【English】July 26, 2024 - Southern Dongying Regional Market Morning Report

The US second-quarter economic growth exceeded expectations due to steady increases in consumer spending and business investment, but inflationary pressures weakened, keeping expectations of a September interest rate cut by the Federal Reserve unchanged.

The preliminary annualized quarter-on-quarter growth rate of real GDP in the US for the second quarter was 2.8%, higher than the market expectation of 2%, and the previous value was 1.4%. The Fed's inflation indicator of concern, the core PCE price index, rose 2.9% in the second quarter, slowing down from the previous value of 3.7% but still higher than the expected 2.7%.

This fiscal year's fiscal deficit target is lowered to 4.9% of GDP, and the corporate income tax for foreign companies is reduced from 40% to 35%. The standard deduction for personal income tax is increased from 0.05 million rupees to 0.075 million rupees.

The Indian government plans to provide a 2 trillion rupee stimulus package to increase employment and stimulate the economy. In addition, India plans to raise the short-term capital gains tax rate on stocks from 15% to 20%, the long-term rate from 10% to 12.5%, and increase the tax on derivatives trading.

SK Hynix (000660.KP) announced that its second quarter revenue has more than doubled, and this year's capital expenditure may exceed previous plans, indicating that the AI hardware spending boom is expected to continue this year.

SK Hynix is an important partner of NVIDIA AI computing chips. The company reported quarterly revenue of 16.4 trillion Korean won ($11.9 billion), better than expected, with high-bandwidth memory chip revenue growing by more than 250%. Driven by the price increase of DRAM and NAND, the operating profit for the three months ending in June also exceeded expectations, reaching 5.47 trillion Korean won, with an operating margin of 33%.

This document is for general reference only. This document is provided to the recipient and shall not be further distributed. In no circumstances shall this document be construed as a forecast, research, or investment advice for future events, nor shall it be construed as an opinion, offer, solicitation, invitation, advertisement, inducement, recommendation, suggestion, persuasion, statement, or commitment to purchase, sell or distribute any securities, funds or financial products or to engage in any type of investment or transaction. Southern Eastern Asset Management Limited and Southern Eastern Asset Management Private Limited ("Southern Eastern") believe that the data sources obtained when creating this document are accurate, complete, and appropriate, but Southern Eastern does not make any representations or warranties as to the accuracy, reliability, timeliness, completeness, or reasonableness of the contents of this document. Southern Eastern 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 using and/or relying on this document. This document may contain "forward-looking" information that is not purely historical. Such information may include forecasts, estimates of earnings or returns, and possible portfolio composition. The opinions expressed in this document reflect the judgment of Southern Eastern as of the date of preparation of the material and are subject to change at any time without notice. Southern Eastern has no obligation to ensure the timeliness of such information. Any contents of this document do not constitute financial, professional, investment, legal, or any other opinions or advice. For investment advice, please consult your professional legal, tax, and financial advisors. This document is not intended for distribution to any individual or entity in any jurisdiction or country/region where such distribution or use would violate any laws or regulations, or where Southern Eastern would be subjected to any registration requirements in such jurisdiction or country/region.

Investment involves risks. Future performance and capital value are not guaranteed. Past performance data does not indicate future performance. Investors should not rely solely on this document to make investment decisions. Investors should determine the suitability of any investment, security, or strategy based on their personal financial situation, and if necessary, seek professional advice.

This document is not intended for distribution in jurisdictions where it is prohibited. This document is prepared by Southern Eastern Asset Management and has not been reviewed by the Hong Kong Securities and Futures Commission (“SFC”) or the Monetary Authority of Singapore. All copyrights, patents, and other intellectual property rights related to the information contained in this document are owned by Southern Eastern. This document does not grant the recipient any copyrights or intellectual property rights to use the information contained (whether directly, indirectly, or implied). No part of this document may be reproduced, distributed, or copied without the written consent of Southern Eastern.

Issuer: Southern Eastern Asset Management Limited and Southern Eastern Asset Management (International) Limited