1. China stated that the tariff imposed on the USA would be adjusted from 34% to 10%. 2. Five departments are holding discussions with food delivery platform companies. 3. The Shenzhen Semiconductor and Integrated Circuits Industry Investment Fund has been established, with a scale of 5 billion yuan. 4. Trump is preparing to tear up Biden's export red line, and the UAE is expected to be allowed to purchase one million NVIDIA chips.
Focus on hotspots.
1. The State Council Tariff Commission published a notice regarding the adjustment of the tariff measures imposed on imported goods originating from the USA.
According to the notice, the tariff rate will be adjusted from 34% to 10%, and the implementation of the 24% tariff rate on the USA will be suspended for 90 days. At the same time, the tariff measures specified in announcements No. 5 and No. 6 of 2025 by the Tax Commission will be stopped. These adjustments are concrete actions to implement the consensus reached in the high-level economic and trade talks between China and the USA.
2. Recently, the State Administration for Market Regulation held discussions with the Ministry of Civil Affairs, the Central Internet Information Office, the Ministry of Human Resources and Social Security, and the Ministry of Commerce regarding prominent issues in the current competition within the food delivery industry, discussing with platform companies such as JD.com, Meituan, and Ele.me. Relevant platform companies are required to strictly comply with the "E-Commerce Law of the People's Republic of China", "Anti-Unfair Competition Law of the People's Republic of China", and "Food Safety Law of the People's Republic of China", strictly implement their main responsibilities, proactively fulfill social responsibilities, strengthen internal management, conduct legal and standardized operations, ensure fair and orderly competition, jointly create a good market environment, effectively protect the legitimate rights and interests of consumers, operators within the platform, and delivery riders, and promote the standardized, healthy, and orderly development of the platform economy.
3. Business information shows that the Shenzhen Semiconductor and Integrated Circuits Industry Investment Fund "Saimi Industry Private Equity Fund" has recently completed its business registration. The total scale of the fund is 5 billion yuan, with major investors including the Shenzhen Guiding Fund and Longgang District Guiding Fund; ShenChuang Investment and ShenZhong Investment jointly serve as the general partners of the fund. It is reported that the fund will mainly invest in key projects and leading companies in the semiconductor and integrated circuits sectors in Shenzhen, as well as other projects that have significant impacts on improving the semiconductor industry chain in Shenzhen.
4. According to media reports, informed sources reveal that the Trump administration is considering reaching an agreement that would allow the UAE to import over 1 million advanced NVIDIA chips, a quantity that far exceeds the restrictions set by the Biden administration on AI chip exports.
Global Markets
In the US stock market, by the close, the S&P 500 Index rose 0.72% to 5886.55 points; the Nasdaq Composite Index rose 1.61% to 19010.08 points; the Dow Jones Industrial Average fell 0.64% to 42140.43 points.
The S&P 500 closed at its highest level since early March, shifting from a decline to an increase for the year, now up 0.08%, having at one point dropped over 17% this year.
Most large technology stocks rose, with Microsoft down 0.03%, Apple up 1.02%, NVIDIA up 5.63%, Amazon up 1.31%, Google C up 0.82%, Meta up 2.6%, and Broadcom up 4.89%; Tesla rose 4.93%, closing at its highest level since February 24.
For Chinese concept stocks, the Nasdaq China Golden Dragon Index fell 0.07%. The popular China Concept Stocks saw mixed performance, with Amer Sports rising 3.86%, JD.com up 3.33%, PDD Holdings up 2.64%, and Tencent Music up 2.51%.
In the Hong Kong stock market, as of Tuesday's close, the Hang Seng Index fell 1.87% to 23108.27 points; the Technology Index fell 3.26% to 5269.66 points; and the Hang Seng China Enterprises Index fell 2.02% to 8386.21 points.
From the market performance perspective, Banks, toys, shipping, and Golden Industrial Concept stocks strengthened, while Autos and Semiconductor stocks weakened.
Company News
Tencent Music-SW (01698.HK): Total revenue in the first quarter was 7.36 billion yuan, an increase of 8.7% year-on-year; net profit was 4.29 billion yuan, an increase of 201.8% year-on-year; adjusted net profit was 2.23 billion yuan, an increase of 22.8% year-on-year.
JD Group-SW (09618.HK): Revenue in the first quarter was 301.1 billion yuan, an increase of 15.8% year-on-year; net profit was 10.89 billion yuan, an increase of 52.73% year-on-year.
JD Logistics (02618.HK): Revenue in the first quarter was approximately 46.967 billion yuan, an increase of 11.5% year-on-year; net profit was approximately 0.611 billion yuan, an increase of 89.5% year-on-year.
JD HEALTH (06618.HK): Revenue in the first quarter was 16.645 billion yuan, an increase of 25.5% year-on-year; net profit was 1.071 billion yuan, an increase of 119.8% year-on-year.
BEIGENE (06160.HK): In the first quarter, revenue was 8.048 billion yuan, a year-on-year increase of 50.2%; net loss was 94.503 million yuan, a year-on-year decrease of 95.05%.
SAMSONITE (01910.HK): In the first quarter, net sales were approximately 0.7966 billion USD, a year-on-year decrease of 7.3%; net profit was 48.2 million USD, a year-on-year decrease of 42.6%.
CHINA RES LAND (01109.HK): In the first four months, cumulative contract sales amount to approximately 68.5 billion yuan, a year-on-year decrease of 4.9%; sales in April were 17.3 billion yuan, a year-on-year decrease of 18.7%.
SEAZEN (01030.HK): In the first four months, cumulative contract sales were 6.863 billion yuan, a year-on-year decrease of 56.15%; sales in April were 1.761 billion yuan, a year-on-year decrease of 52.46%.
MEDBOT-B (02252.HK): Plans to place new H shares to several investors, the controlling shareholder intends to sell existing H shares.
