DZ20220601

 

*Key points

Policy

*China cuts purchase tax for qualified passenger vehicles by half from June 1st to Dec 31st 2022, according to notice issued by MoF and State Administration of Taxation.

*Four ministries issued notice on delayed payment of social insurance fees in steps in catering, retail, tourism, civil aviation and public transportation industries in difficulties. Subsidies will be given for employment of colleges graduates, to be effective until end of 2022.

*Shanghai Stock Exchange issued notice on fee reduction which cut user fees of trading units from 45k to 30k per unit and to surrender profit to market entities over cny 433mio.

*MoF issued notice to further enhance government purchase to support medium-small firms with price deduction of discounts lifted up and more projects will be reserved in 2H 2022.

 

Industrial Economy

*China to encourage rural sale of NEV, home appliance and green materials to boost commodity consumption with policy of purchase tax deduction well used and “old in exchange for new” encouraged in some regions to expand sales of new vehicles. Besides, construction of charging facilities to be supported.

 

Co Focus

*BYD has struck deals to buy 6 lithium mines in Africa and quantity of mine ore with lithium hydroxide in 2.5% grade to exceed 25mio ton, equivalent to 1mio ton lithium carbonate and can satisfy demand of power battery from 27.78mio units of pure-electric vehicles (10 year for BYD based on sales target in 2022) if been fully explored.

 

May 31st Block Trade

*Block Trade Info

*Discount

- SMIC (688981 CH) saw 2 block trades worth 75mn at 41.64yuan per share, 2.89 discount from last closing.

- Ping An Insurance (601318 CH) saw 1 block trade worth 36mn at 40.2yuan per share, 9.05 discount from last closing.

- Merchants Bank (600036 CH) saw 1 block trades worth 27mn at 39.07 yuan per share, 1.56 discount from last closing.

- iRay Tech (688301 CH) saw 6 block trades worth 62mn at 386.1yuan per share, 1.00 discount from last closing.

- Salt Lake (000792 CH) saw 4 block trades worth 109mn at 31.21yuan per share, 1.01 discount from last closing.

- Wanhua Chemical (600309 CH) saw 8 block trades worth 552mn at 81.26yuan per share, 3.4 discount from last closing.

- Junshi Biosciences (688180 CH) saw 5 block trades worth 82mn at 82.2yuan per share, 2.7 discount from last closing.

 

*Premium

- Nanxing Machinery (002757 CH) saw 1 block trade worth 75mn at 12.69yuan per share, 5.75 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):

* Global crude oil price performed mixed. July NYMEX crude oil contract up 0.17% to closed at $115.26/b, August Brent contract down 1.13% to closed at $116.27/b. INE crude oil active contract down 2.56% to 726 yuan/b.

* COMEX gold active contract down 0.93% to closed at $1840/oz, SHFE gold active contract closed at 397.24 yuan/gram (down 0.48%).

* Metals mostly performed mixed. LME aluminum down 3.44%, copper down 1.09%. SHFE aluminum down 2.12%, copper down 0.76%.

* Commodity futures performed mixed, Energy & chemistry futures saw diverge performance, fuel oil up 2.04%, LPG down 0.97%. Black series all closed up, coking coal up 2.2%, thermal coal up 1.55%, coke up 1.42%. Agriculture futures mostly went down, soybean meal down 1.81%, rapeseed meal down 1.8%.

 

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