【Abstract】Will the United States announce new chip export restrictions to China? Ministry of Foreign Affairs: Resolute measures will be taken; In November, the MLF shrinkage continued, and the central bank can expect to cut the RRR at the right time; China will fully realize the large-scale application of 5G by the end of 2027; Food Conservation and Anti-Food Waste Action Plan issued; Nine departments jointly promote scientific and technological innovation and technological transformation loans; China Association of Automobile Manufacturers: In October, a total of 1.931 million Chinese brand passenger cars were sold, a year-on-year increase of 30%; The three major U.S. stock indexes collectively closed higher, the Dow rose 0.99% to hit a record high, and Nvidia and Tesla fell sharply.

Overnight outer disk

Eastern time on Monday, the three major U.S. stock indexes collectively closed higher, with the Dow up 0.99% to hit a record high, the Nasdaq up 0.27%, and the S&P 500 up 0.30%. Spot gold fell more than 3% in the day, gold stocks fell, and Cordelon Mining and Harmony Gold fell more than 4%. Most of the large technology stocks rose, and Amazon rose more than 2%; Nvidia fell more than 4%, Netflix fell more than 3%, and Tesla fell nearly 4%. The chip and energy sectors rose, with ultra-micro computers up more than 15% and Prager Energy up more than 14%. The Nasdaq China Golden Dragon Index closed up 0.44%, popular Chinese concept stocks were mixed, iQiyi rose more than 6%, Alibaba, Baidu, Youdao, and New Oriental rose more than 2%. In terms of decline, Shell fell more than 5%, Weilai fell more than 3%, Xpeng Motors fell more than 2%, and NetEase fell more than 1%.

Hot spotlight

1. Will the United States announce new chip export restrictions to China? Ministry of Foreign Affairs: Resolute measures will be taken

On November 25, Foreign Ministry Spokesperson Mao Ning held a regular press conference. Reuters reporter asked, the American Chamber of Commerce said that the Biden administration will announce new chip export restrictions to China as early as next week. Does the foreign ministry have any comment?

Mao Ning said that China has always firmly opposed the US side's generalization of the concept of national security, abuse of export control measures, and malicious blockade and suppression of China, which seriously violates the laws of the market economy and the principle of fair competition, undermines the international economic and trade order, disrupts the stability of the global production and supply chain, and ultimately harms the interests of all countries. China will take resolute measures to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises.

2. In November, the MLF shrinkage continued, and the central bank could choose the opportunity to cut the RRR

In order to maintain reasonable and sufficient liquidity in the banking system, the People's Bank of China launched a medium-term lending facility (MLF) operation of 900 billion yuan on November 25, with a term of one year, with a maximum bid interest rate of 2.30%, a minimum bid interest rate of 1.90%, and a winning bid interest rate of 2.00%. Due to the expiration of 1.45 trillion yuan of MLF in November, the net withdrawal of MLF in that month was 550 billion yuan. The interviewed experts believe that the continuation of this month's MLF reduction may indicate that the central bank will iron out the market capital fluctuations at the end of the year through various policy tools such as open market treasury bond purchases and outright reverse repos, and the central bank may also choose the opportunity to cut the reserve requirement.

3. China will fully realize the large-scale application of 5G by the end of 2027

On November 25, the Ministry of Industry and Information Technology and other 12 departments issued the "5G Large-scale Application "Sailing" Action Upgrade Plan (hereinafter referred to as the "Plan"). The plan proposes that by the end of 2027, a development pattern of "universal capability, universal application, and inclusive empowerment" will be built and formed, and the large-scale application of 5G will be fully realized. The plan requires that by the end of 2027, the scale of 5G empowerment will be effective. The penetration rate of 5G individual users exceeds 85%, and the proportion of 5G network access traffic exceeds 75%, and 5G new consumption and new experience are constantly enriched. Create a group of 5G application leaders for key industries such as factories, hospitals, and scenic spots. The number of 5G IoT terminal connections exceeded 100 million, and the penetration rate of 5G applications in large and medium-sized industrial enterprises reached 45%.

4. Food conservation and anti-food waste action plan was issued

On November 25, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Food Conservation and Anti-Food Waste Action Plan", proposing to focus on key areas and key links to effectively reduce food and food loss and waste. By the end of 2027, the long-term mechanism of grain and food conservation will be more sound, the loss rate of grain production, storage, transportation and processing will be controlled below the international average, and the per capita food waste per meal in the catering industry, government canteens, school canteens, and enterprise canteens will be significantly reduced.

5. Nine departments jointly promote scientific and technological innovation and technological transformation loans

In order to strengthen the implementation of the loan policy for scientific and technological innovation and technological transformation, the People's Bank of China jointly held a meeting on November 21 to promote the loan work of scientific and technological innovation and technological transformation in conjunction with the National Development and Reform Commission and the Ministry of Science and Technology. The meeting required that all banking institutions should focus on improving the efficiency of loan review and lending, optimize the mechanism process, and increase resource security. All branches of the central bank should work closely with relevant departments to tilt policies more towards the private sector and small and medium-sized enterprises. As of November 15, the bank has signed loan contracts of nearly 400 billion yuan with 1,737 enterprises and projects, which has strongly supported the first loan of technology-based enterprises in the start-up and growth stages and large-scale equipment renewal in key areas.

6. China Association of Automobile Manufacturers: In October, a total of 1.931 million Chinese brand passenger cars were sold, a year-on-year increase of 30

According to the statistical analysis of the China Association of Automobile Manufacturers, in October 2024, a total of 1.931 million Chinese brand passenger cars were sold, an increase of 12.9% month-on-month and 30% year-on-year, accounting for 70.1% of the total passenger car sales, and the sales share increased by 10.4 percentage points over the same period of the previous year. From January to October 2024, a total of 13.849 million Chinese brand passenger cars were sold, a year-on-year increase of 21.2%, accounting for 64.6% of the total passenger car sales, and the sales share increased by 9.3 percentage points over the same period last year.

7. The "China (Zhejiang) Pilot Free Trade Zone Bulk Commodity Resource Allocation Hub Construction Plan" was issued

The Ministry of Commerce and the Zhejiang Provincial Government issued the "Plan for the Construction of a Bulk Commodity Resource Allocation Hub in the China (Zhejiang) Pilot Free Trade Zone". The construction of the bulk commodity resource allocation hub is based on the Zhoushan Outlying Island Area, the Northern Zhoushan Island Area, and the Southern Zhoushan Island Area of the Zhejiang Pilot Free Trade Zone, and coordinates the Ningbo Area to strengthen the linkage between the region and the outside of the region. By 2030, we will strive to build a number of characteristic functional islands of bulk commodities around the whole industrial chain of bulk commodities, steadily expand the scale of storage and transportation, continue to extend the chain of intensive processing, improve the trade and transaction ecology, increase the competitiveness of maritime services in the international market, significantly improve the allocation capacity of bulk commodity resources such as grain and energy resources and the ability to guarantee the industrial chain and supply chain, and initially build a fully functional bulk commodity storage, transportation, processing, maritime service base and trade and trading center. Build a hub for the allocation of bulk commodity resources with regional competitiveness and international influence.

Thematic opportunities

1. Prevent involution vicious competition in the battery separator industry and strengthen supply-side control

On November 25, the Battery Film Special Committee of China Plastics Processing Industry Association issued a proposal on promoting the healthy development of the battery separator industry. It is proposed that dumping below cost is extremely irresponsible to shareholders and society, which not only damages the long-term interests of enterprises, but also seriously affects the healthy and sustainable development of the entire industry. The association advocates organizing production activities according to market demand, actively controlling the quantity from both ends of production and marketing, reducing the amount by homeopathy, not fighting price wars, not fighting for shares, and strengthening the supply side control to achieve "volume reduction without profit reduction" or "volume reduction and profit increase". Orient Securities believes that since the end of 2023, the lithium battery market has experienced a round of "volume and price decline, volume and price decline, volume and price supplement, volume and price stability" cycle. At present, it is observed that the bottoming out of upstream resources, the clearing and integration of the industry, and the improvement of processing fees and product structure are all expected to support the industry to enter the right-hand profit continuous improvement cycle.

2. Tesla's humanoid robot will participate in the China International Supply Chain Promotion Expo, and the industrial chain company has attracted attention

According to the official Weibo of "Tesla", Tesla announced that it will participate in the China International Supply Chain Promotion Expo to be held from November 26 to November 30. Tesla said that they will display "the first 10-layer flat wire motor, an efficient battery management system, an energy-saving master heat pump system, a humanoid robot, and the best-selling models Model Y and Model 3" products at the exhibition. Tesla's second-generation humanoid robot Optimus was unveiled during the 2024 World Artificial Intelligence Conference held on July 4 this year. Tesla has updated its product progress several times this year. In addition, Figure and others are also actively launching next-generation products and promoting terminal applications this year. From the perspective of the domestic robot industry, national and local policies have intensively launched relevant policies to encourage and promote the development of the humanoid robot industry. The accelerated mass production of domestic humanoid robot products has brought greater market potential to the supply chain. The industrialization of humanoid robots has shown signs of acceleration, and enterprises related to the industrial chain will gradually enter the benefit stage.

3. Policies guide central enterprises to accelerate the cultivation of new and quality improvements, and mergers and acquisitions of strategic emerging industries will continue to heat up

With the deepening of the reform of state-owned assets and state-owned enterprises, the State-owned Assets Supervision and Administration Commission of the State Council has once again released the policy signal of state-owned capital to accelerate the pace of layout of strategic emerging industries, so as to guide enterprises to achieve the goal of optimizing the structure of the state-owned economy and enhancing the international competitiveness of Chinese enterprises. According to the analysis, China's strategic emerging industries continue to grow and develop, but the scale needs to be further improved, and the industrial structure still needs to be further optimized. Under the guidance of policies, the mergers and acquisitions of central enterprises may continue to heat up, accelerate the development of strategic emerging industries through capital operation, and help central enterprises open the "second curve" of growth.

Company News

1. Xingyuan Material: It is planned to cooperate with Zhongke Shenlan Huize to develop a solid electrolyte membrane

Xingyuan Materials (300568) announced on the evening of November 25 that the company signed a strategic cooperation framework agreement with Zhongke Shenlan Huize New Energy (Changzhou) Co., Ltd. (hereinafter referred to as "Zhongke Shenlan Huize"), which established a deep strategic cooperative relationship to jointly develop solid-state electrolyte membranes, and further expand commercial cooperation at the right time to develop, produce and sell solid-state electrolyte membranes.

2. Xiangdian shares: it is planned to raise no more than 2 billion yuan

Xiangdian Co., Ltd. (600416) disclosed on the evening of November 25 the plan to issue shares to specific targets in 2024, and planned to raise no more than 2 billion yuan for the serial development and industrialization of aviation electrical systems, the research and development and industrialization of magnetic bearing high-speed motor systems, and the replenishment of working capital.

3. Guanghong Technology: Planning to acquire AC company and TIS factory

Guanghong Technology (300735) announced on the evening of November 25 that the company is planning to purchase 100% of the shares of All Circuits S.A.S. (hereinafter referred to as "AC Company") and 0.003% of the shares of TIS Circuits SARL (hereinafter referred to as "TIS Factory") by paying cash. Upon completion of the transaction, AC and TIS will become subsidiaries of the Company. According to the listing and transfer information of the Beijing Equity Exchange, the reserve price for the transfer of 100% equity of AC company is 733 million yuan, and the reserve price of 0.003% equity transfer of TIS factory is 0.0001 million yuan. Through this transaction, the company will control 100% of AC and its controlled TIS plant, thereby enriching the company's technology and product portfolio in the field of electronic controls for the automotive industry. The consideration for the transaction is planned to be paid entirely from the proceeds from the issuance of shares to specific targets. At the same time, Guanghong Technology disclosed the plan to issue shares to specific objects, and planned to raise no more than 1.033 billion yuan for the acquisition of 100% equity of AC company and 0.003% equity of TIS factory and replenishment of working capital.

4. Geling Shentong: It is planned to hold Guoke Emdoor to develop intelligent business in the field of military industry

Geling Shentong (688207) announced on the evening of November 25 that the company intends to acquire part of the equity of Shenzhen Guoke Emdoor Technology Co., Ltd. (hereinafter referred to as "Guoke Emdoor") by way of capital increase and acquisition of equity, of which it is planned to increase the capital of Guoke Emdoor with 50 million yuan, and transfer part of the equity of Guoke Emdoor with 10.3284 million yuan, and at the same time sign the "Concerted Action Agreement" with some shareholders of Guoke Emdoor to achieve control of Guoke Emdoor. After the completion of the transaction, the company will directly hold 23.42% of the equity of CAE Emdoor, become its largest shareholder, and obtain 54.68% of the voting rights of CAS Emdoor through concerted action, and become the controlling shareholder of CAE Emdoor. CAS Emdoor mainly provides terminal computing equipment with localized chips as the core for the military industry, including motherboards based on localized chips, ruggedized and localized tablets, notebook computers, etc., and the products have been supplied in batches in the industry. This transaction will strengthen the company's hardware design, R&D and manufacturing capabilities, accelerate the implementation of the strategy of artificial intelligence software and hardware integration products, and help the company develop intelligent business in the military industry.

5. Baiao Chemical: It is planned to set up a wholly-owned subsidiary to further invest in the semiconductor industry

Baiao Chemical (603360) announced on the evening of November 25 that the company intends to invest 10 million yuan in cash to set up a wholly-owned subsidiary "Dalian Baiao Semiconductor Technology Co., Ltd." for further investment in the semiconductor industry in the future.

6. Horn Steam & Electric: It is planned to set up Horn Robot Perception Technology Company in Shenzhen

Horn Steam & Power (301488) announced on the evening of November 25 that in order to improve the strategic layout, the company plans to invest in the establishment of Horn Robot Perception Technology Co., Ltd. in Shenzhen, with a registered capital of 50 million yuan. The subsidiary is mainly engaged in the research and development, production and sales of perception products in the field of robotics.

7. Debang shares: indirect controlling shareholders plan to increase their holdings by 300 million yuan to 600 million yuan

Debang shares (603056) announced on the evening of November 25 that the company's indirect controlling shareholder, Jingdong Zhuofeng, intends to increase its holdings of the company's shares by centralized bidding transactions, with a total increase of not less than 300 million yuan and no more than 600 million yuan. The source of funds for the increase in holdings is the special loan provided by Bank of China Suqian Branch and JD Zhuofeng's own funds. Bank of China Suqian Branch agreed to provide special loan support for JD Zhuofeng to increase its shareholding in the company, with a loan amount of no more than 400 million yuan.

8. LONGi Green Energy: The chairman plans to increase his shareholding in the company by no less than 100 million yuan

LONGi Green Energy (601012) announced on the evening of November 25 that Zhong Baoshen, chairman of the company, plans to increase his holdings of the company's shares through the Shanghai Stock Exchange system within 12 months from November 26, 2024, with an amount of no less than 100 million yuan. The methods of increasing holdings include centralized auction trading, block trading and other methods permitted by law.

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