Daily Macro Economy News on July 3

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International Crude Price Trend and Exchange Rate of RMB to USD Trend

Domestic News

1. Toread: We will continuously increase the overall revenue of the chip business through endogenous growth and outward expansion

2. Zhongtong Bus: Expected first-half net profit will be up 82%-137% year-on-year

3. Many major banks cut the interest rate on US dollar deposits, it is not appropriate to exchange foreign currency for high yield

4. The Domestic single largest annual output of 120,000 tons of lithium carbonate phase one project in Xinjiang is put into production

International News

1. The National Bank of Ukraine sold almost $12.5 billion from reserves since the beginning of the year

2. Arabian Pipes Company announces signing the contract with Saudi Aramco

3. AITO Wenjie set up a joint working group on sales and service

4. Agriculture Ministers of five Eastern European countries will discuss food security

More detials:

Domestic News

1. Toread: We will continuously increase the overall revenue of the chip business through endogenous growth and outward expansion

Toread said in the institutional research, the company determined to develop the “chip business + outdoor business” dual main business development strategy in 2021, the acquisition of Beijing Core Energy and G2 Touch company was aiming for the next-generation display technology Mini / Micro LED industry and touch IC industry respectively, and the chip business is aimed to become the leader of IC in the field of high-quality display. From the perspective of the development goal of the chip business volume, the company plans to continuously increase the overall revenue share of the chip business through endogenous growth and outward expansion, so that the two business volumes can be balanced as soon as possible, thereby consolidating the company's dual main business strategy.

2. Zhongtong Bus: Expected first-half net profit will be up 82%-137% year-on-year

Zhongtong Bus announced that it expects the net profit for the first half of the year will reach 40 million - 52 million yuan, an increase of 82% - 137% year-on-year. During the reporting period, the company adjusted its sales strategy to focus on advantageous products and showed increased sales of high-value-added products, especially the expansion of overseas exports

3. Many major banks cut the interest rate on US dollar deposits, it is not appropriate to exchange foreign currency for high yield

Recently, after the commercial banks reduced their RMB deposit rates one after another, major domestic banks such as the Bank of China reduced their USD deposit rates. The reporter learned in an interview that this is an active adjustment made by the banks after considering their own business strategies, changes in market supply and demand, and other factors, which are conducive to alleviating the problem of "inverted" interest rates on domestic US dollar deposits and loans. In addition, depositors involved in US dollar deposits also face the risk of exchange, exchange rate fluctuations or offset the gains due to deposit interest rate differential. (Resource: CBN)

4. The Domestic single largest annual output of 120,000 tons of lithium carbonate phase one project in Xinjiang is put into production

This reporter learned from the Development and Reform Commission of Xinjiang Province that on July 2^nd, the largest single domestic lithium carbonate phase one project with an annual output of 120,000 tons was put into operation in an Industrial Park in Ruoqiang County, Xinjiang Province, injecting strong momentum for the development of Xinjiang's new energy battery industry chain and cluster. The project, with a total investment of 4.6 billion yuan, will be started in September 2022, and will be built in two phases with the objective of balanced construction of the industrial chain of "mining, ore dressing, and smelting". After the completion of the second phase of the project, it will reach an annual output of more than 120,000 tons and achieve a sales revenue of more than 30 billion, while driving more than 1,500 people to employment. (Resource: CCTV News)

International News

1. The National Bank of Ukraine sold almost $12.5 billion from reserves since the beginning of the year

The National Bank of Ukraine (NBU) has sold $12.455 billion from reserves and bought $177.89 million since the beginning of 2023 according to Ukrainska Prawda. The National Bank of Ukraine uses reserve currency sales to counteract the pressure on the currency market caused by the issuance of the hryvnia, and it sells them also to balance the import and export markets to support the fixed exchange rate. (Resource: Sputnik)

2. Arabian Pipes Company announces signing the contract with Saudi Aramco

Arabian Pipes Company has been acquired an order to supply pipelines to Saudi Aramco on June 26^th, with a total value of approximately SR322 million, according to the Saudi Stock Exchange.

3. AITO Wenjie set up a joint working group on sales and service

We were informed by the company that AITO Wenjie issued an internal letter to all partners. In order to support the deeper and closer development of the joint business between Seres and Huawei, it was decided to establish the "AITO Wenjie Sales and Service Joint Working Group", which is responsible for the end-to-end closed-loop management of marketing, sales, delivery, service, and other businesses. This is regarded by the company as another milestone event for both sides to promote deeper cooperation.

4. Agriculture Ministers of five Eastern European countries will discuss food security

On July 1^st, Poland's Agriculture Minister Robert Telus said that a meeting of agriculture ministers from Poland, Slovakia, Bulgaria, Hungary, and Romania is scheduled to be held in Poland on July 19^th to discuss food security and Ukrainian agricultural products. Telus noted that it is urgent to protect the Polish market from the inflow of Ukrainian agricultural products, and the reason for calling the meeting together is that Poland and neighboring countries are suffering from similar conditions. At the same time, the Ukrainian agriculture minister will be invited to the meeting.

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