To The Moon

1. China steps up measures to boost its real estate sector by approving 50 developers qualified to receive financing support.

Financial regulators in China are drafting up a list of 50 private and state-owned real estate companies that will be eligible to avail of financing through a variety of methods. These include direct loans, looser debt limits, as well as the ability to finance through issuance of equity (i.e. share sales). The list could include China Vanke, Seazen, and Longfor, which have all seen their shares trimmed to a fraction not their previous highs on concert of over leverage and a slowing domestic market. This list could be related to the RMB 1 trillion in low-cost financing that Beijing announced last week directed at homebuyers. It appears that Beijing is approaching the property market situation with more urgency than before. $Global X MSCI China Real Estate ETF(CHIR)$ $Country Garden Holdings Co., Ltd.(CTRYF)$ $China Resources Land Ltd.(CRBJF)$

2. Foreign Direct Investment in China fell nearly 10% so far this year in a challenging macro environment.

The Chinese Ministry of Commerce reported that during the first 10 months of 2023, FDI totaled RMB 987 billion (US$136 billion), or down 9.4% compared to the same 10 months a year ago. This was a worsening from the 8.4% year-to-date decline in FDI reported during the first 9 months of the year, indicating that October saw another steep decline. However, the number of new foreign-invested enterprises set up in China grew 32.1% to 41,947 during the 10 month period. This means more companies are still keen on investing in China but their amounts are significantly lower than a year ago, perhaps due to geopolitical tensions and a weaker global environment. $iShares MSCI China ETF(MCHI)$ $KraneShares Bosera MSCI China A 50 Connect Index ETF(KBA)$ $KraneShares CICC China Leaders 100 Index ETF(KFYP)$ $iShares China Large-Cap ETF(FXI)$

3. China’s newborn population is expected to drop 10% to less than 9 million in 2023.

In one of the more optimistic scenarios, the number of newborns in China this year is seen falling to another low of less than 9 million compared to 9.56 million last year. That’s after having fallen by 40% over the past five years when it was 17.6 million back in 2017. This alarming rate of decline in the newborn population is a result of several factors, including rising cost of living, the COVID pandemic, and changing lifestyles among young couples. This will pose a dilemma for the country’s rapidly aging population, as there aren’t enough young people to take care of the elderly. It will also open up opportunities in businesses such as nursing homes, while creating stronger demand for healthcare professionals and AI-enabled elderly monitoring.

4. Alibaba Holdings was subject to a nasty layoff rumor in Hong Kong today.

Rumors spread in online forums and social media channels in China that Alibaba was about to lay off 25,000 employees. The company immediately refuted these rumors as false and reported the incident to authorities for investigation. Alibaba’s shares suffered from heavy selling last week shortly after the company announced better-than-expected 3rd quarter results. News of its founder’s (Jack Ma) family trust filing its plan to dispose 10 million ADR shares around November 21, as well as the cancellation of the company’s planned spin-off of its Ali Cloud business, killed sentiment and drove the share down below its IPO price. $Alibaba(BABA)$ $Alibaba(09988)$ $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ $JD.com(JD)$ $JD-SW(09618)$ $Pinduoduo Inc.(PDD)$ $Bilibili Inc.(BILI)$ $BILIBILI-W(09626)$ $MEITUAN-W(03690)$ $MEITUAN(MPNGY)$ $CSI China Internet ETF(KWEB)$

5. BYD official launched its campaign to dethrone Tesla in the luxury end of the EV market.

China’s leading electric vehicle manufacturer launched its premium Sea Lion brand with the first model, the Sea Lion 07, directed at Tesla’s premium Model Y product. The Sea Lion 07 is a full-electric SUV that will retail for the equivalent of $27,900 to $36,300 in China. The Model Y starts at around $37,000. BYD also launched its premium luxury SUV, the Yangwang U8, last month at a hefty price tag of $150,000 equivalent. And it already has over 30,000 orders with deliveries already being made. It will be a significant feat should BYD successfully penetrate all segments of the booming EV market - something no other automaker has achieved thus far. $Boyd Gaming(BYD)$ $BYD COMPANY(01211)$ $GEELY AUTO(00175)$ $Geely Automobile Holdings Ltd.(GELYY)$ $Li Auto(LI)$ $LI AUTO-W(02015)$ $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ $Tesla Motors(TSLA)$

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