Market Insights: May 9th, 2024

Commodity Market Changes:

• Crude Oil Price Fluctuations: Crude oil turned positive after hitting a new low of over eight weeks during the session, with U.S. crude rising more than 3% at one point.
• Metal Market Changes: Gold fell for two consecutive days. London zinc prices fell nearly 2%, ending a 13-month high performance streak, while London copper prices dropped below $10,000, ending a two-consecutive rise trend.

China Market Dynamics:

• Performance of Chinese Concept Stocks: During the U.S. stock trading session, the index of Chinese concept stocks fell for three consecutive days, with XPeng Motors dropping more than 6%, NIO falling more than 5%, but Xiaomi rising 7%.
• RMB Exchange Rate Changes: The offshore RMB exchange rate fell slightly below 7.23 during the session.
• AH Shares Performance: AH shares generally fell, influenced by the depreciation of the RMB, but coal stocks rose against the trend, with Xiaomi's increase exceeding 6%.

Global Monetary Policy and Market Impact:

• Trend of the US Dollar against the Japanese Yen: The U.S. dollar index strengthened for three consecutive days, causing the Japanese yen to depreciate to a one-week low against the dollar in the early Asian forex market.
• Expectations of BOJ Adjusting Monetary Policy: The Governor of the Bank of Japan warned that the rapid and unilateral depreciation of the yen is detrimental to the Japanese economy, and monetary policy measures may need to be taken to offset market fluctuations. This has triggered market expectations that the Bank of Japan may raise interest rates in June.

US-China Relations and the Tech Industry Dynamics:

• US-China Semiconductor Tensions: The U.S. Department of Commerce revoked export licenses for supplying chips to Chinese telecom equipment manufacturer Huawei, primarily targeting Huawei's laptops and smartphones.
• TikTok Sues the US Government: TikTok and its parent company ByteDance have filed a lawsuit against the US government, challenging President Joe Biden's TikTok "ban or sell" act as unconstitutional and asking the court to overturn it.

Domestic Economic Trends:

• A-share Real Estate and SOE Profitability: In the first quarter, net profits of 103 A-share real estate companies fell 95% year-on-year, while combined profits of Chinese SOEs fell 68% year-on-year to 26 billion yuan.
• Private Securities Products, ETF Investment Directions: The number of privately offered securities products registered in April hit a new high for the year. Funds flowed into mid-small cap broad-based ETFs, and the share volume of Hong Kong stock ETFs grew significantly, with institutions focusing on technology innovation in recent research.

Corporate Performance and News:

• Robinhood's First Quarter Performance: Robinhood announced better-than-expected first-quarter earnings, with total revenue and net profit both exceeding analysts' expectations. Robinhood's total revenue was $618 million, higher than the analyst's expectation of $546.8 million; net profit was $157 million, marking the second consecutive quarter of profitability.
• Public Company Legal Issue Announcements: ST Yilianzhong, Puli Pharmaceuticals, Weichuang Shares, ST Huatie, Dongxu Optoelectronic, Dongxu Blue Sky, and other eight listed companies received "Notice of Case Filing" from the China Securities Regulatory Commission, with many being filed for not disclosing annual reports on time.
• Trial and Sentencing of Cai Songzhuo in Criminal Cases: Cai Songzhuo and other public fund managers involved in criminal cases have been tried and sentenced. They were charged with "accepting bribes by non-public officials" and "bribing non-public officials". The court confirmed the case was concluded and delivered the verdict immediately.