Hot Spotlight //
1. The Premier of the State Council recently signed an order of the State Council promulgating the Regulations on the Administration of Rare Earths, which will come into force on October 1, 2024. There are 32 articles in the "Regulations", the main contents include: strengthening the protection of rare earth resources, making it clear that rare earth resources belong to the state, and no organization or individual may encroach on or destroy rare earth resources, and the state shall implement protective mining of rare earth resources; Improve the rare earth management system, and stipulate the responsibilities of the relevant departments of the State Council such as industry and information technology and natural resources in the management of rare earths; Promote the high-quality development of the rare earth industry, clarify the country's unified plan for the development of the rare earth industry, and encourage and support the research and development and application of new technologies, new processes, new products, new materials and new equipment in the rare earth industry; Improve the supervision system of the whole rare earth industry chain, stipulate the total regulation and control of rare earth mining and rare earth smelting and separation, and optimize dynamic management.
Macro//
1. On June 28, witnessed by the heads of state of China and Peru, Zheng Shajie, Director of the National Development and Reform Commission, signed two cooperation documents with relevant departments of Peru on the establishment of a strategic dialogue mechanism for economic cooperation and the strengthening of digital economy cooperation.
2. On June 29, the mainland successfully launched the Zhongxing-3A satellite using the Long March-7 carrier rocket at the Wenchang Space Launch Site, and the satellite successfully entered the predetermined orbit, and the launch mission was a complete success. The satellite is a communication and broadcasting satellite, which can provide users with voice, data, radio and television transmission services.
3. Zhao Chenxin, Deputy Director of the National Development and Reform Commission, and Ilyichov, Deputy Minister of Economic Development of Russia, co-chaired the 19th meeting of the Secretary-General of the China-Russia Investment Cooperation Committee in the form of video to prepare for the 11th meeting of the China-Russia Investment Cooperation Committee to be held within the year.
4. Chen Weimin, Deputy Chief Executive of the Hong Kong Monetary Authority, said at the 6th Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum that on June 28, the HKMA announced that credit bureaus in Hong Kong and Shenzhen would cooperate to successfully pilot cross-border credit interconnection business, allowing Hong Kong banks to obtain credit information related to the mainland business of small and medium-sized enterprises transmitted in the southbound and provide loans to these enterprises.
Domestic Stock Market //
1. Wind data shows that in the first half of 2024, there were 119 full-caliber fundraising events in the Chinese mainland stock market, including IPOs, additional issuances and convertible bonds, and CITIC Securities topped the list of underwriting amounts with a total underwriting amount of 28.2 billion yuan, with 24 underwriting cases; Huatai Securities ranked second with an underwriting amount of 19.5 billion yuan, with 11 underwritings; CICC ranked third with an underwriting amount of 14.6 billion yuan, with 15 underwritings.
2. Wind data shows that in the first half of 2024, the main indices of the A-share market were mixed. The Shanghai Composite 50 Index was the strongest performer, up 2.95% in the first half of the year, and the CSI 300 recorded a gain, with a cumulative gain of 0.89%. Overall, in the first half of the year, the value style of the A-share market was more resilient, showing the characteristics of "the large market is better than the small market, and the value is better than the growth". This is also reflected in the popular concept of the market. In the first half of 2024, high-dividend assets performed well, and the policy support sector was repeatedly active, and the coal, equipment renewal, shipping, power, and banking directions of central enterprises were favored by the market, and the gains were among the highest.
3. Wind recently released the list of "Top 500 Listed Companies in China by Market Capitalization" in the first half of 2024, with Tencent Holdings, Industrial and Commercial Bank of China, and Kweichow Moutai ranking among the top three in terms of market capitalization, and the top ten companies ranking relatively stable. In the first half of 2024, a total of 11 companies will have a market value of more than 1 trillion yuan, an increase of 1 from the first quarter of 2024, of which Tencent Holdings will have a market value of more than 3 trillion yuan, significantly ahead of other companies. In the first half of 2024, a total of 33 new faces will be among the top 500 in terms of market capitalization, among which SenseTime-W, Brilliance Auto, U.S.-China Jiahe, Minmetals Resources, AVIC Heavy Machinery and other companies will increase by more than 200 in market capitalization.
4. Wind data shows that in the first half of the year, a total of 94 IPOs were completed in the global market of Chinese-funded enterprises, a decrease of 136 from the same period in 2023 and 100 from the second half of 2023. The total global IPO fundraising scale of Chinese enterprises was about 57.460 billion yuan, down 75.84% from the same period in 2023 and 66.25% from the second half of 2023.
5. With the end of the market in the first half of the year, how to lay out the A-share market in the second half of the year and what are the main lines have become a topic of concern for investors. Many industry insiders believe that in the second half of the year, it is recommended to continue to grasp the main line of high dividend assets, and high dividend assets with monopoly and scarcity may be more able to obtain long-term excess returns in the future. At the same time, opportunities in AI-related fields and industrial chains can be explored around the growth direction, and the STAR 50 Index is also worth paying attention to in the second half of the year.
6. In July 2024, the gold stocks of brokerages will be released one after another, and on June 28, 6 brokerages will announce the list of gold stocks. Up to now, 9 brokerages have announced the list of gold stocks, with a total of 80 recommendations, involving a total of 65 A-shares, including 51 on the main board, 11 on the Growth Enterprise Market and 3 on the Science and Technology Innovation Board. From the perspective of popular gold stocks, CNOOC, Wen's shares, and CATL are the most popular, and have been recommended by brokerages 4 times, 3 times, and 3 times respectively.
7. The data shows that the performance of the major mainstream indices in the first half of the year was different, with weak operation, falling more and rising less. The dividend index, CSI 300, SSE 50, CSI 100 and other indices rose, especially the dividend index rose by 11.29%, but the performance of the Science and Technology Innovation 50 and ChiNext Index was gloomy.
8. As of the close of trading on June 28, the Wind photovoltaic index fell to 2497.59, down 16.29% in the past 20 days, and has fallen 30.04% since the beginning of this year, and the photovoltaic sector has hit a new low in the past three years.
9. With the successive implementation of the dividend plans of listed banks, bank stocks have strengthened against the trend. Market participants said that the overall dividend distribution of shareholders of listed banks is relatively large, accounting for a relatively high proportion, and many banks have also increased their mid-year dividends this year to give back to shareholders. At present, the overall valuation of bank stocks is low, and shareholders increase their shareholdings, which will help attract investment from market investors and promote the valuation of bank stocks to return to a reasonable range.
10. After Huabao Securities withdrew its IPO application, the Shanghai and Shenzhen Stock Exchanges only left 5 brokerages that would impact the listing: Hualong Securities, Caixin Securities, Bohai Securities, Dongguan Securities and Kaiyuan Securities, of which the other 4 were in a "suspended" state except for Bohai Securities, which was "inquired".
11. Many leading Chinese medicine companies are expanding their business layout to non-traditional Chinese medicine fields. Yunnan Baiyao intends to introduce patents related to the antibody drug KA-1641, and will conduct research and development, production and commercialization activities for the product on a global scale. In addition, Pien Tze Huang, Tasly, Yiling Pharmaceutical, and China Resources Sanjiu are also extending and expanding into the field of chemical and biological drugs.
12、Tencent DNF mobile game is removed from the shelves in some Android channels,According to people close to Tencent Games,"The two sides just collapsed", but what is the specific reason,There is no clear answer yet。 Goldman Sachs, Morgan Stanley and many other institutions estimate that the total revenue of DNF mobile games in the first year is expected to exceed 10 billion yuan, so the 50% share is a huge income for Tencent and mobile phone manufacturers.
13. Saudi Aramco announced that it has signed a definitive agreement with HORSE Powertrain Limited, a powertrain technology company jointly established by Renault Group, Zhejiang Geely Holding Group and Geely Automobile Holding Co., Ltd., to acquire a 10% stake in it.
14. Tong Ren Tang Group, which has a brand history of more than 350 years, is sprinting for a Hong Kong stock IPO. From the perspective of income structure, Beijing Tong Ren Tang Traditional Chinese Medicine Hospital and Sanxitang Health Care Center contribute most of the income of Tong Ren Tang Medical Care.
15. Recently, 26 storage tank pressure vessels of the Pakistan EPRF refinery upgrading project undertaken by Bluestone Heavy Equipment Refining and Chemical Branch have successfully passed the acceptance and have been shipped out of the factory. This is following the completion of 29 core refining equipment of the EPRF refinery project in Pakistan in 2023, Bluestone Heavy Equipment has once again cooperated with the project to develop the rest of the equipment of the project.
16. Fan Tianning, director of marketing management of China Resources Land Co., Ltd. in East China, is suspected of serious violations of duty and is currently under supervision and investigation by the Supervision Commission of Jing'an District, Shanghai.
17. According to the announcement of the Anhui Provincial Pharmaceutical Centralized Procurement Platform, the price reduction varieties of Beijing Sinovac, Jiangsu Jindike, Hualan Biotechnology and Sinopharm Group all cover quadrivalent influenza virus split vaccines, and the prices of many vaccines have dropped to less than 100 yuan.
18. The first domestically produced LNG immersion combustion gasifier developed by the Southwest Branch of CNPC Engineering Construction Company, a member of CNPC, was successfully put into operation in Huanggang Liquefied Natural Gas (LNG) Plant in Hubei Province.
19. Shanghai Stock Exchange: terminated the review of the initial public offering of shares of Wuhan Changli New Material Technology Co., Ltd. and its listing on the main board, and terminated the review of the initial public offering of shares of Changfeng Pharmaceutical Co., Ltd. and its listing on the Science and Technology Innovation Board.
20. Recently, BYD's first store in Jamaica was officially opened, marking another important milestone in BYD's development in the American market.
21. Dongfang Selection issued a statement: It has never asked the government for publicity fees, and it insists on not charging so-called pit fees to any enterprises and businesses.
Finance//
1. In the first half of 2024, the A-share market will be volatile and bottoming out, with the Wind All A Index falling by 5.32%. Affected by the A-share market, equity funds weakened, and the Wind Partial Equity Mixed Fund Index fell slightly by 2.26% in the second quarter. However, there is still no shortage of hot spots in the A-share market, with the Wind Low Volatility Dividend Index rising 3.54% in the second quarter and 27.13% in the past three years. Driven by the dividend concept market, dividend funds performed well. Among them, the Golden Eagle dividend value A has earned 46.88% in the past three years. The domestic monetary policy environment remained accommodative, and the performance of pure bond funds was outstanding. Wind Short-term Pure Bond Fund Index and Wind Medium and Long-term Pure Bond Fund Index rose 0.8% and 1.16% respectively in the second quarter, and increased by 9.13% and 10.77% respectively in the past three years.
2. Throughout the first half of this year, although the trend of A-shares was differentiated, the main funds accelerated their entry into the market. In the first half of the year, the total net inflow of equity ETFs, commodity ETFs and cross-border ETFs in Shanghai and Shenzhen was about 436 billion yuan.
3. Recently, as the long-end and ultra-long-term interest rates continue to fall, medium- and long-term bond funds continue to strengthen, and many medium- and long-term pure bond funds have yielded more than 5% this year, and the annualized rate of return has exceeded 10%, and the highest even reached 15%.
4. The Audit Office issued an audit report pointing out that there are problems such as false credit data and deviation from the positioning of serving the real economy in the audit of state-owned assets of financial enterprises, of which 516.7 billion yuan belongs to the form of "loan and collection". At present, the reason why some commercial banks' credit data is false is mainly because they want to "achieve" internal and external assessment targets to cover up the idling of funds, which affects the quality and efficiency of financial support for the real economy, and may also set false premises for macroeconomic decision-making.
5. Some banks chose to lower the deposit interest rate at the end of the half-year period, and some banks lowered the three-year savings deposit interest rate to 2.4%. Even though interest rates have fallen again and again, there are still many customers who choose to deposit. A bank account manager bluntly said: "Even if you deposit 100 million, the interest rate is 2.6%, and the deposit situation is different from the past." ”
6. At the 6th Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum held in Shenzhen, Yu Bin, Deputy Director of the Development Research Center of the State Council, emphasized that Chinese-style modernization requires high-quality financial development, and at the same time it is necessary to balance financial supervision and innovation. Li Dongrong, former deputy governor of the People's Bank of China, said that the Greater Bay Area should bear more of the country's financial strategic needs. The President of the Monetary Authority of Macao, Chan Sau Shun, emphasized Macao's role in the development of financial diversification.
7. China Canada Fund announced that fund manager Yan Peixian stepped down as the fund manager of 5 products "due to personal reasons", plus other products that had been resigned before, Yan Peixian no longer has any funds under management. According to the announcement, Yan Peixian has gone through the cancellation procedures with the Asset Management Association in accordance with the regulations.
8. Since the beginning of this year, there are two main types of equity changes in the securities industry: one is the absorption and reorganization of securities companies among the same industry; The second is that shareholders with state-owned assets are settled in securities firms. At present, the actual controller or major shareholder of most listed securities firms has a state-owned background.
Housing//
1. Data from the China Index Research Institute also shows that from June 1 to June 25, 5,469 first-hand houses were sold in Guangzhou, which was the best month this year. Compared to the same period last year, the volume increased by 14.3%, and the average daily volume increased by 31.5% compared to May.
2. China Overseas Real Estate received 16.6 billion yuan in one day, and in the current market, the single-day sales can almost be said to be a "miracle". At the end of June this year, under the name of Jiuxu, China Overseas Real Estate launched top luxury projects in Beijing, Shanghai, Shenzhen and Nanjing. Shenzhen and Shanghai ended yesterday's house selection, and Beijing Zhonghai Jinghua Jiuxu and Nanjing Zhonghai Jiangnan Jiuxu are also about to open for sale.
3. The 13th auction in Wuhan, Hubei Province ended. A total of 13 real estate land transactions were made, with a transaction amount of 7.673 billion yuan, a land area of 1,178,400 square meters, and a planned construction area of 2,163,500 square meters.
Industry//
1. The State Administration for Market Regulation issued a notice on accelerating the renewal of special equipment. Support the installation of elevators in existing residences, encourage the introduction of new models of professional elevator use and management in the residential field, and promote the renewal of hoisting machinery and special motor vehicles in the field (factory). Focusing on metallurgical cranes, mechanical parking equipment and high-level lifting machinery, etc., the equipment and its important parts will be updated in an orderly manner; Support the intelligent transformation of lifting machinery used in harsh environmental places in steel, metallurgy, cement and other industries.
2. Cui Dongshu of the Passenger Association: The number of public piles in May 2024 increased by 72,900 compared with the previous month, an increase of 23% faster than the same period last year; The annual increase of public piles was 320,000, a year-on-year growth rate of 13%. The number of private piles with vehicles increased by 238,000 from the previous month, faster than the growth rate of 206,000 in May 2023 by 16%; The annual increase of private piles was 1 million, a year-on-year growth rate of 17%. The charging volume of the male pile was 414,000 kWh, an increase of 274,000 kWh over the same period, and the average monthly charging of a single pile was 1,358 kWh, which was basically the same as last year.
3. Guangzhou Municipal Government and China Guoxin signed a strategic cooperation agreement. As the first 10 billion yuan fund under the strategic partnership between the Guangzhou Municipal Government and China Guoxin, the Guangzhou Development District Investment Group cooperated with China Guoxin and Guangzhou Industrial Investment Group to promote the implementation of the industrial fund with a total scale of 10 billion yuan on behalf of the Guangzhou Development District.
4. Up to now, among the 43 cities in Chinese mainland that have opened and operated subways, 28 of them belong to metro companies or rail transit groups that have announced their 2023 financial reports. According to the financial report data, the total debt of 28 enterprises is as high as 4.37 trillion yuan, of which 20 companies have a debt ratio of more than 60%. The construction cost of the subway is high, and the problem of insufficient operating revenue to offset expenditure has existed for a long time, and sustainable development is facing great challenges.
5. In recent years, the domestic high-performance magnetic resonance imager completely independently developed by Continental has not only been mass-produced and marketed, but also quickly occupied a large market share. At present, the number of talents in Shenzhen has exceeded 6.79 million, 25,000 high-level talents, and more than 200,000 returnees.
6. According to the report, China's FMCG sales will increase by 2.4% in 2023, while the average selling price will change by 0% year-on-year. Heading into the first quarter of 2024, China's FMCG sales grew by 2%, but the average selling price fell by 1.5%.
7. China's export container transportation market performed well this week, with the freight rates of most ocean routes continuing to rise, and the composite index continuing to rise, but the freight rates of some routes fell from a high level. On June 28, the Shanghai Export Container Comprehensive Freight Index released by the Shanghai Shipping Exchange was 3714.32 points, up 6.9% from the previous period.
8. The "2023 China Lithium Battery Industry Development Index (Suining Index)" pointed out that China is about to enter a period of growth in lithium battery retirement, and it is expected that by 2030, the scale of the lithium battery recycling market is expected to exceed 100 billion yuan, with an average annual growth rate of 26%, and the recycling volume of waste lithium batteries will exceed 1 million tons, equivalent to about 5 times that of 2022. At present, the scarcity of lithium batteries, nickel, cobalt, manganese, copper, aluminum and other metal resources has intensified, driving the rapid growth of battery recycling.
Overseas-
1. Vietnam's GDP in the second quarter increased by 6.93% year-on-year, estimated at 6.00%; Vietnam's CPI in June was 4.34% y/y, with an expected 4.45% and a previous value of 4.44%.
International Stock Market //
1. At the end of the first half of 2024, driven by the AI boom, the Nasdaq, which is dominated by technology stocks, led the major stock indexes, rising by 18.1% cumulatively; The S&P 500 rose 14.6% over the same period; The Dow lagged, rising just 3.8% cumulatively. Chip stocks are the big winners, among which Nvidia leads the market with a half-year increase of 1.5 times.
2. EU antitrust authorities said they would seek more regulatory scrutiny of Microsoft's partnership with OpenAI and Google's deal with Samsung in the field of artificial intelligence.
3. Ford Motor CEO Jim Farley said at the Aspen Festival of Thought that a $30,000 all-electric car is expected to be launched and that the car will be profitable in about two and a half years.
4. According to people familiar with the matter, Boeing is in talks with the U.S. Department of Justice to reach a settlement on charges that may have been raised by the two fatal crashes of the Boeing 737 Max airliner. The settlement, which could be announced as early as next week, is expected to include corporate oversight of the world's second-largest aircraft maker.
Bond//
1. Wind data shows that as of June 28, 2024, the total stock of Chinese mainland's bond market reached 163.75 trillion yuan, an increase of 8.04 trillion yuan from the beginning of the year. In the first half of 2024, Chinese mainland bond issuance continued to grow, with a total of 38.3 trillion yuan of various types of bond issuance, a year-on-year increase of 10%. The issuance of interest rate bonds reached 12.2 trillion yuan, a decrease of 1% from last year, and its Chinese bonds increased by 29% year-on-year, local government bonds decreased by 20% year-on-year, and policy bank bonds decreased by 17% year-on-year. The issuance of credit bonds was 9.7 trillion yuan, an increase of 3% over last year. The cumulative issuance of interbank certificates of deposit was 16.3 trillion yuan, a year-on-year increase of 27%.
2. Wind data shows that in the first half of 2024, there will be 813 new issuance projects in the ABS market, with an issuance scale of 767 billion yuan, a decrease of 11% from the same period last year. Among them, 86 new credit ABS projects were issued, with a total issuance value of RMB124.3 billion, a decrease of 19% from the same period last year. From the perspective of underlying assets, personal auto loans were issued the most, with 13 issuances, totaling 56.4 billion yuan; Micro and micro enterprise loans were the second, with 6 issuances totaling 32.6 billion yuan.
3. Barclays strategists said they were buying inflation-protected assets in preparation for Trump's victory. The simple trade was a bet that the 5-year Inflation-Protected Bond (TIPS) would outperform the regular 5-year Treasuries, causing the yield spread between the two to widen. Barclays forecasts that the breakeven ratio, which represents the market's implied expectation of average inflation over the maturity of bonds, will widen to 2.5% from around 2.25% currently.
Review of historical articles
Witness History! The State Council, the China Securities Regulatory Commission, and the Exchange made a blockbuster shot", "Shenzhen, Beijing and other places collectively shot", "Gold suddenly dived! Two major negative effects have become an important fuse", "Throughout the 50-year history of the Federal Reserve's interest rate cuts, this time is the most unusual", "Beijing, Shenzhen, Nanjing property market has big news again"
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