[Jinri Toutiao]

Us inflation rises againEuropean and American markets bet on the Federal Reserve to raise interest rates in a hurry

In May, US CPI recorded a high of 8.6 per cent year-on-year, the highest level in nearly 40 years. The year-on-year growth rate of core CPI fell slightly under the influence of the base, but still higher than expected. Geopolitical conflicts push up energy prices and the rebound in durable goods prices is the main reason.

It is difficult to be optimistic about the short-term inflation situation in the United States in the future. under the current situation that supply-side cost shocks push up inflation and demand-side durable goods prices continue to expand, the necessity and feasibility of large and intensive interest rate increases by the Federal Reserve are on the rise. institutions generally expect the Federal Reserve to continue to raise interest rates by at least 50BP in June and July, and do not rule out the possibility of raising interest rates by 75BP. 10Y Treasury yields are still under upward pressure before the interest rate hikes hit the ground in June.

The people's Bank of China announced that RMB loans nearly tripled from the previous month in May, and the increase in social finance rebounded significantly.

On June 10, the people's Bank of China released financial data and social financing statistics for May. Data show that in May, the growth rate of RMB loans and the increase in the scale of social finance rebounded significantly. Data show that RMB loans increased by 1.89 trillion yuan in May, up from 645.4 billion yuan in April and an increase of 392 billion yuan over the same period last year, while the scale of social financing increased by 2.79 trillion yuan, 839.9 billion yuan more than the same period last year. On the other hand, broad money (M2) grew 11.1% at the end of May compared with the same period last year, the highest growth rate so far this year.

[general trend]

Us stocks on FridayA sharp fallThe Nasdaq fell by more than 3%.Airport stocks are not easy at this stage.

The three major indexes of US stocks closed down over the weekend, with the Dow down 2.73 per cent at 31392.79, the S & P 3900.86 down 2.91 per cent and the Nasdaq down 3.52 per cent at 11340.02. Last week, the Dow fell 4.58%, the s & p 500 fell 5.05%, and the Nasdaq fell 5.6%. All three major U. S. stock indexes posted their biggest weekly losses since the week ended Jan. 21. The US CPI surpassed expectations and Wall Street began to discuss whether the Fed would raise interest rates by 75 basis points. The ADR index of Hong Kong stocks fell to close at 21386 on a pro rata basis, down 419.80 points or 1.96 per cent from the close in Hong Kong.

CICC strategy said that considering that liquidity relaxation is still increasing, the overall market repair space is not significant, and there may be some inertia for market sentiment to improve, it is believed that the short-term A-share market may still be expected to repair in volatility, but throughout the second half of the year, under the influence of internal and external uncertainties, the market path may not be unilateral upward. Structurally, it is suggested to give priority to "stability" in the second half of the year. Zhitong Financial APP believes that the trend of the Hang Seng Technology Index has a direct impact on the overall trend of Hong Kong stocks. After the early depth adjustment, the downward space is not too large, in the context of A-share stabilization, airport stocks can not be easily at this stage.

[hot spot Prospect]

Tesla, Inc. (TSLA.US) to participate in Tianqi Lithium Industry (002466.SZ) Hong Kong stock IPO subscription? Officials say "I don't know."

A few days ago, Tianqi Lithium Industry announced that it would issue no more than 425 million overseas listed foreign capital shares with a par value of 1 yuan each, all of which are common shares. There are market rumors that Tesla, Inc. will also participate in Tianqi lithium industry Hong Kong stock IPO subscription. In this regard, the media asked Tesla, Inc. for confirmation, the other side only said that "it is not clear, there is no response for the time being."

This weekend, Chinese Ambassador to Australia Xiao Qian visited Tianqi Lithium Industry Quinana Lithium hydroxide processing Plant project in Perth. Ambassador Xiao listened carefully to Liu Ying, president of Tianqi Lithium Australia Energy Company, to introduce the development process and operation status of the project, and encouraged enterprises to continue to promote the project in a down-to-earth manner, do a good job in epidemic prevention and control, attach importance to production safety, establish a good corporate image, and contribute to deepening China-Australia economic and trade cooperation and bilateral relations. The Chinese Embassy and Consulate in Australia supports Chinese enterprises in "going global" and is willing to provide necessary assistance to Chinese-funded enterprises in Australia. Tianqi Lithium West Australia Quinana Plant was built in 2016 and put into operation in 2021. It is a world-leading battery-grade lithium hydroxide monohydrate plant.

Market news: Tencent (00700) acquires a $264 million stake in Indian e-commerce company Flipkart

Tencent bought $264 million worth of shares in Flipkart through its European subsidiary, according to Economictimes. Flipkart, a Singapore-based e-commerce company, operates only in India, according to Zitong Financial APP.

Flipkart was recently valued at $37.6 billion, according to data disclosed in July 2021, when it raised $3.6 billion in a round led by Singapore's sovereign wealth funds GIC, CPP Investments, Softbank Corp. Vision Fund and Walmart Inc.

In April 2022, people familiar with the matter said today that Flipkart plans to list in the US in 2023, while Flipkart has raised the valuation of IPO (initial public offering) by about 1% to $60 billion-$70 billion.

Flipkart, founded in 2007 by Sachin Bansal and Binny Bansal, two former employees of Amazon.Com Inc, is India's largest e-commerce retailer.

The General Office of the State Council issued the implementation plan for aging, renewal and renovation of urban gas pipelines.

The implementation Plan deploys key tasks from four aspects. The first is to define the task. Clearly define the scope of renovation objects, reasonably determine the renewal and renovation standards, organize and carry out a general survey of urban gas pipelines and facilities, and work out aging renewal and renovation plans for local urban gas pipelines. The second is to speed up organization and implementation. Strengthen overall planning and coordination, speed up the implementation of projects, synchronously promote the construction of digitization, networking and intelligence, and strengthen the operation and maintenance of pipelines and facilities. The third is to increase policy support. We will implement the capital contribution responsibility of professional business units, establish a reasonable mechanism for sharing funds, increase financial support and financing guarantee, and implement the policy of reducing taxes and fees. The fourth is to improve supporting measures. Speed up project examination and approval, earnestly do a good job in price management, strengthen the support of technical standards, strengthen market governance and supervision, promote the rule of law and standardized management, and strengthen organizational guarantee.

Guotai Junan believes that the current valuation of the city gas company has fully reflected the impact of upstream price increases and high LNG prices on the city gas company's gross margin, and the natural gas industry still has room for sustainable growth under the dual-carbon background. Related Hong Kong stocks include: China Gas (00384), China Resources Gas (01193), ENN Energy (02688), Tianlun Gas (01600), Kunlun Energy (00135) and so on.

E-cigarette: high growth in overseas market and imminent approval of domestic license

On June 15, 2022, the national unified e-cigarette transaction management platform will be officially put into operation. At that time, all kinds of e-cigarette market entities such as nicotine production enterprises for e-cigarettes, atomization production enterprises, e-cigarette production enterprises, e-cigarette wholesale enterprises, e-cigarette retail operators and other e-cigarette market entities that have obtained tobacco monopoly licenses in accordance with the law should gradually go to the platform for trading and settlement.

According to statistics, China's e-cigarette export reached 138.3 billion yuan in 2021, a year-on-year growth rate of 180% under the negative impact of the global epidemic. China's domestic retail sales are estimated to be 19.7 billion yuan, an increase of 36% over the same period last year. Among them, the first export category is disposable e-cigarette products, accounting for 65%, followed by open and closed products.

As of May 27, the official website of the State Tobacco Monopoly Administration shows that 14 e-cigarette enterprises have applied for tobacco monopoly production licenses, all of which have been accepted, according to the Blue Cave New consumption report. Tianfeng Securities believes that the domestic market is expected to usher in the landing and issuance of several production licenses one after another in June-August.

Related Hong Kong stocks include: China Bolton (03318), Huabao International (00336), Smoore International Holdings Limited (06969), BYD Electronic (00285) and so on.

[individual stocks are sunny]

Lijin Technology (00558)Direct beneficiaries of Tesla, Inc. 's expansion of production

According to Tesla, Inc. 's internal production memo, Tesla, Inc. plans to produce more than 71000 cars at the Shanghai super factory in June. According to the Federation of passengers, Tesla, Inc. 's Shanghai factory produced a total of 44300 cars in April and May this year. Together with the expected production in June, Tesla, Inc. 's Shanghai factory produced about 115300 vehicles in the second quarter. Data show that Tesla, Inc. 's Shanghai factory produced a total of 178900 cars in the first quarter of this year. Huaxi Securities said that the rapid expansion of Tesla, Inc. 's Shanghai plant capacity is expected to drive the performance growth curve of industrial chain companies to become steeper.

Tianfeng Securities recently said that the market space of integrated die casting is expected to increase rapidly from 2023, and the domestic market space of integrated die casting is expected to reach 27.2 billion by 2025.

The die casting machine Giga Press used by Tesla, Inc. is produced by Lijin Technology and covers an area of only about 100m2. Compared with the traditional stamping and welding process, the production equipment can save 35% of the floor space. According to media reports, IDRA Group will soon launch a 9000-ton high-pressure Giga Press die-casting machine. Musk, chief executive of Tesla, Inc., confirmed that production of the Tesla Cybertruck would begin in 2023 with this machine. It is reported that in 2008, IDRA Group was acquired by Lijin Group and officially became a member of Lijin Group.

Xiexin Technology (03800): Silicon prices continue to rise

The new round of price increases that have begun so far this year have lasted longer than previously optimistic expectations. According to the silicon industry branch news last week, the domestic single crystal re-feeding price range of up to 270000 yuan / ton, the price continued to rise. According to PV Infolink data, overseas silicon prices continue to exist premium, and even higher than 280000 yuan / ton price is not uncommon.

The media learned from industry insiders that considering the exuberant situation on the demand side, silicon prices are likely to get out of a new high in the near future. In the third quarter, new production capacity such as Xiexin, Xinte and Tongwei is expected to be released, when silicon prices may ease to some extent, but the actual decline during the year is limited. Under the favorable policies and overseas exports, the photovoltaic industry chain is cautiously improving.

Industry analysts believe that photovoltaic is supported by the demand side is more significant. The latest data from the National Energy Administration show that as of the end of May, photovoltaic power generation project 121GW is under construction. It is expected that new grid-connected 108GW will be added for photovoltaic power generation for the whole year, and the actual grid-connected capacity will increase by 95.9% over the same period last year.