[Financial Morning Briefing] Wednesday, January 24, 2024

Everyday Golden Song: Zhang Jie, Karen Mok - "In a Thought"

► China Securities Regulatory Commission: Enhance policy tools to deal with market fluctuations, timely risk hedging; formulate and implement comprehensive measures to prevent and punish financial fraud in the capital market, strengthen efforts to prevent and combat fraud, continuously optimize the market ecosystem; Crack down on abnormal trading, market manipulation, and other violations, strengthen monitoring of trading activities of key investors; vigorously cultivate long-term and stable investment forces.

► Netease Finance: According to data from Meituan and Dianping, as of January 21, pre-bookings for holiday travel (including hotel accommodations, tickets, transportation, etc.) during the Chinese New Year increased by about 7 times compared to the same period last year. Beijing, Sanya, Harbin, and other cities are popular tourist destinations. Snow resorts and hot springs are expected to reach their peak in receiving guests during the Spring Festival.

► Caixin App: On Tuesday, the U.S. 50 ETF surged to its daily limit immediately after resuming trading at 10:30 am, with a premium rate exceeding 21%. The Nasdaq Index ETF rose more than 9%, and the Nikkei ETF rose more than 4%. On January 22, the total market value of Indian stocks (US$4.33 trillion) surpassed that of Hong Kong (US$4.29 trillion) for the first time, making it the fourth-largest stock market in the world.

► Netease Finance: Due to the fact that ETFs can be used not only for financing or short selling but also for constructing hedging portfolios with stock index futures, investors have always had a high demand for margin trading of ETFs. In particular, the demand for margin trading of 500ETF and 1000ETF has rapidly increased during the recent market downturn. Some brokerages currently have no shares available for margin trading of 500ETF and 1000ETF.

 Macroeconomic News 

1. Ministry of Industry and Information Technology, National Development and Reform Commission: Issued the "Implementation Opinions on Innovative Development of Manufacturing Industry". By 2025, the pilot capabilities of key industrial chains in China will be basically fully covered, and the levels of digitization, networking, intelligence, high-end, and greenization will be significantly improved. Build five or more pilot platforms with international advanced level. Promote the shortening of software and hardware gaps through pilot testing, and strengthen key county-level trials. Solve bottleneck problems.

2. China Banking and Insurance Regulatory Commission: Since 2021, banking institutions have cumulatively issued loans totaling 19.7 trillion yuan to poverty-stricken areas, with a year-on-year average loan growth rate of 14.4%. Over the past three years, banking institutions have cumulatively issued loans exceeding 3 trillion yuan to counties targeted for national rural revitalization, with a year-on-year average loan growth rate of 15%.

3. China Securities Regulatory Commission: Crack down on shadow shareholders, "revolving doors" between officials and businesses, and "escape-type resignations," further reducing the "status value" of departing employees. Make great efforts to eradicate the soil and conditions that breed corruption, and strictly punish the corruption behind financial risks. Adhere to the "three strict standards" and build a high-quality professional cadre team that is loyal, clean, and responsible.

4. Shanghai: In 2023, the investment in major projects will exceed 225 billion yuan, and the investment in fixed assets will exceed 1 trillion yuan; the scale of the three leading industries will reach 1.6 trillion yuan, and the actual use of foreign capital will reach a historic high; the per capita disposable income of residents will reach 85,000 yuan, with a growth rate of 6.6%; the number of high-tech enterprises will exceed 24,000; the total market value of listed companies will be the highest in the country; the number of 5G base stations will exceed 77,000; the number of new energy vehicles will reach 1.288 million, ranking first in the world.

5. Shenzhen: In 2023, it will become the second trillion-yuan consumer city in Guangdong Province, and the full resumption of clearance between Shenzhen and Hong Kong will have a significant boosting effect, not only directly promoting the prosperity of port trade, but also facilitating frequent and close exchanges between people in Shenzhen and Hong Kong.

Real Estate News

1. Shanghai: In 2023, 123,000 square meters of intermittent secondary old houses in the central urban area will be renovated, and 296,000 square meters of non-integrated old residential buildings such as small beam thin-panel houses will be renovated. 10 urban village renovation projects will be initiated; an additional 81,000 sets of rent-stabilized housing will be provided, offering 11,000 beds for urban construction workers in the new era.

2. Bozhou City, Anhui Province: Dr. graduates working in the industrial enterprises in the city and master's graduates under the age of 35 who purchase their first commercial housing in the city before June 30, 2024, and have continuously paid social security for more than 6 months and are in a continuous payment status, will receive a housing subsidy of up to 50,000 yuan from the beneficiary government.

3. Tencent: On January 23, 2024, it acquired a land plot in Haidian District, Beijing for 6.42 billion yuan, which will mainly be used to meet the company's office land needs and provide stable and centralized office space for its employees.

Stock Market Review

1. On Tuesday, the Shanghai Composite Index closed at 2770.98 points, up 0.53%, with a turnover of 312.191 billion yuan. The Shenzhen Component Index closed at 8596.28 points, up 1.38%, with a turnover of 392.051 billion yuan. The ChiNext Index closed at 1687.61 points, up 1.24%, with a turnover of 159.109 billion yuan. In general, there were more rising stocks than falling stocks, with over 2900 stocks rising in the two markets. The total turnover of the two markets was 704.3 billion yuan, a decrease of 89.7 billion yuan from the previous trading day. In terms of market performance, the mobile game, Shanghai state-owned assets, CPO, securities, and other sectors performed well, while the clothing and home textile, household light industry, PEEK materials, food processing, and other sectors performed poorly. The net inflow of northbound funds was 3.79 billion yuan throughout the day, with Shanghai Stock Connect net buying 2.902 billion yuan and Shenzhen Stock Connect net buying 888 million