Market Insights: May 29th, 2024

Company Updates:

• Lenovo Group Partners with Saudi PIF:

Lenovo Group has announced a strategic partnership with Alat Enat, a subsidiary of the Public Investment Fund (PIF) of Saudi Arabia. Alat Enat will provide Lenovo with a $2 billion interest-free convertible bond investment. Lenovo plans to establish its Middle East and Africa market headquarters in Riyadh and build new personal computer and server manufacturing bases in Saudi Arabia.

• China Evergrande Latest Reinstatement Progress:

1. Although the liquidators have obtained a small amount of value from the company's assets, the company's liquidity and other internal resources remain limited.
2. The liquidators have not yet found a restructuring plan that meets the conditions for reinstatement.
3. Evergrande shares will be suspended from trading starting January 29, 2024, and will remain suspended.

• Goldman Sachs Upgrades HBM Market Forecast:

1. Goldman Sachs expects the global high-bandwidth memory chip (HBM) market to reach $30 billion by 2026, an increase of more than 30% from previous forecasts.
2. SK Hynix will continue to dominate the HBM3 and HBM3E markets over the next 2-3 years, maintaining a market share of over 50%.

Market Trends:

• Increase in Commodity Prices:

1. Prices of crude oil and metals have risen across the board. U.S. oil surged more than 3% during the session, and Brent oil rose for two consecutive days to reach its highest point this month.
2. New York gold futures closed higher for the first time in five days, while London aluminum rose more than 2% to a nearly two-year high. London copper, tin, and lead ended a four-day losing streak, rising nearly 2%.

• China Market Fluctuations:

1. A-shares and Hong Kong stocks fluctuated and fell throughout the day, with the Shenzhen Component Index falling more than 1%. However, the power and semiconductor sectors rose against the trend.
2. Chinese concept stocks halted a five-day losing streak, with XPeng Motors rising nearly 3%, while Pinduoduo fell nearly 5%.
3. Offshore RMB fell below 7.26 during the session, hitting a new low for the month.

• Volatility in U.S. Stock Market:

1. After the holiday, U.S. stocks rose initially and then fell. The Nasdaq index historically broke above 17,000 points. The Dow Jones Industrial Average fell nearly 300 points at one point, and the S&P 500 index closed nearly flat.
2. Chip giant Nvidia surged nearly 7%, with a total market value of $2.8 trillion, increasing by nearly $190 billion overnight.
3. The Nasdaq closed at 17019.88 points, a record high; the Dow closed at 38852.86 points, down 0.55%; and the S&P 500 index rose slightly by 0.02% to close at 5306.04 points.

Economic Forecast:

• IMF Raises China Economic Growth Forecast:

The International Monetary Fund (IMF) announced in Beijing that it has raised its forecast for China's economic growth this year by 0.4 percentage points to 5%.

Industry News:

• A-Share Opening Performance:

1. The Shanghai Composite Index opened 0.05% lower, the Shenzhen Component Index opened down 0.04%, and the ChiNext Index rose 0.12%.
2. Satellite navigation concept stocks surged, with Shaanxi Huarong and Shanghai Hugong hitting the daily limit. Tianyin Electromechanical, Aerospace Huanyu, Zhenlei Technology, and China Satcom also opened higher.
3. Virtual power plant concept stocks fell, with New Zhonggang hitting the daily limit. Canaan Technology, Jiuzhou Group, Zhongzhi Technology, Guoneng Rixin, and Shuangjie Electric followed suit.

• Digital Currency Concept Stocks:

Digital currency concept stocks performed strongly in the morning session, with Chutian Dragon nearing the daily limit, and Chuangshi Technology and Desun Technology rising.