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**Financial Calendar**

China's May CPI and PPI;

U.S. May CPI.

On June 11th (Tuesday), local time, the three major U.S. stock indices showed mixed performances. The S&P 500 and the Nasdaq Composite opened low but climbed throughout the day, setting a new closing high for the third time in five trading days, driven by a significant increase in Apple's stock price. On the other hand, the auction of $39 billion in 10-year U.S. Treasury notes on Tuesday showed decent demand, and the retreat of bond yields was also considered to have boosted market sentiment.

As of the close, the Dow Jones Industrial Average fell 120.62 points, or 0.31%, to 38,747.42; the Nasdaq Composite gained 151.02 points, or 0.88%, to 17,343.55; the S&P 500 rose 14.53 points, or 0.27%, to 5,375.32.

Apple's stock price increased by 7.26% to $207.15, with a market capitalization reaching a high of $3.18 trillion, just behind Microsoft's market capitalization of $3.22 trillion. Apple's 2024 Worldwide Developers Conference (WWDC24) kicked off on June 10th, local time. In the keynote speech, Apple announced the new generation of operating systems for its major product lines.

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In the commodity market, oil prices continued their rebound trend. The July WTI crude oil futures rose by 16 cents, closing at $77.90 per barrel, a gain of 0.21%. The U.S. Energy Information Administration (EIA) released the June 2024 Short-Term Energy Outlook (STEO) on Tuesday, raising the global crude oil demand growth forecast for 2024 by 180,000 barrels per day to 1.1 million barrels per day.

Regarding the global oil production outlook, the EIA believes that OPEC+ will essentially adhere to the production targets announced earlier this month. Although OPEC+ has extended the production cut agreement, the EIA stated, "It is expected that OPEC+'s crude oil production will follow these new targets until 2025."

**Central Comprehensive Deepening Reform Commission held its fifth meeting, reviewing and passing documents such as "Opinions on Improving the Modern Enterprise System with Chinese Characteristics," "Guiding Opinions on Improving the Mechanism for Ensuring the Income of Grain Farmers and the Compensation Mechanism for the Benefits of Major Grain-Producing Areas," and "Several Opinions on Building an Open Environment for Scientific and Technological Innovation with Global Competitiveness."**

**The Ministry of Commerce and eight other departments issued opinions on expanding cross-border e-commerce exports and promoting the construction of overseas warehouses, proposing to strongly support cross-border e-commerce in empowering industrial development. They guide localities to rely on comprehensive pilot zones for cross-border e-commerce, cross-border e-commerce industrial parks, advantageous industrial clusters, and foreign trade transformation and upgrading bases, to cultivate models for the development of "cross-border e-commerce empowering industrial belts." Encourage qualified localities to focus on local industries, build industrial belt display and selection centers, cooperate with cross-border e-commerce platforms, and establish "online special zones" for industrial belts. Support the introduction of new technologies such as digital humans in accordance with laws and regulations, expand sales channels through live broadcasting on the network, and drive more superior products for export. Encourage localities to support the development of traditional foreign trade enterprises with cross-border e-commerce based on their unique advantages, and establish a marketing service system that integrates online and offline, and domestic and foreign linkages.****Hainan Daily News, reporters visited and consulted multiple commercial banks to learn that in order to implement the requirement of Hainan Province to cancel the lower limit of commercial personal housing loan interest rates for the first and second sets of housing on May 24th, many banks in the province have reduced personal housing loan interest rates starting from June 11th. A staff member from the Haikou Yehai Branch of Bank of China told reporters that the bank currently implements the lowest interest rate for the first set of housing loans as LPR minus 30 basis points, and the lowest interest rate for the second set of housing loans as LPR, which are 10 basis points and 20 basis points lower than before, respectively. The Hainan Branch of China Construction Bank, the Hainan Branch of Bank of Communications, the Haikou Branch of Ping An Bank, the Haikou Branch of Industrial Bank, the Haikou Branch of Everbright Bank, and other banks have also stated that they have already reduced mortgage loan interest rates. At present, the reduction of mortgage loan interest rates by banks in Hainan Province is an independent action of the banks. According to the reporter's understanding, among the personal housing loan interest rates implemented by many banks in Hainan, the lowest interest rate for the first set of housing is 3.65%, and the lowest interest rate for the second set of housing is 3.95%.**

**According to the Jiangsu Provincial Department of Agriculture and Rural Affairs, the department recently issued the "Jiangsu Province Pig Production Capacity Regulation Implementation Plan (Revised in 2024)", clarifying that the province's production capacity regulation target tasks remain unchanged, appropriately relaxing the production capacity regulation range, and further optimizing pig production capacity regulation measures. According to the "Plan", the normal retention of breeding sows in Jiangsu Province is about 1.2 million heads, and the retention of large-scale pig farms is more than 5,000. In accordance with the requirements of pig production capacity regulation, the monthly inventory of breeding sows is divided into green, yellow, and red three areas, and corresponding regulatory measures are taken. The green area has a monthly inventory of breeding sows within the normal retention range of 92%-105%, the yellow area has a monthly inventory of breeding sows within the normal retention range of 85%-92% or 105%-110%, and the red area has a monthly inventory of breeding sows below 85% of the normal retention or above 110% of the normal retention.**

**Data from the Passenger Car Association shows that in May, the retail sales of new energy vehicles in the market were 804,000 units, a year-on-year increase of 38.5%, and a month-on-month increase of 18.7%. In May, the export of new energy vehicles was 94,000 units, a year-on-year decrease of 4.0%, and a month-on-month decrease of 18.8%.**

**Recently, the China Mobile Procurement and Bidding Network showed that Huawei Technologies Co., Ltd., ZTE Corporation, and Galaxy Aerospace (Xi'an) Technology Co., Ltd. won the bid for its experimental satellite trial manufacturing project.**

**The OPEC monthly report shows that the global economic growth forecast for 2024 is maintained at 2.8%; the global economic growth forecast for 2025 is maintained at 2.9%.**

**Kweichow Moutai: The cash dividend per A-share is 30.876 yuan.**

**Kweichow Moutai announced that the company's 2023 annual equity distribution plan has been approved by the shareholders' meeting. The cash dividend per A-share is 30.876 yuan (including tax), the equity registration date is June 18, 2024, and the ex-dividend (interest) date and cash dividend payment date are June 19, 2024. This profit distribution is based on the company's total share capital of 1.256 billion shares, with a total cash dividend of 38.79 billion yuan. Individual shareholders and securities investment funds holding shares for more than one year are temporarily exempt from personal income tax on dividend income.**

**Evergrande Automobile: The relevant local administrative department requires the return of various rewards and subsidies totaling about 1.9 billion yuan.**

**Evergrande Automobile announced on the Hong Kong Stock Exchange that it recently received an administrative decision letter from the relevant local administrative department, which mainly includes the dissolution of three related agreements; the relevant subsidiary company is required to return the various rewards and subsidies totaling about 1.9 billion yuan to the relevant local administrative department within 15 days from the date of receipt of the administrative decision letter. If the above decision is finally executed, it will lead to the risk of the group's related factory land being forcibly reclaimed, and the buildings and equipment on the ground being used to repay the rewards and subsidies, which will have a significant impact on the financial situation and operations of the company or its relevant subsidiaries.**

**In addition, the company's subsidiary, Evergrande New Energy Automobile (Tianjin) Co., Ltd., recently received a notification letter from another relevant department. After the department inspected the maintenance of the new energy passenger car product production access conditions of Tianjin Evergrande, it proposed three issues that need to be rectified and intends to order Tianjin Evergrande to stop producing and selling new energy passenger car products and to carry out rectification.**Jian Che B: Market Value Has Been Below 300 Million Yuan for 17 Consecutive Trading Days, Risk of Delisting

Jian Che B issued the ninth risk warning announcement regarding the potential delisting of its stock. According to Article 9.2.1, Paragraph 1, Item (7) of the "Shenzhen Stock Exchange Stock Listing Rules," a company listed on the Shenzhen Stock Exchange that only issues B shares will have its stock delisted if the closing market value of its shares is below 300 million yuan for twenty consecutive trading days. Based on the exchange rate of 100 Hong Kong dollars to 91.037 yuan announced by the State Administration of Foreign Exchange on the last trading day of the previous week, June 7, 2024, and the Shenzhen Composite Index, the closing market value of the company's stock on June 11, 2024, was 183 million yuan. It has been 17 consecutive trading days with a daily closing market value below 300 million yuan, and there is a risk that the company's stock may be delisted due to a market value below 300 million yuan.

Lite Optoelectronics: Net Profit for the First Half of the Year Expected to Increase by 85.32% to 136.8%

Lite Optoelectronics released a performance forecast, estimating that the net profit attributable to the parent company for the first half of 2024 will be between 81.0647 million yuan and 104 million yuan, a year-on-year increase of 85.32% to 136.80%. The main reason for the change in performance this period is the continuous growth in downstream market demand for OLEDs, leading to a significant year-on-year increase in the company's OLED terminal materials revenue.

Shanghai Silicon Industry: Plans to Invest 13.2 Billion Yuan in the Upgrade Project of 300mm Silicon Wafer Capacity for Integrated Circuits

Shanghai Silicon Industry announced plans to invest in the upgrade project of 300mm silicon wafer capacity for integrated circuits. Upon completion of the project, the company's 300mm silicon wafer capacity will increase by 600,000 wafers per month on the existing basis, reaching 1.2 million wafers per month. The estimated total investment for this project is 13.2 billion yuan, which will be used for land acquisition, construction of factory buildings and supporting facilities, and equipment purchase and installation.

Xue Rong Biology: Chairman Yang Yongping Has Been Detained

Xue Rong Biology announced that on June 11, 2024, the company received a written "Detention Notice" and "Case Filing Notice" issued by the Yongdeng County Supervision Committee. The controlling shareholder, legal representative, chairman, and general manager of the company, Yang Yongping, has been placed under detention measures.

Seres: Seres Automobile Plans to Acquire the Remaining 55% Equity of Seres Electric for 1.254 Billion Yuan

Seres announced that on June 11, 2024, the company held the twelfth meeting of the fifth board of directors, which reviewed and passed the "Motion Regarding Chongqing Seres Electric Vehicle Co., Ltd." The controlling subsidiary, Seres Automobile, plans to acquire the remaining 55% equity of Seres Electric held by Jingyun Chuangfu and Sai Xin Fund as agreed in the contract, with the corresponding acquisition price being approximately 1.254 billion yuan.Meituan: Repurchase of up to $2 billion worth of Class B Ordinary Shares in the open market

Meituan announced in a Hong Kong Stock Exchange filing that the company's board of directors declared, in accordance with the share repurchase authorization passed at the shareholders' meeting on June 30, 2023, to repurchase up to $2 billion worth of the company's Class B ordinary shares in the open market from time to time.

Guosheng Securities: The recent release of the implementation details of the program trading management and the statement that the number of delisted companies will not significantly increase in the short term reflect the regulatory authorities' rapid response to investor concerns. This effectively alleviates the market's panic sentiment regarding some small-cap stocks. The recovery of market sentiment may drive the profit effect into a recovery period, further promoting the high-quality development of the capital market. Foreign capital has recently taken a positive view of the Chinese market, and global capital may enter a phase of high-low switching, with Chinese core assets being relatively cost-effective for allocation. In terms of allocation, focus on growth-oriented sectors with relatively low valuations, such as new energy, pharmaceuticals, and the white goods sector where the business climate is improving.

Galaxy Securities: As the policy of trading in old for new gradually takes effect, the domestic demand for home appliances is expected to be supported. Coupled with the gradual reduction of overseas inventory, the improving export situation is expected to continue, and the prosperity of the home appliance industry is expected to continue to recover. The current sector valuation still has a safety margin.

CITIC Securities: The State Council's focus on the impact of the real estate sector on economic operations and financial stability, actively preparing new inventory reduction and market stabilization policies, and the existing inventory collection and housing delivery guarantee also have a positive effect on the quality of bank assets. The continuous introduction of real estate financial policies will significantly improve the expectations of bank real estate debt risks and consolidate the foundation for the improvement of bank valuations.