech Group hit the daily limit, followed by Beijing Airport High-Tech Park, Shahe Industrial, Gree Real Estate, Beijing Dalong Weiye Real Estate Development, CCCG Real Estate Corporation and others.Review: Minsheng Securities' research report believes that in July and August 2024, high temperatures combined with a sluggish market sentiment, leading to a continued decline in transaction volume month-on-month and year-on-year. It is predicted that in September, with the arrival of the traditional peak sales season, real estate companies will see an increase in both promotion intensity and marketing efforts, leading to a possible increase in overall transactions compared to the previous month. 3. State-owned enterprise reform concept stocks are active again Stocks related to state-owned enterprise reform, mergers and acquisitions have been active again. Guizhou Wire Rope, Beijing Electronic Zone High-tech Group, LingNan Eco&Culture-Tourism, Holly Futures, Wuxi New Hongtai Electrical Technology, Ningxia Building Materials Group, CCCG Real Estate Corporation, Hainan Haiyao all hit the daily limit up, while Gansu Mogao Industrial Development, Shahe Industrial, Baoding Tianwei Baobian Electric rose by over 5%. Comment: On the news front, Wu Qing, the chairman of the China Securities Regulatory Commission, stated that the commission will continuously improve the quality and investment value of listed companies, and actively promote mergers and acquisitions in the market through various measures. 4. The major financial sector strengthens again The major financial sector is active again, with Hubei Biocause Pharmaceutical hitting the daily limit up for the 8th consecutive day, Holly Futures hitting the daily limit up, and Tianfeng, Ruida Futures, Sunny Loan Top following the upward trend. Comment: On September 12, Chairman Wu Qing of the China Securities Regulatory Commission stated in Liaoning that the commission will implement the new deployment of the "Nine Measures for the Country," further comprehensively deepen the reform of the capital market, continuously improve the quality and investment value of listed companies, fully leverage the functions of the multi-level capital market system, support the development and growth of enterprises through stock and bond financing, futures risk management and other channels, and actively promote mergers and acquisitions in the market through various measures. This article is reproduced from "Tencent Stock Selection"; GMTEight Editor: Wang Qiujia.
13/09/2024

GMTEight List of A-share restricted sales and lifting restrictions | September 13th

On September 13, a total of 12 listed companies had their restricted shares lifted, with a total market value of approximately 5.383 billion yuan. Today's specific details of the restricted shares being lifted are as follows: Stock AbbreviationStock CodeRestricted Shares TypeNumber of Shares ReleasedHongbo Co., Ltd.002229Equity Incentive Restricted Shares50,280Xi'An Shaangu Power601369Equity Incentive Restricted Shares43,560Zhejiang Sunflower Great Health300111Additional A Shares Originally Distributed to Existing Shareholders 167 millionShanghai Labway Clinical Laboratory301060Restricted Shares Before Issuance 217 millionRockchip Electronics603893Equity Incentive Restricted Shares4,500Red Avenue New Materials Group603650Equity Incentive Restricted Shares158,930Wuxi Zhenhua Auto Parts605319Equity Incentive Restricted Shares134,000Newtechwood Corporation301588A Shares Distributed to Legal Entity Shareholders 119,110Jinsanjiang(Zhaoqing)Silicon Material301059Restricted Shares Before Issuance 165 millionGuangzhou Hexin Instrument6886223 115,510Hi-Trend Technology688391756,500Shandong Cvicse Middleware688695115,150
13/09/2024

A-share opening express | Three major indexes opened slightly higher, gold concept stocks active

On September 13th, all three major indexes opened slightly higher, with the Shanghai Composite Index up 0.27%, the Shenzhen Component Index up 0.11%, and the ChiNext Index down 0.11% at the time of writing. In terms of the market, gold concept stocks were active, with Pengxin International Mining hitting the daily limit up, Beijing Xiaocheng Technology Stock and Leysen Jewellery Inc. rising by over 5%, and spot gold hitting a historical high of $2560 per ounce. Insurance and securities stocks were volatile and rose, with Hubei Biocause Pharmaceutical hitting the limit up for 8 days in a row. Some Hainan Free Trade Zone concept stocks continued to rise, with Hainan Shuangcheng Pharmaceuticals and Hainan Haiyao bidding the limit up. In terms of declines, the liquor sector was volatile and lower, with Shanghai Guijiu hitting the daily limit down again, after the company announced that its actual controller had been subjected to criminal coercive measures. Stocks related to HarmonyOS concept fell back, with Qingdao Topscomm Communication INC. dropping nearly 8% and Changbeishanming falling over 4%. In terms of main funds, funds favored industries such as communication equipment, industrial metals, and insurance; funds fled from industries such as optical electronics and software development. Institutional viewpoints Looking ahead, China Securities Co., Ltd. stated that despite many pressure factors internally and externally recently, the market itself is in a value range. Once the market stabilizes, close attention can be paid to the direction of counter-trend resistance in the near term. CITIC SEC: Resilient Expectations for Mid-Autumn Festival and National Day Holidays Travel and Liquor Consumption CITIC SEC stated that recent surveys conducted by the CITIC-CLSACRR team show that overall travel interest during the 2024 National Day holiday among surveyed residents has weakened compared to the same period in 2023, possibly due to the longer holiday period last year. However, the travel willingness of low-income and affluent groups is still increasing. The average travel budget per resident surveyed is higher than during the 2023 National Day, but lower than during this year's Spring Festival and May Day holidays. The willingness of surveyed residents to consume baijiu and beer during the Mid-Autumn and National Day holidays is stronger than usual, with both quantity and price levels higher than the previous year. Huatai: Focus on Apple's New Product Launch and the Pace of AI Implementation On September 10th, Apple (AAPL US) held its autumn product launch, releasing/updating four iPhone 16 models, two Series10/Ultra2 watches, three AirPods 4/AirPods Max/AirPods Pro 2 headphones, with all new product specifications generally in line with previous media reports. The main changes to the iPhone include: 1) hardware: support for Apple's intelligent 3nm A18 chip, Camera Control, image upgrades, etc. 2) software: gradual implementation of AI functions. Highlights of wearable products include the addition of health detection functions to the watch, and active noise reduction in Airpods 4. Optimistic about the continuous improvement of the ASP under the trend of AI-driven user upgrades and high-end trends, it is recommended to pay attention to related targets in the industry chain such as periscopic lenses, heat dissipation, and acoustics. Hot sectors 1. Strength in Gold Stocks Gold concept stocks opened higher, with Pengxin International Mining bidding limit up, Beijing Xiaocheng Technology Stock and Leysen Jewellery Inc. rising over 5%, and Shandong Yulong Gold, Chifeng Jilong Gold Mining, Sichuan Gold, Mclon Jewellery, Zhongjin Gold Corp., Ltd., etc., following suit. Commentary: In terms of news, stimulated by the European Central Bank's announcement of interest rate cuts and the expected interest rate cuts by the Federal Reserve, spot gold briefly rose above $2560 per ounce on Thursday evening, hitting a historical high. Analysts pointed out that the long-term trend of gold is bullish, reaching the target of $2550 per ounce, which opens the door to the next target of $2570 per ounce and is expected to rise even higher. 2. Real Estate Sector Shaking and Rising The real estate sector was shaking and rising, with Beijing Electronic Zone High-tech Group hitting the limit up, Beijing Airport High-Tech Park, Shahe Industrial, Gree Real Estate, Beijing Dalong Weiye Real Estate Development, CCCG Real Estate Corporation, etc., following suit. Commentary: According to a report from Minsheng Securities, in July-August 2024, high temperatures combined with a sluggish market sentiment, and transactions continued to decline month-on-month and year-on-year. It is predicted that in September, as the traditional peak sales season approaches, real estate developers will increase their efforts in both project promotion and marketing, leading to a potential increase in overall transactions in September compared to the previous month.From "Tencent self-selected stocks", GMTEight editor: Xu Wenqiang.Puedes sentarte en el sof si quieres.
13/09/2024

Pre-market report on A-shares | Chairman of the China Securities Regulatory Commission supports multiple measures to actively promote mergers and acquisitions and restructuring in the market, OpenAI's large reasoning model makes its debut.

Morning News Snapshot 1. Securities Regulatory Commission Chairman Wu Qing: Support companies to develop through equity and bond financing, multiple measures to activate the M&A and restructuring market Chairman Wu Qing of the Securities Regulatory Commission stated that they will further comprehensively deepen capital market reform, continuously improve the quality and investment value of listed companies, fully play the role of the multi-level capital market system, support companies to grow through equity and bond financing, futures risk management, and other channels, and take multiple measures to activate the M&A and restructuring market. 2. Hurricane "Franklin" disrupts production in the Gulf of Mexico oil fields, international oil prices rise across the board overnight International oil prices rose more than 3% on Thursday, as producers assessed the impact on US Gulf of Mexico oil production, following Hurricane Franklin's rampage through offshore oil-producing areas, which later downgraded to a tropical storm. However, some analysts warned that Franklin's impact may be temporary. 3. Issuance War in Full Swing! The first batch of 10 CSI A500 ETFs raised nearly 5 billion in three days As of yesterday, the first batch of 10 CSI A500 ETFs raised nearly 5 billion in three days. Jiashi, Huatai Bairui, and Jingshun Changcheng lead the top three, with Fuguo and Morgan Asset Management following closely. Some fund companies have already raised 1.4 billion, with progress bars at 70%. 4. Minister of Commerce Wang Wentao will visit Europe in the near future to negotiate with the European Union on the anti-subsidy case of electric vehicles in China Ministry of Commerce spokesperson He Yongqian stated that Minister of Commerce Wang Wentao will visit Europe in the near future and will hold talks with European Commission Vice President and Trade Commissioner Dombrovskis on September 19 to negotiate the anti-subsidy case of electric vehicles in China by the EU. Financial Calendar Today, Shanghai and Shenzhen will have two new stocks, Wuxian Media and Hehe Information, available for subscription with no new stocks launching. Reminder: Index sample adjustments, including the Sci-Tech Innovation 50, will take effect today. Early Opportunity Analysis Market sentiment indicates that large models, gold, and commercial aerospace are receiving attention. 1. The dawn of a new era of AI! OpenAI's reasoning large model that can "think and solve problems logically" debuts OpenAI announced on their official website that they have started rolling out the OpenAI o1 preview model to all subscribed users - known as the highly anticipated "Strawberry" large model. The characteristic of the reasoning large model is that AI spends more time thinking before answering, just like the process of humans solving problems. Review: According to Ping An Securities, the competition in the field of large models is still fierce on a global scale. Chinese large model manufacturers continue to iteratively upgrade their algorithm capabilities, with most domestic closed-source models already surpassing GPT-3.5Turbo, and are expected to accelerate the application of domestic large models in various scenarios. 2. Gold spot and futures both hit historical highs, institutions optimistic about gold allocation value under interest rate cuts On the night of September 12, the spot gold continued to rise, reaching a record high of $2560.12 per ounce. By the closing bell, spot gold rose by 1.88% to $2558.485 per ounce, breaking a historical closing high. Review: Guotai Junan believes that they still maintain an over-allocated view on gold. The start of the US interest rate cut cycle continues to boost gold prices; against the background of the spread of deglobalization and changes in the global order, it is expected that the frequency of geopolitical conflicts will remain high, providing continuous support for gold performance. 3. Major breakthrough in China's manned lunar landing technology, commercial rockets expected to see normalized launches According to China Aerospace Hi-Tech Holding Group's 865 Institute, on September 10, the successful completion of the high-altitude simulation test platform at the 165 Institute's Tongchuan test center, Asia's largest high-altitude simulation test platform marks a major breakthrough in China's manned lunar landing project's high-altitude simulation test of the main deceleration engine. This fills a gap in space engine test capabilities, effectively ensuring and supporting the smooth conduct of the manned moon exploration project. Review: Minsheng Securities believes that attempts by various countries in deep space exploration, commercial aerospace, and other fields will inevitably have a positive impact on the development of the global commercial aerospace industry. Commercial rockets are expected to see normalized launches, and rocket bodies, measurement and control, and fuel suppliers will encounter development opportunities. Market Outlook CMSC: Pursuing high intrinsic returns and improving economic conditions remain the subsequent choices CMSC believes that with current profits trending towards low growth and low volatility, pursuing high intrinsic returns and improving economic conditions remain the market's subsequent choices. They recommend keeping an eye on directions likely to stabilize first, such as 1) benefiting from the catalysis of the "Golden September, Silver October" peak season and mid-autumn national day, and consumption services sectors stimulated by domestic demand policies, such as automobiles, home appliances, and commercial retail; 2) the continuous boost from global energy equipment replacement demand, with emerging market infrastructure and investment demand remaining high, supporting the mid-to-high-end manufacturing industries driven by investment and exports, such as grid equipment, mechanical equipment, etc.; 3) with the interest rate cut in the third quarter likely to take effect, liquidity is expected to gradually loosen, combined with AI concept-driven and industrial trend catalysis in the technology and pharmaceutical sector, such as electronics, and medicine, etc. Positive and Negative Announcements of Listed Companies In terms of positive announcements, attention has been drawn to Wuxi ETEK Microelectronics Chairman's proposal to repurchase shares, while the negative announcement was from Baoding Tianwei Baobian Electric, which hinted at risks. Positive Announcements 1. Wuxi ETEK Microelectronics: Chairman proposes a share repurchase of 40-80 million RMB 2. Ningbo Yong Xin Optics: Co-chairman increased holdings of 20,000 shares of the company on September 12 3. Suzhou West Deane New Power Electric: Plans to repurchase company shares for 50-100 million RMB 4. Guizhou Sanli Pharmaceutical Co., Ltd.: Plans to repurchase shares for 80 million to 120 million RMB, controlling shareholder promises not to reduce holdings 5. Ningbo Construction: Subsidiary wins a 644 million RMB project bid 6. Chongqing CConstruction Engineering Group: Signs a 1.6 billion RMB contract.Negative announcement 1. 9-day 6-board Baoding Tianwei Baobian Electric: The integration of the transformer equipment business between the weapon equipment group and China Electric Equipment is still in the planning stage. 2. 2-board Hanjia Design Group: There is uncertainty in this ownership transfer matter. 3. 2-board Hainan Shuangcheng Pharmaceuticals: There is uncertainty as to whether the major asset restructuring will be successfully implemented. 4. 2-board Huayang OURGAME: The company's main business is to provide internet marketing services to customers. 5. Shenzhen Deren Electronic: Partial shares of the controlling shareholder will be auctioned off judicially. 6. Sichuan Guangan AAA Public: The company's director, Zhang Jiulong, is under investigation and has been placed in custody. Unlocking list In terms of unlocking ratios, next week Shaanxi Meibang Pharmaceutical Group and Neway Cnc Equipment (Suzhou) Co., Ltd. both have actual unlocking ratios of 75%, followed by MINGYANG TECHNOLOGY and Shanghai Geoharbour Construction Group Co., Ltd. Overseas markets Overnight US stocks closed higher, with the Nasdaq and S&P indices recording gains for the fourth consecutive day. In other markets, COMEX gold futures rose by $38.2, or 1.50%, to $2580.6 per ounce, reaching a historical high; international oil prices rose on the 12th, with New York Mercantile Exchange light crude oil futures for October delivery closing at $68.97 per barrel, up 2.47%; London Brent crude oil futures for November delivery closed at $71.97 per barrel, up 1.93%. This article is reprinted from "Tencent Self-selected Stock", edited by GMTEight: Xu Wenqiang.
13/09/2024

Essence of Morning Meeting of Securities Companies | Baijiu Consumption "The characteristics of"deproperty attachment" and"de luxury" will continue to be highlighted

The market rose and fell yesterday, with all three major indexes closing lower. Overall, more stocks fell than rose, with over 3100 stocks declining in the entire market. The trading volume of the Shanghai and Shenzhen markets was 515.6 billion, an increase of 16 billion from the previous trading day. In terms of sectors, the Hainan free trade zone, Huawei Kunpeng, digital finance and taxation, and insurance sectors led the gains, while the liquor, humanoid Siasun Robot & Automation, pharmaceutical business, and AI glasses sectors led the losses. At the close of trading yesterday, the Shanghai Composite Index fell 0.17%, the Shenzhen Component Index fell 0.63%, and the ChiNext Index fell 0.42%. At today's brokerage morning meeting, Guotai Junan stated that the characteristics of liquor consumption of "going beyond real estate dependence" and "going beyond luxury" will continue to be highlighted; China Securities Co., Ltd. stated that the trading rules for the issuance of green certificates have been released and the environmental value of green electricity is accelerating; Huatai proposed to pay attention to the release of new products from Apple Inc. and the pace of implementation of AI functions. Guotai Junan: The characteristics of liquor consumption of "going beyond real estate dependence" and "going beyond luxury" will continue to be highlighted Guotai Junan stated that in the fall of 2024, in addition to Maotai and Wuliangye Yibin, liquor companies have generally relaxed their pricing systems and increased their expenses in terms of sales. Looking ahead, it is speculated that the characteristics of liquor consumption of "going beyond real estate dependence" and "going beyond luxury" will continue to be highlighted. In this dimension, "share is brand," companies can leverage their own product structure advantages, use strong channels, big brands, and large production capacity, and leverage appropriate pricing strategies to continuously squeeze out competing products. The main contradiction in the subsequent investment in the liquor sector is the re-balancing of supply and demand and the restructuring of industry growth expectations. In this dimension, the market is more concerned about the initiation of destocking and the new balance of high-end liquor wholesale prices. The sales performance of core products in the future and the realization of apparent growth rate should match. Maotai and other high-end liquor wholesale prices are expected to reach a new stability after the peak season, which will support the valuation of the sector. Companies need to make urgent decisions on their strategic direction. Except for a few brands like Maotai, companies that are not bound by prices or product structures will have a competitive advantage in the future. Companies need to adapt their share strategies to their own needs and observe the strategic flexibility of the company. China Securities Co., Ltd.: The issuance and trading rules for green certificates have been released, accelerating the realization of the environmental value of green electricity China Securities Co., Ltd. pointed out that recently, the National Energy Administration issued the "Renewable Energy Green Electricity Certificate Issuance and Trading Rules," which clearly states the general principles of green certificate issuance and trading: "Unified issuance, open trading, market competition, transparent information, and traceability throughout." Specifically, in terms of green certificate issuance, the National Energy Administration will automatically issue green certificates in batches based on monthly electricity data provided by grid enterprises and power trading institutions. In terms of trading methods, they mainly include listing trading, bilateral negotiation, and centralized bidding. In terms of the validity period of green certificates, the "Rules" specify a validity period of 2 years, starting from the natural month of electricity production (including), and set a transition period. For renewable energy projects' electricity generation before January 1, 2024 (excluding), the corresponding validity period of green certificates is extended to the end of 2025. Overall, the construction of China's green certificate market continues to make progress, and the environmental value of green electricity is accelerating, which may marginally improve the profitability pressure of new energy generation projects. Huatai: Pay attention to the release of new products from Apple Inc. and the pace of implementation of AI functions On September 10, Apple Inc. held its autumn product launch event, introducing/updating four iPhone 16 models, two Series 10/Ultra 2 watches, and three headphones AirPods 4/AirPods Max/AirPods Pro 2, with all new specifications matching previous media reports. The main changes to the iPhone include: 1) Hardware: support for Apple Inc.'s intelligent 3nm A18 chip, Camera Control, image upgrades, etc. 2) Software: Gradual implementation of AI functions. The highlights of wearable products include the addition of health detection functions to the watch and the infiltration of active noise reduction into Airpods 4. Optimistic about the AI-driven user upgrading trend and the continuous increase in average selling price under the trend of high-end products, it is recommended to focus on related industries such as periscopic lenses, heat dissipation, and acoustics. This article is reprinted from "Cai Lianshe". GMTEight editor: Liu Jiayin. (Note: The translation may have some technical terms that are not accurately represented in English.)
13/09/2024
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