1.Alibaba’s Singles Day Annual Event Sees Slowest Ever Sales Growth
Alibaba’s Singles Day is known for being the world’s biggest online shopping extravaganza. But this year it has been a more toned down affair as Beijing cracks down on businesses and economic growth slows. Sales for the 11-day event rose at their slowest rate since it was launched in 2009, up 8.5% on last year. However, according to the data from Alibaba, customer spending still hit a fresh record high of 540.3bn yuan ($84.5bn). This year marks the first time that sales for Alibaba’s Singles Day, which the company refers to as the “11.11 Global Shopping Festival “, failed to achieve double digit year-on-year growth.
2.Power Curbs Cut 7% Of Annual Aluminum Capacity
Curbs on power use imposed by Communist China have cut around 7% of domestic aluminum annual capacity so far this year, consultancy Wood Mackenzie said on Friday. Wood Mackenzie said they identified around 3.2 million tons per annum of aluminum capacity was cut so far this year, of which only a little has been restarted. Power cutbacks at copper smelters and refineries have trimmed around 60,000 tons of refined output, or less than 1% of China’s total production capability, said Wood Mackenzie’s managing consultant Yong Cheng Zhao in a report. The restrictions also hurt output of some copper wire rod and tube producers, and downstream wire and cable makers, said consultant Zhifei Liu.
3.IDC: China’s AI Data Harvesting Services Market Size Will Reach RMB 12.34 Billion By 2025
IDC released its first China Artificial Intelligence Basic Data Services Market Tracker report and it predicts that by 2025, the market size of China’s artificial intelligence data harvesting services will reach RMB 12.34 billion. The market is driven by the rapid development of the AI market on the one hand, and industry users increasing their data collection efforts on the other. In term of user demand, the market demand for AI basic data harvesting services mainly comes from autonomous driving, AI technology providers and intelligent security. In addition, the Internet industry and intelligent terminal industry is also the main investment targets in AI basic data services.
4.Citibank Survey Shows Hongkongers Less Optimistic About Home Price Rises
Citi Hong Kong conducted a survey in September 2021 on residential property ownership in Q3 2021. 38% of the respondents expected property prices to rise further in the coming year, a lower percentage compared with the previous quarter but higher than the level recorded in the same period last year. Only 4% of the respondents considered that it was a good time to buy a property, a figure easing back to pre-pandemic levels and down from the previous quarter and the same period last year.
According to the latest figures from the Hong Kong Rating and Valuation Department, the private residential property price index was 396.3 points in September, down another 0.4% from 397.9 points in August, a drop of two months in a row, and compared to the record high of 398.2 points in July this year, a drop of about 0.48% while the first nine months of this year, the property price index still accumulated an increase of 4.32%. The Midland Real Estate Data and Research Center information shows that in October, the second-hand residential registrations were 3,656 cases, down by about 12.4% from the previous year.
5. Ping An Seeks To Sell $2.1 Bln Stake In Autohome
Ping An Insurance Group (601318.SS) is seeking to offload its 44% stake in auto services portal Autohome (2518.HK), three people familiar with the situation told Reuters. Ping An, which is currently the biggest shareholder of Beijing-based Autohome via an offshore entity, has held talks with several strategic and private equity investors for the stake in recent months, said the people. The stake would be worth around $2.15 billion based on Authome’s current valuation. Autohome faces growing difficulties in China where automakers, in particular electric vehicle (EV) makers, increasingly rely on their own distribution networks instead of dealerships for sales, said two of the people.
6. Trading Volumes On National Emissions Trade Scheme Exceed 1 Billion Yuan
Trading volumes on China’s national carbon emissions trading scheme (ETS) have exceeded 1 billion yuan since it was launched, Communist China’s environment ministry said on Friday. The Ministry of Ecology and Environment said on its official WeChat account that ever since the ETS was set up on July 16, cumulative trading volumes have reached 1.044 billion yuan. It said the scheme had been “operating smoothly and orderly” and trading had gradually increased as the first compliance deadline approached. The United States and China, the world’s two largest emitters of carbon dioxide, unveiled an agreement earlier this week to strengthen cooperation in fighting climate change, including reducing methane emissions, phasing out coal use and protecting forests.
7.SMIC to Set Up Integrated Circuit JV in Shanghai
SMIC said it will contribute to set up a joint venture in Shanghai to manufacture integrated circuit wafers. SMIC will have a 66.45% shareholding in the JV, which has a registered capital of $5.5 billion, it said Friday. The company’s contribution will be made in cash and funded by internal resources, it said. Lin-Gang Joint Venture Co. will have nine directors, with five nominated by SMIC and two nominated by each of its partners, China IC Fund II and Hailinwei, which have 16.77% and 16.78% stakes, respectively. The JV targets to build a production line with a monthly manufacturing capacity of 100,000 12-inch wafers in Shanghai’s free-trade zone, SMIC said in September. It will also provide technical and design services related to integrated circuits, it said in Friday’s filing.
8.Louis Vuitton Considers First Duty Free Store In China’s Hainan
Louis Vuitton is considering opening its first duty free store in China on the emerging luxury island hub of Hainan, according to two sources, in a move that would mark a new approach for the world’s largest luxury label. The brand, which is the main profit engine of French luxury giant LVMH, is known for maintaining an iron grip on distribution and famously never offering discounts on its leather monogrammed bags.
【G Translators – Financial Team】
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