Open: The three major indexes collectively opened low, and the CPO concept sector was among the top decliners

On April 22, it was reported that the three major indexes collectively opened low, and the CPO concept sector was among the top decliners. As of today's opening, the Shanghai Composite Index was at 3,059.06 points, down 0.20 percent, the Shenzhen Component Index was at 9,228.18 points, down 0.55 percent, and the Innovation Index was at 1,739.01 points, down 0.97 percent.

Message Side:

1. On the 19th, the China Securities Regulatory Commission formulated and issued the "Regulations on the Management of Securities Transaction Costs of Publicly Offered Securities Investment Funds" to reduce the transaction costs of fund investors. For managers with equity funds under management of more than RMB1 billion, the upper limit of the commission distribution ratio will be reduced from 30% to 15%.

2. The China Securities Regulatory Commission (CSRC) issued five measures on the 19th to further expand and optimize the Stock Connect mechanism, including supporting mainland industry leading enterprises to list in Hong Kong, and relaxing the scope of eligible products of stock ETFs under Stock Connect.

3. Chongqing and Chengdu have successively notified residents of gas problems, and the overcharged gas fees will be refunded in full. In Chongqing, 14 cases have been filed for investigation, and those responsible for violations of laws and regulations confirmed by the investigation and those responsible will be seriously held accountable; in Chengdu, at present, all complaints have been accepted, 1,189 cases have been handled, and the remaining 807 cases are being handled step up.

4. Pan Gongsheng, governor of the central bank, said at the 49th meeting of the International Monetary and Financial Committee a few days ago that since the beginning of this year, China's economic operation has continued to pick up and improve. The prudent monetary policy is flexible, moderate, precise and effective, creating a suitable monetary and financial environment for the economic recovery.

5. The China Securities Regulatory Commission recently formulated and issued the "Sixteen Measures for the High-level Development of Capital Market Services for Science and Technology Enterprises", which proposes to optimize the listing and financing environment for science and technology enterprises and support the overseas listing of science and technology enterprises in accordance with laws and regulations.

6. The Ministry of Commerce and other ten departments have recently jointly issued policies and measures to further support foreign institutions to invest in domestic science and technology enterprises. It mentions that the Ministry of Commerce is taking the lead in revising the Administrative Measures for Strategic Investment by Foreign Investors in Listed Companies to further relax the restrictions on strategic investment by foreign investors in listed companies.

7. The inaugural meeting of the Information Support Force of the Chinese People's Liberation Army was solemnly held on 19 July. Senior Colonel Wu Qian, spokesman of the Ministry of National Defense, said that the information support force is a newly created strategic branch of the armed forces, a key support for the overall planning of the construction and application of the network information system, and plays an important role and responsibility in promoting the high-quality development of our army and winning modern wars.

8. Led by the People's Government of Haimen District, Nantong City, Zhongnan Urban Construction, the controlling shareholder of Zhongnan Construction, discussed cooperation with PAG Investment Group (PAG), a well-known private equity investment company in Asia, and Jiangsu Asset Management on debt resolution and equity transactions on the afternoon of the 20th.

9. Tesla China officially announced on the 21st that the price of Model 3, Y, S, and X will be reduced by 14,000 yuan, of which the price of the new version of Model 3 will be reduced to 231,900 yuan, a decrease of 5.7%. Tesla in the United States officially announced on the 20th that Model Y, S, and X will be cut by $2,000.

10. The China Securities Regulatory Commission announced that the "Fund E Account" App was officially launched on the 19th, aiming to solve the pain points of industry services such as the majority of small and medium-sized investors forgetting their accounts and cumbersome inquiries, and striving to improve the investment experience of investors.

11. According to the statistics of the Passenger Association, in the first half of April, the retail penetration rate of new energy passenger vehicles was 50.39%, surpassing that of traditional fuel passenger vehicles for the first time.

12. China National Nuclear Corporation announced that the mainland has realized the localization of carbon-14 isotopes. After the carbon-14 target is completed, it will be supplied to the market by the end of this year after back-end processing.

13. The Ministry of Commerce announced that from April 20, 2024, anti-dumping duties will be imposed on imported polycarbonate originating in Taiwan.

14. A Tesla Chinese owner asked Musk on social media on April 20, "I look forward to Tesla's FSD (full self-driving) entering China as soon as possible, I don't know when it will be realized?When will the HW3.0 system be able to use 3D modeling images?When will the new reversing assistance be pushed to China's Tesla HW3.0 owners?" In response, Musk replied, "It may be realized soon."

15. Zhongji InnoLight released a quarterly report, with a net profit of 1.01 billion yuan in the first quarter of 2024, a year-on-year increase of 303.84%.

16. Hikvision announced that its net profit in the first quarter of 2024 was 1.916 billion yuan, a year-on-year increase of 5.78%. The net profit in 2023 will be 14.1 billion yuan, a year-on-year increase of 9.89%, and it is planned to distribute 9 yuan in 10.

17. GigaDevice announced that its net profit in the first quarter of 2024 was 205 million yuan, a year-on-year increase of 36.45%.

18. Wanfeng Aowei issued a clarification announcement that the rumors that "the company and Tesla jointly established an eVTOL company" were untrue. Wanfeng Aowei also announced that there were misleading statements in the interactive reply, and the company and the secretary of the board of directors received a warning letter from the Zhejiang Securities Regulatory Bureau and a regulatory letter from the Shenzhen Stock Exchange.

19. LONGi Green Energy announced that its shareholder HHLR Management Co., Ltd. increased its holdings of 1,281,300 shares of the company through centralized bidding on April 19, and its shareholding ratio was 5% after this increase.

20. High-tech Development Announcement, on April 20, an investor briefing on the termination of major asset restructuring was held.

21. China Nuclear Titanium Dioxide announced that the China Securities Regulatory Commission intends to impose a fine of 120 million yuan on the company's actual controllers, Wang Zelong, CITIC Securities and Haitong Securities, for transferring shares in violation of restrictive regulations.

22. The three major U.S. stock indexes closed on Friday, with the Dow up 0.56% and up 0.01% last week, the Nasdaq down 2.05% and down 5.52% last week, the worst weekly performance since November 2022, and the S&P 500 down 0.88%, falling for the sixth consecutive day and down 3.05% last week. Popular technology stocks fell, Nvidia fell 10%, its market value fell below $2 trillion, and Netflix fell more than 9%.

23. The U.S. House of Representatives voted to pass a foreign aid bill worth $95 billion on the 20th local time, including more than $60 billion in aid to Ukraine, more than $26 billion in aid to Israel, and more than $8 billion in aid to "Indo-Pacific security".

24. Inflation data has caused the Fed to reset the timetable for its first rate cut. Chicago Fed President Goolsbee said that progress in fighting inflation has stalled and that the Fed will need to wait longer to cut interest rates.

25. The International Monetary Fund expects OPEC+ to gradually increase oil production from July.

Institutional Perspectives:

According to the CICC research report, looking ahead, the recovery of the A-share market since February has slowed down but is still continuing: 1) The medium-term performance of the market mainly depends on the economic fundamentals and the recovery of the earnings of listed companies. At present, the profitability of domestic enterprises has shown a stable trend, the profits of industrial enterprises have performed well, and the marginal impact of price factors on corporate profitability has weakened. Total profit for January-February 2024 increased by 10.2% year-on-year, compared with a year-on-year decrease of 2.3% for the full year of 2023. Combined with the recently released annual reports and quarterly reports of listed companies, it is expected that the net profit growth rate of non-financial listed companies in the first quarter of this year may be basically the same as that of the same period last year, and the revenue will maintain positive growth. 2) The overall valuation of the A-share market is still at a low level, and the forward price-to-earnings ratio of the CSI 300 Index is 10.1 times after the previous repair, which is still significantly lower than the historical average level (12.6 times). 3) The further improvement of the basic system of the capital market will help improve the quality of listed companies, improve the ability of listed companies to give back to investors, and help enhance the endogenous stability of the A-share market, which will have a positive impact on the long-term performance of the market.

CITIC Securities research report said that the current low-altitude economy can be compared to the development stage of new energy vehicles in 2012, the industry is still in the early stage of commercialization, and the long-term development prospects are broad. China's development of low-altitude economy has a "late-mover advantage", on the one hand, the low-altitude economy is an important part of the development of new quality productivity, on April 17, the National Development and Reform Commission clearly pointed out that the low-altitude economy covers high-end manufacturing, artificial intelligence and other frontier industries, is a strategic emerging industry with great development potential, is expected to open up a new growth pole for the mainland economy; Looking ahead, it is expected that driven by the top-level design of the central government, a series of supporting policies will be introduced, the airspace management system will be gradually optimized, the domestic airworthiness certification progress will also lead the world, and low-altitude aircraft will first enter the ToB/ToG market and gradually penetrate into the ToC trillion-level market.