The central bank takes action to stabilize the exchange rate; the latest automobile sales data from the China Association of Automobile Manufacturers is released | Today's important news review

0113 Dolphin's Key Focus:

🐬 Macro/Industry

1. The People's Bank of China and the State Administration of Foreign Exchange have decided to raise the macro-prudential adjustment parameter for cross-border financing of enterprises and financial institutions from 1.5 to 1.75, effective today. After the adjustment, the upper limit of the risk-weighted balance for cross-border financing will increase, and the amount of cross-border capital inflow will rise, thereby enhancing foreign exchange supply and stabilizing the exchange rate. Under this favorable stimulus, the offshore RMB exchange rate against the US dollar surged in the short term this morning. Subsequently, the central bank will issue 60 billion yuan of offshore RMB central bank bills in Hong Kong on January 15.

2. According to data from the China Association of Automobile Manufacturers, in December, the production and sales of new energy vehicles reached 1.53 million and 1.596 million units, respectively, representing year-on-year growth of 30.5% and 34%. Sales accounted for 45.8% of total new car sales. New energy vehicles continue to grow rapidly, with new energy vehicle sales expected to reach 40.9% of total new car sales in 2024, an increase of 9.3 percentage points compared to 2023. The growth of plug-in hybrid vehicles is also rapid, with sales accounting for 40% of new energy vehicles, an increase of 10.4 percentage points from last year.

1. The General Administration of Customs of China announced today the import and export data for goods trade in December. The data shows that in 2024, the total value of China's goods trade in imports and exports reached 43.85 trillion yuan, breaking the 43 trillion yuan mark and setting a new historical high.

🐬 Leading Sectors

Shanghai and Shenzhen: Data processing and outsourcing services, oil and gas storage and transportation, tobacco;

Hong Kong Stocks: Human resources and employment services, semiconductor manufacturers, furniture/home/decor materials retailers;

U.S. Stocks: Pharmaceutical retailers, shipping ports - operators, home appliances.

🐬 Attention for Tomorrow

1. U.S. New York Fed 1-year inflation expectations, U.S. PPI month-on-month, U.S. PPI year-on-year.

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