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Cailianshe reported on August 11 that the important information affecting the market over the weekend included: China Securities Regulatory Commission: Future capital market reform needs to pay more attention to the balance between investment and financing; Central Bank: Improve the housing rental financial support system to support the destocking of existing commercial housing; Zhao Xuejun, chairman of Harvest Fund, cooperated with the investigation of relevant departments due to personal issues.

Macro and market news

The central bank: We will always maintain the stability of monetary policy and study the moderate narrowing of the interest rate corridor

The People's Bank of China's official account said that in the next step, the People's Bank of China will always maintain the stability of monetary policy, further improve the market-oriented interest rate formation, regulation and transmission mechanism, enhance the authority of policy interest rates, study the appropriate narrowing of the interest rate corridor width, and send a clearer interest rate regulation target signal to the market. At the same time, continue to reform and improve the LPR, focus on improving the quality of LPR quotations, better play the role of the interest rate self-discipline mechanism, maintain a rational and orderly competitive order, smooth the interest rate transmission channel, and create a good monetary and financial environment for economic recovery and high-quality development.

Central Bank: Gradually increase the purchase and sale of treasury bonds in open market operations and carry out temporary positive and reverse repurchase operations when necessary

The People's Bank of China released the China Monetary Policy Implementation Report for the second quarter of 2024. Next, maintain a reasonable growth in financing and money supply. Enrich the monetary policy toolbox, enrich and improve the methods of base money supply, and gradually increase the purchase and sale of treasury bonds in the central bank's open market operations. Pay close attention to the changes in monetary policies of major overseas central banks, continue to strengthen the analysis and monitoring of the supply and demand of liquidity in the banking system and changes in financial markets, carry out open market operations flexibly and effectively, carry out temporary positive and reverse repurchase operations when necessary, and use a variety of monetary policy tools to maintain a reasonable abundance of liquidity in the banking system and a stable operation of money market interest rates.

China Securities Regulatory Commission: Future capital market reform needs to pay more attention to the balance between investment and financing

The "Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Promoting Chinese-style Modernization" was recently released, which made arrangements for further deepening capital market reform and made arrangements such as "improving the capital market function of coordinating investment and financing", "promoting the healthy and stable development of the capital market", and "establishing a long-term mechanism to enhance the inherent stability of the capital market". Zhang Wangjun, Director of the First Market Department of the China Securities Regulatory Commission, said: "'Improving the capital market function of coordinating investment and financing' was first proposed in the Decision, which reflects the central government's new expectations and requirements for the positioning, functions and role of the capital market under the new situation. Future capital market reform needs to pay more attention to the balance between investment and financing."

Industry News

Central Bank: Improve the housing rental financial support system to support the destocking of existing commercial housing

The People's Bank of China's official account said that in the future, as real estate market pricing becomes more rational, rental demand is further released, the rental-to-sale ratio continues to improve, and the operational capacity of housing rental companies continues to improve, the housing rental market has a basis for achieving commercial and sustainable development. In the next stage, we must continue to play a good role in promoting the housing rental industry through supporting policies, improve the housing rental financial support system, and at the same time, fully mobilize the enthusiasm of market-oriented institutions, establish a sustainable business model through more social capital investment, support the destocking of existing commodity housing, and help promote the transformation and development of the real estate industry.

Guangdong Province: Urge real estate companies to raise funds through various means to save themselves and prevent them from "lying flat and letting things go bad"

According to the website of the Guangdong Provincial Department of Housing and Urban-Rural Development on August 10, on the morning of August 8, the Guangdong Provincial Department of Housing and Urban-Rural Development, the Guangdong Provincial High People's Court, the Guangdong Supervision Bureau of the State Financial Supervision and Administration Bureau, and the Shenzhen Supervision Bureau jointly held a provincial meeting on the coordination mechanism for the guaranteed delivery of housing and urban real estate financing. The meeting emphasized that it is of great significance to fight the battle for guaranteed delivery of commodity housing projects and do a good job in the guaranteed delivery of housing, which is of great significance to protecting the legitimate rights and interests of home buyers and promoting the stable and healthy development of the real estate market. The goal and task must be completed resolutely. The establishment of an urban real estate financing coordination mechanism with cities as units and projects as carriers is an important measure to change the financing mode of real estate development and meet the reasonable financing needs of real estate enterprises of different ownerships equally. It must be resolutely implemented to ensure greater results. The meeting required that we must resolutely fight and win the battle for guaranteed delivery of housing, do a good job in guaranteed delivery of housing, and promote greater results in the coordination mechanism for urban real estate financing. Urge real estate companies to raise funds for self-help through asset disposal and realization and other methods, and resolutely put an end to real estate companies "lying flat and rotting".

Ministry of Commerce: China sued the EU in the WTO for temporary anti-subsidy measures on electric vehicles and urged the EU to immediately correct its wrong practices

The spokesperson of the Ministry of Commerce answered questions from reporters on China's lawsuit against the EU's temporary anti-subsidy measures on electric vehicles in the WTO. Q: It is reported that China has filed a lawsuit against the EU's temporary anti-subsidy measures on electric vehicles in the WTO. Could you please give us more details?

A: In order to safeguard the development rights and interests of the electric vehicle industry and global green transformation cooperation, on August 9, China brought the EU's temporary anti-subsidy measures on electric vehicles to the World Trade Organization dispute settlement mechanism. The EU's preliminary ruling lacks factual and legal basis, seriously violates WTO rules, and undermines the overall situation of global cooperation in addressing climate change. We urge the EU to immediately correct its wrong practices and jointly maintain the stability of China-EU economic and trade cooperation and the electric vehicle industry chain supply chain.

State Financial Supervision and Administration Bureau: Property insurance companies are strictly prohibited from expanding their offline business through the Internet to avoid local supervision

The State Financial Supervision and Administration Bureau issued a notice on strengthening and improving the supervision of Internet property insurance business. In principle, qualified property insurance companies can expand the operating area of ​​Internet property insurance business to provinces (autonomous regions, municipalities directly under the central government, and cities with independent planning status) where no branches have been established, and report the expansion of Internet property insurance business to the dispatched agencies in the expansion areas in a timely manner. Property insurance companies are strictly prohibited from expanding the operating area of ​​offline business through the Internet to evade local supervision.

Harvest Fund Chairman Zhao Xuejun cooperates with relevant departments in investigation due to personal issues

Harvest Fund announced today that the company learned from relevant parties on August 9, 2024 that Zhao Xuejun was cooperating with relevant departments for investigation due to personal issues, and the cooperation with the investigation has nothing to do with the company's fund business. At present, Zhao Xuejun has resigned from the position of chairman of the company. The company's board of directors has made proper arrangements, and co-chairman An Guoyong will act as the chairman of the company. The company's senior management and investment research team are stable, and operations are normal.

2024 Summer Movie Box Office Exceeds 9 Billion

According to real-time data from the online platform, as of 18:57 on August 10, the total box office (including pre-sales) for the 2024 summer season (June-August) exceeded 9 billion!

Company News

Zhongqingbao, Renzixing and Tongde Chemical announced on the same day that they were filed by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations

As of press time, according to incomplete statistics from Cailianshe, three A-share listed companies including Zhongqingbao, Renzixing and Tongde Chemical announced that they were filed with the China Securities Regulatory Commission after the market closed. Among them, Zhongqingbao and its actual controller Zhang Yunxia were filed with the China Securities Regulatory Commission for suspected information disclosure violations; Renzixing was filed with the China Securities Regulatory Commission for suspected information disclosure violations. The company stated that the reason for the case was mainly due to the fact that its wholly-owned subsidiary Beijing Yahong Century Technology Development Co., Ltd. had overstated assets, overstated income, and overstated profits in the relevant years; Tongde Chemical was filed with the China Securities Regulatory Commission for suspected information disclosure violations.

Beijing Procuratorate prosecuted 49 people including Gao Moumou, former chairman of the board of directors of Zhongzhi Enterprise Group

The Chaoyang Branch of Beijing Municipal Public Security Bureau transferred 49 criminal suspects including Gao Moumou, the former chairman of the board of directors of Zhongzhi Enterprise Group Co., Ltd., to the procuratorate for review and prosecution. After being designated by the Beijing Municipal People's Procuratorate for jurisdiction, the First Branch of Beijing Municipal People's Procuratorate reviewed the case in accordance with the law and filed a public prosecution against Gao Moumou and 49 others for the crime of illegally absorbing public deposits with the Beijing First Intermediate People's Court in accordance with the law.

Shenyang Chemical: The China Securities Regulatory Commission has decided to file a case against the company for suspected illegal information disclosure

Shenyang Chemical announced that the company received the "Notice of Filing of a Case by the China Securities Regulatory Commission" issued by the China Securities Regulatory Commission on August 9, 2024. The China Securities Regulatory Commission decided to file a case against the company because the company was suspected of violating laws and regulations on information disclosure. At present, the company's various production and operation activities are carried out normally.

Dazhong Transportation: Plans to sell its shares in Minsheng Securities to Guolian Securities for RMB 576 million

Volkswagen Transportation announced that since the audit and evaluation work of Minsheng Securities has been completed, on August 8, 2024, the company and Guolian Securities signed the "Agreement on Issuing Shares to Purchase Assets", stipulating that the company intends to sell 220,426,157 shares of Minsheng Securities held by it to Guolian Securities at a price of 575.8541 million yuan; Guolian Securities will pay the consideration by issuing A shares, and the share issuance price is 11.17 yuan/share. The corresponding company will subscribe for 51,553,631 newly issued A shares of Guolian Securities with the target assets (the final number of shares issued shall be subject to the number registered by the China Securities Regulatory Commission).

Juchen shares: net profit in the first half of the year increased by 124.93% year-on-year

Juchen Co., Ltd. announced that the company achieved operating income of 515 million yuan in the first half of 2024, a year-on-year increase of 62.37%; net profit attributable to shareholders of listed companies was 143 million yuan, a year-on-year increase of 124.93%. The company's SPD products, NOR Flash products and automotive-grade EEPROM products achieved rapid year-on-year growth in shipments during the reporting period, driving the company's operating income in the first half of the year to achieve the best performance in the same period in history. Xiaocai Note: Q1 net profit was 51.0906 million yuan. Based on this calculation, Q2 net profit was 91.8698 million yuan, a month-on-month increase of 80%.

ST Yaxing: Proposed withdrawal of the company's stock trading on the Shanghai Stock Exchange. The exercise price of the cash option is 6.42 yuan per share

*ST Asia Star announced that it plans to withdraw the company's shares from trading on the Shanghai Stock Exchange, and the exercise price of the cash option is 6.42 yuan per share. Xiaocai Note: The closing price of *ST Asia Star on the last trading day before the suspension was 5.84 yuan per share, and the exercise price of the cash option is 9.93% higher than the closing price.

Loncin General: Zongshen New Intelligent Manufacturing will acquire 4.94% of the company's shares

Loncin General announced that on August 7, 2024, the managers of 13 companies including Loncin Holdings received a civil ruling from the Fifth Intermediate People's Court of Chongqing, ruling that 101 million shares of Loncin General held by Loncin Holdings be transferred to Zongshen New Intelligence. The shares transferred by the ruling are the number of Loncin General shares corresponding to the first restructuring investment paid by Zongshen New Intelligence, accounting for 4.94% of the total share capital of Loncin General. This equity change still requires the Fifth Intermediate People's Court of Chongqing to issue a notice of assistance in execution and apply to the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. to transfer 4.94% of the company's shares to Zongshen New Intelligence.

Ningxia Building Materials: Termination of major asset restructuring

Ningxia Building Materials announced that the company decided to terminate the share exchange and absorption merger of China National Building Materials Information Technology Co., Ltd. and the sale of major assets and raising of supporting funds and related matters of related transactions.

Oriental Fortune: Net profit in the first half of 2024 will decrease by 4% year-on-year

Dongfang Fortune announced that in the first half of 2024, the company's total operating income was 4.945 billion yuan, a year-on-year decrease of 14.00%; the net profit attributable to shareholders of the listed company was 4.056 billion yuan, a year-on-year decrease of 4.00%. Xiaocai Note: Q1 net profit was 1.954 billion yuan. Based on this calculation, Q2 net profit was 2.102 billion yuan, a month-on-month increase of 7.59%.

King Long Motors: Net profit in the first half of 2024 was 66.3961 million yuan, a year-on-year increase of 41.7%

King Long Automobile announced that the company achieved operating income of 9.763 billion yuan in the first half of 2024, a year-on-year increase of 4.19%; net profit attributable to shareholders of listed companies was 66.3961 million yuan, a year-on-year increase of 41.7%. Xiaocai Note: Q1 net profit was 17.6595 million yuan. Based on this calculation, Q2 net profit was 48.7365 million yuan, a month-on-month increase of 176%.

Seres: Plans to acquire minority shareholders' equity of Seres Auto for RMB 1.329 billion

Seres announced that it plans to acquire 19.355% of Seres Automotive Co., Ltd. ("Seres Automotive"), a minority shareholder of its holding subsidiary, Chongqing Jinxin Equity Investment Fund Partnership (Limited Partnership), for approximately RMB 1.329 billion. After the transaction is completed, the company's shareholding in Seres Automotive will increase from 80.645% to 100%.

Beijing Lier: Wholly-owned subsidiary plans to sell Minsheng Securities equity for RMB 384 million and subscribe for shares issued by Guolian Securities

Beijing Lier announced that its wholly-owned subsidiary Luoyang Lier signed the "Agreement on Issuing Shares to Purchase Assets" with Guolian Securities. Luoyang Lier sold 147 million shares of Minsheng Securities Co., Ltd. held by it to Guolian Securities at a price of 384 million yuan, and subscribed for 34.3691 million newly issued A shares of Guolian Securities with the target assets.

CICC: Haier Jinying plans to reduce its holdings of no more than 2.1964% of the company's shares

CICC announced that its shareholder Haier Jinying plans to reduce its holdings of no more than 106,026,300 A shares of the company through block trading or centralized bidding within three months after the end of the third trading day from the date of disclosure of the announcement (i.e. from August 15, 2024 to November 14, 2024), accounting for no more than 2.1964% of the company's total share capital. As of the date of disclosure of this announcement, Haier Jinying holds 106,026,300 A shares of the company, accounting for 2.1964% of the company's total share capital, all of which were acquired before the company's initial public offering of A shares and listing.

Sophia: The subsidiary's shares in Minsheng Securities will be exchanged for shares in Guolian Securities at a price of RMB 768 million

Sofia announced that its wholly-owned subsidiary Guangzhou Sofia Investment Co., Ltd. ("Sofia Investment") signed an "Agreement on Issuing Shares to Purchase Assets" with Guolian Securities, intending to sell 294 million shares of Minsheng Securities held by it to Guolian Securities at a price of RMB 768 million, and accept Guolian Securities to issue 68.7382 million A shares to Sofia Investment as consideration. Through this transaction, Sofia Investment will exchange its shares of Minsheng Securities for A shares of Guolian Securities.

*ST Weichuang locked in delisting at par value and hit the daily limit for 25 consecutive trading days

*ST Weichuang announced that as of August 9, 2024, the closing price of the company's stock has been below 1 yuan for 11 consecutive trading days, and there is a risk that the company may be delisted due to the stock price being lower than the par value. According to the Shenzhen Stock Exchange regulations, if the closing price of a company's stock is below 1 yuan for 20 consecutive trading days, it will be delisted and will not enter the delisting consolidation period.

Overseas News

The three major U.S. stock indexes closed higher last Friday, with most popular technology stocks rising

The three major U.S. stock indexes closed higher last Friday, with the Dow Jones Industrial Average up 0.13% and down 0.6% this week; the Nasdaq rose 0.51% and fell 0.18% this week; the S&P 500 rose 0.47% and fell 0.04% this week. Most of the popular technology stocks rose, with Apple and Meta rising more than 1%. Pharmaceutical manufacturing, travel services, and computer hardware saw the largest gains, with Eli Lilly up more than 5%, Novo Nordisk up more than 4%, American Network Storage up more than 2%, Dell Technologies, HP, and Carnival Cruise Line up more than 1%. Solar energy, auto parts, and transportation stocks saw the largest declines, with United Pacific falling more than 1%, Solar Impulse falling more than 3%, and Canadian Solar falling more than 2%.

Trump's plane landed safely after malfunction

According to U.S. media reports, on August 9, local time, the Republican presidential candidate and former President Trump flew to Bozeman, Montana to attend a rally. During the flight, the plane changed its route due to a mechanical failure and finally landed safely in Billings near Bozeman.

Nasdaq takes action on penny stocks to remove suspicious companies with share prices below $1 per share

Nasdaq is taking steps to weed out suspicious companies trading below $1 a share, according to a document posted on its website Thursday, following criticism that the exchange has become home to hundreds of risky, low-priced stocks. Two proposed rule changes announced by Nasdaq on Thursday would tighten some rules regarding stocks trading below $1, potentially speeding up the delisting process for non-compliant companies. Under one of the proposed rule changes, companies that reach the second 180-day grace period would not be able to delay delisting through an appeal. The second proposed rule change would speed up the delisting process for companies that have recently undergone a reverse stock split.