Zhitong Hong Kong Stocks Early Insight | Aluminum prices approaching historical highs, Huawei's native HarmonyOS officially released

[Today's Headlines]

Report from the Financial Research Institute of the Chinese Academy of Social Sciences: Propose Issuing 2 Trillion Yuan Special National Bonds to Support the Establishment of Stock Market Stabilization Fund

The Financial Research Institute of the Chinese Academy of Social Sciences released the macro-financial analysis report for the third quarter of 2024, titled "Balancing Stock and Increment: Innovative Ideas for Macro-Economic Governance." The report suggests enhancing the intrinsic stability of the capital market.

To enhance the intrinsic stability of the capital market, the report proposes several measures. Firstly, accelerate the entry of medium and long-term funds into the market, such as moderately increasing the proportion of insurance company funds invested in the stock market and raising the proportion of local social security funds indirectly entering the market through the National Social Security Council's custody. Secondly, strengthen the convenience of exchanges between securities, funds, and insurance companies, coordinate with the central bank in buying and selling government bonds, achieve effective linkage between the money market and the capital market, and provide low-cost liquidity support to the stock market when necessary. Thirdly, issue 2 trillion yuan of special national bonds to support the establishment of a stock market stabilization fund, promoting market stability through buying low and selling high of blue-chip stocks and ETFs.

[Market Outlook]

Mixed Performance in U.S. Stock Indices, Most Popular Chinese Stocks Rise

In the overnight U.S. stock market closing, the Dow Jones Industrial Average fell by 6.71 points to close at 42,924.89 points, a decrease of 0.02% from the previous trading day; the S&P 500 stock index fell by 2.78 points to close at 5,851.20 points, a decrease of 0.05%; the NASDAQ Composite Index rose by 33.12 points to close at 18,573.13 points, an increase of 0.18%. Most large-cap tech stocks rose, with Microsoft (MFST.US) up over 2% and General Motors (GM.US) up nearly 10%, reaching the highest stock price since February 2022, with net sales, revenue, and adjusted earnings per share all exceeding expectations for the third quarter. Most popular Chinese stocks rose, with the NASDAQ Golden Dragon Index up by 0.94%. iQIYI (IQ.US) rose by over 7%, Full Truck Alliance (YMM.US) and Li Auto (LI.US) rose by over 3%. Hang Seng Index ADR rose, closing at 20,585.58 points, up by 86.63 points or 0.42% from the Hong Kong market close.

International gold prices continue to hit historic highs, with COMEX gold futures rising by $20.90 per ounce, an increase of 0.76%, to $2,759.80 per ounce.

[Hot Topics Preview]

National Development and Reform Commission: Nearly Half of Incremental Policies Have Been Implemented, Another Batch of Policies "On the Way"

According to the latest information from the National Development and Reform Commission, nearly half of the incremental policies have been implemented so far, and the remaining incremental policies will be accelerated. The National Development and Reform Commission will closely monitor changes in the situation and promptly study new incremental policies. As reported by CCTV News, in 2025, China will continue to issue ultra-long-term special national bonds and further optimize their use, maintaining strong arrangements to support the implementation of major national strategies and the construction of security capabilities in key areas.

Supply Disruption Fears Intensify, Aluminum Oxide Prices Approach Historic Highs

It has been learned that due to buyers scrambling to secure supply, prices of aluminum's key raw material are approaching record highs. Previously, concerns about export disruptions from Guinea, the largest ore producer, have spread to China. Data from pricing agency Fastmarkets Ltd. shows that aluminum oxide prices have surged by over 20% so far this month, approaching the record of $707.75 set in 2018 Nearly all routes in the shipping market are experiencing overbooking, and the industry expects the "shipping boom" to continue until early next year

Several freight forwarders revealed to reporters that by the end of October, there were cases of overbooking on sailing voyages, involving almost all directions of routes. Among them, overbooking on routes to the United States is expected to continue until November. Some industry insiders told reporters that the main reasons for this round of overbooking include shippers rushing to ship before the shipping companies raise prices, anticipation of the impact of the U.S. election results, and changes in the shipping patterns of Chinese shippers. As for the future trend of freight rates, Wu Jialu, head of the Industrial and Cyclical Group at CITIC Futures Research Institute, believes that future freight rates will show a trend of fluctuation and strength. Lin Jie, President of Huan Shi Logistics, also holds an optimistic attitude towards the duration of this round of "shipping boom," believing that it may last until the end of this year or even January next year. This involves the Hong Kong stock shipping sector.

China's first domestically developed mobile operating system officially released

On October 22, China's first domestically developed mobile operating system, the Huawei HarmonyOS, was officially released. This makes it the world's third-largest mobile operating system after Apple's iOS and Android. It is reported that the previously released HarmonyOS, due to still using some AOSP open-source code for the system base, had to be compatible with some Android applications. With the release of the native HarmonyOS this time, the entire system base is self-developed, significantly improving the system's fluency, performance, security features, and achieving independent controllability of a domestic operating system.

BlackRock significantly increases its holdings in Pinduoduo (PDD.US) to approximately 132 million shares

According to documents disclosed by the SEC on October 21, BlackRock significantly increased its holdings in the Chinese e-commerce platform Pinduoduo. Its holdings increased from approximately 29 million shares (equivalent to 2.1% of the total share capital) in Q2 of 24 years to approximately 132 million shares (equivalent to 9.5% of the total share capital).

Yuexiu Property (00123) successfully wins the Xiaoshahe land in Changping District, Beijing through a consortium

According to the Intelligent Finance APP, Yuexiu Property (00123) announced that on October 22, 2024, through a consortium, it successfully won the Xiaoshahe Village and surrounding land plots in Changping District, Beijing, through public bidding for a total of RMB 2.533 billion for the shantytown renovation and environmental improvement project CP00-1802-0005, 0007, 0008 (Xiaoshahe land in Changping District, Beijing).

Lead underwriter violation! CITIC Securities cancels the issuance of up to 6 billion yuan in bonds

On October 22, CITIC Securities (06030) announced the cancellation of the public issuance of subordinated bonds by CITIC Securities Co., Ltd. for professional institutional investors in 2024. The announcement mentioned that CITIC Securities Co., Ltd. was originally scheduled to issue subordinated bonds for professional institutional investors from October 23 to October 25. Due to the inability of the lead underwriter, Kaiyuan Securities Co., Ltd., to participate in the underwriting work of this bond issue, after friendly consultations among all parties, the issuer decided to cancel this bond issue. Further issuance plans will be announced separately. According to a previous announcement by CITIC Securities, the bonds to be issued this time are divided into two types, with a term of 273 days for Type 1 bonds and 3 years for Type 2 bonds, with a total issuance size not exceeding 6 billion yuan for both types combined The bond was originally scheduled to conduct offline inquiry on October 22nd to determine the coupon rate and announce the final coupon rate. On October 18th, the China Securities Regulatory Commission announced that due to violations in the bond underwriting business of Kaiyuan Securities, it decided to suspend the bond underwriting business of Kaiyuan Securities from October 17, 2024 to April 16, 2025.

SMIC: E Fund SSE STAR Market 50 ETF reduces holdings of 1.2465 million shares of A-shares

SMIC (688981.SH) announced on the evening of October 22nd that E Fund SSE STAR Market 50 ETF reduced its holdings of 1.2465 million shares of the company's domestic stock. After the reduction, it still holds 99.2407 million shares of the company's domestic stock, accounting for 4.99% of the company's domestic total share capital and 1.24% of the company's total share capital.

China Longyuan Power (00916) plans to invest approximately 1.6857 billion yuan to acquire equity of 8 new energy companies from the controlling shareholder

According to the Zhitong Finance and Economics APP, China Longyuan Power (00916) announced that on October 22, 2024, the company signed "Equity Transfer Agreements" with China Energy Asset Management Company, China Energy Gansu Power, and China Energy Guangxi Power. Based on this, China Energy Asset Management Company, China Energy Gansu Power, and China Energy Guangxi Power conditionally agreed to transfer the equity of eight target companies to the company for a total consideration of approximately RMB 1.6857 billion, subject to adjustments.

China Nonferrous Mining (01258) estimates that the company's attributable profit for the first three quarters is approximately USD 314 million, a year-on-year increase of approximately 23%

According to the Zhitong Finance and Economics APP, China Nonferrous Mining (01258) released an announcement. As of the nine months ended September 30, 2024, the group: accumulated production of cathode copper (including copper product processing services) is approximately 95,939 tons, a decrease of approximately 13% year-on-year, and achieved an annual production target of approximately 69%; among them, self-owned mines produced 63,994 tons of cathode copper, an increase of approximately 3% year-on-year; accumulated production of blister copper and anode copper (including copper product processing services) is approximately 287,174 tons, an increase of approximately 3% year-on-year, and achieved an annual production target of approximately 70%; among them, self-owned mines produced 57,757 tons of blister copper and anode copper, a decrease of approximately 13% year-on-year; accumulated production of sulfuric acid is approximately 776,304 tons, an increase of approximately 10% year-on-year, and achieved an annual production target of approximately 78%; accumulated production of cobalt hydroxide containing cobalt is approximately 771 tons, a decrease of approximately 39% year-on-year, and achieved an annual production target of approximately 119%; and accumulated production of liquid sulfur dioxide is approximately 14,346 tons, an increase of approximately 52% year-on-year, and achieved an annual production target of approximately 110%.

First Pacific (00142): MPIC plans to sell 50% indirect equity of PCSPC

According to the Zhitong Finance and Economics APP, First Pacific (00142) announced that on October 23, 2024, the seller Razor Crest Storage Infrastructure Holdings Corporation, MPIC, and KIT, and the buyers Coral Terminal Holdings Corporation and Terminal PH Investments Pte Ltd. entered into a purchase agreement, under which the seller agreed to sell and the buyer agreed to acquire all the issued and outstanding shares of HSHC, representing 100% of the total issued share capital, for a total price of approximately USD 296 million (equivalent to approximately HKD 2.309 billion).

China Resources Beverage (02460): Public offering portion of Hong Kong IPO oversubscribed by 234 times, stock listed on Wednesday

China Resources Beverage announced on the Hong Kong Stock Exchange that the public offering size of the IPO has been increased from 38 million shares to 139 million shares. The international placement portion of China Resources Beverage's IPO was oversubscribed by 24 times, with the offering size reduced from 310 million shares to approximately 209 million shares. The IPO price of China Resources Beverage in Hong Kong is set at HKD 14.5 per share, at the upper limit of the indicative range of HKD 13.5 to 14.5 per share. The company will raise HKD 5.04 billion through the Hong Kong IPO. It will be listed on October 23.

[Stock Highlights]

Hansoh Pharmaceutical (03692): Amele joint chemotherapy for the treatment of locally advanced or metastatic EGFR-mutated stage III non-small cell lung cancer reaches primary endpoint in Phase III clinical trial

According to the Zhixin Finance APP, Hansoh Pharmaceutical (03692) announced that the Phase III registration trial AENEAS2 evaluating Amele in combination with chemotherapy as a first-line treatment for locally advanced (stage IIIB~IIIC) or metastatic (stage IV) epidermal growth factor receptor (EGFR) mutated non-small cell lung cancer (NSCLC) has reached its primary endpoint of progression-free survival (PFS). Amele® in combination with chemotherapy has shown statistically significant and clinically meaningful improvement in PFS in patients with advanced lung cancer with EGFR mutations. Detailed results of the study will be presented at future medical conferences and submitted to regulatory authorities.

Amele (Ameletinib Mesylate) is the first domestically developed third-generation EGFR-TKI innovative drug in China. In March 2020, Amele was approved for the treatment of locally advanced or metastatic NSCLC patients who have progressed after previous EGFR-TKI treatment and tested positive for the T790M mutation, and successfully renewed to be included in the 2022 National Medical Insurance Catalog in January 2023. In December 2021, Amele was approved for first-line treatment in adult patients with locally advanced or metastatic NSCLC who have EGFR exon 19 deletion or exon 21 (L858R) substitution mutations, and was included in the 2022 National Medical Insurance Catalog in January 2023.

In July 2024, the NDA for Amele for adjuvant treatment after tumor resection in adult NSCLC patients with EGFR exon 19 deletion or exon 21 (L858R) substitution mutations was accepted by the China National Medical Products Administration (NMPA). In August 2024, the NDA for Amele for the treatment of inoperable locally advanced NSCLC patients with EGFR exon 19 deletion or exon 21 (L858R) substitution mutations who have not experienced disease progression after platinum-based definitive chemoradiotherapy was accepted by the NMPA.

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