Pre-Market Brief: Long-Term Capital Market Entry Plan; China Dragon Index Jumps 11%
**Financial Calendar**
10:00 The State Council Information Office holds a series of thematic press conferences on "Promoting High-Quality Development" (National Radio and Television Administration)
13:00 China's industrial enterprises above designated size profit for August
14:00 The State Council Information Office holds a press conference on travel service guarantees during the National Day holiday
16:00 State Council Policy Regular Briefing: Information on the "Several Opinions of the State Council on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Insurance Industry"
20:30 U.S. Core PCE Price Index for August
22:00 Final value of the University of Michigan Consumer Sentiment Index for September
Advertisement
Local time on Thursday, the Dow Jones Industrial Average rose by 260 points, and the S&P 500 Index set new historical highs for both intraday and closing values. As of the close, the Dow Jones Industrial Average increased by 0.62%, the Nasdaq Composite increased by 0.60%, and the S&P 500 Index increased by 0.40%.
Popular Chinese concept stocks generally rose, with the NASDAQ Golden Dragon China Index increasing by 10.85%, marking the largest single-day gain since 2022. Iqiyi and Bilibili rose by more than 15%, JD.com rose by more than 14%, Pinduoduo rose by more than 13%, XPeng Motors rose by more than 11%, Alibaba and Weibo rose by more than 10%, Baidu rose by more than 9%, Tencent Music rose by more than 8%, Futu Holdings rose by more than 7%, Li Auto rose by more than 6%, and NIO rose by more than 2%.
Popular technology stocks fluctuated, with Apple and Google's gains being less than 1%, and Tesla's decline exceeding 1%.The data released by the U.S. Department of Labor shows that the number of initial jobless claims in the United States last week fell to 218,000, reaching a four-month low.
The final annualized quarter-on-quarter growth rate of the U.S. real GDP in the second quarter was 3%, in line with market expectations, with the previous value at 3.00%.
According to a message on the website of the China Securities Regulatory Commission (CSRC), recently, with the approval of the Central Financial and Economic Affairs Commission, the Central Financial Office and the CSRC jointly issued the "Guiding Opinions on Promoting the Entry of Medium and Long-term Funds into the Market". The main goal of the "Guiding Opinions" is that, after a period of effort, to significantly increase the scale and proportion of medium and long-term funds invested in the market, to make the investor structure of the capital market more rational, to comprehensively strengthen the long-term nature of investment behavior and the inherent stability of the market, to steadily improve investor returns, to deeply ingrain the concept of medium and long-term value investment, and to form a new situation where medium and long-term funds play a better leading role, the development of both investment and financing ends is more balanced, and the functions of the capital market are better utilized.
The main measures include: focusing on improving the supporting policies and systems for various types of medium and long-term funds to enter the market. Establishing and improving the long-term assessment mechanism for commercial insurance funds, various pension funds, and other medium and long-term funds with a cycle of more than three years, and promoting the establishment of a long-term performance orientation. Cultivating and expanding patient capital such as insurance funds, removing institutional barriers affecting long-term investment by insurance funds, improving assessment and evaluation mechanisms, enriching long-term investment models of commercial insurance funds, improving the regulatory system for equity investment, supervising and guiding state-owned insurance companies to optimize long-term assessment mechanisms, promoting insurance institutions to be steadfast value investors, and providing stable long-term investment for the capital market. Improving the investment policy system of the National Social Security Fund and the basic pension insurance fund, supporting employers with conditions to open up individual investment choices for enterprise annuities, encouraging enterprise annuity fund managers to explore differentiated investments. Encouraging bank wealth management and trust funds to actively participate in the capital market, optimizing incentive assessment mechanisms, smoothing the channels for entering the market, and increasing the scale of equity investment, etc.
On September 27, according to the website of the People's Bank of China (PBOC), to create a good monetary and financial environment for the stable growth and high-quality development of China's economy. The PBOC decided: starting from September 27, 2024, to reduce the reserve requirement ratio for financial institutions by 0.5 percentage points (excluding financial institutions that have already implemented a 5% reserve requirement ratio). After this reduction, the weighted average reserve requirement ratio for financial institutions is approximately 6.6%.
At the same time, the PBOC announced that in order to increase the counter-cyclical adjustment of monetary policy and support stable economic growth, from September 27, the interest rate for the 7-day reverse repo operation in the open market will be adjusted from the previous 1.70% to 1.50%. The interest rates for the 14-day reverse repo and temporary positive and reverse repo operations in the open market continue to be determined by adding or subtracting points on the interest rate of the 7-day reverse repo operation in the open market, and the amount of addition or subtraction remains unchanged.
According to a message on the PBOC website, the People's Bank of China held a video meeting across the system to study and implement the spirit of the Central Political Bureau meeting on September 26, and to fully promote the recent financial incremental policy measures to be implemented quickly and effectively. The meeting emphasized that the Central Political Bureau meeting made a profound analysis of the current economic situation and made clear arrangements for the next economic work. The system of the People's Bank of China must act quickly, go all out, and fully implement it. It is necessary to accelerate the introduction of financial incremental policy measures, to抓好各项政策举措落实落地, and to strengthen departmental coordination, to form relevant working groups, to synergize across the system, and to effectively promote the continuous recovery and improvement of the economy and the high-quality development of finance.
According to Xinhua News Agency, the person in charge of the Policy Research Office of the National Development and Reform Commission stated that it is necessary to coordinate the implementation of existing and incremental policies. On the one hand, to accelerate the implementation of existing policy measures, to vigorously promote the construction of "two heavy" and the work of "two new", to form more physical work quantity more quickly and in greater numbers, to focus on stimulating consumption to expand domestic effective demand, to increase precise support for physical enterprises, to prevent and resolve risks in key areas, and to ensure and improve people's livelihoods; on the other hand, to anchor the annual expected targets, to focus on the concerns of business entities and society, to accelerate the introduction and implementation of targeted and effective incremental policies, to play a combination of punches, to stimulate the enthusiasm, initiative, and creativity for high-quality development, to promote the continuous recovery and improvement of the economy, and to complete the annual target tasks well.
According to Xinhua News Agency, Zou Lan, the head of the Monetary Policy Department of the People's Bank of China, stated that the People's Bank of China will implement the relevant arrangements of the meeting on "reducing the reserve requirement ratio and implementing a strong interest rate cut", and will accelerate the introduction of financial incremental policy measures. On the basis of reducing the reserve requirement ratio by 0.5 percentage points, further reductions will be made according to the market liquidity situation within the year. The policy interest rate will be reduced by 0.2 percentage points, and efforts will continue to guide the loan market报价利率 and deposit interest rates to move down synchronously, and to promote commercial banks to reduce the interest rates of existing housing loans.抓好各项政策举措落实落地, and effectively promote the recovery and improvement of the economy.
On the afternoon of September 26, the Ministry of Commerce held a regular press conference. When a media question mentioned that recently, Minister Wang Wentao met with the Executive Vice-President of the European Commission and Trade Commissioner Dombrovskis at the EU headquarters to conduct a comprehensive, in-depth, and constructive consultation on the EU's anti-subsidy case against Chinese electric vehicles. Could you please introduce the detailed situation and what new progress has been made in this negotiation? In response, the spokesperson of the Ministry of Commerce, He Yongqian, stated that on September 19, Minister Wang Wentao met with the Vice-President of the European Commission and Trade Commissioner Dombrovskis at the EU headquarters to conduct a comprehensive, in-depth, and constructive consultation on the EU's anti-subsidy case against Chinese electric vehicles. Both parties clearly expressed their political willingness to resolve differences through consultation and unanimously agreed to continue promoting the negotiation of the price undertaking agreement, and to make every effort to reach a solution acceptable to both parties through friendly dialogue and consultation. He Yongqian further introduced that the technical teams of both parties are currently consulting on a flexible price undertaking plan according to the direction clarified in this meeting, and are doing their utmost to reach a consensus on the solution framework before the final ruling. He Yongqian once again emphasized that "China has the utmost sincerity in properly resolving differences through dialogue and consultation, and also has the utmost determination to resolutely safeguard the legitimate interests of Chinese enterprises."The Ministry of Agriculture and Rural Affairs, along with six other departments, jointly issued a notice to stabilize the production of beef and dairy cattle. The notice calls for efforts to stabilize the basic production capacity of beef and dairy cattle, urging localities to accelerate the implementation of projects to expand and improve the quality of the basic cow herd, and to cultivate new types of business entities such as dairy cattle family farms and dairy farmer cooperatives. Effectively reduce the cost of feed for breeding households, make good use of grain-to-feed support policies, and accelerate the progress of high-quality forage collection and storage; implement county-wide transformation and upgrading projects for grassland animal husbandry to improve the quality of project construction. Promote the consumption of beef and milk, scientifically publicize and display the quality and nutritional value of fresh beef and fresh milk, promote "student drinking milk," and encourage places with conditions to stimulate milk consumption through the issuance of consumption vouchers and other means.
The notice also requires strengthening policy support for credit and insurance, establishing a whitelist system for beef and dairy cattle breeding households, and supporting breeding households facing temporary difficulties through reasonable extensions, renewals, and other means, without blindly withdrawing, cutting off, or limiting loans. Support the inclusion of live beef and dairy cattle and breeding sheds in the scope of collateral and encourage banking institutions to innovate special financial products such as "silage loans."
According to the China Securities Investment Fund Industry Association, as of the end of the second quarter of 2024, the total scale of asset management products of fund management companies and their subsidiaries, securities companies and their subsidiaries, futures companies and their asset management subsidiaries, and private fund management institutions reached 706 trillion yuan.
The Hefei Joint Investigation Team reported that on September 19, Hefei City established a joint investigation team to investigate the issues reflected on the internet recently regarding the live broadcast of the Three Sheep Company's live broadcast. According to relevant regulations such as the "Administrative Penalty Law" and the "Anti-Unfair Competition Law," it is proposed to confiscate illegal income and impose a fine totaling 68.9491 million yuan on the Three Sheep Company. In response to the issues existing in the live broadcast of the Three Sheep Company, it is ordered to suspend operations for a limited period of rectification and bear relevant legal responsibilities. Units and personnel who are derelict in their duties during the work process will be investigated by the disciplinary inspection and supervision department and dealt with seriously according to laws and regulations.
TikTok officially announced that according to relevant laws and regulations and the "TikTok E-commerce Creator Management General Rules," the platform has punished "Three Sheep." Starting from September 21, the platform has suspended the broadcast of accounts under "Three Sheep," and will further urge it to actively rectify and properly resolve the after-sales compensation matters of related consumers.
Hefei Three Sheep Network Technology Co., Ltd. issued a statement apologizing for the false propaganda and misleading consumers in the recent live broadcast. The company stated that it will fully accept the investigation and handling opinions and punishment results of the joint investigation team and is willing to bear relevant legal responsibilities; it will fully carry out internal rectification of the company in accordance with relevant laws and regulations such as the "Consumer Rights Protection Law of the People's Republic of China" and the "Network Anchor Behavior Norms," operate legally, and effectively protect the legal rights and interests of consumers.
Three index funds increased their holdings of Kweichow Moutai by 10 billion yuan in the third quarter.
Kweichow Moutai disclosed the latest list of shareholders, as of September 20 (the trading day before the repurchase share resolution), the shareholding ratio of several index funds has increased compared to the end of the second quarter. Among them, the Shanghai Stock Exchange 50 Exchange-Traded Open-End Index Securities Investment Fund increased its shareholding ratio from 0.80% to 0.97%, adding 2.1187 million shares; the Huatai-Pine沪深300 Exchange-Traded Open-End Index Securities Investment Fund increased its shareholding ratio from 0.59% to 0.87%, adding 3.536 million shares; the Easy Fund沪深300 Exchange-Traded Open-End Index Initiated Securities Investment Fund increased its shareholding ratio from 0.39% to 0.60%, adding 2.6455 million shares. The combined shareholding ratio of the three index funds increased by 0.66%, and based on today's total market value of Kweichow Moutai of 192.07 billion yuan, the value of the increased shares exceeds 10 billion yuan.
TCL Technology: Plans to acquire 80% of the equity of LG Display (China) Co., Ltd. and 100% of the equity of LG Display (Guangzhou) Co., Ltd. for 10.8 billion yuan.
TCL Technology announced that the company plans to acquire 80% of the equity of LG Display (China) Co., Ltd. (hereinafter referred to as "LGDCA") and 100% of the equity of LG Display (Guangzhou) Co., Ltd. (hereinafter referred to as "LGDGZ") through its holding subsidiary TCL China Star, as well as the related technology and support services required for the operation of LGDCA and LGDGZ, with a basic purchase price of 10.8 billion yuan. The final acquisition amount will be adjusted according to factors such as the profit and loss during the transition period and the delivery time point.Mingpu Optoelectronics: The 5.01% Company Shares Pledged by the Controlling Shareholder are in Default, Posing a Risk of Default Disposal
Mingpu Optoelectronics announced that the company's controlling shareholder and actual controller, Yang Xianjin, received a "Default Notification Letter" from CITIC Construction Investment Securities. The 11.8 million shares he holds (accounting for 15.42% of his holdings and 5.01% of the company's total share capital) are involved in a pledge that has defaulted. Yang Xianjin failed to repurchase the shares as stipulated in the contract on the maturity date, constituting a breach. CITIC Construction Investment has the right to take measures including but not limited to declaring default disposal to the exchange, charging penalty interest, and forced liquidation. Yang Xianjin is actively resolving the aforementioned default issues, but there is a risk that the company's shares he pledged may be disposed of due to default.
Muyuan Foods: Plans to Repurchase Shares with 3 to 4 Billion Yuan
Muyuan Foods announced that the company plans to use its own funds or self-raised funds to repurchase shares through a centralized bidding transaction method for employee stock ownership plans or equity incentive plans. The total amount of repurchase is not less than 3 billion yuan and not more than 4 billion yuan, with a repurchase price not exceeding 58.60 yuan per share. It is estimated that about 51.1945 million to 68.2594 million shares can be repurchased, accounting for 0.94% to 1.25% of the company's total share capital.
Baodian Electric: China Electrical Equipment Group Becomes the Controlling Shareholder
Baodian Electric announced that the company's controlling shareholder, the Ordnance Equipment Group, plans to transfer its directly held 37.98% of the company's shares, which is 100% of the company's equity, to China Electrical Equipment free of charge. After the completion of this transfer, the controlling shareholder of Baodian Electric will change from the Ordnance Equipment Group to China Electrical Equipment Group, with the actual controller remaining as the State-owned Assets Supervision and Administration Commission of the State Council.
Shuangcheng Pharmaceutical: There is Uncertainty Whether the Major Asset Restructuring Can be Successfully Implemented in the End
Shuangcheng Pharmaceutical issued an announcement of abnormal stock trading fluctuation and risk warning, stating that the company has paid attention to and verified the relevant situations. There is no need to correct or supplement the previously disclosed information, and no undisclosed major information has been found in recent public media reports that may or have had a significant impact on the company's stock trading price. The company is planning a major asset restructuring, and the audit and evaluation work for this transaction have not been completed. The specific transaction price has not been determined, and there is uncertainty whether it can be successfully implemented in the end.
4 Consecutive Board Hengying Technology: The Company's Stock Price Increase in the Short Term is Far Higher than the Industry Increase
Hengying Technology issued a stock trading risk warning announcement, stating that the company's stock price increase in the short term is far higher than the industry increase. The company's current production and operation are normal, and there have been no significant changes in the company's operating conditions and internal and external business environment recently. The company's main business is the research and development and manufacturing of financial intelligent terminal equipment, providing cash, non-cash, payment security, etc., needed by banks and other customers, including but not limited to: automatic teller machines (ATMs), deposit and withdrawal一体机 (CRS), high-speed large-amount deposit and withdrawal一体机 (TCR), intelligent teller machines, and related products, technologies, and services.COFCO Capital: Shareholder Boyu Boyang Plans to Reduce Holdings by Up to 3%
COFCO Capital announced that Boyu Boyang (Shenzhen) Equity Investment Fund Partnership (Limited Partnership), a shareholder holding more than 5% of the company's shares, plans to reduce its holdings by a combined total of up to 69.1232 million shares, which is no more than 3% of the company's total share capital, through concentrated bidding and block trading methods within three months after 15 trading days from the date of the announcement. Boyu Boyang is not a controlling shareholder, actual controller, or an affiliate of the company. The implementation of this reduction plan will not result in a change of control of the company and will not have a significant impact on the company's governance structure and continuous operations.
*ST Wei Chuang: Delisting on September 27
*ST Wei Chuang announced that the company's shares will be delisted by the Shenzhen Stock Exchange on September 27, 2024. The company's shares closed below 1 yuan per day for twenty consecutive trading days from July 26, 2024, to August 22, 2024, triggering the termination of listing. According to relevant regulations, the company's shares will not enter the delisting adjustment period and will be delisted within fifteen trading days after the termination of listing decision.
CITIC Securities: Recently, as market turnover gradually recovers to the trillion level, the overall market stock nature is activated, and investor sentiment becomes more optimistic. Driven by policies, the market turnover increases, first benefiting the financial sector, and then benefiting consumption. As for the subjects of net asset value breakage and restructuring, they are not the core driving forces of market growth. It is recommended that investors focus more on industry logic and development.
CICC: The Politburo meeting sets the tone for stable growth and confidence at a higher level and fully considers the impact on bank interest spreads and asset quality while supporting the real economy and the capital market, which helps achieve symbiosis and mutual prosperity with the real economy while ensuring stable operation of banks. Capital injections into large banks help maintain stable growth in credit and enhance the ability to resist risks. Investors are advised to choose banks with high dividends and stable asset quality; the current AH premium is high, and Hong Kong stocks may have room for premium narrowing under the expectation of dividend tax adjustments; banks with potential for marginal improvement in performance and financing demands, and a not low dividend yield, have the potential for excess returns.
Wanlian Securities: It is expected that subsequent supportive policies for the real estate industry are likely to be further intensified. The Politburo meeting first proposed "promoting the real estate market to stop falling and stabilize," reflecting a further strengthening of the policy end's attitude towards supporting the real estate industry. It is expected that under the promotion of a series of policies, the industry's fundamentals may marginally improve in the short term. Subsequently, it is still necessary to continue to pay attention to the performance of industry transaction volumes and housing prices. In terms of the market, it is recommended to focus on the real estate industry chain's beta trend driven by policy in the short term.