This morning's headlines:
Yesterday China Unicom 's share price soared, and its joint venture with Tencent has obtained approval from regulatory authorities, thus boosting investor popularity.
The stock closed at RMB 3.75 on Wednesday. gains mainly occurred in the last hour of the transaction. Previous reports from the official media " Securities Times " attracted the attention of investors. The report said that a joint venture transaction between a subsidiary of China Unicom and a subsidiary of Internet giant Tencent was approved.
According to an earlier announcement by the State Administration for Market Regulation, the two companies' joint ventures in the fields of computing and servers have been approved by regulatory authorities. The joint venture will be controlled by subsidiaries of China Unicom and Tencent, which will hold 48% and 42% of the new company's shares , respectively.
1, Macroeconomic policy
**Li Keqiang: We will continue to promote the full implementation of the "package" policy measures for stabilizing the economy and fully demonstrate the effectiveness**
--According to CCTV.com , Li Keqiang spoke at the Council of the Heads of Government (Prime Ministers) of the SCO member states that since this year, China's economic operation has once faced downward pressure beyond expectations. We promptly and decisively introduce packages of policies and continuity measures to stabilize the economy, and strive to ensure that market entities stabilize employment and prices. After hard work, China's economy has shown a trend of stabilization and upward trend. We will continue to promote the full implementation of the "package" policy measures for stabilizing the economy and fully demonstrate the effectiveness, effectively promote the stable, healthy and sustainable development of the economy, keep the economy running within a reasonable range, and strive to achieve better results.
**National Development and Reform Commission: The country will release the seventh batch of central pork reserves this year in the near future**
--According to the National Development and Reform Commission, pig farmers' enthusiasm for slaughtering has increased recently, and pig prices have fallen to a certain extent. From October 24 to 28, the national average pig and grain ratio was 9.66:1, which was still higher than the upper limit of the 9:1 reasonable range determined by the pork reserve adjustment plan (calculated at the current corn price of 2.9 yuan per kilogram, the corresponding reasonable range of live pig prices was 26 yuan per kilogram); the year-on-year increase of pork prices exceeded 40%, and it was still in the first-level warning range for excessive increase. In the near future, the country will release the 7th batch of central pork reserves this year, and urge and guide local governments to increase their efforts to release local government pork reserves to form a joint force for regulation.
**Doctors Association and Real Estate Association held a joint meeting to support private real estate companies in issuing bonds to continue to promote **
--According to Securities Times, on the 1st, the Traders Association and Real Estate Association jointly held a symposium of 21 private real estate companies including Jinhui , New Hope Real Estate, Dexin China, Dahua Group , Renheng Real Estate, Country Garden, etc., to introduce the relevant progress of China Bonds Enhancement Company in supporting private real estate companies in bond issuance and financing, and listen to opinions and suggestions from all parties. This is the third time that a private real estate enterprise symposium has been held since August. It is understood that Longhu , Midea, New City , Country Garden , Xuhui , Excellence Group and other companies are promoting the second round of credit issuance projects, and Jinhui, New Hope , Country Garden, etc. are actively preparing.
**Mergement supplementary loan (PSL) has soared by more than 100 billion for two consecutive months**
--According to the 21st Century report, China Central Bank released data showing that in October, the National Development Bank , China Export-Import Bank , and China Agricultural Development Bank net new mortgage supplementary loans of 154.3 billion yuan, and the balance of mortgage supplementary loans at the end of the period was 2802.4 billion yuan. Since February 2020, PSL has been showing as net repayment. However, in September this year, PSL's net new increase of 108.2 billion yuan, and in October, the scale of net new increase further increased to 154.3 billion yuan. According to historical comparison, the net new increase of more than 100 billion yuan per month is also at a high level.
**New credit in October may now decline seasonally. The credit policy for the fourth quarter will continue to be strong**
--According to Securities Daily, financial data in October is about to be released. Many experts predict that due to seasonal factors and other factors, the scale of new RMB loans and the increase in social financing in October will increase by less than month-on-month.According to data previously released by the central bank , in September, RMB loans increased by 2.47 trillion yuan, and the increase in social financing scale was 3.53 trillion yuan. Analysts believe that continuing to promote loose credit is a major focus of macro-policy in the fourth quarter, and will also lay a solid foundation for the economy to continue to stabilize and upward momentum.
**New housing prices in 100 cities have fallen for four consecutive months, and some hot cities may slowly recover in the fourth quarter*
--According to The Paper, China Index Academy released the "Hundred Cities Price Index Report". In October, the price of newly built residential buildings in 100 cities across the country fell by 0.01% month-on-month, and has fallen for four consecutive months; the price of second-hand residential buildings has fallen for six consecutive months, and the number of cities that fell by 75 months has increased to 75. Data from the China Index Academy shows that in October, the average price of newly built residential buildings in 100 cities across the country was 16,199 yuan/square meter, a month-on-month decrease of 0.01%, a decrease of 0.01 percentage point from September. According to year-on-year data, the average price of newly built residential buildings in 100 cities across the country rose by 0.06% compared with the same period last year, a decrease of 0.09 percentage points from September.
2. Fixed income/foreign exchange
**Tuesday Offshore RMB exchange rate against the US dollar once rebounded to the 7.26 line**
--According to Cailianshe, the offshore RMB (CNH) against the US dollar was 7.3084 yuan at 04:59, Beijing time, up 279 points from the late trading of New York on Monday, and the overall trading in the 7.3567-7.2598 yuan range. Looking back on October, the cumulative decline of the offshore RMB against the US dollar was 2.67%, a significant narrowing from 3.26% in September. The reporter learned from a person close to the State Administration of Foreign Exchange that in October, foreign investment in domestic RMB bonds showed a net purchase of in two-way trading . Experts said that the pullback trend may be the consolidation on the eve of the Fed's interest rate meeting . By the beginning of next year, the RMB exchange rate may have a depreciation operation.
**Longhu Group: It plans to repay HK$3.45 billion in advance part of the syndicated loans due in 2023**
--Longhu Group announcement. The company issued an irrevocable notice to the syndicated loan agency bank for early repayment of HK$3.45 billion in part of the syndicated loan due in 2023. The company will immediately fulfill the repayment after the majority of participating lenders agree.
** Tongwei Co., Ltd. : The controlling shareholder reduced his holdings of 12 million convertible bonds**
--Tongwei Co., Ltd. Announcement that the controlling shareholder Tongwei Group reduced his holdings of "Tongwei Convertible Bonds" by 12 million from September 20 to November 1, accounting for 10% of the total issuance of "Tongwei Convertible Bonds". After the completion of this share reduction, Tongwei Group held 40.6077 million "Tong22 Convertible Bonds", accounting for 33.84% of the total issuance of "Tong22 Convertible Bonds".
3, Commodity /Stock Market
**Prosus: The news about CITIC group acquisition of Tencent shares is untrue, and they still have confidence in Tencent's long-term prospects**
--Tencent's largest shareholder and South African Naspers Group Dutch Prosus issued a statement on Tuesday saying that the media company's "Asian Technology" article said that CITIC is in the group to negotiate with Naspers to acquire all the Tencent shares it holds. The article is speculative and does not conform to the facts. Naspers Group will continue to implement the open stock repurchase program announced in June this year, which is funded by the regular and orderly sale of a small amount of Tencent shares held by the group. Reiterate that I still have confidence in Tencent’s long-term prospects. According to Pengpai, a relevant person from CITIC Group said: "The rumors are untrue and there are no relevant plans.
**Hong Kong Stock Exchange optimizes the spot market transaction fee structure to improve market efficiency**
--The Hong Kong Stock Exchange announced on Tuesday that it would optimize the current spot market transaction fee structure, including canceling the trading system usage fee of RMB 0.50 per transaction; adjusting the adjudication fee for all transactions from the current 0.005% to 0.00 565%. The new transaction fee structure will take effect on January 1, 2023.
**CanSino inhaled COVID-19 vaccine has been launched in 13 cities in Jiangsu Province**
--According to CanSino Biologics , after Shanghai started inhaled COVID-19 vaccination, 13 cities in Jiangsu Province have also launched the deployment of inhaled COVID-19 vaccine.Among them, Wuxi , Huai'an and Yangzhou were the first to open the appointment and vaccination of the recombinant novel coronavirus vaccine (type 5 adenovirus vector) for CanSino Biosus Inhalation.
** New energy vehicle 10 sales competition! Aian completes the annual target ahead of schedule but "Wei Xiaoli" lag behind? **
--According to Securities Times, at the beginning of each month, new energy vehicle companies released their report cards and conducted sales competitions. In October, GAC's Aion temporarily ranked first with monthly sales of more than 30,000 vehicles, exceeding the annual target of 200,000 vehicles two months ahead of schedule; Nezha and Wenjie ranked second and third, and Wenjie, which has its own Huawei halo, achieved a delivery volume of over 10,000 for three consecutive months; the data of "Wei Xiaoli", the three most popular new forces, is slightly behind, but the Weilai and Ideal delivery volume is still over 10,000, while the Xiaopeng Motors has only 5,101 vehicles.
4. The company and industry
**The Ministry of Industry and Information Technology and other departments issued the "Action Plan for the Integration of Virtual Reality and Industry Applications (2022-2026)"**
--The plan proposes that by 2026, the overall scale of China's virtual reality industry (including related hardware, software, applications, etc.) will exceed 350 billion yuan, and the sales of virtual reality terminals will exceed 25 million units. Cultivate 100 backbone enterprises with strong innovation capabilities and industry influence, create 10 cluster areas with regional influence and leading the development of the virtual reality ecosystem, and build 10 industrial public service platforms. By 2026, key technologies for immersive audio-visual technologies will be made in 3D and virtual and real integration, and the industrial ecology will be further improved. Virtual reality will be widely used in important economic and social industries, forming several key enterprises and industrial clusters with strong international competitiveness.
**Multiple e-cigarette brands have raised their suggested retail prices from today: starting from 30%, the terminal price is to be determined**
--According to the Paper, e-cigarettes have been included in the consumption tax collection scope and officially implemented. In the early morning of November 1, many e-cigarette retailers were waiting in front of the national unified e-cigarette transaction management platform to update the tax-inclusive wholesale prices and suggested retail prices of e-cigarette national standard products. After the price update, the information shows that cigarettes and cartridges of brands such as Rex, Yuzu, Magic Dim, Ono, Kemi, and Firearm have all increased to varying degrees. Taking Reek, which has a wide audience, as an example, the wholesale price of its four cigarettes ranged from 32.83% to 95.3%, and the suggested retail price increased from 33.52% to 97.49%. The four cigarette cartridges also rose to varying degrees. The wholesale price and suggested retail price of the cigarette cartridge with the largest increase both rose by about 82%.
**From November 1, the seventh batch of national centralized drug procurement will be implemented in Henan**
--According to CCTV News, starting from November 1, Henan will begin to implement the seventh batch of national centralized volume-based drug procurement prices. There are 60 types of drugs in the seventh batch of centralized volume procurement in the country, covering multiple treatment areas, including not only the drugs for common and chronic diseases such as hypertension, diabetes, anti-infection and other common and chronic diseases, but also the drugs for major diseases such as lung cancer, liver cancer, kidney cancer, kidney cancer, and intestinal cancer. The average price of selected drugs is reduced by 48%. Taking the first-line targeted drug for treating liver cancer as an example, the average price per pill after centralized procurement dropped from 108 yuan to 8.53 yuan, a decrease of 92%.
** Institution: In October, the number of international flights of domestic airlines reached a new high this year, an increase of about 22% month-on-month**
--According to the statistics of Feichangzhun, in October, the actual passenger flights of domestic airlines (including Hong Kong, Macao and Taiwan) reached the highest value this year, with 4,495 flights, an increase of 21.91% month-on-month in September; the average daily international passenger flights were 145 flights; the average international air ticket payment price was 4,022 yuan, a decrease of 24.94% month-on-month in September. At the same time, domestic flights showed a trend of both volume and price decline in October. The actual passenger flights of domestic routes reached 147,200, a year-on-year decrease of 56% and a month-on-month decrease of 19.74%; the average daily passenger flights were 4,749; the average payment price of domestic routes was 822 yuan, a month-on-month decrease of 6.82%.
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