A-share Daily Market News Review (2024-10-16)

Mini Program: A-share Daily Market News Review

IMPORTANT NEWS

1. Will deposit interest rates drop again? The market is expected to land this month, which can hedge against the impact of the reduction in the stock of mortgages

Will deposit interest rates be lowered again? On October 15, there was a rumor in the market that Chinese banks are about to cut deposit interest rates again in the near future, which will be announced as soon as this week. Many banks asked by the reporter have yet to respond positively to this, but some banking industry insiders said that there is indeed a possibility that interest rates on deposits will be lowered in the near future. A joint stock bank insider told the reporter that the bank originally planned to further reduce deposit interest rates after the 11th long vacation, but there are no changes yet. He anticipates that it is more likely that the regulatory authorities will guide banks to adjust deposit interest rates in the near future. This is also to hedge against the impact of the upcoming decline in stock mortgage interest rates on bank interest rates. Earlier, authoritative experts predicted that as the effects of this interest rate cut and downgrade policy gradually became apparent, deposit interest rates would also be adjusted along with adjustments, which could further reduce the bank's interest burden. Therefore, the impact of lower interest rates on stock mortgages on banks' net interest spreads is generally neutral. (Shell Finance)

2. The “Cheng-Chongqing Concept” broke out, and the Chengdu demolition boom: policy promotion and sharing with netizens sparked a heated discussion.

On the evening of October 15, many netizens from Chengdu, Sichuan began sharing their recent eviction compensation situation on “Xiaohongshu”. Overnight, the topic of large-scale demolition in Chengdu went viral. Yesterday, the topic “New on the Chengdu Demolition Map” topped Weibo's hot list of the same city in Chengdu. Many netizens also linked the topic of large-scale demolition in Chengdu to topics such as “Western Development” and “Exploring the Western Hinterland.” In terms of policy, on September 27, the State Council approved the “Chengdu Territorial Space Master Plan (2021-2035)”. On October 12, the Information Office of the Chengdu Municipal Government held a relevant press conference to understand the above plan. In April of this year, the “2024 List of Key Projects to Accelerate Early Work in Sichuan Province” was issued. The Sichuan Provincial Development and Reform Commission announced that the list selected 330 major projects to be started in the next 2 to 3 years, with an estimated total investment of 2.15 trillion yuan.

The share of the 310 China Securities A500 ETFs soared 22% on the first day of listing, and Cathay Pacific surpassed 4.4 billion dollars

On the first day of listing, the 10 CSIC A500 ETFs were actively traded in a volatile market, with an average turnover rate of over 56% on the first day. The latest total share of the 10 China Securities A500 ETFs is 24.446 billion shares, an increase of 22% over pre-listing. The total size is nearly 23.2 billion yuan, with an average size of 2.32 billion yuan. Among them, the Cathay Pacific China Securities A500 ETF exceeded 4.4 billion yuan, the net inflow on the first day exceeded 2.6 billion yuan, and the first-day transaction amount exceeded 3.1 billion yuan, setting a new high in the first-day turnover of ETFs listed this year. In addition, the size of the Southern China Securities A500 ETF and Invesco Great Wall China Securities A500 ETF has also increased markedly, to 2,521 billion yuan and 2,313 billion yuan respectively.

4. Lowest rate for similar products in the market, Kechuang 100 ETF Huaxia (588800) fee reduction

The Huaxia Shanghai Science and Technology Innovation Board 100 ETF drastically reduced fees Huaxia Shanghai Science and Technology Innovation Board 100 ETF (588800) and the Huaxia Shanghai Science and Technology Innovation Board 100 ETF Link (020291) announced that the management rate will be reduced from 0.50% to 0.15%, and the escrow rate will be reduced from 0.10% to 0.05%.

5. Economist Yu Yongding: Expanding fiscal policy to achieve steady economic growth

Looking at a series of macro-control policies introduced recently, Yu Yongding assessed that the central bank has done what it can do now: cut interest rates and downgrade, but the loose monetary policy itself is not enough to solve the “asset shortage.” The baton has now been passed on to the Development and Reform Commission and the Ministry of Finance. He said, “At this stage, if we want to start the economy, the primary consideration should be to increase infrastructure investment. Infrastructure investment can not only directly drive economic growth, but also drive the development of related industrial chains by creating a “crowding in effect.” To achieve the target of 5% annual GDP growth, Yu Yongding suggested that the growth rate of infrastructure investment should reach double digits, and the scale could reach about 16 trillion to 20 trillion dollars. He believes that China doesn't need to worry too much about the government's excessive leverage ratio; China's fiscal policy still has huge potential for expansion. (Tencent Finance)

6. 12 wind power manufacturers signed the “China Wind Power Industry Self-Regulatory Convention on Maintaining a Fair Competition Environment in the Market”

On October 16, at the 2024 Beijing International Wind Energy Conference and Exhibition, 12 wind power manufacturers signed the “China Wind Power Industry Self-Regulatory Convention on Maintaining a Fair Competition Environment in the Market”. Qin Haiyan, Secretary General of the Wind Energy Professional Committee of the China Renewable Energy Society, said that the “price war” is eroding the foundation for the development of the wind power industry. It will focus on addressing issues such as vicious competition at low prices, malicious slander against competitors, and clearly unfair contract terms. The 12 signatory companies mentioned above include Goldwind Technology, Envision Energy, Yunda Co., Ltd., Mingyang Intelligence, Sany Heavy Energy, Dongfang Electric, Electric Wind Power, CRRC, CRRC, CRRC, CSSC, and Xinglan Wind Power. (interface)

Individual stock news

1. On the first day of listing, Shangda Shares surged 1060.61%. The increase exceeded 1,000 points, and the intraday period was broken twice

Shangda Co., Ltd. was listed on the Shenzhen Stock Exchange GEM. The issue price was 6.88 yuan/share, and the price-earnings ratio was 20.02 times. On the first day of listing, the company's increase extended to 1382.56%. It triggered a second time during the session, and closed up 1060.61% at the end of the session.

2. Dongfang Wealth Securities successfully issued 4.3 billion yuan of corporate bonds to repay debts and supplement working capital

Dongfang Wealth Securities Co., Ltd., a subsidiary of Dongfang Wealth Information Co., Ltd., has completed the public issuance of corporate bonds (fourth installment) to professional investors in 2024. According to the approval of the China Securities Regulatory Commission, the total amount issued this time is no more than RMB 18 billion. The actual issuance scale for this issue is 4.3 billion yuan. The bond is called “24 Dongcai Securities 07,” the code is “148940.SZ,” the term is 2 years, the coupon interest rate is 2.35%, and the issue price is 100 yuan each. The bonds will be listed on the Shenzhen Stock Exchange to raise funds to repay the company's debts and supplement working capital. All subscribers meet the requirements of relevant regulations and exchange regulations.

3. Was the Great Wall's plan to go public in Hong Kong called off by the Great Wall? Zhang Kai, Chairman of Zhimo Zhi Xing: Not suspended, the IPO is expected to be achieved in 2025

Recently, there was news that Wei Jianjun, chairman of Great Wall Motor, has recently temporarily suspended the Hong Kong stock IPO plan of the last minute smart move. In response, on October 16, Zhang Kai, chairman of Milimo Zhixing, said, “Currently, Milimo Zhixing has not suspended its Hong Kong IPO plan; it is still ongoing.” Regarding the exact time of the IPO of Mimo Zhi Xing, Zhang Kai told reporters: “It should be 2025.” (Mainichi Keizai Shimbun)

4. Hongmeng Zhixing: The cumulative delivery volume of the new M7 exceeded 160,000 units this year

The official website of the Huawei terminal announced today that the cumulative delivery volume of Hongmeng Zhixing's “National SUV” M7 in 2024 has exceeded 160,000 units. If you place an order, you can also enjoy car purchase benefits of up to 35,000 yuan. The deadline is October 31.