Original link: https://www.latepost.com/news/dj_detail?id=1718
People who shorted Nvidia lost 8 billion in a day
Most investors buy and hold stocks, hoping that the stock price will rise and they can profit from it, but there are also a few short sellers who bet on the market downturn and hope to make a fortune from the sharp drop in stock prices. Their long-term hunting targets include Tesla, Apple.
However, according to data from financial data company S3 Partners, based on current market capitalization, US stock shorts have lost a total of about US$120 billion this year. Of that, $72 billion was lost in the first 15 days of the month.
Betting against Tesla and Apple is a cliché, and this year there is a new face, Nvidia, that has made short sellers lose their money. So far, short sellers have shorted Nvidia’s return rate of -105%, and the scale of capital losses exceeds US$8 billion.
On the day of May 25 this year alone, Nvidia’s stock price rose by 24%, adding about 200 billion US dollars in market value (close to 1 Alibaba), causing the shorts to lose about 2.2 billion US dollars that day. During the year, Nvidia’s cumulative increase was nearly 200%, and its new market value was equivalent to the total market value of Tencent, Ali, Pinduoduo, and Meituan.
Some analysts have already shouted the slogan that Nvidia’s market value surpasses Apple’s. CJMuse, an analyst at investment bank Evercore ISI, said that with the development of artificial intelligence technology and the urgent need for servers, he would not be surprised even if Nvidia became the most valuable company in the world within a few years.
On the other hand, the big bears are still clinging to their pessimistic views on the market outlook. For example, Michael Wilson of Morgan Stanley believes that factors such as weakening government financial support, declining liquidity and low inflation will drag down the rise in US stocks in the second half of the year.
This is not the worst loss for the bears. At the beginning of 2020, short sellers controlled about 19% of Tesla’s outstanding shares. At that time, they generally felt that Tesla was overhyped and would lose to the transformed traditional car companies sooner or later. However, with the rapid increase of the Shanghai factory and Model 3 production capacity, Tesla’s stock price has risen more than 7 times during the year, and the company’s market value and Musk’s wealth have all been on the rocket. The shorts “surrendered” and were forced to buy more expensive shares to cover their positions — which in turn continued to drive Tesla’s share price higher, eventually losing a record $40 billion. (Qiu Hao)
How did cars sell during the economic downturn in Japan?
After three years of high-speed growth, the Japanese auto market peaked in 1991. The number of new car registrations fell by 4.59% that year. The shrinking domestic demand accompanied by aggressive production plans in the early stage further exacerbated the imbalance between supply and demand. Only the largest companies have capital Get through that period.
At that time, Toyota’s passenger car sales in Japan plummeted to 1.728 million (1991) from 1.893 million the previous year. After 20 years this number dropped to 709,200. The number after the plunge that year became the peak.
Toyota’s situation represents the overall sales trend of passenger cars in Japan. The number of new car registrations in Japan has fallen by an average of 1% per year since 1990, with an average annual registration of 4.36 million vehicles. During this period, the year-on-year (constant price) growth rate of Japan’s GDP fluctuated between -5.7% and 5.3%, with an average growth rate of less than 1%, and the national net per capita income (current price) fluctuated between US$30,000 and US$40,000.
The performance of automobiles has underperformed the national economy, and the market slump has accelerated industry consolidation. Renault’s holding of Nissan in 1999, Toyota’s continuous holding of Daihatsu and Hino Motors, and Isuzu’s withdrawal from the sedan market all occurred against this background.
The Japanese who continue to buy cars also have to weigh the debts they bear, which has led to major changes in their car preferences. The medium and large luxury cars that originally occupied 70% of the passenger car market have been replaced by recreational vehicles, station wagons and minivans. Car models are gradually replaced. According to data from the Bank for International Settlements, the leverage ratio of Japanese residents reached 68.3% in 1990.
A report by Nomura Securities Research Institute on consumption trends during the economic downturn in Japan recently became popular in April this year. This report tried to explain how the Japanese born between 1971 and 1974 promoted the consumption downgrade after the 1990s and why it was their generation.
According to the report, this group of people was born in a slowing economic environment, and due to the large number of peers, there was a greater pressure to go to school, and then they caught up with the “employment ice age” when they first entered society, so they had to save money by increasing their savings. , Cutting expenses to adjust the impact of falling income, and tend to choose products with higher “cost performance” when consuming.
The next generation is in an environment where the overall economy does not rise or fall. As the population of Japan began to decrease after 2008, the pressure of this generation to go to school and get a job is much lower than that of the previous generation. They do not buy cars, drink alcohol, or travel , the pursuit of the golden mean. (Gong Fangyi)
TikTok e-commerce self-operated business launched in the UK
In recent weeks, British users have been able to see a shopping channel called “Trendy Beat” on TikTok, which can buy all kinds of small products that have become popular through short videos, from cleaning tools to hair gluers. This is the self-operated business of TikTok UK e-commerce. TikTok said that these items are produced by cooperative suppliers, and that the shopping function is in the early testing stage.
According to people familiar with the matter quoted by the media, TikTok imitated Amazon’s e-commerce, using data analysis to learn which products are more popular, and then purchase or manufacture them themselves, and get all the sales proceeds of “Trendy Beat”. Previously, TikTok’s shelf e-commerce was mainly composed of third-party sellers, and the platform charged commissions.
Yibang Power reported in May that TikTok e-commerce has formed a project team code-named “S” (short for Store) to follow the example of Temu in launching a self-operated “full hosting” model. According to the latest report, the S project is led by Kang Zeyu, the head of TikTok e-commerce, and reports to TikTok CEO Zhou Shouzi. Kang Zeyu has recently rushed from Shanghai to the London office to organize work.
TikTok also poached employees from SHEIN. Some employees revealed that ByteDance imitated SHEIN to launch three cross-border e-commerce applications before, but all failed. Now they realize that they should directly build their own brand in TikTok. A person familiar with the company’s UK strategy said that Kang Zeyu admired the Temu model and believed that Temu’s success could be replicated by intervening in the supply and sales links.
Strategic adjustments have brought about a series of changes. According to reports, TikTok recently reorganized its e-commerce business, including suspending its expansion and refocusing on the UK, US, and Southeast Asian markets where its e-commerce business has been launched. Some Spanish employees were told to move to London.
“Wandian Finance” also learned that the original plan to launch e-commerce in Brazil in the first half of the year has stopped, and relevant employees have also been transferred. Prior to this week, the US market, which was worried about compliance risks, will be the focus of investment in TikTok e-commerce next. (Lin Guangying)
Buying electric cars may have to pay taxes in 2024
On June 21, China announced a series of new measures to support the development of new energy vehicles. The core is to extend the purchase tax exemption period from the original end of 2023 to the end of 2027. However, when the penetration rate of electric vehicles is stable at about 30%, the purchase tax reduction and exemption will also begin to “regress”.
As far as all new energy vehicles are concerned, as long as they meet the regulations of the Ministry of Industry and Information Technology, they will be exempted from 2024 to 2025 and halved from 2026 to 2027. Officials expect an overall tax cut of 520 billion yuan.
As far as new energy passenger vehicles are concerned (cars, SUVs, MPVs, etc.), purchase tax reductions of up to RMB 30,000 will be exempted from 2024 to 2025, and RMB 15,000 will be exempted from 2026 to 2027.
- The purchase tax rate is 10%, multiplied by the car price excluding value-added tax, to obtain the purchase tax.
- Prices quoted by Chinese car dealers include value-added tax (13%), so to calculate the purchase tax, you must first calculate the purchase tax by 1.13 to get the tax-free price, and then multiply it by 10%.
- If you want to buy a car from 2024 to 2025 without purchase tax, the price of the car should not be higher than 339,000 yuan (33.9/1.13*10% = 30,000 yuan).
- In the same way, if you buy a car from 2026 to 2027 without paying the purchase tax, the price of the car cannot exceed 169,500 yuan. (Gong Fangyi)
OTHER NEWS
The chairman of Singapore’s sovereign wealth fund said that it will continue to expand investment cooperation with China.
On June 19, Lim Boon Hing, Chairman of Singapore Temasek Company, received a meeting with Yang Yinkai, Deputy Director of the National Development and Reform Commission. Yang Mengkai looked forward to Temasek’s continued expansion of investment and cooperation with China in the future. Lim Boon Heng said that Temasek attaches great importance to strengthening cooperation with China in the fields of digitalization, medical care, new consumption, and sustainable development. According to Temasek’s 2022 annual report, Temasek’s invested companies include Vanke’s warehousing and cold chain logistics brand Wanwei Logistics, hydrogen fuel cell developer Jethydrogen Technology, and digital marketing technology company Weiwei.
All fixed parking spaces in the newly built community need to build charging piles or reserve installation conditions.
Ou Hong, deputy secretary-general of the National Development and Reform Commission, said on June 21 that newly-built communities must follow the requirements for the construction of charging infrastructure facilities to ensure that all fixed parking spaces are equipped with charging piles, or reserve installation conditions. The policy also requires that the completed residential quarters should be equipped with fixed parking charging piles. According to the current garage building design requirements, the charging piles in the underground garage of the community only need to be arranged according to 10% of the total number of parking spaces. Adding more charging piles to the built-up community will require the replacement of cables and transformers.
In the first half of this year, a total of 522 domestically produced games were approved, exceeding the number of batches obtained in the whole of last year.
The State Press and Publication Administration released the approval information for domestic online games in June this year. A total of 89 games were approved. In the first half of this year, a total of 522 domestic games were approved, exceeding the total number of game licenses issued last year. The games that have obtained the version number this time include “Sixteen Tones of Yanyun” under NetEase, and “Yuanguang 84” under Lilith Games. Since December last year, the version number of domestic games has been stable at more than 80 for seven consecutive months.
The price of Japanese pearls has doubled compared to before the epidemic.
In 2022, the trading price of Japanese pearls will be about 1951 yen (about 100 yuan) per gram, a year-on-year increase of 70%, which is about twice that of 2019. In addition to being affected by the depreciation of the yen, the shellfish of cultured pearls died of the virus, which made the supply tight. In addition, global demand is on the rise, for example, the Chinese used to like gold and jade most, and now they also like pearls. On Xiaohongshu, a pearl purchase guide ranked at the top received over 1,000 likes, and a similar jade science guide received nearly 4,000 likes.
The China Securities Regulatory Commission proposed 12 measures to implement the bond registration system.
The China Securities Regulatory Commission issued the “Guiding Opinions on Deepening the Reform of the Bond Registration System”, which made systematic institutional arrangements for deepening the reform of the bond registration system. 12 measures in four aspects to crack down on bond violations according to law.
The “Guiding Opinions” highlights the five characteristics of the bond registration system: strengthening information disclosure requirements focusing on solvency, improving the investor protection system, further improving the financing convenience of high-quality enterprises, tightening the responsibilities of intermediary agencies, and smoothing the clearance of defaulted bonds channel.
CICC may withdraw from Cainiao IPO.
According to media reports, Cainiao will adjust its investment bank lineup for its Hong Kong IPO. CICC may withdraw due to conflicts of interest. It is one of the joint sponsors of Cainiao’s competitor Jitu Express. Discussions are still ongoing, and it’s uncertain who will eventually join. At present, Cainiao and several investment banks have not responded. The Hong Kong Stock Exchange is expected to list at least three large Chinese logistics companies this year, including Cainiao, SF Express, and Jitu.
The “third arrow” of the real estate rescue policy came into effect, and China Merchants Shekou was approved to issue shares.
China Merchants Shekou has been approved to issue shares and plans to raise RMB 8.5 billion, which is considered to be the first “launch” after the release of the “third arrow” of the bailout policy. The three arrows refer to supporting credit, focusing on bonds, and equity financing. In addition, the private placements of Fuxing Co., Ltd., CCCC Real Estate, Lujiazui, and Poly Development have all been approved.
The ex-wife of the actual controller of “AI concept stock” Kunlun Wanwei fell to the limit after reducing its shareholding.
The Shenzhen Stock Exchange issued a letter of concern to Kunlun Wanwei, requesting to explain whether the company and related personnel had used market hotspots to manipulate the stock price and cooperate with Li Qiong’s reduction of holdings. Subsequently, the company’s stock price fell by more than 20%. Li Qiong mentioned in the letter of concern is the third largest shareholder of Kunlun Wanwei and the ex-wife of the actual controller of the company. After Kunlun Wanwei announced the acquisition of Singularity AI, she reduced her holdings by 3% and lent part of the reduced funds to the company. The identity extends from shareholder to creditor. Affected by the popularity of AI, Kunlun Wanwei’s stock price has more than tripled this year.
From January to May, China Evergrande delivered a total of 122,000 houses.
China Evergrande announced its business progress in the first five months:
- 677 sold and undelivered projects have effectively resumed work;
- From January to May, the group delivered a total of about 122,000 houses, with a total construction area of about 13.89 million square meters;
- Realized the contracted sales amount of RMB 33.767 billion and the contracted sales area of 4.9258 million square meters;
- Hengchi 5 cars have delivered more than 1000 units.
Compared with last year’s information update announcement, the resumed projects, contracted sales amount, and contracted sales area in the first five months of this year all exceeded the data in the first 11 months of last year, and the number of houses delivered was nearly half of that in the first 11 months of last year.
South Korea’s investment in China shrank in the first quarter.
According to data from the Ministry of Strategy and Finance of South Korea, the total direct foreign investment of South Korean enterprises in the first quarter of this year was US$16.49 billion, a year-on-year decrease of 41.6%. In terms of investment destinations, the largest investment destination, the United States, fell 6.2% year-on-year to US$8.53 billion, while investment in China dropped from US$6.2 billion last year to US$670 million. The decline in investment is closely related to semiconductors, the country’s pillar industry. The investment and expansion progress of major memory chip manufacturers Samsung and Hynix have slowed down due to weak industry demand.
Tencent, Ant, and JD.com successively disclosed the progress of large models.
Yesterday and today, Tencent, Ant and JD.com successively disclosed the latest progress of their self-developed large models. Yesterday afternoon, Tencent Cloud released the Tencent Cloud MaaS (Model-as-a-service, Model as a Service) service solution for enterprise customers. Ant Group responded to market rumors today, saying that it is self-developing a language and multimodal large model named “Zhenyi” internally. Jingdong also said today that it will officially release the Jingdong model on July 13.
Rich Americans are buying watches again.
The export value of Swiss watches in May increased by 14% year-on-year to 2.3 billion Swiss francs (about 2.6 billion US dollars). China’s export value continues to more than double, but it is still 10% lower than the same period in 2021. In addition, Swiss watches’ exports to the United States, the largest market, fell for the first time in more than two years in April, and the growth rate returned to 9.8% in May. Analysts believe that wealthy Americans may gradually get rid of the haze of economic instability and “live in the moment” again.
Musk said Tesla will enter the Indian market as soon as possible.
After meeting with Indian Prime Minister Modi on June 20, Tesla CEO Musk said that Modi hopes that Tesla will invest in India’s electric vehicles and commercial space, and that Tesla will enter the Indian market as soon as possible. He also wants to establish satellite internet service Starlink in India. Tesla executives traveled to India in May to discuss building a car and battery manufacturing base with the government, and Musk called India an interesting option for a new Tesla factory.
The Pirelli CEO candidate backed by Sinochem has left.
Sinochem-backed CEO candidates have left the company after the Italian government barred Sinochem from naming Pirelli’s new CEO. Sinochem Group is the largest shareholder of Italian tire manufacturer Pirelli, owning 37% of its shares and 60% of the board of directors. However, the Italian government has restricted Sinochem Group’s rights in appointing CEOs, operations and finances out of national interests. . Sinochem Group invested in Pirelli in 2015. This tire company specializes in the production of high-end tires for car brands such as Ferrari, Porsche and BMW, and is the sole supplier of F1 racing cars.
Softbank will restart investment with artificial intelligence as the core.
SoftBank Group CEO Masayoshi Son announced at the shareholder meeting held on June 21 that SoftBank will restart investment and continue to focus on artificial intelligence-related businesses as investment centers. Softbank’s Vision Fund lost $39.8 billion last year and sold Alibaba shares to make up for the loss. This has allowed Softbank to limit its own investment activities in the past year. Sun Zhengyi himself has hardly spoken out for half a year. Son said SoftBank has invested billions of dollars in hundreds of artificial intelligence companies.
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