Macro News
1. According to the "Executive Order on Modifying Reciprocal Tariff Rates to Reflect the Outcome of Talks with the People's Republic of China" issued by the US White House on May 12, starting from May 14 (Eastern Time), the US will revoke 91% of tariffs on China and adjust 34% of reciprocal tariffs (24% suspended for 90 days, with 10% retained). Meanwhile, the US will also reduce or revoke tariffs imposed on small parcels from China (including those from the Hong Kong Special Administrative Region), lowering the ad valorem tariff rate for international mail from 120% to 54% and revoking the measure scheduled to take effect from June 1, 2025, which would have increased the specific tariff from $100 to $200 per item.
2. According to data from the People's Bank of China, the incremental aggregate financing to the real economy (AFRE) in China from January to April was 16.34 trillion yuan, an increase of 3.61 trillion yuan compared to the same period last year. At the end of April, the balance of broad money (M2) was 325.17 trillion yuan, up 8% YoY. The balance of narrow money (M1) was 109.14 trillion yuan, up 1.5% YoY. The balance of currency in circulation (M0) was 13.14 trillion yuan, up 12% YoY. In the first four months, the net cash injection was 319.3 billion yuan. New RMB loans from January to April amounted to 10.06 trillion yuan. At the end of April, the balance of domestic and foreign currency loans was 269.54 trillion yuan, up 6.8% YoY. The balance of RMB loans at the end of the month was 265.7 trillion yuan, up 7.2% YoY.
3. Yesterday, Foreign Ministry spokesperson Lin Jian stated that the US, using fentanyl as a pretext, unreasonably imposed two rounds of tariffs on China. In response, China promptly took countermeasures, including tariff and non-tariff measures, to firmly safeguard its legitimate rights and interests, and these countermeasures remain in effect.
4. A spokesperson for the Ministry of Commerce responded to inquiries from reporters regarding the work to strengthen the whole-chain management and control of strategic mineral exports. The Ministry of Commerce stated that effective management and control of strategic minerals require addressing the issue from the source, strengthening the whole-chain management and control of mining, smelting, processing, transportation, manufacturing, sales, and exports to effectively prevent the illegal outflow of strategic minerals.
5. On May 14, Zheng Shanjie, Director of the National Development and Reform Commission (NDRC), chaired a symposium with private enterprises, focusing on gathering opinions and suggestions regarding the current economic situation and the implementation of policies to stabilize employment and the economy. At the meeting, the heads of participating enterprises not only introduced the development of their enterprises and industries but also put forward suggestions for promoting the high-quality development of private enterprises under the new situation.
6. The second meeting of the China-EU Financial Working Group was held in Brussels, Belgium, from May 13 to 14. The meeting conducted in-depth exchanges on issues such as global economic uncertainties, the respective macroeconomic and financial stability situations of China and the EU, banking and insurance sector supervision, and the development of pension funds and leasing companies. Constructive discussions were also held on cooperation in emerging areas such as sustainable finance, cross-border data flows, and the construction of cross-border payment systems.
7. The Agreement between the Government of the People's Republic of China and the Government of the Republic of Uzbekistan on Mutual Visa Exemption will come into force on June 1, 2025. According to the agreement, holders of valid Chinese diplomatic, service, and ordinary passports, as well as holders of ordinary Uzbekistani passports, are exempt from visa requirements when entering, exiting, or transiting through the territory of the other Contracting Party, provided that their single stay does not exceed 30 days and their cumulative stay within any 180-day period does not exceed 90 days.
8. When responding to reporters' questions about the suspension of measures related to the Unreliable Entity List for 17 US entities, the spokesperson for the Ministry of Commerce stated that, in accordance with the relevant provisions of the Regulations on the Unreliable Entity List, domestic enterprises may apply to conduct transactions with the aforementioned entities, and the working mechanism for the Unreliable Entity List will conduct reviews in accordance with the law and approve eligible applications. The Ministry of Commerce also stated that previously, 28 US entities had been included in the export control management list, and the export of dual-use items to these entities had been prohibited. To implement the consensus reached during the high-level economic and trade talks between China and the US, it was decided to suspend the aforementioned relevant measures for 90 days starting from May 14, 2025.
Industry News
1. Bai Qingyuan, Deputy Director of the State Administration for Market Regulation, chaired a symposium on platform enterprises supporting the development of self-employed businesses. The meeting pointed out that platform enterprises, as an important part of the private economy, can provide broad opportunities for the development of self-employed businesses and offer support in various aspects such as digital empowerment, traffic assistance, and market expansion. Platform enterprises are encouraged to introduce more practical measures to support the development of self-employed businesses based on their own characteristics.
2. Seven departments, including the Ministry of Science and Technology, issued the "Several Policy Measures to Accelerate the Construction of a Science and Technology Financial System to Strongly Support High-Level Scientific and Technological Self-Reliance and Strength," establishing the "National Venture Capital Guidance Fund." Among the measures proposed are conducting pilot programs for M&A loans for technology enterprises in selected commercial banks and pilot cities, increasing the loan-to-value ratio for M&A transactions to 80% and extending the loan term to 10 years; further enhancing the capital market's support for technological innovation enterprises; and establishing a "Science and Technology Board" in the bond market, incorporating high-quality enterprise science and technology innovation bonds into benchmark market-making categories.
3. Tencent issued a company-wide letter regarding adjustments to the WXG Business Group. The main contents include: establishing an E-commerce Products Department responsible for exploring transaction models within WeChat, accelerating the development of transaction infrastructure and the transaction ecosystem, and operating new WeChat transaction models; renaming the Open Platform Infrastructure Department to the Open Platform Department, responsible for the planning, R&D, and operation of WeChat official accounts and Mini Program products.
4. After three years of bottoming-out adjustments, China's dairy farming industry has entered a period of accelerated transformation. Financial reports recently released by several listed raw milk companies show that in 2024, China's raw milk production reached 40.79 million mt, marking the first decline since 2018, and the pace of capacity exit in dairy farms has significantly accelerated. Industry analysts believe that the turning point of this round of deep adjustment in the dairy industry may occur in H2.
5. Given that US importers will enter a clear window of significantly reduced import costs in the next three months, Goldman Sachs analysts stated that China's exports will surge in the next 90 days. As negotiators from both sides strive to achieve further progress in consultations, companies will compete to increase inventory reserves, especially as US importers may initiate another round of purchasing frenzy.
6. According to multiple media reports, Apple has issued a price adjustment notice to channel partners, with the iPhone 16 Pro and iPhone 16 Pro Max in all storage versions seeing price reductions of over 1,000 yuan. Recently, the promotional information released by the official Apple Store flagship store on Tmall shows that starting at 20:00 on May 16, the iPhone 16 Pro 128GB, after applying national subsidies and various discounts, will be available for 5,499 yuan, a reduction of 2,500 yuan from the original price of 7,999 yuan.
7. Ma Huateng, CEO of Tencent, stated that in Q1 this year, Tencent's AI capabilities have made substantial contributions to businesses such as performance advertising and evergreen games, and have also increased investment in new AI opportunities such as Yuanbao applications and AI within WeChat. These strategic AI investments will create value for users and society, and generate long-term, significant incremental returns for us.
Company News
1. Vanke A announced that Shenzhen Metro Group plans to provide the company with a loan of up to 1.552 billion yuan.
2. Kweichow Moutai announced that due to the number of registered attendees exceeding the original venue capacity, it plans to adjust the location of the shareholders' meeting.
3. Hongjing Technology announced the signing of a 563 million yuan computing power business contract.
4. Baofeng Energy announced plans to repurchase company shares worth 1 billion to 2 billion yuan.
5. New Huadu announced a collaboration with the Hong Kong Polytechnic University to build an AI laboratory.
6. Tencent Holdings released its financial report, with Q1 non-IFRS operating profit of 69.32 billion yuan, up 18% YoY.
7. ST Lianhe announced plans to purchase part or all of the equity of Jiangxi Runtian Industrial, with the stock suspended from trading.
8. Shenghe Resources announced that its wholly-owned subsidiary plans to acquire 100% equity of Peak Company to promote the development of the Ngualla rare earth mine project.
9. China Rare Earth announced that it is actively cooperating with China Rare Earth Group to address issues of competition within the same industry and will seize opportunities for mergers and acquisitions.
10. China Oilfield Services announced that its subsidiary has won a bid for the EPSCC project of the Atawi Oilfield Gas Processing Plant in Iraq, worth 1.601 billion US dollars.
11. Zhanpeng Technology announced that two shareholders plan to collectively reduce their holdings by no more than 6% of the company's shares.
12. *ST Suwu announced that the company's chairman, Qunshan Qian, has been investigated for suspected violations of information disclosure regulations.
13. Zhao Weiguo, former chairman of Tsinghua Unigroup, was sentenced to death with a two-year reprieve in the first trial.
Global Markets
1. The three major US stock indices closed mixed, with the Nasdaq up 0.72%, the S&P 500 up 0.1%, and the Dow down 0.21%. Most large-cap tech stocks rose, with Tesla and Nvidia up over 4%, and Google up over 3%. Among them, Nvidia turned positive for the year. Most popular Chinese stocks rose, with the Nasdaq Golden Dragon China Index closing up 1.17%. The three major European stock indices closed slightly lower, with the German DAX down 0.47%.
2. International crude oil futures settled nearly 1% lower. WTI crude for June fell 0.82%, and Brent crude for July fell 0.81%.
3. COMEX gold futures fell 1.91% to $3,185.7 per ounce; COMEX silver futures fell 2.23% to $32.37 per ounce.
Investment Opportunities Reference
1. China's Commercial Space Industry Is Approaching Dual Inflection Points of "Technological Breakthrough" and "Scale Explosion"
Recently, China successfully launched multiple satellites. On May 14, China used the Long March 2D carrier rocket at the Jiuquan Satellite Launch Center to successfully launch the Space Computing Satellite Constellation into orbit. On May 13, China used the Long March 3C carrier rocket at the Xichang Satellite Launch Center to successfully launch the Communication Technology Test Satellite No. 19 into its planned orbit, marking a complete success of the mission.
GF Securities stated that China's commercial space industry is approaching dual inflection points of "technological breakthrough" and "scale explosion," with the space economy transitioning from vision to reality. Entering 2025, a batch of new commercial rockets, including Zhuque-3, Tianlong-3, Gravity-2, Hyperbola-3, and Zhishenxing-1, are expected to make their maiden flights as planned; China's version of "Starlink," the Qianfan Constellation and GW Constellation, will continue to launch; the Hainan Commercial Space Launch Site will enter a regular launch phase and begin its second-phase construction. It is estimated that the market size of China's commercial space industry will exceed 2.5 trillion yuan this year.
2. The "New Blue Ocean" in the Eyes of Many Enterprises, This Business Model Has Become a Key Driver of Import and Export Growth
According to reports, interviews with multiple cross-border foreign trade merchants revealed active inquiries from the US, with many merchants receiving restocking orders. The interviewed merchants indicated that they would still make multiple preparations, including supply chain, overseas warehouses, and emerging market expansion, to achieve a global layout.
With the increasing penetration of overseas e-commerce and the further optimization of China's supply chain capabilities, cross-border e-commerce has become one of the important channels for Chinese enterprises to go global. China's manufacturing foundation, complete supply chain system, robust logistics network, and digital payment system have become unique advantages for the country's development of cross-border e-commerce. "Going global" through cross-border e-commerce channels has also become a "new blue ocean" in the eyes of many enterprises. Market analysis indicates that cross-border e-commerce is an embodiment of new quality productive forces, which not only reduces trade links but also lowers trade barriers. The retail business of cross-border e-commerce directly connects small, medium, and micro enterprises with consumers, providing more trade opportunities for these entities, expanding trade scale, and optimizing trade structure.
3. 2025 Data Intelligence Conference to Release "AI Agent Industry Landscape"
According to media reports, it has been learned from the China Academy of Information and Communications Technology (CAICT) that the 2025 Data Intelligence Conference will be held in Beijing from June 18 to 19. CAICT will release multiple standards in the field of digital intelligence applications at the conference, as well as the "AI Agent Industry Landscape."
According to several authoritative reports, including those from McKinsey, driven by diversified demand, the AI Agent market is experiencing explosive growth. The global AI Agent market size was approximately $5.1 billion in 2024 and is expected to soar to $47.1 billion by 2030, with a compound annual growth rate (CAGR) as high as 44.8%. Guotai Junan Securities stated that with the release of the latest large models by DeepSeek and Tongyi Qianwen, as well as the launch of Agents by platforms like Fliggy and Choice, Agents are expected to gradually land in more scenarios in the future, accelerating the implementation of AI applications.
4. Demand Boost from AI Terminals, Aerospace, and Military Industries Opens Up Growth Space for Strategic Materials in This Sector
The 20th Western China International Fair (WCIF) will be held in Chengdu, Sichuan Province, from May 25 to 29. It is reported that this year's WCIF will continue to feature seven exhibition zones focusing on new industrial momentum, highlighting breakthrough achievements in cutting-edge fields such as artificial intelligence, biotechnology, new-type displays, and the low-altitude economy. Among them, world-first technologies and products, such as the global debut of carbon fiber-reinforced polymer wing structural components for the Airbus A350, will be showcased.
Due to its superior properties such as weight reduction and strength enhancement, carbon fiber, known as the "black gold" in the materials industry, is regarded as a national strategic material. Carbon fiber and its composites have been widely applied in fields such as aerospace, automotive, new energy development, and leisure products, thanks to their excellent performance. Kaiyuan Securities pointed out that with the development of the domestic low-altitude economy, domestically produced large aircraft, and aerospace industries, the domestic demand for aerospace-grade carbon fiber is expected to accelerate.
