Zhitong Hong Kong Stock Early Knowledge | New Housing Transaction Tax Policy Released, Tencent's Third Quarter Revenue Increased by 8% Year-on-Year

【Today's Headlines】

Tencent Holdings (00700): Q3 Revenue of RMB 167.19 billion, Up 8% Year-on-Year

Tencent Holdings reported Q3 revenue of RMB 167.19 billion, an 8% year-on-year increase, compared to market estimates of RMB 167.93 billion; the company's net profit for Q3 was RMB 53.23 billion, a 47% year-on-year increase, exceeding market estimates of RMB 45.33 billion; non-IFRS profit attributable to equity holders was RMB 59.81 billion, up 33% year-on-year. For the first three quarters, Tencent Holdings' operating revenue was RMB 487.81 billion, a 7% year-on-year increase; non-IFRS profit attributable to equity holders was RMB 167.39 billion, up 46% year-on-year.

In Q3, Tencent Holdings' international market game revenue increased by 5% quarter-on-quarter to RMB 14.5 billion, driven by revenue growth from games like "PUBG MOBILE." Domestic market game revenue increased by 8% quarter-on-quarter to RMB 37.3 billion, benefiting from revenue growth from games like "Peacekeeper Elite" and "Dungeon & Fighter: Origin." Social network revenue increased by 2% quarter-on-quarter to RMB 30.9 billion, due to increased sales of virtual items in mobile games. Tencent Holdings stated that as of the three months ending September 30, 2024, the company repurchased a total of 94,897,400 shares on the Hong Kong Stock Exchange at a total cost of approximately HKD 35.9 billion, and the repurchased shares have since been canceled.

【Market Outlook】

U.S. October CPI Hits Three-Month High

Overnight, U.S. stocks closed with the Dow Jones up 47.21 points, a 0.11% increase, closing at 43,958.19 points; the Nasdaq fell 50.66 points, a 0.26% decrease, closing at 19,230.74 points; the S&P 500 rose 1.39 points, a 0.02% increase, closing at 5,985.38 points. Amazon (AMZN.US) rose 2.4%, Trump Media & Technology Group (DJT.US) fell 5%, and NVIDIA (NVDA.US) dropped over 1%.

The Nasdaq Golden Dragon China Index closed down 1.09%, with Zhihu (ZH.US) up 13%, EHang (EH.US) up 9%, and Alibaba (BABA.US) up 0.2%. The U.S. October CPI hit a three-month high, reinforcing expectations for a 25 basis point rate cut by the Federal Reserve in December. The Hang Seng Index ADR fell slightly, closing at 19,823.45 points, down 23.43 points or 0.12% from the Hong Kong close.

【Hot Topics Ahead】

Hong Kong Stock Exchange Issues First No-Trading Signal Under Typhoon Policy with Signal No. 8 Issued Last Night

The Hong Kong Stock Exchange has implemented a "No Trading Suspension During Typhoon" policy since September 23, allowing the Hong Kong securities market to continue operating during severe weather. As Typhoon "Taozi" approached the Pearl River Estuary, the Hong Kong Observatory issued the No. 8 Gale or Storm Signal at 11:10 PM last night. This is the first time the Hong Kong Observatory has issued a No. 8 Gale or Storm Signal since the implementation of the "No Trading Suspension During Typhoon" policy. Under this policy, when Hong Kong issues a No. 8 or higher typhoon signal or a black rainstorm warning, investors can still buy and sell Hong Kong stocks and derivatives as usual, and can also trade mainland A-shares through the Shanghai and Shenzhen Stock Connect The Ministry of Finance and three other departments released new tax policies for housing transactions: For families purchasing their only or second home not exceeding 140㎡, the deed tax is paid at 1%

According to Zhitong Finance APP, on November 13, the Ministry of Finance and three other departments issued a notice regarding tax policies to promote the stable and healthy development of the real estate market. For individuals purchasing their only family home with an area of 140 square meters or less, the deed tax is levied at a reduced rate of 1%; for homes exceeding 140 square meters, the deed tax is levied at a reduced rate of 1.5%. For individuals purchasing their second family home, the deed tax is levied at a reduced rate of 1% for homes with an area of 140 square meters or less; for homes exceeding 140 square meters, the deed tax is levied at a reduced rate of 2%.

Domestic brain-computer interface product successfully implanted at Huashan Hospital in Shanghai; paralyzed patients can now get out of bed

On November 12, reporters from Shangguan News learned that the brain-computer interface product NEO, developed by Borui Kang Medical Technology (Shanghai) Co., Ltd. in collaboration with Professor Hong Bo's team from Tsinghua University's Department of Biomedical Engineering, completed the third clinical trial implantation surgery in the country and the first in Shanghai at Fudan University Huashan Hospital. The development and type testing of NEO were completed in Shanghai, and it became the first brain-computer interface product in China to enter the special review procedure for innovative medical devices in August this year. This surgery is the first human implantation surgery after the product entered the special review procedure. Currently, the patient who underwent the surgery is recovering well and was able to get out of bed and sit in a wheelchair three days post-operation.

Three departments: Local conditions should be considered to include hotel TV terminals in the local consumer goods trade-in subsidy scope

The National Radio and Television Administration, the Ministry of Commerce, and the Ministry of Culture and Tourism issued a notice on the work of trade-in for hotel TV terminals. It emphasizes strengthening policy and financial support. Provincial radio and television, commerce, culture, and tourism departments should attach great importance to the trade-in work for hotel TV terminals, actively seek support from provincial governments, and adapt to local conditions to include hotel TV terminals in the local consumer goods trade-in subsidy scope and in local home appliance trade-in work. They should reasonably determine the scale of support funds based on the total number of local hotels and guest rooms, the number of hotel TV terminals, and other factors, providing policy and financial support for the trade-in work of hotel TV terminals. This involves Hong Kong-listed companies such as TCL Electronics (01070), Xiaomi Group (01810), and Skyworth Group (00751).

China's express delivery industry development index increased by 21.1% year-on-year in October

According to estimates, the express delivery development index in China for October 2024 is 464.4, an increase of 21.1% year-on-year. Both the volume and revenue of express delivery services have achieved rapid growth, with the service quality index increasing by 20.9% year-on-year. The public satisfaction with express delivery services is expected to be 84.3 points, and the on-time delivery rate within 72 hours is also expected to be 84.3%. The development capability index increased by 3.7% year-on-year, with improvements in infrastructure construction, air network construction, and cross-border service capabilities. The development trend index increased by 6% year-on-year, and the industry is expected to maintain rapid growth in November.

CICC and Galaxy's stock price fluctuations reignite merger rumors; both parties respond: The company is not yet aware Insiders close to China International Capital Corporation (CICC) speculate that "the merger and reorganization plans of the two companies are about to be finalized. Internal news indicates that CICC Wealth will be incorporated into China Galaxy, while CICC will remain independent."

Ganfeng Lithium (01772): The first phase of the Goulamina spodumene project in Mali, Africa, is expected to officially start production in December

According to Zhitong Finance APP, Ganfeng Lithium (002460.SZ) disclosed an announcement regarding abnormal fluctuations in A-share stock trading. The first phase of the Goulamina spodumene project, under its controlling subsidiary Mali Lithium B.V, has completed construction and entered the trial production stage, with official production expected to commence in December this year. Additionally, based on general authorization, the company is planning to conduct debt financing, with related debt financing instruments including but not limited to short-term financing bonds, ultra-short-term financing bonds, medium-term notes, and H-share convertible bonds, to supplement operating funds and optimize the debt structure.

Sinopec Hydrogen Energy Machinery Co., Ltd. Established

On November 12, Sinopec Hydrogen Energy Machinery Co., Ltd. was established with a registered capital of 100 million yuan. The hydrogen energy machinery company is established to closely follow Sinopec's development strategy of building "China's first hydrogen energy company," responding to the market demand for hydrogen energy equipment, accelerating the transformation of the hydrogen energy equipment industry into market-oriented entities, and rapidly expanding the new hydrogen energy equipment industry.

Aluminum Corporation of China International (02068): Shenyang Institute signs the general contracting agreement for the 350,000-ton green electricity aluminum project in Zaha Nuoer, Tongliao City

According to Zhitong Finance APP, Aluminum Corporation of China International (02068) announced that on September 23, 2024, its wholly-owned subsidiary Shenyang Aluminum Magnesium Design Research Institute Co., Ltd. (leading party, hereinafter referred to as "Shenyang Institute") signed a general contracting agreement for the 350,000-ton green electricity aluminum project in Zaha Nuoer, Tongliao City, with China 22nd Metallurgical Group Co., Ltd. (hereinafter referred to as "22nd Metallurgy"), its wholly-owned subsidiary China Nonferrous Metal Industry Sixth Metallurgical Construction Co., Ltd. (hereinafter referred to as "Sixth Metallurgy"), and Yunnan Construction Investment Machinery Manufacturing and Installation Engineering Co., Ltd. (hereinafter referred to as "Yunnan Construction Investment Machinery"), forming a consortium.

CGN Zhejiang San'ao Nuclear Power Project Unit 1 Cold Test Successfully Completed

At 16:18 on November 13, the cold performance test of Unit 1 of the CGN Zhejiang San'ao Nuclear Power Project was successfully completed, with the primary circuit pressure boundary intact and well-sealed, marking the transition of the nuclear power unit from the installation phase to the debugging phase. The cold test, or cold performance test, is one of the important milestone nodes in the construction of nuclear power plants. The San'ao Nuclear Power Project is located in Cangnan County, Wenzhou City, Zhejiang Province, and is the first "Hualong One" nuclear power project in the Yangtze River Delta region, planning to build six "Hualong One" units. This involves CGN Power (01816).

[Stock Highlights]

Alibaba Health (00241) Releases Interim Results, Adjusted Net Profit Increases to 978 million yuan, a Year-on-Year Increase of 52.2%

According to Zhitong Finance APP, Alibaba Health (00241) released its interim results for the six months ending September 30, 2024, with the group achieving revenue of 14.274 billion yuan (same unit below), a year-on-year increase of 10.2%; profit attributable to the parent company was 769 million yuan, a year-on-year increase of 72.45% Basic earnings per share of 4.79 cents