Zhitong Hong Kong Stock Early Knowledge | Powell reiterates that the Federal Reserve does not need to rush to cut interest rates, and the People's Bank of China has increased its gold holdings for six consecutive months

[Today's Headlines]

Federal Reserve FOMC Statement and Chairman Powell's Press Conference Key Points Summary: Third Rate Decision of the Year Maintained, Powell Reiterates No Urgency for Rate Cuts

1. Interest Rates / Monetary Policy: ① The Federal Reserve announced that it will maintain the federal funds rate target range at 4.25% to 4.50%, marking the third consecutive time this year that the Fed has kept rates unchanged since January. ② Powell stated that the Fed does not need to rush to adjust rates. ③ Powell indicated that the Fed's policy is moderately restrictive. ④ Powell mentioned that Trump's calls for rate cuts do not affect the Fed's work at all. ⑤ When asked about the expectation of two rate cuts in March, Powell stated that it is too early to make predictions and that they will wait until June.

2. Inflation: ① The FOMC statement indicated that the committee judges the risks of rising unemployment and inflation have intensified. ② The FOMC statement showed that inflation remains slightly elevated. ③ Powell stated that inflation has significantly decreased. ④ Powell noted that short-term inflation expectations have risen, while long-term inflation expectations remain aligned with the target. ⑤ Powell emphasized that the Fed has an obligation to stabilize inflation expectations. ⑥ Powell mentioned that the risks of rising unemployment and inflation have increased, but this has not yet appeared in the data.

3. U.S. Economy: ① The FOMC statement indicated that uncertainty regarding the U.S. economic outlook has further increased. ② The FOMC statement showed that economic activity continues to expand at a robust pace. ③ Powell stated that the economy is in a solid state. ④ Powell noted that unusual fluctuations in trade complicate the measurement of GDP. ⑤ Powell indicated that uncertainty regarding the economic path is extremely high, and downside risks have increased. ⑥ Powell stated that fluctuations in GDP data will not fundamentally change the Fed's position.

4. Financial Markets: ① The FOMC statement indicated that it will continue to reduce its holdings of Treasury securities and MBS at the current pace. ② Powell stated that he does not want to significantly tighten financial conditions during a fragile economic period. ③ Powell mentioned that U.S. debt is on an unsustainable path.

5. Tariffs: ① Powell stated that survey respondents pointed out that tariffs are a major factor driving inflation expectations. ② Powell noted that the impact of tariffs has been much greater than expected so far. ③ Powell indicated that avoiding persistent inflation will depend on the scale, timing, and inflation expectations of tariffs. ④ Powell stated that he cannot provide a timeline for increasing tariff transparency. ⑤ Powell mentioned that if tariffs remain unchanged, there will be no progress on the dual mandate goals this year. ⑥ Powell indicated that trade negotiations could substantially change the situation.

6. Other: ① Federal Reserve Chairman Powell declined to comment on Trump's retraction of the firing threat. ② When asked if he would remain on the Fed Board if he no longer served as Chairman, Powell stated that he has no information on that matter. ③ Powell mentioned that he has never requested to meet with the President and will never do so; all meetings with the President are at the President's invitation. ④ Powell stated that the Fed does not have good tools to address supply chain issues. ⑤ Powell emphasized that the Fed will not be the decision-maker on climate issues 【Market Outlook】

Nasdaq China Golden Dragon Index closed down 2.34%

Overnight, U.S. stocks closed with the Dow Jones up 284.97 points, an increase of 0.70%, closing at 41,113.97 points; the Nasdaq rose 48.50 points, an increase of 0.27%, closing at 17,738.16 points; the S&P 500 index rose 24.37 points, an increase of 0.43%, closing at 5,631.28 points. Google fell more than 7%. Affected by news that the Trump administration plans to lift AI chip restrictions from the Biden era, chip stocks surged in the last trading hours, with NVIDIA (NVDA.US) closing up 3.1% and TSMC (TSM.US) rising over 1%.

Most popular Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index closing down 2.34%. ZEEKR (ZK.US) rose 11.5%, WeRide fell nearly 8%, Baidu fell nearly 5%, and Alibaba fell over 3%. The Hang Seng Index ADR fell, closing at 22,535.76 points, down 156.12 points or 0.69% compared to the Hong Kong close.

【Hot Topics Ahead】

China's central bank has increased gold reserves for six consecutive months

The People's Bank of China: As of the end of April, China's gold reserves reported 73.77 million ounces, an increase of 70,000 ounces month-on-month, marking the sixth consecutive month of gold accumulation.

Preparing for the "return" of Chinese concept stocks? CITIC Securities plans to allocate investment bankers to increase personnel in Hong Kong

CITIC Securities' investment banking committee is planning to allocate mainland investment banking personnel to Hong Kong to handle Hong Kong stock investment banking business. This recruitment plan mainly targets personnel from CITIC Securities' mainland investment banking department and will be conducted in a competitive manner. Due to geopolitical factors, the wave of "return" of Chinese concept stocks is gradually rising, and CITIC Securities' early personnel allocation may be a precautionary measure. CSRC Chairman Wu Qing stated at a State Council Information Office press conference that "conditions will be created to support high-quality Chinese concept stocks to return to the mainland and Hong Kong markets."

Geely Automobile (00175) submitted a non-binding offer letter to ZEEKR, indicating its intention for a privatization proposal

According to Zhitong Finance APP, Geely Automobile (00175) announced that in order to promote deep integration of internal resources and efficient collaboration, eliminate duplicate investments, reduce costs, enhance corporate competitiveness, and create long-term value, the company submitted a non-binding offer letter to ZEEKR on May 7, 2025, indicating its preliminary intention for a privatization proposal to acquire all issued and outstanding ZEEKR shares and American Depositary Shares (excluding those beneficially owned by the group), subject to further negotiations and the signing of a final agreement. Geely Automobile announced plans to acquire all issued shares of ZEEKR. Geely currently holds approximately 65.7% of ZEEKR's shares, and if the transaction is completed, ZEEKR will fully merge with Geely. Li Shufu, Chairman of Geely Holding Group, stated: "In the face of fierce market competition and an increasingly complex economic environment, we will assess the situation, and in accordance with the spirit of the Taizhou Declaration, continue to promote the integration of automotive businesses, return to a unified Geely, integrate technological advantages, enhance innovation capabilities and profitability, continuously create long-term value, and build a globally leading intelligent electric vehicle group. At the same time, we will maintain close communication and cooperation with the U.S. and international capital markets." Zoomlion Heavy Industry Science and Technology Co., Ltd. (01157): Accelerating the Development of Embodied Intelligent Robot Business to Build the Third Growth Curve of Future Industries

Zoomlion recently stated at a roadshow event that it is accelerating the development of its embodied intelligent robot business, relying on its Central Research Institute and subsidiary Zhongke Yungu, to build the third growth curve of future industries. In the first quarter, it released two prototypes of humanoid robots and is continuously validating, optimizing, and upgrading them.

Immune-Oncotherapy-B (01541): Received Further Payment Under Authorization and Cooperation Agreement Related to AXION BIO for IMM2510 (Pevonedistat) and IMM27M (Tezspire)

According to Zhitong Finance APP, Immune-Oncotherapy-B (01541) announced that the company has received a recent second payment of USD 5 million from Axion Bio under the authorization and cooperation agreement. As of the date of this announcement, the company has received a total of USD 20 million in initial and recent payments under the authorization and cooperation agreement, marking an important milestone in its collaboration with Axion Bio and laying a solid foundation for further development. The company expects to receive up to USD 30 million in remaining potential recent payments in the future under the authorization and cooperation agreement.

BeiGene, Ltd. (06160) First Quarter Total Revenue of USD 1.117 Billion, a Year-on-Year Increase of 49%

According to Zhitong Finance APP, BeiGene, Ltd. (06160) announced its performance for the first quarter of 2025, reporting total revenue of USD 1.117 billion, a year-on-year increase of 49%; GAAP net profit of USD 1.27 million, compared to a loss of USD 251 million in the same period last year; adjusted net profit of USD 136 million, compared to a loss of USD 146 million in the same period last year; GAAP basic earnings per American Depositary Share (ADS) of USD 0.01.

Qingdao Beer (00168): Plans to Acquire 100% Equity of Jimo Huangjiu for RMB 665 Million

Qingdao Beer announced that it plans to acquire 100% equity of Jimo Huangjiu held by Xinhua Jin Group and Lu Jin Group for RMB 665 million. Upon completion of this transaction, Jimo Huangjiu will become a wholly-owned subsidiary of Qingdao Beer. Jimo Huangjiu was established in 1949, with a registered capital of RMB 55 million, achieving a main business income of RMB 166 million and a net profit of RMB 30.47 million in 2024. Qingdao Beer stated that this acquisition will promote the company's diversified development, broaden its product line and market channels, and enhance its sustainable development capabilities.

Anta Sports Products Limited (02020): The Conversion Price of EUR 1.5 Billion Zero-Coupon Guaranteed Convertible Bonds Adjusted to HKD 102.62 per Share

On May 7, Anta Sports announced on the Hong Kong Stock Exchange that the conversion price of its EUR 1.5 billion zero-coupon guaranteed convertible bonds maturing in 2029 will be adjusted from HKD 104.02 to HKD 102.62 per share, effective from May 14, 2025, the day following the record date related to the dividend. After the adjustment and assuming full conversion of the bonds, the bonds will convert into 119,188,755 shares, accounting for approximately 4.25% of the total shares issued as of the date of this announcement and approximately 4.07% of the total shares issued after the issuance of the relevant convertible shares Except for adjustments, all other terms and conditions of the bonds remain unchanged.

Lao Pu Gold (06181) plans to place 4.31 million new H-shares at a discount of approximately 8.03%, raising about HKD 2.698 billion

Lao Pu Gold (06181) announced that on May 7, 2025 (after the trading session of the Stock Exchange), the company entered into a placement agreement with the placement agent, under which the placement agent conditionally and separately (rather than jointly or jointly and separately) agreed to act as the company's agent to use its best efforts to procure a total of no less than six subscribers to purchase 4.31 million new H-shares in accordance with the terms set forth in the placement agreement, with a placement price of HKD 630.00 per H-share.

Auntie in Shanghai (02589) closes up 62% in dark trading, earning HKD 2,120 per lot

Auntie in Shanghai opened high in dark trading yesterday, soaring 66% at one point, reaching a high of HKD 188, and closing up 62% at HKD 183.30, with a trading volume of HKD 75.84 million; each lot consists of 30 shares, earning HKD 2,120.4 per lot excluding fees.

[Stock Highlights]

Yuan Da Pharmaceutical (00512): Application for international multicenter Phase III clinical trial of global innovative radiolabeled drug TLX591 has been accepted by the National Medical Products Administration of China

According to Zhitong Finance APP, Yuan Da Pharmaceutical (00512) announced that the application for the international multicenter Phase III clinical trial of its global innovative radiolabeled drug (RDC) TLX591 (177Lu-HuJ591) for the treatment of prostate cancer has recently been officially accepted by the National Medical Products Administration of the People's Republic of China. This marks an important research and development progress for the group in the field of nuclear medicine for tumor diagnosis and treatment. The group places great importance on the globalization development strategy of the nuclear medicine industry, actively promoting the global development and registration process of innovative nuclear medicine products, and will continue to deepen the global expansion of the group's nuclear medicine product pipeline