Stock Market News

- U.S. Market: The Dow Jones rebounded by 162 points or 0.41% to close at 39,331 points; the S&P rose by 0.62% to 5,509 points; the Nasdaq increased by 0.84% to 18,028 points; the Golden Dragon Index, reflecting the performance of Chinese concept stocks, rebounded by 0.78%.

- Hong Kong Market: The local stock market performed well in the second half of the year and on the first trading day of July, but the Hang Seng Index was blocked at the 18,000 point threshold. The Hang Seng Index closed up by 50 points at 17,769 points. The total turnover for the day increased to over 118.4 billion yuan. The Technology Index fell by 15 points, closing at 3,539 points, marking three consecutive trading days of decline.

- Mainland Market: The Shanghai Composite Index closed at 2,997 points, up by 2 points or 0.08%, with a turnover of 282.559 billion yuan. The Shenzhen Component Index closed at 8,812 points, down by 86 points or 0.97%, with a turnover of 362.067 billion yuan. The SSE 300 Index reported at 3,471 points, down by 6 points or 0.18%; the ChiNext Index reported at 1,665 points, down by 17 points or 1.05%.

Economic News

- The Hong Kong government's statistics department announced that the provisional estimate of the total retail sales value in May was 30.5 billion yuan, a year-on-year decrease of 11.5%, worse than the market expectation of a 10.8% drop. After excluding price changes, the total quantity of retail sales is estimated to have decreased by 12.9% year-on-year, also worse than the market expectation of an 11.8% drop.

- In the 2023/24 fiscal year, corporate interest payments reached a record $458 billion, a year-on-year increase of 24.4%. As Asian companies face economic headwinds, corporate debt levels in 2023/24 show differences. Thanks to strong profits and cash flow, which enable companies to deleverage, net debt levels in Hong Kong, Mainland China, and Taiwan have decreased; Singapore's borrowings are flat, as the increase and decrease in debt offset each other.

- Macau's gaming revenue has recorded year-on-year growth for 18 consecutive months. The Macau Gaming Inspection and Coordination Bureau announced that the gaming revenue in June was 17.694 billion Macau patacas, a year-on-year increase of 16.4%, but a month-on-month decrease of 12.4%. In the first six months of this year, the gaming revenue was 113.753 billion patacas, a year-on-year increase of 41.9%.

Company News

- China Construction Bank (00939) will promote salary cuts for employees this year, with an average reduction of at least 10% for the headquarter staff, with higher positions facing greater cuts. In addition to adjusting bonuses, base salaries will also be reduced.

- Xiaomi Group (01810)'s Xiaomi Automobile announced that the delivery speed of the SU7 has further accelerated. Xiaomi stated that the SU7 delivery has been progressing smoothly, with production divided into morning and afternoon shifts in June, with monthly deliveries exceeding 10,000 units. Starting from July 1st, the delivery of the SU7 series will be further accelerated. After locking in orders, the expected delivery cycle can be shortened by up to 5 weeks. Xiaomi also indicated that a new round of production line optimization and maintenance will be carried out soon to prepare for further capacity improvement, but it will not affect the target of continuous monthly deliveries exceeding 10,000 units in July.

- Xiaomi Group (01810)'s Vice President and CFO, Lin Shiwei, stated that the Hong Kong business performance was outstanding this year, with a year-on-year increase in revenue of over 50% in the first quarter, mainly due to the ideal sales of Xiaomi 14 Series. After Xiaomi TV was launched in Hong Kong at the end of last year, the sales volume also exceeded 5,000 units.

- Tencent (00700)'s Tencent Classroom announced that from next month, it will stop all online course access services. Users will not be able to access new course content, but they can continue to watch the historical free course content in the "Course Schedule"; the platform will cease operations on October 1st of this year, and all platform services will be completely stopped at that time.