Chinese President Xi Jinping Grappling With $7 Trillion Downturn As Country's Debt Levels Soar, Real Estate Collapses And Markets Pull Back Over 21% From 2021 Highs
As China grapples with the fallout from a $7 trillion stock decline, officials are gearing up to brief President Xi Jinping on measures to stabilize the market. This move signifies Beijing’s urgency to restore investor confidence and halt the market’s slide, which has erased a significant value from Hong Kong and China equities since their 2021 peaks. The Shanghai Composite Index, for example, is down over 21% from its high in December 2021.
Nvidia is different issue..................Nvidia benefits from China stocking of Nvidia chips in 2023.............2024 is a very different year for Nvidia.
he downturn has been attributed to a variety of factors, including regulatory crackdowns, geopolitical tensions, real estate defaults and internal economic pressures, prompting a call for decisive action to prevent further damage to consumer confidence, especially as the country approached the Lunar New Year holiday.
China’s real estate sector has been grappling with significant challenges, culminating in a crisis that has reverberated through the country’s economy. The crisis was highlighted by the downfall of China Evergrande, Group one of China’s largest property developers, which became emblematic of the broader issues plaguing the sector. Evergrande’s aggressive expansion, characterized by a rapid acquisition of land and significant borrowing, eventually led to its financial distress. This situation underscored the broader vulnerabilities within China’s real estate market, including high levels of debt, a slowdown in property sales and regulatory changes aimed at curbing speculative investments.
Nvidia only sell downgraded chips to China which will not affect their earnings. If u think Nvidia only worth US 100 just go and short the share price.
BEIJING, Jan 15 (Reuters) - Chinese military bodies, state-run artificial intelligence research institutes and universities have over the past year purchased small batches of Nvidia (NVDA.O), opens new tab semiconductors banned by the U.S. from export to China, a Reuters review of tender documents show. The sales by largely unknown Chinese suppliers highlight the difficulties Washington faces, despite its bans, in completely cutting off China's access to advanced U.S. chips that could fuel breakthroughs in AI and sophisticated computers for its military.
The crisis has had wide-ranging implications, not only for property developers but also for the Chinese economy as a whole. The real estate sector, a critical engine of economic growth in China, has faced $125 billion in bond defaults between 2020 and 2023. This slump has contributed to layoffs, financial instability and a dampening effect on China’s post-pandemic economic recovery.
China’s economic challenges are multifaceted, stemming from a post-COVID recovery that has fallen short of expectations. Despite hopes that the end of stringent COVID-19 restrictions would rejuvenate consumer spending, foreign investment and manufacturing, the reality has been starkly different. Consumers are saving more than spending, foreign firms are withdrawing investments, and the property sector, along with local government finances, has been severely impacted. These developments raise doubts about the sustainability of China’s growth model, which has long been driven by construction and investment over consumption.
Tokyo's benchmark stock index hit a new 34-year high for the third straight trading day on Tuesday. It followed a record close on New York's Dow Jones Industrial Average on better-than-expected US economic numbers.
The Nikkei 225 finished the day at 37,963. It surged more than 1,000 points or 2.9 percent from Friday. Monday was a holiday in Japan.
The index briefly topped the 38,000 mark for the first time since January 1990. Semiconductor and communications-related shares led the way on the back of a robust Japanese corporate performance.
The Nikkei Stock Average has gained 5 percent over the past three trading days. The benchmark is getting closer to its highest-ever point of 38,915, which it reached in December 1989.
Most of the stocks are new high this year. Smart investors choose the growth stocks.,
Japan just enter recession with no possible cure. Go figure. HK China not in recession with bright future. US sanctions and attempts to destroy China is the last battle before the end of America hegemony... America follows England to history
Japan UK Germany are the peripherals of the American empire. They are the first to go down followed by the main body . Just like the way the Roman empire go down
The leadership’s response has been to pledge a boost in domestic demand and economic recovery for 2024, with a focus on supporting the economy through more stimulus measures. Yet, the effectiveness of these initiatives remains to be seen, as previous measures have underwhelmed market expectations and investor confidence. The government is advocating for a proactive fiscal policy and a prudent monetary policy, aiming to enhance economic vitality and address the risks and imbalances plaguing the economy. Nonetheless, the path to a sustainable recovery appears complex, with challenges such as managing high levels of debt, stimulating consumption and navigating geopolitical tensions.
Japan’s Nikkei index hits record high as tech rallies on AI hype
Investing.com-- Japan’s Nikkei 225 index hit an intraday record high on Thursday, buoyed chiefly by gains in the technology sector as hype over artificial intelligence spurred a rally in major chip stocks.
The Nikkei 225 jumped 1.8% to a record intraday high of 39,001.50 points, crossing a peak last seen in 1989, before the unwinding of a massive speculative bubble in Japan.
The broader TOPIX index rose 1% and was also in sight of a record high.
Gains on the Nikkei were driven chiefly by heavyweight technology stocks, as consensus-beating fourth-quarter earnings from AI darling NVIDIA Corporation (NASDAQ:NVDA) drummed up hype over an AI-led boost for the sector in the coming months.
Chipmakers and chip-adjacent stocks were among the top performers on the Nikkei. Advantest Corp. (TYO:6857)- which is also an Nvidia supplier- rose 4.2%, while Tokyo Electron Ltd. (TYO:8035)- Japan’s most valuable chipmaker- rose 3.4%. Chipmaker Dainippon Screen Mfg. Co., Ltd. (TYO:7735) was the top gainer on the Nikkei with a 7.8% surge.
Chipmakers and chip-adjacent stocks were among the top performers on the Nikkei. Advantest Corp. (TYO:6857)- which is also an Nvidia supplier- rose 4.2%, while Tokyo Electron Ltd. (TYO:8035)- Japan’s most valuable chipmaker- rose 3.4%. Chipmaker Dainippon Screen Mfg. Co., Ltd. (TYO:7735) was the top gainer on the Nikkei with a 7.8% surge.
Nvidia reignites stock rally, Tokyo smashes 34-year high
NEW YORK: Global stock markets rallied Thursday as investors cheered bumper profits from US chip giant Nvidia, seen as the bellwether for artificial intelligence, with records falling in Asia, Europe and North America.
Shares of Nvidia surged 16.4 percent, lifting its market value to almost US$2 trillion, after reporting that quarterly profits soared to US$12.3 billion – on record high revenue driven by demand for its technology to power artificial intelligence.
The Nasdaq powered up three percent, while both the Dow and S&P 500 ended at fresh records. The blue-chip index lodged its first close above 39,000 points.
"Nvidia shows that AI is here to stay," said Adam Sarhan of 50 Park Investments. "It's a tipping point where AI is going to go mainstream and get mass adoption and it's going to be very bullish."
Euphoria over Nvidia and AI touched off a broader rally in tech shares, sending Japan's Nikkei 225 up 2.2 percent to end at an all-time high of 39,098.68 points, breaking a record high that had stood since 1989.
After the so-called "lost decades" of economic malaise, punctuated with the 2008-2009 financial crisis, Japan's shares began picking up around 2013 and recent months have seen them gain momentum.
Stephen Innes, managing partner of SPI Asset Management, said that "the highly anticipated Nvidia earnings report, which many deemed the investing event of the year or decade, seemingly didn't disappoint."
Nvidia value $1.7 Trillion but revenue only $61 Billion TTM Generally acceptable matrix 1700/61 = 27.9, a new Guinness World Record just achieved. the forward forward 1,000 years value already sky high. Nvidia supply those graphics chips now rebranded as AI chips. Mellanox [an Nvidia company] is the Main Contractor who builds those datacenters for say $5 Billion per pop to owners like Microsoft, Google, Amazon, Apple, Disney streaming, Netflix etc Nvidia is an asset low company. Nvidia does not invest in datacenters. Nvidia has zero factories.
People do not generally rent datacenters, big companies insist on full control of self owned datacenters. Negligible market for renting out AI datacenters Companies like Netflix, Disney, HBO etc want plain vanilla fileservers for movies
Outside the Big 4, Microsoft, Google, Amazon, Apple, other companies in Nasdaq are not doing well. Even Tesla is suffering. The wobble is increasing. 😁
SYDNEY: Global stock markets were on course for a week of heady gains on Friday as AI darling Nvidia's stunning results sparked a wave of record highs from Asia to Europe and the U.S., while the yen nursed losses on a range of currencies.
Nvidia surged 16.4%, adding a record $277 billion in market value on Thursday. The Santa Clara, California-based company's results supercharged a global AI-led rally in technology stocks, propelling the S&P 500, the Dow Jones Industrials, Europe's STOXX 600 and Japan's Nikkei share average to record highs.
Tokyo is closed for a holiday on Friday, with the Nikkei futures trading up about 300 points.
Some of the regional tech shares were taking a breather after a stellar rally this week, but MSCI Asia-Pacific ex-Japan IT index still put on 0.5% to the highest since March 2022.
Smart investors look for growth stocks not for CCP's Huawei. Lol.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by IDQWE001 > 2023-11-29 09:45 | Report Abuse
HSI 17,359.08 VS TSEC 17,401.38