A-shares Val. Bottom; 24 Stocks Up on Earn.

What's going on with the Europe Line Consolidated Shipping Futures?

This morning, the overall performance of the A-share market was sluggish, with the securities brokerage sector emerging as the brightest spot during the morning session, with several securities brokerage stocks hitting their upper price limits. The recent frequent mergers and reorganizations among securities firms have further raised investors' expectations for the industry's consolidation and strengthening.

Despite the overall lukewarm market, there have been stocks that have consecutively hit their upper price limits, including one that has done so for 10 consecutive trading days, with the relevant company warning of risks last night.

In the futures market, the Europe Line Consolidated Shipping Futures have plummeted again, with the main futures contract falling nearly 8% at one point during the session, accumulating a drop of over 60% in just two months.

Advertisement

Affected by the typhoon, the Hong Kong Stock Exchange's securities and derivatives markets have suspended trading for the entire day today, including after-hours trading sessions. All securities settlement and delivery services, as well as the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, are also suspended today. The Shanghai Stock Exchange and Shenzhen Stock Exchange have also issued announcements that the Hong Kong Stock Connect and some ETF subscription and redemption services are suspended today.

Encouraged by positive news, the securities brokerage sector surges

This morning, the overall performance of the A-share market was sluggish, with the securities brokerage sector being the most eye-catching.

Market data shows that the securities brokerage sector's intraday increase once reached around 3%, with stocks such as Guohai Securities, Jinlong Shares, and Tianfeng Securities hitting their upper price limits at one point during the session.

One of the leading securities firms, China Galaxy, also touched its upper price limit during the session, and CICC's intraday increase once approached 8%.

In terms of news, there is another major move in the mergers and reorganizations of securities firms, this time involving two large securities firms—Guotai Junan and Haitong Securities.Last evening, both Guotai Junan and Haitong Securities announced that Guotai Junan is planning to merge with Haitong Securities by absorbing it and issuing shares to raise supporting funds. The two companies will be suspended from trading starting from the opening of the market on Friday, September 6th.

It is understood that the specific cooperation plan for this reorganization still needs to be based on the transaction documents to be further signed by both parties. The reorganization still needs to go through the necessary internal decision-making procedures and must be approved by the competent regulatory authorities before it can be officially implemented. There is still uncertainty about whether it can be implemented.

Looking at the annual report data of the two companies for 2023, if Guotai Junan and Haitong Securities merge, the total assets and net assets of the merged entity will reach 1.68 trillion yuan and 330.2 billion yuan, respectively, both surpassing CITIC Securities to rank first in the industry.

Recently, there have been frequent mergers and reorganizations among securities firms, further raising investors' expectations for the industry to merge and grow stronger.

The morning surge in the securities sector has driven the trend of the Securities ETF, with several ETFs such as the Securities ETF Pioneer (516980) and the Securities ETF (512000) seeing intraday gains of over 3% at one point in the morning, before the gains narrowed.

The strength of the securities sector has also driven the trends of other sub-sectors in the broader financial sector.

In the insurance sector, Tianmao Group hit its daily limit up, and China Pacific Insurance's intraday gain approached 4%.

The banking sector's intraday gain exceeded 1%, with Postal Savings Bank of China's intraday gain once exceeding 3%.

Apart from the broader financial sector, sectors such as public transportation, automobiles, trade agency, and tourism also performed well in the morning. Sectors like mineral products, components, and furniture supplies, however, clearly declined in the morning.

Several stocks have consecutively hit their daily limit up, and the related companies have warned of risks.Despite the overall lukewarm market, there have been stocks that have hit their upper trading limit consecutively recently.

Kesong Technology's stock hit its upper limit again this morning, marking the 10th consecutive trading day with a price surge during the session.

Kesong Technology issued a stock trading risk warning announcement last night, stating that the net profit attributable to the shareholders of the listed company for the first half of 2024 was -161 million yuan, indicating a loss-making status. The company anticipates a loss for the fiscal year of 2024, and the current stock price has significantly deviated from the company's fundamentals, presenting a risk of excessive and irrational speculation. Investors are advised to be aware of investment risks and to invest rationally.

Furthermore, the announcement also mentioned that the company has recently been included in the media as a folding screen concept stock. Upon self-inspection, the company's folding screen hinge assembly business has a single customer, and currently, the company assembles hinges for folding screen phones by purchasing structural parts. As of the date of the announcement, no revenue has been generated for the year 2024. The company estimates that the income generated from this business within the year will account for less than 1% of the total revenue for 2024, contributing minimally to the overall revenue for the fiscal year. Additionally, the company has been included in the media as a solid-state battery concept stock, but upon self-inspection, the company does not manufacture solid-state battery products.

The stock of Laobaixing hit its upper limit again this morning, marking the 4th consecutive trading day with a price surge during the session.

Laobaixing issued a stock trading risk warning announcement last night, stating that as of the date of the announcement, there have been no significant changes in the company's main business, production and operation status, and business environment compared to the previously disclosed information, and there are no significant matters that should be disclosed but have not been.

Moreover, Laobaixing also warned of the risks associated with the recent significant increase in the stock price. The announcement stated that the company's stock closed at the upper limit price for three consecutive trading days on September 3, 4, and 5, 2024. The recent increase in stock price is substantial, with the price increase being greater than that of most companies in the pharmaceutical retail industry, and the stock price fluctuation is significant, indicating a risk of market sentiment overheating and the potential for a drop after a large short-term increase. Investors are advised to be aware of the risks, make rational decisions, and invest cautiously.

Laobaixing also issued an announcement regarding the early repayment of part of the raised funds that were temporarily used to supplement liquidity. The announcement stated that the third meeting of the fifth board of directors and the third meeting of the fifth supervisory board reviewed and passed the proposal "On the Use of Some Idle Raised Funds to Temporarily Supplement Liquidity," agreeing to the company's use of 300 million yuan of idle raised funds to temporarily supplement liquidity, with a usage period not exceeding six months from the date of approval by the board of directors.

The announcement stated that, based on the current progress of the fundraising investment projects and the demand for funds, the company repaid 60 million yuan to the special account for raised funds in advance on September 5, 2024. As of the date of the announcement, the amount of raised funds used to temporarily supplement liquidity that has not yet been repaid is 240 million yuan, with the usage period not exceeding six months, and it will be repaid before the deadline. The company will fulfill its information disclosure obligations in a timely manner at that time.

Ocean freight futures for Europe plummet again, with a drop of over 60% in two months.In the futures market, the fluctuation range of most futures varieties is not significant.

However, the futures prices of Europe-bound container shipping have experienced another sharp fluctuation, with the main continuous contract for Europe-bound container shipping futures plummeting nearly 8% at one point during the trading session, with quotes approaching 1,700 points, which is more than a 60% drop from the high two months ago.

CITIC Futures believes that the expectation of spot price declines still dominates sentiment, and the recent decline in cargo volume has led to a faster drop in freight rates. Subsequently, under the condition of insufficient cargo volume, the spot side is still mainly characterized by price declines. Looking at October, the Golden Week suspension of sailing is still fermenting, and in addition to the announced suspensions, there are still many undecided sailings. Attention should be paid to whether the large-scale reduction in shipping capacity in October can lead to a halt in the decline of freight rates.