News

13 May 22

Morning Brief 2022-05-13

DZ20220513

*Key points

Financials

*Economic Daily points out in an article that China should maintain the stability and sustainability of monetary policy, adopt multiple and prudent measures, continue to strengthen structural policies, cut targeted reserve requirement ratio, encourage the issuance of perpetual bonds to replenish capital. Besides, the MLF is encouraged to be appropriately lowered to reduce financing costs; more credit fund support for small, medium and micro enterprises should be provided; the external environment for their survival and development should e improved to better achieve the primary goal of stable employment.

Currency

*USD/onshore CNY closed at 6.79 on May 12th and USD/offshore at 6.8203, highest since Sept 2020.

Industrial Economy

*Vice head of NDRC said to further optimize 1+N policy system of carbon peak and neutral with several supporting documents to be issued covering multiple industries. New energy to be developed and 450mio KW wind power PV bases to be built up in desert and wilderness.

*Yiwu city in Zhejiang province announces to boost auto consumption by providing a subsidy of as much as 10,000 cny to auto buyers.

Co Focus

*Moutai hospital to be officially launched from May 24th and built on the highest national standard with system construction of special demand medical service promoted.

*Volkswagen suggests possibility of further price adjustment given rising price of raw materials.

May 12end Block Trade

*Block Trade Info

*Discount

- SMIC (688981 CH) saw 2 block trades worth 63mn at 42.06yuan per share, 2.91 discount from last closing.

- Sinofibers Tech (300777 CH) saw 1 block trade worth 45mn at 37.28yuan per share, 20.24 discount from last closing.

- Solartron Tech (688299 CH) saw 3 block trades worth 115mn at 13.5yuan per share, 16.82pct discount from last closing.

- Longi Green Energy (601012 CH) saw 3 block trades worth 38mn at 67.94yuan per share, 2.64 discount from last closing.

- Lakala Payment (300773 CH) saw 6 block trades worth 47mn at 16.92 yuan per share, 10.48 discount from last closing.

*Flat

- China Merchants Bank (600036 CH) saw 3 block trades worth 110mn at 36.61yuan per share, 0.00pct discount from last closing.

- Luxshare Precision (002475 CH) saw 3 block trades worth 83mn at 30.34yuan per share, 0.00 discount from last closing.

*Premium

- China Shenhua (601088 CH) saw 3 block trades worth 42mn at 29.02yuan per share, 1.33 premium from last closing.

*Margin Trade

*Total Margin Balance*	1.4466 trillion	*Total Short Selling Balance*	81.2 billion
*SH Margin Balance*	0.7752 trillion	*SH Short Selling Balance*	52.9 billion
*Top Five Margin Trade Net Bought (in CNY)*		*Top Five Short Selling Net Sold (in shares)*
688180	173mio	601988	3.13mio
600703	144mio	688538	1.77mio
600062	139mio	600157	1.77mio
601012	78.3mio	601009	1.54mio
600422	73.4mio	600863	1.31mio
*SZ Margin Balance*	0.6703 trillion	*SZ Short Selling Balance*	28.2 billion
*Top Five Margin Trade Net Bought (in CNY)*		*Top Five Short Selling Net Sold (in shares)*
002415	85.55mio	000001	5.35mio
000049	67.7mio	002456	1.35mio
002714	66mio	000875	1.1mio
000301	60mio	000665	1.09mio
000739	57mio	000630	1.04mio

*Connection Trade

SH-HK Connection (bn cny)			SZ-HK Connection (bn cny)
Northbound Net Cash Flow		-2.3	Northbound Net Cash Flow		-0.36
Southbound Net Cash Flow		+3.7	Southbound Net Cash Flow		+2.9
Top 5 Northbound Inflow			Top 5 Northbound Outflow
Name	Market Value (mio cny)	‰ out of ttl share outstanding	Name	Market Value (mio cny)	‰ out of ttl share outstanding
300059	304	1.23	601889	301	1.5
600958	254	3.78	601663	288	1.86
002271	196	2.25	601318	248	0.51
600900	189	0.37	600519	241	0.11
600887	173	0.75	002709	224	2.95

*Index Futures

Position of Top 20 members (Unit lots)
CSI 300 Index Futures	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
IF2205	101,257	-18,831	53,033	-908	52,877	-849
IF2206	42,475	-8,411	55,830	-714	66,764	-1,291
IF2209	18,532	297	39,207	1,421	47,404	1,493
SSE 50 Index Futures	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
IH2205	44,238	-15,153	26,150	-1,362	26,604	-1,464
IH2206	23,549	-2,449	29,113	820	36,624	877
IH2209	10,489	-3,995	18,590	-383	26,942	-202
CSI 500 Index Futures	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
IC2205	109,904	-24,209	68,094	-3,625	67,396	-3,833
IC2206	66,010	-7,961	93,286	481	104,482	-34
IC2209	25,833	-2,630	82,111	-65	87,687	-771
IC2212	14,070	244	27,873	1,775	27,640	1,495

*Index Options

Position of Top 20 members (Unit lots)
CSI 300 Index Options	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
IO2205	142113	-71604	77508	1813	82287	771
IO2206	30023	-18687	47605	977	55824	1364

*Treasury Futures

Position of Top 20 members (Unit lots)
2-Year Treasury Bond Futures	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
TS2206	25,433	-3,486	22,549	-360	22,722	-1,280
TS2209	8517	-2666	21318	1357	23875	1607
5-Year Treasury Bond Futures	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
TF2206	52,379	-784	53,090	-3,047	57,409	-3,873
TS2209	27118	2389	36277	5974	39251	7487
10-Year Treasury Bond Futures	Trading Volume	Change*	Long OI	Change*	Short OI	Change*
T2206	77,052	-5,180	98,479	-4,575	92,498	-3,752
T2209	43733	-4896	63548	6927	65812	7466

Top 3 Gainers (Dominant Contract)
Product	Contract	Price	Change %	Trading Volume	Open Interests
Fuel Oil	FU2209	4,150.0	+2.42%	300,924	344,540
EG	EG2209	5,139.0	+2.31%	254,510	251,289
Low Sulfur Fuel Oil	LU2207	5,628.0	+1.68%	31,127	20,219
Top 3 Loser (Dominant Contract)
Product	Contract	Price	Change %	Trading Volume	Open Interests
Coking Coal	JM2209	2,540.5	-2.76%	19,115	39,552
SHFE Silver	AG2206	4,619.0	-2.72%	413,488	347,861
Nickel	NI2206	199,860.0	-2.04%	85,573	59,871

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

* Global oil prices mostly closed up as June contract of WTI rose by 0.87%, quoted at $106.63/barrel. July contract of Brent shifted up by 0.33%, closed at $107.87/barrel.

* COMEX gold futures closed lower to $1,820.7 per ounce with 1.78% decline, hit the new low on record over the past 3 months. COMEX silver futures settled at $20.655 per ounce, dropped by 4.26%%. USDX recorded the new high over the past 20 years, which significantly intensified the pressure on gold prices.

* For the night session of May 13, commodity market mostly closed mixed for fuel oil leading the most, added by 2.42%, while soda ash and glass slipped by 0.89% and 0.67% respectively. Black series went downward collectively, coking coal dropped close to 3% and coke lowered to approximately 2%. Iron ore fell by 1.23% and closed down as well. In terms of agricultural products, No.1 and No.2 soybean inched up by approximately 1%, while palm oil went down slightly by 0.5%.

* LME metals mostly closed down with LME copper fell by 3.2% to $9,041/ton, LME zinc down by 3.86% to $3,527/ton, while LME nickel inched up by 1.15% to $28,125/ton, LME aluminum rose by 0.29% to $2,786/ton. LME tin shifted 5.65% lower to $33,750/ ton, and LME lead quoted 1.7% lower at $2,082 ton.

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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.