Zhitong Hong Kong Stock Early Knowledge | China Securities Regulatory Commission: "All negative news will be released before January 15" is a rumor; S&P and Nasdaq recorded five consecutive declines

[Today's Headlines]

China Securities Regulatory Commission: "All negative news will be released before January 15" and "Insurance companies redeeming large amounts of public funds" are both rumors.

Question: There are market rumors today that regulatory authorities have instructed listed companies to release all negative news before January 15, and that insurance companies are redeeming large amounts of public funds. What is the view of the China Securities Regulatory Commission? Answer: This information is all rumors. We have noticed the related false information and have arranged to investigate the source of the news according to the law, and will severely crack down on the fabrication and dissemination of stock market rumors in accordance with the law, continuously purifying the information dissemination environment of the capital market.

[Market Outlook]

U.S. stock market opens in the red in 2025, S&P and Nasdaq record five consecutive daily declines.

Overnight, the Dow Jones Industrial Average fell 151.95 points from the previous trading day, closing at 42,392.27 points, a decline of 0.36%; the S&P 500 index fell 13.08 points, closing at 5,868.55 points, a decline of 0.22%; the Nasdaq Composite Index fell 30.00 points, closing at 19,280.79 points, a decline of 0.16%. Large tech stocks showed mixed results, with Tesla down over 6% due to fourth-quarter delivery numbers falling short of expectations; Apple fell 2.62%, marking its largest single-day decline since October last year; popular Chinese concept stocks were mixed, with the Nasdaq Golden Dragon China Index down 1.51%. ZEEKR and New Oriental fell over 4%, while Vipshop, Weibo, and XPeng fell over 2%; Nio rose over 4%, and Kingsoft Cloud rose over 2%. The Hang Seng Index ADR fell, closing at 19,621.74, down 1.58 points or 0.01% compared to the Hong Kong close.

[Hot Topics Ahead]

National Medical Products Administration approves China's first stem cell therapy drug for market.

The National Medical Products Administration has conditionally approved the market launch of China's first stem cell therapy drug, Aimi Maitosai Injection, through a priority review and approval process, for the treatment of acute graft-versus-host disease primarily affecting the digestive tract in patients over 14 years old who have failed hormone therapy. It is reported that graft-versus-host disease is one of the main complications after allogeneic hematopoietic stem cell transplantation, and severe cases can lead to death. This drug will be available as a prescription medication in hospitals for the treatment of corresponding diseases, providing new treatment options for patients. Related Hong Kong-listed companies involved in hematopoietic stem cells include: Fosun Pharma (02196), Shanghai Pharmaceuticals (02607).

HSBC strategist Kettner expects volatility in risk asset trading in January.

HSBC strategists state that concerns over persistent inflation and increased bond supply may trigger market volatility in the coming weeks, leading to further weakness in risk assets. The team led by Max Kettner indicates that they have not yet bought stocks or credit bonds on dips, as they are waiting for sentiment and positioning indicators to emit weak buy signals. They maintain their expectation of a "Goldilocks" scenario in the first half of 2025, as the fundamentals remain solid.

In the first 11 months of 2024, China's smartphone production increased by 9.3% year-on-year.

The latest data released by the Ministry of Industry and Information Technology shows that from January to November 2024, China's electronic information manufacturing industry experienced rapid production growth, with the added value of above-scale electronic information manufacturing industry increasing by 12.2% year-on-year Among the main products, the mobile phone output reached 1.504 billion units, a year-on-year increase of 8.9%, of which the smartphone output was 1.117 billion units, a year-on-year increase of 9.3%. Data shows that from January to November 2024, the revenue of the electronic information manufacturing industry above designated size reached 14.45 trillion yuan, a year-on-year increase of 7.2%; the total profit reached 565.3 billion yuan, a year-on-year increase of 2.9%, with stable and improving efficiency.

Ministry of Industry and Information Technology solicits opinions: New energy vehicles with a low-temperature endurance decay rate of less than 35% will receive 1.2 times credit incentives

The Ministry of Industry and Information Technology has publicly solicited opinions on the "Requirements for the Average Fuel Consumption and New Energy Vehicle Credit Management of Passenger Car Enterprises for the 2026-2027 Fiscal Year." It aims to optimize and adjust the technical indicators required for new energy vehicle models. Considering technological advancements and standard updates, the requirements will be appropriately raised. For pure electric vehicle models, first, the energy consumption assessment requirements will be optimized. Given that GB 36980.1 "Limits of Energy Consumption for Electric Vehicles Part 1: Passenger Cars" has set energy consumption threshold requirements for models, to strengthen policy standard coordination, it is considered to use 85% of the standard limit as the energy consumption target value. For models that do not meet the standard limit, the energy consumption adjustment coefficient will be calculated at 0.5; for models that exceed the target value, it will be calculated based on the ratio of the target value to the actual value, with a maximum of 1.2 times; for models that exceed the limit but do not meet the target value, it will be calculated at 1 time. Second, a new low-temperature endurance decay rate coefficient will be added. To guide industry enterprises to continuously improve the low-temperature performance of new energy vehicle products and maintain coordination with the vehicle purchase tax exemption policy, a credit incentive of 1.2 times will be given for low-temperature endurance decay rates below 35%. For plug-in hybrid models, to promote product energy efficiency improvement and support green low-carbon consumption, the fuel consumption requirement under the electric power maintenance mode will be tightened from 70% of the fuel consumption limit to 60%, and the energy consumption requirement under the electric power consumption mode will be tightened from 135% of the energy consumption target value to 130% of the energy consumption limit. For fuel cell models, the requirements for fuel cell stacks, system rated power, and starting temperature will be raised to align with policies such as vehicle purchase tax exemptions.

Optimize and adjust the technical indicators required for new energy vehicle models. Increase the reward for low fuel consumption models. Considering the objective circumstances such as the tightening of the sixth phase fuel consumption targets and the increasing difficulty for enterprises to meet standards, in the calculation of new energy vehicle credit compliance for 2026 and 2027, the calculation multiple for low fuel consumption models will be reduced to 0.1 times per vehicle to support enterprises in continuously improving energy-saving technology levels. Continue to implement accounting preferences for small-scale enterprises. Based on industry enterprise opinions, the current level of preferential treatment will be maintained in 2026 and 2027. Continue to provide fuel consumption accounting preferences for external energy-saving technologies and update the technical catalog in conjunction with standard formulation and revision situations to continuously guide enterprises to increase the application of energy-saving technologies.

Alibaba-W (09988) still has a repurchase quota of $20.7 billion under the share repurchase plan as of the end of the 2024 fiscal year

According to Zhitong Finance APP, Alibaba-W (09988) announced that during the quarter ending December 31, 2024, the group repurchased a total of 119 million ordinary shares (equivalent to 15 million American depositary shares) at a total price of $1.3 billion. These repurchases were conducted in the U.S. market under the group's share repurchase plan Guotai Junan Wins the Central Bank's Second Batch of Swap Facility Operations

According to reports, Guotai Junan has once again won the bid for the Central Bank's second batch of swap facility operations, with a winning bid rate of 10 basis points. The underlying assets for the swap are all central bank bills, and the winning amount significantly exceeds the previous round. Guotai Junan is one of the first institutions approved to participate in the "swap facilities for securities, funds, and insurance companies" operations, and during the first operation, it completed an increase in A-share transactions, including the first market-wide government bond swap transaction and the first batch of market-wide government bond pledge-style repurchase transactions under the swap facility. Guotai Junan stated that it will fully utilize the swap facility tools, leverage the professional advantages of securities companies, and actively fulfill the social responsibilities of financial institutions.

Construction of the World's Largest Compressed Air Energy Storage Power Station Begins

On January 2, reporters learned from China Huaneng Group Co., Ltd. that the second phase of the Huaneng Jintan Salt Cavern Compressed Air Energy Storage Power Generation Project officially began construction in Changzhou, Jiangsu. Once completed, it will become the world's largest compressed air energy storage power station in terms of single-unit power, total capacity, and comprehensive efficiency. This involves Huaneng International Power Co., Ltd. (00902) listed in Hong Kong.

Beijing's Land Market Welcomes Its First Auction in 2025, Haidian District's Two Unrestricted Price Plots Raise Over 18.1 Billion

Beijing's land auction market welcomes the "king bomb" combination in Haidian for 2025, consisting of the Zhu Fang Village Urban Renewal Phase II HD-0803-0029 and 0030 plots. The total starting price for the two unrestricted price plots is 15.03 billion yuan, with a final transaction price totaling 18.1924 billion yuan and an average premium rate of 21.04%. Among them, plot 0029 was won by a consortium of China Resources, China Railway Real Estate, and China Merchants after 161 rounds of bidding, with a transaction price of 9.152 billion yuan and a premium rate of 17.33%, resulting in a transaction floor price of 89,234 yuan/square meter. Plot 0030 was won by Jianfa at a price of 9.0404 billion yuan after 244 rounds of bidding, with a premium rate of 25.04%, resulting in a transaction floor price of 95,047 yuan/square meter.

New Stock News | Morgan Stanley Expects CATL (300750.SZ) to Raise Up to HKD 60 Billion in Hong Kong Listing, Challenging Hong Kong's Top Ten IPOs

According to Zhitong Finance APP, CATL (300750.SZ) recently announced its plan to issue overseas listed foreign shares and apply for listing on the main board of the Hong Kong Stock Exchange. The number of Hong Kong shares issued will not exceed 5% of the total share capital after issuance, and there is an over-allotment option of up to 15% of the issued Hong Kong shares. Morgan Stanley, referencing companies that have recently completed dual listings of H-shares, estimates that the average discount to A-share prices is 10% to 20%, and expects CATL's Hong Kong IPO fundraising amount to reach USD 6.8 billion to 7.7 billion (equivalent to HKD 52.9 billion to 59.8 billion).

[Stock Highlights]

Zhaoke Ophthalmology-B (06622): National Medical Products Administration Accepts Simplified New Drug Application for NVK002 for Treating Children's Myopia Progression

Zhitong Finance APP reports that Zhaoke Ophthalmology-B (06622) announced that the National Medical Products Administration of China has accepted the simplified new drug application for NVK002 (low-dose atropine 0.01%), one of the company's core products used for treating children's myopia progression Zhaoke Ophthalmology announced positive top-line results for TAB014 (one of the company's core candidate drugs) in the Phase III clinical trial for age-related macular degeneration (wAMD). The trial successfully achieved its primary endpoint and key secondary endpoints.

The Phase III clinical trial of TAB014 is a randomized, double-blind, and non-inferiority study, with the primary objective of assessing the change from baseline in best-corrected visual acuity (BCVA) at week 52 in the group receiving TAB014 compared to the group receiving Lucentis. The study involved approximately 57 centers and a total of 488 patients, with Professor Chen Youxin from Peking Union Medical College Hospital serving as the lead principal investigator.

wAMD is the leading cause of vision loss in individuals over 50 in China and globally. The market for wAMD drugs in China is expected to grow from USD 242 million in 2019 to approximately USD 3.5 billion by 2030, with a compound annual growth rate of 27.5%. TAB014 is the first antibody in clinical development in China, and this therapy is expected to be cost-effective. According to the announcement, under a supplementary agreement with Dongyao Pharmaceutical Co., Ltd., Zhaoke (Guangzhou) Ophthalmology Pharmaceutical Co., Ltd. will have full control over the clinical trial of TAB014 and final decision-making authority regarding the development and commercialization of TAB014 in Hong Kong, Macau, and mainland China, while Dongyao Suzhou will continue to be responsible for the production of TAB014. The company reminds shareholders and potential investors that there is no guarantee that TAB014 will ultimately be commercialized successfully and advises caution when buying or selling the company's shares.

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