Zhitong Hong Kong Stock Early Knowledge | Wall Street major banks delay expectations for the end of balance sheet reduction, SANY International issues profit warning

[Today's Headlines]

Federal Reserve Meeting Minutes Show Wall Street Banks Delay Expectations for Ending Balance Sheet Reduction

According to the minutes of the Federal Reserve's most recent policy meeting, Wall Street's large banks have delayed their expectations for the end of the Fed's balance sheet reduction actions. The minutes from the December Federal Open Market Committee meeting indicate that the banking sector informed the Fed before the December policy meeting that they believed this process would conclude in June of this year, slightly later than what they communicated before the November policy meeting.

At this meeting, the Fed did not announce any new information regarding the balance sheet reduction. However, the Fed did make a technical adjustment to the interest rate paid on its reverse repurchase mechanism to encourage money market funds and other institutions to move cash from the Fed's accounts to the private market. The minutes show that many view 2025 as the year the Fed will end its asset reduction through quantitative tightening, coinciding with the latest expectations for the Fed's balance sheet.

The December meeting minutes reveal that nearly all decision-makers believe the risks to the inflation outlook are increasing, and Fed officials did not discuss the possibility of raising interest rates in December. Officials believe that if inflation remains high, the Fed may keep rates unchanged or ease monetary policy at a slower pace.

[Market Outlook]

U.S. Stock Market to Close on January 9

Overnight, the Dow Jones Industrial Average closed up 106.84 points, an increase of 0.25%, at 42,635.20 points; the Nasdaq fell 10.80 points, a decrease of 0.06%, at 19,478.88 points; the S&P 500 index rose 9.21 points, an increase of 0.16%, at 5,918.24 points.

Tesla (TSLA.US) and Apple (AAPL.US) saw slight increases, while Novavax (NVAX.US) fell by 11.2%. The Nasdaq China Golden Dragon Index closed down 0.67%, with NetEase (NTES.US) rising nearly 3% and XPeng (XPEV.US) dropping over 5%.

In honor of the 39th President of the United States, Jimmy Carter, the U.S. stock market will be closed on January 9.

[Hot Topics Ahead]

Insiders Say Trump Considering Declaring National Economic Emergency to Launch New Tariff Plan

Four insiders have stated that Trump is considering declaring a national economic emergency to provide legal grounds for imposing widespread tariffs. This declaration would allow Trump to utilize the International Emergency Economic Powers Act to establish a new tariff plan, which grants the president unilateral authority to manage imports during a national emergency. One source noted that Trump favors this law because it provides broad jurisdiction over how tariffs are implemented without strict requirements to prove that tariffs are for national security reasons. Trump's transition team did not respond to requests for comment.

Hong Kong SAR Government: Welcomes Legislative Council's Passage of Company Amendment Bill

The Hong Kong SAR government issued a statement welcoming the Legislative Council's passage of the "2024 Companies Bill," allowing listed companies established in Hong Kong to hold and dispose of repurchased shares in inventory under specific restrictions, and promoting paperless corporate communications for all companies. The Secretary for Financial Services and the Treasury, Christopher Hui, stated that these two measures will help enhance Hong Kong's competitiveness as an international business and financial center The revised regulations were published on the 17th of this month. To allow companies sufficient preparation time, the new arrangements will take effect three months after the publication of the revised regulations.

State-owned Assets Supervision and Administration Commission: Vigorously develop artificial intelligence and accelerate the establishment of a system and mechanism suitable for the development of artificial intelligence

Tan Zuojun, a member of the Party Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, attended the graduation ceremony of the special training class for artificial intelligence of central enterprises held at the China Telecom Party School, stating that it is necessary to vigorously develop artificial intelligence and promote the high-quality development of central enterprises.

National Internet Information Office: As of December 31, 2024, a total of 302 generative artificial intelligence services have been filed with the National Internet Information Office

According to Wangxin China, in 2024, the internet information department, in conjunction with relevant departments, will continue to carry out the filing work for generative artificial intelligence services in accordance with the requirements of the "Interim Measures for the Management of Generative Artificial Intelligence Services." As of December 31, 2024, a total of 302 generative artificial intelligence services have been filed with the National Internet Information Office, including 238 newly filed in 2024; for generative artificial intelligence applications or functions that directly call the filed model capabilities through API interfaces or other methods, a total of 105 generative artificial intelligence applications or functions were registered with local internet information offices in 2024.

China Securities Association requires securities firms to report relevant information about internal accountability and incentive constraint mechanisms for practitioners

According to industry sources, the China Securities Association recently required all securities companies and securities investment consulting companies to report to the association by January 31 the internal accountability situation of practitioners, the implementation of incentive constraint mechanisms, investment behavior management, and the implementation of integrity and professionalism systems for the previous year. Among them, regarding the implementation of incentive constraint mechanisms, the China Securities Association requires a focus on verifying whether salary assessments and payments meet relevant regulatory requirements and self-discipline rules.

SEMI: Global semiconductor capacity is expected to increase by more than 6% year-on-year in 2025

According to the Science and Technology Innovation Board Daily on the 8th, the International Semiconductor Industry Association estimates that global semiconductor capacity will increase by 6.6% in 2025, reaching a monthly capacity of 33.6 million wafers. In response to the growing demand for computing, advanced process capacity below 7nm is expected to reach a monthly output of 2.2 million wafers, an annual increase of 16%. For mainstream processes from 8nm to 45nm, SEMI expects that driven by automotive and IoT applications, the monthly capacity will exceed 15 million wafers in 2025, an increase of 6%.

Passenger Car Association: Preliminary statistics show that retail sales of new energy passenger vehicles in December reached 1.379 million units, a year-on-year increase of 46%

According to preliminary statistics from the Passenger Car Association: from December 1 to 31, retail sales in the passenger car market reached 2.622 million units, a year-on-year increase of 11% compared to December last year, and a month-on-month increase of 9%. Cumulatively, retail sales for the year reached 22.88 million units, a year-on-year increase of 5%; from December 1 to 31, wholesale sales of passenger cars nationwide reached 3.064 million units, a year-on-year increase of 13% compared to December last year, and a month-on-month increase of 5%. Cumulatively, wholesale sales for the year reached 27.18 million units, a year-on-year increase of 6%.

From December 1 to 31, retail sales in the new energy passenger car market reached 1.379 million units, a year-on-year increase of 46% compared to December last year, and a month-on-month increase of 10%. Cumulatively, retail sales for the year reached 10.975 million units, a year-on-year increase of 42%; from December 1 to 31, wholesale sales of new energy passenger cars nationwide reached 1.5 million units, a year-on-year increase of 35% compared to December last year, and a month-on-month increase of 5%. Cumulatively, wholesale sales for the year reached 1, 2.218 million units, a year-on-year increase of 38%.

Hong Kong Stock Exchange: Bruker (00325) will continue to follow the listing schedule in the prospectus

According to Zhitong Finance APP, on January 8, the Hong Kong Stock Exchange's new stock settlement platform FINI experienced technical issues, which previously indicated that the listing date for Bruker (00325) was postponed from January 10 to January 13. The Hong Kong Stock Exchange stated that it is aware that the subscription status for Bruker's new shares was incorrectly displayed by the FINI platform and confirmed that the company's IPO process is still ongoing and will continue according to the listing schedule in the prospectus. Other new stock subscription statuses on FINI are displayed correctly, and the market will be informed of the latest news in due course.

China General Nuclear Power (01816) plans to acquire 100% equity of Taishan Nuclear Power II for approximately RMB 1.204 billion

Zhitong Finance APP reported that China General Nuclear Power (01816) announced that on January 8, 2025, the board of directors reviewed and approved the resolution for the company (as the acquirer) to enter into an equity transfer agreement with China General Nuclear (as the transferor). According to the equity transfer agreement, China General Nuclear agrees to sell and the company agrees to acquire 100% equity of Taishan Nuclear Power II, with a total consideration of approximately RMB 1.204 billion. Upon completion of the acquisition, Taishan Nuclear Power II will become a wholly-owned subsidiary of the company, and its financial performance will be consolidated into the group's financial statements.

China International Marine Containers (CIMC): Cumulatively increased its stake in subsidiary CIMC Enric (03899) by approximately 2.47%

CIMC announced on the evening of January 8 that between November 27, 2024, and January 7, 2025, the company further purchased a total of 20 million shares of CIMC Enric in the open market at an average price of HKD 6.7964 per share, accounting for approximately 0.986% of CIMC Enric's total issued shares. Prior to this increase, the company, through CIMC Hong Kong and its wholly-owned subsidiaries, held approximately 69.074% of CIMC Enric's shares. After this increase, the company, through CIMC Hong Kong and its wholly-owned subsidiaries, holds approximately 70.06% of CIMC Enric's shares. The company has cumulatively increased its holdings by a total of 50 million shares, accounting for approximately 2.47% of CIMC Enric's total issued shares.

Sany International (00631) issues profit warning: expects annual net profit of RMB 1.011 billion to RMB 1.379 billion, a year-on-year decrease of approximately 25% to 45%

Zhitong Finance APP reported that Sany International (00631) announced that it expects that for the year ending December 31, 2024, the group's oil and gas equipment business cash-generating unit (oil and gas equipment business) will record a goodwill impairment loss of approximately RMB 470 million; and the group's assets held for sale will record an impairment loss of approximately RMB 280 million.

Anta Sports (02020): In 2024, Anta brand retail sales achieved high single-digit positive growth year-on-year

Anta Sports announced on the Hong Kong Stock Exchange that for the entire year of 2024, the retail sales of Anta brand products achieved high single-digit positive growth compared to 2023. The retail sales of the FILA brand achieved mid-single-digit positive growth year-on-year. All other brand product retail sales achieved a year-on-year increase of 40-45% [Stock Highlights]

Hisense Home Appliances (00921): Hisense TV's market share in the U.S. for products priced over $1,000 has increased 4.7 times year-on-year

The National Development and Reform Commission and the Ministry of Finance issued a notice on the implementation of a large-scale equipment update and old-for-new policy for consumer goods by 2025. Zhao Chenxin, Deputy Director of the National Development and Reform Commission, stated at a regular press briefing on January 8 that the number of home appliance products eligible for old-for-new subsidies has increased from 8 categories last year to 12 categories, with a maximum subsidy of 20% of the sales price for each item.

Guotai Junan Securities pointed out that since the end of December, about 20 provinces and cities have announced the cross-year connection policy for the old-for-new program for home appliances in 2025. The old-for-new policy in 2024 is expected to have a significant impact on home appliance sales, and the continuation of the policy in 2025 is likely to continue to stimulate the release of demand for home appliance upgrades, driving growth in the home appliance industry.

At the CES Consumer Electronics Show in the U.S., it was reported that in 2024, Hisense's market share in the segment priced over $1,000 has increased 4.7 times year-on-year, making it the fastest-growing high-end TV brand in China. In the 75-inch category, it saw a year-on-year increase of 154%.

Hisense's home appliance business is extensive, covering various types of electrical products and automotive air conditioning compressors, and also provides smart home solutions. In the first three quarters, revenue reached 70.58 billion yuan, a year-on-year increase of 8.75%, with a net profit attributable to the parent company of 2.79 billion yuan, up 15.13%, showcasing impressive results. Notably, the revenue from Hisense's kitchen appliance business in the first three quarters increased by 78.74% year-on-year, and overseas revenue saw a significant year-on-year increase of 195.25%. From the perspective of Hisense's business revenue, in addition to home TVs, air conditioners, refrigerators, and washing machines, the rapidly growing central air conditioning business has become an important growth point for Hisense's revenue and profits.

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