Zhitong Hong Kong Stock Early Knowledge | The US dollar falls again, gold prices break through 3,400 USD, and international capital is accelerating its allocation to the Hong Kong and mainland markets

[Today’s Headlines]

Hong Kong Financial Secretary Paul Chan: International capital is accelerating its allocation to Hong Kong and mainland markets

According to the Zhito Finance APP, Hong Kong Financial Secretary Paul Chan stated in a blog post on April 20 that many friends in the financial market have indicated that in recent months, international capital is accelerating its allocation to Hong Kong and mainland markets. The proportion of foreign investment subscriptions for some recently listed mainland companies has significantly increased compared to the past two years. In addition, some foreign financial institutions have also indicated that they are expanding their scale and hiring more staff in Hong Kong, while others are relocating senior personnel from other regions to Hong Kong.

These phenomena reflect two major trends: on one hand, the resilience of the national economy, breakthroughs in innovative technology, and the continuous deepening of high-level opening-up policies have made international investors worry about missing good investment opportunities in the mainland; on the other hand, the unilateralism and policy uncertainty of the U.S. authorities have prompted international funds to accelerate risk diversification and increase their allocation in the mainland and Hong Kong markets. Undeniably, this shift in the investment pattern of the East rising and the West declining is gradually becoming evident.

[Market Outlook]

Trump intensifies pressure on Federal Reserve Chairman Powell

Overnight, the Dow Jones Industrial Average fell 971.82 points from the previous trading day, closing at 38,170.41 points, a decline of 2.48%; the S&P 500 index dropped 124.50 points, closing at 5,158.20 points, a decline of 2.36%; the Nasdaq Composite Index fell 415.55 points, closing at 15,870.90 points, a decline of 2.55%. Large technology stocks fell broadly, with Tesla down nearly 6%, and Nvidia and Oracle down over 4%.

The Nasdaq Golden Dragon China Index rose against the trend, up 0.2%, with Alibaba rising over 1% and Nio rising over 2%. The Hang Seng Index ADR fell, closing at 21,064.91 points, down 330.23 points or 1.54% from the Hong Kong close.

U.S. President Trump has intensified pressure on Federal Reserve Chairman Powell, calling him a "big loser" and warning that if interest rates are not lowered immediately, the U.S. economy may slow down.

[Hot Topics Ahead]

U.S. dollar falls again, gold price breaks $3,400, setting a new historical high

The U.S. dollar index fell below the 98 mark for the first time since March 2022. Spot gold closed up 2.92% in New York, at $3,424.48 per ounce. COMEX gold futures settled up $96.90, an increase of 2.91%, at $3,425.30 per ounce, setting a historical high.

In the face of the chaos and uncertainty caused by U.S. tariff policies, the global trend of "de-dollarization" is accelerating. CITIC Securities stated in its latest research report that the liquidity crisis triggered by Trump's tariff policy was the reason for the significant decline in gold prices previously. However, geopolitical disturbances have catalyzed global central banks and market demand for gold. The subsequent actions of the Trump administration remain highly uncertain, and gold prices may still fluctuate significantly, but the damage to the credibility of the dollar system by the Trump administration is irreversible, which will strengthen the monetary attributes of gold and push its price center upward Central Bank and Four Departments: Enhance the Functionality and Global Network Coverage of the Cross-Border Payment System (CIPS) to Promote the Cross-Border Use of Renminbi

According to Zhitong Finance APP, on April 21, the People's Bank of China, the Financial Regulatory Administration, the State Administration of Foreign Exchange, and the Shanghai Municipal Government jointly issued the "Action Plan for Further Enhancing the Facilitation of Cross-Border Financial Services in Shanghai as an International Financial Center." It mentioned the need to enhance the functionality and global network coverage of the Cross-Border Payment System (CIPS). Cross-border clearing companies will strengthen collaboration with financial institutions to jointly improve service levels for "going out" enterprises. More banks will be encouraged to join CIPS, continuously expanding the network coverage of CIPS. The construction of CIPS will be strengthened, system functionalities improved, and research will be conducted to promote the application of blockchain technology, providing safe and efficient settlement and clearing services for global trade, shipping, and investment financing denominated in Renminbi.

Expansion of Service Industry Opening Up: 155 Pilot Tasks Defined in Multiple Fields Including Finance and Healthcare

On April 21, the State Council Information Office held a press conference to introduce the "Comprehensive Pilot Work Plan for Accelerating the Expansion of Service Industry Opening Up." During the press conference, it was introduced that the "Work Plan" clearly defines 155 pilot tasks from multiple dimensions, including the opening up of key service areas and industrial innovation development. In the telecommunications sector, pilot tasks include removing foreign investment shareholding restrictions on application stores and internet access services; encouraging the development of the data labeling industry, improving the data trading market system, and supporting the development of new business models such as "data processing." The plan specifies the development of overseas gaming businesses, laying out the industrial chain from IP creation to game production, distribution, and overseas operations.

National Energy Administration Launches New Generation Coal Power Upgrade Special Action

On April 21, the National Energy Administration launched a special action for upgrading the new generation of coal power, aiming to promote the transformation of traditional coal power towards "clean carbon reduction, safety and reliability, efficient regulation, and intelligent operation." Du Zhongming, Director of the Power Department of the National Energy Administration, provided policy interpretations at the special action work deployment meeting. For existing units, further upgrades will be implemented based on the "three modifications linkage." In terms of clean carbon reduction, low-carbon transformation will be encouraged. For safety and reliability, it is required that the declared output standard rate during the supply guarantee period is not less than 98%, and the number of unplanned outages does not exceed 0.3 times per unit per year. In terms of efficient regulation, requirements will be proposed to control the increase in coal consumption for low-load power supply within 25%, encouraging units to enhance primary frequency modulation performance and carry out start-stop peak regulation modifications. In terms of intelligent operation, improvements in intelligent control, intelligent operation and maintenance, and intelligent decision-making capabilities will be encouraged.

The Largest Onshore Wind Turbine Unit in Domestic Single Machine Capacity Has Been Successfully Installed

According to reports from China Railway Electrification Bureau Group Co., Ltd., at noon on the 20th, with the last blade of the Tianrun Dafeng Wind Power Project perfectly "rotating" and accurately docking with the hub at a height of 155 meters, the first domestically developed 16.2 megawatt onshore wind turbine unit was successfully installed. It is reported that the wind turbine unit installed this time is currently the largest onshore wind turbine unit in terms of single machine capacity in China, developed by Goldwind Technology Co., Ltd. The hub center of this wind turbine unit is 155 meters high, equivalent to the height of more than 50 floors, with a single blade length of 130 meters, a rotor diameter of 266 meters, and a swept area of approximately 55,500 square meters, close to the combined area of eight football fields Suteng Juchuang (02498) Releases Customizable Digital Laser Radar Platform Supporting Up to 2160 Lines

On April 21, laser radar technology company Suteng Juchuang announced the launch of a customizable digital laser radar platform, supporting up to 2160 lines. The new platform covers one-dimensional scanning, two-dimensional scanning, and area array scanning, quickly meeting the needs of various industries such as smart cars and robotics. This year, Suteng Juchuang has continuously released multiple new products, including the E1R and Airy for service robots, as well as the EM4 and EMX for vehicle applications.

Saudi Aramco and BYD Company (01211) Sign Agreement to Collaborate on New Energy Vehicle Technology Exploration

According to a statement, Saudi Aramco and BYD have signed an agreement to combine research, discover new technologies, and improve transportation efficiency. The two companies did not provide further details or indicate when the deal might advance to a more formal collaboration. Ali A. Al-Meshari, Senior Vice President of Technology at Saudi Aramco, stated in the announcement that Saudi Aramco is exploring various possibilities to optimize transportation efficiency, from innovative low-carbon fuels to advanced power system concepts.

China Unicom (00762) Releases Q1 2025 Results: Shareholders' Profit Reaches 5.93 Billion Yuan, Up 5.6% Year-on-Year

According to Zhitong Finance APP, China Unicom (00762) released its Q1 2025 results, reporting operating revenue of 103.35 billion yuan, a year-on-year increase of 3.9%; the profit attributable to the company's equity holders reached 5.93 billion yuan, up 5.6% year-on-year.

Wondfo Biotech (00512): Global Innovative Radioactive Nuclide Conjugated Drug GPN02006 Achieves Milestone Breakthrough in Clinical Research in China

According to Zhitong Finance APP, Wondfo Biotech (00512) announced that the clinical research initiated by researchers on the global innovative radioactive nuclide conjugated drug (RDC) GPN02006, developed in collaboration with Wuhan Ruidi Radiation Biotechnology Co., Ltd. and Jieke (Tianjin) Biopharmaceutical Co., Ltd. for the diagnosis of hepatocellular carcinoma (HCC), has recently achieved a milestone breakthrough and publicly presented clinical results at the Chengdu 2025 Future XDC New Drug Conference.

[Stock Highlights]

Chifeng Gold (06693): The Company Has Potential for Continuous Expansion and Resource Increase

Chifeng Wulong Mining is expected to reach a daily processing capacity of over 2,000 tons by the end of 2024, with plans to reach a full production capacity of 3,000 tons/day by 2025; the 180,000-ton gold ore expansion project of Jilong Mining is set to begin trial production in June 2024, with an additional 60,000-ton underground mining project approved, further enhancing mining capacity;

The new 30,000-ton underground mining expansion project in Huatai Mining's Wucai District is scheduled to start construction in November 2024, expected to gradually contribute incremental production capacity starting in 2025; Wanxiang Mining's Far West open-pit gold mine is set to commence production in September 2024, contributing 1.2 tons of gold output in the first year, with further capacity expected to ramp up; Jinxing Vasa is accelerating drilling work, and the company is reassessing old mining pits based on rising gold prices, with some areas expected to contribute incrementally in 2025 The company is increasing exploration efforts across all mines and has initiated a three-year plan for exploration and resource increase, with the resource quantity and reserves expected to further improve