DZ20220119

 

*Key points

 

PBoC Supports

*Vice head of PBoC pledged to 1)open monetary policy tool box wider and maintain stable aggregate money supply and avoid credit collapse; 2) adopt precise measures in active manner with economic structure optimized; 3) operate with foresight, make preemptive moves and stay ahead of the market curve to stabilize economic growth.

*Vice head of PBoC said to strengthen supports on real economy, tech innovation and green development in 2022 with stable growth of aggregate monetary credit to be maintained and corporate financing cost to be cut. Fluctuation of currency exchanges is normal with no side appreciation expected. Housing sales, land purchase and financing of real estate sector been back to normal status in recent days. Macro leverage ratio down for 5th quarter in a row with potential room created for future monetary policy.

 

Industrial Economy

*The State Council issued development plan of modern comprehensive transportation system during the 14th FY which pointed out to realize over 95% coverage of high-speed railway network on cities with population over 500k and integrated transportation network of major city cluster to be formed up.

*MIIT said to clarify supporting policies on preferential tax extension on NEV purchase with tech and industrial breakthrough to speed up in power battery, operation system and car chips.

*The State Council state-owned reform leadership group held conference on Jan 17th which emphasized 2022 as the last year of 3-year action of state-owned enterprise reform with major tasks to be completed in high quality and weak links to be repaired.

 

Co Focus

*Shangfeng Cement (000672 CH) said on the investor interactive platform that co face no account receivable and large bad debt provision from real estate firms given no direct sales to terminal users.

 

*Block Trade Info

 

*Discount

-Hile Bio-Tech (688488 CH) saw 5 block trade worth 108mn at 14.09yuan per share, 7pct premium from last closing.

-Midea Group (000333 CH) saw 1 block trade worth 85mn at 73.3 yuan per share, 0.00pct discount from last closing.

-Milkyway (603713 CH) saw 3 block trade worth 29mn at 124.76 yuan per share, 8.6pct discount from last closing.

-Haitian Flavouring (603288 CH) saw 2 block trade worth 78mn at 92.47yuan per share, 10.86pct discount from last closing.

- Century Huatong (002602 CH) saw 1 block trade worth 5.4mn at 8.14yuan per share, 0.00pct discount from last closing.

- Aerospace CH UAV (002389 CH) saw 2 block trade worth 69mn at 21.1uan per share,12.48pct discount from last closing.

- Amer New Material (002201 CH) saw 2 block trade worth 76mn at 18.02/17.93yuan per share, 2.49/2.98 pct discount from last closing.

- Wingtech Tech (600745 CH) saw 1 block trade worth 101mn at 119 yuan per share, 1.72pct discount from last closing.

Premium

- Sichuan Road&Bridge (600039 CH) saw 1 block trade worth 5.6mn at 11.14yuan per share, 4.7pct premium from last closing.

*Margin Trade

*Connection Trade

*Index Futures

*Index Options

*Treasury Futures

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

 

Commodities (night session):

* OPEC forecasts robust demand for crude oil in 2022. Multiple factors are disturbing oil supply, whereas the rise of demand was not heavily affected by the spread of Omicron, global crude oil price rose collectively. March NYMEX crude oil contract up 3.11% to closed at $85.89/b, March Brent contract up 2.32% to closed at $88.49/b, the highest since 2014. INE crude oil active contract up 0.71% to closed at 540.1 yuan/b.

*Regarding to the monthly FOMC meeting, market expects interest rate to rise 25 bps, USD and US bond yield rise collectively, which tames the uptrend of gold. COMEX gold active contract closed at $1813.4/oz (down 0.17%), SHFE gold active contract closed at 373.36 yuan/gram (down 0.15%).

* Metals mostly closed up. LME aluminum rose 0.77%, copper down 0.56%, tin rose 2.43%. SHFE aluminum up 1.25%, copper down 0.23%, bonded copper down 0.29%, tin up 1.32%.

* Commodity futures mostly closed up, Energy & chemistry futures performed strong, methanol up 4.09%, glass up 3.88%, bitumen up 3.51%. Black series rose collectively, thermal coal up 4.46%, iron ore up 4.26%. Agriculture futures saw diverge performance, RBD palm olein up 1.16%, cotton up 1.01%, No.2 soybeans down 1.35%.

 

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The report is issued by Orient Securities Co. LTD (Orient Securities) and Shanghai Orient Futures Co. LTD (Orient Futures) to institutional investors. Opinions expressed may differ from those of other divisions of Orient Securities, including Orient Securities Research Institute. Orient Securities may trade as principal in instruments identified herein and may accumulate/have accumulated a long or short position in instruments or derivatives thereof. Orient Securities has policies designed to negate conflicts of interest. This e-mail is not an official confirmation of terms and unless stated, is not a recommendation, offer or solicitation to buy or sell. Any prices or quotations contained herein are indicative only. Communications may be monitored.