[NOTE: This is from mid-November – so its already dated but the points below are worth noting.]
- First, we have seen very little internet regulation over the summer, confirming a possible end to reforms.
- Second, the China Securities Regulatory Commission (CSRC) and the Securities Exchange Commission (SEC) have signed a statement of protocol allowing the Public Company Accounting Oversight Board to conduct full audit reviews of US-listed Chinese companies, which should lift investor sentiment toward China.
- US officials are currently in Hong Kong auditing the data of more than 160 Chinese companies. We believe all the major internet companies will pass the test and help to establish a path to the final agreement.
- Third, we believe the conclusion of the National Party Congress (NPC) on October 22nd,5 may allow leaders to focus on supporting the real economy once again and potentially pursue more easing of China’s zero COVID policy.
- Fourth, CSPC Pharma, China’s third largest pharmaceutical company, announced favorable numbers for their mRNA COVID vaccine, potentially leading to emergency approval as soon as November.
- Lastly, for the first time since 2019, China brought back the Pledged Supplementary Lending (PSL) program in October. The program was created in 2014 and is meant to capitalize policy banks to support the property sector. The return of the discontinued program indicates that China is looking to bring the real estate sector under control in the near term and protect against systematic risk. READ MORE
Similar Posts:
- China is No Longer Just Any Emerging Market — It Has Become Its Own Beast (CNBC)
- Five Things You Need to Know About Foxconn’s Shanghai IPO (The Asset)
- Push for US-listed China Firms to Disclose Interference Risks (The Standard)
- Fall 2021 China Internet Earnings Report: Baidu on AI, Autonomous Driving, & An Open Internet Marketplace (KraneShares)
- Beijing’s Regulatory Crackdown Is Unlikely to End Any Time Soon (CIGI)
- Developments in the Reform of China’s State-Owned Enterprises (Mobius Blog)
- China Will Not Be Able To Offset Its Property Bubble Easily (Daniel Lacalle)
- China is Going After Foreign Car Makers (Fitch Ratings)
- Macro Tailwinds That Could Propel China’s Internet Sector (KraneShares)
- China Venture Capital Deals Shrink Amid Regulatory Concerns (Nikkei Asia)
- Macquarie’s Le Cornu Likes Korean Cosmetics, Chinese Insurance Stocks & Macau Casinos (Bloomberg)
- The Big Debate: ‘Is China Flashing Green? No, It’s Not’ (City Wire)
- GF Securities (HKG: 1776 / SHE: 000776 / FRA: 9GF): A Value Stock After Recent Scandals & Crackdowns?
- While “Delisting” Gets Headlines, The SEC Proposes Orderly Solution (KraneShares)
- Variant View: China’s Zero-COVID Policy is Dead (Asian Century Stocks Substack)
