DZ20220309

 

*Key points

Financials

*PBoC announced to hand in profit balance over cny 1tn to central finance in 2022 for tax refund, local transfer payment, poverty alleviation and employment security, which was equivalent to 50bp RRR cut and 1% more fiscal policy as analyzed by industrial expert.

*PBoC: annual growth of China macro leverage since 2017 was around 4.8% and reached 272.5% in 2021, back to stable channel, which is likely to sustain in 2022 with policy room created for increasing supports on real economy.

 

Funds

*E Fund announced to ease quota restriction of two funds under management of Zhang Kun, a well-known domestic fund manager from cny 10k to 50k, to take effect from March 9th.

 

Industrial Data

*As data shown by China Construction Machinery Association that excavator sales by 26 firms in Feb of 24.4k units, down 13.5% y/y and domestic sales of 17k units, down 30.5% y/y with exports of 7.4k units, up 97.7% y/y.

*CPCAAUTO: Feb passenger vehicle sales of 1.25mio units, up 4.2% y/y and down 40% m/m with NEV sales of 272k units, up 180.5% y/y and down 22.6% m/m.

 

*Block Trade Info

*Discount

-Wuliangye (000858 CH) saw 2 block trades worth 8mn at 166 yuan per share, 0.15pct discount from last closing.

- Cathay Biotech (688065 CH) saw 2 block trades worth 53mn at 105.3yuan per share, 8.73pct discount from last closing.

 

*Flat

-ZTE (000063 CH) saw 1 block trade worth 10mn at 25.66 yuan per share, 0.00pct discount from last closing.

-Sinodata Co (601088 CH) saw 1 block trade worth 37mn at 14.67 yuan per share, 0.00pct discount from last closing.

-Avic Heavy Machinery (600765 CH) saw 1 block trade worth 70mn at 39.83 yuan per share, 0.00pct discount from last closing.

-Vanke Co (000002 CH) saw 4 block trades worth 110mn at 17.67yuan per share, 0.00pct discount from last closing.

-Sany Heavy Industry (600031 CH) saw 8 block trades worth 40mn at 17.66yuan per share, 0.00 discount from last closing.

-Focus Media (002027 CH) saw 4 block trades worth 166mn at 6.9 yuan per share, 0.00pct discount from last closing.

 

*Margin Trade

*Connection Trade

*Index Futures

*Index Options

*Treasury Futures

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

* Global oil prices mostly closed up as April contract of WTI surged by 4.5%, quoted at $124.77/barrel, recorded new high since July 2008. Likewise, May contract of Brent shifted up by 4.86%, closed at $129.2/barrel. President Biden has announced a ban on oil imports from Russia.

* COMEX gold futures closed higher to $2,058.3 per ounce with 3.13% increase, the new peak since August 2020.COMEX silver futures settle at $26.885 per ounce with 4.53% increase. The continuous tension between Russia and Ukraine has stimulated the purchase of safe haven assets.

* For the night session on March 9, commodity market mostly closed up for chemical and energy series leading the upside. Bitumen and fuel oil soared the most with approximately 8% increase, and PTA inched up by 4.21%. Black series closed mixed as coking coal, coke and iron ore shifted up slightly, while thermal coal eased back by 2.9%.

* LME metals mostly closed up with LME copper rose by 0.52% to $10,334.5/ton, LME zinc up by 3.36% to $4,250.5/ton, LME aluminum down by 1.58% to $3,681/ton, LME tin shifted 4.53% higher to $49,000/ ton, and LME lead closed up with 4.27% increase at $2,553/ton. After 74% increase in March 7, the price of LME nickel soared by 100% to more than $100,000/ton during the day. Upon that, LME announced the suspension of trading of LME nickel and the price fell back to $80,000 per ton with a 66% increase.

 

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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.