A-share evening hot topic | Tiger, Futu, and Changqiao will be fined! Eight departments jointly take action to regulate illegal cross-border securities and futures fund management activities.

1. Tiger, Futu, and Changqiao will be fined! Eight ministries jointly take action to rectify illegal cross-border securities and futures fund management activities. On May 22, the Securities Regulatory Commission issued an official announcement, stating that the Securities Regulatory Commission has initiated investigations and issued advance administrative penalty notices to Tiger Brokers (NZ) Limited (referred to as Tiger), Futu Securities International (Hong Kong), and Changqiao Securities (Hong Kong) and other related entities at home and abroad for their illegal operation of securities business within the country. In addition, as announced by the regulatory authorities on May 22, with the approval of the State Council, the China Securities Regulatory Commission, Ministry of Industry and Information Technology, Ministry of Public Security, People's Bank of China, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, Cyberspace Administration of China, State Administration of Foreign Exchange and other eight ministries have jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities and Futures Fund Management Activities." In addition, the Securities Regulatory Commission has also issued multiple important documents. Market professionals believe that this rectification is aimed at the illegal cross-border operations of foreign institutions and will not affect existing legal channels. Investors can still engage in overseas investment through channels such as Hong Kong Stock Connect, Qualified Domestic Institutional Investors (QDII) and Cross-Border Wealth Management Connect. At the same time, the plan adopts a phased approach to stop domestic services to guide investors in handling existing accounts and assets and does not restrict foreign institutions from providing trading services to domestic investors located overseas, with overall controllable impact on foreign markets. 2. Computing power giant Superfusion IPO accepted On May 22, Superfusion Digital Technology Co., Ltd. issued its prospectus, with CITIC SEC as the sponsor, expecting to raise funds of 8 billion yuan and planning to list on the ChiNext board of the Shenzhen Stock Exchange. The company intends to publicly issue no less than 97.81345 million shares and no more than 220.80262 million shares of A-shares common stock, accounting for a proportion of the total share capital after issuance: not less than 10% and not more than 20%. Based on this, the highest estimated valuation of the issuance is 80 billion yuan. 3. Two departments: Jointly implement more proactive fiscal policy and moderately accommodative monetary policy Recently, the Ministry of Finance and the People's Bank of China held the fourth meeting of the joint working group. The meeting emphasized that coordinated efforts of fiscal policy and monetary policy are beneficial to enhance the forward-looking, targeted, and effective nature of macroeconomic regulation, strengthen the efficiency of macroeconomic management and service to the real economy, better implement the overall requirements and policy orientation of the 2026 economic work. In the next step, the joint working group mechanism of the Ministry of Finance and the People's Bank of China will continue to play a role in communication and coordination, jointly implement more proactive fiscal policies and moderately accommodative monetary policies. 4. Ministry of Commerce hosts roundtable for foreign pharmaceutical companies On May 22, Ling Ji, Deputy Minister of Commerce and Deputy Representative for International Trade Negotiations, presided over the roundtable meeting for foreign pharmaceutical companies. Representatives from more than 50 foreign enterprises, including Sanofi, Novartis, Merck, Becton Dickinson, Gilead Sciences, Eli Lilly, and Danaher, attended the meeting. Ling Ji stated that the period of the 14th Five-Year Plan is a crucial time for promoting the construction of a Healthy China, creating immense opportunities for multinational pharmaceutical companies' long-term development in China. The Chinese government adheres to the people-centered approach, continuously improves the quality of medical products and services, enhances pricing mechanisms and regulatory systems, expands openness in related areas, and ensures national treatment for foreign companies in accordance with the law. 5. Several energy and power listed companies announce reductions In recent weeks, announcements of reductions have been frequent in the A-share market, with several energy and power listed companies also issuing announcements. Shanghai Electric Power Co., Ltd., Zhejiang Provincial New Energy Investment Group Co., Ltd., and Jiangsu Shemar Electric Co., Ltd. disclosed on May 22 that they plan to reduce their holdings between June 12 and September 11. 6. People's Bank of China: Will conduct 600 billion yuan MLF operation on May 25 On May 22, the People's Bank of China announced that in order to maintain ample liquidity in the banking system, on May 25, the People's Bank of China will conduct a 600 billion yuan Medium-term Lending Facility (MLF) operation through fixed quantity, bid-rate, and multi-price bidding method with a one-year term. With 500 billion yuan of MLF maturing in May, this means an additional 1,000 billion yuan of MLF will be added this month, compared to the reduction of 200 billion yuan in the previous month. 7. MiniMax, KNOWLEDGE ATLAS included in Hang Seng Tech Index On May 22, Hang Seng Index Company announced the results of its quarterly review, which showed that the Hang Seng Index will include Gogo Express, Aluminum Corporation Of China, BeOne Medicines Ltd., increasing the number of constituent stocks from 90 to 93. The Hang Seng Tech Index will include MiniMax and KNOWLEDGE ATLAS, remove KINGSOFT, and maintain 30 constituent stocks. In addition, the Hang Seng H-Share Index ETF index will include HANSOH PHARMA and AKESO, remove HAIER SMARTHOME, and maintain 50 constituent stocks. 8. Saudi media reports that the US-Iran agreement draft is "close to completion" According to a report by Saudi Arabian Arabia TV on May 22, the exclusive content of the agreement draft between the US and Iran "close to completion" includes achieving an immediate, comprehensive, and unconditional ceasefire on all fronts. The report also mentioned that the draft includes "negotiations within 7 days on unresolved issues" and "gradual lifting of US sanctions on Iran in exchange for Iran's compliance with the agreement." According to sources quoted by Arabia TV, the agreement will take effect immediately after being formally announced by both the US and Iran. 9. Hong Kong Securities and Futures Commission: Raise account opening standards! Crack down on forged documents and money laundering On May 22, the Hong Kong Securities and Futures Commission issued a circular stating the monitoring measures to be implemented when opening accounts and maintaining customer relationships. The circular was issued after the Securities and Futures Commission reviewed the account opening practices of 12 securities brokers. The review identified significant deficiencies, including inadequate due diligence on account opening documents, acceptance of suspicious or forged documents during account opening, and weaknesses in managing cross-border agency relationships with overseas intermediaries. The Securities and Futures Commission is concerned that improper use of customer accounts for suspicious or illegal transactions may increase money laundering and terrorist financing risks. Artificial intelligence and other sectors remain areas of focus for investment opportunities.