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☆ China's recovery lifts U.S. companies' sales as domestic consumers pull back spending
▼ + stars: | 2023-05-14 | by ( Amelia Lucas | ) www.cnbc.com time to read: +3 min

U.S. companies are reporting that demand in China is returning, boosting their sales at a time when many U.S. consumers are pulling back their spending. Starbucks reported that its same-store sales in China rose 3% in its latest quarter, reversing their declines. Some Wall Street analysts were still anticipating shrinking same-store sales for the company's second-largest market. That quarter, Starbucks' same-store sales in China sank 23%. Yum China , Yum Brands' master franchisee in China, also said its same-store sales grew 8% in the first quarter.

☆ China names head of NFRA as financial industry faces greater scrutiny
▼ + stars: | 2023-05-11 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —China has appointed the head of its powerful new financial watchdog, which was created as part of sweeping reforms aimed at reining in the $60 trillion industry. Currently, several provincial leaders had previous careers in the financial industry, including Wu Qing, vice mayor of Shanghai and formerly the chairman of the Shanghai Stock Exchange. China’s sprawling financial industry is coming under closer scrutiny as Xi and his key allies have asserted greater direct control over financial policy. For years, Xi has said the financial industry should better serve the real economy, including making money available to businesses that need it. To further consolidate control, according to analysts, the top anti-graft body has carried out a sweeping anti-corruption campaign in the financial industry, which has ensnared more than a dozen senior executives from state-owned financial institutions.

☆ Chinese Travelers Swarm Domestic Tourist Sites, a Positive Sign for Economy
▼ + stars: | 2023-05-03 | by ( Jason Douglas | ) www.wsj.com time to read: 1 min

Crowds in the departure hall of a railway station in Hangzhou, China, ahead of the so-called Golden Week holiday. Photo: Qilai Shen/Bloomberg NewsSINGAPORE—Chinese travelers hit the road en masse and thronged tourist spots in their vast country during the annual Labor Day holiday, an encouraging sign that the country’s consumer-led economic rebound is powering ahead even as factories start to struggle. For many Chinese, the excitement of the five-day break around May 1, which commemorates the labor movement in much of the world, was another sign of life returning to normal after the rigors of the pandemic.

☆ In race for efficient EVs, Mercedes taps F1 team to keep up with Tesla
▼ + stars: | 2023-05-02 | by ( ) www.cnbc.com time to read: +6 min

In this article MBG-FF Follow your favorite stocks CREATE FREE ACCOUNTLewis Hamilton of Great Britain drives the Mercedes AMG Petronas F1 Team W13 on race day during the 2023 Australian Grand Prix at Albert Park on April 2, 2023 in Melbourne. But Mercedes' F1 collaboration to build more efficient EVs faster is unprecedented because it embeds that racing mindset and technological expertise directly in product development. After decades of leadership in combustion-engine technology, legacy carmakers like Mercedes have lagged Tesla in electric vehicles. Mercedes' F1 team can help it get back in the race, said Steven Merkt, head of transportation solutions at TE Connectivity , a major autos supplier. Last year, Mercedes unveiled its EQXX concept car, a super-efficient EV capable of a range of more than 1,200 km (745 miles), which was jointly developed with the German premium carmaker's F1 team in England.

☆ Back From the Brink, Chinese Developer Resumes Buying Land
▼ + stars: | 2023-04-26 | by ( Rebecca Feng | Cao Li | ) www.wsj.com time to read: 1 min

A Country Garden residential development in Shanghai. Photo: Qilai Shen/Bloomberg NewsHONG KONG— Country Garden Holdings Co., one of China’s largest real-estate developers, bought residential land in a local government auction for the first time since December 2021, signaling confidence in its liquidity and a recovering housing market. The company, which used to be an aggressive acquirer of land, had been hit by a sharp slowdown in China’s property sector last year. Its sales of new apartments slumped, and prices of its dollar bonds slid to below 10 cents on the dollar in November, as investors worried that Country Garden could default on its debt like dozens of other developers.

☆ China is waging a war on its financial industry. Some high-profile bankers are ensnared
▼ + stars: | 2023-04-05 | by ( Laura He | ) edition.cnn.com time to read: +8 min

Last Friday, authorities opened a similar probe into Liu Liange, former chairman of state-owned Bank of China, the country’s fourth largest lender. And in January, Wang Bin, who headed state-owned China Life Insurance from 2018 to early 2022, was charged by national prosecutors with taking bribes and hiding overseas savings. They include financial giants such as China Investment Corp, the nation’s sovereign wealth fund, China Development Bank, which provides financing for key government projects, and Agricultural Bank of China, another large state-controlled lender. “The current financial crackdown is a new wave of Xi Jinping’s anti-corruption campaign against the financial sector for consolidation of his power,” said Chongyi Feng, an associate professor in China Studies at the University of Technology Sydney. But the deepening crackdown on the vast financial sector could rattle investors.

☆ Baidu stock rebounds after falling sharply in wake of demo of ERNIE chatbot, its ChatGPT-style service
▼ + stars: | 2023-03-17 | by ( Michelle Toh | ) edition.cnn.com time to read: +5 min

Hong Kong CNN —Shares in Chinese search giant Baidu rebounded sharply a day after it unveiled ERNIE Bot, its answer to the ChatGPT craze. Its Hong Kong shares fell 6.4% after a public demonstration of its bot failed to impress investors. The reversal came after the company said more than 30,000 businesses had signed up to test out its chatbot service within two hours of its demonstration. Baidu Chairman and CEO Robin Li presenting the company's AI chatbot, ERNIE Bot, in Beijing on March 16. But its stock slumped on Thursday because the demo was “pre-recorded, and not live, which makes investors skeptical about the robustness of the ERNIE Bot,” according to Pau.

☆ General Motors' China business is hurting, and it's not just because of Covid
▼ + stars: | 2023-03-17 | by ( Michael Wayland | ) www.cnbc.com time to read: +11 min

He purchased his Nio over models from rival Chinese automakers Xpeng , Li Auto and IM Motors. GM's operations in the country are much larger than those of its crosstown rival Ford Motor, for example. Equity income from GM's Chinese operations and joint ventures has fallen 67% since its peak of more than $2 billion in 2014 and 2015. And the rising quality of domestic-made electric vehicles helped support — and tap — growing nationalistic pride among China's consumers. In February, Ford named Sam Wu, a former Whirlpool executive who joined the automaker in October, as president and chief executive of its China operations, starting March 1.

According to CNBC analysis of state media reports, 7.7 million people took the civil service exam in the 2023 application round, vying for more than 200,000 government jobs at the national and provincial level. Qilai Shen | Corbis Historical | Getty ImagesA record number of people in China took the civil service exam this year, as unemployment among young people soared. According to CNBC analysis of state media reports, 7.7 million people took the civil service exam in the 2023 application round, vying for more than 200,000 government jobs at the national and provincial level. China's National Civil Service Administration could not be reached for comment despite multiple attempts by CNBC. However, Xi and other senior leaders did not need to take the civil service exam to gain their current roles.

A pedestrian along the Bund in Shanghai, China Photographer: Qilai Shen/Bloomberg via Getty ImagesAsia-Pacific markets are set to rise on Wednesday following a slightly cooler U.S. inflation report and as the fallout in the banking sector seemed to be contained. The U.S. consumer price index report for February came in at 0.4% and an annualized increase of 6%, in line with Dow Jones estimates. In Australia, the S&P/ASX 200 rose 0.64% as bank stocks rallied early in the trading day. In Japan, the Nikkei futures contract in Chicago was at 27,225, and its Osaka counterpart stood at 27,190 against the Nikkei 225's last close at 27,222.04. Investors will be closely watching a slew of economic data releases from China today, with the country set to release its retail sales and industrial output numbers for February, as well as its one year medium term lending rate for March.

☆ China's online shoppers started the year cautiously, Alibaba says
▼ + stars: | 2023-02-24 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +3 min

"From January to early February of this year, overall sales of online physical goods remained weak," Alibaba CEO Daniel Zhang said Thursday during a quarterly earnings call, according to a FactSet transcript. Alibaba's Zhang was relatively cautious in his comments about the economic recovery. Alibaba's China commerce revenue in the last three months of 2022 fell by 1% to the equivalent of $24.64 billion, accounting for 69% of total revenue. Nationwide, catering sales fell by 6.3% in 2022, while retail sales overall dropped by 0.2%, according to China's statistics bureau. The two months' data are typically combined due to variations in the timing of the Lunar New Year holiday, which doesn't follow the Gregorian calendar.

☆ Chinese savers stashed away $2.6 trillion last year but property crash will cool ‘revenge spending’
▼ + stars: | 2023-02-07 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Burberry (BBRYF) said last month that it’s seeing “very promising” signs in China, according to Reuters. Since real estate accounts for 70% of household wealth in China, “revenge spending” will be limited, analysts said. They expect household consumption growth to rebound to 9.5% in 2023 from about 3% in 2022, fueling annual GDP growth of more than 5%. Morgan Stanley analysts expect to see some “revenge spending” mostly from household with stable incomes. They’re expecting household consumption growth to rebound to 8.5% in 2023, contributing to full-year economic growth of 5.7%.

☆ Five Chinese startups that survived a tough year of Covid lockdowns
▼ + stars: | 2023-01-03 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +6 min

Qilai Shen | Bloomberg | Getty ImagesBEIJING — In a year of Covid lockdowns and travel restrictions, some Chinese startups that survived found growth online and overseas. The startup avoided significant impact from China's Covid lockdowns since it could deliver its products virtually, Jiang said. The company aggressively pushed overseas in 2022 – launching subsidiaries in Tokyo, Seoul, Germany, Dubai, Los Angeles and Hong Kong, Wan said. Previously, Wan said that Keenon had seen revenue at least double or more every year from a lower base, when the China market was growing. The company has a staff of 100 people in the southern Chinese province of Guangdong and Los Angeles, Lin said.

☆ China reopening earlier than expected could hit supply chains in the short term, but boost growth in 2023
▼ + stars: | 2022-12-29 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

Photographer: Qilai Shen/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty ImagesMainland China's reopening came sooner than expected for investors, and Goldman Sachs warns it will lead to short-term strains in the workforce and supply chains. Positive outlook for GDP, Chinese yuanDespite shorter-term concerns for China's reopening, economists have a rosy outlook for China's growth in the long run. "Improved growth expectations in 2023 might outweigh unfavorable factors such as deterioration in goods and services trade balances," the Goldman Sachs note said. International travel to resumeThe economists at Goldman Sachs said the latest measures will likely benefit the surrounding region's growth as travel normalizes. Travelers with luggage's inside Terminal 1 at the Hong Kong International Airport on December 20, 2022 in Hong Kong, China.

☆ China challenges US chip curbs at WTO, citing ‘trade protectionism’
▼ + stars: | 2022-12-13 | by ( Laura He | ) edition.cnn.com time to read: +4 min

On October 7, the Biden administration unveiled a sweeping set of export controls that ban Chinese companies from buying advanced chips and chip-making equipment without a license. The commerce ministry blasted the US move as threatening global supply chain stability and called it “a typical practice of trade protectionism.” The complaint is the first action China has taken at the global trade body against the US chip sanctions. It also comes as the United States is looking to bolster its domestic chip manufacturing abilities, after chip shortages earlier in the pandemic highlighted the country’s dependence on imports from abroad. He called for both countries to boost cooperation in high-tech manufacturing and avoid “the politicization of economic and trade issues.”Chips are a growing source of tension between the United States and China. Before the October sanctions, the US government had already banned sales of certain tech products to specific Chinese companies, such as Huawei.

☆ As China moves away from zero-Covid, health experts warn of dark days ahead
▼ + stars: | 2022-12-06 | by ( Simone Mccarthy | ) edition.cnn.com time to read: +10 min

Across the country, however, some parts of residential communities and buildings designated high risk by authorities are still locked down. A QR code for Covid-19 contact tracing displayed at the entrance to a subway station in Shanghai, China, on Monday. Top health officials on November 28 announced a new plan to bolster elderly vaccination rates, but such measures will take time, as will other preparations for a surge. Minimizing the worst outcomes in a transition out of zero-Covid depends on that preparation, according to Cowling. From that perspective, he said, “it doesn’t look like it would be a good time to relax the policies.”

☆ A house price slump is coming. Rising unemployment could make it much worse
▼ + stars: | 2022-11-23 | by ( Hanna Ziady | ) edition.cnn.com time to read: +10 min

Brendon O'Hagan/Bloomberg/Getty ImagesNew Zealand is at the sharp end of a global housing market squeeze that has grim ramifications for the world economy. “In an ideal world, you’ll get a bit of froth blown off the top [of house prices] and everything is fine. “A decisive increase in unemployment is a very big danger for housing markets,” said Slater of Oxford Economics. Qilai Shen/Bloomberg/Getty ImagesA drag on the economyMost market watchers are not expecting a repeat of the 2008 housing market crash. But even a modest a fall in house prices will knock confidence, causing homeowners to cut back on spending.

We are buying 40 shares of Estee Lauder (EL) at roughly $219.55 a share each. We have called Estee Lauder the single best way to play a China reopening. Estee Lauder gets about one-third of its sales from travel and its travel retail business is highly dependent on tourism in Asia. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. A sales assistant arranges lipsticks at an Estee Lauder store.

☆ iPhone supply disruptions in China weigh on Apple, but should be temporary headwind
▼ + stars: | 2022-11-14 | by ( Paulina Likos | ) www.cnbc.com time to read: +4 min

The Club take The production headwinds in China don't shake our confidence in Apple. At the same time, we're interested in getting a clearer picture on when iPhone production in China could normalize. We see production snags as a temporary risk that could moderate once China ultimately abandons its zero-Covid policy. Apart from production challenges in China, Apple's stock has been held back this year by macroeconomic pressures and foreign exchange headwinds, with shares down roughly 16% year-to-date. Apple's stock climbed nearly 8% last week, as tech stocks surged on the back of weaker-than-expected inflation data for October.

☆ We're using this rally to make a few trades in the portfolio: one sale, two buys
▼ + stars: | 2022-10-18 | by ( Jeff Marks | ) www.cnbc.com time to read: +6 min

We're buying 20 shares of Danaher (DHR) at roughly $263.99 and 40 shares of Estee Lauder (EL) at roughly $217.05. Estee Lauder We are taking some of that MRVL cash to add to our newest position Estee Lauder . When the pandemic hit and department stores temporarily closed their doors, Estee Lauder pivoted quickly and built direct-to-consumer channels like e-commerce. This shift has allowed Estee Lauder to recapture some lost market share and improve its operating margin outlook. Over the last three years, Estee Lauder has expanded its operating margins by 220 basis points.

We're buying 25 shares of Estee Lauder (EL) at roughly $213.94 each. We believe Estee Lauder fits this criteria and this is a stock we started buying in late September . But this multiple is down from roughly 46x earnings when we exited the position in December 2021 at around $360 . Additionally, the stock's forward price to earnings multiple is now back to its pre-pandemic levels, an important consideration during this great reset of valuations. A sales assistant arranges lipsticks at an Estee Lauder store.

☆ What is China's Communist Party Congress and will it cement Xi Jinping's rule?
▼ + stars: | 2022-10-11 | by ( Simone Mccarthy | ) edition.cnn.com time to read: +9 min

What is the Party Congress? The Congress itself, typically held in October or November, convenes nearly 2,300 carefully selected Communist Party members, called delegates, from around the country. Delegates attend the opening of the Chinese Communist Party's 19th National Congress in October 2017. While votes are held at the Party Congress, this is widely viewed as a formality – not a true election process. Video Ad Feedback 02:46 - Source: CNN Watch CNN's report of last party congress of the Chinese Communist Party in 2017Why is this Congress different from those in the past?

We're initiating a position in Estee Lauder (EL), buying 75 shares at roughly $224.37 each. After not chasing Tuesday's higher open on Wall Street, we're putting some cash to work in the afternoon in a Club Bullpen stock that we have owned in the Trust in the past. We are calling up Estee Lauder from our Bullpen watch list. When the pandemic hit and department stores temporarily closed their doors, Estee Lauder pivoted quickly and built out direct-to-consumer channels like e-commerce. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Xpeng breaks out of a lower price range with its most expensive car to date
▼ + stars: | 2022-09-22 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +2 min

Qilai Shen | Bloomberg | Getty ImagesBEIJING — Chinese electric car start-up Xpeng has released its most expensive car to date, marking the company's foray into a higher price range. On Wednesday night, Xpeng announced its newest car, the G9 SUV, will be priced from 309,900 yuan ($44,270) to 469,000 yuan. The price range makes Xpeng's latest car generally cheaper than new SUV offerings this fall from Nio and Li Auto. Nio's ES7 sells for 468,000 yuan to 548,000 yuan, while Li Auto's Li 9 lists a price of 459,800 yuan. BYD, the dominant local leader in China's electric car market, sells in an even lower price range.

☆ Trump’s Real Trade Record
▼ + stars: | 2022-07-05 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

Gantry cranes and containers at the Yangshan Deepwater Port in Shanghai, July 5, 2022. Photo: Qilai Shen/Bloomberg NewsIn a recent editorial we critiqued President Trump’s proposal for a 10% border tax on anything and everything imported by the U.S., and the self-proclaimed Tariff Man has upbraided us in a letter. This is a good debate to have, and Mr. Trump begins his missive by boasting that while he was in office the trade deficit with China was falling before Covid-19 hit.

Persons: Qilai Shen, Trump’s, Trump Organizations: Bloomberg Locations: Port, Shanghai, U.S, China, Covid

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