Focused on hot topics.

1. The People's Bank of China released the "China Financial Stability Report (2024)". The report pointed out the need to implement a moderately loose monetary policy, comprehensively use various monetary policy tools, and maintain ample liquidity to ensure the growth of social financing scales and money supply matches the economic growth and inflation expectation targets.

2. Since the beginning of this year, there have been significant policy adjustments, but how much room is left for future changes? Pan Gongsheng, the Governor of the People's Bank of China, stated that "after the implementation of the reserve requirement ratio reduction policy, the average deposit reserve ratio for banks is approximately 6.6%, which still has room compared to the central banks of major economies internationally." Regarding considerations for the next policy step, Pan Gongsheng said, "Strengthen the intensity of monetary policy regulation, improve the precision of monetary policy control, effectively implement existing policies, and intensify efforts to ensure that new policies are effectively put into operation."

3. Data from the State Administration of Foreign Exchange shows that in the first three quarters, various foreign investments in China have maintained stable growth, with the net increase in financial account assets amounting to 314.9 billion USD. Various investments into China are showing a net inflow, including a net inflow of 93.1 billion USD in securities investment over four consecutive quarters, with more foreign capital allocated to RMB assets.

4. On the 29th, Paul Chan Mo-po, the Financial Secretary of the Hong Kong Special Administrative Region Government, summarized the economic situation of Hong Kong in 2024 and looked forward to the economic development in 2025. The overall economic growth in Hong Kong is expected to be 2.5% for 2024. In the next year, Hong Kong will better capitalize on its unique advantages of internationalization, strengthen "internal connection and external communication," and further enhance the roles and functions of "super contacts" and "super value creators." It will work with other cities in the South China Greater Bay Area Concept and other mainland provinces and municipalities to venture out together and explore business opportunities, maximizing synergy.

5. According to a startup statistics survey released on the 28th by the Hong Kong SAR Government’s Information Services Department, the number of startups in Hong Kong reached 4,694 in 2024, an increase of 10% from last year, and about 40% higher than in 2020. The number of startups and employees has reached new highs.

6. Recently, the Hong Kong Stock Exchange published a review of 2024 on its official website. Unlike the "extremely busy and fulfilling" summaries of the previous three years, this year's review from the Hong Kong Stock Exchange reveals more warmth. This year, the Hong Kong Stock Exchange continuously responded to market demands, introduced new measures in listing system reforms, market ecology purification, and Fintech application, further enhancing connections and interactions with international markets. The IPOs on the Hong Kong stock market have accelerated, the stock market has gained momentum, and multiple records have been broken, fully showcasing the vitality and resilience brought about by reforms.

Global market.

Last Friday, the three major U.S. stock indexes collectively declined, with the Dow ending its five-day rising streak, while the S&P and Nasdaq fell for two consecutive days.

At the close, the Dow Jones Industrial Average fell by 0.77%, the S&P 500 Index fell by 1.11%, and the Nasdaq Composite Index fell by 1.49%. Large technology stocks collectively declined, with NVIDIA down by 2.09%, Microsoft down by 1.73%, Amazon down by 1.45%, and Tesla down by 4.95%.

Most China Concept Stocks fell, with the Nasdaq Golden Dragon China Index declining by 1.54%. ZEEKR fell by 9.60%, Xpeng Motors fell by 4.75%, NIO fell by 4.48%, and JD.com fell by 3.18%.

In the Hong Kong stock market, the three major indexes performed mixed last Friday. At the close, the Hang Seng Index fell by 0.04%, the Technology Index rose by 0.69%, and the Hang Seng China Enterprises Index rose by 0.02%. In terms of market performance, Semiconductors, Consumer Electronics, and Autos led the gains.

Company news

Guolian Securities (01456.HK): The company received approval from the China Securities Regulatory Commission on December 27, 2024, regarding "the consent for Guolian Securities Co., Ltd. to issue shares to purchase assets and raise matching funds and to register and approve the change of the main shareholder of Guolian Securities Co., Ltd. and Minsheng Securities Co., Ltd., and the change of actual controller of Minsheng Fund Management Co., Ltd. and Minsheng Futures Co., Ltd."

Kangnait Optics (02276.HK): The company is placing new H shares with Hong Kong Goertek Co., Ltd. (the underwriter). The company has been notified by the underwriter that following the placement announcement, it has negotiated with several existing shareholders (excluding the company's controlling shareholder) to acquire certain existing shares. As of the date of this announcement, the underwriter conditionally agreed to purchase up to 42.8 million shares from existing shareholders.

Shanghai Electric Group (02727.HK): Shareholder Shanghai Guotou Company plans to participate in the securities investment fund share exchange program. As of the date of this announcement, Shanghai State-owned Capital Investment Co., Ltd. (Shanghai Guotou Company) holds 0.785 billion shares of the company's A-shares, accounting for 5.040489% of the total share capital of the company. The above shares were obtained through a non-compensatory transfer and are all freely tradable shares.

CH ENERGY ENG (03996.HK): A subsidiary has successfully bid for the national energy investment project for the coal-fired power generation project EPC total contracting project in Jieyang, with a bid amount of approximately RMB 5.887 billion.

YADEA (01585.HK): The expected annual net income is approximately RMB 1.2 billion to -1.4 billion, compared to 2.64 billion in the same period last year.