Easy comps from last year when the subsidies haven't kicked in yet. Hopefully equity market rally can offset the real estate negative wealth effect (still running at -1% per month).
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Idk, kinda disappointed H1 2025 revenue for Huawei, only 4% growth. I hoped for double digits growth thanks to AI chips
for CN companies actual growth comes in second half of the year.. Huawei just top the chart in Mobile phones category in mainland first time in 5 years.
this is going to be record year for Huawei.
looks like, Global capital have been moving into China stock markets amid global uncertainty
Turnover on Shanghai SE and Shenzhen SE exceeded 2 Trillion RMB for the 13th consecutive trading day.
Turnover on Shanghai SE and Shenzhen SE exceeded 2 Trillion RMB for the 13th consecutive trading day.
Nah this A-share move is almost all domestic.
Global investors still heavily underweight China.
Total A-share market cap is ~100 trln RMB of which 50% owned by State/Founders. Liquid Market Cap is maybe 40-50 trln.
In the past 5 years Chinese households have banked up 50 trln of deposits to offset the real estate wealth effect (Real Estate in China = 300 trln RMB). CSI300 Index dividend yield is 2.8 vs 10 year Chinese Treasuries at 1.7 - people are moving into equities for income. This is what I've been saying for years on this forum.
And just as a dunk on the dumbasses who believed Chinese biotech/pharma was 'behind':
China did well on this front as well this year..
Beijing announced on Tuesday that China had recorded a US$33 billion net capital inflow from non-banking sectors and higher foreign holdings of Chinese equities in May – an acceleration from .
The department did not break down the figures by country, but analysts noted a growing trend for global investors – including large Gulf sovereign wealth funds – to pivot towards stable, high-growth markets in Asia amid rising global instability.
2025 first half reports are out for several big companies. It's kind of interesting to compare Huawei to BYD. Nothing against the latter, but Huawei's R&D efforts is just off the charts.
This is what's driving it - household deposits shrinking (people drawing money from savings accounts) and non-bank financial institutions deposits going up (people setting up new accounts at Eastmoney or putting money into their existing accounts). The foreign money is drop in a bucket - need trillions of RMB to move the A-shares
Cambricon is the next nvidia. Just keep on buying the stock.