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Weekly Financial Summary 2024-12-09

Date: 2024-12-09
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Financial attention

Macroeconomics

1. People's Daily: Looking back at the overall performance of the Chinese economy this year, the gross domestic product (GDP) grew by 5.3%, 4.7%, and 4.6% respectively in the first, second, and third quarters. Since September, with the continuous effectiveness of a package of incremental policies, the economy has maintained a positive trend of recovery. We have sufficient confidence to achieve this year's economic growth target, and the favorable conditions for China's economic development have not changed.

2. Securities Times: Banks are taking multiple measures to strengthen their blood supply, supplementing capital through external means such as issuing secondary capital bonds, perpetual bonds, or increasing capital and shares, in order to meet regulatory requirements and their own business operation capabilities. In the first 11 months, the scale of various banks issuing perpetual bonds has exceeded 1.58 trillion yuan, with state-owned large banks and joint-stock banks accounting for 80%.

3. Hu Deping, former Secretary of the Party Group of the All China Federation of Industry and Commerce: Currently, the difficulties faced by the private economy do not lie in endogenous driving forces or whether they are promoted. The difficulties are related to the business environment, external factors, capital, and laws. Private enterprises do not have state investment in capital, but they have generated several economic indicators that should be well protected.

4. China Fund News: As the end of the year approaches, multiple city commercial banks, rural commercial banks, and rural credit cooperatives are intensively issuing large denomination certificates of deposit. Against the backdrop of the comprehensive entry of the era of interest rates for large denomination certificates of deposit in state-owned banks, the interest rates for large denomination certificates of deposit issued by these local banks are significantly higher, with many products having an annualized interest rate exceeding 2%, and even products with an annual interest rate of 3% being sold.


Stock market inventory

1. Last Friday, the Shanghai Composite Index closed up 1.05% at 3404.08 points, up 2.33% for the week; The Shenzhen Component Index closed up 1.47% at 10791.34 points, with a weekly increase of 1.69%. The ChiNext Index closed up 2.05% at 2267.06 points, with a weekly increase of 1.94%.

2. Last Friday, the Hang Seng Index closed up 1.56% at 19865.85 points, up 2.28% for the week; The Hang Seng Technology Index closed up 2.16% at 4464.65 points, up 2.55% for the week, while the State owned Enterprises Index closed up 1.75% at 7136.55 points, up 2.73% for the week.

3. Economic Daily: Recently, the equity investment pilot of financial asset investment companies has been expanded to 18 cities nationwide, aiming to solve the financing difficulties of science and technology innovation enterprises. The Financial Supervisory Bureau has issued a notice to relax restrictions on the amount and proportion of equity investment, and provide full lifecycle financial services for science and technology innovation enterprises. This measure is seen as a breakthrough in the reform of the financial system and mechanism, helping to facilitate the transformation of old and new driving forces and the development of technological innovation.

4. Securities Times: Since December, public institutions have predicted that institutional funds, active funds, and retail funds are expected to form a joint force to drive the A-share market out of a new year's market trend. At the end of the year and the beginning of the year, the market tends to show obvious characteristics of "value building and growth singing", which can be used to plan ahead in two directions: business continuity and reversal of difficulties.

5. China Fund News: The enthusiasm for public fund new listings has increased, with nearly 2600 funds participating in new listings in November, an increase of 14% compared to September. Stimulated by factors such as the recovery of the stock market, scarcity of new stocks, and profit making effects, public funds actively subscribe to new stocks. But currently, the new stock allocation is more market-oriented, which greatly tests the pricing ability of fund managers.

6. Securities Times: Recently, the Shanghai Stock Exchange released updates on the issuance and listing review to sponsoring institutions, and a total of 6 investment banks were rated as Class A, a decrease of 4 compared to the first trial evaluation results in 2022. Three sponsoring institutions have made risk adjustments in accordance with relevant regulations due to factors such as delisting risk warnings for companies recommended for listing in 2018.

7. CITIC Securities: The policy setting of the Central Economic Work Conference is expected to remain positive, which will once again boost investor confidence. The domestic economy is steadily recovering over the next year with no reduction in momentum. Institutional funds, active funds, and retail funds are expected to resonate, driving the A-share market over the next year. In terms of allocation, it is recommended to continue to switch to high-performance growth and domestic consumption.

8. CSC: Last week, the yield of 10-year treasury bond fell below the 2% threshold. Against the background of low interest rate asset shortage, the demand for insurance funds to allocate equity assets has increased. From the perspective of the seasonality of allocation and market characteristics, a new round of incremental funds began to flow into the A-share market at the end of the year and the beginning of the year, and the capital base of the cross year market has been strengthened. It is expected that the market will continue to show a volatile upward feature.

9. Ziyan Food: A special working group has been organized to conduct a comprehensive inspection of the public opinion related to its products. After review and investigation, the factory inspection report for the corresponding batch of products published in the video is qualified. The company has commissioned multiple authoritative third-party testing institutions to conduct microbiological testing on the products, and the relevant test results will be made public in a timely manner.

10. Tianhe Solar: Terminate planning to list its controlling subsidiary Tianhe Fujia. The company will transform and upgrade into a provider of integrated solutions for photovoltaic and energy storage smart energy. Tianhe Fujia's distributed system business and operation and maintenance business will become an important component of the company's solution development strategy.

11. Tianrui Instrument: Other risk warnings have been implemented for the company's stock trading. The trading was suspended for one day from the opening of December 9th, and resumed on December 10th. At the same time, the company's stock abbreviation was changed to ST Tianrui.

12. * ST Hetai: The company and its subsidiaries have been ruled by the court to accept reorganization, and there may be a risk of being declared bankrupt due to the failure of reorganization. If the company and its subsidiaries fail to restructure and are declared bankrupt by the court, the company's stocks will face the risk of being delisted.

13. Shandong Mining Machinery (8 consecutive boards): The latest P/E ratio is significantly different from the industry average. Investors are advised to invest rationally and take precautions against investment risks.

14. Zhonggong Education (2 consecutive boards): There have been no significant changes in the internal and external business environment. During the period of abnormal stock trading in our company, the controlling shareholder and actual controller did not buy or sell our company's stocks.

15. New stock subscription: This week, there were three new stock subscriptions, namely Boko Testing on the ChiNext board, Lintai New Materials on the Beijing Stock Exchange, and Zhongli Shares on the Shanghai Stock Exchange main board.

16. Restricted and unlocked: This week, a total of 52 restricted shares were unlocked, with a total of 2.698 billion shares unlocked and a market value of 27.571 billion yuan. Among them, Guotou Power ranked first on the unlocking list with 7.754 billion yuan, while Dongxin Shares and Zhengbang Technology ranked second and third with 3.788 billion yuan and 3.442 billion yuan respectively.

17. Da Bei Nong: Its holding subsidiary, Jin Jin Nong Hua, plans to increase its capital and expand its shares. According to the agreement, Zhongnong Fund will increase its capital by 100 million yuan to acquire a 5.00% stake in Jinjin Nonghua. After the capital increase is completed, Jinjin Nonghua remains an indirectly controlled subsidiary of the company.

18. Qinhuangdao State owned Assets Supervision and Administration Commission plans to reduce its stake in the company by no more than 2%.

19. New Yichang: Shareholder Chunjiang Investment plans to reduce its total holdings of the company's shares by no more than 1.0213 million shares, accounting for no more than 1% of the company's total share capital.

20. Weimai Si: Shareholder Xinyu Tongsheng plans to reduce its holdings by no more than 8.4191 million shares, accounting for no more than 2% of the company's total share capital.


Industry Observation

1. Shenzhen plans to build an international medical headquarters and a wholly foreign-owned specialized hospital, which will be the first wholly foreign-owned specialized hospital project to be implemented nationwide after the four national departments announced the "Pilot Work Plan for Expanding the Opening up of the Wholly Owned Hospital Field".

2. China IoT: With the continuous release of online consumer demand, China's e-commerce logistics index continued to rise month on month in November, reaching a new high in nearly seven years. The total e-commerce logistics business volume index in all regions of the country has increased, with the Northeast region showing the largest increase.

3. Cui Dongshu: From January to November, the price reduction of plug-in hybrid vehicles reached 15000 yuan, with a reduction of 8.5%; The price reduction of pure electric vehicle models has reached 20000 yuan, and the price reduction of new cars has reached 10%. The winter price war has cooled down, and the market is gradually returning to a normalized competitive situation of promotion increment.

4. Civil Aviation Administration of China: Since the beginning of this year, China's air cargo volume has maintained a rapid growth trend, with the scale reaching the best level in history. From January to October, the entire industry completed a total of 7.298 million tons of freight and postal transportation, an increase of 19.3% compared to the same period in 2019. As a traditional peak season for cargo transportation, the fourth quarter saw a surge in air cargo volume and price due to the stimulation of demand from foreign shopping seasons.

5. Aerospace Science and Technology Group First Institute: HTJS-ALK-2000/1.6 alkaline electrolysis hydrogen production equipment has been released, which can meet the wide needs of applications such as large-scale chemical and new energy. The designed hydrogen production per hour reaches 2000 standard cubic meters, which is twice as efficient as the original product for hydrogen production.

6. Caixin News Agency: Due to weak terminal demand, peanut prices and production have decreased by 30% this year, and the purchase price per kilogram has dropped by 1 yuan compared to the same period last year. Large growers are barely able to break even. Peanut importers have expressed that peanut oil sales are under great pressure, and oil factories are becoming increasingly demanding in purchasing raw materials. They require both sufficiently cheap prices and good quality, and constantly adjust their procurement quantities.

7. Saudi Aramco: Reduce the official selling price of Arab light crude oil sold to Asia in January by 80 cents. The price of oil sold to Northwest Europe and the Mediterranean region has also been lowered, but there has been no change in the price of oil sold to North America.

Financial data

1. New Third Board: Last week, 6 new listed companies were added with a transaction amount of 1.188 billion yuan, a month on month increase of 13.79%. As of now, the total number of companies listed on the New Third Board has reached 6102.

2. Last Friday, the onshore Chinese yuan closed at 16:30 against the US dollar at 7.2582, up 0.0386%, down 0.3456% for the week. The central parity rate of the Chinese yuan was 7.1848, up 0.0431%, up 0.0403% for the week.

3. Shanghai Environmental Protection Exchange: Last week, the trading volume of carbon emission quota listing agreements in the national carbon market was 2.7241 million tons, with a total trading volume of 271.3279 million yuan and a closing price of 100.94 yuan/ton, a decrease of 1.41% for the week.

4. US stock market: Last Friday, the Dow Jones Industrial Average fell 0.28% to 44642.52 points, down 0.6% for the week; The S&P 500 index rose 0.25% to 6090.27 points, with a weekly increase of 0.93%. The Nasdaq rose 0.81% to 19859.77 points, with a weekly increase of 3.34%.

5. Europe: Last Friday, the German DAX30 index rose 0.13% to 20384.61 points, with a weekly increase of 3.86%. The French CAC40 index rose 1.31% to 7426.88 points, with a weekly increase of 2.65%. The UK FTSE 100 index fell 0.49% to 8308.61 points, with a weekly increase of 0.26%.

6. Gold: Last Friday, COMEX gold futures rose 0.25% to $2654.9 per ounce, down 0.71% for the week.

7. Crude oil: Last Friday, WTI January crude oil futures fell 1.61% to $67.20 per barrel, with a weekly decline of over 1.17%. Brent crude oil futures for February fell 1.35% to $71.12 per barrel, down 1.00% for the week.


The Ministry of Foreign Affairs: China is closely monitoring the development of the situation in Syria and hopes that Syria can restore national stability as soon as possible. In view of the current security situation in Syria, the Chinese Embassy in Syria has issued a security reminder, advising Chinese citizens not to travel to Syria temporarily. Chinese citizens and institutions who are already in the area should remain highly vigilant, strengthen security precautions, make emergency preparations, and take commercial flights or land ports to return to or leave the country as soon as possible. In case of emergency, please contact the Chinese Embassy in Syria in a timely manner for assistance. We will provide full support for the evacuation and other Chinese citizens in need.


CCTV News: After the martial law controversy, on December 7th, the impeachment case of South Korean President Yoon Seok yeol was not passed in the National Assembly. On December 8th, the Special Investigation Department of the South Korean Prosecutor's Office stated that it had received numerous reports about Yoon Seok yeol and had initiated an investigation into him. On the same day, the leader of the ruling party and the Prime Minister of South Korea met with reporters and stated that they will orderly advance the early termination of the presidential term. Before President Yoon Suk yeol steps down, he will no longer participate in national affairs, including diplomacy. It is the judgment of most citizens that Yin Xiyue will resign from the presidency. The leader of the ruling party will regularly meet with the Prime Minister to ensure that there are no political gaps in the country. The leader of South Korea's largest opposition party, Lee Jae myung, stated that the Prime Minister and the ruling party leader have disrupted the constitutional order, and the presidential authority is not private property and cannot be transferred. He also emphasized that it is necessary to successfully impeach Yin Xiyue in the name of the nation on December 14th.


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