Roundup of headlines:
New major policy in real estate! The government expands the scope of purchasing and confiscating houses to cities at or above the county level, and experts say the policy can achieve four goals with one stone.
On June 20th, the Ministry of Housing and Urban-Rural Development held a video conference on the acquisition of completed commercial housing as indemnificatory housing. At the meeting, the Ministry of Housing and Urban-Rural Development clearly stated that all regions should promote the effective and orderly acquisition of completed commercial housing as indemnificatory housing in cities at or above the county level. According to the actual demand for indemnificatory housing and the inventory level of commercial housing, based on the concept of government-led and market-oriented operation, local authorities should make autonomous decisions and voluntary participation. It is necessary to adhere to the needs-based subscription, accurately identify the demand, carefully investigate the number of demand and completed commercial housing stock in the local area, reasonably determine the commercial housing sources that can be used as indemnificatory housing and lock in the demand for indemnificatory housing in advance.
Commentary: The convening of this meeting means that after the intensive introduction of the new real estate policy on May 17th and the deployment and arrangement of real estate policies at the State Council meeting on June 7th, supporting policies in the industry are accelerating. In particular, looking at the recent National People's Congress' lending work promotion meeting for indemnificatory housing, the purchase of inventory commercial housing for indemnificatory housing will be rolled out nationwide and comprehensively strengthened in the future.
The probability of an interest rate cut has exceeded 60%! A series of heavy data has been released in the U.S., but Goldman Sachs warns that the election may trigger an inflation storm.
The market is closely watching a series of latest data, trying to find more clues about the timing of the Fed's interest rate cut. On June 20th local time, the latest speech by Kashkari, President of the Minneapolis Fed, released an important signal. Kashkari said it may take one or two years to return to a 2% inflation rate. Regarding the expectations of the Fed's interest rate cut, he said that the interest rate prospect depends on the development path of the economy.
Commentary: Analysts pointed out that the pace of new housing construction in the U.S. in May fell to the slowest pace in four years, due to interest rate hikes easing the early development momentum of the housing industry. Jeffrey Roach, chief economist at LPL Financial, said that the slowing down of residential construction in the United States will further ease the price pressure on bulk commodities such as timber, and that weak demand and inflation relief should allow the Fed to begin cutting interest rates later this year.
The process of clearing silicon materials may continue in the second half of the year. National Energy Administration: Will reasonably guide upstream photovoltaic capacity building and release.
On June 20th, Li Changjun, director of the New and Renewable Energy Department of the National Energy Administration, said at a press conference of the State Council Information Office that the competition in China's photovoltaic industry is indeed very fierce. "In order to guide the healthy development of the industry, we will work with relevant departments and industry associations to timely release information on industry scale, capacity utilization and market demand, and reasonably guide upstream photovoltaic capacity building and release to avoid repetitive construction of low-end capacity and promote a good market environment." [National Energy Administration: There is no "capacity surplus" in China's new energy industry]
Commentary: "Recently, the photovoltaic industry has faced many challenges and the prices of raw materials such as polysilicon and wafers have fallen, compressing corporate profits." Sinolink Securities said that the silicon material sector will go through a painful clearance process in the second half of the year.
The offshore renminbi market liquidity has been tightened again by the central bank! Determined to stabilize the exchange rate, forcing speculative capital to withdraw.
On June 19th, the People's Bank of China issued RMB 20 billion central bank bills through the China International Financing Management Co. Ltd's (CMU) debt instrument central clearing system through interest rate bidding, with a term of six months. Among them, RMB 5 billion is a rolling issue, and RMB 15 billion is a new issue. This is the sixth time since August 2023 that the central bank has increased the issuance of offshore RMB central bank bills through Hong Kong. The cumulative increase in the issuance scale has reached RMB 60 billion.
Commentary: In the industry's view, the central bank's move has a high degree of stability in the exchange rate. The central bank's regulators also wrote in the media that over the past year, the central bank has repeatedly increased the issuance of offshore RMB central bank bills, releasing important policy signals to strengthen the regulation of the offshore RMB liquidity and stabilize the exchange rate of the RMB, indicating the central bank's determination to stabilize the exchange rate and favorable to stabilizing market expectations for the forex market.
No breakthrough in the past six months! The Shanghai and Shenzhen Stock Exchanges have begun to accept IPO applications.
After nearly 6 months of unaccepted IPO applications, the application for IPO of Xi'an Taijin New Energy Technology Co., Ltd. was accepted on June 20th, and the IPO application of China Uranium Corporation Limited was accepted on the same day. Since 2024, the IPO applications of the Shanghai and Shenzhen Stock Exchanges have been in a long-term state of no acceptance, and the IPO progress of the two companies today makes them the first companies to receive acceptance since 2024.
Commentary: On August 27, 2023, after the China Securities Regulatory Commission announced a phased tightening of the IPO pace, IPO admissions became increasingly strict. The acceptance and listing of IPO applications have been significantly postponed. In terms of IPO application acceptance, whether it is the Shanghai main board or the sci-tech innovation board, the last record of acceptance was still at the end of December 2023, and it has been nearly half a year. The Shenzhen Stock Exchange has also been the same. Since 2024, the acceptance of IPO applications has been consistently silent.
Since the beginning of this year, many A-share listed companies have quickly bought back their shares, and various funds have joined together for multiple rounds of buybacks, and the proposed buyback amount far exceeds that of the past. According to statistics, as of June 20th, a total of 1583 A-share listed companies have announced buyback plans, with a total repurchase amount of 95.549 billion yuan, which exceeds the annual total of 91.415 billion yuan in 2023. By month, in February, which only had 15 trading days, the repurchase amount of listed companies reached 26.397 billion yuan, which was the highest for the year. Since the beginning of this year, the enthusiasm of listed companies for buybacks has increased significantly, and the total value of A-share buybacks is expected to reach a new historical high.
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Commentary: As of June 20th, a total of 1583 A-share listed companies have announced buyback plans, with a total repurchase amount of 95.549 billion yuan, which exceeds the annual total of 91.415 billion yuan in 2023. By month, in February, which only had 15 trading days, the repurchase amount of listed companies reached 26.397 billion yuan, which was the highest for the year.
【Industry Hotspot】
100% effectiveness! This AIDS prevention drug achieved amazing experimental results.
Brokers mine opportunities in subdivided industries through intensive research.
Energy storage system bidding prices repeatedly hit new lows, and combining storage and photovoltaics is the new direction of development?
Downstream demand will gradually recover, and the packaging paper industry is expected to enter a peak season in the third quarter.
【Market Trends】
A shares: On June 20th, the two cities opened low and went low throughout the day with the Shanghai Composite Index narrowly holding at 3000 points. As of the close, the Shanghai Composite Index was 3005.44 points, a decrease of 0.42%; Shenzhen Component Index was 9068.85 points, a decrease of 1.63%; and the ChiNext price index was 1762.70 points, a decrease of 1.44%. The two cities' total turnover was about 724 billion yuan. On the disk, the sci-tech innovation board, education, semiconductors and other sectors rose, while short plays, flying cars, and computing power leasing led the decline. Ma Hemu, an investment consultant at Hualong Securities, said that the Shanghai Composite Index opened high in the morning and quickly touched the 10-day moving average before encountering resistance and falling all day, ultimately narrowly holding the half-year line. The probability of the market breaking through the downside in the short term has increased, and it is necessary to pay attention to the emotional risks caused by this.
HK stocks: Hong Kong stocks opened high and went low throughout the day. The Hang Seng Tech Index fell by 1.68%, and the Hang Seng Index and the HSCCI fell by 0.52% and 0.48%, respectively. Let's take a look at today's market hotspots: technology stocks collectively went out, and the Hang Seng Index encountered resistance; the short-term hotspot was stronger and turned to blue chips; mainland real estate rebounded is still weak and dragged down market sentiment.
US stocks: US stocks closed on Thursday. The Dow rose by 300 points or 0.77% preliminarily, the S&P 500 index fell by 0.25%, and the Nasdaq fell by 0.79%. After rebounding to historic highs, US stocks fell again as there are signs that buyers are getting tired, triggering calls for a correction. The S&P 500 index briefly rose above 5,500 points in the session, which is higher than the technical threshold that usually indicates an overextended market. The ambitious technology stocks that drive this bull market faced pressure, and the Nasdaq 100 index fell after rising for seven consecutive days. Nvidia (NVDA.US) and Apple (AAPL.US) led the market down, with Nvidia rising 3.8% at the beginning of the market to the highest level in the session, and then fell 8% from the higher level, finally closing down 3.5% and missing the market value to Microsoft. The Dow Jones Industrial Average performed relatively well.
European stocks: European stocks have widened their gains, with the French CAC 40 Index up more than 1%, the Euro Stoxx 50 Index up nearly 1%, the German DAX Index up 0.5%, and the UK FTSE 100 Index up 0.4%.
【Institutional Strategy】
For the market as a whole, negative sentiment mainly comes from two things:
First, the People's Bank of China authorized the National Interbank Funding Center to release the loan market quotation rate (LPR) for June 20th. The 1-year LPR is 3.45%, and the LPR for over 5 years is 3.95%, both remaining unchanged. The inaction of the key interest rate has partially disappointed the market's expectations.
However, some industry insiders believe that under the condition of MLF interest rates remaining unchanged in June, the LPR staying put as well is in line with market expectations. In order to further stimulate domestic demand and support the real economy, and with internal and external constraints gradually easing, there is still room for the LPR to be lowered in the future.
Second, the offshore RMB to USD exchange rate hit a new low since November last year, with its lowest rate at 7.28745 today.
On the 2024 Lujiazui Forum yesterday, Pan Gongsheng, the Governor of the People's Bank of China, stated that the RMB exchange rate has remained basically stable under complex circumstances. With the timing of major developed economies' monetary policy shifting repeatedly pushed back this year, the China-US interest rate differential has remained relatively high. We insist on the decisive role of the market in determining the exchange rate, maintain exchange rate flexibility, but at the same time strengthen expectation guidance and resolutely guard against exchange rate overshooting risks.
Topic Company
Western Securities: is actively planning to purchase the controlling interest of Guorong Securities in cash.
Is actively planning to purchase the controlling interest of Guorong Securities Co., Ltd. with cash payment, and the specific proportion of shares acquired shall be subject to the share transfer agreement finally signed.
8 trading days double, Dongjing Electronic reminds of the risks again! Has accumulated losses of over 400 million yuan, and has not distributed dividends for 12 consecutive years.
On June 20th, Dongjing Electronics hit the limit down in mid-day trading, and then rebounded shakingly. Approaching mid-day, it hit the limit up again, showing a "land and sky" trend. At the close, Dongjing Electronics' stock price was 9.22 yuan, with more than 120,000 hands on the limit up board. On the same day, the Shenzhen Stock Exchange disclosed that Dongjing Electronics had risen by 102.6% during June 11th to June 20th, and natural persons had bought 1.788 billion yuan during the period of serious abnormal increase, accounting for 90.43%; among them, small and medium investors had accumulated a total of 1.385 billion yuan, accounting for 70.02%. Institutional investors bought a total of 189 million yuan, accounting for 9.57%.
New Stock Dynamics
None
Announcement Reminder
Suspension
600078 ST Chengxing
Resumption
600530 Shanghai Jiao Tong Ang Li
Major Issues Announcement: Shang Gong Shen Bei announced that the company increased capital to its wholly-owned subsidiary, DuPont Aihua Company, in Germany with its own funds, and participated in the bankruptcy reorganization of ICON Aircraft Inc. and its affiliates in the United States through its newly established subsidiary in the United States as a fictitious bidder to purchase related effective assets. The final bid was USD 15.79 million, and as of the date of this announcement, the U.S. bankruptcy court has issued an asset sale order, approving the sale of related effective assets to the company by ICON and its affiliates.
Air China Limited intends to purchase 100 domestically produced C919 aircrafts for approximately US$10.8 billion.
Air China Limited announced that it has signed an agreement with Commercial Aircraft Corporation of China (COMAC) to purchase 100 extended-range C919 aircrafts for a total price of about US$10.8 billion (approximately HKD 84.24 billion).
Shang Gong Group: Subsidiary has successfully bid for assets related to ICON in the USA for $15.79 million.
4 consecutive boards Huaming Intelligent: the company's stock price continues to rise and has accumulated a lot of profit adjustment risks.
Kaiwei Te rose for 6 days and hit the board 4 times: the company's stock price continues to rise and has accumulated a lot of profit adjustment risks.
Kaiwei Te announced that the deviation from the closing price of the stock trading for 10 consecutive trading days has accumulated to 100%. The company's stock price continues to rise and has accumulated a lot of profit adjustment risks. The company hereby advises all investors to pay attention to the risks of the secondary market trading, make rational decisions, and invest prudently. After the company's self-inspection, the company's production and operation activities are currently normal, and the daily operating situation has not changed significantly.
Zhejiang East Crystal Electronic has had 7 consecutive bullish trading days. The company's current PE ratio and PB ratio differ significantly from those of the same industry.
Dongjing Electronics announced that as of June 20th, the company's stock has hit the limit up for seven consecutive trading days, and the short-term change in the company's stock price has deviated greatly from the SZSE A Share Index. Moreover, the current price-earnings ratio and price-book ratio of the company differ significantly from those of the same industry, which may lead to the risk of a sharp fall in the stock price after a sharp rise. The company hereby reminds investors to invest rationally and pay attention to risks.
Hua Ming Intelligent shares rose for 4 consecutive boards: the company is currently not involved in the 'vehicle-road cloud' integrated project.
Hua Ming Intelligent announced that the company is currently not involved in the 'vehicle-road cloud' integrated project; the company's stock price has risen significantly in the short term, and there is a situation of overheated market sentiment, and there may be a risk of a sharp rise followed by a decline.
Tianmai Technology: The company did not participate in the relevant projects of the 'vehicle-road-cloud integration' application pilot.
Tianmai Technology issued an announcement of abnormal changes, the company noted that the market's recent attention to the 'vehicle-road-cloud' integration and EDR concept is high. The company reminds investors that the company's current business is still mainly focused on the smart bus business. As of now, the company has not participated in the relevant projects of the 'vehicle-road-cloud integration' application pilot, nor have related business income. Some of the company's on-board devices can achieve the relevant functions of EDR equipment, but the company did not separately develop, produce, or sell EDR products. Investors should pay attention to the risks.
Nanjing Chemical Fiber: The current main business is still cellulose fiber and PET core material.
Nanjing Chemical Fiber issued an announcement of abnormal changes. The company's main business is still cellulose fiber and PET core material. The company's production and operation situation is normal and there have been no significant changes. After the company's self-inspection and verification with the company's controlling shareholder, there are no significant matters that should be disclosed but have not been disclosed or significant matters in the planning stage.
Kuaijishan: The 'one-day-one-smoke' bubble yellow wine has not yet had a significant impact on the company's performance.
Kuaijishan issued an announcement of abnormal stock trading fluctuations. The company noted the recent media reports on the online sales of the new product 'one-day-one-smoke' bubble yellow wine developed by the company in 2023. According to statistics, the sales of the 'one-day-one-smoke' bubble yellow wine single product from January 1, 2024 to June 19, 2024 amounted to 16.5 million yuan, accounting for 1.2% of the company's total sales of wine in 2023, and has not yet had a significant impact on the company's performance.
ST Chengxing: The stock resumed trading on June 24 and canceled other risk warnings.
ST Chengxing issued an announcement that the company's stock was suspended for one day on June 21 and resumed trading on June 24, and canceled other risk warnings. The stock abbreviation was changed from 'ST Chengxing' to 'Chengxing Shareholding'. On the same day, the company announced that the phosphoric acid production line of the company's Jiangyin factory was temporarily shut down for maintenance due to the expiration of the safety production license on May 20, 2024. The company has recently received the safety production license issued by the Emergency Management Department of Jiangsu Province. The Jiangyin factory of the company has completed all preparations for the resumption of production of the phosphoric acid production line and has resumed production on June 20, 2024.
Tonghua Dongbao: The clinical trial of the Phase Ib hypoglycemic indication of injection THDBH120 has completed the first patient's medication.
Tonghua Dongbao announced that its wholly-owned subsidiary Dongbao Zixing received the approval notice of the clinical trial of the injection THDBH120 drug issued by the Drug Evaluation Center (CDE) of the National Medical Products Administration. The company has launched the Phase Ib diabetes clinical trial and completed medication for the first patient in recent days. THDBH120 is a GLP-1/GIP dual receptor agonist mainly used for the treatment of type 2 diabetes. The drug is expected to become a longer-acting diabetes treatment drug through multiple synergies and long-acting design.
Performance
Net income for May at Nanqiao Food increased by 3.16% year-on-year.
Nanqiao Food announced that the net profit attributable to shareholders of the parent company in May 2024 was RMB 18.59 million, a year-on-year increase of 3.16%.
Increase or reduce holdings.
Chengdu Guibao Science & Technology: Shareholders lead the capital to plan to increase their shareholding by 6.8231 million-13.6462 million shares.
Guibao Science & Technology announced that the company's shareholder, Leading Capital, holding a stake of more than 5%, increased its holdings of the company's shares by 2.880993 million shares, accounting for 0.74% of the company's total share capital on June 20, 2024. Leading Capital plans to increase its holdings of the company's shares through centralized bidding within six months from the date of this announcement. The total planned number of shares to be increased in this plan is not less than 6.8231 million shares (including the initial increase in shares) and not more than 13.6462 million shares (including the initial increase in shares), and the cumulative increase plan includes the initial increase in shares.
Longi Green Energy Technology: Director increased shareholding of 800,000 shares of the company on June 20th.
Longi Green Energy Technology announced that on June 20, 2024, Chairman Zhong Baoshen increased his holdings of 800,000 shares of the company's stock through the Shanghai Stock Exchange trading system centralized bidding transaction method, accounting for 0.01% of the company's total share capital, with an increased amount of 12.513 million yuan.
Jiayou International Logistics: Seven shareholders plan to reduce their shareholding by no more than 3.33% in total.
Jiayou International Logistics has announced that seven natural person shareholders, Han Jinghua, Meng Lian, Tang Shilun, Wang Benli, Hou Runping, Bai Yu, and Wu Zibin, plan to reduce their shares in the company through centralized bidding and/or bulk trading methods. The total number of shares to be reduced does not exceed 32.57 million shares, accounting for 3.33% of the total share capital of the company.
Dagang Holding Group: Shareholder Yingqi Management proposes to reduce shareholding by no more than 3%.
Dagang Holding Group announced that the shareholder, Intrinsic Management Plan, holding 16.90% of the company's shares, will reduce its shareholding by no more than 9.52 million shares, accounting for 3% of the total share capital of the company within the next three months through centralized bidding or bulk trading.
Xinyu Iron & Steel plans to increase its shareholding in the company by no more than 300 million yuan as a controlling shareholder.
Xinyu Iron & Steel announced that based on its recognition of the company's future continuous and stable development and long-term investment value, and to promote the company's continuous, stable and healthy development and enhance investor confidence, the controlling shareholder Xinyu Iron and Steel Group Co., Ltd. (referred to as 'Xinyu Group') intends to increase its holdings of Xinyu Iron & Steel shares with its own funds as appropriate. The planned amount of increase is not more than 300 million yuan.
Repurchase.
Ningbo Bird Co., Ltd. plans to repurchase shares with a amount of 40-80 million yuan.
Ningbo Bird Co., Ltd. announcement: proposed to repurchase shares with 40 to 80 million yuan, and the repurchase price will not exceed 5.00 yuan/share (inclusive).
Nanqiao Food: plans to repurchase shares with RMB 50-80 million; the repurchase price range does not exceed RMB 24.36 per share.
Nanqiao Food announced that it plans to repurchase shares with an amount of RMB 50 million to RMB 80 million, and the repurchase price range does not exceed RMB 24.36 per share.