【Economic Calendar】
The Seventh Session of the Standing Committee of the 14th National People's Congress (NPC) was held in Beijing from December 25 to 29
Trading of Northbound Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Southbound Southbound Stock Connect will be suspended
December 25 is the Christmas holiday in the United States, and the U.S. stock market is closed for one day
Last Friday, local time, U.S. stocks closed mixed, with light trading volumes. At the close, the Dow fell 0.05%, the Nasdaq rose 0.19%, and the S&P 500 rose 0.17%. The S&P 500 is just 0.9% shy of its closing record.
The three major stock indexes closed the week with gains, marking the eighth consecutive week of weekly gains. This is the first time since 2019 that the Dow and the S&P 500 have recorded eight consecutive weekly positives since 2017. The Dow is up 0.2% for the week, the Nasdaq is up 1.2%, and the S&P 500 is up 0.8%.
On the corporate side, Nike Inc. shares closed down 11.83% at $108.04 per share. The company had previously unveiled a cost-cutting plan for the next three years, which would cut about $2 billion, while downgrading its sales outlook. Nike expects full-year revenue growth of about 1%, lower than previously expected. In the current fiscal quarter, which includes the second half of the holiday shopping season, Nike expects revenue to decline from the same period last year.
Foot Locker, a retailer that relies heavily on Nike products, fell 3.93% to close at $31.03 a share.
Warren Buffett's Berkshire Hathaway increased its holdings of Occidental Petroleum stock between December 19 and 21 with a trading value of $312.1 million, according to regulatory filings, and now has a 27.7% stake in Occidental Petroleum. Occidental Petroleum shares closed up 0.61% at $60.81 a share.
In the bond market, the yield on the 10-year Treasury note rose 1.4 basis points to 3.907%, while the yield on the 2-year Treasury note fell 1.1 basis points to 4.338%, the lowest level since May 23.
According to data released by the U.S. Department of Commerce, the U.S. core PCE price index, which excludes food and energy prices, rose 3.2% year-on-year and 0.1% month-on-month in November, below expectations of 3.3% and 0.2%, respectively.
According to another data released by the U.S. Department of Commerce, U.S. new home sales fell 12.2% month-on-month to 590,000 units in November, a one-year low and lower than the previous value and expected levels, as they continued to be pressured by rising mortgage rates. New home sales fell significantly in the southern and western U.S., with sales in the southern U.S. down nearly 21%. In addition, the median price of new home sales in November was $434,700.
►►From December 21st to 22nd, the National Financial Work Conference was held in Beijing:
- It is necessary to strengthen the counter-cyclical and cross-cyclical adjustment of macroeconomic policies, and continue to implement a proactive fiscal policy;
- Promote the construction of a unified national market and promote the steady growth of consumption;
- Intensify efforts to resolve existing hidden debts and resolutely prevent new hidden debts;
►►The People's Bank of China (PBOC) released the China Financial Stability Report (2023):
- will maintain the basic stability of the RMB exchange rate at a reasonable and balanced level;
- Improve macro-prudential management of real estate finance and build a new model of real estate development;
- Promote the early implementation of the Financial Stability Law;
- Efforts will be made to expand domestic demand, boost confidence, and promote the economy to achieve qualitative and effective improvement and reasonable quantitative growth;
►► Mi Feng, spokesman of the National Health Commission, said at the press conference that recently, the overall number of outpatient and emergency respiratory disease diagnosis and treatment in medical institutions across the country has continued to fluctuate and decline. According to the data, on December 22, the total number of outpatient and emergency respiratory diseases in medical institutions above the second level decreased by 8.2% compared with the same period last week and 30.02% from the peak.
►►On December 22, the Measures for the Administration of Online Games (draft for comments) drafted by the National Press and Publication Administration were released to the public for comments. The relevant person in charge of the State Press and Publication Administration said that the draft for comments is based on ensuring and promoting the prosperity and healthy development of the online game industry, clarifying the solution to issues such as the access of online game business units, setting up a special chapter on "protection and rewards", and proposing a series of incentive measures. At the same time, provisions are made for the protection of the rights and interests of minors and consumers. In the process of drafting the draft for comments, the opinions of relevant departments, industry associations, enterprises and other parties were widely listened to through a variety of methods. The person in charge said that the public solicitation of opinions on departmental rules is a process of listening to opinions more widely and improving the provisions of the regulations. The State Press and Publication Administration will carefully study the concerns and opinions raised by all parties on Articles 17, 18 and other contents of the Draft, and will further revise and improve them on the basis of continuing to listen to the opinions of relevant departments, enterprises, users and other parties.
►►The Beijing Stock Exchange has formulated the Guidelines for the Continuous Supervision of Listed Companies on the Beijing Stock Exchange No. 10 - Distribution of Equity, revised the Guidelines for the Continuous Supervision of Listed Companies on the Beijing Stock Exchange No. 4 - Share Repurchase, and improved the relevant business guidelines. The above rules will come into force on December 22, 2023. The "Equity Distribution Guidelines" aim to improve the normalized dividend distribution mechanism of listed companies, and at the same time strengthen the supervision of abnormal dividends and high transfers. The first is to encourage listed companies to actively pay dividends. The second is to increase the constraints on unusually high proportion of dividends. The third is to clarify the content that should be contained in the articles of association. Fourth, strengthen the supervision of high transmission and transfer.
The three companies announced on the same day: Lu Keping was investigated by the China Securities Regulatory Commission on suspicion of violating the letter disclosure
On the evening of the 24th, Weichuang announced that Lu Keping, the actual controller of Jiangsu Sunshine Group Co., Ltd., the controlling shareholder of the limited partner of the company's controlling shareholder, Zhongshu Wolters, was investigated by the China Securities Regulatory Commission on suspicion of illegal information disclosure. On the same day, Sihuan Biotech and Jiangsu Sunshine both issued announcements. According to the announcement, Lu Keping is the actual controller of Sihuan Biotech and the indirect controlling shareholder of Jiangsu Sunshine.
Hubei Yihua: The controlling shareholder plans to increase its shareholding in the company by 150 million yuan to 300 million yuan
Hubei Yihua announced that the company's controlling shareholder Yihua Group plans to increase its holdings of the company's shares within 6 months from December 25, and the amount of shares to be increased is not less than 150 million yuan and not more than 300 million yuan. There is no price range for this increase.
Three Gorges New Materials: The controlling shareholder intends to increase its holdings of 1.5%-3% of the company's shares
Three Gorges New Materials announced that the company's controlling shareholder, Dangyang City Investment Co., Ltd. or its designated entity, intends to increase its holdings of the company's shares with its own funds, and the proportion of the increase in the company's total share capital is not less than 1.5% (including the number) and not more than 3% (including the number). There is no price range for this increase plan.
Jinghe Integration: It is planned to repurchase shares for 500 million yuan to 1 billion yuan
Jinghe Integration announced that it intends to repurchase the company's shares for 500 million yuan to 1 billion yuan, and the repurchase price will not exceed 25.26 yuan per share. The repurchased shares will be used for equity incentives at an appropriate time in the future.
Xiaomi solemnly declares that it resolutely opposes the theft of trade secrets through illegal means
Xiaomi Group's official blog issued a statement: Recently, there have been a large number of rumors and false reports about a chip company related to Xiaomi circulating on the Internet. As for this irresponsible and completely false information, we have completed the collection of evidence and reported it to the relevant departments, and made a solemn clarification.
Xiaomi said in a statement that Xiaomi is not involved in the direct management and operation of the chip company, and does not have any intellectual property rights or technical cooperation with the company. Xiaomi attaches great importance to intellectual property rights and resolutely opposes the theft of trade secrets through illegal means.
蔚来正式发布行政旗舰轿车NIO ET9
According to NIO's official blog, NIO officially released the NIO ET9, the executive flagship sedan. The NIO ET9 brings together the latest technology research and development achievements of NIO, and integrates four core technologies: self-developed intelligent driving chip, global 900V high-voltage architecture, Tianxing chassis system, and flagship-level safety standards.
GF Securities: Although the U.S. bond interest rate continued to fall this week and further confirmed the "overseas policy bottom", the trend of A-shares was weak, mainly due to weak domestic economic data and policy expectations. However, market expectations have been at a low level, and the tone set by the Central Economic Work Conference and the recent policy intensity have not been significantly lower than market expectations, but have made policy uncertainty land. At present, in the context of active industrial themes and policies that are still expected to exert force, the layout of spring restlessness.
Huaxi Securities: Judging from the turnover of the two A-share markets, the valuation of major indices and the risk premium, the current A-share market is in the medium and long-term bottom range, and tends to price the medium and long-term problems in the short term, and the market risk appetite needs to be repaired. In terms of industry allocation, the acceleration of sector rotation at the end of the year will become the main feature, and the large-cap style may have a short-term equilibrium due to the relative valuation comparison. In terms of allocation, the low-valuation dividend sector with abundant cash flow is used as the ballast stone, and the areas that will benefit from industrial catalysis and policy expectation improvement are the medium-term main line: such as Huawei's industrial chain, semiconductors, consumer electronics, etc.
Dongguan Securities: From a technical point of view, the long-short tug of war is still relatively intense, but the overall valuation of the current market has fallen back to a historical low, and asset prices may be included in too many pessimistic expectations. As many departments actively implement the spirit of the Central Economic Work Conference and steadily promote the implementation of the policy of steady economic growth, the follow-up economic data may gradually improve, repair the pessimism in the market, thereby driving the rebound of market risk appetite, and the market is expected to stabilize and repair to meet the New Year's Eve market. It is recommended to pay attention to building decoration, banking, coal, machinery and equipment, power equipment and agriculture, forestry, animal husbandry and fishery industries.
