Market News // China's national economy got off to a good start in the first quarter of 2024. According to the preliminary calculation of the National Bureau of Statistics, the gross domestic product (GDP) in the first quarter was 296299 billion yuan, an increase of 5.3% year-on-year and 1.6% month-on-month at constant prices
Premier Li Qiang stressed that under the new situation, the Canton Fair should be better and better, and make greater contributions to the mainland's expansion of high-level opening up and the construction of an open world economy. It is necessary to actively explore the normalization of online platforms, promote better integration of online and offline, and create a "never-ending" Canton Fair.
The State Council Information Office held a press conference on the macroeconomic situation and policies. Liu Sushe, deputy director of the National Development and Reform Commission, said at the press conference that the implementation of macro policies will be strengthened, and efforts will be made to consolidate and enhance the positive trend of economic recovery, and promote the high-quality completion of the annual economic and social development goals and tasks. The main points of the press conference include: (1) strengthening the implementation of macro policies and giving full play to the role of active fiscal policy and prudent monetary policy, (2) studying and drafting action plans to support the security capacity building of major national strategies and key areas, (3) further accelerating the issuance of plans, strengthening the implementation of plans, and continuously improving the efficiency of the use of funds in the central budget (4) forming a final list of preparatory projects as soon as possible, urging local governments to accelerate the issuance and use of bonds, (5) accelerating the legislative process of the private economy promotion law, and (6) consumption is expected to maintain a steady upgrade and steady development trend.
The U.S.-China Financial Working Group held its fourth meeting, during which the two sides had professional, pragmatic, candid and constructive exchanges on monetary policy and financial stability, financial regulatory cooperation, institutional arrangements for financial markets, cross-border payments and data, sustainable finance, anti-money laundering and counter-terrorist financing, financial infrastructure, and other financial policy issues of mutual concern.
Guo Ruiming, director of the Department of Supervision of Listed Companies of the China Securities Regulatory Commission, answered questions from reporters on issues related to dividends and delisting. Guo Ruiming pointed out that the implementation of other risk warnings (ST) if the dividends do not meet the standard, mainly focusing on improving the stability and predictability of dividends of listed companies, focusing on companies that have the ability to pay dividends but do not pay dividends for a long time or have a low dividend ratio. ST is not a delisting risk alert (*ST), it is mainly to remind investors to pay attention to the company's risks. If a company is ST for this reason alone, it will not lead to delisting, and it can apply for revocation of ST after certain conditions are met. The purpose of this delisting indicator adjustment is to increase efforts to clear out the "zombie shells" and "black sheep", not for "small-cap stocks". Steady arrangements have been made in terms of standard setting and transition period arrangements, which will not have an impact on the market in the short term. There is a view in the market that "this delisting rule change is mainly for small-cap stocks", which is a pure misreading.
There will be significant changes in the settlement of U.S. stock trades. The NYSE said that from May 28, the settlement cycle of U.S. stock trading will change from T+2 to T+1.
Chengdu Municipal Administration for Market Supervision issued a circular on the investigation and verification of gas-related problems reported by citizens: gas companies have problems such as copying by estimation and illegal valuation; a joint investigation team has been dispatched to Chengdu Gas Group and other gas companies to conduct a thorough investigation of related problems and carry out centralized rectification; and the relevant gas companies will be instructed to refund the full amount of the gas fees that have been investigated and confirmed to be overcharged. Chengdu Municipal Administration for Market Supervision issued a circular on the investigation and verification of gas-related problems reported by citizens: gas companies have problems such as copying by estimation and illegal valuation; a joint investigation team has been dispatched to Chengdu Gas Group and other gas companies to conduct a thorough investigation of related problems and carry out centralized rectification; and the relevant gas companies will be instructed to refund the full amount of the gas fees that have been investigated and confirmed to be overcharged.
The second phase of the rate reform of the mutual fund industry has been implemented. The China Securities Regulatory Commission (CSRC) formulated and promulgated the Regulations on the Administration of Securities Transaction Costs of Publicly Offered Securities Investment Funds, which came into effect on July 1. After the promulgation and implementation of the "Provisions", the total annual stock trading commission of public funds will be reduced by 38% based on static data, and the first two phases of rate reform measures can save investors about 20 billion yuan per year. It is reported that the preparation for the reduction of the commission rate for the first stock transaction will be completed before July 1. The third phase of relevant reform measures is expected to be launched by the end of 2024, and the regulation of fund distribution fees and other supporting reform measures is steadily advancing.
The China Securities Regulatory Commission (CSRC) has issued five measures for capital market co-operation with Hong Kong to help Hong Kong consolidate and enhance its status as an international financial centre and jointly promote the coordinated development of the capital markets of the two places. The first is to relax the scope of eligible products of equity ETFs under Stock Connect. The second is to include REITs in Stock Connect, which is intended to include eligible REITs in the Mainland and Hong Kong in the Stock Connect with reference to the Stock Connect arrangements between the two places, so as to further enrich the trading varieties of Stock Connect. The third is to support the inclusion of RMB stock trading counters in the Hong Kong Stock Connect. Fourth, the MRF arrangement will be enhanced by promoting the appropriate relaxation of restrictions on the proportion of MRF sales to clients, and allowing the investment management functions of REHK funds to be delegated to overseas asset management institutions with the same group as the manager, so as to further optimize the MRF arrangement and better meet the diversified investment needs of investors in the two places. Fifth, we will support leading enterprises in mainland industries to list in Hong Kong.
Sector matters // Optimization and upgrading of information infrastructure
The Ministry of Industry and Information Technology said that it will accelerate the implementation of policies related to large-scale equipment renewal and promote the optimization and upgrading of information infrastructure. Promote the coordinated development of computing infrastructure and accelerate the formation of a national integrated computing system. Promote the integration of 5G with big data, cloud computing, artificial intelligence and other technologies, and accelerate the research and development of 6G and 10 Gigabit optical networks. At the same time, we will accelerate the R&D and application of big data and artificial intelligence, carry out the "artificial intelligence +" action, and continue to accelerate the large-scale application of the industrial Internet. The Ministry of Industry and Information Technology said that it will further strengthen departmental coordination and central and local linkage, and accelerate the creation of a new engine for low-altitude economic growth. Focusing on the development trend of unmanned, electrified and intelligent, we will accelerate the core technology research of new general aviation equipment.
The Ministry of Industry and Information Technology (MIIT) will organize and carry out the 2024 5G Lightweight (RedCap) Breakthrough Action, including: building a standard foundation to achieve 5G RedCap technical standard penetration, and network first, completing seven key tasks such as 5G RedCap network penetration.
Data economy
Nine departments, including the Ministry of Human Resources and Social Security, issued the Action Plan for Accelerating the Cultivation of Digital Talents to Support the Development of the Digital Economy (2024-2026), closely following the needs of digital industrialization and industrial digital development, and taking about three years to carry out special actions such as cultivating, attracting, retaining and employing digital talents, increasing the effective supply of digital talents and forming a digital talent agglomeration effect. The action plan deploys six key projects, including the digital technology engineer cultivation project, the digital skill improvement action, the digital talent international exchange activity, the digital talent innovation and entrepreneurship action, the digital talent empowerment industry development action, and the digital vocational and technical skills competition.
Big spending
Sheng Qiuping, Vice Minister of Commerce, said that the Ministry of Commerce resolutely implements it, adheres to the two-wheel drive of "policy + activities", focuses on promoting the trade-in of consumer goods, and carries out a series of activities of "Consumption Promotion Year", taking multiple measures to stabilize and expand consumption, and consolidate and strengthen the positive trend of economic recovery.
tourism
At present, the tourism market has ushered in the "May Day" booking peak. According to the data of the tourism platform, the domestic long-distance travel orders during the "May Day" holiday accounted for more than half of the orders this year, and the sinking tourism market performed outstandingly. Tianshui, Xuzhou, Zibo, Hefei, Nanchang, Diqing, Jingdezhen, Shijiazhuang, Yantai, Huangshan and other cities have become the cities with the fastest growth rate of hotel bookings during the May Day holiday.
Approaching the May Day holiday, the number of air ticket searches and bookings has increased significantly. Flight Steward predicts that the average daily flight volume of civil aviation during this year's May Day holiday will exceed 14,900, an increase of 3.3% year-on-year and 4.6% over the same period in 2019, and the average daily passenger volume of civil aviation will be about 2.088 million, an increase of about 11% year-on-year and an increase of about 15.6% over the same period in 2019.
Stocks //1, Huawei Pura70 Ultra, Huawei Pura 70 Pro started the pioneer program, and officially went on sale on April 18. On April 22, Huawei Pura70 Pro+ and Huawei Pura 70 Pioneer went on sale. According to the official website of Huawei Mall, the price of Huawei Pura70 series starts at 5499 yuan, and after the two products are launched, they are sold out instantly. According to reports, the Pura70 series is equipped with HarmonyOS 4.2, and the whole system supports AI air control, intelligent payment, and access to the Pangu model. The launch of the Pura70 series is expected to further drive sales growth in high-end smartphones.
2. Baofeng Energy responded to the "flash fire accident" and said that the conversion gas of the 200,000 tons/year coke oven gas to methanol unit of Dongyi Environmental Protection was leaked. A flash fire accident occurred during the plugging process, resulting in the death of 2 on-site workers and the injury of 4 employees. At present, the emergency response to the above-mentioned accident has been completed, and the cause of the accident is under investigation.
3. China FAW plans to launch Hongqi brand high-end mobile phones. China FAW and ECARX signed a strategic cooperation agreement on smart cockpit, and the two parties will start a comprehensive strategic cooperation in the field of smart cockpit, and will jointly build Hongqi brand high-end mobile phones to bring the ultimate interconnected and intelligent interactive experience to users.
4. Lei Jun, chairman of Xiaomi, said that the sales of Xiaomi SU7 are 3-5 times higher than expected, and the official version of Xiaomi SU7 has been delivered on April 18. Some netizens think that Xiaomi SU7 is not cost-effective enough, Lei Jun said that pure electric car companies basically do not make money, and do not talk about cost performance in the industry with huge losses. Lei Jun also refuted the rumors of his "cool literary life", saying that he was not the top student in the college entrance examination, nor did he score 700 points, and Cari did not have a cold 4 billion.
Xiaomi Auto announced that from 9 a.m. on April 19, it will open a 24-hour time-limited reconfiguration, and users who have locked a single non-founding version can change it in the Mi Auto APP.
5. High-tech Development issued an announcement that the company previously planned to acquire 70% of the equity of Sichuan Huakun Zhenyu Intelligent Technology Co., Ltd. As of the date of disclosure of this announcement, the target company is in an industry affected by the internal and external environment, the market expectation is high, the company has not been able to reach an agreement with some counterparties on the transaction price, and the company cannot issue a notice of convening a general meeting of shareholders within six months (before April 19, 2024) after the announcement of the first board resolution to purchase assets by issuing shares.
6. The 2024 Baidu Create AI Developer Conference was held on April 16, and the Wenxin Large Model 4.0 Tool Edition and Baidu Intelligent Cloud Wanyuan's new generation of intelligent computing operating system were officially released. According to reports, the number of Wenxin Yiyan users has exceeded 200 million, the average daily API call volume has exceeded 200 million, and the number of customers served has reached 85,000.
7, Liu Qiangdong AI digital human started live broadcast on JD.com. AI Liu Qiangdong said that Jingdong procurement and sales bring low-cost and good things to consumers at affordable prices. Jingdong does not charge pit fees and talent commissions, which not only benefits consumers, but also attracts excellent merchants to settle in.
8. NIO's car-making qualification was officially approved. The tail mark of NIO's new car has changed from "JAC" to "NIO". This means that NIO's car-making qualification has been approved and the production line switch has been completed, and JAC's production qualification is no longer used, and it has begun to deliver products under the name of NIO.
NIO announced that the all-domain navigation assistance NOP+ urban function will be fully delivered nationwide on April 30 on the NT2 platform model.
9. Xpeng Motors announced that from now until May 5, 2024, it will launch a limited-time car purchase subsidy of 500 million yuan, covering a total of four models of Xpeng G9, G6, P7i, and 2024 Xpeng P5. Specifically, during the event, orders for Xpeng P7i models can enjoy up to 65,000 yuan worth of car purchase rights, including a time-limited reduction and exemption of up to 50,000 yuan for the whole series.
10. The new product of Moutai alcohol is about to start the national investment strategy. Moutai Health Liquor Co., Ltd. revealed that the Moutai alcohol new product appreciation activity will be launched in ten Moutai alcohol core markets and new product target markets such as Henan, Fujian and Jiangsu from April 17.
11. CNNC issued a statement saying that CNNC Titanium Dioxide has no affiliation or equity relationship with the company, nor does it have any investment, cooperation and other relationships, and all its actions have nothing to do with CNNC. Previously, the matter involved the violation of the 5.3 billion yuan fixed increase of China Nuclear Titanium Dioxide, and the company's actual controllers Wang Zelong, CITIC Securities and Haitong Securities were all investigated by the Securities Regulatory Commission.
12. Following *ST Civil Control and *ST Meisheng, *ST New Textile was also locked and delisted in advance. Due to the low stock price, according to the current stock price calculation, even if the price limit of these companies continues to rise in the next few trading days, the stock price of these companies will not be able to return to above 1 yuan, and meet the delisting condition of "less than 1 yuan for 20 consecutive trading days", and lock in the delisting in advance.
13. China National Nuclear Corporation announced that the mainland has realized the localization of carbon-14 isotopes. Carbon-14 is a radioactive isotope that is used in applications such as Helicobacter pylori detection, pesticide residue detection, and measurement of particulate matter concentrations in ambient air such as PM2.5. Previously, the mainland's supply of carbon-14 was almost entirely imported, which was expensive and insecure.
Restricted shares lifted // Wind data statistics show that this week (April 22-April 26), a total of 54 companies have lifted the ban on restricted shares, with a total of 4.811 billion shares, and the total market value of the ban is 137.479 billion yuan based on the closing price on April 19.
From the perspective of the market value of the lifting of the ban, April 26 is the peak period of the lifting of the ban, and the total market value of the five companies is 70.5 billion yuan, accounting for 51.28% of the lifting scale of this week. According to the closing price on April 19, the top three market capitalizations are: Huali Group (68.422 billion yuan), Deye (23.276 billion yuan), and Huaheng Biotechnology (6.012 billion yuan). From the perspective of the number of individual stocks, the top three shares are: Beiyuan Group (1.403 billion shares), Huali Group (1.021 billion shares), and China Merchants Shekou (584 million shares).
From the perspective of the types of shares lifted, there are 22 restricted shares of the original shareholders for the first time, 10 for the placement of shares by private placement institutions, 10 shares for equity incentives, 5 for the initial strategic placement of shares, 5 for the initial issuance of restricted shares of the original shareholders, 5 for the initial strategic placement of shares, 2 for the initial placement of institutional placement shares, 10 for the initial placement of institutional restricted shares, and 1 for the listing and circulation of additional commitment restricted shares.
New stock calendar // Wind data shows that this Thursday (April 25) there will be 1 new share issuance of Ole New Materials, with an issue of about 40.0112 million shares, and is expected to raise 655 million yuan.
According to the data, the main business of Ole New Materials is the research and development, production and sales of high-performance sputtering targets, the main products include copper targets, aluminum targets, molybdenum and molybdenum alloy targets and ITO targets of various sizes and forms, etc., which can be widely used in semiconductor displays, touch screens, architectural glass, decorative coatings, integrated circuit packaging, new energy batteries and solar cells and other fields, and are the key materials for the industrial preparation of various thin films. Institutions look at the market outlook // Zhongtai Securities: There are tops and bottoms, and volatility increases
The index may show a pattern of "tops and bottoms, with increased volatility". First of all, it should be emphasized that being in a "transition" period does not mean that fundamental factors are completely dominant in the short term, and similarly, the influence of non-fundamental pricing factors cannot be ignored, which is a process of weight change. Roughly from a historical point of view, the "volume and price differentiation" stage equivalent to the duration of this round, the improvement of the performance of listed companies still has to wait until the price improves. The judgment of "bottom" mainly comes from the support of non-fundamental factors, including strict supervision. In terms of style, we are more optimistic about the performance of the value of the market, first, in the short term, the market is expected to be more pessimistic, and from a practical point of view, the hedging demand may rebound in stages; We will continue to pay attention to globally priced commodities and export varieties dominated by external demand.
Shenwan Hongyuan: The growth rate of A-share earnings will also rebound further
The year-on-year growth rate of revenue and net profit of A-shares in 2024Q1 is expected to bottom out, but it is expected to still be dominated by weak recovery performance when the new and old drivers of the mainland economy are converted. From January to February 2024, the cumulative year-on-year growth rate of total profits and operating income of industrial enterprises continued to increase by 12.5 and 3.4 percentage points from the previous month to 10.2% and 4.5%, respectively, of which the growth rate of total profits turned negative to positive, so it is expected that the profit growth rate of A-shares in 2024Q1 will also further rebound, maintaining the previous judgment of the bottom of 2023Q2 profits.
Huafu Securities: Pay attention to the opportunity of small- and medium-cap stocks that have been wrongly killed
Small and micro-cap stocks in the A-share market have seen sharp volatility this week, with a sharp rebound on Wednesday after falling sharply in the previous two trading days. Historically, the over- and small-cap style has strong mean reversion characteristics, including excess returns and relative valuations. Small-cap stocks are currently at historically low quantile levels on both counts and are not significantly overvalued.
Looking ahead, the recent introduction of a series of new policies in the capital market is a major positive for China's capital market, which will help truly good companies stand out in the future. With the support of the government's policy to encourage the development of small and medium-sized enterprises and innovative enterprises, some small-cap stocks in the technology growth segment can quickly adapt to market changes and technological innovation, and are expected to become market leaders in emerging industries in the future. It is recommended to pay attention to the investment opportunities of small- and mid-cap stocks that have been wrongly killed in the process of the recent market correction.
Huajin Securities: Is the style necessarily biased towards the market under strict supervision?
When the A-share delisting intensified, the performance of the broader market was relatively superior, which was greatly affected by external shocks, policies and fundamentals.
At present, the conditions for the dominance of the large market are not fully met, and the subsequent style of the large and small markets may be balanced. According to the historical experience of A-shares, there is no obvious negative impact, and the style is balanced under the weak fundamentals. First, in terms of external shocks, there may be no obvious negative impacts in the short term. Second, the policy has a certain support for the style of the large market: real estate relaxation, technological innovation, trade-in, etc., have certain support for banks, electronics, and home appliances with a high proportion of large-cap stocks. Second, the fundamentals may be weakly repaired. Based on the historical experience of U.S. stocks, the style may be skewed towards large-cap and high-performing small- and mid-cap. First, in terms of policy and external shocks, firstly, the policy encourages dividends and mergers and acquisitions, and the large market and the high-performing mid-market may benefit; second, there is no obvious external impact in the short term. Second, in terms of fundamentals, the short-term continuation of weak repair has limited support for the broader market. Third, in terms of the industrial cycle, under the general trend of artificial intelligence superimposed on the domestic development of new quality productivity, high-performing small and medium-sized caps may benefit.
Great Advance Glance //