To The Moon

1. China revises rules on share repurchases to make it easier for companies to buy in the open market.

The China Securities Regulatory Commission (CSRC) announced significant changes to the “Rules on the Repurchase of Shares by Listed Companies” that listed firms in the mainland need to abide by. First, the CSRC lowered the minimum threshold for the cumulative decline over a 20-day period from 30% to 20% before triggering repurchase activity. Second, it added a new condition that allowed repurchases of shares when the closing price of a stock falls below 50% of its highest 12-month close. These measures will not likely have an immediate impact on the market but improves the buyback mechanism to instill more confidence in the market over the long-term. $KraneShares Bosera MSCI China A 50 Connect Index ETF(KBA)$ $iShares China Large-Cap ETF(FXI)$ $iShares MSCI China ETF(MCHI)$ $iShares MSCI China A ETF(CNYA)$

2. Another state-backed Chinese developer risks missing debt restructuring deadline.

In another sign of the difficulty facing mainland property developers, even state-backed China South City Holdings - once a $6.5 billion company - is in danger of default. The company, already struggling with cash flow, has been in talks with creditors to restructure $1.35 billion in bonds due 2024. The company has only until December 20 to either finalize the restructuring or meet an extended deadline payment for one bond maturing July 2024. Latest industry figures point to an 8.8% month-on-month improvement in real estate transactions, but the year-on-year picture is still bleak after falling 12%. $Global X MSCI China Real Estate ETF(CHIR)$ $China Resources Land Ltd.(CRBJF)$

3. China’s capital city airport registers a 4-fold surge in passenger throughput so far this year.

Beijing Capital International Airport has witnessed a 310% jump in the number of passengers during the first 11 months of 2023. The number of passengers reached 48.05 million, which is still well below the airport’s annual capacity of 75 million passengers. Meanwhile, cargo throughput grew 7.4% year-on-year to 995,600 tons. The growth seen in Beijing as the capital of China has outpaced the already strong recovery in the country’s general domestic aviation market. China’s domestic air passenger volume grew 126% to 480 million in the first 10 months of the year, with Beijing Capital Airport alone taking up about 8% to 9% of that. $Beijing Capital International Airport Co., Ltd.(BJCHF)$ $TravelSky Technology Ltd.(TSYHF)$

4. Alibaba cuts stake in two listed companies to raise some cash.

Alibaba Holdings reported that it plans to sell 25 million ADR shares of electric vehicle startup Xpeng Inc. to raise $391 million. The move will reduce Alibaba’s stake in Xpeng from 10.2% to 7.5%. Alibaba also cut its stake in logistics firm GOGOX by 4.7 million shares. It’s a small disposal that reduces Alibaba’s stake in the company to 10.42%. Meanwhile, China’s State Council unveiled rules concerning the supervision and administration of non-bank payment institutions that take effect on May 1, 2024. This involves tougher licensing regulations and better risk-management to prevent misappropriation of funds. It’s this still evolving regulatory landscape that may be contributing to delays in spinning off Alibaba’s Ant Group fintech arm. $Alibaba(BABA)$ $Alibaba(09988)$ $XPeng Inc.(XPEV)$ $XPENG-W(09868)$

5. Xiaomi founder voices high optimism for the company’s upcoming EV model launch.

Lei Jun, the founder of Chinese consumer electronics giant Xiaomi, plans to soon release his company’s first electric vehicle models, the SU7 and SU7 Max. He disclosed that Xiaomi spent $1.4 billion and employed a team of 3,400 engineers to bring his EV strategy to fruition. Initially, the SU7 series will be contract-manufactured by Beijing Automotive Industry Holdings (BAIC) and expected to retail between $26,000 and $42,000, along with a range between 668 kilometers and 800 kilometers. Given Xiaomi’s deep pockets and strong design capabilities, it’s a potential dark horse in the local EV industry. $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACF)$ $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ $Li Auto(LI)$ $LI AUTO-W(02015)$ $Tesla Motors(TSLA)$

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