DZ20211230

*Key points

Financials

*The State Council general meeting decided to extend preferential policies of personal income tax to end 2022 with tax reduction of cny 110bn in total.

*Measure of supervisory talk been adopted on CICC given its lack of diligence during sponsor of Lenovo group in application of STAR board listing, as announced by CSRC.

 

Industrial Economy

*CPCAAUTO: the narrowly defined retail sales data of passenger vehicles of 1.61mio units in Dec, up 24% m/m.

*Beijing adjusted up NEV quota to 70k in 2022 and quota allocated to small passenger vehicles of 100k.

*Shanghai issued AI industry development plan during the 14th 5-year plan period which said to realize annual growth of AI industry over 12% by 2025 to cny 400bn with innovation development highland to be built up.

 

Co Focus

*Alibaba said to explore options for weibo stake with state firm, Shanghai Media Group to be specific, according to someone familiar with this matter.

 

*Block Trade Info

*Discount

- SMIC (688981 CH) saw 1 block trade worth 15mn at 48 yuan per share, 8.97pct discount from last closing.

- China Tianying (000035 CH) saw 2 block trade worth 40mn at 5.65yuan per share, 3.09pct discount from last closing.

- New Media Co (300770 CH) saw 1 block trade worth 10mn at 177.8yuan per share, 2pct discount from last closing.

- Wens Foodstuff (300498 CH) saw 1 block trade worth 9.2mn at 15.31yuan per share, 19.63 pct discount from last closing.

- Tonze Electric Co (002759 CH) saw 3 block trade worth 55mn at 25.5yuan per share, 11.8pct discount from last closing.

- Shanghai Construction (600170 CH) saw 1 block trade worth 317mn at 3.56yuan per share, 0.00 pct discount from last closing.

- Sany Heavy Industry (600031 CH) saw 1 block trade worth 38mn at 23.12yuan per share, 0.99pct discount from last closing.

 

Premium

- New Media Co (300770 CH) saw 2 block trade worth 100mn at 55.54yuan per share, 0.63 pct discount from premium closing.

 

*Margin Trade

*Connection Trade

Southbound trading was suspended on Dec 29th

*Index Futures

*Index Options

*Treasury Futures

*Night Session Commodities Market (As of 02:30 am)

* Global oil prices mostly went up with February contract of WTI rose by 0.8%, quoted at $76.59/barrel, and the March contract of Brent up by 0.71%, closed at $79.23/barrel. According to EIA, the US SPR inventory has dropped to the lowest level ever since November 2002.

* According to industry analysts, due to the impact of the covid-19 epidemic, resulting in a flood of liquidity and a global protection from inflation. World Gold Council (WGC) statistics show the number of increased gold exceeded 4500 tons. Total holdings as of September 2021 increased by 15% compared to 10 years before to approximately 36,000 tons, recorded the highest for the past 31 years.

* For the night session on December 29, commodity market mostly closed up with black series leading the upside, iron ore rose by 2.19%, coking coal and steel rebar went up by 1.48% and 1.09% respectively. Chemical and energy sector closed mixed for paper pulp rose by 1.57%, while LPG shifted 1.7% lower. In terms of agriculture, cotton yarn closed up by 0.97%, while No.1 soybean quoted 0.86% lower.

* LME metals closed mixed with LME copper rose by 1.11% to $9,674.5/ton, LME zinc fell by 0.44% to $3,503.5/ton, LME nickel went up by 2.02% to $20,450 ton, LME aluminum fell by 0.88% to $2,812/ton, LME tin fell by 0.34% to $39,125/ ton, while LME lead closed flat at $2,278/ton.

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