In today’s briefing:
- Ohayo Japan | November Rally Takes a Rest; ValueAct Finds Value in Recruit
- Affordable Luxury: A Look Into Chinese Luxury (Part III)
- [Blue Lotus Daily] BABA/JD/PDD/1024.HK/ZTO/1519.HK/BIDU/Tencent 700.HK
- Chinese Airlines: Well Placed for a Reversal
- [Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR
- China Property Developers In Distress – Weekly News & Announcements Tracker | Nov 10-16, 2023
Ohayo Japan | November Rally Takes a Rest; ValueAct Finds Value in Recruit
- Overseas: SPX +0.1% , Nasdaq +0.1%; Relatively stable day. Walmart stock -8% on cautious outlook, Burberry -9% on weak luxury spend
- Today: NKY Futs -0.1% v cash. JPY 150.8/$; Japan to scrap quarterly reporting? Asahi Group Share Offering
- ValueAct’s investment into Recruit highlights continued opportunities and value in the Japanese market
Affordable Luxury: A Look Into Chinese Luxury (Part III)
- Thanks to the rapidly expanding middle class, increasing incomes, and a strong desire for luxury, Chinese consumers are often seen as the embodiment of the luxury industry’s promising future
- However, the market has seen competition intensify: Not only are international brands competing against each other, but the rise of domestic brands has brought the competitive landscape to another level
- Since this summer, investors have been concerned by a shifting Chinese landscape in the context of the current economic situation
[Blue Lotus Daily] BABA/JD/PDD/1024.HK/ZTO/1519.HK/BIDU/Tencent 700.HK
- BABA/ JD/ PDD/ 1024.HK/ ZTO/ 1519.HK: Double 11 eCommerce update (+)
- BABA/BIDU/700HK: Alibaba Cloud crashed for several hours during the weekend (-/+/+)
- On November 12, 2023 Alibaba Cloud reportedly crashed for several hours, and in the process resulted in outages for Alibaba services and customer websites that stopped functioning properly.
Chinese Airlines: Well Placed for a Reversal
- The Chinese airlines are best placed to ride on lower US interest rates and the induced weakening of USD given heavy USD debt, which amounts to 17.7% of the total.
- A 1% drop in USD interest rates will save Rmb1.2bn, and this is more than the total profit they have generated in 9M23. FY24 will be a big swing year.
- This is an overlooked sector as their share prices have dropped by an average of 21.8% YTD. However, profits turned around and revenue surged tremendously in the period.
[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR
- ATAT: Atour Group launches new version of Atour 4.0, higher price with better return(+)
- XPEV/NIO/LI: Huawei Chery Luxeed announce specs and pricing, impacting mostly high end sedans (-)
- 981.HK/ 1347.HK/ ACMR: China lithography supplier planning A-share listing (+)
China Property Developers In Distress – Weekly News & Announcements Tracker | Nov 10-16, 2023
- A weekly curated selection of Chinese news articles and company announcements focused on developers in distress
- We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
- We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources
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