In today’s briefing:
- Ohayo Japan |SPX Sells off on AI Rally Pause to Close May +0.3%;NUGGET: Seiko Epson-Headwinds Abound
- Short Note: What’s Happening to the Chinese Stocks and China Macro?
- China’s EV Industry Calls on Regulators to Curb the Back-Seat Driving
Ohayo Japan |SPX Sells off on AI Rally Pause to Close May +0.3%;NUGGET: Seiko Epson-Headwinds Abound
- OVERSEAS. SPX ,-0.6% overnight, manages +0.3% for May; Debt Ceiling Passage on Track; 2 Fed Officials express dovish view; Weak China Factory PMI puts a Damper on Sentiment
- JAPAN. NKY Futs -0.4% vs Cash; JP Equities Best Globally in May; USDJPY strenghtens after intervention warning; Bullish Daikin MTP growth plan; JP Autos rank worst in BEV transition ranking
- NUGGET. Revisiting our thesis on Seiko Epson in light of HP Inc(HPQ) 2Q earnings and IDC April report on PCs
Short Note: What’s Happening to the Chinese Stocks and China Macro?
- In this insight we reviewed what’s happened recently in China and caused the sentiment in the equity market to further deteriorate
- Despite corporate deliver solid earnings growth in Q1, sentiment is weak and market concern is on LT fundamental headwinds such as economic growth, LGFV debt, property downturn and unemployment
- Some sectors are trading at historical low valuation (property trading at 0.1 – 0.2x P/B), part of the risk is priced in.
China’s EV Industry Calls on Regulators to Curb the Back-Seat Driving
- Auto experts and industry executives in China are calling on regulators to explore a market-based approach to governing electric-vehicle (EV) makers’ manufacturing qualifications.
- The sector confronts an influx of inexperienced and ultimately unsuccessful firms amid the country’s push towards electrification.
- The success of China’s EV industry has been widely viewed as the result of years of Beijing’s supportive policies, including the use of subsidies to spur demand, and instruments such as a strict permit system to better manage capacity.
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