Zhitong Hong Kong Stocks Early Knowledge | The Central Economic Work Conference is held, and 越疆 plans to globally issue approximately 40 million shares

[Today's Headlines]

Central Economic Work Conference: Implement more proactive macro policies, expand domestic demand, promote the integrated development of technological innovation and industrial innovation, stabilize the real estate and stock markets

The Central Economic Work Conference was held in Beijing from December 11 to 12. The conference emphasized adhering to the general principle of seeking progress while maintaining stability, fully and accurately implementing the new development concept, accelerating the construction of a new development pattern, solidly promoting high-quality development, further deepening reforms comprehensively, expanding high-level opening up, building a modern industrial system, better coordinating development and security, implementing more proactive macro policies, expanding domestic demand, promoting the integrated development of technological innovation and industrial innovation, stabilizing the real estate and stock markets, preventing and resolving risks in key areas and external shocks, stabilizing expectations, stimulating vitality, promoting sustained economic recovery, continuously improving people's living standards, maintaining social harmony and stability, achieving high-quality completion of the "14th Five-Year Plan" goals and tasks, and laying a solid foundation for a good start to the "15th Five-Year Plan."

[Market Outlook]

Mixed performance of popular Chinese concept stocks

Overnight, the U.S. stock market closed with the Dow Jones Industrial Average down 234.44 points from the previous trading day, closing at 43,914.12 points, a decline of 0.53%; the S&P 500 index fell 32.94 points, closing at 6,051.25 points, a decline of 0.54%; the Nasdaq Composite Index dropped 132.05 points, closing at 19,902.84 points, a decline of 0.66%. Most large technology stocks fell, with Nvidia, Netflix, and Google down over 1%; Apple and Microsoft saw slight increases, with the former reaching a record closing high.

Popular Chinese concept stocks showed mixed performance, with Tencent Music up over 2%, and Pinduoduo and Baidu up over 1%. On the downside, iQIYI and Youdao fell over 2%, and Nio dropped over 1%. The Hang Seng Index ADR fell, closing at 20,180.31 points, down 216.74 points or 1.06% compared to the Hong Kong close.

[Hot Topics Ahead]

Central Economic Work Conference: Implement moderately loose monetary policy, timely cut reserve requirements and interest rates to maintain ample liquidity

The Central Economic Work Conference was held in Beijing from December 11 to 12. The conference pointed out that moderately loose monetary policy should be implemented, with timely cuts in reserve requirements and interest rates to maintain ample liquidity, ensuring that the growth of social financing scale and money supply matches the economic growth and overall price level expectations. Explore and expand the macro-prudential and financial stability functions of the central bank. A policy combination should be effectively utilized, strengthening the coordination of fiscal, monetary, employment, industrial, regional, trade, environmental protection, and regulatory policies and reform measures, improving the effective communication and feedback mechanism among departments, and unifying economic and non-economic policies into a consistent macro policy orientation to enhance overall policy effectiveness.

Central Economic Work Conference: Next year, vigorously boost consumption and improve investment efficiency to expand domestic demand in all aspects

The Central Economic Work Conference was held in Beijing from December 11 to 12. The conference determined that next year, the following key tasks should be focused on: vigorously boost consumption, improve investment efficiency, and expand domestic demand in all aspects. Implement special actions to boost consumption, strengthen the implementation of new policies, provide greater support for dual projects, enhance the coordination of fiscal and financial policies, effectively drive social investment with government investment, vigorously implement urban renewal, and carry out special actions to reduce logistics costs across society Central Economic Work Conference: Continuously Promote the Stabilization of the Real Estate Market

According to CCTV News, the Central Economic Work Conference was held in Beijing from December 11 to 12. The conference proposed effectively preventing and resolving risks in key areas, firmly maintaining the bottom line of not allowing systemic risks to occur, continuously promoting the stabilization of the real estate market, strengthening the implementation of urban village and dilapidated housing renovations, and promoting the establishment of a new model for real estate development, while prudently handling risks of local small and medium-sized financial institutions.

GGII: In November, a total of 34 energy storage projects in China announced EPC/system bidding results, with BYD ranking first in system bidding scale

According to GGII's incomplete statistics, in November 2024, a total of 34 energy storage projects in China announced EPC/system bidding results, with a bidding scale of approximately 11.14 GWh, an increase of 19% compared to the previous month. The cumulative bidding capacity from January to November reached 109.41 GWh. The bidding unit price range for energy storage system procurement was between 0.439 yuan/Wh and 0.846 yuan/Wh, with an average price of 0.709 yuan/Wh, a month-on-month decrease of 34%, indicating a price retreat. The lowest bid came from the Xinjiang Tianshan North Slope New Energy Base Project III segment by Zhongneng, with BYD Auto Industry Co., Ltd. quoting 0.439 yuan/Wh. In terms of energy storage system project bidding, BYD won the bid for the Xinjiang Tianshan North Slope New Energy Base Project III segment, with a total bidding scale of 1.2 GWh, ranking first in system bidding scale.

International Energy Agency: OPEC+ Delay in Increasing Supply Will Not Prevent Oil Surplus Next Year

The International Energy Agency stated that despite OPEC+'s decision last week to delay increasing supply, the global oil market will still face a surplus next year. In its monthly report, the IEA predicted that if OPEC+ implements its production recovery plan starting in April, the global market will face a surplus of 1.4 million barrels per day. Even if OPEC+ completely cancels its production increase plans for next year, there will still be a surplus of 950,000 barrels per day. Amid low crude oil prices, OPEC+, led by Saudi Arabia and Russia, agreed again on December 5 to delay the resumption of previously suspended production plans and slow down the pace of production increases once they begin in the second quarter.

Battery Tariffs Double: Three Months Later, the U.S. Announces 50% Tariff on Chinese Polysilicon and Silicon Wafers

On December 11 local time, the U.S. Trade Representative's Office announced that the U.S. would increase tariffs on certain tungsten products, silicon wafers, and polysilicon imported from China under Section 301 of the Trade Act of 1974. The tariff rate on solar silicon wafers and polysilicon will be raised to 50%, with the tariff increase taking effect on January 1, 2025. Three months ago, the U.S. Trade Representative's Office had just announced that tariffs on solar cells from China would double. At that time, the U.S. stated that the tariff rate on solar cells imported from China would increase from 25% to 50%, with the new rate effective from September 27 of this year.

Rio Tinto to Invest $2.5 Billion to Expand Argentina's Rincon Lithium Project Capacity

On December 12, Rio Tinto announced that it had approved an investment of $2.5 billion to expand the Rincon lithium project located in Argentina. The annual production capacity of Rincon is 60,000 tons of battery-grade lithium carbonate, consisting of a 3,000-ton startup plant and a 57,000-ton expansion plant The factory expansion plan is scheduled to start construction in mid-2025, but it requires obtaining permits. It is expected to commence production for the first time in 2028, and then reach full production capacity after three years of enhancements.

Yuejiang (02432) plans to globally offer approximately 40 million shares, expecting to raise about HKD 720 million from the global offering

According to Zhitong Finance APP, Yuejiang (02432) will conduct its IPO from December 13 to December 18, 2024, planning to globally offer approximately 40 million shares, with 5% allocated for public offering in Hong Kong and 95% for international offering. The offer price will not exceed HKD 20.80 per share, and is currently expected to be no less than HKD 18.80 per share, with a minimum lot size of 200 shares. The shares are expected to start trading on the Hong Kong Stock Exchange at 9:00 AM on December 23, 2024 (Monday) Hong Kong time.

Chuangsheng Group-B (06628) announces the latest business progress on novel LIV-1 ADCs for treating anti-tumor effects in triple-negative breast cancer models at the 2024 SABCS

According to Zhitong Finance APP, Chuangsheng Group-B (06628) announced that the latest preclinical research results of novel antibody-drug conjugates (ADCs) based on humanized LIV-1 antibodies were presented at the 2024 San Antonio Breast Cancer Symposium (SABCS). The two ADCs, ADC-1 and ADC-2, utilize the company's proprietary antibodies designed with site-specific binding to topoisomerase I inhibitor payloads. These two ADCs demonstrated significantly higher tumor regression activity in triple-negative breast cancer (TNBC) tumor models compared to MMAE-based ADCs.

【Stock Highlights】

Mao Ge Ping (01318): Leading high-end domestic cosmetics brand

According to Frost & Sullivan, Mao Ge Ping is ranked 7th among high-end cosmetics groups in China by retail sales in 2023, being the only Chinese group in the top 10, with a market share of 1.8%; the Mao Ge Ping brand is ranked 12th among high-end cosmetics brands in China by retail sales in 2023, also the only Chinese brand in the top 15, with a market share of 1.8%.

The brand's core strategy is experiential marketing, with offline counters as the main channel, and professional techniques + makeup trial services leading to a repurchase rate far exceeding the industry average. The company uses online channels as an important carrier for content marketing to achieve efficient customer acquisition, while online channels also serve as an effective supplement for offline consumer repurchase & increase in related sales. In addition to the sale of cosmetics products, the company also has a makeup artistry training business, further differentiating itself from other brands in the professional field. The makeup artistry training business creates synergies with the company's product development and sales, enhancing brand reputation and influence in the professional field.

According to grassroots research, the sales commission for sales assistants is higher than that of foreign brands, reaching about 10%+, and store managers can accumulate store commissions, with high-performing beauty advisors (BAs) expected to earn better than foreign brands. Currently, for offline brand counters, the leading brands in the makeup counter segment are Lancôme and Chanel, while other high-end brands have faced pressure in recent years. Mao Ge Ping is in an upward phase, and the enthusiasm of sales assistants is relatively high The newly opened specialty store has been operating for over a year and is still in the growth phase. Currently, the member pool has about 2,000 people, with individual sales associates covering a maximum of about 600 people. Users range from 18 to 60 years old, and some younger users are brought by their mothers to experience purchasing, resulting in a wide age coverage among users.

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