On May 27th, as of the midday break, the three major stock indices showed mixed performances, with the Shanghai Composite Index up by 0.37%, the Shenzhen Component Index down by 0.27%, and the ChiNext Index down by 0.65%. The internet e-commerce, virtual power plant, shipping, and coal sectors led the gains, while the consumer electronics, military, and real estate development sectors experienced adjustments.

Let's review the market hotspots from the morning session.

**Power Sector Gains Strength**

As of the midday break, stocks like Chenzhou Electric International, Guangxi Energy, and Xinzhonggang hit their upper limits, while Jidong Shares surged by over 9%.

**Cross-Border E-Commerce Sector Shows Activity**

As of the midday break, stocks such as Kaichun Shares, Longtou Shares, Pulutong, and Kuajingtong hit their daily limit highs, with Starway Shares, Saiwei Times, and Yaben Chemicals among others following suit.

In terms of news, recently, the State Council's executive meeting reviewed and approved the "Opinions on Expanding Cross-Border E-Commerce Exports and Promoting the Construction of Overseas Warehouses." The meeting pointed out that developing new foreign trade formats like cross-border e-commerce and overseas warehouses is beneficial for optimizing the structure of foreign trade and stabilizing its scale. It is also conducive to creating new advantages in international economic cooperation. Efforts should be made to actively cultivate cross-border e-commerce operators, encourage localities to support the development of traditional foreign trade enterprises in cross-border e-commerce based on their unique advantages, strengthen the training of cross-border e-commerce talent, provide more platforms for enterprises to showcase and connect, and continuously promote brand building.

Advertisement

**Evergrande Auto Resumes Trading, Soars by Over 110% at One Point**

Evergrande Auto resumed trading on the Hong Kong stock market, opening with a surge of 94.74% and at one point rising by over 110%. As of press time, the stock's gains have narrowed to over 78%.

On the evening of May 26th, Evergrande Auto announced that the liquidators of China Evergrande, Evergrande Health Industry Group Limited, Acelin Global Limited, and others, have entered into a term sheet with a third-party buyer for the proposed sale of their shares in Evergrande Auto. According to the aforementioned term sheet, the buyer and seller will further sign a final sale and purchase agreement regarding the sale. It was disclosed that the China Evergrande side collectively holds approximately 6.347 billion shares in Evergrande Auto, accounting for about 58.5% of the latter's total issued shares, all of which will be put on the market.The announcement stated that after the signing of the sale and purchase agreement and subject to its terms and conditions, 3.14 billion potential shares to be sold will be acquired in real time, which is about 29% of Evergrande Auto's issued shares; another 3.203 billion potential shares to be sold, or the remaining 29.5%, will become the subject of an option that the buyer can exercise within a certain period after the date of the sale and purchase agreement. [Industrial enterprises above designated size achieved a year-on-year profit growth of 4% in April] According to the National Bureau of Statistics, from January to April, the total profit of industrial enterprises above designated size nationwide was 2094.69 billion yuan, a year-on-year increase of 4.3%. In April, industrial enterprises above designated size achieved a year-on-year profit growth of 4.0%. [National Health Commission: Focus on punishing the person himself or instructing relatives and friends to use business to run enterprises to "rely on doctors for medical treatment" and accept kickbacks from suppliers] The National Health Commission issued the "Key Points for Correcting Unhealthy Trends in the Field of Pharmaceutical Purchase and Sale and Medical Services in 2024". It mentioned that the focus should be on the management of the "key minority" and key positions of medical institutions such as "famous hospitals" and "famous doctors", and the focus should be on punishing those who use business to "eat from doctors" or instruct their relatives and friends, and accept kickbacks from suppliers. [The State Council appoints Hua Chunying as Vice Minister of Foreign Affairs] According to the website of the Ministry of Human Resources and Social Security, the State Council appoints and removes state personnel. Appoint Hua Chunying (female) as Vice Minister of Foreign Affairs. Qu Yunhai is removed from the post of Deputy Director of the National Immigration Administration (Exit and Entry Administration of the People's Republic of China). [Heads of state of Bahrain, Egypt, Tunisia, and the United Arab Emirates will visit China] Foreign Ministry spokesperson Hua Chunying announced: At the invitation of President Xi Jinping, King Hamad of Bahrain, President Sisi of Egypt, President Said of Tunisia, and President Mohammed of the United Arab Emirates will pay a state visit to China from May 28 to June 1 and attend the opening ceremony of the 10th Ministerial Conference of the China-Arab States Cooperation Forum. [Banks in 19 cities in Guangdong officially implement the new mortgage policy]According to Southern Plus, banks in 19 cities in Guangdong have officially fully implemented new housing loan policies. On May 24th, the Guangdong market interest rate pricing self-discipline mechanism, following the principle of policy implementation tailored to local conditions, adjusted the differentiated housing credit policies for Zhuhai, Shantou, Foshan, Shaoguan, Heyuan, Meizhou, Huizhou, Shanwei, Dongguan, Zhongshan, Jiangmen, Yangjiang, Zhanjiang, Maoming, Zhaoqing, Qingyuan, Chaozhou, Jieyang, and Yunfu, a total of 19 cities. Reporters learned from more than 10 mainstream commercial banks in Guangdong that the banking industry in Guangdong has quickly followed the new housing loan policies, making corresponding adjustments to the minimum down payment ratios for housing loans in the 19 cities. At the same time, banks have followed suit in canceling the lower limits for housing loan interest rates in the 19 cities. Looking at the main banks, the current lowest first-time housing loan interest rate in the 19 cities is 3.15%, and the lowest second-time housing loan interest rate is 3.55%. Industry insiders believe that as the 19 cities have achieved marketization of housing loan interest rates, there will be further room for the interest rates to decrease.