In today’s briefing:
- Good Morning Japan |VICTORY Declared as Bailouts Rule; NUGGET: ORIX-Riding the Zero-Carbon MegaTrend
- Automakers in China Are Racing to Slash Prices
- ZTO Express Q4/2022 Results & Guidance: Moderate Growth in ’23, but Also Obstacles
- Housing Market Slide Slows Amid Signs of Recovery
- China TMT Update (Mar.17): 1024.HK/BIDU/700.HK/NTES：Baidu ERNIE Bot Press Conference Is Held
Good Morning Japan |VICTORY Declared as Bailouts Rule; NUGGET: ORIX-Riding the Zero-Carbon MegaTrend
- OVERSEAS. Crisis Over !Bailouts from US to Europe, Stocks rally as Contagion fears wane; Major Banks rescue First Republic Bank; Swiss Central Bank protects Credit Suisse; ECB raises by 50bps
- JAPAN. NKY Futs flat vs Cash; USDJPY 133.8; Expect Japan Equities to start the road to recovery with macro fears subsiding; Japan-Korea move fwd on trade/security.
- NUGGET. Orix – one of the Biggest Renewables Plays in Japan. Riding the Decarbonization MegaTrend
Automakers in China Are Racing to Slash Prices
- Several major automakers in China are racing to slash prices on both new-energy (NEV) or conventionally powered vehicles, hoping to survive an escalating price war as consumer demand weakens amid policy changes.
- The price war intensified at the start of March, when state-owned Dongfeng Motor Group Co. Ltd. launched a promotion in its home province of Hubei by offering steep discounts on some of its models
- The promotion, which came two months after U.S. electric-vehicle (EV) giant Tesla Inc.’s eye-catching price cuts, set off a chain reaction across the industry
ZTO Express Q4/2022 Results & Guidance: Moderate Growth in ’23, but Also Obstacles
- ZTO Express (ZTO US) met consensus Q422 EPS estimate despite a miss on Revenue
- Management expects to exceed industry volume growth (around +10%) in 2023
- Likely obstacles to a sharp earnings recovery are: ASP momentum, “new-old” competition, and a lack of demonstrated cost control
Housing Market Slide Slows Amid Signs of Recovery
- China’s struggling property market is showing glimmers of improvement as the protracted decline in housing investment and sales slowed during the first two months this year
- Property investment by developers dropped 5.7% in the first two months of 2023, narrower than the 12% decline in December and the 10% slump for all of 2022.
- Housing sales also showed signs of recovery in the first two months. Total property sales by floor area fell just 3.6% from a year earlier, compared with a 24% decline for the whole of 2022
China TMT Update (Mar.17): 1024.HK/BIDU/700.HK/NTES：Baidu ERNIE Bot Press Conference Is Held
- 1024HK：China’s consumer rights gala exposes problems of livestreaming industry, Kuaishou receives a warning（-）
- BIDU：Baidu ERNIE bot press conference is held， there result is not promising（-）
- Gaming Industry: Game-related proposals during Two Sessions indicate positive attitude for gaming industry (+)
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