In today’s briefing:
- Good Morning Japan |Equities Continue to Hold; China Stocks on Fire; Japan Major SQ
- China’s EV-Makers Race to Secure Orders Before Subsidies End
- Unrestrained Investment Creates Looming Glut for China’s Solar Supply Chain, Analysts Say
- Logistics Begins Slow Recovery as China Eases Covid Controls
Good Morning Japan |Equities Continue to Hold; China Stocks on Fire; Japan Major SQ
- Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP ABREAST.
- OVERSEAS: SPX continue to hold as Tech leads the rebound; FTC moves to block MSFT acquistion of Activision (good); China stocks continue to be bid; Broadcom strong; PPI on Friday
- JAPAN: Major SQ futures point to +0.4% open on the NKY; Govt continues to push forward with Nuclear rebirth(postive MHI); Kishida outlines how to pay for massive defense spending rise
China’s EV-Makers Race to Secure Orders Before Subsidies End
- Chinese electric-vehicle (EV) makers are pulling out all the stops to lure buyers into placing orders by the end of 2022, before subsidies for new-energy vehicle (NEV) purchases are completely phased out
- Carmakers are adopting these sales strategies because they want to “get in ahead of rivals” to secure as many orders as possible before 2023 amid growing speculation that China’s passenger NEV market will likely enter a phase of readjustment
- Government subsidies were introduced in 2010 to spur the growth of the industry — alongside other support policies such as tax breaks for buyers
Unrestrained Investment Creates Looming Glut for China’s Solar Supply Chain, Analysts Say
- China, by far the world’s largest producer of solar panels and components, will likely face a glut of the photovoltaic (PV) materials next year
- Polysilicon, the main raw material used in solar PV manufacturing, will be in “severe oversupply” in 2023 as reckless investments by industry newcomers are set to double annual production capacity
- Silicon wafers, which are made of polysilicon and used to manufacture solar cells, could also face a production surplus
Logistics Begins Slow Recovery as China Eases Covid Controls
- Logistics services in China are recovering at a sluggish pace, despite the government relaxing its “zero-Covid” policy.
- Some truck freight firms have resumed operations at terminals and distribution centers in major cities after local governments eased large-scale Covid lockdowns.
- But logistics service providers are operating far below capacity as many delivery terminals and distribution centers face lingering, though smaller, restrictions amid a spike in Covid cases.
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