DZ20221219

 

The Central Economic Working Conference

*The Central Economic Working Conference was held during Dec 15th to 16th and some key takeaways as follow. 1) overall deepen reform and opening up with integration of domestic demand expansion and structural reform of supply. Stable growth, employment and product price will be maintained, major risk to be effectively prevented to realize reasonable growth with quality. 2) active fiscal policy and stable monetary policy to be implemented with macro policy adjustment to be enhanced to keep controllable debt risk and maintain abundant liquidity. 3) Expansion of domestic demand to be prioritized with residential income to be increased. 4) Housing is for living rather than speculation. 5) development of digital economy is under supports with normalized supervision to be improved. 6) renovation and upgrade of traditional industries to be promoted along with cultivation of strategic emerging industries for virtuous cycle of tech, industry and finance.

 

Financials

*Financial stability law already entered legislative process and likely to be issued in 2023, which to play a significant role in prevention of financial risk, said by vice head of PBoC.

 

Industrial Economy

*NDRC suggested pork price has exited alert range of excessive price hike after weekly retail price gained lower than 30% y/y during Dec 5th to 9th.

*National Energy Administration: China coal capacity in Jan-Nov of 4.09bn ton, up 9.7% y/y and by 360mio ton, to new high for record.

*National Energy Administration: China total capacity of power installment around 2.51bn kw as of end-Nov, up 8.1% y/y. Wind power installment contributed around 350mio kw, up 15.1% y/y and solar power installment accounts for around 370mio kw, up 29.4% y/y.

 

*Dec 16th Block Trade

*Block Trade Info

*Discount

- Zhongji Innolight Co. (300308 CH) saw 8 block trades worth 99mn at 26.09 yuan per share, 6.11 discount from last closing.

- Avic Jonhon Optronic Tech (002179 CH）saw 1 block trade worth 54mn at 56.47 yuan per share, 2.89 discount from last closing.

- Weifang Rainbow Chemical Co. (301035 CH) saw 1 block trade worth 83mn at 71.77 yuan per share, 19.97 discount from last closing.

- Red Star Macalline (601828 CH) saw 6 block trades worth 23mn at 4.72 yuan per share, 10.61 discount from last closing.

- Meijin Energy Co. (000723 CH) saw 2 block trades worth 50mn at 9.22 yuan per share, 2.02 discount from last closing.

- Montage Technology Co. (688008 CH) saw 7 block trades worth 32mn at 60.6 yuan per share, 7.34 discount from last closing.

*Premium

- Will Semiconductor Co. (603501 CH) saw 1 block trade worth 37mn at 85 yuan per share, 2.13 premium from last closing.

- Telling Telecommunication Holding Co. (000829 CH) saw 2 block trades worth 81mn at 10.79 yuan per share, 4.15 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 closed down collectively. January NYMEX contract down 2.12% to closed at $74.50/b, February Brent contract down 2.44% to closed at $79.23/b. INE crude oil active contract down 2.27% to closed at 524.5 yuan/b.

* Precious metals closed up collectively. COMEX gold contract up 0.85% to closed at $1803/oz. SHFE gold active contract up 0.47% to closed at 404.24 yuan/gram.

* Metals closed down mostly, LME zinc down 3.5%, LME lead down 0.35%, LME aluminum down 0.21%. SHFE zinc down 1.59%, bonded copper down 1.06%, SHFE copper down 0.69%, SHFE aluminum down 0.32%.

* Commodity futures closed down collectively. Energy & chemistry futures saw weak performance, fuel oil down 4.04%, soda ash down 2.39%, glass down 2.25%, PVC down 1.62%, bleached softwood kraft pulp down 1.41%. Black series closed down collectively, coke down 4.17%, coking coal down 3.56%, hot-rolled coil down 3.07%, steel rebar down 2.83%, iron ore down 2.73%. Agricultural products closed mixed, cotton down 2.15%, rapeseed oil down 1.94%, RBD palm olein down 1.55%, soybean oil down 1.48%, cotton yarn down 1.32%.

 

 

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