[Today's headlines]

State Council's State-owned Assets Administration Commission: Attaches great importance to holding listed companies and includes solving long-term clean-up issues as an annual priority

The State Council's State-owned Assets Administration Commission recently issued “Certain Opinions on Improving and Strengthening Market Value Management of Listed Companies Controlled by Central Enterprises” to improve institutional arrangements to enhance investor confidence. Central enterprises and holding listed companies should use stock repurchase and increase holdings as a long-term basic task, and establish a mechanism to normalize stock repurchase and increase holdings.

Central enterprises should grasp the rules of capital market development, deeply understand changes in market valuation logic, promote the further gathering of high-quality resources within enterprises to hold listed companies, and support holding listed companies to implement mergers, acquisitions and restructuring with a focus on improving the competitive advantage of their main business, enhancing scientific and technological innovation capabilities, and promoting industrial upgrading.

The State Council's State-owned Assets Administration Commission said that in the next step, it will focus on implementing the “Opinions”, taking increasing the investment value of listed companies controlled by central enterprises and strengthening investor returns as a long-term task, guiding and promoting central enterprises to make good use of market value management methods, respond positively to market concerns, safeguard investors' interests, and make new and greater contributions to the high-quality development of the capital market.

[General outlook]

All US stocks fell overnight, and the Nasdaq China Golden Dragon Index closed up nearly 2%

Overnight, US stocks fell 267.58 points, or 0.61%, to 43449.90 points; the NASDAQ fell 64.83 points, or 0.32%, to 20109.06 points; and the S&P 500 index fell 23.47 points, or 0.39%, to 6050.61 points. Nvidia (NVDA.US) fell 1.2%. Tesla (TSLA.US) rose 3.6% and Apple (AAPL.US) closed up 1%, both of which reached record highs. The total market value of the latter exceeded 3.8 trillion dollars. The Nasdaq China Golden Dragon Index closed up nearly 2%, Alibaba (BABA.US) rose more than 1%, and Bili.US (BILI.US) rose 4.5%. The Hang Seng Index ADR rose. On a proportional basis, it closed at 19788.3, up 87.82 points or 0.45% from the Hong Kong closing. Markets await the Federal Reserve's last monetary policy decision of the year.

[Hot Topics Preview]

The Hong Kong Stock Exchange announced a reduction in the minimum price of the Hong Kong stock market. The first phase will be implemented in the middle of next year

On December 17, HKEx announced the consultation summary on the proposal to lower the minimum price of the Hong Kong stock market. This is one of HKEx's ongoing efforts to review and optimize the market's microstructure. Based on the majority of market participants supporting the recommendations in the consultation document, HKEx will implement the first phase of minimum price reduction around mid-2025, depending on market preparations, regulatory approval and implementation of other interrelated plans affecting the Hong Kong securities market. If there are no adverse effects within six months of the launch of the first phase, the second phase is tentatively scheduled to be implemented around mid-2026. The implementation of the first phase will cover stocks, real estate investment trusts and all other applicable securities, excluding exchange-traded products, bonds, exchange-traded options and structured products. Reduction range: For stocks in the price range of HK$10 to HK$20, the minimum price will be reduced by 50%; for stocks in the price range between HK$20 and HK$50, the minimum price increase will be reduced by 60%.

China Automobile Association: The effects of the automobile trade-in policy continued to show in November

According to data from the China Association of Automobile Manufacturers, in November 2024, passenger car production and sales reached 3.109 million units and 3.01 million units, respectively, up 14.9% and 9% month-on-month, and 14.9% and 15.2%, respectively. From January to November 2024, passenger car production and sales reached 24.459 million units and 24.435 million units, respectively, up 4.3% and 5% year-on-year, respectively. According to an analysis by the China Association of Automobile Manufacturers, in November, the effects of the automobile trade-in policy continued to show. Local and corporate promotional activities continued to gain strength. Coupled with the year-end sprint, they helped the passenger car market continue to strengthen and further release demand for car purchases.

Vanke acquired land in Guangzhou after a lapse of 4 years and acquired 3 parcels of residential land in the Guangzhou South Railway Station business district for 2.88 billion yuan

Guangzhou's Panyu District ushered in 4 official sales of residential land. According to the transaction results, Vanke obtained 3 parcels of residential land at the Guangzhou South Railway Station business district at a reserve price of 2.88 billion yuan; the plot on the south side of the Bank of China Tower was contested by Greentown at a 2% premium rate, with a total transaction price of about 0.508 billion yuan. The total amount for the four parcels was approximately $3.388 billion. It is worth mentioning that this is another time that Vanke has acquired land on the Guangzhou Open Land Market after a lapse of 4 years.

Huaneng New Energy signed a contract for a 15 billion yuan capital increase and stock expansion project

On December 17, China Huaneng Group Co., Ltd. and five companies including China Guoxin, China Post, China Taiping, the National Green Development Fund, and China Southern Power Grid signed a capital increase agreement for Huaneng Renewable Energy Co., Ltd. at the group headquarters. According to the agreement, five shareholders of Guoxin Development, China Post Insurance, Taiping Life Insurance, China Green Development Fund, and Southern Grid Energy will jointly invest 15 billion yuan to increase capital to Huaneng New Energy Company. According to reports, this is the largest equity financing in the history of China's Huaneng.

Guolian Securities (01456): Major asset restructuring matters were reviewed and approved by the M&A and Restructuring Commission

Guolian Securities announced in the evening that the company plans to issue A-shares to purchase 99.26% of Minsheng Securities shares and raise supporting capital. This transaction constitutes a major asset restructuring. The merger, acquisition and restructuring committee of the Shanghai Stock Exchange held a review meeting on December 17 to review the company's application for this transaction. The review results were that the transaction met the restructuring conditions and information disclosure requirements.

Midland Group (01200) made a profit. It is expected that the net profit attributable to equity holders will turn a year-on-year loss into a profit

Zhitong Finance App News, Midland Group (01200) issued an announcement. According to a preliminary review of the Group's unaudited comprehensive management accounts for the 11 months ended November 30, 2024, it obtained profit before tax of more than HK$0.35 billion and net profit attributable to equity holders of more than HK$0.3 billion. According to the Group's current data, the net loss attributable to equity holders for the year ended 31 December 2023 is approximately HK$42 million. The net profit attributable to equity holders will be obtained during the year.

Tianjin Chuangye Environmental Protection Co., Ltd. (01065) plans to acquire Zhang Guizhuang Reclaimed Water Plant project assets for 0.218 billion yuan

According to Zhitong Finance App, Tianjin Chuangye Environmental Protection Co., Ltd. (01065) issued an announcement. On December 17, 2024, the board of directors deliberated and passed a bill on entering into an asset transfer agreement between China Water Company (a wholly-owned subsidiary of the company) and Tianjin City Investment on the Zhangguizhuang Reclaimed Water Plant project. According to the asset transfer agreement, the company conditionally agreed to the acquisition, while Tianjin City Investment conditionally agreed to sell and transfer the assets at a cost of RMB 0.218 billion.

IMMUNEONCO-B (01541): IMM0306 completed the first patient administration in the IB phase clinical trial to treat optic nerve creatitis spectrum disease

According to Zhitong Finance App News, Yiming Angko-B (01541) announced that the phase Ib clinical trial of IMM0306 (an original novel drug bispecific antibody targeting CD47xCD20) to treat optic nerve spinal cord disease (NMOSD) successfully completed the first patient administration, and no adverse events were reported.

Ping An Asset Management increased its holdings of ICBC (01398) by 28.664 million shares at a price of approximately HK$4.80 per share

The Zhitong Finance App learned that according to the latest data from the Hong Kong Stock Exchange, Ping An Asset Management increased its holdings of ICBC (01398) by 28.664 million shares on December 13, at a price of HK$4.7987 per share, for a total amount of about HK$0.138 billion. After the increase in holdings, the latest number of shares held was approximately 13.911 billion shares, and the latest shareholding ratio was 16.02%.

[Individual stock prices are clear]

Hongqiao, China (01378): Prices of aluminum products are rising, and net profit is expected to increase by about 95% year-on-year in 2024

Benefiting from favorable factors such as rising prices of aluminum products, the Group's net profit for the year ended December 31, 2024 is expected to increase by about 95% compared with the same period in 2023.