Market Review
Last week (April 4-april 8, 2022), the commerce and retail sector (Shenwan) fell by 2.51%, the Shanghai Composite Index fell by 0.94%, the Shenzhen Component Index fell by 2.2%, the Shanghai and Shenzhen 300 fell by 1.06%, and the commerce and retail sector lost the Shanghai and Shenzhen 300 by 1.45 percentage points, ranking 21st in the weekly rise and fall of Shenwan’s 31 primary sub industries.
Supply and demand were impacted in March
Caixin PMI hit a new low since March 2020. The supply and demand of manufacturing and service industries fell into the contraction period, and the service industry was even more impacted. In March, Caixin China’s manufacturing PMI was 48.1%, down 2.3 percentage points; The PMI of service industry was 42.0%, down 8.2 percentage points. It shows that the outlook of manufacturing industry is impacted by the outbreak of agglomeration epidemic and geographical conflict, and the service industry is more affected by this round of epidemic, with supply contracting and demand under pressure.
Gold prices continued to fluctuate at a high level last week. Due to the stalemate of the dispute between Russia and Ukraine and the landing of the Federal Reserve’s debt reduction plan, it is caused by the game of long and short factors.
Announcement of key companies
[JD] Mr. Xu Lei, President of the company, will succeed Mr. Liu qiangdong as CEO of JD group and join the board of directors of the company as an executive director. Mr. Liu qiangdong will continue to serve as the chairman of the board of directors and devote himself to the company’s long-term strategic design, major strategic decision-making and deployment, young leading talent training and Rural Revitalization. [ Hefei Department Store Group Co.Ltd(000417) ] in 2021, the company’s operating revenue was 6.338 billion yuan, an increase of 0.13% year-on-year; The net profit attributable to the parent company was 181 million yuan, a year-on-year increase of 31.95%; The non net profit attributable to the parent company was 94.951 million yuan, a year-on-year increase of 15.30%. [ Henan Huanghe Whirlwind Co.Ltd(600172) ] the proposed additional fund-raising shall not be less than 800 million yuan and not more than 1.05 billion yuan, which shall be fully subscribed by Changsheng Holdings under the actual controller of the company. The issuance price of this fixed increase is 7.14 yuan / share, which is nearly 23% lower than the closing price of 9.23 yuan / share on the day of the company’s announcement.
Key industry news
[JD] ① JD launched the “guaranteed fresh package” at home, covering the area within the outer ring road of Pudong in advance. ② Signing a contract with Xiamen Itg Group Corp.Ltd(600755) will rely on Xiamen Itg Group Corp.Ltd(600755) holding’s advantageous resources in diversified industrial chain and supply chain to cooperate with JD group in the construction of smart city in terms of data technology, artificial intelligence, Internet of things, blockchain and other technical capabilities. [Alibaba] confirmed that Jiang fan is no longer the chairman of Taobao and tmall. At present, Jiang Fan has no legal representative position. [prosperity preference] only Hunan, Jiangxi, Hubei, Guangdong and other provinces make profits. In order to pursue profits, many non core cities have been cut down.
Risk tips
Recurrence and spread of the epidemic; Macroeconomic downturn; Industry policy regulation exceeded expectations; Offline store expansion was lower than expected.
