On April 19th, the three major A-share indices collectively declined in the morning session. By the midday close, the Shanghai Composite Index fell by 0.40%, the Shenzhen Component Index fell by 1.31%, and the ChiNext Index fell by 2.20%. The TMT sector experienced a broad decline, with CPO and consumer electronics concepts leading the losses, while the chemical sector saw a significant volume surge, and the oil and gas, shipping, and gold sectors followed the commodity market with substantial gains. Over 3,900 individual stocks declined across the market.
Let's review the market highlights from the morning session.
**Oil and Gas Sector Shows Strength in the Morning Session, with 5 Stocks Including Potential Energy Hengxin Hitting the Daily Limit Up**
The oil and gas sector led the gains, with Potential Energy Hengxin, Tongyuan Petroleum, and Beacon Energy among 5 stocks hitting the daily limit up by the midday close, followed by First Energy Gas, Zhongman Petroleum, and Bomeico with increases.
Haitong Securities pointed out that international oil prices are expected to maintain a high level of volatility due to factors such as OPEC+ production cuts, a tight global supply, and geopolitical tensions.
**High-tech Development Hits the Daily Limit Down Again After Terminating the Acquisition of 70% Equity in Hua Kun Zhenyu**
High-tech Development once again hit the daily limit down, closing at 44.91 yuan by midday, with over 350,000 orders to sell.
High-tech Development announced in the early morning that it has terminated the acquisition of 70% of the equity in Sichuan Hua Kun Zhenyu Intelligent Technology Co., Ltd.
Regarding the reason for the termination of this transaction, the announcement stated that since the company planned and first announced this transaction, it has actively organized all relevant parties to the transaction to advance the work in accordance with relevant laws, regulations, and normative documents, and has fulfilled its information disclosure obligations as stipulated. Due to the large volume of audit work involved with the target company, the relevant parties are expected to be unable to issue audit and assessment reports within the specified period. Considering that the transaction has taken a long time, the industry in which the target company operates is influenced by internal and external environments, market expectations are high, and the audit and assessment results are not yet determined, the listed company and some transaction counterparts have not been able to reach a consensus on the transaction price. The company was unable to issue a notice to convene a shareholders' meeting within six months after the first board resolution on the issuance of shares to purchase assets (before April 19, 2024).
In light of the above factors, the company held the 75th temporary meeting of the eighth board of directors and the eighth temporary meeting of the eighth supervisory board on April 18th, and passed the relevant proposals to terminate this transaction. However, High-tech Development stated that the company will continue to promote the acquisition of the relevant equity and gain control of the target company.Additionally, the announcement reminds that there is uncertainty regarding whether the company will be able to obtain control of the target company and the timing of obtaining control, as well as the transaction plan. Investors are advised to invest rationally and be aware of investment risks.
**People's Bank of China Governor Pan Gongsheng Attends G20 Finance Ministers and Central Bank Governors Meeting**
From April 17-18, 2024, the G20 held its second finance ministers and central bank governors meeting of the year in Washington D.C., USA, during the Spring Meetings of the International Monetary Fund. The main topics of discussion included progress in the development of sustainable finance and the improvement of the international financial architecture. Governor of the People's Bank of China, Pan Gongsheng, attended and spoke at the meeting, with Deputy Governor Xuan Changneng also participating.
Participants expressed support for the formation of a credible, robust, and fair transition plan, agreed on the need to reduce the sustainable disclosure burden on small and medium-sized enterprises, and suggested mobilizing climate financing through multiple channels to improve the accessibility and affordability of funds. The meeting acknowledged the positive progress of the G20 Sustainable Finance Working Group and looked forward to its policy recommendations. Members generally supported enhancing the financing capacity of multilateral development banks and called for measures to maintain the stability of international capital flows to help vulnerable economies recover.
In his speech, Pan Gongsheng emphasized that a more open and inclusive multilateral trading system is beneficial for stabilizing global cross-border capital flows. He also introduced the latest progress of the People's Bank of China in promoting green finance, including the recent issuance of "Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development." As the co-chair of the G20 Sustainable Finance Working Group, he expressed gratitude for the support received and pledged to continue close cooperation with all parties to advance key tasks for the year.
**Ministry of Agriculture and Rural Affairs: Soybean Purchases Mainly Depend on Supply and Demand, Market Prices, and Other Factors**
Chen Bangxun, Director-General of the Development Planning Department of the Ministry of Agriculture and Rural Affairs, stated at a press conference that China is the world's largest importer of soybeans, maintaining good trade relations with various soybean exporting countries. Chinese soybean purchasers include both domestic and foreign enterprises, and their sourcing decisions are entirely autonomous, primarily based on factors such as supply and demand and market prices.
**Ministry of Agriculture and Rural Affairs: Focusing on Stable Production Capacity, Policies, and Disease Prevention to Continue Ensuring Stable Pig Production and Supply**
Lei Liugong, Director-General of the Market and Information Department of the Ministry of Agriculture and Rural Affairs, stated at a press conference that the next steps for the ministry will focus on stabilizing production capacity, policies, and disease prevention to continue ensuring stable pig production and supply. The main areas of focus are: First, stabilizing the basic production capacity by controlling the inventory of breeding sows, the "master switch," and supervising the implementation of graded responsibilities for pig production control to avoid extreme situations of over- or under-capacity. Second, stabilizing long-term policies by guiding localities to maintain long-term supportive policies in land use, environmental protection, and finance, enhancing policy coordination, and stabilizing market expectations. Third, strengthening disease prevention and control by intensifying guidance on spring pig disease prevention, especially focusing on the routine prevention and control of major animal diseases like African swine fever, and strengthening regulation of key links such as quarantine, transportation, and slaughter to promptly resolve disease risks and ensure the safe and healthy development of the pig industry.
**Wanfeng Auto-Wings: The Company Has Never Disclosed Information on eVTOL Partners, and the Project Remains in the Initial Stage of Cooperation**On the early morning of April 19th, in response to the question "Which country's enterprise is the company's flying vehicle partner," Wengfeng Auto replied on the Shenzhen Stock Exchange's Interactive Easy platform, stating that the partner is the head office established in China by a well-known global automotive OEM. A First Financial reporter called Wengfeng Auto in the morning as an investor, and the company responded by saying that it has never disclosed who the partner is. For specific cooperation details, please pay attention to subsequent announcements. The project is currently in the initial stage of cooperation, and the contribution to performance cannot be assessed for the time being. The company is currently organizing a project team to advance the project in an orderly manner.