[Morning News] Wang Yi had a phone call with Iran's Foreign Minister; six departments introduced relevant measures concerning finance to promote consumption

Macro News

1. On June 24, 2025, Wang Yi, Member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, had a phone conversation with Hossein Amir-Abdollahian, Foreign Minister of Iran. Amir-Abdollahian briefed Wang on the latest developments in the regional situation, emphasizing that the dangerous actions of Israel and the US in attacking Iran's nuclear facilities seriously violated international law, leaving Iran with no choice but to retaliate. Wang Yi stated that China appreciates the unified voice of the Organization of Islamic Cooperation (OIC) calling for a ceasefire and advancing peace, and is willing to promote the Security Council to play its due role and shoulder the primary responsibility for maintaining international peace and security.

2. The People's Bank of China (PBC) and five other departments jointly issued the "Guiding Opinions on Financial Support for Boosting and Expanding Consumption." The Opinions pointed out the need to improve the coordination between investment and financing functions in the capital market, promote the entry of medium and long-term funds into the market, and facilitate the stable development of the capital market. The Opinions also mentioned the innovation of financial products tailored to the needs of household wealth management, standardizing residents' investment and wealth management services, and increasing residents' property income. The Opinions emphasized the need to focus on key consumption areas to increase financial support, innovate financial products in line with consumption scenarios and characteristics, and continuously improve the quality and efficiency of financial services in the consumption sector.

3. On the afternoon of June 24, the 12th Standing Committee Meeting of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) held a plenary session, during which 14 standing committee members of the National CPPCC delivered speeches on "Further Deepening Economic System Reform and Advancing Chinese Modernization." Wang Huning, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Chairman of the National CPPCC, attended the meeting.

4. The People's Bank of China announced that to maintain ample liquidity in the banking system, on June 25, 2025, it would conduct a 300 billion yuan Medium-term Lending Facility (MLF) operation with a fixed amount, interest rate tender, and multiple price bidding, with a term of one year.

5. On June 24, Foreign Ministry spokesperson Guo Jiakun presided over a regular press conference. When asked about US President Trump's announcement that Israel and Iran had agreed to a ceasefire, Guo Jiakun stated that China calls on the relevant parties to return to the correct track of political settlement as soon as possible. China is willing to work with the international community to make efforts to maintain peace and stability in the Middle East.

6. On the 24th local time, US President Trump called Israeli Prime Minister Benjamin Netanyahu, urging him to stop attacking Iran. According to a report by Axios News Network citing Israeli officials, Netanyahu told Trump that he could not stop and needed to respond in some way to Iran's violations of the ceasefire agreement. Ultimately, the two sides decided to significantly reduce the scale of the attacks and cancel attacks on multiple targets.

Industry News

1. At a media briefing held on June 23, Fu Si, Goldman Sachs' China equity strategy analyst, stated that in terms of market allocation, they maintain an overweight recommendation for A-shares and Hong Kong stocks, with a target of 4,600 points for the CSI 300 Index and 84 points for the MSCI China Index, implying an upside room of approximately 10%. Lisheng Wang, an economist at Goldman Sachs China, pointed out that China's economic growth remains resilient in the short term, and policy countermeasures will significantly increase in the second half of this year (H2).

2. The General Office of the Ministry of Commerce issued a notice on organizing and carrying out the 2025 NEV Consumption Season activities in thousands of counties and towns, with the event scheduled from July to December 2025. All localities should earnestly implement the car trade-in policy, set up dedicated areas for car trade-in within the venues of the NEV Consumption Season activities, organize and introduce more marketable NEV car models, and better meet the diverse car purchase needs of the people in counties and townships. All localities should advance the pilot work of automobile circulation and consumption reform according to local conditions, and promote the organic integration of the NEV Consumption Season activities with the pilot creation work.

3. The National Medical Products Administration organized and held a work deployment meeting on strengthening the monitoring and disposal of key products in the online sales of medical devices. The meeting emphasized adhering to the principle of investigating and punishing illegal online clues and offline violations as a whole, combining network monitoring, inspections, sampling inspections, and penalties, and adhering to the principles of performing duties in accordance with the law, collaborative governance, and closed-loop disposal to effectively safeguard the safety of the public's online purchases of medical devices.

4. The General Office of the People's Government of Guangdong Province issued the "Work Plan for Guangdong Province to Promote Sustained Economic Improvement and Strengthen the Domestic Great Cycle Services". Among other things, it mentioned accelerating the trade-in of cars, home appliances, home furnishings, e-bikes, mobile phones, and digital products, further optimizing the workflow, unblocking recycling channels, and accelerating the progress of trade-in fund settlement work.

5. On the evening of June 22, the Guizhou Provincial Market Supervision Administration and the Zunyi Municipal Government dispatched working groups to Renhuai overnight to carry out verification and disposal work. Based on the investigation and disposal of the involved merchants in accordance with the law, Renhuai City has also comprehensively and continuously carried out special inspections and rectifications of the baijiu market, drawing inferences from one case to others.

6. The China Trustee Association organized and held a centralized compilation and review meeting for the "Guidelines for Insurance Trust Business" in Xi'an from June 24 to 25. It is understood that the "Guidelines for Insurance Trust Business" aims to guide the development of insurance trust business by various trust companies, adheres to the principles of practicality, operability, and forward-lookingness, formulates business development standards for insurance trust business, establishes the trustee's ability to perform duties, clarifies the trustee's responsibility boundaries, and standardizes the trustee's paid services.

7. The State Press and Publication Administration released the approval information for imported online games in 2025, with a total of 11 imported games approved in June. Games such as "Transformers: A New Era" and "CrossFire: Rainbow" are included. So far this year, a total of 55 imported games have been approved.

Corporate News

1. Huayang New Materials announced that Huayang Group was filed for investigation due to occupying funds of Yangmei Chemical.

2. Robotec announced that its subsidiary ficonTEC signed a contract exceeding 100 million yuan for optoelectronic packaging and testing equipment with a leading US company.

3. Jiahe Food announced it will gift company products to all shareholders.

4. Teling Micro announced it expects H1 net profit to surge 267% YoY.

5. Xiangyang Bearing announced shareholder Xiangzhou Group plans to reduce holdings by up to 3% of company shares.

6. Grirem Advanced Materials announced its wholly-owned subsidiary Grirem Eking plans to introduce strategic investors, with the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. subscribing to 50.8183 million yuan in registered capital.

7. Changchuan Technology announced plans for a private placement to raise no more than 3.132 billion yuan for semiconductor equipment R&D projects.

8. Digital China stated on the interactive platform that the company has RWA-related technical capabilities and will actively expand into the stablecoin sector.

9. Haoen Automotive Electronics said during a survey that products from its robotics subsidiary can be applied to service robots and humanoid robot business directions.

10. Youngor announced the sale of financial assets including CITIC shares and CITIC Bank, with cumulative transaction value reaching 4.175 billion yuan.

11. Huatai Securities announced approval to issue no more than 10 billion yuan in sci-tech innovation bonds.

12. Wantai Biological stated on the interactive platform that online data about its 9-valent HPV vaccine's protection rate is inaccurate.

13. Dajin Heavy Industry announced plans to issue H-shares and list on the Hong Kong Stock Exchange.

14. Guangda Special Material announced it expects H1 net profit to rise approximately 368% YoY.

15. Gaoling Information announced specific shareholders plan to reduce holdings by up to 5.66% of company shares.

Global Markets

1. US stocks opened higher and extended gains, with all three major indices closing up over 1%. The Nasdaq rose 1.43%, the Dow gained 1.19%, and the S&P 500 climbed 1.11%. The Dow hit its highest close since early March, while the S&P 500 and Nasdaq reached their highest closes since late February. Most big tech stocks advanced, with Intel up over 6%, and Nvidia, Netflix, and Amazon each gaining over 2%. Stablecoin leader Circle plunged over 15%, with market cap falling below $50 billion. Popular Chinese stocks broadly rose, with the Nasdaq Golden Dragon China Index jumping 3.31% for its biggest single-day gain since May 13. European markets collectively closed higher, with the Euro Stoxx 50 up 1.51%.

2. International crude oil futures settled sharply lower, dropping over 6%. WTI crude August contract fell 6.04%, while Brent crude August contract declined 6.07%.

3. COMEX gold futures fell by 1.71%, and COMEX silver futures fell by 0.9%.

Investment Opportunities Reference

1. The AI hardware market is transitioning from the initial exploration phase to a high-speed development phase

At the Alibaba Cloud Global Conference·Shenzhen, Li Hongwei, founder and CEO of Thunderbird Innovation, stated that based on Alibaba's Tongyi series models and Alibaba Cloud infrastructure, their AI glasses have already covered over 25 countries and regions worldwide, with a market share exceeding 40% in North America, Japan, and South Korea. Li Hongwei also mentioned that it is expected that the sales of AI glasses this year will be more than three times that of last year.

Founder Securities pointed out that the AI glasses market is transitioning from the initial exploration phase to a high-speed development phase. The launch of RayBan Meta has attracted market attention, and the introduction of AI large models such as DeepSeek has accelerated the promotion and implementation of on-device AI. According to Wellsenn XR's forecast, with the participation of more brand producers and the launch of AI smart glasses products, it is expected that global AI smart glasses sales will reach 5.5 million units in 2025, up 135% YoY. Lightweight and functional AI+AR products represent the future form of AI glasses development. By 2035, AI+AR smart glasses are expected to replace traditional smart glasses and reach a scale comparable to smartphones, with sales expected to reach 1.4 billion units and a penetration rate of approximately 70%.

2. Cross-border Payment Link Goes Live for Testing: Shenzhen-Hong Kong Remittances Enter the "Seconds-Counting Era"

With the official launch of the interconnection cooperation between the mainland and Hong Kong's fast payment systems (hereinafter referred to as the "Cross-border Payment Link"), cross-border remittances between Shenzhen and Hong Kong have entered an era of "zero fees and instant arrival." On the first day of the launch, a silent battle for users among banks offering the Cross-border Payment Link has already begun, with some banks even using real cash incentives to attract users. It is understood that the mechanism of the "Cross-border Payment Link" is to leverage the interconnection between the mainland's online payment interbank clearing system (IBPS) and Hong Kong's fast payment system "Faster Payment System" (FPS).

In contrast, traditional cross-border remittances not only require pre-exchange of currencies but also the completion of complex SWIFT codes and English address information. The industry believes that this groundbreaking payment innovation may expand in stages in the future. The scope of services is planned to extend from current individual remittances to institutional scenarios such as tuition fee payments and cross-border salary disbursements; the coverage of mainland regions will also expand from Guangdong to the entire country. The computer team of China Merchants Securities is optimistic about the investment opportunities in the cross-border payment industry chain, with cross-border payment service providers and custodian bank service providers being important links.

3. New-quality and New-domain Combat Forces Have Become the Commanding Heights of Strategic Competition Among Major Powers

It is reported that a grand military parade will be held at Tiananmen Square in the capital on September 3rd this year. Reporters learned from a press conference held by the State Council Information Office that this military parade featured displays of both traditional main battle forces and new-type forces from new domains. All the equipment showcased in this parade was domestically produced and currently in active service. In addition to showcasing a new generation of traditional weapons and equipment, we also arranged for some new-type combat forces, such as unmanned intelligence, underwater operations, cyber-electronic attack and defense, and hypersonic forces, to participate, demonstrating the strong capabilities of our military to adapt to technological advancements and the evolution of warfare forms, and to win future wars.

In recent years, new-type combat forces from new domains, represented by "intelligence, systematization, and informatization," have become the commanding heights of strategic competition among major powers and a key force for securing victory in the future. China Aviation Securities pointed out that for China, on the one hand, although new-type combat methods such as unmanned equipment, anti-unmanned systems, and electronic countermeasures are still in the early stages of domestic development, their application certainty is relatively strong, and they are expected to become new drivers for the sustained high-growth development of the military industry sector in the medium and long-term future. Military intelligence, on the other hand, has become another key area for seizing opportunities and dominating the battlefield. From a combat perspective, intelligence involves various combat links and domains, including intelligence processing, auxiliary decision-making, firepower strikes, cyber-electronic attack and defense, electronic countermeasures, and comprehensive support. Even unmanned combat systems themselves require intelligent technologies to enhance their autonomous capabilities. The new form of warfare is driving industrial applications and demands.

4. Prices Surge Over 65% in Less Than a Month; Institutions Say Production Halts by Three Major Original Manufacturers Drive Up Prices in This Segment

Industry media reported that as original manufacturers successively announced the halt of DDR4 memory production, a buying frenzy swept the market. The latest market data showed that DDR4 memory prices continued to climb this week, further widening the price gap with DDR5 memory. Currently, the price difference between DDR4 16Gb (1GX16) and DDR5 16G (2Gx8) products of the same specifications has reached 100%. According to TrendForce data, the quoted price of DDR4 16Gb (2GX8) memory on June 2 was $5.171, which was about 8% lower than DDR5 at that time. However, the latest quote showed that DDR4 had risen to $8.633, a surge of 67% in less than a month, and had already exceeded the price of DDR5 by 44%.

Shenwan Hongyuan's research report pointed out that the production halts by three major original manufacturers are driving up DDR4 prices, and the domestic memory industry chain is expected to benefit. According to CFM information, following the announcements by two major Korean manufacturers, Samsung and SK Hynix, of their plans to halt DDR4 memory production, Micron officially notified its customers in June that its DDR4 memory products would enter the phase-out stage. It is expected that DDR4 memory for consumer, mobile, PC, and data center applications will gradually undergo production cuts or reductions in the next 2-3 quarters.