DuPont China is under investigation by the State Administration for Market Regulation for suspected violations of the Anti-Monopoly Law. What are the specifics?

DuPont's Antitrust Investigation Shakes A-Share Market: Industrial Chain Upheaval in Chemicals and a Golden Opportunity for Domestic Substitution I. Core of the Incident: Three Key Facts on the DuPont Investigation (as of April 5, 2025) 1. Investigation Background - On April 4, the State Administration for Market Regulation announced the initiation of an antitrust investigation into DuPont China for suspected violations of the Anti-Monopoly Law, focusing on abuse of dominant market position in high-end engineering plastics (e.g., automotive polyamide, electronic-grade epoxy resins); - DuPont’s U.S.-listed shares plunged 12.75% that day—the largest single-day drop since 2020—erasing over USD 8 billion in market value. 2. Suspected Violations - Allegedly restricting downstream enterprises’ procurement channels via exclusive supply agreements (e.g., binding battery material suppliers in new-energy vehicles); - Failure to file a concentration of undertakings: Its 2023 acquisition of a German chemical company’s Chinese subsidiary was not legally reported. 3. Policy Context - On the same day, the State Council announced an additional 34% tariff on U.S. imports, covering chemicals, semiconductor raw materials, and other categories; - Since 2025, China has launched antitrust investigations against U.S. tech giants including Google and NVIDIA, signaling a systematic regulatory upgrade. II. Direct Impact on A-Share Industrial Chains 1. Short-Term Shock: Intensified Pressure for Import Substitution - Risk of critical material supply disruption: DuPont holds 35% of China’s automotive engineering plastics market, affecting supply chains of companies such as Great Wall Motor and BYD; - Northbound fund flows: Foreign capital net outflow exceeded RMB 12 billion on April 4; foreign-heavy stocks like Luxshare Precision and CATL faced downward pressure. 2. Structural Opportunities Emerge - Domestic substitution theme: - Engineering plastics: Kingfa Science & Technology (expanding automotive PA66 capacity),普利特 (breakthrough in LCP materials); - Electronic chemicals: Jianghuawei (photoresist ancillary reagents), Anji Technology (chemical-mechanical polishing slurry localization). - Countermeasure-benefiting sectors: - Rare-earth permanent magnets: Northern Rare Earth (rising price expectations for praseodymium-neodymium oxide), Xiamen Tungsten (high-end magnetic materials export substitution); - Agricultural seeds: Longping High-Tech (accelerated commercialization of GM corn). 3. Policy Dividends Unleashed - The Ministry of Industry and Information Technology convened an emergency meeting on April 5, announcing a RMB 20-billion special fund for new-material substitution, prioritizing “bottleneck” fields in the chemical industry; - Sci-Tech Innovation Board fast-track: Huamao Technology (photoresist) and Ruihua Tech (polyimide film) expedite IPO financing. III. Major Fund Flows and Retail Investor Strategies 1. Institutional Position Adjustment Path (per latest Dragon & Tiger List data) - Aggressive buying targets: | Target | Rationale | Net Buy Amount on April 4 | |---------------|--------------------------------|---------------|

How should we view the A-share market performance on April 7, 2025?

Two Major Events on Monday: Trade War Tariffs and DuPont Sanctions DuPont’s Antitrust Investigation Triggers a Butterfly Effect Across A-Shares: Who Is Taking Over the Multinational Giants’ "Cake"? I. Capital Logic Behind DuPont’s Stock Flash Crash On the evening of April 4, news of the State Administration for Market Regulation launching an antitrust investigation into DuPont China ignited the capital market. By the close of U.S. trading, DuPont (DD) stock plummeted 12.75%, wiping out over USD 10 billion in market value. This event, akin to dropping a boulder into the A-share pond, not only shook the market position of foreign chemical giants but also sent ripples across semiconductor materials and environmental technology sectors. From a financial perspective, DuPont China occupies a pivotal role in its global operations. In 2024, DuPont China’s semiconductor materials business accounted for 21% of its global revenue, with products such as CMP polishing pads and photoresists holding over 70% domestic market share. The antitrust probe may force contraction of its core businesses, while domestic firms are rapidly filling the market void through a “technology substitution + policy dividend” dual-pronged strategy. II. The "Domestic Substitution Banquet" in Semiconductor Materials 1. CMP Polishing Pads: Dinglong Co., Ltd.’s "Comeback Story" DuPont’s monopoly in CMP polishing pads directly threatens China’s chip industry security. As the sole domestic enterprise mastering the full-process technology, Dinglong Co., Ltd. (300054) has surpassed 30,000 polishing pads sold per month. Its Q3 2024 sales revenue surged 90% year-on-year. Its Wuhan base’s annual production capacity will expand to 480,000 units by 2025, potentially lifting its market share from 10% to 25%. More notably, Dinglong has achieved full self-sufficiency in core raw materials—including prepolymer and microspheres—completely breaking DuPont’s supply-chain blockade. 2. Photoresists: Jingrui Electric Materials and Nanjing University Optoelectronics’ "Dual-Leader Competition" DuPont’s extensive patent portfolio in photoresists once severely constrained domestic players. Jingrui Electric Materials (300655) has achieved large-scale mass production of i-line photoresists and now supplies top-tier wafer fabs including SMIC and ChangXin Memory. Its domestic market share rose to 15% in 2024. Meanwhile, Nanjing University Optoelectronics (300346) developed ArF photoresists supported by China’s National IC Industry Investment Fund—the first domestically produced high-end photoresist to pass customer validation. With expanded capacity coming online in 2025, it aims to capture 10% of the domestic market. 3. Semiconductor Packaging Materials: Qingyun New Materials’ Path to "Invisible Champion" Unlisted Qingyun New Materials’ flash-spinning ultra-material Kunlun™ has already replaced DuPont’s Tyvek® in medical packaging, capturing 12% of the global market. Its Nantong base achieves 15,000 tonnes of annual capacity, generating over RMB 1 billion in revenue in 2024—making it the world’s second-largest supplier after DuPont. Holding 56 core patents, this “unicorn” is challenging DuPont’s dominance in semiconductor packaging materials. III. "Eco-Restructuring" in Environmental Technology 1. Water Treatment Technology: Beijing OriginWater’s "Membrane-Based Breakthrough"

Goldman Sachs Lowers Price Target for DuPont de Nemours (NYSE:DD)

Sep 30, 2026

Goldman Sachs lowered its price target for DuPont de Nemours to $153 while maintaining a neutral rating. Despite this, DuPont reported strong quarterly earnings beating expectations with $1.88 EPS and $1.82 billion in revenue.

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