Morning Brief 2022-07-29

DZ20220729

 

Macro

*Key points from China politburo meeting held on July 28th. 1) real estate market to be kept stable with policy tool box well used and rigid/improving housing demand supported. 2) China will strive for "best outcome" for 2H economic growth with economic operation maintained at reasonable range. 3) Macro policy shall be played on basis of demand expansion with fiscal monetary policy issued to effectively made up shortage of social demand. 4) Rectification of platform economy to be completed with normalized supervision adopted and a batch of green light investment cases to be promoted. 5) 3-year action plan of state-owned reform to be carried forward. 6) China will stick to covid zero policy.

 

Industrial Economy

*Shanghai recently issued opinions on carbon neutral and peak which clarified top design of work and aims to see energy consumption per unit of GDP down by 14% in 2025 vs 2020 with proportion of non-fossil reach 20%/30% and forest coverage over 19.5%/21% respectively in 2025 and 2030. Ten actions of carbon peak to be carried forward, including green low carbon transformation, development of wind, solar and biomass energy as well as offshore wind power and PV+.

*Shanghai issued plan to promote innovative development of smart internet connected vehicles which pointed out to cultivate leading firms, take Linggang new district as breaking point and to build up development highland of hydrogen industry.

 

Co Focus

*Northern Rare Earth (600111 CH) and Inner Mongolia Baotou Steel Union (600010 CH) were in discussion to lift offering price of rare earth concentrate by over 40%, which has been voted down by medium-small shareholders of the former company.

*President of China Integrated Circuit Industry Investment Fund is under investigation by authorities and still has no contact, according to someone familiar with this matter.

 

July 28th Block Trade

*Block Trade Info

*Discount

- SMIC (688981 CH) saw 1 block trade worth 40mn at 40.37 yuan per share, 1.49 discount from last closing.

- Zhongshan Public (000685 CH) saw 3 block trades worth 20mn at 6.74 yuan per share, 10.37 discount from last closing.

- Chiway Industry (002374 CH) saw 2 block trades worth 99mn at 4.8 yuan per share, 8.05 discount from last closing.

- iRay Tech (688301 CH) saw 2 block trades worth 69mn at 458.69 yuan per share, 1.25 discount from last closing.

- Vantone Neo Development (600246 CH) saw 4 block trades worth 39mn at 9.67yuan per share, 8.43 discount from last closing.

- Trina Solar Co. (688599 CH) saw 6 block trades worth 82mn at 77.83 yuan per share, 7.33 discount from last closing.

 

*Flat

- Yonyou Network (600588 CH) saw 2 block trades worth 47mn at 21 yuan per share, 0.00 discount from last closing.

- Anysoft IT (300571 CH) saw 6 block trades worth 41mn at 40.17 yuan per share, 13.13 discount 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 closed up collectively. September NYMEX crude oil contract up 0.04% to closed at $97.30/b, September Brent contract up 0.72% to closed at $102.40/b.

* Precious metals closed up collectively. COMEX gold active contract up 2% to closed at $1753.4/oz, SHFE gold active contract up 1.35% to closed at 383.18 yuan/gram.

* Metals closed mixed. LME zinc up 4.01%, LME aluminum up 1.75%, LME copper up 1.34%, LME lead down 0.35% on the contrast. SHFE zinc up 2.8%, SHFE aluminum up 1.99%, SHFE copper up 0.98%. SHFE lead down 0.1%.

* Commodity futures closed up mostly. Energy & chemistry futures showed a strong performance, glass up 4.3%, PVC up 3.73%, methanol up 3%, soda ash up 2.4%, fuel oil up 2.29%, MEG up 1.75%. Black series went up collectively, coking coal up 4.99%, iron ore up 2.67%, coke up 2.52%, thermal coal up 1.54%, hot-rolled coil up 1.32%. Agricultural products closed up mostly, RBD palm olein up 4.51%, soybean oil up 2.67%, rapeseed oil up 2.47%, No.1 soybeans up 1.13%, sugar up 0.96%.

 

 

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