To The Moon

1. China’s major cities report a jump in transactions after the latest round of easing measures.

The 30 biggest cities in China reported a 6% week-on-week bump in new home sales last week driven primarily by strong demand in key cities. Beijing and Shanghai witnessed a respective 122% and 41% spike in average daily sales. Both cities reduced the minimum downpayment requirement and mortgage rates for new and second home purchases last week. While still relatively high at 30% to 40%, lower downpayment requirements are attracting wealthier buyers back into the best markets in China. $Global X MSCI China Real Estate ETF(CHIR)$ $China Resources Land Ltd.(CRBJF)$ $Country Garden Holdings Co., Ltd.(CTRYF)$ $COUNTRY GARDEN(02007)$

2. China’s total retail sales grew faster-than-expected in November.

Retail sales of consumer goods in China grew 10.1% last month to reach RMB 4.25 trillion ($590 billion), helped in part by the traditional retail spending extravaganza marked by Singles’ Day. Online retail sales grew 11% for the month compared to the same month a year ago. Meanwhile, the order volume of express delivery businesses jumped 32% to over 13 billion trips, indicating that consumers were buying more lower ticket items this time around. $Alibaba(BABA)$ $Alibaba(09988)$ $JD.com(JD)$ $JD-SW(09618)$ $Pinduoduo Inc.(PDD)$ $MEITUAN-W(03690)$ $MEITUAN(MPNGF)$ $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$

3. China’s central bank has issued a directive to lower deposit rates beginning tomorrow.

In a move to promote spending and discourage excess savings, the People’s Bank of China announced that the nation’s biggest banks will lower their deposit rates between 10 and 25 basis points. This will reduce the deposit rate for the longest duration 5-year instrument to just 2.0%. It should help the nation’s major banks restore their net interest margins, which have been falling as a result of Beijing’s ongoing accommodative policies. At the same time, lower deposit rates should help convince more Chinese savers to buy up assets like real estate or mutual funds to improve their returns. $Global X China Financials ETF(CHIX)$

4. Beijing acts to lower the cost of imported life-saving drugs.

The Ministry of Finance (MoF) announced changes to its tariff schedule for 2024 that aims to lower the cost of imported cancer drugs and other rare disease drugs. Specifically, beginning next year, some anti-cancer drugs and the raw materials used to make these will enjoy zero tariff. Tariffs will also be lowered for resources that China is in short supply of, including lithium chloride (for electric car batteries), fluorspar (used in making aluminum, gasoline, and uranium fuel), and gas diffusion layers (used in making fuel cells). $AbbVie(ABBV)$ $Astellas Pharma, Inc.(ALPMY)$ $AstraZeneca PLC(AZN)$ $Bristol-Myers Squibb(BMY)$

5. BYD makes a breakthrough in low-temperature fast-charging technology.

China’s leading electric vehicle manufacturer, BYD Company, announced that it achieved the world’s first full-scene intelligent pulse self-heating technology. This will allow EVs to charge quickly even at extremely low temperatures, which is experienced by a large portion of China each year. It allows the battery to self-heat when charging, but also to automatically heat itself when the car is parked and exposed to cold weather. $BYD Co., Ltd.(BYDDF)$ $BYD COMPANY(01211)$ $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ $Li Auto(LI)$ $LI AUTO-W(02015)$ $Tesla Motors(TSLA)$

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