Macroeconomics
1. According to the Ministry of Industry and Information Technology, in order to enhance the comprehensive utilization of waste power batteries from new energy vehicles, the "New Energy Vehicle Waste Power Battery Comprehensive Utilization Industry Standard Conditions (2024 Edition)" has been revised and is now open for public comments.
2. The Ministry of Natural Resources has announced that to further optimize the layout of rural land use, local adjustments and overall optimization are allowed for the development and utilization of rural land.
3. The National Bureau of Statistics reported that, based on the monitoring of market prices for 50 key production materials in 9 major categories in the national circulation field, compared with the latter half of July, in early August, the prices of 9 products increased, 36 decreased, and 5 remained unchanged. Among them, the price of live pigs (external three elements) was 20.5 yuan/kg, a month-on-month increase of 5.7%.
4. A preliminary review by the Financial Times found that since the end of July, ten places including Shanghai, Anhui, Fujian, Jiangxi, Hubei, Hainan, Chongqing, Sichuan, Guizhou, and Xiamen have successively held mid-year work conferences for 2024, clarifying key work arrangements for the second half of the year. Among them, the orderly advancement of risk prevention and control in key areas such as real estate, local government debt, and small and medium financial institutions, as well as the unwavering strengthening of supervision and strict regulation, and the continuous promotion of comprehensive and strict governance of the party, have become "must-answer questions" for all regions.
5. According to information from Caixin from several local financial institutions and related insiders, the Financial Regulatory Administration, the Securities Regulatory Commission, and the Market Supervision Administration have recently jointly issued the "Notice on Further Strengthening the Supervision of Local Financial Organizations." The regulatory authorities are starting to further clean up and strengthen the supervision of local financial organizations over the next three years, and the relevant requirements have been issued to provincial-level institutions. Insiders revealed that this clean-up and rectification policy is more thorough and strict than in the past.
Investment Highlights
1. As of August 13, according to the China Securities Investment Fund Association, only 14 private securities investment fund products have been successfully filed since the beginning of August. In the first seven months, the number of new private funds filed each month was 653, 444, 530, 807, 467, 509, and 603, respectively, showing a significant decrease in the number of new products filed in August.
2. The Hengyue Quality Life Initiation Fund faces the risk of liquidation due to its net asset value being below 200 million yuan. The fund was established in 2021 with an initial fundraising scale of 168 million yuan, and by the end of the second quarter, the scale had dropped to 61 million yuan. Since 2024, 36 initiation funds have been liquidated.
3. This year, the two exchanges have issued disciplinary actions 30 times and regulatory measures 45 times for information disclosure issues of issuers and professional issues of intermediaries in IPO and refinancing projects, with the number of fines increasing by 2.75 times and 61% year-on-year, respectively.4. The 13F filing indicates that Berkshire Hathaway, under Warren Buffett, increased its holdings in Occidental Petroleum and AIG in the second quarter; it reduced its stake in Apple by 389 million shares, bringing its holding percentage down to 30.52%, and also reduced holdings in Chevron and T-Mobile; it completely sold off its positions in Snowflake and Paramount Global; initiated positions in beauty company Ulta Beauty and aerospace company Heico. By the end of the second quarter, Berkshire Hathaway's total holdings decreased from $332 billion to $280 billion.
Company Movements
1. Tencent Holdings: In the first half of the year, it achieved a revenue of 320.62 billion yuan, a year-on-year increase of 7%; it achieved an adjusted net profit of 107.58 billion yuan, a year-on-year increase of 53%.
2. Kweichow Moutai: The Guizhou State-owned Assets Supervision and Administration Commission recommended Xiang Ping and Zhang Xu as candidates for deputy general manager positions.
3. Ant Group announced the establishment of a new company "Digital Magnitude," focusing on the AI to B market.
4. 4 consecutive board inspections: The current main business is engineering consulting and contracting.
5. 3 days 2 board Guangshengtang: The company's innovative drug GST-HG141 for hepatitis B treatment carries the risk of suboptimal results or even clinical study failure.
6. 2 consecutive board Jinlong Automobile: The company's autonomous driving bus market is currently still in the exploratory stage.
International Developments
1. The three major U.S. stock indices closed slightly higher, with the Dow Jones Industrial Average up 0.61% at 40,008.39 points, the S&P 500 up 0.38% at 5,455.21 points, and the Nasdaq up 0.03% at 17,192.6 points, marking a fifth consecutive day of gains. American Express rose 1.98%, and Home Depot rose 1.55%, leading the Dow Jones. Chinese concept stocks generally fell, with Huya Live down 6.48%, and Bilibili down 6.29%.2. Xinhua News Agency: Data from the U.S. Department of Labor shows that in July of this year, the U.S. CPI rose by 2.9% year-on-year, with the increase narrowing by 0.1 percentage points compared to June, but still above the 2% long-term inflation target set by the Federal Reserve. Excluding the more volatile food and energy prices, the core CPI increased by 0.2% month-on-month in July and by 3.2% year-on-year, with the year-on-year increase being the lowest since April 2021.
3. CCTV News: On the 14th local time, Japanese Prime Minister Fumio Kishida stated that he will not participate in the Liberal Democratic Party's presidential election in September. This implies that after the new president of the Liberal Democratic Party is elected, Kishida will no longer serve as the Prime Minister of Japan.
Nan Cai Selection
1. After the bond market correction: The "negative feedback 2.0" in wealth management has not yet arrived, and several bond funds have encountered large redemptions. Due to the interbank traders' association's "call" for individual institutions to initiate self-discipline investigations, the bond market suddenly cooled down, experiencing significant fluctuations.
In this situation, the market is concerned about the re-emergence of the "negative feedback" in wealth management at the end of 2022. However, from the current perspective, the wealth management market is relatively calm. Nevertheless, bond funds with a higher proportion of fixed-income asset allocation have been "injured," with 4 funds issuing announcements to increase the fund's accuracy since August alone.
2. Pig prices continue to rise, with the industry's "strong reality" and "weak expectations" intertwined. Pig prices have already exceeded the previously anticipated target price of 20 yuan within the industry. Coupled with the sequential decline in feed costs such as soybean meal, the profit margin in the breeding segment has further increased.
However, in stark contrast to the strong reality mentioned above, the commodity forward curve shows a poor expectation for the future.