To The Moon

1. China eases home buying requirements for its top two cities to boost demand.

China’s real estate market regulators moved to ease down payment requirements in Beijing and Shanghai in a move to unlock demand for homes in the two key metropolises. First time homebuyers in both cities will be subject to a 30% minimum down payment, down from 35% to 40% earlier. Second time buyers’ minimum down payment will be lowered to 40% to 50% from 60% to 80%. It’s unclear whether these moves will stimulate demand in a significant manner. $Global X MSCI China Real Estate ETF(CHIR)$ $Country Garden Holdings Co., Ltd.(CTRYF)$ $COUNTRY GARDEN(02007)$ $China Resources Land Ltd.(CRBJF)$

2. The Institute of International Finance (IIF) expects capital outflows to continue in China next year.

In 2024, the US-based financial industry association comprised of 60 countries, estimates that China will suffer $65 billion worth of net foreign capital outflows. It cited geopolitical risks and changing investor sentiment as the factors to drive capital out of the country. But this runs contrary to net foreign buying of China’s government bonds for 9 straight months, with cumulative net buying of RMB 1 trillion year-to-date. With US rates expected to fall next year, the IIF may be too pessimistic in its outlook for China. $KraneShares CICC China Leaders 100 Index ETF(KFYP)$ $KraneShares Bloomberg Barclays China Bond Inclusion Index ETF(KBND)$ $KraneShares Bosera MSCI China A 50 Connect Index ETF(KBA)$ $Global X China Financials ETF(CHIX)$ $ISHARES CHINA CNY BOND UCITS ETF (DIST)(CNYB.UK)$

3. China’s expected to witness an AI content boom in 2023.

The size of China’s artificial intelligence-generated content (AIGC) is expected to reach RMB 10 trillion this year alone, according to the Ministry of Industry and Information Technology (MIIT). Growth in AIGC is being driven by manufacturing, retailing, telecommunications, and healthcare industries. And by 2035, AIGC could reach RMB 30 trillion in the country, which indicates a 10% annual growth. $Baidu(BIDU)$ $BIDU-SW(09888)$ $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$

4. China’s mobile handset shipments jumped by nearly a fifth in October.

The number of handsets shipped in China reached 29.16 million units in October, growing by 19.7% year-on-year. Of this amount, 26.4 million were 5G handsets, growing 35.5% and accounting for 90.5% of the overall market. Meanwhile, domestically branded handsets reached 18.01 million units, a decline of 7.2%. This meant that foreign brands took market share away in October, which was the first full month after the iPhone 15 series release in September. $Xiaomi Corp.(XIACF)$ $XIAOMI-W(01810)$ $Apple(AAPL)$

5. Two of China’s top e-commerce platforms intensify their rivalry with a lawsuit.

Temu, the blockbuster budget shopping app owned by Pinduoduo Holdings, filed a lawsuit against Shein (another popular fast-fashion app) for what it deems is anti-competitive behavior. In particular, Temu accuses Shein of locking up vendors and manufacturers into exclusive arrangements. This is a long-standing practice in China that was clamped down by Beijing during its 2-year long scrutiny of the tech industry, in which Alibaba and http://JD.com were cited as major offenders. $Pinduoduo Inc.(PDD)$ $Alibaba(BABA)$ $Alibaba(09988)$ $JD.com(JD)$ $JD-SW(09618)$ $Bilibili Inc.(BILI)$ $BILIBILI-W(09626)$

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