[Chinese] 2024/7/26-South East East England Regional Market Morning Report

The US economy grew faster than expected in the second quarter. Due to steady growth in consumer spending and corporate investment, inflationary pressure weakened, and expectations for the Federal Reserve to cut interest rates in September remained unchanged.

The initial annualized quarterly value of US GDP for the second quarter was 2.8%, higher than market expectations of 2%. The previous value was 1.4%. The inflation indicator that the Federal Reserve is concerned about - the core PCE price index rose 2.9% in the second quarter, down from the previous value of 3.7%, but still higher than the forecast of 2.7%

The fiscal deficit target for this fiscal year was lowered to 4.9% of GDP, foreign corporate income tax was cut from 40% to 35%, and the standard personal income tax deduction was raised from 0.05 million rupees to 0.075 million rupees.

The Indian government will provide a package of 2 trillion rupees to increase employment and stimulate the economy. Additionally, India plans to raise the short-term stock capital gains tax rate from 15% to 20%, the long-term tax rate from 10% to 12.5%, and raise the derivatives transaction tax.

SK Hynix (000660.KP) announced that revenue for the second quarter more than doubled. This year's capital expenditure may exceed previous plans, or indicate that the global artificial intelligence (AI) hardware spending boom is expected to continue this year.

SK Hynix is an important partner for Nvidia's AI computing power chips. The company reported quarterly revenue of 16.4 trillion won ($11.9 billion), which was better than expected, and revenue from high-bandwidth memory chips increased by more than 250%. Driven by rising DRAM and NAND prices, operating profit for the three months ending June also exceeded expectations, reaching 5.47 trillion won, with an operating margin of 33%.

This document is for general reference only. This document is only available to the recipient and is not distributed further. Under no circumstances does this document constitute an estimate, study or investment advice on future events, nor should it be interpreted, expressed or implied, as the purchase, sale or sale of any securities, funds or financial products or the making of any type of investment or transaction, offer, solicitation, advertising, inducement, recommendation, suggestion, play, statement or promise. South East England Asset Management Limited and South East England Asset Management Private Limited (“South East England”) believe that the source of data is accurate, complete and appropriate at the time of making this document, but South East England does nothing to the accuracy, reliability, timeliness, completeness or reasonableness of the contents of this document Guaranteed. South East England and its affiliates shall not be liable for any loss, damage or expense incurred directly or indirectly by any recipient and/or its controlling shareholders as a result of the use and/or reliance on this document. This document may contain “forward-looking” information that is not purely historical. This information may include forecasts, forecasts, estimates of earnings or returns and possible portfolio composition. The views expressed in this document reflect the judgment of South East England at the time of compilation of the materials and are subject to change without notice at any time subject to subsequent changes in circumstances. South Eastern United is not responsible for ensuring the timeliness of such data. Nothing in this document constitutes a financial, professional, investment, legal, or any other opinion or advice. For investment advice, please consult your professional legal, tax and financial advisor. This document is not intended to be distributed to, or for use by, any person or entity in any jurisdiction or country/territory if such distribution or use would violate any law or regulation, or subject South East to any registration requirements in that jurisdiction or country.

Investing involves risk. Future performance and capital value are not guaranteed. Past performance data does not predict future performance statements. Investors should not rely solely on this document to make investment decisions. Investors should determine whether any investment, securities or strategy is suitable for you based on their personal financial circumstances, and if necessary, investors should consult professional opinions.

This document does not apply to jurisdictions where distribution or dispatch is prohibited. This document was prepared by Southern East England and has not been reviewed by the Hong Kong Securities and Futures Commission (“Hong Kong Securities and Futures Commission”) or the Monetary Authority of Singapore. All copyrights, patents and other property rights relating to the materials contained in this document are owned by Southern East England. This document does not grant the recipient any copyright or intellectual property rights (whether directly, or implied) to use the information contained therein. No material or part of this document may be copied, distributed or reproduced without the written consent of Southern East England.

Publisher: Southern East England Asset Management Co., Ltd. and Southern East Asia Asset Management Private Limited