Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
Chinese automobile stocks soared on higher car sales by leading carmakers;
Nearly 160 Shanghai-traded firms report profit growth in Q3.
Here’s what you need to know about China in the past 24 hours
Chinese automobile stocks rallied on Tuesday on back of remarkable sales in leading manufacturers as well as a raft of policies to support the stable expansion of domestic automobile market.
China's biggest electric car maker BYD jumped by 5 percent by Tuesday’s close with over 700 billion yuan in market value. The company announced on Monday night that third-quarter profit may jump by up to 365 percent, whereas its profit for the first three quarters of the year may grow by 289 percent, due to robust sales and a better product mix. Hong Kong-traded Brilliance Auto surged 15.9 percent by the close, while Geely and GAC rose 4.4 percent and 2 percent respectively.
In the first three quarters of the year, the auto industry showed a recovery momentum, driven by a series of policies to promote consumption and stabilise growth. SAIC Motor and GAC Group reported growth in both production and sales. SAIC sold 517,100 units in September, a monthly record high this year. GAC’s sales soared over 20 percent in the first three quarters compared with the same period last year.
China's passenger car market saw sales of 1.9 million units in September, a year-on-year increase of 21 percent, driven particularly by new-energy vehicles (NEVs), the latest data from the China Passenger Car Association (CPCA) showed.
Meanwhile, China's automobile exports continued their strong momentum in September, cementing the country's newly earned position as the world's second-largest vehicle exporter. Total exports in the first three quarters hit 2.12 million units, up 55.5 percent on a yearly basis, and surpassed the total in 2021, according to data from China Association of Automobile Manufacturers.
It is expected that the country's automobile output and sales would continue robust rebound in the fourth quarter as the economic situation continues to improve, supported by a range of policies targeting economic stability.
Moving on to regional highlights
The world’s largest coal chemical project under construction successfully kicked off a demonstration project with an annual capacity of 1.8 million tons in Yulin, Shaanxi Province, with polyester grade ethylene glycol products rolling off production lines, according to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) on Monday. The project is expected to lower the country’s imports of related products and improve the quality of high-end chemicals.
Greater Bay Area, Greater future
Hong Kong’s Chief Executive John Lee Ka-chiu’s first Policy Address will focus on land and housing shortages, economic stimulation, livelihood improvements, and plans to further bolster the city’s competitiveness. Lee unveiled the focal points before the Executive Council meeting on Tuesday morning, a day before he is scheduled to deliver the much-anticipated Policy Address. Lee also showed the printed version of his first Policy Address, which has a green cover, representing hope, vitality, harmony and stability, he said.
Next on industry and company news
Chinese silicon wafer giant Wuxi Shangji Automation said it has landed standing orders from photovoltaic cell and panel maker DAS Solar and one of its units worth 9.4 billion yuan. DAS Solar and a subsidiary will buy 825 million pieces of ordinary monocrystalline silicon wafers from two Shangji units between January 2023 and December 2024, Shangji said yesterday, citing a contract signed by the four parties. A unit of Shangji will also provide 300 million pieces of N-type monocrystalline silicon wafers to DAS Solar next year, Shangji said in a separate statement the same day.
Chinese supplier of light-emitting diode displays Longli Technology said it will partner with Robert Bosch for the first time to supply the latter with US$421 million of in-vehicle screens in nine years. The Chinese firm will ink a contract to supply the German equipment manufacturer with mini-LED backlight modules for vehicles between 2025 and 2033, the Shenzhen-based company said in a statement on Monday.
隆利科技獲博世4.2億美元訂單：隆利科技10月17日午間公告顯示，公司擬與Robert Bosch GmbH（德國博世集團）簽署合同，公司擬為德國博世提供2025-2033年所需的車載Mini-LED背光顯示模組產品，合同金額約4.21億美元，約折合人民幣30.27億元。
Yunding Technology’s shares jumped by the daily trading limit on Monday after the unit of coal mining giant Shandong Energy Group announced a partnership with Huawei Technologies on smart mining technology. Under the deal signed earlier in the day, Yunding, which specialises in information technology services and industrial smart applications, will be a Huawei authorized dealer and promote the implementation of related cooperation projects in a smart mine tech project between Huawei and its parent company, the firm said Monday.
Chinese marketing service provider Rego Interactive closed 111 percent higher than the offer price of HK$0.64 on its trading debut on Monday, as it raised about HK$100 million from the offering. The company had one of the best IPOs this year, following China Graphite whose share price soared by 143 percent on its trading debut.
Earnings reports express
Of the 165 firms traded on the Shanghai Stock Exchange that disclosed their earnings for the third quarter, 159 of them have reported annual growths. Most companies achieving annual growth in the quarter ended Sept. 30 are in the new energy, automotive, pharmaceutical, and biological industries. Some 129 of them saw their net profit jump over 30 percent, 102 of which more than 50 percent.
Chinese medium and small-sized banks expect steady growth in the third quarter, as Bank of Hangzhou and Bank of Jiangsu both forecast net profit to grow over 30 percent in the period. Bank of Chengdu, Changshu Rural Commercial Bank and Suzhou Rural Commercial Bank have recently disclosed their performance in the first nine months, with net profit of the three banks increased by 36 percent, 25 percent and 21 percent year on year, respectively.
Switching gears to financial news
Nearly 100 companies listed on the Chinese mainland have said that they have plans for share buybacks after the country’s securities regulator said it is mulling making it easier for listed companies to repurchase their own stock. From January to September this year, over 500 listed firms have repurchased more than 100 billion yuan worth of shares.
E Fund Management, China’s largest public fund company, and five other Chinese asset managers set out plans to buy 660 million yuan of their own fund products to boost market confidence. E Fund plans to invest 150 million yuan in its equity funds on Monday, while Southern Asset Management, Universal Asset Management, and GF Fund Management said the same day that they intend to invest 100 million yuan, respectively, to buy their own funds.
Wrapping up with a quick look at the stock market
Chinese stocks closed mixed on Tuesday as the NDRC said China’s GDP “rebounded significantly” last quarter. The benchmark Shanghai Composite finished down 0.13 percent, while the Shenzhen Component added 0.23 percent. Hong Kong stocks advanced for a third day amid signs of better corporate earnings. The Hang Seng climbed 1.82 percent as the Tech Index jumped 4.25 percent.
Biz Word of the Day
Ethylene glycol is an organic compound mainly used as a raw material in the manufacture of polyester fibres and for antifreeze formulations. It is an odorless, colorless, flammable, viscous liquid.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI
Sound Editor: Stephanie LI
Graphic Designer: ZHENG Wenjing, LIAO Yuanni
Produced by 21st Century Business Herald Dept. of Overseas News.
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