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Big news over the weekend! New regulations from the State Council are all over the news! The China Securities Regulatory Commission has made a major move, and new energy vehicles are once again welcomed... The top ten news that affected the market this week

2024-08-19

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1
Breaking news! The State Council: Local governments are not allowed to provide incentives for companies to go public, and intermediary agency fees are not allowed to be linked to IPO results


Recently, the Ministry of Justice, together with the Ministry of Finance and the China Securities Regulatory Commission, drafted the "Regulations of the State Council on Regulating the Services Provided by Intermediary Institutions for the Public Issuance of Stocks by Companies (Draft for Comments)", focusing on relevant charging issues in the services of intermediary institutions, strengthening supervision, enhancing the independence of intermediary institutions, and proposing specific regulatory requirements for different intermediary institutions. It also clarified the relevant prohibitions and penalties for intermediary institutions, issuers, and local people's governments.


The core point of the document is that it clarifies that the fees charged by intermediaries cannot be linked to the results of a company's stock issuance and listing, and emphasizes that they cannot seek improper benefits by obtaining listing incentives, etc. This is after the Ministry of Finance strictly prohibited accounting firms from providing audit services with or without fees in November last year. The regulatory authorities have expanded their focus to securities companies and law firms and unified the regulations. At the same time, they have also put forward specific regulatory requirements for various types of intermediaries based on the characteristics of the industry.


Another highlight of the document is that it also imposes constraints on local governments, requiring them not to give rewards to issuers or intermediary institutions based on the results of public stock issuance and listing. Otherwise, the rewards must be recovered and the relevant responsible personnel of the local government will also be subject to corresponding penalties. Looking back at the past, in order to attract investment and expand listing resources, local governments have put out "real money" to support local companies to go public or introduce listed companies, and provide subsidies or rewards to companies at different stages of IPO. Today, the "red envelope" trick of local governments may become ineffective.


2
The CSRC takes strong action


Recently, the China Securities Regulatory Commission issued a series of fines, and many people were punished for insider trading and stock manipulation. As the punishment was implemented, the details of the relevant responsible persons' violations were also exposed. Three people conspired with the former actual controller of Langyuan Shares to manipulate the stock price and were fined 220 million by the China Securities Regulatory Commission.Yuan. Manipulated "Zhenhai Shares" and other 4 stocks to make a profit of 24 millionYuanFeng Yuefeng and Song Xiaoping were fined more than 96 million yuan by the China Securities Regulatory Commission. Feng Yuefeng manipulated "Kanghui Pharmaceutical" and other three stocks to make a profit of 1.45 million yuanYuanWang Xianpeng made a profit of 1.62 million yuan from insider trading at Rongsheng PetrochemicalYuan, was fined 6.48 million by the China Securities Regulatory CommissionYuanInsider trading made Rongsheng Petrochemical more than 1.3 million yuan in profitYuanQuan Weijun was fined more than 5.2 million by the China Securities Regulatory CommissionYuanZhu Qingliang made a profit of 2 million yuan from insider trading in National TechnologyYuan, was fined 6 million by the China Securities Regulatory CommissionYuan


In addition, the CSRC issued a fine for "super bullish individual investor" Zhang Jianping. The fine stated that Zhang Jianping borrowed other people's securities accounts, which violated Article 58 of the Securities Law of the People's Republic of China and constituted the act of borrowing other people's securities accounts as described in Article 195 of the Securities Law. The person who lent the securities account was Zhang Jianping's father-in-law Fang Deji. Both of them were fined the maximum amount of 500,000 yuan by the CSRC.


3
Shanghai Stock Exchange: Sci-Tech Innovation Board adds 6 million yuan threshold requirement for related stock market value for offline new listings


In order to implement the relevant opinions of the China Securities Regulatory Commission on "Eight Measures on Deepening the Reform of the Science and Technology Innovation Board to Serve Technological Innovation and the Development of New Productivity" and improve the arrangements for the market value allocation of new shares on the Science and Technology Innovation Board, the Shanghai Stock Exchange and China Securities Depository and Clearing Co., Ltd. have revised the "Implementation Rules for the Offline Issuance of Initial Public Offerings on the Shanghai Market (Revised in 2023)".


This revision mainly adds requirements for investors participating in the offline issuance of new shares on the Science and Technology Innovation Board by holding the market value of the Science and Technology Innovation Board. From October 1, 2024, offline investors and the allotment objects they manage participating in the offline issuance of new shares on the Science and Technology Innovation Board, in addition to meeting the current market value threshold requirements, the lead underwriter should also require that the average daily market value of the total market value of non-restricted A shares and non-restricted depositary receipts held on the Science and Technology Innovation Board in the 20 trading days before the base date (two trading days before the start of the preliminary inquiry) (including the base date) be RMB 6 million or more.


4
Shanghai issues document on low-altitude economy


On August 16, Shanghai issued the "Shanghai Low-altitude Economic Industry High-quality Development Action Plan (2024-2027)". It mentioned that by 2027, a complete industrial system of R&D, design, assembly, manufacturing, airworthiness testing and commercial application of new low-altitude aircraft will be established, and Shanghai will be built into a highland of innovation, commercial application and operation services for low-altitude economic industry. The scale of the core industry will reach more than 50 billion yuan, and Shanghai will be at the forefront of the innovative development of the global low-altitude economy. Together with the cities in the Yangtze River Delta, the first batch of low-altitude inter-provincial aviation cities in the country will be built, and a comprehensive demonstration and leading area for the national low-altitude economic industry will be built to accelerate the creation of a "Sky City" with international influence.


The low-altitude communication network is an important part of the construction of low-altitude economic infrastructure. On the same day, the Shanghai Municipal Communications Administration issued the "Guiding Opinions on Shanghai's Information and Communication Industry to Accelerate the Construction of Low-altitude Intelligent Network to Promote the Development of the City's Low-altitude Economy", proposing to gradually achieve the coverage of low-altitude intelligent network based on 5G-A in stages and regions, and to build a communication network with continuous coverage of the entire low-altitude flight route by 2026.


5
Subsidies doubled, new round of car trade-in details are here


On August 16, the Ministry of Commerce and seven other departments issued the "Notice on Further Improving the Work of Auto Trade-in".Compared with the first round of implementation details released in April, the subsidy standards this time have been greatly increased.In terms of car scrapping and renewal, the subsidy standard has been increased from the original 10,000 yuan subsidy for purchasing new energy passenger cars and 7,000 yuan subsidy for purchasing fuel passenger cars to 20,000 yuan and 15,000 yuan respectively, both of which have increased by more than 100%. This policy will also include replacement and renewal in the subsidy scope. The state directly arranges ultra-long-term special treasury bond funds to local governments to support local governments in independently carrying out replacement and renewal.


6
Preview: The disclosure mechanism of Shanghai-Shenzhen-Hong Kong Stock Connect transactions will be adjusted, the August LPR will be announced, and the Jackson Hole Annual Meeting will be held


August 20, China will release the 1-year and 5-year LPR. July data showed that the 1-year LPR was 3.35%, and the 5-year LPR was 3.85%. Both the 1-year and 5-year LPRs fell by 10 basis points simultaneously.


The Shanghai Stock Exchange and the Shenzhen Stock Exchange have previously announced that they have decided toFrom August 19Adjust the information disclosure mechanism for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. In terms of Shanghai Stock Connect and Shenzhen Stock Connect, after the adjustment, the total transaction volume and total number of transactions of Shanghai Stock Connect and Shenzhen Stock Connect, the total transaction volume of ETFs, the list of the top ten most active securities and their total transaction volume will be announced after the close of each Shanghai Stock Connect and Shenzhen Stock Connect trading day, and the summary of the above data will be announced on a monthly and annual basis. The total number of Shanghai Stock Connect and Shenzhen Stock Connect investors holding a single security at the end of the previous quarter will be announced on the fifth Shanghai Stock Connect and Shenzhen Stock Connect trading day of each quarter. In terms of Hong Kong Stock Connect, during the adjusted trading hours, when the remaining quota of the Hong Kong Stock Connect on that day is more than 30%, it will be displayed as sufficient; when the remaining quota on that day is less than 30%, the daily quota balance of the Hong Kong Stock Connect will be announced in real time.


August 22-24The annual Jackson Hole Annual Meeting will be held at Jackson Lake Lodge in Grand Teton National Park, Wyoming, USA. The Jackson Hole Annual Meeting is one of the oldest central bank meetings in the world and is also known as the "Davos Forum for Central Bank Governors."


7
Monkeypox concept stocks surged, and international gold prices hit a record high


As of the close of last Friday, the three major U.S. stock indexes closed higher, with the Dow up 0.24%, the Nasdaq up 0.21%, and the S&P up 0.20%. GeoVax Labs, a monkeypox concept stock, rose more than 110%, and Emergent Biosolutions rose more than 24%. Most large technology stocks rose, with Nvidia up more than 1%. Precious metals and diversified banking sectors led the gains. International gold prices soared, hitting a record high. As of the close of the day, the main contract of COMEX gold futures rose 1.82% to $2,537.80 per ounce.


Popular Chinese concept stocks rose across the board, with the Nasdaq China Golden Dragon Index up 1.92%. JD.com rose more than 8%, Li Auto rose more than 6%, Alibaba rose more than 4%, Weibo, Vipshop, Bilibili, Baidu, and NIO rose more than 3%.


8
The China Securities Regulatory Commission approved the IPO registration of one company


The China Securities Regulatory Commission approved the IPO registration of one company on the Growth Enterprise Market.The CSRC agreesZhejiang Lanyu Digital Technology Co., Ltd.Registration of initial public offering of stocks on the Growth Enterprise Market.


9
Tip: 3 new stocks to buy this week


This weekAugust 19th~August 23rdThere are 3New shares were issued on Monday: Jialiqi; Tuesday: Chengdian Optoelectronics; Friday: Yinuosi.



10
This week, nearly 74.7 billion yuan of restricted shares were released, and the market value of Shanghai Rural Commercial Bank's released shares exceeded 30.7 billion yuan


Data shows that this weekAugust 19th~August 23rd) A total of 54 companies' restricted shares were gradually released, with a total of 8.344 billion shares released. Based on the closing price on August 16, the market value of the released shares was 74.68 billion yuan.


In terms of unblocked market value, the top three are:Shanghai Rural Commercial Bank(30.704 billion yuan), China Shipbuilding Technology (4.21 billion yuan), and China Telecom (3.96 billion yuan).


In terms of the proportion of unblocking, the top three are: Golden Eagle Heavy Industry (75%), Hengsheng Energy (74.45%), and Guozi Software (71.77%).



Editor: Tactical Heng

Proofreading: Gao Yuan


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