**Financial Calendar** 09:20 China's Medium-term Lending Facility (MLF) for September 10:00 The State Council's Taiwan Affairs Office holds a press conference 10:00 The State Council Information Office holds a series of themed press conferences on "Promoting High-Quality Development" (Ministry of Ecology and Environment) 10:00 The National Development and Reform Commission holds a special press conference: Introducing the progress and typical practices of the consumer goods replacement action 10:00 The National Fire and Rescue Bureau holds a press conference on the national fire safety situation from January to August this year 15:00 The State Council Information Office holds a series of themed press conferences on "Promoting High-Quality Development" (National Cultural Heritage Administration) 22:30 U.S. EIA Crude Oil Inventories for the week ending September 20 **Local time Tuesday, the three major U.S. stock indices closed higher, with the Dow Jones up 0.20%, the Nasdaq up 0.56%, and the S&P 500 up 0.25%.

Chinese concept stocks were widely higher, with the NASDAQ Golden Dragon China Index up over 9%, marking the largest single-day increase since 2022.

Bilibili rose over 17%, Tencent Music rose over 16%, iQIYI rose over 14%, JD.com rose over 13%, XPeng Motors, Weibo, NIO, Li Auto, and Pinduoduo all rose over 11%, while Alibaba and Baidu rose over 7%.

Most popular tech stocks rose, with NVIDIA up nearly 4%, and Tesla and Intel up over 1%.

The U.S. Consumer Confidence Index for September fell to 98.7 points, the largest decline since August 2021.

In August, the index was at 105.6 points, significantly below economists' expectations.

** **The China Securities Regulatory Commission (CSRC) issued the "Opinions on Deepening the Reform of the Mergers and Acquisitions (M&A) and Restructuring Market of Listed Companies."

It proposed:** - Encouraging listed companies to strengthen industrial integration.

While the capital market supports the development of emerging industries, it will continue to help traditional industries to reasonably increase industrial concentration and improve resource allocation efficiency through restructuring.

For integration needs among listed companies, support will be provided by improving the lock-up period regulations and significantly simplifying the review process.

At the same time, arrangements such as "reverse linkage" of lock-up periods will be made to encourage private equity funds to actively participate in M&A and restructuring.

- Encouraging listed companies to comprehensively use shares, targeted convertible bonds, cash, and other payment tools to implement M&A and restructuring, increasing transaction flexibility.

Establish a phased payment mechanism for restructuring shares, pilot a shelf issuance system for supporting fund-raising, and establish a simplified review process for M&A and restructuring between listed companies, as well as for high-quality companies with a market value of more than 10 billion yuan and a continuous two-year A-level information disclosure quality evaluation when issuing shares to purchase assets (not constituting a significant asset restructuring), streamlining the review process and shortening the review and registration time.

Make good use of "small and fast" and other review mechanisms, implement a "green channel" for M&A and restructuring of technology enterprises that have broken through key core technologies, and speed up the review process to improve the convenience of M&A.

**The CSRC is soliciting public opinion on the "Decision on Amending the Measures for the Administration of Major Asset Restructuring of Listed Companies (Draft for Comments)."

It mentions:** - Promoting the implementation of phased payment for restructuring shares.

To meet the needs of listed companies to flexibly adjust the share payment arrangements in combination with the subsequent operating conditions of the target, a phased payment mechanism for restructuring shares will be established, extending the validity period of the approval for a one-time registration and phased issuance of shares to purchase asset transactions to 48 months.

- Encouraging private equity funds to participate in the M&A and restructuring of listed companies.

To better cultivate patient capital and promote a virtuous cycle of "raising, investing, managing, and exiting," a "reverse linkage" will be implemented between the investment period of private equity funds and the lock-up period of the shares obtained from the restructuring.

For private equity funds with an investment period of 5 years, the lock-up period in third-party transactions will be shortened from 12 months to 6 months, and the lock-up period for small and medium shareholders in restructuring listings will be shortened from 24 months to 12 months.

**Both the Shanghai and Shenzhen Stock Exchanges are soliciting public opinion on the revision of the "Rules for the Review of Major Asset Restructuring of Listed Companies," clarifying that two types of transactions for major asset restructuring of listed companies can apply for a simplified review process, while setting a negative list for the simplified review process and stipulating related mechanisms.

The Shanghai and Shenzhen Stock Exchanges stated that this move aims to implement the CSRC's "Opinions on Deepening the Reform of the Mergers and Acquisitions (M&A) and Restructuring Market of Listed Companies," further optimize the restructuring review process, improve the efficiency of restructuring reviews, and invigorate the M&A and restructuring market.

** **The CSRC is soliciting public opinion on the "Guidance for Listed Companies No.

10 - Market Value Management (Draft for Comments).

"** - The "Guidance" clarifies that companies included in the main stock indices should provide special explanations on the implementation of the market value management system during the annual performance briefing.

Short-term consecutive or significant declines in stock prices refer to ① a cumulative decline of 20% in the closing prices of listed company stocks within 20 consecutive trading days; ② the closing price of listed company stocks is below 50% of the highest closing price in the past year.

- Articles 8 and 9 of the "Guidance" make special requirements for companies included in the main stock indices and companies with long-term net losses.

First, companies included in the main stock indices should formulate and publicly disclose a market value management system, clarify specific responsibilities, internal assessment, etc., and provide special explanations on the implementation of the system during the annual performance briefing.

Other listed companies may refer to this for implementation.

Second, companies with long-term net losses should disclose a valuation enhancement plan, including goals, deadlines, and specific measures, and provide special explanations on the implementation of the valuation enhancement plan during the annual performance briefing.

**Deputy Minister of Human Resources and Social Security Li Zhong stated at a press conference held by the State Council Information Office that on September 13, the 11th session of the 14th National People's Congress Standing Committee reviewed and passed the "Decision on Implementing a Gradual Delay in the Legal Retirement Age," which clarified the goals, principles, main tasks, and safeguard measures of the reform.

On September 19, the State Council held a video conference on the mobilization and deployment of the work to implement a gradual delay in the legal retirement age, fully deploying all work.

The Ministry of Human Resources and Social Security will urgently formulate and improve supporting policies and measures.

Based on the opinions and suggestions from all sides, we have carefully sorted out the supporting policies and measures that need to be formulated, such as policies on promoting employment, protecting workers' rights and interests, and the retirement of employees in high-altitude areas.

We will work with relevant departments to accelerate the formulation and introduction of relevant policies and support measures.

At the same time, implement the principles of voluntariness and flexibility, formulate specific methods for flexible retirement, and further clarify how to handle flexible retirement.

** **The General Office of the State Financial Regulatory Administration issued a notice on expanding the scope of equity investment pilot for financial asset investment companies, proposing to expand the scope of equity investment pilots for financial asset investment companies from Shanghai to 18 cities including Beijing, Tianjin, Shanghai, Chongqing, Nanjing, Hangzhou, Hefei, Jinan, Wuhan, Changsha, Guangzhou, Chengdu, Xi'an, Ningbo, Xiamen, Qingdao, Shenzhen, and Suzhou.

** **The State Financial Regulatory Administration issued a notice on "Doing a Good Job in Re-lending to Improve the Financial Service Level of Small and Micro Enterprises."

The notice proposes that banking financial institutions should optimize the loan service model based on the characteristics of production and operation, risk status, and repayment ability of small and micro enterprises, reasonably set the loan term, enrich the repayment and interest payment methods, and expand the coverage of credit funds.

Continue to develop re-lending products, improve the functions of re-lending products, and establish and improve relevant management mechanisms.

Loan products that can be renewed include working capital loans for small and micro enterprises and loans for small and micro enterprise owners, individual industrial and commercial households, and farmers' operational loans.

Increase the support for re-lending.

For debtors who still have financing needs after the loan expires and temporarily have financial difficulties, before the loan expires, they can apply proactively.

Banking financial institutions can carry out loan investigation and evaluation in advance according to market-oriented and rule-of-law principles, and handle re-lending after passing the review.

For medium-sized enterprise working capital loans that expire before September 30, 2027, banking financial institutions can provide re-lending support according to the relevant requirements of small and micro enterprise re-lending based on their own risk control level and credit management system.

** **According to Xinhua News Agency, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued opinions on strengthening the protection of arable land, improving the quality of arable land, and improving the balance of compensation.

It is proposed to strengthen the protection of arable land, improve the quality of arable land, and improve the balance of compensation.

It is necessary to adhere to theQingdao Doublestar: Plans to Issue Shares and Pay Cash to Purchase Assets and Raise Matching Funds to Control Kumho Tires Qingdao Doublestar announced plans to issue shares and pay cash to purchase assets and raise matching funds, ultimately aiming to indirectly hold 45% of Kumho Tires' shares and gain control.

The company intends to issue shares to Doublestar Group, Urban Investment Venture Capital, and Guoxin Capital, and through its wholly-owned subsidiary, pay cash to Doublestar Investment and Guoxin Venture Capital to purchase all property shares of Xingtou Fund and 0.0285% of the equity held by Doublestar Group in Xingwei International.

The company also plans to issue shares to no more than 35 specific investors, including Doublestar Group, through a book-building method to raise matching funds, with a total amount not exceeding 800 million yuan.

After the transaction, the controlling shareholder of the company will remain Doublestar Group, and the actual controller will continue to be the Qingdao Municipal State-owned Assets Supervision and Administration Commission.

Silingjie: Plans to Issue Shares and Pay Cash to Acquire 71% of Kekai Electronics Shares, Resumption of Trading Silingjie announced that the company plans to issue shares and pay cash to acquire 71% of the shares of Qingdao Kekai Electronics Research Institute Co., Ltd. from Wang Jianhui, Wang Jiangang, Wang Xin, Wang Ke, and 23 other transaction counterparts, and raise matching funds.

The company's shares will resume trading on September 25, 2024.

The transaction is subject to multiple conditions, including the convening of another board of directors meeting, a shareholders' meeting to review and pass the formal plan of the transaction, approval by the Shanghai Stock Exchange, and registration by the China Securities Regulatory Commission.

Hefei Urban Construction: Planning to Issue Shares to Purchase 100% Equity of Transaction Group Held by Xingtai Group Hefei Urban Construction announced that the company plans to issue shares to purchase 100% of the equity of Anhui Public Resources Transaction Group Co., Ltd. held by the controlling shareholder Xingtai Group.

As of now, the audit and evaluation work for this transaction have not been completed, and the valuation and pricing of the target assets have not been determined.

The transaction is not expected to constitute a significant asset restructuring.

The target company is deeply involved in the transaction service field, with main businesses including bidding agency services, bidding value-added services, property rights transaction services, etc., located upstream of the listed company's industry.

After the transaction, the Transaction Group will become a wholly-owned subsidiary of the company, and the company's main business will extend upstream to the transaction service field.

The company's shares will resume trading on September 25, 2024.

Datang Telecom: Significant Short-term Price Increase Poses Risk of Subsequent Decline Datang Telecom issued a stock trading risk warning announcement, stating that the company's stock price has hit the daily limit for six consecutive trading days from September 13 to 24, 2024, resulting in a significant short-term increase and the risk of a subsequent decline.

The company's operating income in the first half of 2024 decreased by 33.25% compared to the same period last year, and the net profit attributable to shareholders of the listed company was -61.817 million yuan.

Ping An Securities: The press conference held by the State Council Information Office on the 24th is expected to bring more liquidity support to the market.

The policy combination of deepening reforms in the capital market is also expected to help the high-quality development of securities and insurance businesses, which is beneficial for the repair of the non-bank sector's fundamentals and investment sentiment.

(1) In terms of the securities sector, the introduction of a series of monetary policy tools is expected to support the abundance of liquidity and active market trading sentiment in the capital market.

At the same time, the deepening of reforms in the investment and asset sides of the capital market is beneficial for the healthy development of the securities industry in the long run.

Policies such as the six measures for active mergers and acquisitions are also expected to bring new opportunities for investment banking and other businesses, which is beneficial for the repair of the fundamentals of securities companies.

The current valuation and holdings of the securities sector are at historical lows, with high cost-effectiveness and safety margins.

(2) In terms of the insurance sector, the optimization of real estate policies such as the reduction of existing mortgage interest rates, as well as the advancement of insurance funds' long-term investment reforms and the improvement of risk preferences in the capital market, are all beneficial for the repair of the asset side of insurance companies.

Since the beginning of this year, the liability side of listed insurance companies has improved well, and the valuation and holdings of the insurance sector are still at the bottom, with a good long-term configuration value.

Zhongyuan Securities: With the strengthening of domestic macroeconomic regulation expectations and the continuous implementation of stable growth policies, the market is expected to stabilize and rebound.

The overall trend of stock indices is expected to maintain a pattern of fluctuating upward, while it is still necessary to closely monitor changes in policy, capital, and external factors.

Investors are advised to focus on investment opportunities in the securities, insurance, internet services, and semiconductor industries in the short term.

Hua Chuang Securities: The combination of reserve requirement ratio cuts, interest rate cuts, and the adjustment of existing mortgage interest rates has exceeded expectations in terms of policy strength and rhythm.

At the same time, the expectations for related re-lending and the 16 financial policies will also provide a guarantee for the stability of bank asset quality.

The reduction of existing mortgage loan interest rates will impact bank profits in the short term, but since September, the bank index has already fully reflected the policy expectations of this round.

Looking ahead, the overall impact on the sector's fundamentals is neutral.

Considering that the mid-term dividend has been effectively implemented, the current sector dividend strategy logic remains unchanged.

If this round of policies can effectively promote the recovery of real estate and consumption, the space and opportunities for pro-cyclical strategies are optimistic.