I. Market News 1. Hong Kong Census and Statistics Department: The provisional number of Hong Kong's population at mid-year was 7.5318 million people. According to data released by the Hong Kong Census and Statistics Department, the provisional number of Hong Kong's population at mid-year in 2024 was 7.5318 million people, up 0.1% from the end of 2023, but down 0.1% from mid-2023. Between mid-2023 and mid-2024, there was a natural decrease of 18,100 people (i.e., more deaths than births), with 34,400 births and 52,400 deaths. During the same period, there were 13,800 net inbound Hong Kong residents (i.e., more people moving in than out), including 44,000 one-way permit holders and 30,200 other Hong Kong residents who moved out. Among the total population in mid-2024, 7.2874 million were permanent residents and 0.2444 million were non-permanent residents. The revised population figure at the end of 2023 was 7.5279 million, with 7.2464 million permanent residents and 0.2815 million non-permanent residents. The population growth rate from the end of 2022 to the end of 2023 was also revised to +0.7%. 2. Hong Kong Tourism Board: The cumulative number of visitors to Hong Kong in the first seven months was about 25 million, an increase of 52% year-on-year. According to statistics, the preliminary number of visitors to Hong Kong in early July was 3.92 million, an increase of about 10% compared to the same period last year, of which about half were overnight visitors. The cumulative number of visitors to Hong Kong from January to July this year was about 25 million, a year-on-year increase of 52%. Among them, 19.3 million were Mainland visitors and 5.8 million were non-Mainland visitors, an increase of 47% and 71% respectively from the previous year. 3. Hong Kong Exchanges and Clearing Limited (00388) hopes to include Real Estate Investment Trust (REITs) in the Shanghai-Hong Kong Stock Connect as soon as possible. Li Wentao, Vice President of the Global Listing Services Department of Hong Kong Exchanges and Clearing, said at the Boao Real Estate Forum that the Group hopes to include REITs in the Shanghai-Hong Kong Stock Connect as soon as possible. He continued that the inclusion of REITs in the Shanghai-Hong Kong Stock Connect is an issue of great concern, and that it is also an announcement made after the China Securities Regulatory Commission (CSRC) repeatedly mentioned in public last year that it was studying the inclusion of REITs in the scope of the Shanghai-Hong Kong Stock Connect. Hong Kong Exchanges and Clearing also hopes that this can be implemented as soon as possible. II. Corporate News 1. Alibaba Group Holding Limited (09988) released its first quarter results for the three months ended June 30, 2024. According to the financial report, the net profit attributable to ordinary shareholders for the period was RMB 24.269 billion ($3.34 billion), a decrease of 29% year-on-year; net profit was RMB 24.022 billion, a decrease of 27% year-on-year; diluted earnings per share was RMB 1.24. The group's revenue for the period was RMB 243.236 billion, a year-on-year increase of 4%. 2. Alibaba Group's Chief Financial Officer, Xu Hong, said at an earnings briefing that most of the group's businesses, except for its core e-commerce business, will achieve profitability within 1-2 years and gradually begin to contribute to scalable profitability. He said that Alibaba is seeking to transfer its primary listing to Hong Kong. The Group will hold a shareholders meeting on August 22 and make proposals at the meeting. If approved, the primary listing in Hong Kong is expected to be completed by the end of August 2024. As for whether to access the Hong Kong-Shanghai Stock Connect afterwards, it will be necessary to fulfill some procedures under the different rules of each exchange before proceeding, and he expects that it will ultimately be achieved. 3. JD.com, Inc. (09618) released its second quarter results for 2024. According to the financial report, the net profit attributable to ordinary shareholders for the second quarter was RMB 12.644 billion ($1.7 billion), a year-on-year increase of 90.9%; basic earnings per share were RMB 4.2 yuan. The total revenue for the second quarter was RMB 291.397 billion, a year-on-year increase of 1.2%. Among them, revenue from products was RMB 233.908 billion, compared to RMB 233.855 billion in the same period last year. Service revenue was RMB 57.489 billion, compared to RMB 54.076 billion in the same period last year, a year-on-year increase of 6.31%. 4. Kingdee International Software Group Company Limited (00268) announced its interim results for the six months ended June 30, 2024. According to the financial report, the loss attributable to owners of the Company for the period was approximately RMB 0.218 billion, a decrease of approximately 23.2% compared to the same period last year. Basic loss per share was approximately RMB 6.12. No interim dividend will be paid. Revenue for the period was RMB 2.87 billion, a year-on-year increase of approximately 11.9%. Among them, revenue from cloud service business increased by 17.2% year-on-year to RMB 2.39 billion, accounting for approximately 83.2% of the Group's revenue. 5. China United Network Communications Limited (00762) announced its interim results. For the period, the net profit attributable to equity holders of the Company was RMB 13.793 billion, up 11.31% year-on-year. Basic earnings per share were RMB 0.45. An interim dividend of RMB 0.2481 per share will be paid, up 22.2% year-on-year. For the period, revenue was RMB 197.341 billion, a year-on-year increase of 2.87%. EBITDA was RMB 55 billion, up 2.7% year-on-year. 6. CK Asset Holdings Limited (01113) announced its interim results for the six months ended June 30, recording a attributable surplus of HKD 8.603 billion for shareholders, down 16.73% year-on-year, with a basic earnings per share of HKD 2.44. An interim dividend of HKD 0.39 per share will be paid. Group revenue for the period was HKD 22.008 billion, down 10.55% year-on-year.
1. Huang Tianyou appointed as the Chairman of the Securities and Futures Commission of Hong Kong.
On October 14, the Hong Kong Special Administrative Region Government announced that the Chief Executive of the Hong Kong Special Administrative Region appointed Dr. Huang Tianyou as the Chairman of the Securities and Futures Commission (SFC) of Hong Kong for a term of three years, from October 20, 2024 to October 19, 2027.
2. Shanghai-Hong Kong Cooperation and Development Seminar Held.
On October 14, 2024, the Shanghai-Hong Kong Cooperation and Development Seminar was held in Shanghai. Experts and scholars from Shanghai and Hong Kong focused on in-depth discussions and exchanges on promoting cooperation between Shanghai and Hong Kong to facilitate 'bringing in' and 'going global'.
At the meeting, Shanghai Maritime University, Hong Kong Shipowners Association, and Equator Fund Limited signed a strategic cooperation memorandum; Hong Kong Financial Development Bureau and Shanghai Financial Stability Development Research Center also signed a cooperation memorandum.
3. Hong Kong Monetary Authority: Renaming 'Virtual Banks' to 'Digital Banks' to be Implemented Soon.
On October 14, the Hong Kong Monetary Authority released a summary of public consultation on the proposed renaming of 'Virtual Banks' as 'Digital Banks' (hereinafter referred to as the Summary) stating that the Hong Kong Monetary Authority will revise the 'Guideline on Recognition of Virtual Banks' to promptly implement the new name 'Digital Banks'.
The summary document indicates that during a one-month consultation period, the Hong Kong Monetary Authority received a total of 26 submissions from the industry or professional organizations, virtual banks, and citizens. Respondents widely supported the Hong Kong Monetary Authority's proposal to rename 'virtual banks,' with the majority supporting 'Digital Bank' as the new name.
In Shenzhen, through the city's guided fund investment, leveraging social capital model to establish 38 integrated circuit-related funds, with a total size exceeding 100 billion yuan.
According to an announcement from Shenzhen, on October 14, the Shenzhen Municipal Government Information Office held a press conference to introduce the '2024 Bay Area Semiconductor Industry Ecological Expo' related information.
Zhu Yun, Deputy Director of the Shenzhen Development and Reform Commission, introduced that behind the industrial take-off, Shenzhen is making extraordinary efforts across the city to promote high-quality industrial development with unconventional measures. By investing through the city's guided fund and leveraging social capital to establish 38 integrated circuit-related funds, with a total scale exceeding 100 billion yuan, Shenzhen is accelerating the establishment of a billion-level Shenzhen Semiconductor and Integrated Circuit Industry Investment Fund, and promoting a group of integrated circuit projects to be approved for local government special bonds in 2024.
In Guangdong, it aims to achieve a commercial aerospace and related industry scale of 300 billion yuan by 2026.
On October 14, the General Office of the People's Government of Guangdong Province issued the 'Guangdong Province Action Plan for Promoting the High-Quality Development of Commercial Aerospace (2024-2028)' (referred to as the 'Action Plan'), which includes 20 major tasks and 3 security measures, aiming to seize the strategic opportunities for commercial aerospace development, accelerate the high-quality development of Guangdong's commercial aerospace.
The 'Action Plan' points out that commercial aerospace is an important force to promote the development of the aerospace industry and build a strong aerospace country, and an important part of the new productive forces. By 2026, Guangdong Province strives to achieve a commercial aerospace and related industry scale of 300 billion yuan, significantly enhancing the industry's development capabilities. Mastering a batch of key core technologies such as large thrust reusable launch rockets, cultivating a group of high-tech commercial aerospace enterprises, specialized, special and new 'small giant' enterprises, provincial specialized, special and new enterprises, introducing and cultivating over 10 key commercial aerospace enterprises, constructing more than 5 commercial aerospace characteristic industry agglomeration areas, forming a group of typical application scenario solutions, accelerating the generation of new modes and formats of commercial aerospace.
1. Alibaba: Alibaba Group Holding Limited released its first quarter results for the three months ended June 30, 2024. According to the financial report, the net profit attributable to ordinary shareholders for the period was RMB 24.269 billion ($3.34 billion), a decrease of 29% year-on-year; net profit was RMB 24.022 billion, a decrease of 27% year-on-year; diluted earnings per share was RMB 1.24. The group's revenue for the period was RMB 243.236 billion, a year-on-year increase of 4%. 2. Alibaba: Alibaba Group's Chief Financial Officer, Xu Hong, said at an earnings briefing that most of the group's businesses, except for its core e-commerce business, will achieve profitability within 1-2 years and gradually begin to contribute to scalable profitability. He said that Alibaba is seeking to transfer its primary listing to Hong Kong. The Group will hold a shareholders meeting on August 22 and make proposals at the meeting. If approved, the primary listing in Hong Kong is expected to be completed by the end of August 2024. As for whether to access the Hong Kong-Shanghai Stock Connect afterwards, it will be necessary to fulfill some procedures under the different rules of each exchange before proceeding, and he expects that it will ultimately be achieved. 3. JD.com, Inc.: JD.com, Inc. released its second quarter results for 2024. According to the financial report, the net profit attributable to ordinary shareholders for the second quarter was RMB 12.644 billion ($1.7 billion), a year-on-year increase of 90.9%; basic earnings per share were RMB 4.2 yuan. The total revenue for the second quarter was RMB 291.397 billion, a year-on-year increase of 1.2%. Among them, revenue from products was RMB 233.908 billion, compared to RMB 233.855 billion in the same period last year. Service revenue was RMB 57.489 billion, compared to RMB 54.076 billion in the same period last year, a year-on-year increase of 6.31%.
The Hang Seng service company stated that Alibaba (09988) has been included in the Hong Kong Stock Connect and meets the rapid inclusion rule requirements for relevant indices. Alibaba will be included in the following indices after the close of trading on October 25, 2024 (Friday), and will take effect from October 28, 2024 (Monday). The indices include Hang Seng Stock Connect Index, Hang Seng China (HK listed) 25 Index, Hang Seng Stock Connect Artificial Intelligence Theme Index, Hang Seng Stock Connect China Technology Index, and Hang Seng Stock Connect New Economy Index.
Shandong Gold (01787) announced a joyous profit forecast, expecting a net income attributable to the owners of the company in the first to third quarters of 2024 to be between 1.85 billion and 2.25 billion yuan, an increase of 37.52% to 67.26% year-on-year. During the first to third quarters of 2024, the company strengthened its strategic leadership role, emphasized strengthening production organization, continuously optimized production layout, enhanced technical management and technological innovation, improved production and resource utilization rates; continuously deepened cost reduction and efficiency enhancement, by means of technological innovation, process optimization, asset activation, centralized procurement, policy effectiveness, etc., improving fine management level, enhancing operational efficiency, stabilizing production costs; meanwhile, the continued upward trend in gold prices in the first to third quarters of 2024 and the acquisition of Shandong Jin International (formerly "Yintai Gold") also drove the company's profits.
China Resources Building Materials Technology (01313) issued a profit warning, expecting that the profit attributable to owners of the company for the nine months ended September 30, 2024, will decrease by approximately 47% to 57% compared to the same period last year. The main reason is the decrease in the selling prices of the group's cement products and concrete compared to the same period last year, leading to a decrease in comprehensive gross profit and comprehensive gross margin.
Zhongan Online (06060) announced that the total amount of original insurance premium income obtained from January 1 to September 30, 2024, was approximately 25.496 billion yuan.
Longfor Group (00960) announced that as of September 2024, the group has cumulatively achieved a total contract sales amount of 73.3 billion yuan. Contract sales area is 5.232 million square meters, with total contract sales amount of 8.16 billion yuan in September alone, and a contract sales area of 0.487 million square meters. In September alone, the total contract sales amount attributable to the company's shareholders' equity was 5.14 billion yuan, with a contract sales area of 0.347 million square meters.
China Resources Land (01109) announced that in September 2024, the company and its subsidiaries achieved a total contract sales amount of approximately 16.9 billion yuan. The total contract sales construction area is about 0.873 million square meters, decreasing by 36.5% and 16.7% year-on-year, respectively. Cumulatively until September 2024, the total contract sales amount is about 172.3 billion yuan, and the total contract sales construction area is about 7.548 million square meters, decreasing by 26.5% and 23.9% year-on-year, respectively. In September 2024, the group's recurring business revenue was about 3.81 billion yuan, an increase of 3.3% year-on-year. Among these, rental income from operational real estate business was about 2.43 billion yuan, an increase of 7.1% year-on-year. Cumulatively until September 2024, recurring business revenue was about 34.49 billion yuan, an increase of 12.6% year-on-year, with operational real estate business rental income of about 21.47 billion yuan, an increase of 14.8% year-on-year.
Datang Renewable Energy (01798) completed power generation of 2.3712 million megawatt hours in September 2024 based on consolidated financial statements, an increase of 24.51% year-on-year compared to 2023. Among these, wind power generation was 2.0963 million megawatt hours, an increase of 23.69% year-on-year; photovoltaic power generation was 0.2749 million megawatt hours, an increase of 31.12% year-on-year. Cumulatively for the first 9 months, total power generation was 23.1828 million megawatt hours, an increase of 1.55% year-on-year. In this period, wind power generation was 20.3352 million megawatt hours, a decrease of 3.11% year-on-year; photovoltaic power generation was 2.8476 million megawatt hours, an increase of 54.67% year-on-year.
