Important News Alert
The National Committee of the Chinese People's Political Consultative Conference (CPPCC) held a symposium on the analysis of the macroeconomic situation in the first half of 2024 The loan market prime rate (LPR) quotation was released in July: the 1-year and 5-year interest rates were both lowered by 10 basis points
Tip of the day
Today, the central bank has 676 billion yuan of reverse repurchase due.
The number of shares issued by Boshi today is 22.2527 million shares, and the plan to raise funds is 2.51 billion yuan, which is the new stock that plans to raise the most funds this year. The upper limit of its online issuance subscription is 5,000 shares, and the top grid subscription needs to be matched with a market value of 50,000 yuan in Shenzhen.
The 5th World Photonics Congress 2024 will be held on July 23-26, 2024 at the China National Convention Center in Beijing.
Financial news
1. According to the news on the website of the People's Bank of China on July 22, in order to optimize the open market operation mechanism, from now on, the 7-day reverse repurchase operation in the open market will be adjusted to a fixed interest rate and quantity bidding. At the same time, in order to further strengthen counter-cyclical adjustment and increase financial support for the real economy, from now on, the interest rate of 7-day reverse repo operation in the open market will be adjusted from the previous 1.80% to 1.70%.
The interest rate for 7-day repo operations in the open market has been lowered to 1.7% from 1.8% in the previous session, which is the first adjustment since August 2023. Experts said that the reduction of the policy rate is expected to be gradually transmitted to the real economy through the financial market, promoting the reduction of comprehensive financing costs, consolidating the positive trend of economic recovery, and breaking the negative cycle of declining long-term bond yields and weakening expectations.
The People's Bank of China website reported on July 22 that the People's Bank of China authorized the National Interbank Lending Center to announce that the loan market quotation rate (LPR) on July 22, 2024 is: 1-year LPR is 3.35%, LPR over 5 years is 3.85%, both down 10 basis points from the previous month.
Since the beginning of this year, the LPR of more than 5 years has fallen by 35 basis points, and existing mortgage borrowers will also enjoy the benefits of the LPR decline after the next repricing date, reducing the interest burden and enhancing their spending power. According to the estimation of the mortgage principal of 1 million yuan, 30 years, and equal principal and interest, the monthly interest expense can be saved by about 200 yuan, and the total interest can be saved by more than 70,000 yuan.
According to the website of the People's Bank of China on July 22, the interest rate of the standing lending facility has been lowered since July 22, and the overnight, 7-day and 1-month maturity varieties have been reduced to 2.55%, 2.7% and 3.05% respectively, all of which have been reduced by 10 basis points.
The Standing Lending Facility is the normal liquidity supply channel of the People's Bank of China, and its main function is to meet the large liquidity needs of financial institutions with long maturities. The targets are mainly policy banks and national commercial banks. The level of interest rates is determined comprehensively according to the needs of monetary policy regulation and control and guiding market interest rates. The Standing Lending Facility is disbursed on the basis of collateral.
2. According to Xinhua News Agency, the National Committee of the Chinese People's Political Consultative Conference (CPPCC) held a symposium on macroeconomic situation analysis in the first half of 2024 in Beijing. Members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and experts delivered speeches, focusing on deepening the reform of market-oriented allocation of factors, promoting the deep integration of scientific and technological innovation and industrial innovation, promoting the development of artificial intelligence, giving full play to the innovation advantages of state-owned central enterprises, promoting the high-quality development of the private economy, expanding domestic demand, stabilizing taxes and prices, and promoting the high-quality development of finance and trade.
3. The National Development and Reform Commission and other five departments issued guidance on accelerating the development of water-saving industries. The opinions put forward to support enterprises to increase R&D, design and production, build a water-saving product and equipment supply system from basic raw materials to terminal consumer goods, and promote the digital, intelligent and green development of water-saving product equipment manufacturing. Regularly publish the "National Mature and Applicable Water-Saving Technology Promotion Catalogue" and the "Catalogue of Industrial Water-saving Processes, Technologies and Equipment Encouraged by the State", formulate the national water-saving product certification catalogue and incorporate it into the green product certification and labeling system. Promote advanced water-saving equipment and products, promote large-scale water-saving equipment renewal and consumer goods trade-in, and accelerate the elimination of outdated water-using products and equipment.
4. Liu Liehong, director of the National Data Bureau, said at a press conference held by the State Council Information Office on July 22 that to promote the reform of the market-oriented allocation of data elements and effectively release the vitality of data, it is necessary to establish and improve the basic data system; It is necessary to pay attention to the spirit of grassroots initiative and promote the construction of data infrastructure; It is necessary to adhere to the problem-oriented approach and break the bottleneck constraints of data development and utilization; It is necessary to stimulate and enhance social vitality and strengthen the big data industry.
5. According to data from the Ministry of Finance, in the first half of the year, stamp duty revenue was 163.2 billion yuan, down 22.9% year-on-year. Among them, the stamp duty on securities transactions was 50.9 billion yuan, a year-on-year decrease of 54%.
6. The General Office of the Ministry of Industry and Information Technology and the General Office of the State Administration for Market Regulation issued the Notice on Further Strengthening the Management of Energy Consumption Labeling of Light Vehicles. It mentions that automobile manufacturers or imported automobile dealers should ensure that their light vehicle products are affixed with light vehicle energy consumption labels when they are sold. The content, format, material and paste of energy consumption labels shall comply with the requirements of the Energy Consumption Labeling of Light Vehicles Part 1: Gasoline and Diesel Vehicles (GB22757.1-2023) and the Energy Consumption Labeling of Light Vehicles Part 2: Plug-in Hybrid Electric Vehicles and Pure Electric Vehicles (GB 22757.2-2023); When the energy consumption label is used in places other than the automobile product itself, it can be enlarged or reduced in equal proportions.
7. According to data released by the Asset Management Association of China, as of the end of June 2024, there were 163 public fund management institutions in mainland China, including 148 fund management companies and 15 asset management institutions that have obtained public offering qualifications. The total net asset value of the public funds managed by the above institutions is 31.08 trillion yuan.
8. On July 22, the National Press and Publication Administration announced the approval information of domestic online games in July 2024, and a total of 105 games were approved. Up to now, a total of 794 game versions (including 61 imported games) have been issued this year. Among them, the domestic game version number maintains the frequency of issuing one batch per month, and the number of more than 100 is issued in 5 months (including this month).
Company News
1. Buybacks by listed companies
Shanghai Airport: It is planned to repurchase 5,254,300 shares to 10,508,500 shares of the company
Gold Securities Shares: It is planned to repurchase the company's shares for 20 million yuan - 30 million yuan
SIE Information: It is planned to repurchase the company's shares with 50 million yuan - 100 million yuan
Qinshang shares: plans to repurchase the company's shares for 30 million yuan - 50 million yuan
Guanghui Energy: It plans to repurchase shares for 400 million to 800 million yuan
Online and offline: It is planned to repurchase shares for 15 million yuan to 30 million yuan
Far Eastern Group: It is planned to repurchase shares for 150 million yuan to 200 million yuan
2. BYD: According to the latest data disclosed by the Hong Kong Stock Exchange, on July 16, Warren Buffett's company Berkshire · Hathaway reduced its holdings of BYD H shares by 1.3955 million shares, with an average price of HK$246.96 per share. After Berkshire · Hathaway's reduction, BYD's stake in BYD fell to 4.94%.
3. Jin Jiang Online: The company has noticed that the concept of smart taxis has attracted high market attention recently, and some of the company's subordinate Jin Jiang Taxi companies and relevant partners have carried out intelligent networked unmanned taxi demonstration operation activities in the designated areas of Jiading District and Lingang New Town in Shanghai. The above-mentioned demonstration operation activities are still in the experimental stage, basically do not generate revenue, and there is still uncertainty about the future business development, which will not have a significant impact on the company's business activities in the short term. As of July 22, the company is in the "G54 road transport" industry P/E ratio of 13.11 and the latest P/B ratio of 1.13, the company's P/E ratio is 54.41 and the P/B ratio is 2.10. The company's current price-to-earnings ratio and price-to-book ratio are higher than the average level of the same industry.
On July 22, Jinjiang Online once again rose to the limit, gaining 8 daily limits in 10 trading days, with a cumulative increase of 110.31% and a cumulative turnover rate of 96.13%. The total market value of the latest A-shares reached 5.815 billion yuan.
4. Public transportation: The company is concerned that the intelligent networked vehicles have received high market attention recently, and the model is still in the experimental stage, which basically does not generate revenue for the company, and there is still uncertainty about the future business development trend, which will not have a significant impact on the company's business activities in the short term. As of July 22, 2024, the company is represented at a P/E ratio of 13.09 in the G54 Road Transport industry with a P/B ratio of 1.13 at the latest level, and a P/B ratio of 40.70 with a P/B ratio of 1.39. The company's current price-to-earnings ratio and price-to-book ratio are higher than the average level of the same industry.
The public transportation daily limit on July 22 gained 5 daily limits in 9 trading days, with a cumulative increase of 91.28% and a cumulative turnover rate of 196.44%. The total market value of the latest A-shares reached 9.599 billion yuan.
5. Guozhong Water: The company intends to acquire the registered capital of Zhuji Wenshenghui held by Shanghai Yongrui by paying cash of not less than 232 million yuan, and after the completion of the acquisition, the company will hold the registered capital of Zhuji Wenshenghui of not less than 816 million yuan, accounting for no less than 51% of the registered capital of the target company, so as to become the controlling shareholder of Zhuji Wenshenghui and the controlling shareholder of Beijing Huiyuan Food and Beverage Co., Ltd.
On July 22, the limit of Guozhong Water was limited. Beijing Huiyuan was founded in the early 90s of the last century, and "Huiyuan" once became a well-known beverage brand. Since 2022, Guozhong Water has successively acquired the equity of Zhuji Wenshenghui three times and participated in the restructuring of Beijing Huiyuan Food and Beverage Co., Ltd. In December 2022, Guozhong Water invested 850 million yuan to acquire 31.481% of the equity of Zhuji Wenshenghui from Wensheng Assets, thereby indirectly holding 18.89% of the equity of Beijing Huiyuan. In April and July 2023, Guozhong Water once again increased its stake, twice acquiring the equity of Zhuji Wenshenghui held by Shanghai Yongrui, and its indirect shareholding in Beijing Huiyuan increased to 21.89%.
6. Zhongfutong: The company and Xiamen Jinlong United Automobile Industry Co., Ltd. signed a "strategic cooperation agreement" on July 22. The two parties are willing to jointly explore the application of autonomous driving technology based on efficient collaboration of vehicles, roads, networks, clouds, and maps in multiple scenarios such as smart parks and tourist attractions, and explore the cooperation scenarios and project implementation of "Internet of Things + Digitalization + Intelligence" in the context of industrial digitalization.
7. Silver Nonferrous Metals: It intends to acquire the entire equity of a mining company by cash payment to obtain control of it. The target company operates an in-producing copper-gold mine in Brazil with an average annual output of approximately 20,000 tonnes of copper contained in copper concentrate. On July 22, 2024, the board of directors of the company deliberated and approved the investment proposal, which plans to improve the level of international operation and resource guarantee capabilities. At present, the transaction is in the binding quotation stage, and the final transaction price has not yet been determined, and there is uncertainty in the subsequent agreement negotiations.
8. Baiyunshan: Li Chuyuan, chairman of the company, resigned as chairman, executive director and director of the strategic development and investment committee for personal reasons, and will no longer hold any position after his resignation. Li Chuyuan confirmed that there is no difference of opinion with the Board. Vice Chairman Yang Jun will perform the duties of Chairman on his behalf until the election of a new Chairman of the Board. Li Chuyuan does not hold shares in the company.
9. Wantai Biotech: Wantai Canghai, a wholly-owned subsidiary, signed a termination letter of cooperation agreement with GSK, deciding not to continue the development and commercialization of the new generation of cervical cancer vaccine HPV9-AS04 vaccine candidate. After the termination of the Cooperation Agreement, Wantai Canghai will no longer receive other milestones and sales commissions agreed under the Cooperation Agreement. The follow-up work on the termination of the Cooperation Agreement will not incur significant expenses and will not result in significant asset impairment. In view of the fact that the development of HPV9-AS04 vaccine candidates will not continue, Wantai Canghai will no longer have the exclusive agency rights for HPV9-AS04 vaccine candidates in China and some other countries/regions after the termination of the Cooperation Agreement. At present, the clinical application of the nine-valent HPV vaccine jointly developed by Wantai Canghai and Xiamen University is still in progress. After the termination of the Cooperation Agreement, Wantai Canghai will no longer be subject to the restrictions of the Cooperation Agreement, and the 9-valent HPV vaccine jointly developed by Wantai Canghai and Xiamen University will be able to obtain complete commercialization rights worldwide.
10. Ruiang Gene: Xiong Hui, the actual controller, chairman and general manager, and core technical personnel, Xiong Jun, the actual controller, director and deputy general manager, and Xue Yuwei, the deputy general manager, were placed under residential surveillance at a designated location by the public security organs on suspicion of illegal business operations; Deputy General Manager He Junyan was suspected of illegal business operation and was taken into criminal detention by the public security organs. Further investigation is pending. The company held the 25th meeting of the second board of directors on July 22, 2024, and agreed that Gao Shangxian, the actual controller and director of the company, would act as the legal representative, chairman and general manager of the company.
11. ST Dinglong: The company received the "Prior Notice" issued by the Shenzhen Stock Exchange on July 22, and the daily closing price of the company's shares was lower than 1 yuan for 20 consecutive trading days from June 19 to July 16, which touched the termination of the listing of the shares stipulated in Article 9.2.1, Paragraph 1 (4) of the Stock Listing Rules (Revised in April 2024) of the Shenzhen Stock Exchange, and the Shenzhen Stock Exchange intends to decide to terminate the listing and trading of the company's shares.
Selected Research Reports
The CITIC Securities Research Report believes that the three major types of signals at the market inflection point are still being verified. In terms of policy, the reform policy signal has been clear, boosting the market's medium- and long-term risk appetite, and market liquidity has been gradually improving. Externally, the situation of the United States election is gradually becoming clearer, and domestic policy expectations for independent controllability and boosting domestic demand are increasing. In terms of prices, the signal still needs to be observed under the constraint of insufficient domestic demand. As the three major signals continue to be gradually verified, the current market liquidity inflection point has appeared, and the third quarter is expected to further usher in the market inflection point.
Minsheng Securities Research Report said that in the first half of the year, after taking into account multiple goals such as air defense transfer, stabilizing interest rate spreads, and stabilizing exchange rates, monetary policy ushered in important changes at the beginning of the second half of the year, and there may be two deep meanings behind it: first, under the continuous change of internal and external environment, monetary policy objectives ushered in a new stage; Second, a new interest rate transmission system is about to emerge, and a new monetary policy framework is evolving.
Reporter: Wang Yin Editor: Zhang Lijing Proofreader: Zhang Jing Producer: Li Ruoyu Signed: Sun Hong
