Important Updates Ahead of Market Opening: The Central Office and the State Council have released new directives; the implementation details for subsidies on new energy buses and battery replacements have been announced. Here are other significant updates.
Key Updates
Central Office and State Council: Strengthening Food Safety Regulation
Recently, the General Office of the Central Committee of the Communist Party and the General Office of the State Council published an opinion titled “Further Strengthening the Full Chain Regulation of Food Safety”. This document emphasizes the establishment of a coordinated regulatory mechanism to enhance the overall strength of food safety supervision.
The opinion addresses issues in the regulatory connections across the entire food supply chain, including the planting and breeding of edible agricultural products, as well as food production, storage, transportation, delivery, sale, consumption, and imports. It proposes eight areas for improvement along with 21 specific measures.
To tackle food safety concerns that matter to the public, the opinion calls for enhanced inspection and quarantine of meat products, the establishment of a verification system for bulk liquid food transportation, improved collaborative management mechanisms for campus food safety, and integrated online and offline supervision for food delivery services.
Subsidy Reforms for Investors: Fund management fees for index usage will now be borne entirely by fund managers.
On March 19, several fund managers announced that starting March 21, the index usage fees for their index funds will be covered by the fund managers themselves, along with corresponding revisions to fund contracts. This change aligns with the Action Plan for Promoting High-Quality Development of Index Investment in the Capital Market, aiming to benefit investors.
Federal Reserve Maintains Interest Rates
The Federal Reserve concluded its two-day monetary policy meeting on March 19, announcing that it would keep the federal funds rate target range unchanged at 4.25% to 4.50%. This decision marks the continuation of the current rate since the meeting at the end of January. The Federal Open Market Committee noted that while the unemployment rate remains low and the labor market is stable, inflation is still “somewhat elevated.”
New Energy Buses and Battery Replacement Subsidy Details Released
On March 19, the Ministry of Transport and other departments issued the Implementation Guidelines for Subsidies on New Energy City Buses and Power Battery Replacements for 2025. This initiative utilizes long-term special government bond funds to provide fixed subsidies to urban bus companies for updating new energy city buses and replacing power batteries.
Each bus will receive an average subsidy of 80,000 yuan, while buses replacing batteries will receive an additional average subsidy of 42,000 yuan. Compared to the subsidies in 2024, the average amount per bus has increased from 60,000 yuan to 80,000 yuan. Local governments will determine additional subsidy standards based on the demand for updated vehicles and battery replacements.
In terms of funding management, the guidelines specify that the subsidies will be shared by central and local finances at a ratio of 90:10, with specific regional ratios: 85:15 for eastern provinces, 90:10 for central provinces, and 95:5 for western provinces.
Noteworthy Announcements
Yun’an Travel: No Plans for a Merger with Hello Group
On March 19, Yun’an Travel (603776) issued a stock trading risk warning, addressing recent media reports regarding a potential merger with Hello Group. The company confirmed that the share transfer does not involve any asset injection and that no merger plans exist for the next 12 months.
Wanma Co.: Limited Revenue from Humanoid Robots and Robotic Dogs
Wanma Co. (002276) reported on March 19 that despite high market sentiment around humanoid robots and robotic dogs, the revenue from these orders remains relatively small. As a significant manufacturer of intelligent equipment cables, the company’s products are applied in various sectors, including industrial robotics.
Qijing Machinery: Stock May Be Subject to Irrational Speculation
Qijing Machinery (603677) issued a risk warning on March 19, noting that its stock has experienced six consecutive days of price surges, accumulating a 77.18% increase. The company cautioned against potential irrational speculation and highlighted the risks of significant declines.
Kingsoft: 2024 Profit Growth and Cash Dividend Proposal
On March 19, Kingsoft (688111) announced that it achieved a revenue of 5.121 billion yuan in 2024, a 12.4% year-on-year increase, with a net profit of 1.645 billion yuan, marking a 24.84% rise. The company proposed a cash dividend of 9 yuan per 10 shares.
China Ping An: Significant Profit Increase
China Ping An (02318.HK) reported a net profit of 126.607 billion yuan for 2024, up 47.8% year-on-year, with revenues reaching 1.141346 trillion yuan. A cash dividend of 1.62 yuan per share is proposed for the end of 2024.
Guananda: Investment in Low-altitude Economic Industrial Park
Guananda (300902) announced plans to invest up to 200 million yuan in constructing a low-altitude economic industrial park in Pinghe County, with final investment subject to actual costs.
Kid’s King: Comprehensive Cooperation Agreement with Tuya Smart
Kid’s King (301078) announced a comprehensive cooperation agreement with Tuya Smart on March 18, focusing on AI hardware products and overseas market development.
Sany Heavy Industry: Share Buyback Proposal
Sany Heavy Industry (600031) announced a proposal to repurchase shares worth between 1 billion to 2 billion yuan for an employee stock ownership plan.
Guangzhou Restaurant: Share Repurchase Plan
Guangzhou Restaurant (603043) plans to repurchase shares worth 100 million to 143 million yuan for future equity incentives, with a buyback price capped at 23 yuan per share.
Debang Technology: Share Reduction by State Fund
Debang Technology (688035) disclosed that the National Integrated Circuit Industry Investment Fund plans to reduce its shareholding by up to 3% through trading methods.
Zhengtai Automobile: Share Reduction Plan
Zhengtai Automobile (000980) announced that its shareholder, Zheshang Bank, plans to reduce its stake by up to 3% through trading methods.
Henghui Security: Adjusted Share Buyback Cap
Henghui Security (300952) has adjusted its share buyback price cap from 30 yuan to 43 yuan per share, effective from March 20.
