Hot Spotlight //
1. Li Qiang emphasized during the investigation of the 2024 Beijing International Automobile Exhibition that he should vigorously develop intelligent networked new energy vehicles and promote the high-end, intelligent and green upgrading of the automobile industry. Li Qiang emphasized that the current Chinese and global new energy vehicle markets are continuing to grow. China will further promote the construction of a unified national market, expand high-level opening-up, treat domestic and foreign-funded enterprises equally, and promote more extensive exchanges and cooperation between Chinese and foreign car companies for common development and mutual benefit. Li Qiang pointed out that the mainland is carrying out a new round of large-scale equipment renewal and trade-in of consumer goods. It is necessary to give better play to the leading role of the automobile industry in expanding investment and promoting consumption, implement policies to support purchase and use, and release the consumption potential of bulk commodities such as automobiles to a greater extent.
2. Chengdu has introduced a new real estate policy, canceling the purchase restriction from April 29, and the housing transaction will no longer review the qualifications for house purchase, no longer limit the number of units purchased, and no longer notarize the lottery to select the house. Implement the "red, orange and green" three-color management of the supply of commercial construction land, and appropriately reduce the supply of land for the "red" and "orange" areas with large stock scale and long housing sales cycle. Promote the development of low-density, high-quality residential products in suburbs (cities) and counties. At the same time, Chengdu adjusted the maximum loan amount of the provident fund for the first home of a family with many children.
3. The Central Bank, the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Financial Supervision jointly held a large-scale equipment renewal and consumer goods trade-in financial work promotion meeting, emphasizing that on the basis of following market rules, the government should introduce incentive policies, and financial institutions should make independent decisions, bear their own risks, and issue loans in accordance with the principles of marketization and rule of law. All financial institutions should strengthen overall planning and coordination to ensure that the implementation of policies is carried out in detail. It is necessary to establish an internal working mechanism as soon as possible, refine the objectives and tasks, improve the supporting systems and measures, and optimize the business handling process. It is necessary to strengthen communication with the competent departments of the industry, identify the key points of work, accelerate the docking of projects, and actively meet the financing needs of key areas.
4. The China Association of Automobile Manufacturers officially issued the "Notice on the Testing of 4 Safety Requirements for Automotive Data Processing (the First Batch)", in which 76 models from 6 companies, including BYD, Ideal, Lotus, Hezhong New Energy (Nezha Automobile), Tesla, and Weilai, meet the 4 compliance requirements of automotive data security. Tesla's domestically produced Model 3 and Model Y are the only foreign-funded companies that meet the compliance requirements for automotive data security. Tesla said that various localities have successively lifted the ban on driving and parking restrictions on intelligent networked vehicles such as Tesla.
Macro//
1. On April 28, the central bank launched a 7-day reverse repurchase operation of 2 billion yuan, and the winning interest rate was 1.8%. Wind data shows that there is no reverse repurchase expiration on the same day, so the net investment in a single day is 2 billion yuan.
2. Premier Li Qiang met with Elon Musk, CEO of Tesla Inc. in Beijing. Li Qiang said that China's super-large market will always be open to foreign companies. Musk said that Tesla is willing to further deepen cooperation with China and achieve more win-win results.
3. The National Immigration Administration has decided to introduce six policies and measures for the entry and exit management of convenience and enterprises from May 6, involving enriching visa channels, optimizing application procedures, extending the period of stay, and meeting diverse tourism needs. These include the pilot implementation of the "full online application" for the renewal and reissuance of entry documents in 20 cities including Beijing, and the implementation of "intelligent expeditious processing" and "nationwide general application" for business endorsements to Hong Kong and Macao.
4. The Ministry of Commerce issued the "Three-Year Action Plan for Digital Commerce (2024-2026)", proposing specific measures to promote the digital development of various fields of commerce, and will carry out five key actions, including "strengthening the foundation of digital commerce", "expanding and eliminating digital commerce", "promoting trade through digital commerce", "promoting production through digital commerce" and "opening up digital commerce", and put forward a total of 20 specific measures such as cultivating and expanding new consumption and promoting cross-border e-commerce exports.
5. The State-owned Assets Supervision and Administration Commission (SASAC) held an on-site promotion meeting for the deepening and upgrading of the reform of state-owned enterprises in Zhuzhou, Hunan. Wang Hongzhi, deputy director of the State-owned Assets Supervision and Administration Commission, said that one of the current priorities of the current work is to tackle the problems from four aspects: internal and external systems, assessment incentives, tolerance for failure, and application scenarios. For basic research and forward-looking disruptive research, state-owned assets and state-owned enterprises should establish a medium- and long-term assessment and differentiated support system. Priority will be given to the increase in total wages for scientific and technological talents who have made contributions, and the total salaries of scientific research teams undertaking major national scientific and technological projects will be separately listed, and the pilot reform of the empowerment of scientific and technological achievements will be expanded as soon as possible.
6. Wang Hongzhi, deputy director of the State-owned Assets Supervision and Administration Commission, said that at present, 19 places have established a multi-departmental linkage green channel for the disposal of "two nons" and "two capitals", but there are still some places with heavy exit tasks that have not yet been established. It is necessary to actively coordinate with relevant departments to accelerate the establishment of green channels. It is necessary to take multiple measures to "reduce losses and stop bleeding", especially in the localities and central enterprises where the problem of "small scattered and weak" is more prominent, and we must come up with greater determination and more practical measures to strive for "zero" within a time limit.
7. Wang Hongzhi, deputy director of the State-owned Assets Supervision and Administration Commission, said that central enterprises and local large state-owned enterprises, especially leading enterprises in the industry, should accelerate the implementation of the "AI+" special action. He also said that it is necessary to flexibly use mergers and acquisitions, listing and financing, industrial coordination, joint research and other ways to develop new industries. It is suggested that relevant enterprises should conduct a comprehensive combing and review of the innovation system in the first half of this year, and learn from the experience of advanced enterprises.
8. The Ministry of Finance and the Ministry of Commerce will carry out the construction of pilot cities for the modern commercial circulation system in batches from 2024, and create a number of modern commercial and trade circulation node cities with integrated urban and rural development, strong radiation driving force and good supply resilience. The pilot work is planned to be implemented in three batches, with a construction period of three years, and no more than 20 cities are planned to be supported in 2024.
9. According to the business environment survey conducted by the China Council for the Promotion of International Trade on more than 600 foreign-funded enterprises in the first quarter, more than 70% of the surveyed foreign-funded enterprises are optimistic about the development prospects of the Chinese market in the next five years, an increase of about 3.8 percentage points from the previous quarter. More than half of the foreign companies surveyed believe that the attractiveness of the Chinese market has "increased", an increase of about 2.9 percentage points from the previous month.
10. Henan Province issued the key tasks of comprehensively deepening reform in 2024, implementing the deepening and upgrading of the reform of state-owned enterprises, accelerating the strategic restructuring and professional integration of state-owned enterprises in key areas, and supporting provincial-level state-owned capital and municipal and county-level state-owned capital to implement strategic restructuring and achieve deep integration by relying on property rights relations and capital ties, so as to amplify the efficiency of state-owned capital.
11. According to the data of the Shanghai headquarters of the central bank, at the end of March, the balance of domestic and foreign currency loans in the city was 11.66 trillion yuan, a year-on-year increase of 7.8%, and the month-end growth rate increased by 0.8 percentage points month-on-month, the highest since June 2023. The balance of RMB real estate loans was 2.75 trillion yuan, a year-on-year increase of 2%, 0.7 percentage points higher than the same period last year.
12. According to the Statistical Communiqué on the National Economic and Social Development of Shenzhen in 2023, at the end of 2023, Shenzhen's permanent population was 17.7901 million, a record high, an increase of 128,300 over the end of the previous year, a year-on-year increase of 0.73%, ranking first in Beijing, Shanghai, Guangzhou and Shenzhen.
Domestic Stock Market //
1. The disclosure of the first quarterly report of the public offering officially ended before the date. According to the data, the asset scale of public funds in the first quarter was about 31.89 trillion yuan, compared with the overall rebound in the fourth quarter of last year, and its stock position was at a historically high level. From the perspective of industries, the market value of manufacturing and financial industries is relatively high, and high-dividend sectors have received obvious attention from public funds. Looking ahead, fund managers are more optimistic about the overall market, and are highly concerned about the driving force of economic transformation represented by new quality productivity to bring new investment opportunities to the market.
2. As the disclosure of annual reports is nearing the end, the dividend plans of A-share companies have surfaced one after another. Wind data shows that as of April 28, more than 3,300 listed companies have released their 2023 dividend plans. The dividends of A-share companies show three major characteristics: listed companies pay large dividends and frequent dividends for many times, and the "iron rooster" company plans to pay dividends for many years, and the high-dividend sector is becoming more and more favored by investors.
3. With the disclosure of the first quarterly report of A-shares, the holdings of public funds under many international asset management giants such as BlackRock, Fidelity, and Neuberger Berman have been unveiled. BlackRock China New Horizons' heavy holdings in the first quarter include CNOOC, Zijin Mining, China Mobile, Sanmei, China Shipbuilding, etc. Fidelity's six-month heavy holdings include CNOOC, Shaanxi Coal, China Shenhua, Midea Group, Yancoal Australia, etc. The heavy stocks of Neuberger Berman China Opportunities include Sino Biologics, Powerway Alloys, Luxshare Precision, Xinbao Shares, Kangenbei, etc.
4. A number of tens of billions of private equity positions surfaced in the first quarter. Deng Xiaofeng of Gaoyi Assets made frequent moves, reducing his holdings of Zijin Mining, Yun Aluminum Co., Ltd., Aluminum Corporation of China and other cyclical stocks, and at the same time newly bought NOVOSENSE Micro and slightly increased his position in Huafon Chemical; Feng Liu reduced his holdings in Baofeng Energy and Hikvision, increased his holdings in Longbai Group, newly entered Ruifeng New Materials, and slightly increased his holdings in Dongcheng Pharmaceutical, Angel Yeast, Kanghua Biotechnology, etc.
5. As a representative of long-term funds, the trends of insurance capital in the equity market in the last two quarters (the fourth quarter of last year and the first quarter of this year) have gradually become clear. At the same time, in terms of new stocks in the past two quarters, resource sectors such as chemicals, non-ferrous metals, and coal have also been favored by insurance funds. For the trend of A-shares this year, most insurance funds are cautiously optimistic, and at the same time express optimism about low-valuation, high-dividend stocks.
6. In the first quarter of this year, the willingness of A-share listed companies to purchase various types of wealth management products fell to the freezing point in the past five years. Whether it is the number of companies that purchase wealth management products, or the number and total amount of wealth management products subscribed, they have all hit a new low in the same period in the past five years.
7. Chongqing Gas announced that recently, the joint investigation team of the masses in the gas field in Chongqing released the results of the investigation on related issues, which the company fully accepted. The company comprehensively carried out data comparison, self-inspection and self-correction, and found 516 cases of overcharging and overcharging gas fees. The above-mentioned overcharge of 1,182 gas fees, affecting 1218950 cubic meters of gas, involving an amount of 2,858,545.83 yuan, has been fully cleared and disposed of.
8. Gree Electric announced that after the company's research and decision, from now on, Gree Electric will invest 3 billion yuan to start the trade-in activities for household appliances.
9. China Mobile officially released the action plan for the integrated computing network to lead the digital intelligence industry, and announced that it will accelerate the computing network to a new stage of computing network 3.0. China Mobile also released the world's largest single intelligent computing center, China Mobile Intelligent Computing Center (Hohhot), deploying about 20,000 AI accelerator cards, with a localization rate of over 85% and an intelligent computing scale of up to 6.7EFLOPS.
10. Recently, a brokerage firm in East China issued an internal notice saying that before the end of June this year, the spouses, parents and other stakeholders of other employees of the company need to cancel or transfer the stock account to the company's business department, and are not allowed to have stock accounts in external brokers. It is understood that previously, it was a routine operation in the brokerage industry to require employees to declare the relevant information of their family members' securities accounts. However, many brokerages in the industry do not have a mandatory requirement that employees must transfer the accounts of their family members to the company's sales department.
11. According to some media, Xiaomi Auto has started the development of a new platform, which will use a range-extended hybrid powertrain, and the three planned products are all SUV models, positioning family cars. Regarding the report, Wang Hua, general manager of the public relations department of Xiaomi Group, said that the news was untrue.
12. *ST Zuojiang announced that according to the "2023 Annual Report" disclosed by the company, the company's audited net profit is negative and the operating income is less than 100 million yuan, and the company's 2023 annual financial statements have been issued with an audit report with a non-standard audit opinion, and the company's shares will be terminated from listing. Trading in the company's shares will be suspended from the market open on April 29, 2024.
Finance//
1. The "National Time-honored Brand Industry Investment Fund" is expected to be established in the near future. The National Time-honored Brand Industrial Investment Fund will focus on mergers and acquisitions, restructuring and direct equity investment, and guide the leading time-honored brands to carry out industrial integration, form cohesion and achieve brand breakthrough.
2. Driven by bond bulls, pure bond products represented by short- and medium-term bond funds are popular among investors, and they are crazy in the first quarter. Wind data shows that among all short- and medium-term bond funds that have released quarterly reports, 28 funds have doubled in size in the first quarter, and there are even cases of mini funds mutating into large-scale products. Quite typically, the mini fund that was once on the verge of liquidation - China Universal Fortune Rich Short and Medium Term Bonds, the scale was only 61 million yuan at the end of last year, but by the end of the first quarter of this year, the scale of the fund soared to 7.994 billion yuan, and the "gold absorption" in a single quarter was about 7.932 billion yuan, an increase of 12,900%
Housing//
1. Huangshi Urban Development Group started the "old for new" work of residential commercial housing, and one set of old residential commercial housing can be replaced by one or more new residential commercial houses (not more than one set of commercial houses), and the total price of the new houses is not less than 1.2 times of the total price of the old houses.
2. Yunnan Dali Provident Fund New Regulations: The maximum loan amount for families with double depositors will be increased from 780,000 yuan to 1 million yuan, and the loan amount for families with two children and more than two children will be increased by 20% and 30% respectively.
3. The staff of the Nanchang Housing and Urban-Rural Development Bureau said that the city is brewing a new policy to support housing purchases, which will be launched in the near future. From May 1st to 2nd, Nanchang City will hold the "Red May" Housing Fair, bringing together 30 projects from 26 real estate companies, and participating real estate companies have launched various promotional measures.
4. Longnan, Gansu Province: For families with many children renting housing and withdrawing housing provident fund, the annual withdrawal amount will be increased to 20,000 yuan in Wudu District, and the annual withdrawal amount in other counties will be increased to 17,000 yuan;
Industry//
1. The China Iron and Steel Association held a symposium on the economic operation of some iron and steel enterprises in the first quarter in Beijing. For the market outlook, it is generally believed that this round of adjustment of the steel industry is completely different from the cycle adjustment in the previous incremental situation, and will be a long-term reduction adjustment process.
2. Rao Quan, Vice Minister of Culture and Tourism: Fujian residents will take the lead in resuming travel to Matsu, and after the resumption of direct sea passenger flights from Pingtan to Taiwan, Fujian residents will resume group travel to Taiwan.
3. The seven departments issued the "Guiding Opinions on Deepening the Construction of Intelligent Mines and Promoting the Development of Mine Safety", proposing that by 2026, a complete intelligent standard system for mines will be established, and the intelligent production capacity of coal mines will account for no less than 60% of the national coal mines, and by 2030, a complete intelligent technology, equipment and management system for mines will be established.
4. The Cyberspace Administration of China (CAC) convened a symposium on the reporting of online infringement involving enterprises, requiring further efforts to further intensify the reporting of online infringement involving enterprises, making good use of the special area for reporting infringement related to enterprises, clarifying the identification of the special area, improving the reporting guidelines, strengthening case guidance, standardizing the requirements for presenting evidence, and helping enterprises to effectively report.
5. The Cyberspace Administration of China (CAC) has deployed a two-month special action to "Clear and Crack Down on Illegal Information External Links", focusing on eight key links that are prone to frequent occurrence of illegal information external links, such as accounts, comments, group circles, live broadcasts and short videos, live services, browsers and search engines, e-commerce, and sections involving minors.
6. The Beijing Municipal Bureau of Economy and Information Technology, the Tianjin Municipal Bureau of Industry and Information Technology, and the Hebei Provincial Department of Industry and Information Technology signed the "Cooperation Framework Agreement on Jointly Building the Beijing-Tianjin-Hebei-Cangzhou Biomedical Industrial Park" in Cangzhou Lingang Economic and Technological Development Zone, which will carry out comprehensive cooperation on jointly promoting the collaborative innovation of the Beijing-Tianjin-Hebei biomedical industry and jointly building a biomedical industrial park in the Bohai Rim region.
7. Zhengzhou High-tech Zone issued ten measures to support the development of the computing industry, planning to rely on the global computing power network of Zhengzhou High-tech Zone to cultivate new quality productivity with efficient, green, low-cost and convenient computing power, and in terms of support scale, it is planned to invest up to 50 million yuan in policy subsidies in three years.
8. The China Academy of Information and Communications Technology (CAICT) released the first domestic automobile large-scale model standard. The standard mainly covers three capability domains, among which the scenario richness focuses on evaluating the support of the automotive large model for subdivided scenarios such as intelligent cockpit and autonomous driving, the capability support focuses on the performance of the automotive large model in artificial intelligence technology capabilities such as perception, understanding, reasoning, and generation, and the application maturity mainly evaluates the application of the automotive large model in system ecology, deployment customization, and scenario adaptation.
9. The China Association of Automobile Manufacturers announced that from November 2023, it will organize the inspection of the data security compliance of newly listed intelligent networked vehicles of automobile manufacturers in 2022-2023, among which 76 models of 6 companies, including BYD, Ideal, Lotus, Hezhong New Energy, Tesla, and NIO, meet the four compliance requirements of automotive data security.
10. Tongyi Qianwen announced the open-source 110 billion parameter model Qwen1.5-110B, becoming the first 100-billion-level parameter open-source model in the whole series, and has achieved comparable results with Llama3-70B in a number of benchmark evaluations.
11. According to the "2023 Blue Book of Chinese Online Literature" released by the Chinese Writers Association, the number of online literature users in mainland China has exceeded 500 million, the total number of works has exceeded 30 million, and the annual number of new works is about 2 million. According to the statistics of 50 key online literature platforms across the country, the revenue scale in 2023 will be about 34 billion yuan.
12. The U.S. International Trade Commission (ITC) issued an announcement stating that it made a Part 337 final ruling on specific photovoltaic connectors and their components: based on the withdrawal of the applicant, the investigation of the 8th complaint of the U.S. registered patent No. 11,689,153 was terminated.
13. The management of vehicles with license plates in Guangdong, Hong Kong and Macao will introduce four facilitation measures from May 1, including the cancellation of the tax requirements for related verification, the extension of the validity period of the index, the optimization of the exemption of non-operating cars, and the relaxation of the number of vehicles registered by the main driver.
Overseas-
1. According to the China Council for the Promotion of International Trade, the global economic and trade friction index in February was 299, continuing to be in the high range, down 28 points from the same period last year and up 189 points from the previous month. The amount of global economic and trade friction measures increased by 8.3% year-on-year and 66.9% month-on-month.
2. Recently, many places in India have encountered continuous high temperature weather, and the heat is unbearable. The India Meteorological Department (IMD) expects maximum temperatures to be higher than average in most parts of India from April to June this year, with some areas likely to experience extreme heat for up to 10 to 20 days.
International Stock Market //
1. Musk said that Tesla will invest about $10 billion this year in training and inference artificial intelligence, which is mainly used in cars.
2. According to people familiar with the matter, BHP Billiton is considering raising its offer for Anglo American, or in the coming weeks, after the former's $39 billion acquisition proposal was rejected. Through the acquisition of Anglo American, BHP's alliance will provide access to approximately 10% of the world's copper supply.
3. Apple's Vision Pro is heavily discounted on second-hand trading platforms in the United States. A 1TB version of the Vision Pro ($3,899 on the website) with a $500 Apple Care+ and $200 original travel case sold on eBay for $3,200 last Wednesday, a discount of nearly $1,400.
4. Google announced that it will invest $2 billion in a new data center campus in Fort Wayne, Indiana, USA, and another $1 billion to expand three existing data center campuses in Virginia.
5. Hyundai Motor, Kia and Baidu signed a strategic cooperation framework agreement to build a new business ecosystem in the fields of intelligent networked vehicles, unmanned driving, intelligent transportation systems, and cloud computing.
6. General Motors issued a statement saying that it will close its production operations in Colombia and Ecuador as part of its shift to producing next-generation vehicles.
7. In response to the destruction of 2 million bottles of Perrier, Nestlé said that it was due to the heavy rainfall in the local area that polluted a well, so Nestlé destroyed the possible Perrier products, and the above products did not enter the market.
Commodity-
1. The China Gold Association released industry data for the first quarter of 2024. According to the China Gold Association, the impact of high gold prices on gold consumption has been polarised. Bar and coin consumption at relatively low premiums rose sharply, but consumer wait-and-see sentiment towards gold jewellery increased. Gold jewellery retailers are under pressure, and the production and operation risks of gold processing and sales enterprises are increasing.
2. At 24 o'clock on April 29, a new round of domestic refined oil price adjustment window will be officially opened. In the view of comprehensive institutions, the price of refined oil products will usher in the second decline in 2024.
3. China Coal Transportation and Marketing Association: In the first half of April, the output of key monitoring coal enterprises completed 106.35 million tons, an increase of 0.9% month-on-month and a year-on-year decrease of 7.4%;
4. The Russian government said it decided to cancel export duties on thermal coal and anthracite from May 1 to August 31 this year. The decision is aimed at supporting domestic coal industry enterprises.
Bond//
1. [Bond Market Overview] On the working days before the "May Day" holiday, although most of the non-bank institutions are on holiday, the yields of major interbank interest rate bonds still rose sharply, with the yield of 2-7 year treasury bonds rising by 3-5bp, and the yield of 10-year and 30-year bonds rising by 2.5bp. The latest trading volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was around 2.17%, and traders expect short-term yields in the bond market to remain volatile.
2. The Ministry of Finance will tender for the renewal of a total of 121 billion yuan of 2-year book-entry interest-bearing treasury bonds on May 8, and the current treasury bonds will be distributed from the end of the bidding to May 9, and will be listed and traded in conjunction with the previously issued treasury bonds for the same period from May 13.
3. According to the report of China Securities Construction Investment, although the first quarterly report of the fixed income + fund shows unfavorable factors such as the decline in the market value of the convertible bond investment, the reduction of the convertible bond position, and the obvious redemption of shares, the disclosure of the first quarterly report will have a certain lag compared with the actual situation, and the product redemption risk has been well cleared. At present, the capital side, asset allocation perspective, and equity market are all conducive to the allocation of convertible bond assets.
Foreign exchange//
1. According to the data of the Shanghai headquarters of the central bank, the total foreign-related receipts and expenditures of banks in Shanghai in the first quarter were US$1,108.6 billion, a year-on-year increase of 31 percent, of which foreign-related income was US$535.4 billion, a year-on-year increase of 30 percent, and external payments were US$573.2 billion, a year-on-year increase of 32 percent. The total balance of trade in goods was 222.9 billion US dollars, a year-on-year increase of 2%, of which the revenue from trade in goods was 84.3 billion US dollars, a year-on-year increase of 0.2%.
Important Economic Agenda //
Wind 3C Meeting
Provide convenient, professional, intelligent and compliant
One-stop audio and video conferencing roadshow solution
Raise the voice of the market for financial institutions
Reach the target group accurately and create business value