A-share pre-market report | Major restructuring! China's giant is here, rare earth leader adjusts prices

Morning heavyweight news briefing 1. The State Council issued a document to promote the high-quality development of trade in services and expand the cross-border use of the RMB in the service trade sector. Importance: The General Office of the State Council issued the "Opinions on Promoting the High-Quality Development of Trade in Services through High-level Opening". The document proposes expanding the cross-border use of the RMB in the service trade sector, supporting RMB cross-border trade financing and refinancing, and implementing a negative list for cross-border trade in services. 2. Major restructuring of A-shares, "China's giant ship" is coming! China CSSC plans to merge with China Shipbuilding Industry, both suspended from trading starting today. Importance: China CSSC and China Shipbuilding Industry announced that they are planning for China CSSC to acquire China Shipbuilding Industry through issuing shares to all shareholders of China Shipbuilding Industry. After this restructuring, the asset size of China CSSC will lead globally, becoming the world's largest flagship shipbuilding listed company. 3. Ministry of Industry and Information Technology issued a document to promote the digital transformation of the light industry: implementing large-scale digital transformation and upgrading of equipment. Importance: The Ministry of Industry and Information Technology mentioned implementing large-scale digital transformation and upgrading of equipment. They are compiling guidelines for equipment upgrades in the light industry, promoting the digital transformation and upgrading of key equipment and processes in industries such as household appliances, leather, and paper. The plan also proposes that by 2027, key enterprises in the light industry will basically achieve full coverage of digital transformation. 4. The first set of commercial mortgage rates in Guangzhou is as low as 2.89%, UBS says that the reduction of existing mortgage rates will take time. Importance: Recently, some banks in Guangzhou have entered a "2" head for the first set of mortgage rates, with China Resources Bank's first set rate as low as 2.89%. Industry insiders believe there is room for a reduction in existing mortgage rates. However, UBS believes that the reduction of existing rates will still take time, and now is not the best time to fully switch to mortgages. Financial calendar Selected Brother's reminder that there are no new stock subscriptions in Shanghai and Shenzhen today, new stocks Speed Da shares, and Yinosi on the market. 1. Reminder: Huawei will hold a press conference on Mount Everest ultra-fast charging station today. Early look at opportunities Based on the market's focus on investment opportunities, Rare Earths, e-cigarettes, and flying cars are in the spotlight. 1. China Northern Rare Earth raised its asking price by nearly 5%! Institutions believe the industry is expected to bottom out and rebound. China Northern Rare Earth announced the listing prices of its products in September 2024, with the prices of several rare earth products increasing by nearly 5% compared to the previous month, ending the consecutive flat listings in July and August. It is worth mentioning that this is the second time this year that China Northern Rare Earth has "raised" its asking price, with the last "raise" occurring in May of this year. Comment: Galaxy Securities believes that the global rare earth supply is growing at a rate of 5% in 2024, while the global demand for neodymium oxide is growing at a rate of 9%, higher than the supply of rare earths. Therefore, the supply-demand pattern of rare earths is expected to improve, and rare earth prices are expected to bottom out and rebound. 2. The State Tobacco Monopoly Administration releases new regulations on e-cigarettes, top companies' market share expected to further increase. The State Tobacco Monopoly Administration has revised and issued the electronic cigarette trading management rules, which stipulate that the ex-factory price and suggested retail price of domestically sold electronic cigarette products will be determined independently by production enterprises and brand holding enterprises. Comment: Caitong believes that the market pricing mechanism demonstrates the positive attitude of regulatory authorities towards maintaining market order and promoting healthy market development. In the long run, non-compliant products will gradually be cleared out, benefiting advantageous head companies in production, brands, and other links. 3. Xiaopeng Huitian will release its "land aircraft carrier" flying car, starting pre-orders in the fourth quarter of this year. Xiaopeng Huitian announced on its official WeChat account that it will release its "land aircraft carrier" flying car on September 3 and released a teaser video. According to the product plan, the "land aircraft carrier" will start pre-orders in the fourth quarter of this year and mass production deliveries in the fourth quarter of 2025. Comment: BOC International believes that eVTOL is an innovative travel industry with a market space reaching trillions. The industry's maturity is developing rapidly, and the first phase of commercialization is approaching, so investors should pay full attention. Market outlook Huaxi: Dividends and stable strategies remain the medium-term focus Huaxi stated that the stock market calendar effect shows that market funds may lean towards light trading before the National Day holiday. Therefore, the rebound of low-level sectors in A-shares may continue for 1-2 weeks, but with capital stock games, the overall market may continue in a volatile market pattern. In the current bottom consolidation market, the risk appetite for incremental funds in the stock market is relatively low, so dividend and stable strategies remain a more certain direction in the medium term, such as utilities, gold, etc.; in terms of themes, the consumer electronics industry in September is catalyzing more, with a focus on Huawei's triple-fold screen, AR glasses, etc. Positive and negative announcements of listed companies In terms of positive announcements, Selected Brother suggests paying attention to China CSSC's proposed merger with China Shipbuilding Industry, and in terms of negative announcements, Kunshan Kersen Science & Technology, which has been on a six-day streak, suggests risks. Positive announcements 1. China CSSC: Proposed merger with China Shipbuilding Industry, stock suspension 2. BAIC BluePark New Energy Technology: Subsidiary plans to publicly increase capital by no more than 10 billion yuan 3. China Merchants Energy Shipping: Directors and executives voluntarily terminate the centralized bidding for shareholding incentive plan. 4. Beijing Beetech Inc.: Intends to acquire control of Genesis Wiener, etc.Strong in the layout of the semiconductor and other fields.5. China Petroleum Engineering: Subsidiary wins bid for approximately 3.4 billion yuan pipeline project in the UAE. 6. Shandong Yisheng Livestock & Poultry Breeding: Plans to repurchase 8.3 million to 16.6 million shares. 7. Funshine Culture Group: Joint venture company, Beite Shengdi's shareholder plans to repurchase 45% equity. Negative announcements 1. Kunshan Kersen Science & Technology, which has had 6 consecutive trading limit up days: The company's foldable screen hinge assembly business has a single customer, and no revenue has been generated for 2024. 2. Zhejiang Tenchen Controls, which has had 2 consecutive trading limit up days in 3 days: The seats for vertical take-off and landing aircraft are still in the development stage and will not generate income in the short term. 3. Guanhao Biotech: There is no significant undisclosed information that the company should disclose. 4. AMSKY Technology: The company's 3D metal printing head is still in the trial stage, and market expansion still has significant uncertainty. 5. WPG (Shanghai) Smart Water Public Co., Ltd.: Shareholders plan to reduce their holdings by no more than 1.1419%. Unlocking list In terms of unlocking percentage, in the next five days, Zhang Xiaoquan Inc. has an actual unlocking percentage of 62.53%, followed by Zhengzhou Qianweiyangchu Food Co., Ltd and ZJFACLGFYXGS. Overseas markets Selected Brother's reminder: On Monday, the US financial markets were closed for Labor Day. In other markets, the COMEX gold futures main contract rose by 0.16% to $2531.7 per ounce; the New York Mercantile Exchange's light crude oil futures for October delivery closed at $74.04 per barrel, up 0.67%; the November delivery London Brent crude oil futures closed at $77.28 per barrel, up 0.45%. This article is reprinted from "Tencent Self-Selecting Stocks", edited by GMTEight: Chen Xiaoyi.