Key Economic Updates: Central Bank Releases Q1 Financial Data and Commerce Ministry Responds to US Tariff Changes

Central Bank Releases First Quarter Financial Data; Ministry of Commerce Responds to U.S. Announcement on Exempting Certain Goods from “Reciprocal Tariffs”… Here’s a summary of important pre-market news.

<b>Key News</b>
<ol>
    <li>Subscription Notice: For new stocks, Tianyouwei has a subscription code of 732202, an issue price of 93.5 yuan per share, with a subscription limit of 12,500 shares.</li>
    <li>On the evening of April 11, local time, the U.S. Customs and Border Protection Agency announced that the federal government has agreed to exempt certain electronic products, including smartphones, computers, and chips, from the so-called "reciprocal tariffs." The document states that the exemption applies to electronic products entering the U.S. after April 5, and that previously paid "reciprocal tariffs" can be refunded.</li>
    <li>The spokesperson for the Ministry of Commerce responded to a reporter's question regarding the U.S. exemption of certain products from "reciprocal tariffs," stating that this adjustment follows the U.S. decision on April 10 to suspend high "reciprocal tariffs" on some trading partners. This can be seen as a minor step towards correcting the unilateral erroneous practice of "reciprocal tariffs" by the U.S.</li>
    <li>On April 11, the State Council Tariff Commission announced that starting April 12, 2025, the tariff rate on U.S. products will increase from 84% to 125%. The announcement indicated that given the current tariff levels, U.S. goods exported to China have no market acceptance. Should the U.S. continue to impose tariffs on goods imported from China, China will not respond.</li>
    <li>On April 13, the People's Bank of China released the latest financial and social financing data, showing that in the first quarter, RMB loans increased by 9.78 trillion yuan, with 3.64 trillion yuan added in March alone. Preliminary statistics indicate that the cumulative social financing increment in the first quarter reached 15.18 trillion yuan, with March's increment at 5.89 trillion yuan, which is an increase of 1.06 trillion yuan year-on-year.</li>
    <li>The People's Bank of China, along with three other departments, jointly issued guidelines on "Financial Support for High-Quality Development of the Sports Industry."</li>
    <li>The National Financial Supervisory Administration released guidelines to promote the high-quality development of financial asset management companies, aiming to enhance regulatory effectiveness and improve the acquisition and disposal of non-performing assets, thus addressing risks in small and medium-sized financial institutions and the real estate sector.</li>
    <li>Last Friday, the Dow Jones Industrial Average rose by 1.56%; the S&P 500 increased by 1.81%; and the Nasdaq gained 2.06%. The Nasdaq China Golden Dragon Index rose by 1.73%. Overall, the Dow increased by 4.95% last week, the S&P 500 by 5.7%, and the Nasdaq by 7.29%.</li>
    <li>Last week, international gold prices reached a new historical high, with London gold surpassing $3,200 per ounce, peaking at $3,245.45 per ounce.</li>
    <li>Due to continued investor withdrawals from U.S. assets, the yield on 10-year U.S. Treasury bonds surged by over 50 basis points to 4.49%, marking the largest single-week increase in over 20 years.</li>
    <li>The State Council Information Office will hold a routine press conference on economic data for the first quarter on April 14, 2025, at 10 AM, where the Deputy Director of the General Administration of Customs, Wang Lingjun, will discuss import and export situations for the first quarter and answer reporters' questions.</li>
    <li>The China Semiconductor Industry Association issued an emergency notice on April 11 regarding the "Rules for Origin Determination of Semiconductor Products." According to relevant regulations, the origin of "integrated circuits" is determined based on the four-digit tariff number change principle, meaning the wafer fab location is regarded as the place of origin. It is recommended that the origin for "integrated circuits," whether packaged or unpackaged, be declared based on the location of the "wafer fab" during import customs declaration.</li>
    <li>In response to the impact of U.S. tariff adjustments, several companies, including JD.com, Hema, Yonghui Supermarket, Baidu, and Dongfang Zhenxuan, have initiated support plans to help foreign trade enterprises expand into the domestic market. JD.com announced a large-scale procurement of at least 200 billion yuan worth of goods transitioning from export to domestic sales over the next year; Baidu announced it will use AI technology and platform traffic to support 1 million enterprises in transitioning from export to domestic sales.</li>
</ol>

<b>Company News You Shouldn't Miss</b>
<ol>
    <li>From April 11 to 12, Zhang Deqin, Secretary of the Party Committee and Chairman of Kweichow Moutai Group, visited BYD Co., Ltd. and Huawei Technologies Co., Ltd. to learn from their excellent technological innovation experiences to continuously provide innovation momentum for Moutai's high-quality development.</li>
    <li>CATL: The Hong Kong Stock Exchange has reviewed the company's application for issuing H-shares.</li>
    <li> Zijin Mining reported an operating income of 78.928 billion yuan for the first quarter of 2025, a year-on-year increase of 5.55%; net profit attributable to shareholders was 10.167 billion yuan, a year-on-year increase of 62.39%.</li>
    <li>Zhuoyue Technology recently received a criminal judgment from the Shenzhen Intermediate People's Court against its controlling shareholder and actual controller, Xia Chuanwu, for manipulating the securities market and insider trading, resulting in a seven-year prison sentence and a fine of 45 million yuan. The illegal gains from the defendant will be confiscated and paid to the state treasury. Xia resigned from management positions in the company in May and August 2018 and will not significantly impact company operations.</li>
    <li>Infinitus plans to repurchase company shares worth 50 million to 100 million yuan.</li>
    <li>Zhenyu Technology's 2024 annual performance report shows a revenue of 7.124 billion yuan, a year-on-year increase of 18.37%; net profit attributable to shareholders was 255 million yuan, a year-on-year increase of 495.99%. Basic earnings per share stood at 2.52 yuan. The company also forecasts a net profit of 69 million to 75 million yuan for the first quarter of 2025, representing a year-on-year growth of 31.54% to 42.97%.</li>
    <li>Chuanjiang New Material expects a net profit attributable to shareholders of the listed company between 130 million and 150 million yuan for the first quarter of 2025, reflecting a year-on-year growth of 26.74% to 46.24%.</li>
    <li>Xinghua New Materials achieved an operating income of 792 million yuan in 2024, a year-on-year increase of 13.59%; net profit was 148 million yuan, up 51.93%; basic earnings per share were 1.24 yuan. The company plans to distribute a cash dividend of 8 yuan per 10 shares (tax included) and to convert 4.6 shares for every 10 shares from the capital reserve.</li>
    <li>*ST Tianwo's stock trading will be suspended for one day on April 14, 2025, and will resume trading on April 15, 2025. The stock will no longer carry "delisting risk warnings" and "other risk warnings," changing its name from "*ST Tianwo" to "Tianwo Technology," with daily price fluctuation limits changing from 5% to 10%.</li>
    <li>Youli De plans to repurchase shares worth 15 million to 30 million yuan.</li>
    <li>Xinnai Fu is planning to issue shares and pay cash to purchase assets and raise matching funds, which is expected to constitute a significant asset restructuring. The target of the transaction is 100% equity in Guangzhou Jinnan Magnetic Materials Co., Ltd. The company has signed a letter of intent with the main counterparty to preliminarily agree on the asset purchase.</li>
    <li>Shangneng Electric plans to repurchase shares worth 36 million to 72 million yuan.</li>
    <li>Guanghua Technology expects a net profit attributable to shareholders of the listed company between 22 million and 28 million yuan for the first quarter, reflecting a year-on-year growth of 479.25% to 637.23%.</li>
    <li>Jiangling Motors plans to repurchase A-shares worth 150 million to 200 million yuan.</li>
    <li>China Life Insurance expects a net profit attributable to the parent company between 11.652 billion and 13.445 billion yuan for the first quarter of 2025, a growth of 30% to 50% year-on-year.</li>
    <li>Meijin Energy has terminated its major asset restructuring matter.</li>
    <li>Gao Lun Electronics plans to purchase equity in Ruicheng Semiconductor and Naneng Semiconductor, with stock resuming trading on April 14.</li>
    <li>Meige Intelligent expects a net profit of 40 million to 52 million yuan for the first quarter, a year-on-year increase of 518.53% to 704.09%.</li>
    <li>Chuanjinno expects a net profit of 65 million to 80 million yuan for the first quarter, a year-on-year increase of 218.96% to 292.56%.</li>
    <li>Suihengyun A expects a net profit of 80 million to 108 million yuan for the first quarter, a year-on-year increase of 155% to 244%.</li>
    <li>Taishan Petroleum expects a net profit of 48 million to 58 million yuan for the first quarter, a year-on-year increase of 159% to 213%.</li>
    <li>Sanmei Co. expects a net profit of between 369 million and 428 million yuan for the first quarter, a year-on-year increase of 139.41% to 177.71%.</li>
    <li>Chao Sheng Electronics expects a net profit of 38 million to 45 million yuan for the first quarter, a year-on-year increase of 120.38% to 160.98%.</li>
    <li>Hunan Gold expects a net profit of 32.5 million to 37.4 million yuan for the first quarter, a year-on-year increase of 100% to 130%.</li>
    <li>Ke Li Sensor expects a net profit of 68.18 million to 82.5 million yuan for the first quarter, a year-on-year increase of 58.48% to 91.76%.</li>
    <li>Xinnong Co. expects a net profit of 40.5 million to 42.5 million yuan for the first quarter, a year-on-year increase of 36.03% to 42.75%.</li>
    <li>Hua Gong Technology expects a net profit of 390 million to 440 million yuan for the first quarter, a year-on-year increase of 34.54% to 51.79%.</li>
    <li>Liu Gong expects a net profit of 622 million to 672 million yuan for the first quarter, a year-on-year increase of 25% to 35%.</li>
    <li>Sheng Nong Development expects a pre-tax profit of 130 million to 160 million yuan for the first quarter, returning to profitability year-on-year.</li>
    <li>He Wang Electric expects a year-on-year increase of 90.35% in net profit for the first quarter and plans to repurchase shares.</li>
    <li>Zijin Mining's net profit reached 10.167 billion yuan in the first quarter, up 62.39% year-on-year.</li>
    <li>Shouchuang Environmental expects a year-on-year increase of 119.14% in net profit for 2024 and plans to distribute 1.7 yuan per 10 shares (tax included).</li>
    <li>Yuejian Intelligent anticipates a 103.47% increase in net profit for 2024 and plans to distribute 8 yuan per 10 shares (tax included).</li>
    <li>Zhongxin Co. expects a 39.93% increase in net profit for 2024 and plans to distribute 9.6 yuan per 10 shares (tax included).</li>
    <li>Jiaocheng Ultrasound forecasts a 29.04% increase in net profit for 2024 and plans to distribute 3.5 yuan per 10 shares (tax included).</li>
    <li>Naike Equipment expects a 22.1% increase in net profit for 2024 and plans to distribute 4 yuan per 10 shares (tax included).</li>
    <li>Youlide anticipates a 13.64% increase in net profit for 2024 and plans to distribute 10 yuan per 10 shares (tax included).</li>
    <li>West Mining expects a 5% increase in net profit for 2024 and plans to distribute 10 yuan per 10 shares (tax included).</li>
    <li>Wan Natural Gas expects a 3.3% decline in net profit for 2024 and plans to distribute 3.5 yuan per 10 shares (tax included).</li>
</ol>

<b>What Are Securities Firms Watching?</b>
<b>CITIC Securities:</b> The short-term "chip bottom" of A-shares has been observed. In April and May, trading opportunities may primarily focus on technology-themed trends. CITIC Securities' research report suggests that overall, attention should be on the constraints facing Trump rather than speculating on his intentions. The U.S. economy and Treasury bond rates are key variables for predicting the trajectory and pace of the trade war. Under various constraints, it is unlikely that conflicts in the China-U.S. economic and trade sectors will fully spread to the financial sector before the U.S. midterm elections. Domestic policy responses in April are expected to focus on prevention and pilot projects, with a larger policy scale anticipated mid-year. With strong market stability intentions from central authorities, the short-term "chip bottom" of A-shares has been reached, and trading opportunities in April and May may center on technology themes. Basic expectations may stabilize by the third quarter, with core assets in consumption, advanced manufacturing, and cyclical sectors likely to outperform, marking the most significant style switch since 2021.

<b>GF Securities:</b> The inflection point in multiple computer sectors is approaching, and a resonance is expected. GF Securities' research report believes that (1) fundamental inflection points in several lines, including Xinchuang, HarmonyOS, enterprise-level AI applications (Stage Two), smart vehicles, and payments, are expected to converge around mid-year (May to July), with significant overlaps among many of these areas. (2) The secondary market does not have overly optimistic expectations for the annual and quarterly reports of the computer industry. (3) The absolute increase in the computer sector in February is not particularly remarkable compared to previous bull markets, and there has been some degree of correction since March. (4) Therefore, it is recommended to seize opportunities in the upcoming multi-sector inflection points/resonance timing. The opportunity cost over time is relatively limited.