Hong Kong Stock Early Insights | Central Bank Meeting Emphasizes Timely Reserve Requirement Ratio and Interest Rate Cuts, Spring Festival Travel Product Bookings Increase by 40% Month-on-Month

[Today's Headlines]

Central Bank: Implement Appropriate and Moderate Easing Monetary Policy, Timely Cut Reserve Requirement Ratio and Interest Rates

On December 16, the Party Committee of the People's Bank of China held a meeting to convey and study the spirit of the Central Economic Work Conference, and to research and clarify measures for implementation according to the deployment of the National Financial System Work Conference. The meeting was chaired by Pan Gongsheng, Secretary of the Party Committee and Governor of the People's Bank of China, with attendance from all committee members.

Comprehensively use various monetary policy tools, timely cut the reserve requirement ratio and interest rates, maintain ample liquidity, and ensure that the growth of social financing scale and money supply aligns with economic growth and the expected targets for overall price levels. Guide banks to fully meet effective credit demand and enhance the stability of credit growth. Strengthen the execution and transmission of interest rate policies to promote a steady decline in the comprehensive financing costs of society. Enhance the resilience of the foreign exchange market, stabilize market expectations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

The meeting emphasized the steady advancement of financial reform and high-level opening up. Progressively promote the institutional opening of the financial services industry and financial markets, advance the construction of a multi-level bond market, and enhance the functions of financial markets and their ability to serve the real economy. Prudently and solidly advance the internationalization of the RMB, further enhance the international monetary functions of the RMB in cross-border payments, investment and financing, reserves, and pricing. Improve the competitiveness of the RMB cross-border payment system. Deepen the reform and opening up in the foreign exchange field to facilitate cross-border trade and investment. Actively participate in international financial governance and cooperation, promote global macro policy coordination, and the formulation of international financial rules. Pragmatically carry out bilateral financial work with the U.S. and Europe. Support the construction and development of the Shanghai International Financial Center, and consolidate and enhance the status of Hong Kong as an international financial center. Adhere to the coordinated development and security, and maintain national financial security.

[Market Outlook]

Nasdaq Up 1.24%, Tesla (TSLA.US) Total Market Value Approaches $1.5 Trillion

Overnight, U.S. stocks closed with the Dow down 110.58 points, a decrease of 0.25%, closing at 43,717.48 points; the Nasdaq rose 247.17 points, an increase of 1.24%, closing at 20,173.89 points; the S&P 500 index rose 22.99 points, an increase of 0.38%, closing at 6,074.08 points. Nvidia (NVDA.US) fell 1.6%, while Tesla (TSLA.US) rose 6.1%, with a total market value approaching $1.5 trillion. The Nasdaq China Golden Dragon Index closed down 2.1%, with Alibaba (BABA.US) down 2%. The Hang Seng Index ADR fell, closing at 19,685.49, down 110 points or 0.56% compared to the Hong Kong closing.

This week, investors will focus on the results of the Federal Reserve's December monetary policy meeting, as well as the policies and impacts of President-elect Trump.

[Hot Topics Ahead]

U.S. Announces Additional 301 Tariffs on Tungsten Products, Polysilicon, and Other Imports from China; Ministry of Commerce Responds

Q: On December 11, the U.S. Trade Representative's Office (USTR) announced additional 301 tariffs on tungsten products, polysilicon, and other imports from China, effective January 1, 2025. What is the Ministry of Commerce's comment on this? A: China's position against unilateral tariff measures has been consistent, and we have repeatedly made solemn representations to the U.S. side State Council: Special bonds allowed for land reserves and support for the acquisition of existing commercial housing

On December 16, Premier Li Qiang presided over a State Council executive meeting to arrange the implementation of the decisions made at the Central Economic Work Conference; it deployed the optimization and improvement of the management mechanism for local government special bonds; the meeting pointed out that a "negative list" management for the investment areas of local government special bonds should be implemented, allowing them to be used for land reserves and supporting the acquisition of existing commercial housing for affordable housing.

Ministry of Finance: Securities transaction stamp duty reached 108.7 billion yuan from January to November, down 35.9% year-on-year

From January to November, the national general public budget revenue was 19,901 billion yuan, a year-on-year decrease of 0.6%. Among them, national tax revenue was 16,192.2 billion yuan, a year-on-year decrease of 3.9%; non-tax revenue was 3,708.8 billion yuan, a year-on-year increase of 17%. In terms of central and local, the central general public budget revenue was 89,382 billion yuan, a year-on-year decrease of 2.5%; local general public budget revenue was 109,628 billion yuan, a year-on-year increase of 1.1%.

China Securities Association: The scale of securities companies' cross-border business should match their own business capabilities

The China Securities Association recently held a plenary meeting of the International Cooperation Professional Committee. The meeting believed that securities companies should adhere to prudent operations, focus on compliance risk management, and the scale of the company's cross-border business should match its own risk management capabilities and market-oriented professional business capabilities, actively taking on the responsibility of "serving national strategies and supporting the real economy," and assisting in the high-quality opening of China's capital market.

National Radio and Television Administration: Approval for the establishment of TV drama production units canceled to guide more institutions to participate in TV drama creation and production

The cancellation of the approval for the establishment of TV drama production units is conducive to strengthening and improving the management and services of TV dramas, perfecting the service, guidance, and organization mechanisms for TV drama creation and production, promoting the combination of producing results and cultivating talent, and guiding more institutions to participate in TV drama creation and production, stimulating innovation and development vitality in the TV drama industry.

Spring Festival travel product bookings increased by 40% month-on-month

Data from several online travel platforms and travel agencies show that the 8-day holiday has sparked citizens' enthusiasm for traveling during the Spring Festival, with bookings for Spring Festival travel already starting. Qunar pointed out that December is a good time to book flights, and by December 30, some routes will experience tight seat availability. Train tickets for New Year's Eve will go on sale after January 13, 2025, and flight prices are expected to rise significantly. According to data from Tongcheng Travel, starting from January 20, 2025, the average flight price will see a second round of increases before the festival, reaching a pre-festival peak between January 23 and 27, with average flight prices expected to rise by 80% to 90% compared to usual, and ticket prices for popular routes increasing by over 100%. In terms of group travel, as of now, Tuniu Travel's booking data shows that the booking volume for Spring Festival group travel products in the second week of December increased by 40% compared to the previous week, with bookings for flights and hotels increasing by over 50% month-on-month, and bookings for packaged travel products such as self-driving tours and free travel increasing by nearly 40% month-on-month China Successfully Launches Satellite Internet Low Earth Orbit Satellites

At 18:00 on December 16, China successfully launched the Satellite Internet Low Earth Orbit Group 01 satellites using the Long March 5B rocket/Yuan Zheng 2 upper stage from the Wenchang Space Launch Site. The satellites successfully entered their designated orbits, and the launch mission was a complete success.

Shui Fa Xing Ye Energy (00750) Signs Investment Agreement with China Cinda (01359)

According to Zhitong Finance APP, Shui Fa Xing Ye Energy (00750) announced that on December 16, 2024 (after trading hours), China Cinda (01359) and Xing Ye Holdings (a wholly-owned subsidiary of the company) signed an investment agreement. According to this agreement, the parties have agreed on sale matters, restructuring matters, and capital contributions. Through the sale matters (as further investment by China Cinda into the group), China Cinda will indirectly acquire 40.05% (i.e., 19.2% actual equity) of the 48% equity in Shui Fa Clean Energy that the group will inject into the investment company. The restructuring matters will convert the controlling companies of Xinjiang Xing Ye's 99.38% equity and Wuwei Dongrun's 99.48% equity, but do not involve any acquisitions or sales by the group. The capital contributions (i.e., Xing Ye Holdings and China Cinda respectively committing to inject approximately RMB 158 million and RMB 63.3419 million in cash into the investment company) have been agreed upon under the investment agreement.

China Minsheng Bank (01988): New Hope Liuhe and its concerted parties Increase Shareholding to 5%

China Minsheng Bank (01988) announced on the evening of December 16 that, with the approval of the National Financial Regulatory Administration, New Hope Liuhe Co., Ltd. is allowed to increase its holdings of no more than 68 million shares of the bank through the secondary market within six months from the date of approval. On December 16, New Hope Liuhe increased its holdings by 17.6165 million H shares of the bank through centralized bidding, accounting for 0.04% of the bank's total share capital. Before this change, New Hope Liuhe and its concerted parties held 4.96% of the bank's shares. After the change, New Hope Liuhe and its concerted parties hold 5% of the bank's shares.

Hansoh Pharmaceutical (03692): B7-H3 Targeted Antibody Drug Conjugate HS-20093 Receives EMA Priority Medicine Designation

According to Zhitong Finance APP, Hansoh Pharmaceutical (03692) announced that GSK's GSK5764227 (GSK’227, also known as HS-20093) has received Priority Medicine (PRIME) designation from the European Medicines Agency (EMA). This B7-H3 targeted antibody drug conjugate (ADC) is being evaluated for the treatment of patients with relapsed extensive-stage small cell lung cancer (ES-SCLC).

Huaxin Cement (06655) Plans to Spend Approximately $186.6 Million to Acquire Four Aggregate Plants in Brazil

According to Zhitong Finance APP, Huaxin Cement (06655) announced that on December 16, 2024, the buyer (the company's wholly-owned subsidiary Huaxin (Hainan) Investment Co., Ltd.) signed a share acquisition agreement with the seller (an independent third party). According to this agreement, the buyer intends to acquire 100% equity of ITATUBA PARTICIPAÇÕES LTDA (Target Company A) and EMBU S.A. from the seller ENGENHARIA E COMÉRCIO Company (Target Company B 40% equity) 40% equity, with a total consideration of approximately USD 186.6 million (adjusted based on the net cash and operating capital in the financial statements on the delivery date). As of the date of this announcement, Target Company A holds 60% equity in Target Company B.

China Tobacco Hong Kong (06055) issues profit warning, expecting annual profit attributable to shareholders to increase by no less than 30% year-on-year

According to Zhitong Finance APP, China Tobacco Hong Kong (06055) announced that due to deepening existing businesses, striving to explore new businesses, and continuously enhancing comprehensive profitability, the group expects to achieve an increase in profit attributable to equity holders of no less than 30% for the year ending December 31, 2024 (this year) compared to 2023.

Shangao New Energy (01250) approved for 300 MW wind and photovoltaic project indicators in Shanxi

According to Zhitong Finance APP, Shangao New Energy (01250) announced that in early December 2024, the group received a notice from the Shanxi Provincial Energy Bureau regarding the "Annual Construction Plan for Guaranteed Grid Connection of Wind and Photovoltaic Power Generation in Shanxi Province for 2024," notifying the group of the approval for a 100 MW wind power project in Linfen City, a 100 MW wind power project in Yuncheng City, and a 100 MW photovoltaic power generation project in Changzhi City, totaling 300 MW of centralized wind and photovoltaic power generation project indicators.

Yuewen Group (00772) subsidiary Qidian International adds over 2,000 AI translation works this year, a year-on-year increase of 20 times

At the opening ceremony of the 3rd Shanghai International Online Literature Week, it was reported that as of the end of November 2024, Yuewen Group (00772) subsidiary Qidian International has launched approximately 6,000 translated works of Chinese online literature, with over 2,000 new AI translation works added this year, a year-on-year increase of 20 times. Qidian International has accumulated nearly 300 million overseas visiting users, with reading volume exceeding 10 million works, a year-on-year increase of 73%. Among its contracted authors, those born after 2000 account for 45%, with 680,000 overseas original works and 449,000 overseas original authors, and the number of top authors has increased by nearly 30% year-on-year.

Huahong Semiconductor (01347) shareholder Xinxin Hong Kong reduces approximately 17.7348 million H shares

According to Zhitong Finance APP, Huahong Semiconductor (01347) announced that the company recently received a notice from shareholder Xinxin Hong Kong, stating that from December 3, 2024, to December 13, 2024, Xinxin Hong Kong will reduce approximately 17.7348 million H shares of the company through block trading on the Hong Kong Stock Exchange.

Yuan Da Pharmaceutical (00512) ophthalmic innovative drug NDA application accepted domestically, expected to fill the market gap for Demodex blepharitis treatment in China

According to Zhitong Finance APP, following the approval for listing in the United States last July, the first and only drug approved by the FDA for Demodex blepharitis, GPN01768, has also made phased progress in its listing process in China.

[Stock Highlights]

Hepalink Pharmaceutical-B (02142): Reached a development cooperation with Candid on a new generation T cell connector According to the announcement from Zhitong Finance APP, HAPO Pharmaceuticals-B (02142) stated that its wholly-owned subsidiary, Nona Biotech (Suzhou) Co., Ltd. (Nona Biotech), has reached a research collaboration and licensing agreement with Candid Therapeutics, Inc. (Candid) for the development of the next-generation T-cell connector (product). Under the terms of the agreement, Nona Biotech is entitled to receive an upfront payment and potential milestone payments of up to $320 million. Candid will be responsible for all subsequent development work on the product