Hot Spotlight //
1. The Political Bureau of the CPC Central Committee held a meeting on April 30 and decided to convene the Third Plenary Session of the 20th Central Committee of the Communist Party of China in Beijing in July. The meeting analyzed and studied the current economic situation and economic work, and reviewed the "Opinions on Several Policies and Measures on Continuously and Deeply Promoting the Integrated and High-quality Development of the Yangtze River Delta".
2. The meeting of the Political Bureau of the CPC Central Committee pointed out that it is necessary to make efforts to effectively implement the macroeconomic policies that have been determined, and to implement a positive fiscal policy and a prudent monetary policy. It is necessary to issue and make good use of ultra-long-term special treasury bonds as soon as possible, speed up the issuance and use of special bonds, maintain the necessary intensity of fiscal expenditure, and ensure that the "three guarantees" at the grassroots level are spent on time and in full. It is necessary to flexibly use policy tools such as interest rates and reserve requirement ratios to increase support for the real economy and reduce the cost of comprehensive social financing. It is necessary to do a good job in assessing the consistency of macroeconomic policy orientations and strengthen the management of expectations. It is necessary to actively expand domestic demand and implement the action plan for large-scale equipment renewal and trade-in of consumer goods.
3. The Shanghai Stock Exchange officially issued 9 supporting business rules including the "Stock Issuance and Listing Review Rules", including 5 main business rules such as the "Stock Issuance and Listing Review Rules", which has been publicly solicited for comments, as well as 4 supporting business rules and guidelines. The purpose of this amendment is to introduce the "other risk warning" (ST) measures for cash dividends that do not meet the standard, with the aim of urging the company to return to investors with stronger constraints. The revision of the delisting rules focuses on cracking down on vicious violations of laws and regulations such as financial fraud and capital occupation. The Shanghai Stock Exchange is in the process of formulating and revising other business rules for the implementation of the new "National Nine Articles", which will be released to the market as soon as possible.
4. The Shenzhen Stock Exchange officially issued 9 supporting business rules including the "Rules for the Review of Stock Issuance and Listing", emphasizing the growth requirements of the GEM, moderately increasing the compound growth rate of operating income in the positioning evaluation criteria of the GEM from 20% to 25%, and supporting the listing of growth-oriented innovative and entrepreneurial enterprises with development potential on the GEM. Strengthen continuous regulatory requirements, optimize listing conditions, strengthen hard constraints on cash dividends, strict delisting standards, and accelerate the formation of a normalized delisting pattern that should be withdrawn and cleared in a timely manner.
5. AMAC issued the Guidelines for the Operation of Private Securities Investment Funds, which covers all aspects of private securities fund raising, investment and operation, and scientifically sets differentiated regulatory requirements. The key points include: 1. The minimum scale of private equity funds is 5 million yuan. 2. Relax the opening frequency of application and redemption, relax the opening frequency of application and redemption to at most once a week, and relax the 6-month lock-up period requirement to 3 months. 3. Maintain the double 25% requirement for portfolio investment, but supplement the interpretation. 4. DMA business shall not exceed 2 times leverage, and existing open positions will not be affected. 5. Significantly relax the transitional period arrangement, and significantly extend the transition period to 24 months for existing funds that do not meet the terms of portfolio investment, etc., and the relevant funds can be open for subscription and redemption and normal investment operations during the transition period;
Global Markets //
1. The three major U.S. stock indexes closed down across the board, with the Dow down 1.49% at 37,815.92, the S&P 500 down 1.57% at 5,035.69, and the Nasdaq down 2.04% at 15,657.82. Caterpillar fell 4.36% and Boeing fell 3.24%, leading the Dow lower. The Wind U.S. TAMAMA Technology Index fell 2.37%, Tesla fell 5.55%, and Microsoft fell 3.21%. Chinese concept stocks generally fell, with Daqo New Energy down 10.93% and Yum China down 8.82%.
2. The three major European stock indexes closed down across the board, with the German DAX index falling 1.08% to 17,921.95 points, the French CAC 40 index falling 0.99% to 7,984.93 points, and the British FTSE 100 index falling 0.04% to 8,144.13 points.
3. Most of the major stock indexes in the Asia-Pacific region closed higher. South Korea's Kospi rose 0.17% to 2,692.05, the Nikkei 225 rose 1.24% to 38,405.66, Australia's S&P 200 rose 0.35% to 7,664.10, New Zealand's S&P 50 rose 0.35% to 11,957.50, India's SENSEX30 fell 0.25% to 74,482.78 and the FTSE Singapore Straits Index rose 0.32% at 3,292.69 and the FTSE Malaysia Composite fell 0.42 percent to 1,575.97.
4. International oil prices fell across the board, with the June contract for U.S. oil falling 1.31% to $81.55 per barrel. Brent oil July contract fell 1.42% to $85.96 a barrel.
5. International precious metal futures generally closed down, COMEX gold futures fell 2.56% to $2297.3 / ounce, and COMEX silver futures fell 3.94% to $26.57 / ounce.
6. Most of London's base metals closed down, LME copper fell 1.57% to $9976.5 / ton, LME zinc fell 1.21% to $2908 / ton, LME nickel rose 0.4% to $19225 / ton, LME aluminum fell 0.33% to $2581.5 / ton, LME tin fell 4.3% to $31165 / ton, LME lead fell 0.74% to $2214 / ton.
7. The main contracts of Chicago Board of Trade (CBOT) agricultural futures closed down across the board, with soybean futures down 1.65% at 1162.5 cents per bushel, corn futures down 0.45% at 447.25 cents per bushel, and wheat futures down 0.7% at 604.25 cents per bushel.
8. U.S. Treasury yields collectively closed higher, with the 2-year U.S. Treasury yield up 4.8 basis points at 5.043%, the 3-year U.S. Treasury yield up 6.8 basis points at 4.884%, the 5-year U.S. Treasury yield up 6.4 basis points at 4.72%, the 10-year U.S. Treasury yield up 5.4 basis points at 4.683%, and the 30-year U.S. Treasury yield up 4.6 basis points at 4.785%.
9. European bond yields collectively closed higher, with the British 10-year yield up 5.4 basis points at 4.345%, the French 10-year yield up 4.9 basis points at 3.051%, the German 10-year yield up 5.1 basis points at 2.582%, the Italian 10-year yield up 6.1 basis points at 3.900%, and the Spanish 10-year yield up 4.9 basis points at 3.348%.
10. At the end of New York, the dollar index rose 0.65% to 106.34, non-US currencies generally fell, the euro fell 0.51% to 1.0666, the pound fell 0.57% to 1.2491, the Australian dollar fell 1.43% to 0.6473, the dollar rose 0.95% to 157.80, the dollar rose 0.97% to 0.9195, and the offshore yuan fell 108 basis points to 7.2550 against the dollar.
Macro//
1. The meeting of the Political Bureau of the CPC Central Committee pointed out that it is necessary to unswervingly deepen reform and expand opening up, build a unified national market, and improve the basic system of market economy. It is necessary to actively expand the export of intermediate goods trade, service trade, digital trade, and cross-border e-commerce, support private enterprises to expand overseas markets, and increase efforts to attract and utilize foreign investment.
2. The State-owned Assets Supervision and Administration Commission of the State Council held a meeting to promote the large-scale equipment renewal of central enterprises, requiring the introduction and implementation of supporting plans and continuing to increase work efforts. The central enterprise "one enterprise and one policy" formulates an equipment renewal work plan, and gives priority to selecting a number of equipment with high energy consumption, high emissions, low efficiency and large safety hazards to be updated and transformed as soon as possible.
3. The State-owned Assets Supervision and Administration Commission of the State Council said that state-owned central enterprises should further integrate into the "great opening up", actively connect with the western provinces, and cooperate to participate in the high-quality construction of the "Belt and Road". We will continue to deepen the reform of state-owned enterprises, deepen the cooperation between the east and the west, promote the gradient transfer and optimization of industrial layout across regions, and increase the development of strategic emerging industries.
4. According to the data released by the National Bureau of Statistics, the manufacturing purchasing managers' index (PMI), the non-manufacturing business activity index and the composite PMI output index in April were 50.4%, 51.2% and 51.7% respectively, down 0.4, 1.8 and 1.0 percentage points from the previous month.
Caixin China's manufacturing PMI rose to 51.4 in May and April, the highest since March 2023, reflecting the continued acceleration of manufacturing production and business activities.
6. The central bank launched a reverse repurchase operation of 440 billion yuan on Tuesday, with a winning interest rate of 1.80%, and 2 billion yuan of reverse repurchase expired on the same day, so it achieved a net investment of 438 billion yuan, and the scale of single-day net investment hit a new high in more than 3 months.
7. According to data released by the National Bureau of Statistics, the total number of migrant workers in the country will be 297.53 million in 2023, a year-on-year increase of 0.6%, and the average monthly income of migrant workers will be 4,780 yuan, an increase of 3.6%.
8. John Lee, Chief Executive of the Hong Kong Special Administrative Region, said that the central government has recently introduced a number of measures to support Hong Kong and benefit Hong Kong, and thanked the central government for its concern and support for Hong Kong, and will maintain close communication with the central government in the future, and strive to open up more cities for "individual visit" to Hong Kong to attract more tourists to Hong Kong.
9. In the first quarter, the mainland's trade in services grew rapidly, with a total import and export volume of 1,816.74 billion yuan, up 14.7 percent year-on-year, of which exports were 744.2 billion yuan, up 9.4 percent, imports were 1,072.54 billion yuan, up 18.7 percent, and the deficit in trade in services was 328.34 billion yuan.
From October to May, a number of new regulations will come into force in China, including the Regulations on the Supervision and Administration of Non-bank Payment Institutions, the Regulations on Water Conservation, the Regulations on Coal Mine Safety Production, the Interim Regulations on the Administration of Carbon Emission Trading, and the new version of the Measures for the Administration of National Metrology Technical Specifications.
Domestic Stock Market //
1. A-share trading ended in April, and the concept of synthetic biology exploded. As of the close, the Shanghai Composite Index fell 0.26% to 3104.82 points, the Shenzhen Component Index fell 0.90%, the ChiNext Index fell 1.55%, the Beijing Stock Exchange 50 fell 0.12%, the STAR 50 fell 1.12%, the Shanghai Composite 50 fell 0.41%, the Shenzhen Composite 50 fell 0.92%, the Wind All A fell 0.57%, the Wind Micro Cap Index fell 0.57%, and the Wind Shuangchuang fell 0.92%. The turnover of A-shares was 1.04 trillion yuan, with a net sale of 8.617 billion yuan by northbound funds, the largest net sale of 528 million yuan by Focus Media, and the largest net purchase of 294 million yuan by China Merchants Bank. In April, the Shanghai Composite Index rose 2.09%, the Shenzhen Component Index rose 1.98%, and the ChiNext Index rose 2.21%, all rising in March.
2. Hong Kong's Hang Seng Index closed up 0.09% at 17,763.03 points, rising for seven consecutive days, the Hang Seng Technology Index fell 0.34%, and the Hang Seng State-owned Enterprises Index fell 0.14%. Home appliances, energy, and auto stocks strengthened, with Haier Smart Home up nearly 8 percent, most of the technology and network stocks fell, and JD.com fell nearly 3 percent, and domestic real estate stocks performed sluggishly, with Vanke falling more than 6 percent. Osidine was privatized by the controlling shareholder, and the stock price fell by more than 9%. The market turnover was HK$130.86 billion, with southbound funds net buying HK$3.249 billion, Bank of China leading the way with net buying HK$1.061 billion, and Meituan being the most net seller of HK$377 million. The Taiwan Weighted Index closed down 0.48% at 20,396.60.
3. Asia's first batch of virtual asset spot ETFs ushered in the first trading day. On April 30, Hong Kong Bitcoin Spot ETF and Ether ETF were officially listed. As of the close, Bosera Bitcoin ETF, Harvest Bitcoin ETF and ChinaAMC Bitcoin ETF rose 1.80%, 1.57% and 1.53% respectively, with a turnover of about HK $12.45 million, HK $17.89 million and HK $37.17 million respectively. Bosera Ether ETF, Harvest Ether ETF and ChinaAMC Ether ETF fell by 0.45%, 0.73% and 0.77% respectively, with a turnover of about HK$2.49 million, HK$4.96 million and HK$12.66 million respectively.
4. The China Securities Regulatory Commission revised the Guidelines for the Evaluation of Scientific and Technological Innovation Attributes (Trial). The revised Guidelines moderately increase the requirements for R&D investment, the number of invention patents and the compound growth rate of operating income of enterprises to be listed on the Science and Technology Innovation Board, aiming to guide science and technology enterprises to pay more attention to scientific research investment and industrialization of scientific research results, and promote the further improvement of the quality of declared enterprises.
5. The China Securities Regulatory Commission revised the list of random inspection items, combined with the actual on-site inspection work of the initial listing enterprises, and revised the random inspection ratio of item 1 "inspection of the initial public offering enterprises" listed in the annex of the list from "the proportion of random lottery is 5%" to "the proportion of random lottery is 20%".
6. The China Securities Regulatory Commission issued the guidance and supervision guidelines for companies listed on the National Equities Exchange and Quotations to apply for issuance and listing on the Beijing Stock Exchange, and for the first time in the form of guidelines for the application of regulatory rules, the guidance and supervision of companies listed on the New Third Board through the "layer by layer" path to be listed on the Beijing Stock Exchange were systematically regulated.
7. All companies on the main board of the Shanghai Stock Exchange have completed the disclosure of their 2023 annual reports. In 2023, the main board companies of the Shanghai Stock Exchange will achieve a total operating income of 50.45 trillion yuan, a year-on-year increase of 0.7%, a net profit of 4.22 trillion yuan, a slight decrease of 1.2% year-on-year, and a net profit of 4.03 trillion yuan after deducting non-profits, a year-on-year increase of 0.8%, and the operating performance will be basically the same as that of the previous year. 1,422 companies achieved profitability, accounting for more than eighty percent, of which 740 companies achieved performance growth, and 166 companies achieved net profit growth of more than 50%.
8. The Beijing Stock Exchange issued and implemented five business rules, including the rules for public offering and listing review, covering public offering and listing, delisting, listing committee and merger and reorganization committee, major asset restructuring, dividends and other systems, further consolidating the responsibilities of issuers, intermediaries and other parties, and improving the quality of listed companies from the source.
9. The Shanghai Stock Exchange released the evaluation of the main market makers of stock options on the Shanghai Stock Exchange from March 21 to April 20. In terms of the main market makers of SSE 50 ETF options, the evaluation results of Orient Securities, GF Securities, Guotai Junan, Huatai Securities, Shenwan Hongyuan, China Merchants Securities and other securities firms are all AA.
10. The Shenzhen Stock Exchange disclosed that from April 29 to April 30, the Shenzhen Stock Exchange adopted self-regulatory measures for a total of 65 abnormal securities trading behaviors, involving abnormal trading situations such as intraday lifting and suppression, false declarations, etc., focusing on monitoring abnormal securities such as "Zhengdan shares", and verifying a total of 2 major events of listed companies.
11. The 2023 annual report of A-shares officially ended, with a total of 5,352 A-share companies disclosing their annual reports, with a total operating income of 72.47 trillion yuan, a year-on-year increase of 1.48%, a record high, accounting for 57.49% of GDP, and a total net profit attributable to the parent company of 528 million yuan, a year-on-year decrease of 2.59%.
12. All 248 listed companies on the Beijing Stock Exchange have disclosed their 2023 annual reports. In 2023, the listed companies on the Beijing Stock Exchange will maintain a trend of steady development, with an annual operating income of 173.744 billion yuan and an average operating income of 701 million yuan, which is basically the same as that of the previous year, with nearly sixty percent of the company's operating income increasing and 26 companies increasing by more than 30%, and a total net profit of 12.696 billion yuan and an average net profit of 51.1926 million yuan, with a profit of 91.13%, of which 48 companies have a net profit increase of more than 30% , 28 companies have a net profit of more than 100 million yuan, and 44 companies have achieved positive growth in net profit for three consecutive years.
13. All 571 companies on the STAR Market disclosed information on their main operating results in 2023. The total operating income of the companies on the Science and Technology Innovation Board was 1,397.78 billion yuan, a year-on-year increase of 4.7%, of which more than 6 percent of the companies achieved positive growth in operating income, 47 companies achieved an increase of more than 50% in operating income, and the net profit for the whole year was 75.96 billion yuan. Based on 2019, the compound growth rate of operating income and net profit of companies on the STAR Market in the past four years reached 23.3% and 24.4%, respectively.
14. More than 1,950 companies in the Shenzhen Stock Exchange have announced their dividend plans for 2023, with a total dividend of about 466.2 billion yuan, and the number, amount and proportion of dividends paid by listed companies in Shenzhen have reached a new high. Industry insiders believe that with the continuous improvement of the cash dividend system and mechanism of listed companies, the willingness of listed companies to pay dividends has steadily increased, and the A-share ecology will change.
15. Vanke held the 2023 Annual General Meeting of Shareholders. Yu Liang, chairman of the board of directors of Vanke, said that the company has formulated a package of slimming and fitness plans to coordinate debt reduction and high-quality development. Zhu Jiusheng, President of Vanke, said that thanks to the bank's support and its own efforts, financing has gradually improved, and he is full of confidence in the follow-up progress.
16. On the evening of April 30, a number of A-share companies or their chairmen and actual controllers were filed! Yuanda Intelligent announced that it had received a notice of filing a case issued by the China Securities Regulatory Commission, and the China Securities Regulatory Commission decided to file a case against the company due to suspected violations of information disclosure laws and regulations. Also suspected of violating laws and regulations in information disclosure is Luen Thai Environmental Protection, the company and its actual controller Huang Wanru have received a notice from the CSRC. Cheng Lixin, the former chairman and second largest shareholder of Hengrun Co., Ltd., was also filed by the CSRC on suspicion of market manipulation and insider information trading.
17. Due to the fact that Jingyu Environment and the relevant responsible persons deliberately concealed the signing of the VAM agreement with the investor during the IPO application process, the Shenzhen Stock Exchange imposed a disciplinary punishment on Jingyu Environment for not accepting the issuance and listing application documents submitted by it for three years and imposed a public reprimand. The "qualification penalty" issued to Jingyu Environment this time is the first disciplinary punishment under the Shenzhen Stock Exchange registration system to temporarily refuse to accept documents for IPO project issuers.
18. China Evergrande announced that it would delay the release of its 2023 annual results, and the company's shares would be suspended from 10:18 a.m. on January 29, 2024, and would continue to be suspended.
Finance//
1. The People's Bank of China (PBOC) and the State Administration for Market Regulation (SAMR) jointly issued the Measures for the Management of Beneficial Owner Information, which came into force on November 1. The Measures specify that if the registered capital (capital contribution) does not exceed RMB 10 million (or equivalent in foreign currency) and all shareholders and partners are natural persons, if there is no natural person other than shareholders or partners who actually controls it or obtains benefits from it, nor does it exercise control over it or obtain income from it through means other than equity or partnership interests, it is exempt from filing beneficial owner information after commitment.
2. According to a report released by the central bank, at the end of the first quarter, the balance of RMB loans of financial institutions was 247.05 trillion yuan, a year-on-year increase of 9.6%, and an increase of 9.46 trillion yuan in the first quarter. Among them, green loans increased by 3.7 trillion yuan, a record quarterly increase, and real estate loans increased by 609.5 billion yuan, an increase of 1.16 trillion yuan from the previous quarter.
3. The central bank organizes the design of signs that support RMB cash payment, and guides business entities to voluntarily post them. Posting this sign is conducive to the whole society to jointly create a convenient cash payment environment, which is convenient for the elderly, foreign visitors to China and other groups to use cash payment methods.
4. According to data released by the central bank, as of the end of March 2024, there were 5,490 microfinance companies in the country, with a loan balance of 758 billion yuan, a decrease of 10.1 billion yuan in the first quarter.
5. According to Brokerage China, the regulatory authorities have recently solicited opinions on some of the leading private placements on the new regulations on the relevant private placement supervision. It is reported that the new regulations include an index increase strategy involving quantitative private placement, which requires that the proportion of index constituent stocks be no less than 60%. In addition, the new regulations also set out requirements for the opening period of private placement products, bond investment and other issues.
6. The "boots" of commission reform are rapidly landing. It is estimated that the average stock trading commission rate of the whole market in 2023 will be 2.62/10,000, and the public offering will adjust the transaction commission rate of its public fund in accordance with the commission rate standard, and the adjustment will be completed on June 30.
7. The Ministry of Water Resources and the Bank of China jointly issued the "Guiding Opinions on Financial Support for the High-quality Development of Water-Saving Industries", and for key areas of water-saving industries, Bank of China will provide no less than 200 billion yuan of intentional financing line support, and the loan interest rate will enjoy preferential interest rate policies in key areas such as strategic emerging industries and green loans.
Housing//
1. The meeting of the Political Bureau of the CPC Central Committee emphasized that it is necessary to continue to prevent and resolve risks in key areas. We will continue to adhere to city-specific policies, consolidate the responsibilities of local governments, real estate enterprises, and financial institutions, and earnestly do a good job in ensuring the delivery of housing to protect the legitimate rights and interests of home buyers. It is necessary to combine the new changes in the supply and demand relationship of the real estate market and the new expectations of the people for high-quality housing, coordinate the study of policies and measures to digest the stock of real estate and optimize the incremental housing, and pay close attention to building a new model of real estate development to promote the high-quality development of real estate.
2. Beijing has implemented a 13-year housing purchase restriction policy, ushering in the first adjustment. The Beijing Municipal Commission of Housing and Urban-Rural Development issued the Notice on Optimizing and Adjusting the Housing Purchase Restriction Policy in the Municipality, which allows residents who already own housing to purchase a new house outside the Fifth Ring Road on the basis of implementing the existing housing purchase restriction policy.
3. Tianjin adjusts and optimizes the real estate policy, and residents with household registration in Beijing and Hebei and those employed in Beijing and Hebei who purchase housing in Tianjin enjoy the housing purchase policy for residents with household registration in Tianjin. Residents with household registration in Tianjin who purchase a single set of newly built commercial housing of more than 120 square meters in the six districts of the city will no longer be verified for the qualifications to purchase the house.
4. According to a report released by the China Index Research Institute, from January to April, the total sales of the top 100 real estate companies were 1,246.44 billion yuan, a year-on-year decline narrowed. Since April, the new housing market is still facing adjustment pressure, and the scale of new housing transactions in most cities has fallen compared with March, but the year-on-year decline has narrowed.
Industry//
1. The meeting of the Political Bureau of the CPC Central Committee called for the development of new productive forces in accordance with local conditions. It is necessary to strengthen the layout of national strategic scientific and technological forces, cultivate and expand emerging industries, advance the layout and construction of future industries, and use advanced technology to empower the transformation and upgrading of traditional industries. It is necessary to actively develop venture capital and expand patient capital.
2. When Wang Wentao, Minister of Commerce, met with Muller, chairman of the German Association of the Automotive Industry, he said that from the perspective of global and future demand, there is no excess capacity in emerging industries such as electric vehicles. The EU's countervailing investigation into China's electric vehicles has not been applied for by European companies or supported by the industry, and China firmly opposes it.
3. The Ministry of Finance and the Ministry of Industry and Information Technology issued a notice that about 35 cities will be selected to carry out the second batch of pilot work in 2024.
4. The Ministry of Industry and Information Technology issued this year's national industrial energy conservation supervision task, and identified 2,899 national industrial energy conservation supervision task enterprises. Among them, there are 2,411 special inspections on energy efficiency in key industries and key energy-using equipment such as petrochemical industry, 201 special inspections on energy efficiency in key areas such as data centers, and 287 special inspections on the implementation of rectification of illegal enterprises last year.
5. The return capsule of the Shenzhou-17 manned spacecraft successfully landed at the Dongfeng landing site, and the on-site medical supervision and medical insurance personnel confirmed that the astronauts Tang Hongbo, Tang Shengjie and Jiang Xinlin were in good physical condition, and the Shenzhou-17 manned mission was a complete success.
6. In the first quarter, the mainland's road freight volume reached 900687 million tons, an increase of 5.1 percent year-on-year, the waterway freight volume was 220077 thousand tons, an increase of 7.9 percent, the port cargo throughput was 408949 thousand tons, an increase of 6.1 percent, and the port container throughput was 76.73 million TEUs, an increase of 10 percent.
7. According to data released by the Ministry of Culture and Tourism, the number of domestic tourists in the first quarter was 1.419 billion, a year-on-year increase of 16.7%, and the total travel expenditure of domestic tourists was 1.52 trillion yuan, an increase of 17.0%.
8, the Ministry of Finance released data to show that in March, a total of 55.601 billion yuan of lottery tickets were sold nationwide, an increase of 11.7% year-on-year. Among them, the sales of welfare lottery institutions were 18.877 billion yuan, an increase of 22.4 percent, and the sales of sports lottery institutions were 36.724 billion yuan, an increase of 6.9 percent.
9. The joint procurement office of high-value medical consumables organized by the state issued the "Continuation Procurement Document for the Expiration of the Centralized Procurement Agreement for Artificial Joints", which will be submitted by the enterprise on May 21 and the bid will be opened on the spot. 6,281 medical institutions across the country reported the procurement demand for artificial joints reached 581,600 sets, an increase of 7.42% compared with the first round of centralized procurement agreements.
10. The "Shanghai Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in (2024-2027)" clearly states that Shanghai will implement a new round of trade-in subsidies for old cars and new energy vehicles, and implement a new round of subsidies for green and smart home appliances to improve the service level of trade-in facilitation for home appliances.
11. Henan Province requires the expansion of emerging industries such as software and low-altitude economy, the introduction of an implementation plan to promote the development of low-altitude economy, and the improvement of low-altitude flight service support facilities. Research and formulate practical plans for Henan Province to cut into new tracks such as integrated circuits and semiconductors, artificial intelligence and large models, and quantum science.
12. In 2023, China Railway Group will achieve operating income of 1,245.4 billion yuan, a year-on-year increase of 10.5%, net profit of 3.3 billion yuan, asset-liability ratio of 65.54%, a year-on-year decrease of 0.84 percentage points, and in the first quarter of 2024, China Railway Group will achieve operating income of 283.3 billion yuan, a year-on-year increase of 4.2%.
13. According to the first quarterly report disclosed by Huawei Investment Holding Co., Ltd., the company's operating income in the first quarter was about 178.45 billion yuan, a year-on-year increase of 36.66%, and the net profit attributable to the parent company was about 19.65 billion yuan, an increase of about 564%. Huawei will hold an innovative product launch conference in Dubai on May 7.
14. Huawei issued an internal personnel adjustment document, announcing that Yu Chengdong will assume the position of chairman of the terminal BG, and He Gang, the former chief operating officer of Huawei terminal BG, will take over as the CEO of Huawei terminal BG. People familiar with the matter said that Huawei has a sound internal governance structure, and this appointment for normal management can allow Yu Chengdong to have more energy to create high-quality products for consumers.
15. A Wenjie M7 Plus recently had a serious traffic accident in Yuncheng, Shanxi, resulting in casualties. According to a number of people familiar with the matter, the model is equipped with the ADAS intelligent driving system of local car supplier Foretek.
Overseas-
1. The International Monetary Fund (IMF) released a regional economic outlook report. The report forecasts that economic growth in the Asia-Pacific region will exceed previous expectations in 2024 to 4.5%, contributing about 60% to global economic growth.
2. The Conference Board's consumer confidence index fell for the third consecutive month in April, falling to 97.0 from 103.1 in March. The index has fluctuated sideways in a relatively narrow range and has remained largely stable for more than two years. The confidence index fell to its lowest level since July 2022 in April as consumers' optimism about the current state of the labor market decreased and concerns about future business conditions, job opportunities and incomes increased, the Conference Board economist noted.
3. ECB Governing Council member Hernandez de Cos said that if inflation continues to slow as expected, the ECB should start cutting interest rates in June;
4. Eurozone preliminary GDP in the first quarter increased by 0.4% year-on-year, with an expected increase of 0.2% and a final increase of 0.1% in the fourth quarter of 2023, and a quarter-on-quarter increase of 0.3%, an expected increase of 0.2%, and a decrease of 0.1% in the fourth quarter of 2023.
5. The preliminary CPI in the euro area in April rose by 2.4% year-on-year, in line with the expected and final value in March, and rose by 0.6% month-on-month, expected to be 0.6%, and the final value in March was 0.8%. Eurozone preliminary core CPI rose 2.8% year-on-year and 0.6% month-on-month in April.
6. Germany's preliminary non-seasonally adjusted GDP in the first quarter decreased by 0.9% year-on-year, with an expected decrease of 0.8% and a final decrease of 0.4% in the fourth quarter of 2023, and a quarter-on-quarter increase of 0.2%, an expected increase of 0.1%, and a final decrease of 0.3% in the fourth quarter of 2023.
7. The seasonally adjusted unemployment rate in Germany in April was 5.9%, which was in line with the expected and previous values, and the seasonally adjusted number of unemployed increased by 10,000, expected to increase by 9,000, and the previous value increased by 4,000.
8. France's preliminary GDP in the first quarter increased by 1.1% year-on-year, with an expected increase of 0.8%, and a month-on-month increase of 0.2%, with an expected increase of 0.1%. France's preliminary CPI rose 2.2% year-on-year in April, with an expectation of 2.2% and a final value of 2.3% in March, and a month-on-month increase of 0.5% with an expectation of 0.5% and a final value of 0.2% in March.
9. The Chicago PMI in April was 37.9, with an expectation of 45 and a previous value of 41.4. Last week, the commercial retail sales of the Red Book rose 5.5% year-on-year, and the previous value rose 5.3%.
10. Labor employment costs in the United States rose 1.2% quarter-on-quarter in the first quarter, with an expectation of 1.0% and a previous value of 0.9%, employment wages rose by 1.1% and a previous value of 0.9%, and employment benefits rose by 1.1% and a previous value of 0.7%.
11. The FHFA home price index in the United States in February rose by 1.2% month-on-month, with an expected increase of 0.2% and a previous decrease of 0.1%. In February, the house price index of S&P/CS20 large cities rose by 7.3% year-on-year, with an expectation of 6.7% and a previous value of 6.6%.
International Stock Market //
1. Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index down 3.23%, Daqo New Energy down 10.93%, Yum China down 8.82%, Canaan Technology down 7.89%, Huazhu down 6.87%, Dajian Yuncang down 6.44%, New Oriental down 6.34%, Hillway Metal Mining down 5.8%, Vipshop down 5.38%, Bilibili down 5.32%, Good Future down 4.94%, Tuniu up 9.77%, and Nenglian Zhidian up 2.3%. China's new energy vehicle stocks were mixed, with NIO up 2.82%, Xpeng up 0.25%, and Li Auto down 2.49%.
2. The European Commission initiated a formal investigation process against Meta under the Digital Services Act. The alleged infringement by the metaverse company involves deceptive advertising and a range of policies related to political content in its services, as well as possible flaws in the company's provision of access to public data to researchers.
3. Faraday Future, which has only sold 11 cars in 10 years of car manufacturing, is now facing a severe test: it will be delisted from the NASDAQ. Faraday Future announced that it has received a letter from the Nasdaq exchange that it will be delisted from Nasdaq for non-compliance with the Nasdaq listing rules. Jia Yueting posted a video in response to the rumors, saying that he may be the most rumored Chinese entrepreneur, and almost all of the $10 billion was repaid in cash, and no 500 million trust was set up for his daughter.
4. Goldman Sachs and General Motors are in talks to abandon the credit card partnership, and Goldman Sachs plans to transfer the business cooperation to Barclays.
5. Tesla CEO Elon Musk plans to make more layoffs, the company's Supercharger team will be cut by about 500 people, and the public policy team will also be disbanded.
6. Microsoft CEO Nadella announced that he would invest $1.7 billion in the development of artificial intelligence in Indonesia after meeting with Indonesian President Joko Widodo.
7. Coca-Cola's revenue in the first quarter was US$11.3 billion, an increase of 3% year-on-year, and its net profit was US$3.177 billion, an increase of 2%. The company raised its guidance for 2024 to expect full-year organic revenue growth of 8%-9%, up from its previous forecast of 6%-7%.
8. McDonald's total revenue in the first quarter was US$6.169 billion, up 4.6% year-on-year, and net profit was US$1.929 billion, up 7%.
9. 3M's net sales in the first quarter were US$8.003 billion, down 0.3% year-on-year, and net profit was US$928 million, down 4.9%.
10. PayPal's net revenue in the first quarter was US$7.699 billion, up 9% year-on-year; net profit was RMB888 million, up 12%.
11. Adidas achieved revenue of 5.458 billion euros in the first quarter, an increase of 8% year-on-year, operating profit of 336 million euros, and gross profit margin increased by 6.4 percentage points year-on-year to 51.2%, and the performance exceeded expectations.
12. Volkswagen's sales in the first quarter reached 75.5 billion euros, down 1% year-on-year, operating profit was 4.6 billion euros, down 20%, and global sales were 2.1 million units, down 2%.
13. Mercedes-Benz Group's net profit in the first quarter fell 34% to 3.6 billion euros, dragged down by model adjustments and sluggish demand for electric vehicles.
14. Amazon's first-quarter earnings per share were $0.98, with an expectation of $0.82, revenue of $143.31 billion, an expectation of $142.47 billion, and a net profit of $10.431 billion, with an expectation of $8.686 billion.
15. Samsung Electronics' operating profit in the first quarter was 6.61 trillion won, up 931.87 percent year-on-year, and sales were 71.92 trillion won, up 12.82 percent. Regarding the better-than-expected results, Samsung Electronics said that the high profit growth was mainly due to the recovery of profitability in the memory business by meeting the demand for high value-added products.
16. Chaowei Semiconductor's adjusted earnings per share for the first quarter were $0.62 versus $0.61 expected, revenue was $5.5 billion versus $5.45 billion, net profit was $123 million, and $265 million was expected.
17. Starbucks reported earnings per share of $0.68 versus $0.8 expected, revenue of $8.56 billion versus $9.13 billion, and net profit of $772.4 million versus $907 million.
Commodity-
1. According to a report released by the World Gold Council, total global gold demand (including over-the-counter transactions) increased by 3% year-on-year to 1,238 tons in the first quarter, the strongest demand performance in the first quarter since 2016. Central banks continued to buy gold at a rapid pace, with official global gold reserves increasing by 290t in Q1.
2. The Ministry of Agriculture and Rural Affairs requires that the construction of high-standard farmland in the western region be continuously promoted, and the construction of high-standard farmland in plain areas and irrigation areas will be accelerated. Implement the concept of big food, develop rural characteristic industries according to local conditions, improve the level of intensive processing of agricultural products, aim at new products and new industries, accelerate breakthroughs in key technologies, and promote the value-added of the extended chain.
3. Jiang Wei, vice president of the China Iron and Steel Association, said that unreasonable mine prices have seriously eroded the efficiency of the steel industry. According to the statistics of the China Iron and Steel Association, in the first quarter, the cumulative operating income of key iron and steel enterprises was 1.49 trillion yuan, a year-on-year decrease of 4.55%, and the total profit was 8.708 billion yuan, a decrease of 47.91%.
4. On Tuesday, the Baltic Dry Bulk Index was reported at 1,685 points, up 0.06% from the previous trading day, ending a six-day losing streak.
5. According to the latest quotation of Shanghai Nonferrous Metals Network, on April 30, the price of domestic battery-grade lithium carbonate rose by 560 yuan to 111,800 yuan/ton, a cumulative increase of 610 yuan in the past 5 days, and a cumulative decrease of 420 yuan in the past 30 days.
Bond//
1. [Bond Market Overview] The bond market sentiment has rebounded significantly, spot bonds and futures have collectively risen sharply, short and medium-term bonds have performed stronger, and the yield of 5-year treasury bond active bonds has fallen by 6bp. Treasury bond futures collectively closed higher, with the 30-year main contract up 0.70% and the 10-year up 0.28%. Real estate bonds rose and fell, with "H0 Baolong 04" rising by more than 40% and "21 Vanke 06" falling by more than 37%, triggering a temporary stop.
2. The China Securities Convertible Bond Index closed up 0.24%, and the Wind Convertible Bond Equal Rights Index rose 0.09%. Among them, "Baichuan Zhuan 2" rose by 15.16%, the highest increase, and Haibo convertible bonds and Puli convertible bonds both fell by 20%, leading the decline.
3. The meeting of the Political Bureau of the CPC Central Committee called for the in-depth implementation of the local government debt risk resolution plan to ensure that provinces, cities and counties with high debt risks can not only truly reduce their debts, but also develop steadily. It is necessary to continue to promote the reform of small and medium-sized financial institutions to reduce risks, and take multiple measures to promote the healthy development of the capital market.
4. The National Association of Institutional Investors held a symposium on core dealers of credit risk mitigation tools to introduce the relevant provisions of the Business Rules for Credit Risk Mitigation Tools in the Interbank Market and put forward work suggestions. The NAFMII will continue to optimize the business process and supporting mechanisms of certificate products, and promote the high-quality development of the credit risk mitigation tool market.
5. The Bank of Japan said that the amount and frequency of Japanese government bond purchases remained unchanged in May, and the bond purchase plan for the second quarter remained unchanged.
6. [Major Bond Events] (1) Minsheng Bank successfully issued 30 billion yuan of secondary capital bonds (2) Jiangxi Copper's issuance of corporate bonds of no more than 10 billion yuan was approved by the China Securities Regulatory Commission (3) CICC received a letter of no objection to the listing and transfer of non-public corporate bonds (4) Due to violations in the bond underwriting business, Zhongtai Securities and Haitong Securities were ordered to correct by the Guangdong Securities Regulatory Bureau (5) "22 Zhongshan Assets MTN001" will be fully redeemed on June 3.
Foreign exchange//
1. The onshore yuan closed at 7.2416 against the US dollar at 16:30 on Tuesday, up 51 basis points from the previous trading day, up 47 basis points for the week, and closed at 7.2422 overnight. The central parity of the yuan against the US dollar was reported at 7.1063, up 3 basis points, and the cumulative depreciation this week was 7 basis points.
2. The Fintech Professional Committee of the Payment and Clearing Association of China organized the first meeting of the third joint meeting of directors, at which four key work plans were discussed, discussed and approved, including the "Research Work Plan for the Application of Digital RMB Payment" and the "Research Work Plan for the Application of Innovative Technology in the Payment Industry".
3. Bank of Japan account data shows that on April 29, it may intervene in the foreign exchange market and buy a large amount of yen, with an intervention scale of about 5.5 trillion yen. In addition, according to the latest foreign exchange intervention data of the Ministry of Finance of Japan, the total amount of intervention from March 28 to April 25 was 0 yen. However, the data does not include April 29.
4. Japanese Prime Minister Fumio Kishida said he would not comment on foreign exchange intervention. Japan's Vice Minister of Finance Mato Kanda said that whether to intervene in the foreign exchange market will be announced at the end of May, and appropriate actions will be taken as needed.
5. The International Monetary Fund (IMF) said it sees that the Japanese authorities are fully committed to a flexible exchange rate regime. The depreciation of the yen reflects interest rate differentials and other factors. The IMF will maintain close contact with the Japanese authorities on factors affecting the yen.
Important Economic Agenda //
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