【Today's Headlines】
New Regulations on Market Value Management Implemented: Seven Market Value Management Methods Defined, Special Requirements for Two Types of Companies
The new regulations on market value management for listed companies have been implemented. On November 15, the China Securities Regulatory Commission (CSRC) stated that in order to implement the &#34;State Council's Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market&#34; (Guo Fa [2024] No. 10), and to further guide listed companies to focus on their investment value and effectively enhance investor returns, the CSRC has formulated the &#34;Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management,&#34; which will take effect from the date of publication. Special requirements for major index constituent companies and long-term companies with a net asset value below par have been clarified.
Overall, the implemented &#34;Guidelines&#34; consist of fifteen articles, covering the following four aspects: first, defining market value management; second, clarifying the responsibilities and obligations of relevant parties; third, specifying special requirements for major index constituent companies and long-term companies with a net asset value below par; fourth, outlining prohibited activities. This involves Hong Kong stocks of central state-owned enterprises and &#34;China Special Valuation.&#34;
【Market Outlook】
U.S. Stock Markets Closed Lower Last Friday, Nasdaq Down Over 2%
Last Friday, the U.S. stock markets closed lower across the board, with the Nasdaq down over 2%. At the close, the Dow Jones Industrial Average fell by 305.87 points from the previous trading day, closing at 43,444.99 points, a decrease of 0.70%; the S&amp;P 500 index dropped by 78.55 points, closing at 5,870.62 points, a decline of 1.32%; the Nasdaq Composite Index fell by 427.53 points, closing at 18,680.12 points, a decrease of 2.24%. For the week, the Nasdaq fell 3.15%, the S&amp;P 500 dropped 2.11%, and the Dow lost 1.24%. Disney rose over 5%, with a weekly gain of 16.21%, marking the largest single-week increase in 24 years. The Nasdaq Golden Dragon China Index closed up 0.82%, with a cumulative decline of 5.9% for the week. Most popular Chinese concept stocks rose, with JD.com up nearly 5%, Miniso and Li Auto rising over 2%, and Nio and New Oriental increasing over 1%.
Gold Prices Experience Largest Weekly Drop in Three Years; Institutions Say It's Not a Trend Reversal
Gold prices faced their largest weekly drop in over three years last week, as Trump's victory in the U.S. elections and a strengthening dollar led to a reversal of gold's historic upward trend. Analysts attribute part of the decline in gold prices to speculative funds that entered the next trend after a significant rise in gold prices. Nicky Shiels, head of research at MKS Pamp Group, stated, &#34;A large amount of money has flowed into Bitcoin and Tesla, which is Trump's trade, attracting funds from typical safe-haven assets like gold. This is not a reversal of the bullish trend; gold just rose too quickly, and now it is returning to a less bullish trajectory.&#34;
【Hot Topics Ahead】
&#34;Mutual Connectivity&#34; Marks Its 10th Anniversary; Chan Mo-po: Hong Kong Becomes the Preferred Place for International Trading of Mainland Financial Products
According to Zhitong Finance APP, the &#34;mutual connectivity&#34; between the financial markets of the mainland and Hong Kong has been in operation for ten years. On November 17, Hong Kong's Financial Secretary Chan Mo-po stated in a blog that over the past decade, the number of eligible stocks and the average daily trading volume of Hong Kong or mainland stocks have significantly increased, describing &#34;mutual connectivity&#34; as an innovative system that promotes the two-way flow of capital between the mainland and the world, allowing international investors to directly invest in the mainland market through Hong Kong, while mainland investors can also use Hong Kong to allocate overseas assets. Hong Kong has become the preferred place for international capital allocation and trading of mainland financial products
Trump Team Plans to Eliminate Electric Vehicle Tax Credit
According to media reports, the transition team of newly elected U.S. President Trump is planning to eliminate the $7,500 consumer tax credit for electric vehicle purchases as part of broader tax reform legislation. This tax subsidy has been seen as a hallmark measure of current President Biden's Inflation Reduction Act (IRA). In response to the rumor, Tesla CEO Elon Musk stated on social media: &#34;End all (U.S.) government subsidies, including those for electric vehicles, oil, and gas.&#34; Last weekend, U.S. stocks in the electric vehicle sector saw significant declines. Rivian dropped 14.3%, Nikola fell 22.76%, and Tesla also dropped 5.77%.
Two Departments: Export Tax Rebate Rate for Some Refined Oil, Photovoltaics, Batteries, and Certain Non-Metallic Mineral Products Reduced to 9%
The export tax rebate for aluminum, copper, and chemically modified animal, plant, or microbial oils and fats will be canceled. The export tax rebate rate for some refined oil, photovoltaics, batteries, and certain non-metallic mineral products will be reduced from 13% to 9%. This announcement will take effect on December 1, 2024. (Ministry of Finance, State Administration of Taxation)
Replacing Hidden Debt! Five Regions Begin &#34;Practical Operations,&#34; Issuing Over 200 Billion Yuan
On November 8, the Standing Committee of the 14th National People's Congress approved an increase of 60 billion yuan in the local government special debt limit to replace existing hidden debt. Subsequently, various regions quickly took action to address debt within a week. According to reporters' statistics, since November 12, five regions nationwide have disclosed plans to issue refinancing special bonds to replace existing hidden debt. According to incomplete statistics, from November 12 to now, the total amount of refinancing special bonds disclosed by the five regions for replacing existing hidden debt is 224.0169 billion yuan. Based on the amounts planned or issued by various regions, Jiangsu Province, Guizhou Province, Henan Province, Qingdao City, and Dalian City plan to issue or have issued amounts of 120 billion yuan, 47.6 billion yuan, 31.8169 billion yuan, 14.2 billion yuan, and 10.4 billion yuan, respectively.
Russia Restricts Export of Enriched Uranium to the U.S., Targeting U.S. Nuclear Fuel Supply Chain Shortcomings
On Friday (November 15), local time, the Russian government announced that it would temporarily restrict the export of enriched uranium to the United States. This move aims to counter the U.S. ban on importing Russian uranium. The Russian government announced this decision on the social media platform Telegram but did not mention the details or duration of the restrictions. The uranium mining series involves Hong Kong-listed CGN Mining (01164).
David Tepper: Chinese Stock Position Approaches 40%
Legendary hedge fund manager David Tepper's Appaloosa Management has increased its position in Chinese stocks from 26% at the end of the previous quarter to 38%, significantly increasing its holdings in Chinese concept stocks such as Pinduoduo, JD.com, and Beike. Notably, the fund increased its holdings in Pinduoduo by 3.36 million shares, bringing its total holdings to 5.3 million shares, with a market value of $715 million. Meanwhile, the fund has relatively reduced its positions in Alibaba, Baidu, China Large Cap ETF, and China Overseas Internet ETF. It is worth mentioning that Alibaba's stock price rose nearly 50% in the third quarter, and although Appaloosa made some reductions, the proportion of the stock's market value in its holdings actually increased
Alibaba-W (09988) Releases Interim Results Net Profit Attributable to Ordinary Shareholders of RMB 68.143 Billion, Up 9.84% Year-on-Year
According to Zhitong Finance APP, Alibaba-W released its interim results for the six months ending September 30, 2024. During the period, the group achieved revenue of RMB 479.739 billion, an increase of 4.53% year-on-year; net profit of RMB 64.569 billion, an increase of 13.19% year-on-year; net profit attributable to Alibaba Group shareholders of RMB 68.423 billion, an increase of 10.20% year-on-year; net profit attributable to ordinary shareholders of RMB 68.143 billion, an increase of 9.84% year-on-year; basic earnings per share of RMB 3.58.
Ascentage Pharma-B (06855): APG-2575 New Drug Application Accepted by the National Medical Products Administration's Drug Evaluation Center Recommended for Priority Review
According to Zhitong Finance APP, Ascentage Pharma-B announced that its self-developed novel selective Bcl-2 inhibitor APG-2575 (proposed Chinese generic name: Lisheng Kela Pian) has had its new drug application (NDA) accepted by the National Medical Products Administration (NMPA) Drug Evaluation Center (CDE) and has been recommended for inclusion in the priority review process for the treatment of refractory or relapsed (r/r) chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL). This is the first domestically submitted NDA for a homegrown original Bcl-2 inhibitor and is expected to become the second Bcl-2 inhibitor to be marketed globally.
Connora-B (02162): Exclusive License Agreement with Platina Medicines Ltd for CM336
According to Zhitong Finance APP, Connora-B announced that on November 17, 2024, Connora Biopharmaceutical Technology Co., Ltd. entered into an exclusive license agreement with Platina Medicines Ltd. The license agreement grants PML exclusive rights to develop, manufacture, and commercialize CM336 globally. CM336 is a bispecific antibody developed by the company. Under the terms and conditions of the license agreement, PML is granted exclusive rights for research, development, registration, production, and commercialization of CM336 in the licensed regions. In return, the group will receive a USD 16 million upfront payment and a recent payment, as well as a minority equity stake in Ouro Medicines, LLC as part of the consideration. Ouro Medicines is the parent company of PML and holds all equity in PML. Upon reaching several clinical, regulatory, and commercial milestones, the group may also receive up to USD 610 million in additional payments and has the right to receive tiered royalties on net sales of CM336 and related products from PML. The group is responsible for providing assistance to facilitate technology and knowledge transfer. Unless otherwise agreed, PML will be responsible for all costs associated with the development of CM336 in the licensed regions
Junshi Biosciences (01877): Toripalimab Approved for Market by the UK Medicines and Healthcare Products Regulatory Agency
According to Zhitong Finance APP, Junshi Biosciences announced that its wholly-owned subsidiary TopAlliance Biosciences Inc. has received marketing authorization from the UK Medicines and Healthcare Products Regulatory Agency for its product Toripalimab (UK trade name: LOQTORZI®). It is approved for the treatment of two indications: Toripalimab in combination with cisplatin and gemcitabine for first-line treatment of adult patients with recurrent, unresectable or radiotherapy-resistant, or metastatic nasopharyngeal carcinoma, and Toripalimab in combination with cisplatin and paclitaxel for first-line treatment of adult patients with unresectable advanced/recurrent or metastatic esophageal squamous cell carcinoma. Toripalimab becomes the first and only drug for the treatment of nasopharyngeal carcinoma in the UK, and the only first-line treatment drug for advanced or metastatic esophageal squamous cell carcinoma regardless of PD-L1 expression in the UK.
【Stock Highlights】
China Isotope &amp; Radiation (01763): New Production Line for Technetium-Labelled Drugs in Wuhan Obtains Radioactive Drug Production License
According to Zhitong Finance APP, China Isotope &amp; Radiation announced that on November 11, 2024, its holding subsidiary Wuhan Atomic High-Tech Pharmaceutical Co., Ltd. (hereinafter referred to as Wuhan High-Tech) has obtained a radioactive drug production license for the new production line of technetium-labelled drugs. China Isotope &amp; Radiation (01763.HK) announced that on November 14, 2024, its subsidiary Atomic High-Tech's wholly-owned subsidiary Atomic High-Tech North China Pharmaceutical Co., Ltd. (North China High-Tech) successfully obtained a radiation safety license issued by the Ministry of Ecology and Environment.
Ping An Securities released a research report stating that as of July 4, 2024, there are 88 radioactive new drugs approved globally, with only 18 for treatment. Since 2021, China's policies have provided strong support from various aspects such as isotope security, new drug review and approval, and nuclear medicine discipline construction, which is expected to promote the development of the nuclear medicine industry. The firm stated that the unique diagnostic and therapeutic advantages of nuclear medicine, combined with the excellent clinical and market performance of already marketed nuclear drugs, have led domestic and foreign pharmaceutical companies to frequently accelerate their layout in the nuclear medicine sector through acquisitions in recent years. It is expected that from 2023 to 2030, China's nuclear medicine market size will grow from 5 billion yuan to 26 billion yuan at a CAGR of 26.6%.
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On November 15th, the China Securities Regulatory Commission (CSRC) issued the "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management," clarifying seven methods of market value management, which involve special requirements for major index constituent companies and long-term companies trading below net asset value. The guidelines consist of fifteen articles, covering the definition of market value management, main responsibilities, special requirements, and prohibited matters. The three major U.S. stock indices collectively closed lower, with the Nasdaq down more than 2%

- The China Securities Regulatory Commission has implemented new guidelines for listed companies' market value management, effective November 15, 2024, to enhance investor returns and define responsibilities.  
- The guidelines include 15 articles outlining the definition of market value management, obligations of relevant parties, special requirements for key index constituents and long-term undervalued companies, and prohibited actions.  
- In related market news, U.S. stock indices fell, with the Nasdaq dropping over 2%, while gold prices experienced their largest weekly decline in three years due to a stronger dollar and shifts in investor sentiment.

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Zhitong Hong Kong Stocks Early Knowledge | Trump's team plans to cancel tax incentives for electric vehicle purchases, new regulations on market value management implemented: seven methods of market value management clarified