CHECKING IN ON CHINA--- (Bloomberg) -- Xi Jinping’s pledge to revive growth is finally winning over some investors who’ve been burned time and again by China’s economic woes. Even as skeptics pointed to a dearth of specifics in the latest promises from the ruling Politburo, traders cast off weeks of pessimism to drive gains across stocks, corporate debt and the yuan. They’re betting a more forceful pro-growth tone from the top will be enough to fuel a tradeable rally — and may auger more success in tackling China’s wide array of challenges from mountains of local government debt to a slumping housing market. “Clearly, markets have been disappointed as they anticipated more rapid improvements, but they are now beginning to rationalize their growth expectations,” said Andrew McCaffery, global chief investment officer at Fidelity International. “Our view is that this somewhat unexciting period will eventually give way to a more positive market tone.” The big question is whether the follow-through from authorities will sustain the rebound. Brief bursts of optimism as China emerged from strict Covid restrictions have repeatedly turned into losses, making Chinese markets among the region’s worst performers amid a stream of grim economic data. With the Monday statement from the ruling Communist Party’s 24-member Politburo short on specifics, strategists are weighing the nuances. Some like Macquarie’s economists argued the tone is the key in China’s top-down system. Others pointed to the shift where driving domestic demand was seen as more important than an export-oriented industrial policy. For the bulls, the stronger recognition of the challenges is enough. The Hang Seng China Enterprises Index, which tracks major Chinese companies listed in Hong Kong, gained 5.3%, the most since November when China was relaxing Covid restrictions. The onshore yuan rallied as much as 0.7%, with traders reporting that state-owned banks were also seen supporting the currency. On the mainland, the benchmark CSI 300 Index climbed 2.9%, also the most since November. Overseas investors purchased a net 19 billion yuan ($2.7 billion) of onshore stocks via the trading links with Hong Kong, the biggest daily inflow since December 2021. Turnover in Shanghai and Shenzhen was also highest in three weeks. The rally is widespread, with gains from retailers to technology companies. A Bloomberg index of property stocks rose more than 10%, with Country Garden Holdings Co. jumping 18% in Hong Kong. The dollar bonds of developers also rallied as Beijing pledged an “adjustment” of restrictions for a sector plagued by liquidity shortfalls and slumping demand. The Politburo’s language on property — which accounts for up to 20% of GDP once related sectors are added — was also softer. It omitted President Xi’s signature slogan that “houses are for living, not for speculation” for the first time in a mid-year review of the economy since 2019. The promises of support for the property market and private sector, and a potential resolution for local government debt risks suggest Beijing knows what is needed, said Fiona Lim, senior FX strategist at Malayan Banking Bhd. in Singapore. “These acknowledgments were important and possibly sufficient for markets to breathe a sigh of relief, even though we probably need to wait a while for concrete measures to come through.” Yet, there are plenty of skeptics as Beijing has repeatedly fallen short of expectations. After all, Chinese stocks have been on a downtrend since the Hang Seng China gauge surged about 50% over three months before fizzling at the end of January. “We have seen this movie before,” said Chun Wang, a portfolio manager at Minneapolis-based Leuthold Group. “The latest policy signal from the Politburo is not surprising, considering the credit/liquidity crunch Chinese property companies are currently facing.” Investors have sold into intermittent rallies since, showing a lack of conviction in a market that’s headed for another year of losses. The benchmark CSI 300 is almost flat this year, while Hong Kong’s Hang Seng Index is down 1.8%, making it one of the worst performers in Asia. Bulls like Goldman Sachs Group Inc., UBS Group AG and Morgan Stanley have lowered their expectations for Chinese stocks on growth worries. Goldman’s banking analysts have gone a step further, saying investors should sell the nation’s biggest lender and prepare for lower dividend payouts from banks due to their exposure to souring local government debt. Behind the periodic outbursts of pessimism were a slew of data that pointed to an anemic economic recovery, as well as Beijing’s reluctance to roll out large-scale fiscal stimulus and icy relations with the US. Citigroup Inc. strategists wrote in a July 24 note that investor positioning has turned increasingly negative for Chinese shares onshore and is the most bearish across the indexes they track. Official figures released last week showed China’s economy lost momentum in the second quarter, with consumer spending growth weakening notably in June and property investment contracting. Meantime, home sales tumbled last month, snapping a four-month rebound. Even Tuesday’s new-found euphoria may have partly been due to short covering, according to some observers. “It was good to get the waiting out of the way,” said Redmond Wong, a strategist at Saxo Capital Markets HK Ltd. “Now we got the Politburo and it was not that bad, a bit lukewarm but enough to draw some investors back to the market and have traders closing shorts.” PROPERTY SPECULATION REAL ESTATE CHINA... WHAT IS THE STK....
Company Profile Qifu Technology, Inc., through its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People’s Republic of China. It provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. The company also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. The company was founded in 2016 and is headquartered in Shanghai, the People’s Republic of China.
WAIT NO I GOT IT!! BEIKE----- Beike stock could become a long-term winner. When asked which Chinese technology companies investors should invest in, analysts will often mention names like Alibaba Group or Tencent. But lesser-known tech giants should make it onto your watch list as well. KE Holdings (BEKE 6.88%), or "Beike," is one of those candidates. Beike is the leading player in a massive industry There are a few major e-commerce platforms in China that investors are familiar with, such as Taobao and Tmall from Alibaba, Pinduoduo, and JD.com. But there is another one that most investors have not heard of: Beike from KE Holdings. First, let's get a bit of the naming confusion out of the way. KE Holdings owns two major businesses: Lianjia and Beike. Lianjia is a real estate agent that helps homeowners rent or sell their properties and customers find their dream homes. Think of it as "the Redfin of China." Beike is the platform that helps match customers to estate agents (including Lianjia). Think of this as "the Zillow of China." Although there are distinctions between what these businesses under KE Holdings do, investors often refer to the collective business as just "Beike." For the sake of simplicity, I'll be referring to the company as such from here on out. Founded as a real estate agent (Lianjia), Beike has become an ever more dominant player in the Chinese real estate industry. Today, it has 394,000 active agents, 267 million homes in its database, 40,500 stores, and roughly 37 million mobile monthly active users (MAU) using its Beike platform. More importantly, Beike enables a large share of all real estate transactions in China. In the fourth quarter of 2022, the gross transaction value (GTV) of all Chinese existing and new home sales was around 3.1 trillion yuan ($450 billion). Out of this, Beike accounted for 647 billion yuan ($94 billion) or 21%. With its dominant position, Beike benefits from a virtual cycle of growing customers, agents, and property listings. After all, customers will go to the platform with the most property listings, while agents will go to where customers are. Thus, there are good reasons to expect Beike to grow its market share over time. But that's not all. Beike can also leverage the leading position of its Beike platform to expand into adjacent sectors. NYSE: BEKE Beike is quietly expanding this new vertical Last year, Beike acquired Shengdu Home Renovation, doubling its investment in the up-and-coming home renovation and furnishing industry. Such a move was necessary as the Chinese property market faces headwinds, evident in Beike's 2022 performance -- GTV of existing and new home transactions fell by 23% and 42%, respectively. Moreover, as the Chinese population becomes wealthier, they will naturally spend more on improving their homes, which will benefit the home renovation and furnishing sector. By acquiring Shendu, the leader in this industry, the tech company could shorten its learning curve while gaining various cost and revenue synergies. For instance, it could leverage its user base and reputation to help Shendu grow faster while removing cost duplication from the combined entity. While it's still early, Shendu's acquisition has already led to a massive surge in home renovation revenue from 197 million yuan in 2021 to 5 billion yuan ($0.7 billion) in 2022. Over time, Beike could leverage its own experience in building a real estate platform -- and combine that with the understanding gained from operating Shendu -- to launch a home renovation and furnishing platform. If successful, this latest move will open up an entirely new (and growing) revenue stream for the company. Why should investors bother? Beike, with its leading position in the property market in China and its growth potential, might be one of those companies worth paying attention to.
buy buy buy buy buy buy buy buy buy- KE Holdings Inc. (BEKE)-! NYSE - NYSE Delayed Price. 15.84+1.02 (+6.88%)<---------- At close: July 24 04:00PM EDT 16.96 +1.12 (+7.07%)<-------- Pre-Market: 08:51AM EDT
Damn we had this in China week as an option but did not buy We have gobs of the hotel stock should we swap!!!!!!! ATAT out BEKE in??????? HELP-!
Oh snap look at the price!!! This is a late runner the move just started they sat out China Week--!!!!!! The Great Rotation?
Worksport Ltd. (WKSP)-- Where is the love-? NasdaqCM - NasdaqCM Real Time Price. 3.9700+0.3600(+9.97%) At close: 04:00PM EDT 4.1893+0.22(+5.52%) Pre-Market:08:59AM EDT
Van checked in from Barcelona. He is a changed man! Promised no more fighting when he gets back. " see's the bigger picture now " Gaudi can do that...