Hot Spotlight //
1. Hong Kong stocks recorded a good start in May, and the three major indexes were strong throughout the day. The Hang Seng Index closed up 2.5% at 18,207.13 points, recording its eighth straight gain, the Hang Seng Tech Index rose 4.45% to 3,865.48 points, and the Hang Seng China Enterprises Index rose 2.6% to 6,437.09 points. The market turnover was 115.912 billion Hong Kong dollars. Most of the Hang Seng industry indices rose, with the pharmaceutical and medical, technology, domestic real estate, and financial sectors leading the gains. In terms of blue chips, Country Garden Services rose 13% to lead the blue chips, Ali Health and JD Health rose more than 10%, and WuXi AppTec and Meituan rose about 9%. In terms of individual stocks, SenseTime rose 36%, and NIO rose more than 20%.
2. The national railway sent 20.69 million passengers on May 1, a record high in a single day. On the first day of the May Day holiday in 2024, domestic railways and civil aviation will usher in a peak of passenger flow, and major scenic spots will enter the "crowd mode", which also reflects the vitality of the mainland's holiday economy. On the whole, the tourism orders of small and medium-sized cities and county cities have increased significantly, and the cultural scenic spots of ancient towns have attracted the attention of tourists. In addition, "taste bud travel" has gradually become a new tourism trend. While domestic travel maintained a high level of popularity, inbound and outbound travel also ushered in a significant increase, and the number of international air ticket bookings on some platforms hit a single-day high on May Day of the previous year. On the first day of the May Day holiday, more than 800,000 people entered and exited Hong Kong.
3. Apple's earnings per share for the second fiscal quarter were $1.53 versus $1.5 expected, revenue was $90.753 billion versus $90 billion, and net profit was $23.636 billion versus $23.17 billion. iPhone revenue in the fiscal second quarter was $45.96 billion versus $45.76 billion expected, with iPhone sales down 10%, and iPad revenue was $5.56 billion versus $5.91 billion expected. Greater China revenue in the second fiscal quarter was US$16.37 billion, compared with an expectation of US$15.87 billion, a year-on-year decrease of 8.1%. Apple announced the largest $110 billion share buyback program in history. Apple's U.S. stock rose more than 6% after hours.
Global Markets //
1. The three major U.S. stock indexes closed up across the board, with the Dow up 0.85% at 38,225.66, the S&P 500 up 0.91% at 5,064.2, and the Nasdaq up 1.51% at 15,840.96. Boeing rose 4.28% and Nike rose 2.31%, leading the Dow. Wind U.S. TAMAMA Technology Index rose 1.88%, Nvidia rose 3.34%, and Tesla rose 0.06%. Chinese concept stocks generally rose, with Xpeng Motors up 15.83% and Bilibili up 15.63%.
2. The three major European stock indexes closed mixed, with the German DAX index falling 0.15% to 17,905.58 points, the French CAC 40 index falling 0.88% to 7,914.65 points, and the British FTSE 100 index rising 0.63% to 8,172.15 points.
3. Major Asia-Pacific stock indexes closed mixed, with the South Korean Kospi down 0.21% at 2,686.3 points. The Nikkei 225 index fell 0.1% to 38,236.07 points. Australia's S&P 200 rose 0.23% to 7,587. New Zealand's NZX50 index rose 0.05% to 11,874.04 points.
4. International oil prices rose slightly, with the June contract for U.S. oil rising 0.08% to $79.06 per barrel. Brent oil July contract rose 0.31% to $83.70 a barrel.
5. International precious metal futures closed up slightly, COMEX gold futures rose 0.1% to $2313.4 per ounce, and COMEX silver futures rose 0.68% to $26.93 per ounce.
6. The main contracts of agricultural futures on the Chicago Board of Trade (CBOT) closed up collectively, with soybean futures up 2.54% at 1200 cents per bushel, corn futures up 2.05% at 460 cents per bushel, and wheat futures up 0.63% at 603 cents per bushel.
7. London base metals closed mixed, LME copper fell 1.02% to $9795 / ton, LME zinc rose 0.92% to $2907.5 / ton, LME nickel fell 0.52% to $18780 / ton, LME aluminum fell 1.51% to $2538.5 / ton, LME tin rose 0.66% to $30805 / ton, LME lead rose 0.62% to $2193.5 / ton.
8. European bond yields collectively closed down, with the British 10-year yield down 8 basis points at 4.285%, the French 10-year yield down 3.1 basis points at 3.020%, the German 10-year yield down 4.2 basis points at 2.539%, the Italian 10-year yield down 5.5 basis points at 3.854%, and the Spanish 10-year yield down 3.9 basis points at 3.309%.
9. U.S. Treasury yields closed down across the board, with the 2-year Treasury yield down 9 basis points at 4.883%, the 3-year Treasury yield down 9.3 basis points at 4.723%, the 5-year Treasury yield down 7.9 basis points at 4.577%, the 10-year Treasury yield down 5 basis points at 4.584%, and the 30-year Treasury yield down 2 basis points at 4.732%.
10. At the end of New York, the dollar index fell 0.26% to 105.38, non-US currencies generally rose, the euro rose 0.05% to 1.0725 against the dollar, the pound rose 0.03% to 1.2535, the Australian dollar rose 0.57% to 0.6566, the dollar fell 0.3% to 153.70, the dollar fell 0.5% to 0.9107, and the offshore yuan rose 265 basis points to 7.2060 against the dollar.
Macro//
1. The General Office of National Defense and the Ministry of Emergency Management continue to organize the China Meteorological Administration, the Ministry of Water Resources, the Ministry of Natural Resources, the Ministry of Transport and other departments to carry out joint consultations, video dispatch Guangdong, Hunan and other key provinces, study and judge the development trend of the recent heavy rainfall process, study and deploy the flood prevention and disaster relief work in key areas such as South China, Jiangnan, and Northeast China during the "May Day" holiday, and refine the implementation of the next work measures.
2. The Hong Kong Monetary Authority (HKMA) kept its benchmark interest rate unchanged at 5.75%. Hong Kong's preliminary GDP rose 2.7% year-on-year in the first quarter, with an expected increase of 0.9%, and the final value in the fourth quarter of 2023 rose by 4.3% and the preliminary value rose by 4.3%.
Domestic Stock Market //
1. As of April 30, 2024, all 571 companies on the STAR Market have disclosed their main operating performance information for 2023. According to the data, the total operating income of the science and technology innovation board companies for the whole year was about 1.4 trillion yuan, a year-on-year increase of 4.7%, and the net profit for the whole year was 75.96 billion yuan.
2. As one of the important indicators to gain insight into the trend of the main funds, the ranking of the sales department of the Dragon and Tiger List has surfaced. The turnover of the securities business department of the South Ring Road of Lhasa Financial City of Oriental Wealth Securities ranked first with a turnover of 6.256 billion yuan. Among the top 100 business departments, Guotai Junan has 12 business departments on the Dragon and Tiger list, becoming the brokerage with the largest number of business departments on the list.
In March and April, a total of 947 listed companies were surveyed by securities firms. Electronics, mechanical equipment, power equipment, computers and other industries are favored by brokers, and the attention of the pharmaceutical and biological industries has increased significantly. The agency believes that the second quarter may be the best time to lay out the pharmaceutical sector, and the turning point of the semiconductor industry cycle is becoming clearer, and the semiconductor equipment, materials and integrated circuit packaging and testing sectors are worth paying attention to.
4. According to data from the prime brokerage department of Goldman Sachs Group, hedge funds have been net buyers of emerging Asian stocks for the fifth consecutive month, of which Chinese stocks, Taiwan stocks and South Korean markets have the most nominal net purchases.
5. Regarding the market rumor that "the debt of more than 20 billion yuan borrowed by 360 when it was privatized back to A has expired, and all the equity is in a pledged state", 360 responded that all the shares of the company directly held by Zhou Hongyi, the actual controller of the company, have never been pledged. Zhou Hongyi's concerted actor, the company's controlling shareholder, Tianjin Qixin Zhicheng Technology Co., Ltd., has had a pledge in the past, and it has been fully released on July 31, 2023.
6. Yunnan Tongwei's 200,000-ton high-purity crystalline silicon project was successfully started at one time, which is the world's first largest single-line production capacity. The first batch of products was successfully baked, passed the quality inspection, and the indicators reached the N-type electronic grade standard, and the product purity reached 99.9999999999%.
7. Standard Chartered Group's adjusted profit before tax in the first quarter was US$2.13 billion, compared to the consensus of US$1.55 billion, and adjusted operating income was US$5.15 billion, compared to the consensus of US$4.66 billion.
8. North Rare Earth announced that in April, North Rare Earth Magnet Company actively grabbed orders, developed new customers through multiple channels, and the number of orders increased significantly compared with the same period last year, as of April 29, the production and sales volume of the month increased by more than 24.9% month-on-month, setting a record for production and sales in a single month.
9. Hunan Valin Yunchuang Digital Intelligence Technology Co., Ltd. was officially inaugurated. Valin Yunchuang was established with Hualian Yunchuang, a subsidiary of Hunan Iron and Steel Group, as the main body. At the unveiling ceremony, Hunan Iron and Steel Group signed strategic cooperation agreements with Huawei Technologies Co., Ltd. and Hangzhou Hikvision Digital Technology Co., Ltd. respectively.
Finance//
1. Wind statistics show that a total of 120 funds were established in April based on the date of fund establishment, with 141.089 billion shares issued by the fund and 1.176 billion shares issued on average. Compared with March, the total share of fund issuance in April decreased by nearly 6%, but the average share of issuance increased from 1.1 billion yuan in March.
Housing//
1. Dezhou City, Shandong Province increased the maximum loan amount of the housing provident fund. The maximum loan amount for one party to pay provident fund has been increased from 400,000 yuan to 600,000 yuan, and the maximum loan amount for both husband and wife to pay provident fund has been increased from 500,000 yuan to 700,000 yuan. Families with many children who have paid into the housing provident fund to apply for housing provident fund loans for the purchase of the first and second sets of self-occupied houses have been increased from the original increase of 100,000 yuan to an increase of 150,000 yuan.
2. Six departments, including the Housing and Urban-Rural Development Bureau of Yangjiang City, Guangdong Province, jointly issued the "Several Measures of Yangjiang City on Further Promoting the Stable and Healthy Development of the Real Estate Market", and formulated 26 articles to support real estate development and consumer housing purchase from the whole process of land acquisition, construction application, project construction, acceptance, and sales. After purchasing a newly built commercial house in Yangjiang City and completing the payment of deed tax, each house can apply for a consumption voucher at 3/1000 of the purchase contract amount, and the maximum consumption voucher that can be received is 3,000 yuan.
Industry//
1. The construction of the world's first kilometer-level deepwater serving manifold was completed in Tianjin, setting a number of world records such as design water depth and through-ball distance, marking an important breakthrough in the key technology of independent design and construction of deepwater oil and gas equipment in the mainland.
2. Renshuo Solar announced that recently, after being certified by the National Photovoltaic Industry Metrology and Testing Center, the steady-state efficiency (MPPT) of the 30cm*40cm perovskite single-junction module developed by Renshuo Solar once again broke the world record to 20.86%, with a pore area of 927.5c㎡, and the module efficiency did not have any attenuation during the test time. This efficiency is the highest steady-state efficiency of perovskite modules of the same size that has been reported so far, and once again refreshes the world record of 20.1% steady-state efficiency achieved by Renshuo Solar in January 2024.
3. The intelligent mobile charging robot "CharGo" was unveiled in Lingang. In order to effectively resolve the peak charging of new energy vehicles around Dishui Lake during the "May Day" period, the parking company in the new area put four intelligent mobile charging robots "CharGo" 50 meters forward in the fitness parking lot around the lake.
Overseas-
1. The OECD Economic Outlook report raised the global economic growth forecast for 2024 to 3.1% (expected 2.9% in February) and projected to grow by 3.2% in 2025 (expected to be 3% in February), raised the US economic growth forecast for 2024 to 2.6% (previously 2.1%), and expected to be 1.8% in 2025 (previously 1.7%), raised the eurozone growth forecast to 0.7% (previously 0.6%), and raised the growth forecast for 2025 to 1.5% (Previously, it was 1.3%).
2. France has become China's third largest trading partner in the EU and has played a leading role in China-EU economic and trade cooperation. China is France's fourth-largest trading partner in the world, after Germany, Belgium and Italy. In 2023, the trade volume between China and France will be 78.9 billion US dollars, of which 41.6 billion US dollars will be exported from China and 37.3 billion US dollars will be imported from France, a year-on-year increase of 5.5%.
3. The minutes of the Bank of Japan meeting indicated that policy adjustments will be made in line with the economic and price conditions; many members believe that long-term interest rates should be largely determined by the market; members say that they expect financial conditions to remain accommodative; some members said that it is important to convey the message that the central bank does not plan to raise interest rates quickly; and several central bank members said that the value of the yen deviates significantly from purchasing power parity.
4. Goldman Sachs said in a research report that Fed Chairman Jerome Powell's speech at the press conference was more modest. Keeping expectations unchanged, the Fed continues to expect two rate cuts this year, in July and November.
5. European Central Bank Chief Economist Lian: We will continue to make decisions based on data, there is no pre-set path for interest rates, given the lag in the transmission effect, the ECB's past interest rate hikes are still having a tightening effect, and if necessary, the policy rate will remain limited.
6. South Korea may increase its capital by 1.5 trillion won to the Korea Development Bank to help the development of the chip industry. South Korea's Ministry of Welfare said that the national pension fund will allocate 65% of its assets to high-risk assets over the long term.
7. The number of initial claims for unemployment benefits in the United States last week was 208,000, with an expectation of 212,000 and a previous value of 207,000. The number of layoffs in the United States in April was 64,789, the lowest since December 2023, and the previous value was 90,300.
8. The U.S. trade balance deficit in March was US$69.4 billion, with an expected deficit of US$69.1 billion and a previous deficit of US$68.9 billion. Among them, exports were 257.6 billion US dollars, the previous value was 263 billion US dollars, and imports were 327 billion US dollars, the previous value was 331.9 billion US dollars.
9. The final value of the manufacturing PMI in the euro area in April was 45.7, expected to be 45.6, the preliminary value was 45.6, and the final value in March was 46.1. The final value of the German manufacturing PMI in April was 42.5, with an expectation of 42.2. The final value of the French manufacturing PMI in April was 45.3, with an expectation of 44.9. India's manufacturing PMI in April was 58.8, with an expectation of 59.5 and a previous value of 59.1.
International Stock Market //
1. Popular Chinese concept stocks generally rose, with the Nasdaq China Golden Dragon Index up 6.01%, Bilibili up 15.63%, Shell up 12.64%, Futu Holdings up 11.87%, Kingsoft Cloud up 11.86%, JD.com up 11.51%, Gaotu Group up 10.94%, Pinduoduo up 10.48%, VNET up 10.34%, Miniso up 9.1%, Dajian Yuncang up 8.51%, Melco Resorts Entertainment up 8.5%, and Weibo up 8.28%; In terms of decline, Zhongjin Medical fell 3.03%. China's new energy vehicle stocks rose collectively, with NIO up 6.07%, Xpeng up 15.83%, and Li Auto up 9.98%.
2. In order to revive consumer enthusiasm, Apple CEO Tim Cook is expected to preview new artificial intelligence features next week and announce them at the Worldwide Developers Conference in June. Apple CEO Tim Cook said he expects total revenue to grow in the low single-digit digits for the next fiscal quarter, with service revenue and iPad sales expected to grow by double digits in the next fiscal quarter. Significant investments are being made in generative AI; iPhone sales are growing in Chinese mainland. Total revenue for the quarter ending June is expected to increase year-over-year.
3. Shell's adjusted profit in the first quarter was US$7.73 billion, compared with the market estimate of US$6.25 billion. Shell announced a share repurchase program totaling $3.5 billion. Shell's CEO said the share price was below fair market value and was not discussing moving the listing to the United States.
4. Microsoft will invest US$2.2 billion in cloud computing and artificial intelligence technology in Malaysia. Microsoft plans to invest $1 billion to build a data center in Thailand.
5. Ahead of Google's first-quarter earnings report in April, the company laid off at least 200 people from its core team, including moving some positions to India and Mexico.
6. A document in the antitrust trial shows that Google's payment to Apple in 2022 reached $20 billion.
7. SK hynix will start mass production of next-generation HBM chips in the third quarter. SK hynix said that its 2025 orders for AI memory chips are almost full.
8. After announcing a sharp decline in profits in the first quarter, the Volkswagen Group announced plans to improve its full-year 2024 results by reducing the size of its executive staff in Germany, for which the Group has allocated 900 million euros for the implementation of the employee buyout plan in this quarter. Eligible senior German executives have the option to receive an additional severance bonus of €50,000 in addition to their regular severance pay.
9. Maersk CEO: Maersk still expects global container trade to grow by 2.5% to 4.5% in the fiscal year, and the situation in the Red Sea region remains grim.
10. MetLife reported first-quarter 2024 results of $12 billion in premiums, expenses and other income, up 4% year-over-year, net investment income of $5.4 billion, up 17% year-over-year, and net income of $0.8 billion, compared to $14 million in the same period last year, with growth driven by higher adjusted income and lower net investment losses. MetLife announced that its board of directors approved a new $3 billion share repurchase program.
Commodity-
1. According to the latest Global Gold Demand Trend Report for the first quarter of 2024 released by the World Gold Council, global central banks increased their holdings of gold reserves by 290 tons in the first quarter of this year, of which the People's Bank of China was the largest buyer, with a cumulative purchase of 27 tons in the first quarter and has increased their holdings of gold for 17 consecutive months. On the gold consumption side, China's bar and coin demand reached a 21-year high of 110t in the first quarter.
2. Ukraine's wheat exports could fall from 18 million tonnes in 2023/24 to 14 million tonnes in 2024/25, Ukraine's corn exports could fall from 27 million tonnes in 2023/24 to 2000-21 million tonnes in 2024/25, and barley exports are expected to stabilize at 3 million tonnes in 2024/25, according to Ukraine's Deputy Minister of Agriculture.
3. India's soybean oil imports rose 79% month-on-month to 391,000 mt in April, the highest level in 10 months, while palm oil imports jumped 41% month-on-month to 682,000 mt, the highest level in three months, traders said.
4. JPMorgan Chase: OPEC+ is expected to extend the voluntary production cut policy after the second quarter, keep the Brent crude oil price forecast unchanged, at the upper end of the range of $80-90 by May and $85 after May, and maintain a bullish risk appetite on benchmark oil prices, but if the US-Saudi security agreement is successfully reached, the view may turn neutral.
Bond//
1. Canada's long-term external debt rating was confirmed by Moody's as Aaa.
2. Data from fund analysis firm Lipper showed $811 million in short- and medium-term investment-grade bonds in the week ended May 1, compared with $605 million previously. U.S. high-yield bond inflows were $63 million, compared to $568 million previously. U.S. Treasuries saw an outflow of $2.17 billion, compared with an outflow of $314 million previously.
Foreign exchange//
1. The Hong Kong Monetary Authority (HKMA) responds to the Fed's interest rate decision: Hong Kong's financial and money markets continue to operate smoothly, the Hong Kong dollar exchange rate remains stable, and the Hong Kong dollar interbank rate may remain at a high level in the coming days.
2. Japan's Vice Minister of Finance Masato Kanda said that excessive foreign exchange fluctuations that have a significant impact on the Japanese economy cannot be ignored, and market fluctuations will be appropriately handled around the clock when needed. Japan will disclose data on foreign exchange intervention at the end of the month.
3. Bank of Japan data shows that Japanese officials may have spent between 3.26 trillion and 3.66 trillion yen to intervene in the yen exchange rate. The Bank of Japan's forecast for money market conditions on Tuesday showed a net inflow of 4.36 trillion yen, compared to an estimate of 700 billion to 1.1 trillion yen for money market brokers excluding intervening funds. Forex trading takes two business days to settle, and the Japanese market is closed this Friday and next Monday for public holidays.
Important Economic Agenda //
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