Focus on hotspots:

1. According to the Ministry of Finance, after the Standing Committee of the National People's Congress approved relevant bills on November 8, the Ministry of Finance issued a 6 trillion yuan debt limit to local governments on November 9, guiding and urging local governments to quickly follow legal procedures, effectively carry out issuance work, and make proper arrangements for bond funds. Some provinces have already initiated issuance work to expedite policy implementation. In addition, the Ministry of Finance is formulating a plan to advance the issuance of part of the additional allotment of special bonds for 2025.

2. Ministry of Finance data shows that from January to October, the national general public budget revenue was 18,498.1 billion yuan, a 1.3% year-on-year decrease. Among them, national tax revenue was 15,078.2 billion yuan, down by 4.5% year-on-year; non-tax revenue was 3,419.9 billion yuan, up 15.3% year-on-year. Stamp tax was 292 billion yuan, down 16.4% year-on-year.

3. Goldman Sachs' 2025 outlook report released on November 18 predicts that the MSCI China Index and the CSI 300 Index will rise by 15% and 13% respectively in 2025, mainly due to earnings growth per share and moderate valuation increase.

4. The 104th China Electronics Fair opened in Shanghai yesterday. Jin Cunzhong, Executive Deputy Secretary General of the China Electronic Special Equipment Industry Association, stated at a sub-forum that it is expected that the sales revenue of domestic semiconductor equipment in 2024 will increase by 35%, exceeding 110 billion yuan; market share in mainland China will increase to 30%, a 5 percentage point growth over last year.

5. The Hong Kong Stock Exchange announced that it will host a summit forum on November 18 to celebrate the tenth anniversary of mutual market access. Currently, multiple measures to optimize mutual market access are being prepared, including introducing block trading in Shanghai-Hong Kong Stock Connect, including Real Estate Investment Trusts (REITs) in Shanghai-Hong Kong Stock Connect, and incorporating RMB stock trading counters into Stock Connect. Once these optimization measures are in place, they will provide more opportunities and choices for international and mainland investors in asset allocation.

6. S.F. Holding announced on HKEX that it plans to globally issue 0.17 billion H-shares through an IPO in Hong Kong, with a sale price not exceeding HK$36.3 per share and not lower than HK$32.3 per share. H-shares are expected to begin trading on the LSE on November 27.

Global Markets

On Monday, the three major US indexes showed mixed movements, with only the Dow Jones falling, while the Nasdaq rose by 0.6%, ending a four-day decline. At the close, the Dow Jones Industrial Average fell by 0.13%, the S&P 500 Index rose by 0.39%, and the Nasdaq Index rose by 0.60%.

Most large tech stocks rose, with Apple up 1.34%, Nvidia down 1.29%, Google up 1.63%, and Tesla up 5.62%.

China concept stocks were generally up, with the Nasdaq Golden Dragon Index up 1.71%, PDD Holdings up 2.90%, Nio up 4.01%, XPeng up 2.12%, Li Auto up 1.14%, Bilibili up 4.32%, Netease up 3.24%, Tencent Music up 3.79%, and iQiyi down 2.80%.

In the Hong Kong market, the three major indexes collectively rebounded on Monday, with the Hang Seng Index up by 0.77%, the Technology Index up by 0.32%, and the Hang Seng China Enterprises Index up by 1.10%.

From the market performance perspective, banking, coal, steel, and oil stocks maintained their upward trend, while healthcare stocks led the adjustments.

Company News:

Xiaomi Group-W (01810.HK): The third quarter revenue is about 92.5065 billion yuan, a year-on-year increase of 30.5%, a month-on-month increase of 4.1%; the profit is about 5.34 billion yuan, a year-on-year increase of 9.7%, a month-on-month increase of 5.3%; the adjusted net profit is 6.252 billion yuan, a year-on-year increase of 4.4%, a month-on-month increase of 1.2%.

Sunshine Insurance (06963.HK): Subsidiaries Sunshine Property Insurance and Sunshine Life Insurance had original insurance contract premium income of 40.094 billion yuan and 73.966 billion yuan respectively in the first 10 months, totaling 114.06 billion yuan, with year-on-year growth of 9.21% and 15.45% respectively.

Yankuang Energy (01171.HK): Intends to invest about 0.5215 billion yuan to acquire 100% equity of Zikuang Railways.

Country Garden Services (06098.HK): It plans to repurchase up to 0.334 billion shares on the open market in accordance with the general authorization.