Financial attention
Macroeconomics
1. Audit Office: As of the end of September, there were 1786 issues identified in the 2023 audit that required immediate rectification, with a rectification rate of 94%, an increase of two percentage points year-on-year. Local governments, departments, and units have rectified over 538 billion yuan worth of problems and held more than 2800 people accountable.
2. The Ministry of Human Resources and Social Security has launched a special activity for employment assistance month in 2025, which will carry out investigations, visits, and targeted assistance. Concentrate on assisting workers facing employment difficulties, members of zero employment families, registered unemployed individuals, and other workers in finding employment and starting businesses.
3. Ministry of Finance: From 2019 to 2023, the general public budget expenditure for disaster prevention, mitigation, and emergency management in China will be 3053.605 billion yuan, with an average annual growth rate of 8.85%, which is 5.3 percentage points higher than the growth rate of the national general public budget expenditure during the same period. The budget allocation for disaster prevention and reduction in 2024 is 334.315 billion yuan.
4. Hong Kong Financial Secretary Paul Chan: Hong Kong needs to promote more product innovation and cross-border cooperation innovation in the future, further enhance the size of the financial market, and better meet the financing needs of enterprises and other institutions under technological changes and geopolitical situations.
Stock market inventory
1. Last Friday, the Shanghai Composite Index closed down 0.06% at 3368.07 points, down 0.7% for the week; The Shenzhen Component Index closed down 0.02% at 10646.62 points, down 0.62% for the week; The ChiNext Index closed down 0.18% at 2209.66 points, down 1.15% for the week.
2. Last Friday, the Hang Seng Index closed down 0.16% at 19720.70 points, down 1.25% for the week; The Hang Seng Technology Index closed up 0.11% at 4444.19 points, down 0.79% for the week; The state-owned enterprise index closed down 0.12% at 7143.88 points, down 0.59% for the week.
3. 21st Century Business Herald: The performance of active equity funds differed by more than 100 percentage points between the beginning and end of the year. At present, all three active equity funds with the highest profits this year adopt high concentration strategies, while the three funds with the highest losses adopt low concentration strategies. The strategy of breaking down into smaller units with low concentration is related to dealing with potential large redemption risks.
4. Haitong Securities: ASIC (Application Specific Integrated Circuit) can achieve higher efficiency and lower energy consumption when processing specific tasks, thus achieving the ultimate in performance and efficiency. The massive demand for computing power in inference scenarios coupled with more fixed AI algorithms is expected to drive explosive growth in ASIC chips. Suggest paying attention to PCB companies in China that can participate in the North American AI ASIC chain.
5. CITIC Securities: It is expected that the theme rotation led by active funds and the willingness to increase institutional fund dividends will drive the cross year market. There is still a lot of room for further easing of domestic monetary policy, and there is currently no consensus between market active funds and institutional funds, which will continue the characteristic of "separate pricing".
6. CITIC Securities: Bond market interest rates are rapidly declining, and the dual bull pattern of stocks and bonds in China's capital market continues. Recent data shows an improvement in real estate sales, and overall, there is still room for policy escalation. At the beginning of next year, loose policies are still expected to intensify, and reducing reserve requirement ratios and interest rates is worth looking forward to. Pay attention to potential policy directions for benefit, and AI+is the medium-term industry mainline.
7. Xin Yisheng: The actual controller Gao Guangrong has been investigated for suspected violations of restrictive regulations regarding the transfer of stocks, which is unrelated to the company's operations and will not have any impact on the company.
8. Haier Biotech: We are planning to merge with Shanghai Laishi. Due to the uncertainty of this transaction, which is still in the planning stage, the company's securities are scheduled to be suspended from trading starting from December 23rd.
9. Lingnan Stock: The cumulative deviation of the closing price increase of the company's stock for two consecutive trading days exceeds 20%. The company does not have any other significant matters or developments that should have been disclosed but have not been disclosed.
10. Subscription of new shares: This week, there were two new shares subscribed, namely, Mount Huangshan Gujie on the GEM and Star Map Measurement and Control on the Beijing Stock Exchange.
11. Restricted and unlocked: This week, a total of 84 restricted shares were unlocked, with a total of 7.34 billion shares unlocked and a market value of 66.17 billion yuan. Among them, Yong'an Futures ranked first on the unlocking list with 12.835 billion yuan, while Northern Copper and Hongsheng Huayuan ranked second and third with 8.671 billion yuan and 4.247 billion yuan respectively.
12. Shengke Communication: The National Integrated Circuit Industry Investment Fund plans to reduce its holdings of the company's shares by no more than 12.3 million shares, or no more than 3% of the company's shares.
13. Hongbai New Materials: The two shareholders plan to reduce their total holdings of the company's shares by no more than 4.97%.
Industry Observation
1. Ministry of Industry and Information Technology: The number of software developers in China has exceeded 9.4 million. At present, more than 70 units have joined the open-source HarmonyOS ecosystem, with over 8100 people participating in code contributions and contributing over 120 million lines of code.
2. Xiao Gang, former chairman of the China Securities Regulatory Commission: Artificial intelligence has greatly improved the ability of financial institutions to identify, warn, and control risks, but it has not dispersed or eliminated financial risks. We need to strengthen the governance of financial AI algorithms and models, establish a governance framework for algorithm models, with laws and regulations at the top level.
3. First Financial: Recently, the second phase of the Beijing Economic and Technological Development Zone (Beijing Yizhuang) Government Investment Guidance Fund, with a scale of 10 billion yuan, will be officially established. It will continue to focus on enterprises that meet the industrial positioning and relevant industrial policies of the Economic Development Zone, such as the four leading industries and six future industries, and provide greater support to accelerate the development of new quality productivity in the Economic Development Zone.
4. Shanghai Aviation Stock Exchange: Last week, the negotiation game for the 2025 coal electricity long-term agreement intensified, with terminal power plants mainly focusing on digesting existing inventory, and the transportation market experiencing scarce cargo, resulting in a continuous decline in the comprehensive index. On December 20th, the China Coastal (Bulk) Composite Freight Index closed at 1061.31 points, a decrease of 5.5% compared to the previous month.
5. National Energy Group: China's largest "fishery photovoltaic complementary" project is connected to the grid for power generation, with an average annual power generation of about 1.86 billion kilowatt hours, which can meet the annual electricity consumption of approximately 2.79 million residents. It can save about 561000 tons of standard coal and reduce carbon dioxide emissions by about 1.4 million tons annually.
6. Zhengzhou Airport in Henan Province: On December 22nd, the Zhongyuan Longhao Airlines B747 all cargo aircraft arrived in Zhengzhou from Chennai, marking that the cargo and mail throughput of Zhengzhou Airport has exceeded 800000 tons this year, breaking the record for the highest volume since its opening.
7. IT Home: It is reported that the Beijing Smart Esports Competition Center will hold 100 top esports competitions next year, with an average of one competition every 3.5 days, covering all terminal and top esports projects.
8. Lighthouse Professional Edition: As of 16:17 on December 22, 2024, the box office (including pre-sales) of movies during the New Year holiday (November 22 December 31) has exceeded 2 billion yuan.
9. NASA: Webb Telescope has discovered over a hundred "mini" asteroids, which are smaller than those previously detected by astronomers in the main asteroid belt of the solar system. The new discovery helps to enhance people's understanding of the size, quantity, and evolutionary history of asteroids in the main belt. The relevant paper has been published in the journal Nature in the UK.
Financial data
1. New Third Board: Last week, 5 new listed companies were added with a transaction amount of 1.048 billion yuan, a decrease of 7.45% compared to the previous week. As of now, the total number of companies listed on the New Third Board has reached 6100.
2. Last Friday, the onshore Chinese yuan closed at 4:30 pm against the US dollar at 7.2985, up 0.0096% and down 0.2610% for the week; The central parity rate of the Chinese yuan was reported at 7.1901, up 0.0139% and down 0.0348% 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 3.224 million tons, with a total trading volume of 311.6679 million yuan and a closing price of 98.33 yuan/ton, a weekly decline of 2.39%.
4. US stock market: Last Friday, the Dow Jones Industrial Average rose 1.18% to 42840.26 points, down 2.25% for the week; The S&P 500 index rose 1.09% to 5930.85 points, down 1.99% for the week; The Nasdaq rose 1.03% to 19572.60 points, and fell 1.78% for the week.
5. Europe: Last Friday, the German DAX30 index fell 0.43% to 19884.75 points, down 2.55% for the week; The French CAC40 index fell 0.27% to 7274.48 points, down 1.82% for the week; The FTSE 100 index in the UK fell 0.26% to 8084.61 points, down 2.6% for the week.
6. Gold: Last Friday, COMEX gold futures rose 1.25% to $2640.8 per ounce, down 1.32% for the week.
7. Crude oil: Last Friday, the settlement price of WTI February crude oil futures rose 0.11% to $69.46 per barrel, down 1.92% for the week. Brent crude oil futures for February rose 0.08% to $72.94 per barrel, down 2.08% for the week.
Guohai Securities: Brain computer interface technology is on the eve of a qualitative change in large-scale application, and the landing of domestic and foreign applications is accelerating. In terms of invasive BCI, Neuralink completed its first human implantation in January of this year; Axoft plans to develop brain computer interfaces that integrate at least millions of electrodes and have obtained breakthrough device certification from the FDA. In terms of non-invasive BCI, multiple studies have shown that brain computer interface rehabilitation training has better rehabilitation effects on stroke patients than conventional methods. Listed companies are actively laying out brain computer interface rehabilitation devices, and the development of the industry is expected to accelerate.
China Academy of Information and Communications Technology: Medical is currently the most important industrialization direction of brain computer interface technology, accounting for 56%, covering various applications such as disease diagnosis, disease early warning, and rehabilitation treatment. Other fields such as industry, military, and entertainment account for 44%, and the future commercialization space is vast. At present, the global brain computer interface field has slowly gone through the technology verification period and entered the early stage of industrial development. By 2025, it is expected that more clinical patients will use brain computer interfaces in fields such as visual reconstruction, high paraplegia, and motor rehabilitation. Brain computer interfaces are expected to experience rapid growth in the next 10 years.
McKinsey: The brain computer interface market has enormous potential. The global brain computer interface medical application market is expected to reach $40 billion by 2030 and $145 billion by 2040. The market size of brain computer interfaces in China is expected to exceed 120 billion yuan by 2040, with a compound annual growth rate of about 26%.
CITIC Securities: Brain computer interface is one of the most promising development directions for new quality productivity, and domestic and foreign brain computer enterprises are actively promoting the commercialization of brain computer interfaces in multiple fields such as healthcare, industry, and entertainment. Domestic policies attach great importance to the construction of the brain computer interface industry and coordinate the promotion of brain computer interface application transformation. It is recommended to focus on three main investment themes. The first one is the breakthrough of overseas leading industries, which drives up the expected prosperity of domestic mapping targets; The second main line is companies that are expected to launch consumer grade brain computer products; The third main line is the application side companies that are expected to benefit from the landing of brain computer products.