Market Review
Market Focus
Chinese Market
Brokerage Classification Evaluation Results Released
The China Securities Regulatory Commission recently disclosed the 2023 classification evaluation results to securities firms. Currently, the industry has a total of 106 participating entities. The proportions of A, B, and C class companies are 50%, 40%, and 10%, respectively, with the number of AA-rated companies remaining at about 14. The classification evaluation of securities companies is based on the companies' risk management capabilities and ongoing compliance status, combined with the development of their business, according to the "Securities Company Classification Supervision Regulations."
New Energy Vehicle Companies Continuously Break Records
Including new car-making forces and BYD, China's mainstream new energy vehicle companies announced new car delivery sales for August 2023. New forces in car making such as Li Auto, NIO, and XPeng, as well as BYD, have all reported record-breaking figures. Among them, BYD delivered 274,386 new cars in August, a year-over-year increase of 56.80% and a month-over-month increase of 4.70%.
Price Wars Become the Biggest Highlight of the Chengdu Auto Show
Today, nearly 1,600 vehicles from 129 auto brands made their appearance at the Chengdu Auto Show. However, the pressure in the car market has not eased at all. In order to compete for the limited market, the previously subsided price war has resurged. With the addition of price wars, national support policies, and more new products, the car market may anticipate a new consumer craze.
Overseas Markets
US to Provide Depleted Uranium Shells to Ukraine for the First Time
The Biden administration is considering sending controversial depleted uranium anti-tank rounds to Ukraine, which could help destroy Russian tanks, as part of a new military aid package for Ukraine to be announced next week. According to an informed source, the US M1 Abrams tanks are expected to be delivered to Ukraine in the coming weeks, and these depleted uranium rounds can be fired from these tanks.
Europe’s Largest Copper Producer Suffers Massive Theft by an "Insider"
Aurubis AG, Europe's largest copper smelter and producer, the world’s largest copper recycler, and a leading supplier of non-ferrous metals, has reported potentially massive theft resulting in losses of hundreds of millions of euros. The company believes it has become the target of further criminal activities following an organized theft in June this year, targeting its high-value precious metal-containing intermediate products during the refining process, affecting its 2022/2023 financial results.
Apple and NVIDIA to Become Strategic Investors in Arm’s US IPO
SoftBank arranges for Apple, NVIDIA, and Intel to be strategic investors in Arm's US IPO, with other shareholders including Samsung, AMD, and Google. Many investors are likely to individually subscribe to up to $100 million in Arm shares. Institutions estimate that Arm's IPO valuation could be between $50 billion and $60 billion.
Event Preview
Last week, global financial markets were in a state of excited suppression, with China successively introducing policies related to real estate, financial markets, and exchange rates, alleviating investors' concerns about China's economic prospects. On the other hand, the debate on whether the Federal Reserve will further raise interest rates still significantly suppresses global risk assets. As a result, last Friday saw no particularly noticeable trends in global stock markets, commodities, foreign exchange markets, and bond markets.
This week, besides digesting the impact of US nonfarm payrolls and China-related policies, financial markets also need to pay attention to a series of important economic data and official speeches to be announced during the week. The main economic data or risk events this week include the interest rate meetings of the central banks of Australia and Canada, China's Caixin trade account, M2 and foreign exchange reserves, service PMIs of several countries in Europe and America, and speeches by central bank officials in Europe and America, as detailed below.
