In today’s briefing:
- Ohayo Japan|”Past Peak Rate” View Spur Equity Bid; JAPAN X: Tokyo’s Condo Prices Reach Record High
- US Banks – Weekly Data: Mortgage Loan Rates A New High, Loan Volume Index Approaches 1990 Further
- China TMT Update-Douyin/Baba/JD/3690.HK/9699.HK-Meituan’s Cooperation with SF Intra-City
- China TMT Update-Zlab/BILI/Tencent/NetEase-The Latest Batch of Game Code/Umamusume: Pretty Derby
- [Blue Lotus Entertainment Sector Update]: NetEase Has Better Pipeline in Gamescom-Cologne
- 10 Drugs To Come Under First Round of Medicare Price Negotiations in US to Curb Inflation
- China Property – The Latest Signals In The Housing Markets: August 2023
Ohayo Japan|”Past Peak Rate” View Spur Equity Bid; JAPAN X: Tokyo’s Condo Prices Reach Record High
- OVERSEAS. Past Peak Rates – Equities continue upward trajectory; 9/11 SPX sectors up as Tech leads; Yields down post weaker than expected ADP Employment; More China Measures for Economy
- JAPAN. NKY Futures +0.2% vs Cash; USDJPY 146.3; MOF FY24 Budget ~30trillion, +10.7%YoY; BOJ Board Member: BOJ May normalize in 2024; Govt Extends Gasoline Subsidy Program
- JAPAN X: Tokyo’s Condo Prices Break Decades-Old Records, being fueled foreign buying spurred by weaker yen. Potential Boon for Tokyo Focused Developers-IF they can secure labor and keep GPM
US Banks – Weekly Data: Mortgage Loan Rates A New High, Loan Volume Index Approaches 1990 Further
- Weekly data to 23 July in the US shows 30 year fixed mortgage rates hitting new highs at 7.23%
- The past two weeks show mortgage rate increases accelerating, and up 45bps from 20 July data
- Mortgage loan volume index is approaching 1990, weekly purchases index continues downward
China TMT Update-Douyin/Baba/JD/3690.HK/9699.HK-Meituan’s Cooperation with SF Intra-City
- ” EastBuy 东方甄选 ” is conducting live broadcasts on Taobao.
- JD.com officially launches the upgraded ” Spring Dawn Plan “
- 3690.HK/9699.HK/JD: Meituan announces cooperation with SF Intra-city and others (+/+/-)
China TMT Update-Zlab/BILI/Tencent/NetEase-The Latest Batch of Game Code/Umamusume: Pretty Derby
- Novecure’s TTF Phase III trial failed to reach end point, negative for ZLAB （-）
- “Shining! Umamusume: Pretty Derby” launched by Bilibili on August 29
- NPPA recently released the latest batch of August approvals of game license
[Blue Lotus Entertainment Sector Update]: NetEase Has Better Pipeline in Gamescom-Cologne
- At the recent Gamescom-Cologne event, both Tencent and NetEase showcased their latest games. We believe that NetEase has a stronger game pipeline compared to Tencent.
- According to our estimates, the total annual gross billings from all the games showcased by Tencent should be around RMB 9-12 bn, while NetEase’s should be 10-13 bn.
- This accounts for approximately 6.3% and 15.6% of their respective gaming revenues in 2024. We maintain a buy rating for both companies, but NetEase remains our top pick.
10 Drugs To Come Under First Round of Medicare Price Negotiations in US to Curb Inflation
- On August 29, the Centers for Medicare & Medicaid Services unveiled list of 10 drugs, which will come for the first round of price negotiations under the Inflation Reduction Act.
- From June 2022 to May 2023, more than 8 million people covered by Medicare used these 10 drugs, which accounted for more than $50B spending in Medicare Part D.
- The negotiated price will be effective on January 1, 2026. Most of the companies will not be significantly impacted by the drug price negotiation.
China Property – The Latest Signals In The Housing Markets: August 2023
- China housing metrics for July and August remained weak, in line with our forecast from December data, but watch out for some major data twists
- The new wave of policy easing responds to the re-weakening of the market since April, though the impact may not show quickly, as the Zhengzhou example illustrates
- Cities are quick to implement the new rules, including Shenzhen, Chengdu, and Guangzhou in the past few days
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
