On June 24th, the three major A-share indices opened lower and then weakened with fluctuations. By the midday break, the Shanghai Composite Index fell by 0.70%, the Shenzhen Component Index fell by 0.79%, and the ChiNext Index fell by 0.61%. Sectors such as electricity, banking, and home appliances experienced slight declines; digital watermark, internet e-commerce, and micro-cap stock sectors led the decline. Over 4,800 individual stocks fell across the market.

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

**Electricity Sector Lifts During the Session, Xichang Power Surges to the Daily Limit**

Electricity stocks continued to rise towards the midday close. By the midday break, Xichang Power had surged to its daily limit, Leshan Power increased by nearly 9%, and other stocks such as Mingxing Electric Power, Dalian Thermal Power, and Huayin Electric Power followed suit.

East Wu Securities stated that in terms of the power grid, leading companies in the power equipment sector saw a general increase in orders in 2023. This year, power grid investment is expected to grow by 8%. The Energy Bureau has released plans for the construction of ultra-high voltage power grids to better accommodate new energy. Domestically, there is a significant cycle of demand for ultra-high voltage + new energy infrastructure, while overseas, there is demand for new energy + AI + power grid upgrades + manufacturing repatriation. Overseas power equipment companies have revised their revenue guidance upwards, the supply structure is stable, and the barriers to entering export channels are high. They continue to strongly recommend leading companies in the sectors of going overseas, flexible direct current, and ultra-high voltage.

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**East Group Hits the Daily Limit Down, Major Shareholder's Shares Forced to be Liquidated**

East Group hit the daily limit down, with the stock price reported at 0.9 yuan by the midday close. Recently, the stock price has continued to decline, recording two consecutive trading days of hitting the daily limit down, with a cumulative decline of over 44% within 20 trading days.

On June 21st, East Group announced that it had received a "Notice of Case Filing" from the China Securities Regulatory Commission (CSRC), which decided to file a case against the company for suspected violations of information disclosure laws and regulations. Currently, all business activities and operations of the company are proceeding as normal. During the investigation period, the company will actively cooperate with the CSRC's investigation and strictly fulfill its disclosure obligations in accordance with relevant laws and regulations.

On the same day, the company announced that due to debt default and a decline in stock prices, CITIC Securities forcibly liquidated some of the pledged shares of the major shareholder, Dongfang Runlan, on June 21st. As a result, Dongfang Runlan passively reduced its shareholding by 23.06 million shares, accounting for 0.63% of the company's total share capital.

According to the announcement, as of now, the actual controller of the company, Zhang Hongwei, the controlling shareholder East Group Co., Ltd., and its wholly-owned subsidiary Dongfang Runlan, as joint actors, collectively hold approximately 1.09 billion shares of the company, accounting for 29.79% of the company's total share capital.【Ministry of Finance: January-May, national general public budget revenue decreased by 2.8% year-on-year】

The Ministry of Finance released the fiscal revenue and expenditure situation for May 2024. From January to May, the national general public budget revenue was 9,691.2 billion yuan, a year-on-year decrease of 2.8%. After excluding the impact of special factors such as the carryover of tax payments deferred by small and medium-sized enterprises in the same period last year, which increased the base number, and the tail-end revenue reduction due to tax cuts introduced in the middle of last year, the comparable growth was around 2%. The stamp duty was 150.5 billion yuan, a year-on-year decrease of 18.6%. Among them, the securities transaction stamp duty was 43.9 billion yuan, a year-on-year decrease of 50.8%.

【Ministry of Finance: Actively studying and proposing a "package" of fiscal and tax policy measures to promote large-scale equipment renewal】

According to Securities Times, it has been learned from the Ministry of Finance that the Ministry is strengthening the coordination of financial policies to promote large-scale equipment renewal. The Ministry is actively studying and proposing a "package" of fiscal and tax policy measures, coordinating the arrangement of existing policies and new policies, making good use of various tools such as subsidy funds, government bonds, taxes, government procurement, and fiscal interest subsidies, and actively implementing them. At the same time, it insists on the linkage between central and local finance, urging various regions to introduce support policies according to local conditions.

Local financial departments have also actively introduced support policies and increased financial input in line with the actual situation and financial capacity of their regions. All 31 provinces (autonomous regions, municipalities) have issued implementation plans for their regions, using a variety of methods to support large-scale equipment renewal and the exchange of consumer goods for old ones, and some places have achieved preliminary results.

【Ministry of Finance: The subscription to ultra-long-term special treasury bonds is actively enthusiastic, and the issuance interest rate is basically equivalent to the secondary market yield】

According to Securities Times, it has been learned from the Ministry of Finance that as of June 14, the Ministry has issued four batches of ultra-long-term special treasury bonds totaling 160 billion yuan, including 40 billion yuan for 20-year terms, 85 billion yuan for 30-year terms, and 35 billion yuan for 50-year terms. Investors have actively subscribed, and the issuance interest rate is basically equivalent to the yield in the secondary market, with a positive and enthusiastic social evaluation.

Next, the Ministry of Finance will resolutely implement the decisions and deployments of the Party Central Committee and the State Council, and reasonably grasp the issuance pace of ultra-long-term special treasury bonds in combination with the needs of "two heavy" project construction and the bond market situation, to ensure the successful completion of the issuance tasks of ultra-long-term special treasury bonds.

【Li Deren and Xue Qikun win the 2023 National Highest Science and Technology Award】

The 2023 National Highest Science and Technology Award was announced in Beijing on June 24, with Academicians Li Deren and Xue Qikun receiving the prestigious honor in the Chinese scientific and technological community.Li Deren is a renowned photogrammetry and remote sensing scientist, who has been committed to enhancing the level of remote sensing and observation of the Earth in China. He has overcome the core technologies for global high-precision positioning and mapping through satellite remote sensing, solved a series of challenges in high-precision processing of remote sensing satellite imagery, and led his team to develop a fully automatic high-precision aerial and ground measurement system, making outstanding contributions to the construction of China's high-precision, high-resolution Earth observation system.

Xue Qikun is a prominent scientist in the field of condensed matter physics, achieving several leading and significant scientific breakthroughs. He led his team to experimentally observe the quantum anomalous Hall effect for the first time, which has had a significant academic impact internationally; he discovered enhanced high-temperature superconductivity at interfaces in heterojunction systems, opening up a new direction for international research in high-temperature superconductivity.

【National Bureau of Statistics: Pig (external three elements) prices unchanged month-on-month in mid-June】

Data from the National Bureau of Statistics shows that according to the monitoring of market prices for 50 key production materials in 9 major categories in the national circulation field, 13 products saw an increase in price, 31 experienced a decrease, and 6 remained unchanged compared to the first ten days of June 2024. Among them, the price of pigs (external three elements) was 18.6 yuan per kilogram, remaining unchanged month-on-month.