Stock Market
- Chinese Stock Market:
- On Monday, AH shares opened higher and continued to rise. As of press time, the Shanghai Composite Index and the Shenzhen Component Index both rose by 0.4%, and the ChiNext Index surged by 0.78%.
- On the trading front, the precious metals sector led the gains, with social services, commercial retail, textiles, and building materials following closely behind. However, the real estate, light industry, home appliances, electronics, media, and pharmaceutical sectors saw significant declines.
- Indices for non-ferrous metals, tourism, and glass substrates showed significant increases. Gold stocks opened high, with Hunan Silver hitting the upper limit, and companies like Xiaocheng Technology, Hunan Gold, Western Gold, Chifeng Gold, and Zijin Mining collectively opening higher.
- Real estate services experienced a downturn, with Zhongtian Service opening nearly 8% lower, while Tefa Service dropped close to 7%. Other companies like Zhaoshang Jiyu, Nandu Property, Xinda Zheng, and Zhujiang Shares followed the decline.
- The Hang Seng Index rose by 0.45% and the Hang Seng Tech Index by 0.7%.
- International Market:
In the U.S. market, the China concept stocks index hit an eight-month high, rising 6.5% over the week. FangDD Network closed with a 321% increase following a trading halt, and Haidilao saw its stock rise more than 50% on its first day on the New York Stock Exchange, closing up by 14%.
Commodity Markets
- Oil and Natural Gas:
- Oil prices rose consecutively for three days, with U.S. oil breaking above $80 per barrel for the first time this month, marking a two-week gain.
- U.S. natural gas saw a weekly increase of nearly 17%.
- Metal Markets:
- Gold and copper futures hit historic highs, with silver and nickel surging. Silver prices rose by more than 6% during trading, while nickel on the LME gained over 11% for the week, and copper and tin both increased by more than 6%.
- COMEX copper futures prices soared to historic highs, with the main July contract closing last Friday at $11,200 per ton, up more than 9% for the week. Copper futures on the COMEX and LME attracted speculative long positions amounting to $25 billion.
Economic Data
- Chinese Economic Data:
- In April, the growth rate of retail sales of consumer goods fell short of expectations, slowing to 2.3% year-over-year.
- The value-added of industrial enterprises above a designated size increased by 6.7% year-over-year, showing a strong recovery in industrial production.
- Fixed asset investment expanded, while real estate development investment continued its downward trend, with price drops in second-hand housing widening both month-over-month and year-over-year across various cities.
Loan Prime Rate (LPR)
- China LPR:
As of May 20, 2024, the 1-year LPR stands at 3.45% and the LPR for over 5 years remains at 3.95%, both unchanged.
Forex Market
- AUD/USD:
- On Monday, the AUD/USD pair slightly increased to around 0.6695. The market remains skeptical that the Federal Reserve will adjust its policy earlier than previously anticipated.
- Australia's unemployment rate last month increased more than expected, alleviating the prospect of another rate hike by the Reserve Bank of Australia.
Specific Industry Dynamics
- Glass Substrates:
- The glass substrate concept remained strong, with companies such as WOFE Optoelectronics and Jinrui Mining hitting two consecutive upper limits. Leyard, Wuxi Sunallies, and Sankyo Shinmaywa surged to the limit, while Anzhong Sci-tech, Dexin Laser, and others followed the rise.
- NVIDIA's GB200 may use glass substrates; Intel, Samsung, AMD, Apple, and other major companies have previously stated that they will adopt or explore glass substrate packaging technologies for chips.
International Events
- Iran Helicopter Accident:
In the early hours of the 20th, local time, the Iranian Foreign Ministry issued a statement regarding an accident involving a helicopter carrying President Raisi. Despite adverse weather and environmental conditions, rescue teams are actively searching.
