A-share Pre-Market News Express (2024-10-17)

Mini Program: A-share Pre-Market Market News Express

IMPORTANT NEWS

1. Today at 10 a.m., the State Information Office will hold a press conference on the situation relating to promoting the steady and healthy development of the real estate market

Today (17th) at 10 a.m., the Information Office of the State Council held a press conference. Ni Hong, Minister of Housing, Urban-Rural Development, and heads of the Ministry of Finance, the Ministry of Natural Resources, the People's Bank of China, and the State Financial Supervision and Administration, introduced the situation relating to promoting the steady and healthy development of the real estate market and answered questions from reporters.

2. During his visit to Fujian, Xi Jinping emphasized making every effort to carry out economic work in the fourth quarter and strive to achieve economic and social development goals for the whole year

On the afternoon of the 16th, Xi Jinping was in Xiamen to listen to reports on the work of the Fujian Provincial Committee and Provincial Government, affirmed Fujian's achievements in various tasks, and put forward clear requirements for the next steps. Xi Jinping pointed out that it is necessary to break new paths in promoting the deep integration of scientific and technological innovation and industrial innovation. Accelerate the construction of institutional mechanisms to support comprehensive innovation, promote the integrated reform of the education science and technology talent system in an integrated manner, strengthen the construction of high-energy science and technology innovation platforms, implement major scientific and technological research actions, strengthen the dominant position of enterprises in scientific and technological innovation, improve policies and mechanisms for financial support for scientific and technological innovation, and create a more perfect innovation environment and a more attractive talent environment. Firmly adhere to the real economy, consolidate the advantages of traditional industries, vigorously promote transformation and upgrading, cultivate and expand strategic emerging industries, forwardly lay out future industries, develop new quality productivity according to local conditions, and shape new advantages in industrial development. Xi Jinping stressed the need to earnestly implement the decisions and arrangements of the Party Central Committee, make every effort to carry out economic work in the fourth quarter, and strive to achieve economic and social development goals for the whole year.

3. The central bank and the Ministry of Science and Technology have made arrangements to improve technology finance services in key regions and integrate various policy resources to support the development of technology finance

The central bank and the Ministry of Science and Technology have made arrangements to improve technology finance services in key regions. Raise the intensity and level of financial support, make good use of structural monetary policy tools such as technological innovation and technological transformation and refinancing, and expand loan investment for technology-based enterprises in the jurisdiction. Include underwriting and investment in technology-based corporate bonds in the evaluation of the effectiveness of technology finance services to promote an increase in the scale of issuance of science and technology innovation notes. Focus on the construction needs of science and technology innovation centers, and increase financial support for technology-based enterprises, key science and technology projects, and key manufacturing industry chains and clusters within the jurisdiction.

4. Media: Maotai Hong Kong specialty store reduced prices, up to over HK$1,000

Local media Hong Kong 01 quoted local specialty store clerks as reporting that after the government cuts the spirits tax, a Hong Kong specialty store in Kweichow Moutai will cut prices. The price of Maotai liquor produced in 2024 was reduced from HK$3,380 to HK$2,680, a decrease of 20.7%. Other years of Maotai will also have price reductions of varying degrees, up to over HK$1,000.

5. Ministry of National Security: An overseas company used research on intelligent automobile driving as a cover to carry out illegal surveying and mapping

The work of the national security authorities discovered that through cooperation with Company B, which has surveying and mapping qualifications in China, an overseas enterprise, unlawfully carries out geographic information surveying and mapping activities in China under the cover of carrying out research on intelligent automobile driving. Company A is a project contractor in key sensitive areas in a country. According to the “Surveying and Mapping Law of the People's Republic of China”, Company A is not qualified to carry out separate geographic information surveying and mapping activities in China. In order to avoid supervision by China's industry authorities, the company outsourced the project several times on the grounds of intelligent automobile driving research, and finally commissioned domestic company B, which has surveying and mapping qualifications, to implement it. Driven by the lure of economic interests, Company B was completely reduced to Company A's matchmaking puppet, and its surveying and mapping qualifications also acted as a cover for Company A to illegally obtain surveying and mapping data within our country.

6. Developer: Chengdu is indeed proceeding with demolition, but it is not the rumored major demolition and construction

I learned from a number of Chengdu real estate industry insiders that Chengdu is actually proceeding with the demolition at present, but it is not the major demolition and construction rumored online, and the demolition fee is not as high as reported online. “Usually they are decades-old houses, and old farmers' markets.” A housing company insider who has been living in Chengdu for a long time said that the eviction was actually always planned, but now it has been packaged up. As for the amount of the demolition subsidy, an insider from a state-owned developer revealed that the current demolition allowances are basically carried out according to 1:1 and 1:1.5. The demolition allowance is less than 200,000 yuan per person, and the houses are all relocated in the suburbs far away. Other housing enterprise insiders said that now evictions do not promote monetized subsidies; they all give housing tickets. (One fortune)

7. “House Group” issued a statement: The projects in the Chengdu demolition map were not concentrated recently

In response to the Chengdu demolition map circulating on the Internet, the publisher of the map “Housing Group” issued a statement. The relevant demolition projects involved in the demolition map all came from public market data, and they were all published one after another within a year or more, and were not produced centrally recently.

8. China Cyberspace Security Association: Recommended systems to investigate cyber security risks of Intel products

The China Cyberspace Security Association published the article “Investigating the Cybersecurity Risks of Intel Products with Frequent Vulnerabilities and High Failure Rates”. The article points out that in August 2023, Intel CPUs were revealed to have a downfall vulnerability. This vulnerability is a type of CPU transient execution side channel vulnerability that uses gather instructions centered on AVX2 or AVX-512 instructions to obtain sensitive data such as keys, user information, and key parameters previously stored in a specific vector register buffer. Beginning at the end of 2023, many users reported crashing issues when playing certain games using Intel's 13th and 14th generation Core i9 series CPUs. In order to please the US government, Intel is actively suppressing China on the so-called border-related issue, demanding that its suppliers not use any labor or procurement products or services from the Xinjiang region. In its financial reports, it also juxtaposes Taiwan Province with China, the United States, and Singapore, and has also taken the initiative to cut supply and stop service to Chinese companies such as Huawei and ZTE. This is a typical “pick up a bowl to eat, drop the bowl and throw the pot.” It is recommended that a cybersecurity review be initiated on products sold by Intel in China to effectively safeguard China's national security and the legitimate rights and interests of Chinese consumers.

9. Ministry of Commerce: The number of appliance trade-in applications and purchasers across the country exceeded 20 million and 10 million, respectively

In August, 4 departments including the Ministry of Commerce issued the “Notice on Further Accomplishing the Trade-in of Home Appliances” to subsidize the purchase of 8 types of household appliances with energy efficiency or water efficiency standards of grade 2 or above. All regions responded positively and carefully organized and implemented. Currently, the number of people applying for and purchasing electric appliances in the country has exceeded 20 million and 10 million, respectively. According to the Ministry of Commerce's National Appliance Trade-In Data Platform, as of October 15, 20.667 million consumers had applied, and 10.134 million consumers had purchased 14.624 million units of 8 categories of household appliances, enjoying a central subsidy of 13.17 billion yuan, driving sales of 69.09 billion yuan. In the next step, the Ministry of Commerce will guide and supervise local authorities to strengthen policy publicity and capital supervision, push home appliance production and distribution enterprises to seize important consumer nodes such as “Gold Nine Silver Ten” and “Double Eleven,” combine corporate concessions, fully unleash policy effects, and push home appliance trade-in efforts to achieve solid results. (Business micro news)

Individual stock news

1. Apple is reported to have secretly cooperated with BYD to develop long-life electric vehicle batteries

According to people familiar with the matter, Apple has been cooperating with BYD for many years to develop long-life batteries for its now-cancelled car project. People familiar with the matter said that Apple and BYD, headquartered in Shenzhen, joined forces around 2017 to build a battery system using lithium iron phosphate batteries. People familiar with the matter said that the technology developed in collaboration between Apple and BYD was supposed to be highly customized for the models Apple plans. In this secret partnership, they said, Apple engineers brought expertise in advanced battery packs and thermal management. BYD has contributed to manufacturing technology and the latest advances in lithium iron phosphate batteries.

2. China Merchants Shekou: Plans to buy back the company's shares for 351 million yuan to 702 million yuan

China Merchants Shekou announced that, based on confidence in the company's future development, in order to enhance investor confidence and effectively safeguard the interests of investors, the company plans to use its own funds or self-raised funds to repurchase shares through centralized bidding transactions. All shares repurchased this time will be cancelled and the company's registered capital reduced. The proposed repurchase price shall not exceed RMB 1,568 per share, and the proposed repurchase amount shall not be less than RMB 351 million and not more than RMB 702 million. The repurchase period is 12 months from the date the company's shareholders' meeting reviews and approves the repurchase plan.

3. China Life Insurance: Expected net profit of 101,135 billion yuan to 108.767 billion yuan in the first three quarters, an increase of 165% to 185%

China Life Insurance Co., Ltd. (hereinafter referred to as “China Life”) announced that according to preliminary estimates, the company's net profit attributable to shareholders of the parent company in the first three quarters of 2024 is estimated to be about 101.125 billion yuan to 108.767 billion yuan in the first three quarters of 2024. Compared with the same period in 2023, it will increase by about 62,971 billion yuan to 70.603 billion yuan, an increase of about 165% to 185% over the previous year. China Life Insurance said that the company adheres to the principle of balance and liability matching and the concept of long-term investment, value investment, and steady investment, seizes market opportunities to carry out cross-cycle allocation, and continues to promote the optimization of the equity investment structure. The stock market picked up significantly in the third quarter of 2024, and the company's investment income increased significantly year-on-year.

4. Saiwei Electronics: The National Integrated Circuit Fund plans to reduce its holdings by no more than 1.5%

Saiwei Electronics announced that China Integrated Circuit Industry Investment Fund Co., Ltd., the shareholder holding 5% or more of the company's shares, plans to reduce the total holdings of the company no more than 10,983,196 shares, or no more than 1.5% of the company's total share capital through centralized bidding and bulk transactions, within three months after the disclosure of this announcement, no more than 7,322,131 shares, that is, no more than 1% of the company's total share capital through bulk transactions; that is, no more than 0.5% of the company's total share capital through bulk trading. The reason for the reduction in holdings was the need for withdrawal.

5. A share “devours snakes” merger and acquisition has arrived. Songfa Co., Ltd. plans to buy 100% of Hengli Heavy Industries shares. Songfa Co., Ltd. resumes trading today

Songfa Co., Ltd. announced that the company plans to obtain 100% of the shares of Hengli Heavy Industries Group Co., Ltd. by replacing major assets and issuing shares to purchase assets. Meanwhile, the company plans to resume trading from the opening of the market on October 17. If the above transaction is completed, it will become a new case of “devouring elephant” A-share mergers and acquisitions. The controllers behind Hengli Heavy Industries and Songfa Co., Ltd. can all be traced back to Hengli Group, a Fortune 500 company, and its actual controller. However, the current total market value of Songfa Co., Ltd. is less than 2 billion yuan, while Hengli Heavy Industries increased its capital by 2.5 billion yuan in September. Industry insiders suggest that the current regulatory authorities encourage mergers, acquisitions and restructuring, and focus on creating a number of benchmark cases. If mergers and acquisitions of companies such as Songfa Co., Ltd. and Guangzhi Technology can be completed, it will enhance the enthusiasm for mergers, acquisitions and restructuring in the capital market.

6. Fuller: Plans to buy 100% of Jiangsu Fulehua Semiconductor Technology Co., Ltd. and resume stock trading

Fuller announced that the company plans to issue shares and convertible corporate bonds with 59 counterparties including Shanghai to purchase 100% of its shares in Jiangsu Fulehua Semiconductor Technology Co., Ltd., and plans to issue shares to no more than 35 specific investors to raise supporting capital. Fullerton's main business is the R&D, design, production and sale of copper-clad ceramic carrier boards for power semiconductors. The industry it belongs to is “manufacturing of special materials for electronics”. This transaction constitutes a related transaction and major asset restructuring, but it does not constitute a restructuring and listing. Following the application, trading of the company's shares will resume from the opening of the market on October 17 (Thursday).

7. Rockchip released a chip price increase letter to uniformly raise the prices of RV1109, RV1126, and RV1126K products by 0.8 US dollars

Recently, a notification letter about the price increase of Rockchip's micro products was circulating in the market. According to the letter, Rockchip decided to adjust the prices of RV1109, RV1126, and RV1126K products starting October 15, 2024, and uniformly raise the prices by 0.8 US dollars. As for the reason for the price increase, the company explained that the cost of the product had risen sharply, making it difficult for the original price to meet supply demand. People familiar with the matter told reporters that the content of the product price adjustment notice was true.

8. Jimi Technology: A wholly-owned subsidiary received a fixed notice for BAIC New Energy Development

Jimi Technology announced that Yibin Jimi Optoelectronics Co., Ltd. (“Yibin Jimi”), a wholly-owned subsidiary of the company, recently received a designated development notice from Beijing New Energy Vehicle Co., Ltd. (“BAIC New Energy”). Yibin Jimi will become a designated supplier of BAIC New Energy's vehicle projectors and screen assemblies to supply smart cockpit display products for its new models. In addition to BAIC, Yibin Jimi recently received a predetermined notice from another well-known domestic automobile industry chain company. The official fixed notice still needs to be approved by the company's supplier system, which is uncertain.

9. Topway Information: Net profit for the first three quarters was RMB 11.013,200, down 84.85% year on year

Topway Information announced that in the first three quarters, it achieved operating income of 2,945 billion yuan, an increase of 57.26%; net profit attributable to shareholders of listed companies was 11.013,200 yuan, a year-on-year decrease of 84.85%; and basic earnings per share were 0.0088 yuan. The third quarter achieved operating income of 1,216 billion yuan, an increase of 52.15% year on year; net profit attributable to shareholders of listed companies was 7.678 million yuan, a year-on-year decrease of 48.45%.