[Today's headlines]

China Securities Regulatory Commission: “Release all disadvantages before January 15” and “insurance companies redeem public funds in large amounts” are all rumors

Q: There are market rumors today. The regulatory authorities are instructing listed companies to release all losses before January 15, and insurance companies to redeem public funds in large amounts. What does the Securities Regulatory Commission think? A: This information is all rumor. I have already paid attention to relevant disinformation, arranged to investigate sources in accordance with the law, and will strictly crack down on fabricating and spreading stock market rumors in accordance with the law, and continue to clean up the capital market information dissemination environment.

[General outlook]

In 2025, the three major US stock indices “got off to a bad start”, S&P and NASDAQ recorded five consecutive daily declines

Overnight, the US stock Dow Jones Industrial Average fell 151.95 points from the previous trading day, or 0.36%; the S&P 500 stock index fell 13.08 points to close at 5868.55 points, or 0.22%; and the Nasdaq Composite Index fell 30.00 points, to close at 19280.79 points, or 0.16%. Major technology stocks had mixed ups and downs. Tesla fell more than 6%, and its fourth-quarter delivery volume fell below expectations; Apple fell 2.62%, the biggest one-day decline since October last year; popular Chinese securities had mixed ups and downs, and the Nasdaq China Golden Dragon Index fell 1.51%. Extreme Krypton and New Oriental fell by more than 4%; Vipshop, Weibo, and Xiaopeng Motors fell more than 2%; NIO rose more than 4%, and Jinshan Yun rose more than 2%. The Hang Seng Index ADR declined. On a pro rata basis, it closed at 19621.74, down 1.58 points or 0.01% from the Hong Kong closing.

[Hot Topics Preview]

The State Drug Administration approved the launch of China's first stem cell therapy drug

The State Drug Administration approved the marketing of China's first stem cell treatment drug, emimetoxel injection through a priority review and approval procedure, to treat acute graft-versus-host disease in patients aged 14 and over, where hormone therapy fails, mainly gastrointestinal involvement. According to reports, graft-versus-host disease is one of the main complications after allogeneic hematopoietic stem cell transplantation, and may cause death in severe cases. The drug is marketed as a prescription drug and will be used in hospitals to treat corresponding diseases according to doctor's prescriptions to provide patients with new treatment options. Hong Kong stock companies involved in hematopoietic stem cells include: Fosun Pharmaceutical (02196) and Shanghai Pharmaceutical (02607).

HSBC strategist Kettner expects risk asset trading to fluctuate in January

HSBC strategists say concerns about continued inflation and increased bond supply may cause market fluctuations in the coming weeks, leading to a further weakening of risk assets. Max Kettner's team said that stocks or credit bonds have yet to be absorbed by dips, and they are waiting for popularity and position indicators to send weak buying signals. They maintained their expectations for a “Goldilocks” scenario in the first half of 2025, as fundamentals remained stable.

China's smartphone production increased 9.3% year-on-year in the first 11 months of 2024

According to the latest data released by the Ministry of Industry and Information Technology, production in China's electronic information manufacturing industry grew rapidly from January to November 2024, and the value added of the electronic information manufacturing industry above scale increased by 12.2% year-on-year. Among the main products, mobile phone production was 1.504 billion units, up 8.9% year on year, of which smartphone production was 1.117 billion units, up 9.3% year on year. The data shows that from January to November 2024, the large-scale electronic information manufacturing industry achieved operating income of 14.45 trillion yuan, an increase of 7.2% over the previous year; the total profit was 565.3 billion yuan, an increase of 2.9% over the previous year, and the efficiency was stable and improving.

Ministry of Industry and Information Technology solicits comments: New energy vehicles give 1.2 times credit incentives for low temperature battery life attenuation rates of less than 35%

The Ministry of Industry and Information Technology publicly solicited opinions on the “Requirements for the 2026-2027 Average Fuel Consumption of Passenger Vehicle Companies and the Management of New Energy Vehicle Credits”. Optimize and adjust technical specification requirements for new energy models. Take into account technological progress, standard updates, etc., and raise requirements appropriately. In terms of pure electric models, the first is to optimize electricity consumption assessment requirements. Given that GB 36980.1 “Electric Vehicle Energy Consumption Limits Part 1: Passenger Vehicles” has set electricity consumption threshold requirements for models, in order to strengthen policy standard collaboration, consider 85% of the standard limit as the target electricity consumption value. For models that do not meet the standard limit, the power consumption adjustment factor is calculated as 0.5; models superior to the target value are calculated based on the ratio between the target value and the actual value, and the maximum calculation is 1.2 times; models above the limit but not meeting the target value are calculated by 1 times. Second, a low temperature battery life attenuation coefficient has been added. In order to guide industry enterprises to continuously improve the low temperature resistance of NEV products, maintain coordination with vehicle purchase tax reduction policies, and give 1.2 times credit incentives to those with a low temperature battery life reduction rate of less than 35%. In terms of plug-in hybrid models, in order to improve the energy efficiency of the product and support green and low-carbon consumption, the fuel consumption requirements in the power maintenance mode were tightened from 70% of the fuel consumption limit to 60%, and the electricity consumption requirement in the electricity consumption mode was tightened from 135% of the target power consumption value to 130% of the electricity consumption limit. In terms of fuel cell models, it is consistent with policy requirements such as vehicle purchase tax exemptions, and increases requirements such as fuel cell stacks, system rated power, and starting temperature.

Optimize and adjust technical specification requirements for new energy models. Increase the reward margin for fuel-efficient models. Considering objective circumstances such as stricter fuel consumption targets in the sixth phase and the increasing difficulty for enterprises to meet the standards, the accounting multiplier for fuel-efficient bicycles was reduced to 0.1 times in the 2026 and 2027 NEV credit value accounting, to support enterprises to continuously improve the level of energy-saving technology. Continue to implement accounting benefits for small businesses. Based on the opinions of industry companies, the current level of preferential treatment will continue to be maintained in 2026 and 2027. Fuel consumption accounting concessions will continue to be given to off-cycle energy-saving technology, and the technical catalogue will be updated in line with standard revisions to continue to guide enterprises to increase the application of energy-saving technology.

Alibaba-W (09988) still has a repurchase amount of US$20.7 billion under the share repurchase plan as of 2024

According to the Zhitong Finance App, Alibaba-W (09988) announced that during the quarter ended December 31, 2024, the Group repurchased a total of 0.119 billion common shares (equivalent to 15 million American Depositary Shares) at a total price of 1.3 billion US dollars. These repurchases are carried out in the US market in accordance with the Group's share repurchase plan.

Cathay Pacific Junan won the bid for the second batch of convenient swap operations by the central bank

The reporter learned that Guotai Junan once again won the bid for the second batch of convenient interchange operations by the central bank. The bid rate for the operation was 10 bps. All of those that were exchanged were central bank notes, and the winning bid amount was much higher than the previous one. Guotai Junan was one of the first institutions approved to participate in the “Securities, Fund, and Insurance Company Exchange Facilitate” operation, and completed transactions to increase A-share holdings during the initial operation, including the first batch of treasury bond swaps in the entire market and the first batch of treasury bond pledged repurchase transactions in the entire market under the Facilitated Exchange Program. Guotai Jun An said that it will make full use of convenient exchange tools, give full play to the professional advantages of securities companies, and actively fulfill the social responsibilities of financial institutions.

Construction of the world's largest compressed air energy storage power plant begins

On January 2, the reporter learned from China Huaneng Group Co., Ltd., that construction of Huaneng's Jintan Salt Cave compressed air energy storage and power generation phase II project officially began in Changzhou, Jiangsu a few days ago. After completion, it will become the world's most stand-alone compressed air energy storage power plant with the largest total capacity and the highest comprehensive efficiency. It involves the Hong Kong stock Huaneng International Power Co., Ltd. (00902).

In 2025, the Beijing Land Market ushered in the first sale of two unrestricted plots in Haidian District that raised more than 18.1 billion dollars

The Beijing Land Auction Market ushered in the Haidian “Wang Bang” group in 2025. They are the HD-0803-0029 and 0030 plots in the second phase of the Zhufangcun shed renovation. The total starting price for the two unrestricted plots was 15.03 billion yuan, and the final transaction price was 18.1924 billion yuan, with an average premium rate of 21.04%. Among them, the 0029 plot was contested by China Resources, China Railway Real Estate and Investment Promotion Consortium after 161 rounds of licensing. The transaction price was 9.152 billion yuan, the premium rate was 17.33%, and the floor price was 89,234 yuan/square meter. After 244 rounds of listing, the 0030 plot was acquired by C&D at a price of 9.0404 billion yuan. The premium rate was 25.04%, and the transaction price was 95047 yuan/square meter.

IPO News | Damo expects Ningde Era (300750.SZ) to go public in Hong Kong to raise up to HK$60 billion to challenge Hong Kong's top ten IPOs

The Zhitong Finance App learned that recently, Ningde Times (300750.SZ) announced that it plans to issue foreign shares listed overseas and apply for listing on the main board of the Hong Kong Stock Exchange. The number of Hong Kong shares issued this time is no more than 5% of the total share capital of the company after issuance, and there is an over-allotment right of no more than 15% of the number of Hong Kong shares issued. Referring to companies that have recently completed the dual listing of H shares, Morgan Stanley has an average discount of 10% to 20% compared to A-share prices. It is estimated that the amount of capital raised during the Ningde Era Hong Kong IPO will reach 6.8 billion to 7.7 billion US dollars (equivalent to HK$52.9 billion to HK$59.8 billion).

[Individual stock prices are clear]

ZHAOKE OPHTH-B (06622): The State Drug Administration accepted a simplified new drug application for NVK002 to treat deepening myopia in children

According to the Zhitong Finance App, ZHAOKE OPHTH-B (06622) issued an announcement. China's State Drug Administration has accepted a simplified new drug application for NVK002 (low dose atropine 0.01%), which is one of the company's core products and is used to treat deepening myopia in children.

Zhaoke Ophthalmology announced the positive top-line results of the phase III clinical trial of TAB014 (one of the company's core drug candidates) for (neovascularization) senile macular disease (wAMd). The clinical trial successfully reached a primary endpoint and a critical secondary endpoint.

The phase III clinical trial of TAB014 was a randomized, double blind, and non-inferior study. The main goal was to evaluate changes in the baseline value of optimal corrected vision (BCVA) in the 52nd week of the target group receiving TAB014 compared to the target group receiving LucentiS treatment. The study involved about 57 centers and included 488 patients. Professor Chen Youxin of Peking Union Medical College Hospital was the lead researcher.

WaMD is the main cause of vision loss among people aged 50 and over in China and around the world. It is estimated that the scale of wAMd drugs in the Chinese market will grow from 0.242 billion US dollars in 2019 to about 3.5 billion US dollars in 2030, with a compound annual growth rate of 27.5%. TAB014 is the first antibody in clinical development in China, and it is expected that this treatment will be cost-effective. According to the announcement, according to the supplementary agreement between the company and Dongyao Pharmaceutical Co., Ltd., Zhaoke (Guangzhou) Ophthalmic Pharmaceutical Co., Ltd. will have full control over the clinical trial of TAB014 and the final decision on the development and commercialization of TAB014 in China, Hong Kong and Macau. Dongyao Suzhou will continue to be responsible for the production of TAB014. The company reminds shareholders and potential investors that there is no guarantee that TAB014 will eventually be successfully commercialized, and it is recommended to be cautious when trading the company's shares.