Longbridge Breakfast | a collective violent rally in Chinese stocks, citi hinted that Tesla has 75% downside

Good morning! A good day starts with making money.

Today, the HKEx only trades in the morning, with a random close between 12:00-12:10. The Japanese stock market, the South Korean stock market, the Taiwan stock market, and the German stock market are closed for one day. The Australian stock market closes at 11:10 a.m. Hong Kong time. The UK stock market closes at 20:30 Hong Kong time in advance. The French stock market closes early at 21:05 Hong Kong time.

Overnight U.S. stocks

Overnight, most of Europe's major stock indexes closed higher. The three major U.S. stock indexes generally closed lower, with the Dow down 0.25% at 36,398.08 points, the S&P 500 down 0.3% at 4,778.73 points, and the Nasdaq down 0.16% at 15,741.56 points.

Big tech stocks were mixed, with Apple down 0.66%, Amazon down 0.33%, Netflix up 0.25%, Google down 0.31%, Facebook up 0.41%, and Microsoft down 0.77%.

Airline stocks were mixed, with Boeing down 0.45 percent, American Airlines up 0.11 percent, Delta Air Lines down 0.31 percent, Southwest 1.35 percent and United Down 0.68 percent.

Popular Chinese stocks rose sharply, with the NASDAQ Golden Dragon China Index closing up 9.40%, the largest one-day gain since 2008. Leju rose more than 31%, Fun Live, Siku rose more than 26%, Gaotu rose more than 21%, iQiyi, 51Talk, NetEase Youdao rose more than 16%, Good Future, Tencent Music rose more than 14%, Douyu, Autohome rose more than 13%, Futu Holdings rose nearly 13%, Bilibili, Vipshop, Shell rose more than 12%, New Oriental, Zhihu, 21% rose more than 11%, Weibo, Pinduoduo, Baidu, Huya, Wuxin Technology rose more than 10%, Mingchuang Premium Rose nearly 10%, Tiger Securities, Alibaba, Qutoutiao rose more than 9%, NetEase rose nearly 9%, Tucson Future, Ctrip, 36Kr, Mushroom Street rose more than 8%, JD.com, 51job, Huanju Group rose more than 7%, Uxin, Happy Auto rose more than 6%, Xunlei rose more than 5%, Tencent ADR rose more than 4%, Fang tianxia, Ebang International, and All Things Xinsheng rose more than 3%.

U.S. stock news

Tesla will recall about 475,000 vehicles in the U.S., close to last year's total global deliveries

Tesla notified the National Highway Traffic Safety Administration that it plans to recall all 356,300 Models produced between 2017 and 2020, and opening and closing the trunk may damage the cables connected to the rearview camera, resulting in the image not being displayed. In addition, 119,000 Model S vehicles were recalled due to engine cover locking issues.

Tesla responds to "premium skyrocketing" in China

From the statistics of December 30, Tesla's vehicle premium increase is about 10% on the national average, and the premium of the high-performance version of the model is more concerned, and the increase is within 20% of the national average.

U.S. streaming media manufacturers are seizing the Asian market with localized content

U.S. streaming vendors are spending heavily on producing content products for Asian audiences to capture the region's growing user base. Disney will release original series produced in Japan in early December. Amazon announced that it will start producing and sourcing content for its channel Prime Video in Southeast Asian countries such as Thailand, the Philippines, Indonesia and Singapore in 2022.

Hong Kong stock news

Kuaishou cut employee benefits

From February next year, the rental subsidy will be adjusted, the coverage of housing subsidies will be reduced, and the employees who can receive subsidies will only include ordinary employees with less than 3 years of social service; free afternoon tea and free meals will be cancelled, breakfast and lunch will be adjusted to use energy coupons or cash to eat; and a new "maternity gift" will be added, which is divided into three levels: 1,000 yuan, 2,000 yuan and 3,000 yuan.

China Huarong: Trading suspension will continue

China Huarong is actively promoting the slimming down of institutions, and intends to transfer 79.92% of the equity held by Huarong Financial Leasing, 40.53% of the equity held by Huarong Xiangjiang Bank, 71.99% of the equity held by Huarong Securities, 48.88% of the equity of Huarong Jinshang indirectly held, 59.256% of the equity of Huarong Rongda Futures held by Huarong Rongda Futures, and 70% of the equity of Huarong Consumer Finance, and the equity of Huarong Trust. Trading in the Company's shares has been suspended since 1 April 2021 and will continue to be suspended.

Country Garden: Partial repurchase of 7.125% senior notes due 2022

Country Garden has repurchased on the open market the 7.125% senior notes due 2022 with a total principal amount of US$14.1 million. The purchased ticket will be cancelled accordingly. The Company will continue to monitor market conditions and further repurchase its senior notes in due course.

Singapore Highlights

Singapore and China have reached 14 cooperation agreements, the most in seven years

The Joint Commission on Bilateral Cooperation (JCBC), the highest level bilateral cooperation mechanism in Singapore and China, held its annual meeting on 29 December. Government departments, enterprises and institutions of the two countries signed 14 memorandums of understanding and cooperation agreements after the meeting.

Macro & Industry

Bridgewater founder Dalio: The Fed could raise interest rates 4-5 times, and next year it will be a sensitive issue

Ray Dalio said the Fed is expected to raise interest rates 4-5 times next year until it has a negative impact on the stock market. Given that the U.S. will see midterm elections in November, a rate hike will be a politically sensitive issue because it will hurt prospects for economic recovery too quickly or too widely.

National market supervision work video conference deployment of 2022 key work

Thoroughly implement the fair competition policy, improve the regulatory rules for supervision according to law, improve the regulatory chain before and after the event, promote the improvement of departmental coordination and regulatory synergy, comprehensively grasp the key points of monopoly regulation, and improve the ability to regulate fair competition. Deepen the governance of market order, continue to carry out the "iron fist" action in the field of people's livelihood, and resolutely curb prominent problems in market order.

China's new energy vehicle subsidies are about to decline

The state subsidy for new energy vehicles in 2022 will be reduced by 30% on the basis of the subsidy in 2021. The person in charge of a car company said that if the subsidy is to be reduced by 30% next year, consumers need to pay up to 5400 yuan to buy a car.

RCEP is effective

On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) will enter into force in 10 countries— Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand, and Australia. South Korea will also join the effective implementation on February 1. After the agreement enters into force, more than 90% of the trade in goods in the region will gradually achieve tariff-free.

Lithium salt price increase tide began

Recently, lithium mining enterprises in western Sichuan and other places have sent news of price increases, and lithium salt has exceeded 200,000 yuan / ton, straight to 250,000 yuan / ton. In addition, driven by downstream demand, the supply of lithium salt is insufficient. CITIC Securities expects that lithium prices will remain high in 2022, and the price center will be significantly higher than in 2021, driving the performance of lithium sector companies to thicken significantly, and the valuation advantage and allocation value of the lithium sector in 2022 are higher.

Big line ratings

Argus: Raised the McDonald's price target from $275 to $300.

Argus: Raised Tesla's price target from $1,010 to $1,313, maintaining a Buy rating.

Citi: Raised Tesla's price target from $236 to $262 and maintained the "Sell" rating on the stock. This represents a 75.9% drawdown.

Citi: Raised the price target for Ford from $20 to $23 to maintain a "neutral" rating.

Baird: Lowered the Peloton target price from $90 to $70 and maintained the "outperform" rating.

Benchmark: The first rating given to Tencent Music.

Credit Suisse: Reaffirming Johnson & Johnson's "outperform" rating, the target price remains at $200.

Huatai Securities: The first "buy" rating given to JD Logistics, with a target price of HK$34.5.

Morgan Stanley: Overrated Darley Foods and lowered its price target by 8.8% to HK$5.2.

CICC: Raised the price target of Dongfang Electric to HK$15.72, rating "outperforming the industry".

CICC: Maintains Xiaomi Group's "outperform industry" rating and a target price of HK$34.

Credit Suisse: Maintains Xiaomi Group's "better than broader" rating with a target price of HK$27.

Hit new messages

Huanlong Holdings and Deying Holdings are in the subscription period.

Jinli Permanent Magnet was listed on the Stock Exchange from 31 December 2021 to 7 January 2022 at an offer price of HK$33.80 to HK$40.30 per lot of 200 shares and is expected to commence trading on the Stock Exchange on 14 January 2022.

China's third-ranked power battery manufacturer Zhongxinhang officially submitted an H-share listing application to the International Department of the China Securities Regulatory Commission, planning to go to Hong Kong for an IPO, becoming the first company to submit an H-share listing application in the International Department after the International Department launched the draft of the new regulations.

Zhongzhuo Medical Holdings Limited, a comprehensive private healthcare provider in Hong Kong, disclosed a prospectus on the Hong Kong Stock Exchange to be listed on the Main Board market, with CICC as the sole sponsor.

Hong Kong muddy water contractor GC Construction Holdings Limited disclosed a prospectus on the Hong Kong Stock Exchange for listing on the Main Board.

Shandong Hongli Special-shaped Steel Pipe Co., Ltd. applied for listing on the NASDAQ IPO, code "HLP".

SK Hynix sought to have Intel's NAND business available on the NASDAQ.

New listings today

No new shares are listed in Hong Kong today.

Reminder today

09:00, China December official manufacturing PMI

16:30, Hong Kong, China Money Supply M3