Today's guide

On January 20, China's all-superconducting tokamak nuclear fusion experimental device (EAST), known as the "artificial sun", set a new world record in Hefei, Anhui Province.

Beijing Housing Provident Fund Management Center has innovatively launched the "direct rent" business model to further increase the support for rental housing for housing provident fund depositors.

As of 8:54 on January 20, the total pre-sale box office of the 2025 Spring Festival schedule has exceeded 200 million yuan.

A selection of highlights

Recently, the National Artificial Intelligence Industry Investment Fund Partnership (Limited Partnership) was established with a capital contribution of 60.06 billion yuan. Partners include: Guozhi Investment (Shanghai) Private Equity Fund Management Co., Ltd., China Integrated Circuit Industry Investment Fund III Co., Ltd.

Recently, the application materials for the establishment of Castle Securities (China) Co., Ltd. were accepted by the China Securities Regulatory Commission. In addition, the first branch of Standard Chartered Securities Limited was also approved to expand its business in China.

According to the Survey Report on China's Foreign Business Environment for the Fourth Quarter of 2024, more than eighty percent of the surveyed foreign-funded enterprises are satisfied with China's business environment. Among the 10 evaluation indicators, the satisfaction rate of the three indicators of obtaining business premises, handling business closure procedures, and resolving commercial disputes exceeded 90%.

On the 20th, the Beijing Housing Provident Fund Management Center issued the "Notice on Carrying out the Pilot Work of Withdrawing Housing Provident Fund and Paying Rent Directly", innovating and launching the "direct rent" business model, further increasing the support for housing provident fund depositors to rent housing, and promoting the healthy development of the housing rental market.

On January 18, the National Bureau of Statistics released the preliminary accounting results of GDP for the fourth quarter and the whole year of 2024, and after preliminary calculation, the GDP of China's financial industry in 2024 increased by 5.6% year-on-year.

On January 20, the People's Bank of China authorized the National Interbank Funding Center to announce that the 1-year LPR was 3.1%, and the LPR of more than 5 years was 3.6%. As the pricing benchmark for China's loan interest rate, the LPR has remained unchanged for three consecutive months.

On January 20, the Shanghai State-owned Assets and State-owned Enterprises Reform and Development and Party Building Work Conference pointed out that in 2025, Shanghai state-owned assets and state-owned enterprises will accelerate the optimization of the layout and structural adjustment of the state-owned economy, improve the efficiency of state-owned capital allocation, accelerate the cultivation and development of new quality productivity, and deepen the professional integration of strategic reorganization.

According to Lighthouse Professional Edition, as of 8:54 on January 20, the total pre-sale box office of the 2025 Spring Festival stalls (January 28-February 4) has exceeded 200 million yuan, setting a new record of 200 million yuan for the fastest pre-sale of Spring Festival stalls in Chinese film history.

Hot Spot Interpretation

The National Health Insurance Administration issued a list of Class C drugs

Recently, the National Health Insurance Administration held a press conference. Huang Xinyu, director of the Department of Pharmaceutical Service Management of the National Health Insurance Administration, introduced that in 2025, China will introduce a list of Class C drugs, which will include innovative drug varieties that exceed the functional positioning of "guaranteeing the basics" and cannot be included in the basic medical insurance drug list for the time being.

China Merchants Securities released a research report saying that the National Health Insurance Administration held a press conference, covering the operation of the national medical insurance fund in 2024, the exploration of multiple payment mechanisms, the promotion and implementation of DRG/DIP, data interconnection, medical insurance prepayment mechanism, and the improvement of fertility support policies, etc., highlighting the guidance of the medical insurance department to "really support innovation, support real innovation, and support differentiated innovation", and support the healthy development of the pharmaceutical industry from multiple perspectives.

The Ministry of Agriculture and Rural Affairs promotes a better match between supply and demand in pig breeding

On January 20, the Ministry of Agriculture and Rural Affairs mentioned at the "High-quality Economic Development Results" meeting that the average profit of pig heads slaughtered in 2024 will be 214 yuan, an increase of 290 yuan over 2023. In the next step, we will adhere to the policy of stabilizing production capacity and making concerted efforts to adjust production capacity in the market, continue to focus on the "general switch" of production capacity of 39 million sows in the country, guide farmers to adjust the scale of breeding and slaughter rhythm in a timely manner, and promote better matching of supply and demand. In terms of beef and milk cattle production, with the adaptation of production capacity and the implementation of various relief policies, the decline in beef cattle and milk prices has narrowed, and the cost of forage has been reduced, and the loss of beef and milk cattle breeding has been alleviated.

China's "artificial sun" is poised for major progress, and the commercialization of nuclear fusion is expected to accelerate

On January 20, China's fully superconducting tokamak nuclear fusion experimental device (EAST), known as the "artificial sun", set a new world record in Hefei, Anhui Province, and completed the "high-quality combustion" of 100 million degrees Celsius for the first time, marking a major leap from basic science to engineering practice in China's fusion energy research, which is of great significance to mankind to accelerate the realization of fusion power generation.

The

controlled nuclear fusion experimental device, known as the "artificial sun", has a nuclear fusion reaction mechanism similar to that of the sun. Li Chao of CITIC Securities said that nuclear fusion is expected to become the ultimate energy in the field of civil power generation, and the industry continues to rise, in the context of more certain technical paths and continuous investment in various countries, the pace of commercialization of fusion reactors is expected to exceed market expectations, and the global nuclear fusion device market size is expected to reach 2.26 trillion yuan between 2030 and 2035.

Company News

○The actual controller of Honghui New Materials is planned to be changed

Xiang Hongwei, the actual controller of Honghui New Materials (002802), intends to transfer 29.99% of the company's shares (54.6724 million shares) held by him to Xigang Qixing at 16.4562 yuan per share. If the transaction is completed, the controlling shareholder of the company will be changed to Xigang Qixing, and the actual controller will be changed to Xishan District National Service Center. The latest share price of Honghui New Materials is 12.79 yuan.

○ Optim plans to acquire 51% of the shares of Dongguan Taylor for 78.54 million yuan

Opt (688686) plans to acquire 51% of the equity of Dongguan Taile Automation Technology with its own funds of 78.54 million yuan. Dongguan Taylor is mainly engaged in the research and development, production and sales of precision transmission components, including linear motors, DD motors, etc.

○Shenglong Co., Ltd. signed a product development agreement with Fuyao Glass

Shenglong Co., Ltd. (603178) signed the "Product Development Agreement" with Fuyao Glass, and selected the company as the exclusive supplier of its shaft drive motor assembly and controller for industrial production. The project has a life cycle of 5 years, and is expected to start mass production in 2025, with sales of about 800 million yuan in the life cycle.

○ Salubris JK07 overseas clinical trial obtained positive interim data

Salubris (002294) received notification from its subsidiary, Salubris Bio, that JK07 showed a favorable safety and tolerability profile in the low-dose group, with no significant difference in the frequency and severity of adverse events between the two groups, and a positive efficacy signal was initially observed. JK07 is an NRG-1 fusion antibody drug independently developed by the company with global intellectual property rights.

○ Shenzhen Airport signed a strategic agreement with China Machinery Certification and Inspection and Low Altitude Production Service Company

Shenzhen Airport (000089) signed a strategic cooperation agreement with China Machinery Huanyu Certification and Inspection Co., Ltd. and Shenzhen Low Altitude Industry Development Service Co., Ltd. The three parties will work together to carry out in-depth cooperation in the field of inspection and testing of aviation ground service equipment and low-altitude aircraft, and establish a long-term strategic partnership.

○ From November to December 2024, the winning bid amount of China General Number is about 4.567 billion yuan

China General Number (688009) announced that from November to December 2024, it won bids for 16 important projects in the rail transit market, with a total bid amount of about RMB 4.567 billion, accounting for about 12.34% of the company's audited operating income in 2023 under Chinese accounting standards.

○ Jinpu Garden signed a major contract of 413 million yuan for daily operation

Jinpu Garden (301098) signed a contract with Xianning Green Industry Tourism Investment and Development Co., Ltd. for the EPC of the protection and upgrading of Xian'an Tingsiqiao National Historical and Cultural Town and supporting infrastructure construction project, with a contract price of about 413 million yuan.

Dragon and Tiger List

2 institutions bought shares of the Far East

According to the trading public information on January 20, Far Eastern Group (600869) was bought a total of 38.2616 million yuan by 2 institutions, accounting for 14.50% of the total turnover of the day.

Huaxi Securities believes that the company actively lays out the three major businesses of intelligent cable network, intelligent battery and smart airport, with high social and economic value and large growth space, occupying the industry's first-mover and leading advantages. The intelligent cable network serves important engineering projects in many fields and maintains a leading position in the industry. Its high-end cable products have become a leader in import substitution, filling a number of domestic technical gaps.

Institutional research

Montage Technology (688008) said that the company's PCIe Retimer chips will contribute new performance growth points to the company in the next few years, and the growth factors mainly include the increase in demand for AI servers, the increase in market share, and the continuous iteration of the PCIe protocol. In the future, we will continue to promote the iterative upgrading of PCIe Retimer chips, especially the self-development of core IP, maintain consistent high quality and high reliability, actively expand the market, and strive to maintain competitiveness in the future competition.

○ Dawn Co., Ltd. (002838) said that the company is a national high-tech enterprise engaged in the research and development, production, sales and service of functional polymer composite materials such as high-performance thermoplastic elastomers, modified plastics, and degradable materials. The company's modified plastic products are large, mainly used in automobiles, home appliances and other fields, accounting for about 70% of the company's revenue. Thermoplastic elastomers TPV, HNBR, copolyester and other products have high gross profit margins and achieve import substitution.

○ Huayang Group (002906) said that the company has the ability to develop hardware, software, tuning and other systems for digital acoustic products, and has been designated for a number of projects by Geely, BAIC, Xiaopeng and other customers; The company's sports mechanism product order development amount has increased significantly, and it has newly obtained designated projects from customers such as NIO, Xiaopeng, Zeekr, Ideal, Great Wall, Chery, Changan, and GAC.