Category: Flash News

On March 18th, the Central Office and the State Council Office issued the “Special Action Plan to Boost Consumption” on March 16th. The Plan proposes to vigorously boost consumption, comprehensively expand domestic demand, increase income and reduce burden to enhance consumption capacity, create effective demand with high-quality supply, optimize the consumption environment to enhance consumption willingness, and address prominent contradictions that constrain consumption. The policy dividend continues to be released, and the supply side of the consumer industry is accelerating its transformation. Reporters interviewed multiple listed companies and found that from upgrading intelligent manufacturing to deepening the integration of data and reality, from expanding scene innovation to improving urban-rural networks, listed companies in the consumer industry chain promote a positive interaction between the supply and demand sides through collaborative innovation in technology, business formats, and channels. Industry insiders believe that under the dual drive of policies and markets, the consumer industry is shifting from scale expansion to quality improvement. Innovative supply capacity, omnichannel penetration efficiency, and response speed to sinking markets will become important competitive advantages for listed companies to seize the new round of consumer recovery opportunities. (China Securities Journal)

On March 18th, the latest information disclosed by the Hong Kong Stock Exchange showed that Ruizhong Insurance recently increased its holdings of H-shares in CITIC Bank and hit the holding line. Since the beginning of this year, insurance fund listings have been active, with bank stocks, as one of the representatives of dividend assets, becoming the main targets for insurance fund listings. Several individuals from insurance institutions have expressed that the demand for long-term investment by insurance fund leaders has become more urgent this year. In response to the policy of long-term capital entering the market and adapting to asset liability management under the switching of accounting standards, a major focus of insurance funds in equity investment is to increase allocation and hold high dividend stocks and other dividend assets for a long time. (China Securities Journal)

US President Trump announced on the 17th local time that he will have a phone call with Russian President Putin on the issue of a ceasefire between Russia and Ukraine in the morning of the 18th. Trump posted on his social media platform “Real Social” that “many aspects of the final agreement have been agreed upon, but there are still many issues that have not been resolved. He said that this war must end immediately and he is “looking forward to” the call with Putin.

On March 18th, the continuous adjustment of the bond market since February has led to a decline in the yield of wealth management products, triggering some investors to actively redeem, resulting in a significantly weaker growth in the scale of wealth management products in February compared to the growth level shown by seasonal patterns. The market was once concerned that the redemption of this round of wealth management products may trigger negative feedback effects. However, industry insiders believe that after the adjustment of the bond market, its cost-effectiveness is gradually recovering. Currently, rural commercial banks and insurance institutions continue to increase bond allocation, and the entry of allocation funds not only provides support for the stabilization of the bond market, but also significantly reduces negative feedback risks. The space for further adjustment of the bond market is limited. (China Securities Journal)

On March 18th, the Central Office and the State Council recently issued the “Special Action Plan to Boost Consumption”, which proposes to “increase the guarantee of childbirth and child rearing. Study and establish a child rearing subsidy system”. Subsequently, the related topic quickly became a hot topic. The recently released policies encouraging childbirth in Jiangsu, Zhejiang, and other regions are highly in line with the spirit of the ‘Plan’. Zhan Junhao, a partner at Fuzhou Gongsun Ce Public Relations Consulting Co., Ltd., said, “The introduction of the ‘Plan’ has a positive significance in encouraging childbirth. Increasing the guarantee of childbirth and nurturing can reduce the burden of family parenting and increase the willingness to have children. This will have a positive impact on listed companies in related industry chains such as maternal and child care, children’s education, and children’s products.” (Securities Daily)

On March 18th, an article in the Economic Daily stated that the realization of new industrialization cannot be achieved without the strong support of the capital market. The deepening of new industrialization also provides ample momentum for the high-quality development of the capital market. Accompany the new industrialization with patient capital. The core of “new” industrialization is technological innovation. The long cycle and high risks of technological innovation cannot be separated from the long-term irrigation of financial vitality. We need to find ways to attract more medium – and long-term funds into the market, improve the supply and structure of capital market funds, and create an institutional environment of “more money, longer money, and better returns”. We will optimize support policies for the entire chain of venture capital and private equity investment through “fundraising, investment management, and withdrawal”, guide better investment in early, small, and hard technology, promote a virtuous cycle of “technology industry finance”, and firmly become a “follower” on the road of technological innovation.

On March 18th at 06:00, the Central Meteorological Observatory continued to issue a blue warning for strong winds. It is estimated that from 08:00 on March 18 to 08:00 on March 19, there will be 5-6 winds and 7-8 gusts in central Inner Mongolia, northwest Hebei, western Qinghai, western Xizang and other places; The southeastern waters of the Yellow Sea, the northeastern waters of the East China Sea, the Taiwan Strait, the waters east of Taiwan, the Bashi Strait, and most of the South China Sea will experience strong winds of 7-8 levels and gusts of 9 levels.

On March 18th, the regulatory authorities launched a special policy tool for stock repurchase, increase in holdings, and refinancing, which officially reached four months on March 18th. According to data from Wind Information, as of March 18th, 400 A-share listed companies have disclosed a total of 420 plans for stock repurchase and increase in holdings loans since the introduction of the stock repurchase and increase in holdings policy. The maximum amount of loans to be applied for is 80.304 billion yuan, accounting for 26.77% of the initial amount (300 billion yuan). Among them, 294 orders were used for repurchase, involving a total upper limit of 47.37 billion yuan, accounting for 58.99%; 126 orders were used for shareholders to increase their holdings, with a total upper limit of 32.934 billion yuan, accounting for 41.01%. (Securities Daily)

On the evening of March 17th local time, German Federal Minister of the Interior and Land, Nancy Fezer, announced that after four days of negotiations, the third round of labor management talks between the German federal government and local government public sectors still failed to reach an agreement. Both sides will initiate mediation procedures, with independent mediators involved in coordination. According to relevant regulations, warning strikes are not allowed during the mediation period.

On March 18th, according to data from the Private Equity Ranking Network, as of the end of February, the average return of billion dollar private equity firms with performance displays this year has exceeded 3%, with positive returns accounting for over 90%. In the process of recovering performance, the attacking momentum of billion dollar private equity has become increasingly strong. According to statistics, as of the end of February, private equity positions worth billions have reached a new high this year, a significant increase of nearly 8 percentage points compared to the beginning of the year. Since the beginning of this year, the technology sector has continued to perform well, and the performance of billion dollar private equity has been boosted. Data shows that as of the end of February, the average return of 43 billion dollar private equity firms with performance displays this year was 3.56%, of which 39 achieved positive returns, accounting for 90.7%. Since the beginning of this year, the Hong Kong and A-share technology sectors have emerged from a strong structural market trend, and market sentiment has been clearly ignited. Trading volume continues to be active. In this market environment, the overall performance of billion dollar private equity has been boosted, especially with better excess returns in quantitative strategies, “said a private equity researcher in Shanghai. A subjective strategy 10 billion level private placement personage said that since this year, the company’s funds have performed brilliantly, mainly because of the combination and allocation of a high proportion of the Hong Kong stock Internet sector. In the future, if the Hong Kong stock rises too high, the company will adjust its position moderately, but China’s assets will be the company’s layout direction throughout the year. (Shanghai Stock News)