In today’s briefing:
- LG Energy Bookbuilding: Detailed Results
- FTSE China A50 Index Ground Rule Change: Big Flows & Large Turnover in March
- Tesla’s China Syndrome Will Spread
- Tesla Cybertruck Delay Confirmed to Mid-2023—at Least.
LG Energy Bookbuilding: Detailed Results
- This IPO led to unusually high interest from local active funds. This is evidenced by the order volume
- Nevertheless, many local institutions must have felt burdened with LG Energy’s valuation, so they wanted to avoid setting the offering price above the upper end.
- As for the relatively poor lockup result, the issuer’s refusal to incentivize lockup to set the float rate to around 10% may also have played a part.
FTSE China A50 Index Ground Rule Change: Big Flows & Large Turnover in March
- A ground rule change will see Foreign Ownership Restrictions and Minimum Foreign Headroom Requirements applied to the FTSE China A50 Index (XIN9I INDEX) universe from the March rebalance.
- There will be plenty of stocks that will see their investability weight reduced. We estimate a one-way turnover of 15.2% and one-way trade of CNY 8.04bn due to the change.
- Bank Of Ningbo Co Ltd A and Will Semiconductor Ltd are locked in a race for index inclusion in March, while Chongqing Zhifei Biological Products (300122 CH) could be deleted.
Tesla’s China Syndrome Will Spread
- Tesla sold more cars in China in Q4 2021 than anywhere in the world.
- Model Y ramp-up continues, until it doesn’t, while Model 3 struggles even harder to keep up.
- Also true: Tesla is still losing market share in China—and every other key market.
Tesla Cybertruck Delay Confirmed to Mid-2023—at Least.
- Reuters confirmed the latest delay until mid-2023 for Cybertruck’s rollout.
- This is the latest in a string of pushed targets—won’t likely be the last.
- I suspect exciting new competition from more credible truck-makers may have chased Tesla back to the drawing board.
Before it’s here, it’s on Smartkarma
