Zhitong Hong Kong Stock Early Insights | The Federal Reserve announces a 25 basis point rate cut, and the S&P 500 index approaches the 6000-point mark

【Headline Today】

The Federal Reserve announces a 25 basis point rate cut, balancing employment support and inflation control equally important

According to Zhitong Finance APP, after a significant rate cut of half a percentage point in September, on Thursday, the Federal Open Market Committee (FOMC) lowered the benchmark overnight lending rate by a quarter of a percentage point, or 25 basis points, to a target range of 4.5%-4.75%. This rate affects the cost of overnight lending between banks and also impacts consumer credit tools such as mortgages, credit cards, and auto loans. In the post-meeting statement, the Federal Reserve slightly adjusted its assessment of the economy, one of which was a change in the view of balancing inflation control and labor market support. The statement noted, "The Committee believes the risks to achieving employment and inflation goals are roughly balanced," which differs from the wording in September that expressed "greater confidence in this process."

According to CME's "FedWatch": The probability that the Federal Reserve will maintain the current rate until December is 29%, while the probability of a cumulative rate cut of 25 basis points is 71%. The probability of maintaining the current rate until January next year is 16.6%, while the probability of a cumulative rate cut of 25 basis points is 53%, and the probability of a cumulative rate cut of 50 basis points is 30.4%.

At the Federal Reserve's press conference, Chairman Jerome Powell clearly stated that he would not resign if "elected president" Trump asked him to leave.

【Market Outlook】

S&P 500 index approaches the 6000-point mark, Trump Media Technology Group (DJT.US) falls 22.9%

Overnight, U.S. stocks closed with the Dow slightly down at 43,729.34 points; the Nasdaq rose by 285.99 points, an increase of 1.51%, closing at 19,269.46 points; the S&P 500 index rose by 44.06 points, an increase of 0.74%, closing at 5,973.10 points. Trump Media Technology Group (DJT.US) fell 22.9%, Tesla (TSLA.US) rose 2.9%, and NVIDIA (NVDA.US) rose 2%. The Nasdaq Golden Dragon China Index rose 3.5%, XPeng (XPEV.US) rose 15%, Bilibili (BILI.US) rose 8.8%, and JD.com (JD.US) rose over 6.5%. The Hang Seng Index ADR rose, closing at 21,252.81 points, up 299.47 points or 1.43% compared to the Hong Kong close.

London metals closed higher, with copper rising 3.89%, nickel rising 2.48%, zinc rising 3.37%, and aluminum rising 3.63%.

【Hot Topics Ahead】

Chen Maobo: Consolidating Hong Kong's position as a global risk management center

On the 7th, Hong Kong SAR Financial Secretary Chen Maobo stated in a speech at the "Insurance Summit" that the government's vision is to consolidate Hong Kong's position as a global risk management center, including providing innovative tools to manage climate change-related risks. Chen Maobo pointed out that the policy address introduced more measures to promote the development of the insurance industry, including continuing to attract large state-owned enterprises and other major companies from the mainland to establish dedicated self-insurance companies in Hong Kong. He firmly believes that Hong Kong has the conditions to become a leading global risk management center. Chen Maobo expressed optimism about the prospects of Hong Kong's insurance industry, especially as the Greater Bay Area becomes increasingly affluent and the demand for high-quality insurance and investment products rises, supporting the industry in better seizing these cross-border business opportunities, including establishing after-sales service centers in Nansha and Qianhai to provide policy management and services for policyholders residing in Guangdong Province The "Management Measures for Strategic Investment by Foreign Investors in Listed Companies" will be implemented from December 2

At a regular press conference of the Ministry of Commerce, the spokesperson stated that recently, the Ministry of Commerce and six other departments issued the "Management Measures for Strategic Investment by Foreign Investors in Listed Companies." The new regulations lower the threshold for strategic investment and broaden investment channels, officially coming into effect on December 2.

Institution: In October, the brand shipment volume of televisions in China was 3.855 million units, a year-on-year increase of 3.1%

According to data released by Lottu Technology, in October 2024, the brand shipment volume of televisions in the Chinese market was 3.855 million units, the highest shipment month outside of January, achieving a three-month consecutive increase of 20.8%; in addition, it increased by 3.1% year-on-year, marking the first increase after eight months of year-on-year decline since February this year.

Hong Kong Monetary Authority injects HKD 1.1 billion liquidity into banks through the discount window

According to Zhitong Finance APP, on November 7, the Hong Kong Monetary Authority injected HKD 1.1 billion liquidity into banks through the discount window.

China Construction Machinery Industry Association: In October, sales of various excavators reached 16,791 units, a year-on-year increase of 15.1%

According to Zhitong Finance APP, the China Construction Machinery Industry Association reported that in October 2024, sales of various excavators reached 16,791 units, a year-on-year increase of 15.1%. Among them, domestic sales were 8,266 units, a year-on-year increase of 21.6%; exports were 8,525 units, a year-on-year increase of 9.46%. From January to October 2024, a total of 164,172 excavators were sold, a year-on-year increase of 0.47%; among them, domestic sales were 82,211 units, a year-on-year increase of 9.8%; exports were 81,961 units, a year-on-year decrease of 7.41%.

GAC Group (02238): Research and development results of all-solid-state batteries have been released, focusing on vehicle installation by 2026

GAC Group stated on the interactive platform that the research and development results of its all-solid-state batteries were released in April 2024, initially streamlining the entire manufacturing process of all-solid-state batteries. The company is focusing on vehicle installation by 2026 and is currently progressing according to plan. GAC Group mentioned that it is a comprehensive strategic partner with Huawei, maintaining close and extensive cooperation in multiple fields. In April 2024, GAC Trumpchi announced the Trumpchi-Huawei Joint Innovation Plan, with Trumpchi i-GTEC set to feature Huawei's QianKun intelligent driving system ADS 3.0 and the new generation Harmony cockpit, with multiple cooperative models to be launched in 2025. GAC Toyota is collaborating with Huawei's ecosystem to enhance the intelligent experience.

New Stock News | CiDi Inc. submits listing application to the Hong Kong Stock Exchange, focusing on the research and development of autonomous mining trucks, logistics vehicles, V2X technology, and high-performance perception solutions

According to Zhitong Finance APP, as disclosed by the Hong Kong Stock Exchange on November 7, CiDi Inc. submitted a listing application to the main board of the Hong Kong Stock Exchange, with China International Capital Corporation, CITIC Securities International, and Ping An Capital (Hong Kong) as its joint sponsors.

New Stock News | It is reported that Heng Rui Medicine (600276.SH) has selected Citigroup and Morgan Stanley to lead the Hong Kong IPO According to Zhitong Finance APP, leading A-share pharmaceutical company Heng Rui Medicine (600276.SH) is preparing for a Hong Kong IPO fundraising in 2025. Reports indicate that Heng Rui Medicine has selected Citigroup and Morgan Stanley to lead the Hong Kong IPO, aiming to raise approximately $2 billion (equivalent to HKD 15.55 billion).

Hua Hong Semiconductor (01347) reports a third-quarter profit attributable to shareholders of $44.8 million, a year-on-year increase of 222.6% and a quarter-on-quarter increase of 571.6%

Zhitong Finance APP reports that Hua Hong Semiconductor (01347) announced its third-quarter 2024 results, with sales revenue of $526.3 million, a year-on-year decrease of 7.4% and a quarter-on-quarter increase of 10%. The gross profit margin was 12.2%, a year-on-year decrease of 3.9 percentage points and a quarter-on-quarter increase of 1.7 percentage points. The profit attributable to shareholders was $44.8 million, a year-on-year increase of 222.6% and a quarter-on-quarter increase of 571.6%. The basic earnings per share were $0.026.

【Stock Highlights】

SMIC (00981) releases third-quarter results with a profit attributable to shareholders of $149 million, a year-on-year increase of 58.3%

Zhitong Finance APP reports that SMIC (00981) released its unaudited results for the three months ended September 30, 2024, with revenue of $2.171 billion, a year-on-year increase of 34%; profit attributable to shareholders was $149 million, a year-on-year increase of 58.3%; basic earnings per share were $0.02.

According to International Financial Reporting Standards, in the third quarter, the company's revenue increased by 14% quarter-on-quarter, reaching $2.17 billion, marking the first time it surpassed the $2 billion mark in a single quarter, setting a new historical high. The company added 21,000 pieces of 12-inch monthly capacity, further optimizing the product structure, with an increase in average selling price. The overall capacity utilization rate rose to 90.4%, and the gross profit margin increased to 20.5%. For the fourth quarter, the company provided guidance for revenue to remain flat to increase by 2% quarter-on-quarter, with a gross profit margin between 18% and 20%.

The overall capacity utilization rate continued to rise to 90.4% (in Q1 of this year, the capacity utilization rate was 80.8%, in Q2 it further increased to 85.2%, compared to 77.1% in the same period last year), and the gross profit margin increased to 20.5% (compared to 18.3% in the same period last year).

The Big Fund nominated Huang Dengshan to be appointed as a Class I director, who is the vice president of the National Integrated Circuit Industry Investment Fund.

【Disclaimer】This VIP information product is for communication and discussion purposes only and does not constitute any investment advice. Unauthorized reproduction is strictly prohibited. For more quality information and data products, please log in to the【Zhitong Finance】app.