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Weekly Financial Summary 2024-02-18

Date: 2024-02-18
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Financial attention

Macroeconomics




1. China Railway Group: On February 16th (the seventh day of the first lunar month), the national railway sent 15.288 million passengers, setting a new record for the daily passenger volume of Spring Festival travel for three consecutive days. On February 17th (the eighth day of the first lunar month), the last day of the Spring Festival holiday, the national railway is expected to send 16.2 million passengers, with an additional 2256 passenger trains, setting a new record for railway Spring Festival transportation capacity.




2. Hong Kong Chief Secretary for Administration Chen Kwok kee: Currently, residents of 49 cities across the country can freely travel to Hong Kong. The Hong Kong government is discussing with the mainland on how to increase the number of cities and is also studying the "one visa, multiple travel" measure. At present, the overall flow of entry and exit is smooth, with a total of over 3.9 million people entering and leaving the country, including about 750000 Hong Kong visitors and 650000 mainland visitors, an increase from the 640000 people in 2018 before the epidemic.




3. The Central Meteorological Observatory: On February 17th at 6:00 am, a yellow cold wave warning will continue to be issued. It is expected that from February 17th to 22nd, most areas of China will experience severe cooling from west to east and from north to south, with temperatures generally dropping by 8-12 ℃. The temperature in Xinjiang, most of North China, Northeast China, Huanghuai, Jianghuai and other regions will drop by 12-18 ℃.




Stock market inventory




1. Pengpai News: Recently, MSCI regularly released quarterly index review results and adjusted index targets, with four new A-shares including Midea Group, China Merchants Highway, Huada Intelligent Manufacturing, Samsung Medical, and 48 A-shares including Siripu, Honglu Steel Structure, Puluo Pharmaceutical, and Yihualu being transferred out. Industry insiders say that overall, the adjustment of MSCI's routine targets has little impact on A-shares. The inclusion ratio of 20% of A-shares has not changed, and there is a basic two-way balance between inflows and outflows. The proportion of A-shares in the MSCI Emerging Markets Index has hardly changed.




2. Xinhua News Agency: In 2023, the China Interbank Market Dealers Association conducted investigations on 52 institutions and imposed 121 disciplinary actions, involving 61 institutions and 60 responsible persons. We will continue to promote market discipline construction with a strict tone and measures, and through strict punishment and supervision, all types of business entities will return to their positions and fulfill their responsibilities.




3. 36 Kr: Amazon founder Jeff Bezos sold approximately 12 million shares of the company's stock worth approximately $2.03 billion on Tuesday and Wednesday of this month. The stock has been sold three times this month and has accumulated over $6 billion in cash. Bezos may ultimately sell up to 50 million shares of Amazon stock.




Industry observation




1. Ctrip: During the Spring Festival holiday, cultural and tourism consumption has surged, becoming the main force driving consumer spending among residents. Among them, domestic tourism, outbound tourism, and inbound tourism have blossomed in many areas, with significant year-on-year growth and exceeding the level of the same period in 2019; Domestic scenic spot ticket orders increased by over 60% year-on-year, while overseas scenic spot ticket orders increased by over 130% compared to 2019.




2. Alipay: After four years of Spring Festival, it has become the peak of global tourism consumption again, and shows an obvious "two-way" warming trend. During the Spring Festival, the number of overseas consumption transactions by users has reached 107% of the same period in 2019, with a year-on-year increase of 140% in consumption amount.




3. China Development Bank: In 2023, it will focus on key areas such as national logistics hubs, national backbone cold chain logistics bases, and material reserves, and increase its support for medium - and long-term financing. Throughout the year, over 40 billion yuan of medium - and long-term loans were issued to the logistics circulation industry, providing strong financial support for promoting the construction of a modern logistics system.




4. Ministry of Water Resources: Strictly establish green small hydropower demonstration power stations, strengthen training on demonstration creation, strictly review and control the creation, and strengthen daily supervision of demonstration power stations. In 2024, more than 80 green small hydropower demonstration power stations will be added, and incentive policies will be actively coordinated and introduced.




5. China Railway Shanghai Group: February 17th (the eighth day of the first lunar month) is the last day of the Spring Festival holiday, and the Yangtze River Delta Railway has reached its peak in return passenger flow. It is expected to send 2.66 million passengers on that day, and plans to add 568 passenger trains to form multiple units of 191 high-speed trains. We will make every effort to ensure the safety and orderly departure of passengers in a high passenger flow environment.




6. New Beijing News: The world's first C919 large passenger plane has taken off from Shanghai and is preparing to participate in the 2024 Singapore Air Show. Five domestically produced aircraft produced by COMAC, including the China Eastern Airlines C919, will meet with the public during the air show and make their first overseas "group" appearance.




7. Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers: In 2023, the wholesale quantity of A00 level sedans was 893400 units, and the cumulative wholesale sales of manufacturers decreased by 30%; The domestic retail quantity is 950700 units, with a cumulative decrease of 12% in retail sales. In January 2024, 84600 units were wholesale, accounting for 9.68% of the wholesale market share, a year-on-year increase of 222% and a month on month decrease of 45%; The micro car market has recently become the main market for electric vehicles.




8. Haikou Traffic Management Bureau: As of 9:00 am on February 17th, the total number of cars scheduled to leave the island on that day was about 20200, of which about 5200 had already left the island and about 15000 were waiting to leave. Affected by heavy fog from the early morning to the morning of the 16th, the waiting yards at the three ports in Haikou are currently saturated.




9. Shanghai Municipal Bureau of Culture and Tourism: During the Spring Festival, the city received a total of 16.7595 million tourists, an increase of about 50% year-on-year; The total amount of tourism consumption transactions, including food, accommodation, transportation, travel, shopping, entertainment, and other full elements, is 19.122 billion yuan; The average room occupancy rate of star rated hotels is 53%, a year-on-year increase of 15 percentage points.




10. Sichuan Provincial Department of Culture and Tourism: As of 15:00 on February 16, 833 A-level tourist attractions included in the statistics in the province received 5.376 million tourists and achieved ticket revenue of 62.5318 million yuan, a year-on-year increase of 25.74% and 32.63% respectively; Compared with the same caliber in the same period in 2019, it increased by 14.61% and 30.86% respectively.






Insight Economics




1. CCTV News: The Federal Reserve will test the ability of banks to withstand a wider range of potential shocks this year. This is the first annual test conducted since the collapse of Silicon Valley Bank and Signature Bank in the United States in March last year. The test covers 32 banks with asset sizes as low as $100 billion, with a focus on examining how banks can cope with a nearly 6.5 percentage point increase in unemployment rates. The results will be announced in June.




2. Meijingwang: Recently, OpenAI announced the launch of a new generative artificial intelligence model, Sora, which has attracted widespread attention. Even Tesla CEO Musk was amazed by this and expressed his conviction on social media. The market expects that in the latest round of financing led by venture capital firm Thrive Capital, OpenAI's valuation is expected to exceed $80 billion.




3. CCTV News: Due to Trump exaggerating his net assets by billions of dollars, which constitutes serious fraud, a New York state judge has imposed a fine of over $350 million on Trump, permanently prohibiting him from entering the New York real estate industry and significantly limiting his ability to conduct business in the state.




Financial data




1. China Securities and Futures Association: As of December 2023, the total scale of private equity asset management business of securities and futures operating institutions is 12.41 trillion yuan (excluding social security funds and enterprise annuities). The number and scale of fixed income products account for the largest proportion of the four categories of products, with mixed products ranking second, and futures and derivative products being relatively small in both quantity and scale.


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