Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>1211 HK/LI US /1810 HK/NIO US/XPEV US: In the 26th week of 2024 (6/24-6/30), new energy vehicles strengthened across the board, mainly due to consumption subsidies（/////////）</li>
<li>MNSO US: Indonesia Plans to Impose 100%-200% Tariffs on Chinese Imports (-)</li>
<li>Macro News Update: Expectations Rise for Consumption Tax Reform (+)</li>
</ul>


1211 HK/LI US /1810 HK/NIO US/XPEV US: In the 26th week of 2024 (6/24-6/30), new energy vehicles strengthened across the board, mainly due to consumption subsidies（/////////）
MNSO US: Indonesia Plans to Impose 100%-200% Tariffs on Chinese Imports (-)
Macro News Update: Expectations Rise for Consumption Tax Reform (+)


[Blue Lotus Daily]:1211 HK/LI US /1810 HK/NIO US/XPEV US/MNSO US/981 HK/BEKE US/2150 HK

<ul>
<li>1211 HK/LI US /XPEV US/NIO US: China and the EU have launched negotiations on electric vehicle tariffs (///////)</li>
<li>BEKE US: Existing Home Sales Increase 61% YoY in the 26th Week of 2024, Expected to Increase 19% YoY in June (+)</li>
<li>1810 HK/ NIO US/ XPEV US/ LI US/1211 HK/300207 SZ/300750 SZ:  Xiaomi's third model was said to be a low priced model, targeting low tier cities .(/////////////)</li>
</ul>


1211 HK/LI US /XPEV US/NIO US: China and the EU have launched negotiations on electric vehicle tariffs (///////)
BEKE US: Existing Home Sales Increase 61% YoY in the 26th Week of 2024, Expected to Increase 19% YoY in June (+)
1810 HK/ NIO US/ XPEV US/ LI US/1211 HK/300207 SZ/300750 SZ:  Xiaomi's third model was said to be a low priced model, targeting low tier cities .(/////////////)


[Blue Lotus Daily]:1211HK/LI/XPEV/NIO/BEKE/1810HK/300207SZ/300750SZ/LKNCY/9926HK/MNSO/600519CH

Andy Fu

<ul>
<li>Aging population, coupled with under-development of retirement pensions, is the major headwind against enhancing consumption; </li>
<li>The headroom of urbanization as a driver for enhanced consumption is not as big as depicted;</li>
<li>Residential housing has, over the years, become the social safety net for the Chinese. Therefore, the bust of the property market takes many years, if not decades, to heal. </li>
</ul>


Aging population, coupled with under-development of retirement pensions, is the major headwind against enhancing consumption; 
The headroom of urbanization as a driver for enhanced consumption is not as big as depicted;
Residential housing has, over the years, become the social safety net for the Chinese. Therefore, the bust of the property market takes many years, if not decades, to heal. 


How to Stimulate China's Consumption, Part II

<ul>
<li>Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;</li>
<li>If we trim the consumption of Japan and US by adopting China's definition, China actually <strong>over-consumes</strong>, both by GDP and by individual categories;</li>
<li>If we expand and align China, Japan and US to consist the same categories, the conclusion of China <strong>underconsumption</strong> becomes true. The categories belong to an older and wealthy society. </li>
</ul>


Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;
If we trim the consumption of Japan and US by adopting China's definition, China actually over-consumes, both by GDP and by individual categories;
If we expand and align China, Japan and US to consist the same categories, the conclusion of China underconsumption becomes true. The categories belong to an older and wealthy society. 


How to Stimulate China's Consumption? Part I

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

<ul>
<li>PDD/SHEIN/AMZN: U.S. CBP suspends customs brokers handling cross-border parcels for Temu and SHEIN (-/-/+)</li>
<li>BABA US/JD US/PDD US/3690 HK:The upcoming regulatory policies on internet platform fees should not be overly negatively interpreted(///////)</li>
<li>BABA US/JD US/3690 HK/1810 HK:Beijing Follows up with Subsidies for Replacing Old Appliances with New Ones, but National Subsidies Are Still Lacking(+/+/+/+)</li>
</ul>


PDD/SHEIN/AMZN: U.S. CBP suspends customs brokers handling cross-border parcels for Temu and SHEIN (-/-/+)
BABA US/JD US/PDD US/3690 HK:The upcoming regulatory policies on internet platform fees should not be overly negatively interpreted(///////)
BABA US/JD US/3690 HK/1810 HK:Beijing Follows up with Subsidies for Replacing Old Appliances with New Ones, but National Subsidies Are Still Lacking(+/+/+/+)


[Blue Lotus Daily - TMT Update]:PDD/SHEIN/AMZN/BABA US/JD US/3690 HK/1810 HK/700 HK/MNSO US

China

MINISO Group Holding is a value retailer with a focus on offering products that are aesthetically pleasing, good-quality, and affordable.

Price Gauge
52-week Range	0.00 - 0.00
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Miniso (MNSO US)

[Blue Lotus Daily]:1211 HK/LI US /1810 HK/NIO US/XPEV US/MNSO US/981 HK/BEKE US/2150 HK

New energy vehicles see growth in 26th week of 2024 due to consumption subsidies; Indonesia plans high tariffs on Chinese imports; expectations...

Blue Lotus Research Institute

[Blue Lotus Daily]:1211HK/LI/XPEV/NIO/BEKE/1810HK/300207SZ/300750SZ/LKNCY/9926HK/MNSO/600519CH

China and the EU are in talks to negotiate electric vehicle tariffs, while Xiaomi plans to release a low-priced model targeting low tier cities....

Blue Lotus Research Institute

How to Stimulate China's Consumption, Part II

The underdevelopment of China's pension system leads to reliance on the residential property market as social safety net. The headroom of...

Blue Lotus Research Institute

How to Stimulate China's Consumption? Part I

The myth of China underconsumption depends on how you count it. China under-consumes in certain consumption categories associated with an older and...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:PDD/SHEIN/AMZN/BABA US/JD US/3690 HK/1810 HK/700 HK/MNSO US

US CBP suspends customs brokers for Temu and SHEIN; upcoming regulatory policies on internet platform fees should not be overly negative; Beijing...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:1211 HK/LI US /1810 HK/NIO US/XPEV US/MNSO US/981 HK/BEKE US/2150 HK

​New energy vehicles see growth in 26th week of 2024 due to consumption subsidies; Indonesia plans high tariffs on Chinese imports; expectations...

Blue Lotus Research Institute

[Blue Lotus Daily]:1211HK/LI/XPEV/NIO/BEKE/1810HK/300207SZ/300750SZ/LKNCY/9926HK/MNSO/600519CH

​China and the EU are in talks to negotiate electric vehicle tariffs, while Xiaomi plans to release a low-priced model targeting low tier cities....

Blue Lotus Research Institute

How to Stimulate China's Consumption, Part II

The underdevelopment of China's pension system leads to reliance on the residential property market as social safety net. The headroom of...

Blue Lotus Research Institute

How to Stimulate China's Consumption? Part I

The myth of China underconsumption depends on how you count it. China under-consumes in certain consumption categories associated with an older and...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:PDD/SHEIN/AMZN/BABA US/JD US/3690 HK/1810 HK/700 HK/MNSO US

​US CBP suspends customs brokers for Temu and SHEIN; upcoming regulatory policies on internet platform fees should not be overly negative; Beijing...

Blue Lotus Research Institute

New energy vehicles see growth in 26th week of 2024 due to consumption subsidies; Indonesia plans high tariffs on Chinese imports; expectations...

China and the EU are in talks to negotiate electric vehicle tariffs, while Xiaomi plans to release a low-priced model targeting low tier cities....

US CBP suspends customs brokers for Temu and SHEIN; upcoming regulatory policies on internet platform fees should not be overly negative; Beijing...