Zhitong Hong Kong Stocks Early Knowledge | Central Office, State Council: Deepen the Reform of Low-altitude Airspace Management QDII Funds Again Face a Wave of Purchase Restrictions

[Today's Headlines]

General Office of the CPC Central Committee and the State Council: Deepen the Reform of Low-altitude Airspace Management and Develop General Aviation and Low-altitude Economy

The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued opinions on accelerating the construction of a unified and open transportation market. Build a comprehensive water transportation management system and improve the maritime supervision mechanism and model. Improve the responsibilities and operational mechanisms for the coordinated development of comprehensive transportation, operational monitoring, public services, technological innovation, cybersecurity, and information technology, and promote the development of industries such as railways, highways, waterways, civil aviation, and postal services. Advance the reform of the highway toll system and maintenance system, and promote the optimization of toll road policies. Build a comprehensive water transportation management system and improve the maritime supervision mechanism and model. Continue to promote air traffic control system reform, deepen the reform of low-altitude airspace management, and develop general aviation and low-altitude economy.

[Market Outlook]

Cryptocurrency Concept Stocks Generally Decline, MicroStrategy (MSTR.US) Drops Over 8%

Overnight, U.S. stocks closed with the Dow Jones up 66.69 points, an increase of 0.16%, closing at 42,906.95 points; the Nasdaq rose 192.29 points, an increase of 0.98%, closing at 19,764.89 points; the S&P 500 index rose 43.22 points, an increase of 0.73%, closing at 5,974.07 points. NVIDIA (NVDA.US) rose 3.69%, Tesla (TSLA.US) rose 2.2%, and Honda Motor (HMC.US) rose 12.8%.

Cryptocurrency concept stocks generally declined, with MicroStrategy (MSTR.US) dropping over 8%. The NASDAQ Golden Dragon China Index closed up 0.9%, Alibaba (BABA.US) rose 3.5%, and Baidu (BIDU.US) rose 3%. The Hang Seng Index ADR rose, closing at 19,939.74, up 56.61 points or 0.28% compared to the Hong Kong closing.

Christmas Holiday Market Trading Arrangements are as follows: Hong Kong stocks will be closed from the afternoon of December 24 (Tuesday) to December 26 (Thursday), and northbound trading will be closed from December 25 (Wednesday) to December 26 (Thursday). U.S. stocks will be closed from 1 PM on December 24 (Tuesday, Eastern Time) to December 25 (Wednesday).

[Hot Topics Ahead]

Surge in Flu Patients in Japan, Many Areas Experiencing "Drug Shortages"

Japanese media reported on the 23rd that the number of flu patients in Japan has surged recently, with severe shortages of cough and expectorant medications in some areas, even leading to stockouts. Government departments have urged pharmaceutical industry groups to take measures such as increasing production and advancing shipments to help alleviate the "drug shortage." According to the latest data released by Japan's Ministry of Health, Labour and Welfare, the number of flu patients in the country has increased for eight consecutive weeks. In the week from December 9 to 15, there were 94,259 new flu patients nationwide, about double that of the previous week. As a result, many schools have experienced collective infections, with nearly 2,800 schools and kindergartens nationwide suspending classes entirely or for certain grades and classes. Data released by the Ministry of Health, Labour and Welfare shows that as of the 19th, 3,230 types of drugs have limited or stopped supply, accounting for 18.6% of all drug types QDII Funds Face New Purchase Limits Again

As December begins, multiple fund companies have announced that they will impose purchase limits and quotas on some of their QDII funds. For example, Huabao Nasdaq Select Equity Fund has announced that the cumulative subscription limit for a single fund account per day has been adjusted from 1,000 yuan to 100 yuan; E Fund Nasdaq 100 ETF Linked Fund has announced that the subscription amount for a single fund account per day will not exceed 100 yuan. Data shows that as of December 13, 35 QDII funds have a purchase limit of 100 yuan for a single account per day. After August this year, QDII fund products have encountered the second wave of purchase limits for 2024.

Institutions: Semiconductor Total Revenue Grew 26% Year-on-Year in the First Three Quarters, Expected to Continue Double-Digit Growth Next Year

On December 23, according to a report from market research firm Omdia, the total revenue of semiconductors in the first three quarters of 2024 increased by 26% compared to the same period in 2023, an increase of $102 billion. This growth is attributed to strong demand for artificial intelligence and related semiconductor components.

Shandong Takes the Lead in Setting New Energy Market Entry Rhythm, New Projects in the Next Two Years Can Partially or Fully Enter the Market

The Shandong Provincial Government recently issued the "Several Measures to Improve the New Energy Consumption System and Promote High-Quality Energy Development," which notably proposes to classify and gradually increase the market-oriented trading ratio of new energy, steadily promoting its market entry. Specifically, from 2025 to 2026, new wind power projects can choose to participate in the electricity market with either full power or 30% of their generation, while new photovoltaic projects can choose to participate with either full power or 15% of their generation, with adjustments made according to national policy requirements; starting in 2030, new wind and photovoltaic projects will achieve full market entry. Thus, Shandong becomes the first province in the country to clearly define the timeline and short-term market entry ratio for new energy, providing reassurance to the industry and market.

Guangdong: Strictly Implement Electrolytic Aluminum Capacity Replacement, Stringently Control New Smelting Capacity for Copper and Alumina

The Guangdong Provincial Government issued a notice on the "Energy Conservation and Carbon Reduction Action Plan for 2024-2025." It mentions optimizing the capacity layout of non-ferrous metals. Strictly implement electrolytic aluminum capacity replacement, stringently control new smelting capacity for copper, alumina, and other materials, and rationally layout new capacity for silicon, lithium, magnesium, and other industries. Vigorously develop the recycled metal industry. By the end of 2025, the supply ratio of recycled metals will reach over 24%. Strictly control the admission of new non-ferrous metal projects. New and expanded electrolytic aluminum projects must meet energy efficiency benchmark levels and environmental performance A-level standards, while new and expanded alumina projects must meet advanced mandatory energy consumption limit standards. New polysilicon and lithium battery anode and cathode projects must achieve industry-leading energy efficiency levels.

Institutions: Chinese Game Companies Earn $1.87 Billion in November

According to the Sensor Tower store intelligence platform, in November 2024, a total of 35 Chinese companies made it to the global mobile game publisher revenue list TOP 100, collectively earning $1.87 billion, accounting for 34.8% of the revenue of the global TOP 100 mobile game publishers in November Data shows that Tencent's "Honor of Kings," "Peacekeeper Elite," and "Dungeon & Fighter: Origin" occupy the top three spots in this issue's China iOS mobile game revenue rankings.

Yuexiu Property (00123) successfully acquired the Daganwei land parcel in Haizhu District, Guangzhou for RMB 2.023 billion through public listing via its subsidiary

Zhitong Finance APP reported that Yuexiu Property (00123) announced that on December 23, 2024, through its subsidiary Guangzhou New Show Real Estate Development Co., Ltd. (which holds a 95.475% stake in the company), it successfully acquired the AH101533 land parcel in Haizhu District, Guangzhou for RMB 2.023 billion through public listing.

Longyuan Power (00916) received cumulative increase of 83.598 million H-shares from shareholder Ruizhong Life Insurance

Zhitong Finance APP reported that Longyuan Power (00916) announced that on December 23, 2024, the company received a "Notice Letter" from its shareholder Ruizhong Life Insurance Co., Ltd. (hereinafter referred to as "Ruizhong Life"), which holds more than 5% of the company's shares. Ruizhong Life, recognizing the company's value and having confidence in its future development, cumulatively increased its holdings of the company's H-shares by 83.598 million shares through the Hong Kong Stock Connect secondary market from November 4, 2024, to December 20, 2024, accounting for 1.00% of the company's total share capital. After this increase, Ruizhong Life holds 502 million H-shares and 0 A-shares, totaling 6.00% of the company's total share capital.

China Energy Engineering (03996) subsidiary wins bid for Jiangsu Changshu Power 3×660MW ultra-supercritical coal-fired power unit replacement and expansion project EPC general contracting section

Zhitong Finance APP reported that China Energy Engineering (03996) announced that recently, its subsidiary China Power Engineering Consulting Group East China Electric Power Design Institute Co., Ltd. (East China Electric Power Design Institute) and China Energy Engineering Group Jiangsu Electric Power Construction First Engineering Co., Ltd. (Jiangsu Electric Power Construction First Engineering) formed a consortium and won the bid for the EPC general contracting section of the Jiangsu Changshu Power Co., Ltd. 3×660MW ultra-supercritical coal-fired power unit replacement and expansion project, with a bid amount of approximately RMB 6.92868 billion. The total construction period for this project is approximately 48 months.

[Stock Highlights]

COSCO Shipping Holdings (01919): Benefiting from the increase in shipping fees

Several shipping giants will fully raise shipping fees starting January 1, 2025, with Mediterranean Shipping's rate for a 40-foot container on the West Coast of the U.S. increasing to USD 6,150 and to USD 7,150 on the East Coast; COSCO Shipping's rates for the West Coast will rise to USD 6,000 and USD 7,000 for the East Coast. The reasons include the upcoming traditional peak consumption period at the end of the year, the approaching Lunar New Year, concerns over strikes at East Coast ports leading to continuous shipments from factories, tight supply and demand for shipping space, and increased operating costs for shipping companies due to the new system implemented by the Panama Canal Authority, as well as rerouting of vessels due to the Israel-Palestine conflict.

Citigroup released a research report stating that shipping rates in Asia are expected to continue rising next year. After reassessing the risk-return profile, they believe that the covered shipping companies in the Asia-Pacific region are valued at approximately 0.8 to 0.9 times the forecasted price-to-book ratio for next year, with the forecast for core equity return on investment raised to 8% to 12%, acknowledging that their downgrade of the overall industry rating in July this year was overly pessimistic Considering various factors, the demand in the industry is still expected to be strong in the first quarter of next year, approaching the season of contracts that can cover the trans-Pacific.

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