News from the Financial Associated Press on November 20,Important news that affected the market over the weekend included: The People’s Bank of China and the State Administration of Foreign Exchange jointly issued the “Regulations on the Fund Management of Foreign Institutional Investors Investing in China’s Bond Market”; Special board; the China Securities Regulatory Commission publicly solicited opinions on the “Guiding Opinions on Deepening the Reform of the Corporate Bond Registration System (Draft for Comment)”; the Beijing Stock Exchange lowered stock transaction handling fees by 50%.
Macro and market news
Central Bank: Improving the management of foreign institutional investors investing in China’s bond market funds to promote the further opening of China’s bond market
In order to further expand the two-way opening of the financial market, the People’s Bank of China and the State Administration of Foreign Exchange jointly issued the “Regulations on the Fund Management of Foreign Institutional Investors Investing in China’s Bond Market” (hereinafter referred to as the “Regulations”) to improve and clarify foreign institutional investors’ investment in China’s bond market. Fund management requirements in the bond market. The promulgation of the “Regulations” is conducive to further facilitating foreign institutional investors to invest in China’s bond market, and enhancing the attractiveness of China’s bond market to foreign institutional investors.
The main contents of the “Regulations” include: First, to uniformly regulate the management rules of capital accounts, fund receipts and payments, exchange, statistics and monitoring involved in foreign institutional investors’ investment in China’s bond market. The second is to improve the management of spot foreign exchange settlement and sales, allowing foreign institutional investors to handle transactions through third-party financial institutions other than settlement agents. The third is to optimize foreign exchange risk management policies, further expand foreign exchange hedging channels for foreign institutional investors, and cancel the limit on the number of counterparties in OTC transactions. The fourth is to optimize the currency matching management of inward and outward remittances, improve the convenience of remittance of investment funds by foreign institutional investors, and encourage long-term investment in China’s bond market. The fifth is to clarify the foreign exchange management requirements of sovereign institutions. Sovereign institutional investors investing through custodians or settlement agents (commercial banks) should register with banks. The “Regulations” will come into effect on January 1, 2023.
China Securities Regulatory Commission, Ministry of Industry and Information Technology: High-quality construction of regional equity market “specialized, special and new” special board
The China Securities Regulatory Commission and the Ministry of Industry and Information Technology jointly issued the “Guiding Opinions on the Construction of High-quality “Specialized, Specialized and New” Specialized Boards in Regional Equity Markets.” Specialize in the capabilities of small and medium-sized enterprises, standardize the operation of regional equity markets, integrate government and market resources, strengthen service capacity building, improve comprehensive financial services and the cultivation function of listed standards, improve the quality and efficiency of standardized development of high-quality small and medium-sized enterprises, and contribute to the construction of Provide strong support for the new development pattern and the realization of high-quality economic development. A regional equity market with a special board shall meet the requirements such as that the net assets of a regional equity market operator reach 150 million yuan or more within one year after the establishment of the special board. Focus on serving enterprises invested by government investment funds, small and medium-sized enterprises invested by private equity and venture capital funds, etc.
The China Securities Regulatory Commission publicly solicits opinions on the “Guiding Opinions on Deepening the Reform of the Corporate Bond Registration System (Draft for Comment)”
The China Securities Regulatory Commission publicly solicited opinions on the “Guiding Opinions on Deepening the Reform of the Corporate Bond Registration System (Draft for Comment)”. The “Guiding Opinions” follow the relevant provisions of laws and regulations such as the “Securities Law” and “Corporate Bond Issuance and Trading Management Measures”, adhere to the institutionalization, standardization and transparency orientation, make systematic institutional arrangements for deepening the reform of the corporate bond registration system, and propose to optimize corporate bonds. There are 12 measures in 4 aspects including reviewing the registration mechanism, tightening the responsibilities of issuers and intermediaries, strengthening the management of the duration, and cracking down on bond violations in accordance with the law. In the next step, the China Securities Regulatory Commission will carefully study and absorb the opinions and suggestions of all parties, issue and implement the “Guiding Opinions” as soon as possible, further improve the basic system of the bond registration system, maintain a good ecology of the bond market, and improve the quality and efficiency of serving the real economy.
The China Banking and Insurance Regulatory Commission issued regulations on the personal pension business of commercial banks and wealth management companies
The China Banking and Insurance Regulatory Commission issued a notice on the interim measures for the management of personal pension business of commercial banks and wealth management companies. City commercial banks with strong cross-regional service capabilities can provide personal pension services. As of the end of the third quarter of 2022, wealth management companies that have been included in the pilot scope of pension wealth management products can start personal pension business. Financial management companies shall, in accordance with the requirements of the Interim Measures, formulate plans for launching personal pension business, conduct feasibility assessments of financial products that intend to participate in the operation of personal pension funds, and submit the business plans to the China Banking and Insurance Regulatory Commission.
Beijing Stock Exchange lowers stock transaction handling fee
The Beijing Stock Exchange issued an announcement on lowering the transaction handling fee standard. Starting from December 1, 2022, the stock transaction handling fee standard will be lowered from 0.5‰ of the transaction amount bilaterally to 0.25‰ of the transaction amount bilaterally, a drop of 50%. .
Ministry of Finance: Areas where the financial expenditure responsibility of PPP projects exceeds the 10% red line are not allowed to start new PPP projects
The Ministry of Finance issued the “Notice on Further Promoting the Standardized Development and Sunny Operation of Public-Private Partnership (PPP)”. Among them, it is proposed that the fiscal expenditure responsibility of all PPP projects at the same level from the general public budget shall not exceed the red line of 10% of the general public budget expenditure at the same level in the year. Reasonably share the fiscal expenditure responsibilities of cross-regional and cross-level projects, and it is strictly forbidden to avoid the 10% red line constraint of fiscal affordability by “borrowing” the fiscal affordability space of regions that have not benefited. Prudently and reasonably predict the scale and growth rate of general public budget expenditures, and it is strictly forbidden to adjust project financial expenditure responsibilities by means of “reporting small and building big” out of the actual project, so as to avoid the 10% red line constraint of fiscal affordability. Areas where the financial expenditure responsibility of PPP projects exceeds the red line of 10% shall not launch new PPP projects; areas where the financial expenditure responsibility of PPP projects exceeds 5% shall not launch new government-paid PPP projects.
Hong Kong Stock Exchange: It is preparing to launch a market maker mechanism supporting the RMB trading counter in the first half of next year
Hong Kong Exchange Chairman Cha Mei-lun said on the 18th that in order to ensure sufficient liquidity for the newly added RMB trading counter, the Hong Kong Exchange is preparing a matching market maker mechanism, which is expected to be launched in the first half of next year.
Regulatory requirements prohibit private placement from inquiring insider information, dissemination of false, untrue, and misleading information
A reporter from the Financial Associated Press exclusively learned that on November 18, the China Securities Investment Fund Industry Association issued a notice prohibiting private equity investors from actively inquiring about insider information when carrying out securities investment and research activities, and prohibiting the dissemination of false, untrue, and misleading information. It is prohibited to engage in or participate in insider trading and manipulation of securities market activities. In addition, a management system for research activities should be established to strengthen the management of research activities. The research minutes of listed companies are only used for internal filing or writing research reports, and must not be released or provided to customers in violation of regulations. (Financial Associated Press reporter Yan Jun)
Industry news
The Ministry of Industry and Information Technology will study and introduce new measures to support the scale development of the Industrial Internet
At the 2022 China 5G+ Industrial Internet Conference, Zhang Yunming, vice minister of the Ministry of Industry and Information Technology, said that the Ministry of Industry and Information Technology will study and introduce new measures to support the scale development of the Industrial Internet. Zhang Yunming said that the Ministry of Industry and Information Technology will further enrich the policy toolbox, continuously improve the multi-level innovation demonstration system, encourage first-hand trials, and carry out 5G+ industrial Internet practice for the key industrial chains of industrial enterprise clusters, setting up a benchmark model, Formulate 5G fully connected factory construction standards by industry and field, and promote the continuous improvement of national standards, industry standards, and group standards.
Specific pension savings pilot officially launched
The Industrial and Commercial Bank of China began to issue the first batch of specific pension savings products in five cities including Guangzhou, Qingdao, Hefei, Xi’an and Chengdu on the 20th. The specific pension savings products launched this time include three types: lump sum deposit and withdrawal, fractional deposit and lump sum withdrawal, and lump sum deposit and partial withdrawal, covering four periods of 5 years, 10 years, 15 years, and 20 years.
Two departments: Lithium-ion battery industry chain supply chain moderately expands production scale according to time and needs to avoid low-level homogeneous development and vicious competition
The Ministry of Industry and Information Technology and the General Office of the State Administration for Market Regulation issued a notice to do a good job in the coordinated and stable development of the lithium-ion battery industry chain and supply chain. Diaphragm, electrolyte, etc.), secondary materials (battery-grade lithium carbonate, lithium hydroxide, etc.) Formulate policies for the development of the lithium battery industry in the region. Guide lithium battery enterprises to rationally formulate development goals based on actual conditions and industry trends. Under the premise of stable supply of key materials, sufficient investment in R&D and innovation, and sufficient supporting funds, moderately expand production scale according to time and demand, optimize industrial regional layout, and avoid low-level simultaneous development. To avoid qualitative development and vicious competition, establish a development pattern featuring innovation leadership, technology priority, fair competition, and orderly expansion.
Ministry of Culture and Tourism: In principle, areas without epidemics do not limit the number of audiences at concerts and other large-scale commercial performances
The Ministry of Culture and Tourism issued the “Guidelines for the Prevention and Control of the New Coronary Pneumonia Epidemic in Theaters and Other Performance Places (Sixth Edition)” and proposed that in areas where the epidemic has not occurred, the local cultural and tourism administrative departments should urge the performance organizers to implement normalized prevention and control measures. There is no limit on the number of consumers received by theaters and other performance venues, and in principle there is no limit on the number of audiences for large-scale commercial performances such as concerts, music festivals, and live tourism performances.
Company News
Liangpin Store: Hillhouse shareholders plan to reduce their shareholding by no more than 5.56%
BESTORE announced that Zhuhai Hillhouse Tianda Investment Center (Limited Partnership), HH LPPZ (HK) Holdings Limited, and Ningbo Hillhouse Zhiyuan Enterprise Management Partnership (Limited Partnership) are shareholders acting in concert, holding 5.56% of the company’s shares. It is planned to reduce the total shareholding of the company’s shares to no more than 22.29 million shares, that is, the total amount shall not exceed 5.56% of the company’s total share capital.
Tiandi Online: The verification of stock changes has been completed and trading will resume on November 21
Tiandi Online announced that it has recently carried out verification work on matters related to stock transaction changes. In view of the completion of the verification work, upon application, the company’s stock will resume trading from the market opening on November 21. None of the company, the controlling shareholder and the actual controller has any major issues about the company that should be disclosed but have not been disclosed.
Real life: Azivudine tablets sold by Neptune Xingchen are actually anti-HIV-1 indications and are currently off the shelves
Henan Real Biotechnology Co., Ltd. issued a statement stating that Shenzhen Neptune Xingchen Pharmacy retails the company’s drug Azivudine tablets online. This is a routine behavior of Neptune Pharmacy, and its original intention is to meet the needs of some people in Shenzhen who travel to and from Hong Kong and abroad. The Azivudine tablet sold online by Neptune is actually the company’s anti-HIV-1 indication drug. The company has communicated with Neptune Xingchen on the relevant situation as soon as possible, requesting that it be removed from the shelves immediately. At present, Neptune Star has removed the drug from the shelves. According to the national prevention and control policy, the novel coronavirus pneumonia will be treated in a centralized manner according to the management of Class B disease and Class A. The company will strictly abide by the national epidemic prevention policy requirements, and under the overall coordination of various ministries and commissions, do a good job in the production and supply of the anti-new crown drug Azivudine Tablets.
Fosun Pharma: Fubitai Bivalent Vaccine has been specially licensed for import in Macau, China and approved for special import in Taiwan, China for local vaccination respectively
Fosun Pharma announced that according to the press release of the Hong Kong government on November 18, the bivalent vaccine of Fubitai original strain/Omicron variant strain BA.4-5 (referred to as “Fubitai bivalent vaccine“) has been approved for emergency use in Hong Kong, China Approved and can be used for booster vaccinations for people aged 12 and over. In addition, as of the date of this announcement, the Fubitai bivalent vaccine has been approved for special import in Macau, China and special import approval in Taiwan, China, for local vaccination respectively. Fubitai bivalent vaccine and Fubitai BNT162b2 are both mRNA new crown vaccines introduced into the licensed area based on the “License Agreement”, and are mainly used to prevent new coronavirus pneumonia. Fubita bivalent vaccine is the iteration and supplement of Fubita BNT162b2 which is already on the market. Each dose of Fubitai bivalent vaccine contains 15 micrograms of mRNA encoding the spike protein of the original strain and 15 micrograms of mRNA encoding the spike protein of the Amicron BA.4/BA.5 mutant strain.
Swan Shares: The business dealings with companies under the Shandong Supply and Marketing Cooperative in recent years are house leasing or house leasing business
Swan shares announced that the business transactions between the company and enterprises under the control of Shandong Supply and Marketing Cooperatives in recent years are house leasing or house leasing business, which account for a relatively small proportion of the company’s operating income or operating costs. In 2019, 2020, and 2021, the proportion of the revenue recognized in house leasing transactions to the current year’s operating income was 0.35%, 0.36%, and 0.21%, respectively, and the proportion of the confirmed cost of house leasing transactions to the current year’s operating costs was 3.00% %, 2.40%, 2.06%. At the same time, the company has no plan to increase business dealings with Shandong Supply and Marketing Cooperatives or companies under their control due to recent hot concepts. The company’s stock will resume trading on November 21.
Kangtai Biology: The company’s new crown vaccine phase III clinical trial obtained key data
Kangtai Bio announced that the company’s new coronavirus inactivated vaccine (Vero cells) phase III clinical trial has obtained key data. The key data results of the completed phase III clinical trial prove that the new coronavirus inactivated vaccine has good safety in people aged 18 and over, and can produce good protection against COVID-19 caused by Omicron strain infection.
Tongce Medical: The actual controller Lv Jianming was put on file by the China Securities Regulatory Commission for suspected violations of laws and regulations in letter disclosure
Tongce Medical announced that the actual controller and chairman Lu Jianming received the “Notice of Case Filing” from the China Securities Regulatory Commission today. Because of Lu Jianming’s suspected information disclosure violations, the China Securities Regulatory Commission decided to file a case against Lu Jianming. According to the company’s preliminary understanding, the relevant content of the filing mainly involves the information disclosure of the No. 1 Fund Zhejiang Tongce No. 1 Investment Partnership (Limited Partnership). The filing of this case is for Lu Jianming himself and the disclosure of the above-mentioned matters, which will not affect the company’s normal business activities, and the company’s business management, business and financial status are normal.
Guangshengtang: The IIT study of the new crown oral drug GST-HG171 was approved by the ethics committee
Guangshengtang announced that the holding subsidiary Fujian Guangsheng Zhonglin Biotechnology Co., Ltd. (“Guangsheng Zhonglin”)’s oral small molecule broad-spectrum anti-new coronavirus 3CL protease inhibitor class I innovative drug GST-HG171 has recently launched A researcher-initiated study (IIT study). Among them, the research initiator, the First Affiliated Hospital of Guangzhou Medical University, is undergoing an ethics review process, and the Shenzhen Third People’s Hospital has obtained the approval of the ethics committee and agreed to carry out the research.
Daqo Energy: Signed a long-term sales agreement of about 45.086 billion yuan
Daqo Energy announced that it recently signed a “Purchase Agreement” with a customer. The contract stipulates that from January 2023 to December 2027, a customer is expected to purchase a total of 148,800 tons of solar-grade first-class non-cleaning blocks from the company. The estimated purchase amount is about 45.086 billion yuan (including tax, the estimated price does not constitute a price commitment). The actual purchase price is negotiated on a monthly basis.
Overseas news
FTX to initiate a strategic review of its global assets
FTX announced that, as part of its bankruptcy proceedings, it will initiate a strategic review of its global assets to maximize recoverable value. Court documents show that FTX and its companies have been unable to collect a complete list of foreign suppliers or advance claim amounts due to deficiencies in the debtor’s corporate records.
Major U.S. stock indexes closed up slightly, popular technology stocks were mixed
The major U.S. stock indexes closed slightly higher. The Dow rose 0.6%, and fell 0.01% this week; the Nasdaq rose 0.01%, and fell 1.57% this week; the S&P 500 rose 0.48%, and fell 0.69% this week. Utilities and wind power sectors were among the biggest gainers, Public Service Group, Pacific Coal and Electric rose more than 3%, and American Water rose more than 2%. Popular technology stocks were mixed. Cisco rose more than 2%, Apple and Meta Platforms rose less than 1%, and Tesla and Nvidia fell more than 1%. The oil and gas and social media sectors were among the top losers. New Jersey Energy and Liquid Media fell by more than 5%, Snap fell by more than 3%, and US Energy fell by more than 2%.
Fed’s Collins: 75 basis points rate hike in December still possible
Fed Collins said that there is such a risk that with further interest rate hikes, it may tighten too far; a 75 basis point rate hike in December is still possible; recent economic data has raised its forecast for the terminal interest rate range.