Jiwei Index rose 6.60%; SMIC plans to list on the Science and Technology Innovation Board; Changdian was sued

As of the close of May 6, the Shanghai Composite Index rose 0.63% to 2,878.14 points, with a turnover of 303.89 billion yuan (the turnover on the previous trading day was 277.44 billion yuan); the Shenzhen Component Index rose 1.51% to 10,883.22 points, with a turnover of 417.22 billion yuan (the turnover on the previous trading day was 401.657 billion yuan); the ChiNext Index rose 1.97% to 2,110.27 points.

Judging from the market, the photoresist, agricultural planting, and rare earth permanent magnet sectors performed strongly, while the scenic spot tourism, hotel and catering, and airport and shipping sectors performed relatively weakly.

The semiconductor sector led the gains. Jiwei.com selected 108 semiconductor companies from the fields of electronic components, materials, equipment, design, manufacturing, IDM, packaging and testing, and distribution for statistics, and their total market value rose by 6.49%.

Among the 108 semiconductor companies, only *ST Dagang saw a decline in market value. Previously, Dagang shares were subject to a special treatment of "delisting risk warning" due to two consecutive years of losses. Among the rising companies, 15 companies rose by 10%.

*ST: The company has been operating at a loss for two consecutive years and has been issued a delisting warning.

Jiwei.com has launched the Jiwei Semiconductor Industry Index!

Jiwei Semiconductor Industry Index, referred to as Jiwei Index, is a stock index launched by Jiwei.com to reflect the overview and operating status of the semiconductor industry in the securities market, and to help investors track the development of the semiconductor industry and use investment tools.

Jiwei.com observed and counted the overall performance of China's "core" listed companies in the A-share market over the past period of time, and referred to the company's total assets and revenue scale. It selected 30 companies from the sample library of 108 Jiwei.com semiconductor companies as components of the Jiwei Index.

The sample library covers all aspects of the semiconductor field, including electronic components, materials, equipment, design, manufacturing, IDM, packaging and testing, and distribution.

As of the close of May 6, the Jiwei Index closed at 4283.17 points, up 265.01 points from the previous day, an increase of 6.60%.

In terms of capital inflow/outflow, the semiconductor sector had the largest net inflow of funds, and the market performed well. According to data from Tonghuashun, the semiconductor and components, optical optoelectronics, special equipment, and computer equipment sectors had the largest net inflow of funds, while the securities, banking, media, and real estate development sectors had the largest net outflow of funds.

CITIC Securities said that as the epidemic in China is under control, economic activities have returned to normal. We expect the economy to recover further in May than in April, especially after the two sessions are held on May 22, policy support measures will be further implemented to support economic recovery. Monetary policy remains neutral and flexible, and fiscal policy will be the dominant market direction. After all the uncertainties in the first quarter report are eliminated, the second quarter will be the stage with the biggest month-on-month improvement throughout the year, and it will also be the best window period for investment in 2020.

Global News

On the 5th local time in the United States, US President Trump said in an exclusive interview with ABC that some people may die after states lift restrictions aimed at curbing the spread of the new coronavirus, and acknowledged that this is the choice made by the United States to reopen and restart the economy.

Data released by the German Federal Statistical Office on Wednesday showed that due to the impact of the COVID-19 epidemic, the country's manufacturing orders fell 15.6% month-on-month in March, the largest drop since records began in January 1991. This drop far exceeded market expectations of 10%. Among them, domestic orders fell 14.8% and foreign orders fell 16.1%.

Japanese Prime Minister Shinzo Abe announced that Japan's "state of emergency declaration" will be extended to May 31, and the applicable area will be nationwide. Previously, the Japanese government issued the "state of emergency declaration" on April 7 for a period of one month, which will expire on May 6.

In the Asia-Pacific region, as of the close of May 6, the Hang Seng Index rose 1.13%, the Nikkei 225 fell 2.84%, and the South Korean Composite Index rose 1.76%.

In the U.S. stock market, as of Tuesday (May 5), the Dow Jones Industrial Average closed up 133.33 points, or 0.56%, to 23,883.09 points; the Nasdaq Composite Index rose 98.41 points, or 1.13%, to 8,809.12 points; and the S&P 500 Index rose 25.70 points, or 0.90%, to 2,868.44 points.

U.S. stocks closed higher on Tuesday as news of the gradual lifting of blockades in the United States and Europe, the restart of economies and the rapid development of coronavirus vaccines boosted market sentiment. U.S. President Trump is considering tax cuts for companies in the next round of stimulus plans.

The Philadelphia Semiconductor Index rose 28.21 points, or 1.70%, to 1,689.50.

Looking at individual stocks, only TSMC, Intertek, and AMD fell in the Philadelphia Semiconductor Index, and the decline was less than 1%, while the rest of the companies rose. Among the companies with rising market capitalization, Silicon Labs and Skyworks Solutions rose by more than 5%, 7.86% and 5.11% respectively.

In Europe, as of Tuesday (May 5), the three major European stock indices generally rose, with the UK FTSE 100 up 1.66%, France's CAC40 up 2.40%, and Germany's DAX up 2.51%.

White House senior adviser Kevin Hassett said that the U.S. unemployment rate in April, which will be released this Friday, is likely to reach a record 20%, which is the worst result in the United States since the Great Depression in the 1930s.

Stock News/A Shares

Changdian Technology - Changdian Technology announced that Xindong Technology Co., Ltd. (hereinafter referred to as "Xindong Company"), registered in Samoa, filed a lawsuit with the Wuxi Intermediate People's Court regarding the contract performance dispute of the "Commissioned Chip Packaging Design and Processing Contract" signed between it and the company. The company received the "Notice of Response" on April 30, 2020. Xindong Company claimed that Xindong Company and the company signed the "Commissioned Chip Packaging Design and Processing Contract" in March 2018. The company provided chip packaging services to it. Due to the unqualified packaging quality, the chip could not work normally, causing it to lose $14.15 million in material costs, and the loss of chips and inventory wafers temporarily detained by the company reached $12.864 million, with a total loss of $25 million. Xindong Company claimed compensation from the company accordingly.

Zhonghuan Semiconductor - Recently, Zhonghuan Semiconductor issued an announcement stating that according to the needs of the company's differentiated technology implementation, the company has launched a high-efficiency shingled solar cell module smart factory project and plans to invest in Huanli Photovoltaic (Jiangsu) Co., Ltd. This investment in Huanli Photovoltaic will be funded by the company's holding subsidiary Huansheng Photovoltaic (Jiangsu) Co., Ltd. with a capital contribution of RMB 105 million and a wholly-owned subsidiary Zhonghuan Hong Kong Holdings Co., Ltd. with a capital contribution of RMB 450 million, for a total of RMB 150 million; Yixing Industrial Development Investment Co., Ltd. will contribute RMB 713.6665 million.

Hangjin Technology - Hangjin Technology announced that its wholly-owned subsidiary Changsha Shaoguang Semiconductor Co., Ltd. (referred to as "Changsha Shaoguang") already holds 27.66% of the shares of Wuhan Navigation and Location Services Industrial Technology Research Institute Co., Ltd. (referred to as "Wuhan Navigation Institute"). In order to further develop the company's chip business and enhance the company's overall competitiveness, Changsha Shaoguang plans to further increase its holdings.

Stock News/Other

Samsung - On the afternoon of May 6, Lee Jae-yong, vice chairman of Samsung Electronics and de facto head of Samsung Group, held a press conference to apologize to all citizens for illegal acts and union issues during the succession process. He read out the apology statement on the spot and bowed. It is understood that this apology was made at the request of Samsung's external compliance supervision committee. Lee Jae-yong is 52 years old and his father is Lee Kun-hee, the richest man in South Korea and the second-generation head of Samsung Group.

Intel - On May 4, Intel announced that it would acquire Israeli urban traffic data startup Moovit for US$900 million (approximately RMB 6.35 billion). This is Intel's third travel investment project in Israel. Previously, Intel spent US$15.3 billion (approximately RMB 108 billion) to acquire Israeli autonomous driving company Mobileye in August 2017, and acquired Israeli artificial intelligence company Habana Labs for US$2 billion (approximately RMB 14.1 billion) in December 2019.

SMIC - On May 5, SMIC announced that it would be listed on the Science and Technology Innovation Board. According to the announcement, the company's board of directors passed a resolution on April 30 to approve the proposed issuance of RMB shares and other matters. It is recommended that the initial number of RMB shares to be issued shall not exceed 1.686 billion shares, accounting for no more than 25% of the shares after this issuance. Over-allotment rights of no more than 15% of the initial issuance of RMB shares may be granted.