Evening hot topics in A-share market | Latest report from the central bank! Implement a moderately loose monetary policy well Adjust policy intensity and pace at the right time

1. The central bank's latest release! Optimal timing to adjust policy intensity and pace Importance: The People's Bank of China released the fourth-quarter 2024 monetary policy execution report. The report stated that in the next stage, financing and money supply should maintain reasonable growth. Strengthen counter-cyclical adjustments, and adjust the timing to optimize policy intensity and pace based on the domestic and international economic and financial situation and the operation of the financial market. Closely monitor changes in major central banks' monetary policies overseas, continue to strengthen the analysis and monitoring of liquidity supply and demand in the banking system and changes in the financial market, flexibly and effectively carry out open market operations, comprehensively use various monetary policy tools such as interest rates, reserve requirements, and maintain sufficient liquidity. While preventing the stagnation and idle flow of funds, guide financial institutions to further explore effective credit demand, maintain reasonable growth in monetary and credit, and ensure that the scale of social financing and money supply growth matches economic growth, expected inflation targets. 2. Urging the US to return to the right track, Ministry of Commerce responds to US imposition of 25% tariffs on imported steel and aluminum Importance: On February 13th, a spokesperson for the Ministry of Commerce responded to the issue of the US imposing a 25% tariff on steel and aluminum imports, stating that the Chinese side noted that on the evening of February 10th Eastern Time, the US government announced adjustments to import tariffs on steel and aluminum, reinstating the 232 steel and aluminum tariffs globally, and further increasing the import tariffs on aluminum products. The US approach is a typical act of unilateralism and protectionism. Many countries have clearly expressed opposition, and there is also significant opposition within the US. In fact, a WTO expert panel ruled as early as 2022 that the US 232 tariffs violated WTO rules, but the US not only retains the existing 232 steel and aluminum tariffs but further increases aluminum tariffs, severely harming the interests of all countries and seriously undermining the rules-based multilateral trading system, causing an impact on the global supply chain. China urges the US to abandon zero-sum thinking, correct its wrong practices, return to the correct track of the multilateral trading system, and work with other countries to address their concerns through equal consultations. 3. Shanghai introduces a package of policy measures to promote sustained economic recovery and improvement Importance: On February 13th, according to the Shanghai Municipal Development and Reform Commission, to fully promote a good start for the Shanghai economy in the first quarter and consolidate the momentum of sustained economic recovery and improvement, Shanghai has formulated a batch of incremental policies based on the continuation, optimization, and improvement of existing policies to effectively respond to the uncertainty of external environmental changes with policy measures. The policy measures mainly include eight aspects: 1. Make good use of fiscal and monetary policies; 2. Focus on stimulating potential consumption; 3. Focus on expanding effective investment; 4. Promote stable and high-quality foreign trade and investment; 5. Support service industry reform and innovation; 6. Promote innovation and upgrading of key industries; 7. Support the healthy development of business entities; and 8. Solidly guarantee and improve people's livelihood. 4. "Nezha 2" box office breaks 10 billion yuan, Beijing Enlight Media's market value soars to 84.9 billion yuan Importance: "Nezha: The Devil Boy Navigating the Sea" became the first Chinese and Asian film to surpass one billion yuan at the box office. Data from Beacon Professional Edition shows that as of around 7:10 PM on February 13th, the box office (including presales) of "Nezha 2" reached 10 billion yuan, ranking third on the global animation box office chart and 17th on the global box office chart, becoming the first Asian film to enter the top 20 global box office rankings. With the continuous refreshing of the "Nezha 2" box office, Beijing Enlight Media's market value has also been continuously soaring. By the close of February 13th afternoon, Beijing Enlight Media's stock price hit a limit up again, reaching 28.94 yuan per share. This is the fourth consecutive day the stock has hit the limit up. The company's market value has surged from about 28 billion yuan at the close on January 27th to the current 849 billion yuan. 5. UBS provided a benchmarking list: Cambricon to Nvidia, Xiaomi to Tesla Importance: Cambricon and Nvidia "duel," Xiaomi and Idea benchmark Tesla, Semiconductor Manufacturing International Corporation fights TSMC... UBS provided a list of Chinese and American tech stocks for comparison in its latest research report. With the release of DeepSeek's R1 model, AI development in China has once again become a focus of investor attention. In a report on the 12th, UBS's James Wang team pointed out that since the beginning of the year, AI-related Chinese listed stocks have on average risen by 15%, outperforming the MSCI China Index by 9%. Considering the current ample liquidity and low interest rates, UBS believes that AI-related stocks have a valuation reevaluation opportunity. UBS stated that Cambricon's valuation is three times higher than Nvidia's, Idea's valuation is 90% lower than Tesla's, and Semiconductor Manufacturing International Corporation's valuation is 15% lower than TSMC's. 6. E-commerce giant transforming into an AI technology company? Jack Ma reveals cooperation between Alibaba and Apple Importance: At the World Governments Summit 2025 in Dubai, United Arab Emirates, Jack Ma, co-founder and chairman of Alibaba, responded to rumors of cooperation between Alibaba and Apple, stating that Apple needs a localized partner in China to support their phone services. "Apple has talked to several Chinese companies. In the end, they chose to do business with us. We are very lucky and honored to do business with a company like Apple." For Apple, the landing of AI cooperation with Alibaba is one of its key focuses in reversing its declining domestic sales. For Alibaba, since opening its "AI-driven" strategy, the former e-commerce giant is transforming itself into a tech company, and this deep collaboration with Apple is undoubtedly a major breakthrough. 7. Industrial and Commercial Bank of China's stock price hits a new high again, can bank stocks continue this year?Continue leading the market.ife Insurance 1Montnets Cloud Technology Group Importance: On February 13, Industrial and Commercial Bank of China once rose to 6.99 yuan/share, reaching a new high in stock prices. Will bank stocks still be sought after by the market in 2025? Guotou Securities believes that although the relative returns of bank stocks in 2025 are uncertain, the absolute return probability is high. The core logic lies in the uncertainty of macro policy expectations and implementation effects, but the fundamentals are expected to stabilize and gradually improve. Passive funds and absolute return funds rising will reshape valuations, with low PB ratios and high dividends highlighting the allocation value of banks. 1. Kremlin: Putin and Trump's teams have begun preparing for a meeting On February 13 local time, the spokesperson for the Russian president, Peskov, stated that Putin and Trump have instructed their teams to begin preparations for a meeting, with the time and place of the meeting to be announced after progress is made in the future. Peskov also mentioned that Putin and Trump did not discuss sanctions in their meeting. Putin's invitation for Trump to visit Russia does not mean that Trump will attend Russia's Victory Day celebrations. 2. UK GDP unexpectedly grows in the fourth quarter, significantly reducing rate cut expectations by the central bank At the end of 2024, the UK economy unexpectedly grew, providing an opportunity for the Labour Party. According to a report from the UK National Statistics Office on February 13, the UK GDP grew by 0.1% in the fourth quarter of 2024, accelerating from the stable performance in the third quarter. This growth exceeded the expected 0.1% decline by economists and the Bank of England. In December alone, GDP grew by 0.4%, surpassing expectations. The pound strengthened after the data was released, with the GBP/USD exchange rate rising by 0.6% to 1.2517, reaching a new high in over a week. Traders reduced bets on a rate cut by the Bank of England, with a predicted decrease of 56 basis points this year. 3. Dismantle the entire US government? Musk makes astonishing statements on Thursday Musk participated in the World Government Summit in Dubai on Thursday via video call and made astonishing statements. Musk claimed that the US is now ruled by bureaucracy rather than a democratic institution, and he believes that the entire government structure needs to be dismantled, rather than leaving many institutions to be reorganized. As Musk currently serves as the Minister of Efficiency for the US government's special Department of Government Efficiency (DOGE) established by President Trump and has led actions to reduce government staff, obtain sensitive database permissions from the Treasury Department, and other initiatives, his current actions and words carry significant weight in the US political world. Market opportunities to focus on include new energy vehicles. 1. Shanghai: Continue to implement the policy of free application for new energy vehicle license plates until the end of 2025 On February 13, the Shanghai Municipal Development and Reform Commission announced a batch of incremental policies to respond to uncertainty in the external environment with effective policy measures, covering 8 aspects. Among these, in terms of replacing old vehicles with new ones, in accordance with national deployment, the scope of subsidies for consumer products to replace old products has been expanded from 8 categories of products to 15 categories, including digital products and household appliances, with an increase in funding. At the same time, the comprehensive implementation of the new round of national and city-level policies for replacing old cars with new ones will continue to implement the policy of free application for new energy vehicle license plates until the end of 2025 to promote car replacement consumption. Haitong stated that in 2025, there may be some pressure at the beginning of the year, but the replacement policy will provide certain support for sales, especially starting from Q2. In terms of structure, (1) it is expected that new energy vehicles will continue to penetrate; (2) high-level autonomous driving is expected to accelerate penetration. The possible introduction of Tesla FSD in China may trigger a ripple effect, promoting leading vehicle companies such as Huawei-affiliated/XPeng/Ideals to accelerate technological advancement and gradually gain consumer acceptance of autonomous driving. Key to the accelerated penetration of autonomous driving is cost reduction, and 2025 is expected to witness efforts by companies such as BYD Company Limited/XPeng to promote comprehensive rights for autonomous driving; (3) Exports may slow down in the short term, but an easing of EU tariff policies is advantageous, and overseas capacity deployment will still take time. Haitong also pointed out that in January, the passenger car market is acceptable, and they expect the sales of top new energy vehicles to increase again. Despite the significant boost in new energy car sales in certain price segments due to the 2024 replacement policy, the increase in the product power of domestically produced new energy passenger cars with electric and intelligent capabilities and the corresponding brand recognition improvement are the fundamental factors for long-term sales growth. Following the implementation of the detailed rules of the 2025 replacement policy, the sales of leading domestic new energy vehicle brands are expected to reach new highs. In addition, the following sectors are worth watching: 2. Insurance| Insurance premium income soars by 32%! New China Life Insurance announces the most "New Year's Day" in five years. 3. Siasun Robot&Automation| Mass production may start as early as 2028? Apple Siasun Robot&Automation speeds up its layout. 4. Cross-border e-commerce| After the Spring Festival, orders for AliExpress B2B increase by 50%. In terms of positive announcements, it is recommended to focus on Zhejiang Huayou Cobalt's controlling shareholders increasing their holdings; in terms of negative announcements, pay attention to risks indicated by the continuous seven-day upward trend of Montnets Cloud Technology Group.Life Insurance: Premium income in January was 39.449 billion yuan, an increase of 32% year-on-year.6. Jiangsu Libert INC.: Wholly-owned subsidiary wins bid for 226 million yuan engineering project Slightly negative announcement 1. 7 consecutive boards for Montnets Cloud Technology Group: The company's core technologies related to the development and application of DeepSeek systems 2. 7 consecutive boards for Hang Zhou Iron & Steel: Computing power business accounts for a very small proportion, not involving the research and development of computing power core technologies 3. 7 days, 5 consecutive boards for New East New Materials: The business revenue of computing power in 2024 accounts for no more than 10% of total main business revenue 4. ABT Networks: Some network security products have been integrated into the DeepSeek series large models, with related business revenues accounting for a very small percentage of operating income 5. 2 consecutive boards for Cubic Digital Technology: The company has not been involved in and has not generated sales revenue from products/technologies within the DeepSeek hot concept range 6. Greatoo Intelligent Equipment Inc.: The impact of Siasun Robot & Automation related business revenue on the company's short-term performance is limited This article is reproduced from "Tencent Stock Selection", edited by GMTEight: Li Fo.