In today’s briefing:
- US-Listed China Plays: Thoughts On Dissention
- Ohayo Japan | Walmart Tariff Warning
- Japan Morning Connection: Market Rotation Away from Tech as Big Winners Take a Breather
- Semi Production Equipment Part 1: Great Tech Upgrades but Expectations Are Still Inflated
- #147 India Insight: India Tops Asia in BofA Survey, Tata Firms Plan EV, INR 15k Cr Steel Investments
- Time for Some Shorts For the Hong Kong Summer
- Moutai Hopes Cultural Events Can Win Over Global Drinkers
- [Blue Lotus Daily]:1211 HK/ZK US/AITO/LKNCY US
- [Blue Lotus Daily-TMT Update]:BABA US/JD US/3690 HK/PDD US/Red Note/BILI US/1810 HK
- China’s E-Commerce Giants Adjust Prices as U.S. Tariffs on Low-Value Parcels Bite
US-Listed China Plays: Thoughts On Dissention
- With another US-listed China play subject to an Offer – Dada Nexus (DADA US) – what exactly is the process for dissentient shareholders to dissent?
- Do they need to vote Against, For, or Abstain? Or not at all? The short answer: in the Cayman Islands, there are no restrictions on how a dissenter can vote.
- This insight is a bolt on to my ongoing series on appraisal rights in the privatisation of a Cayman Islands companies listed in the U.S.
Ohayo Japan | Walmart Tariff Warning
- The S&P 500 rose 0.4% for a fourth straight gain while the Nasdaq fell 0.2%, as investors rotated into defensive dividend stocks amid concerns of overheating
- Meta fell on delays to its AI rollout, and Applied Materials gave a weak forecast after hours. Walmart posted strong results but warned of price hikes from tariffs
- Kyocera faces pressure from Oasis Management to improve profitability through a 1,000 billion yen share buyback
Japan Morning Connection: Market Rotation Away from Tech as Big Winners Take a Breather
- Ai plays generally down, with AMAT after mkt dulling sentiment further, despite looking conservative.
- Kioxia numbers look decent, but QoQ guidance is down on FX, with no follow through for Sandisk in the US.
- Woeful price action for Kyocera yesterday despite an activist win, with the market still cautious over management bungling.
Semi Production Equipment Part 1: Great Tech Upgrades but Expectations Are Still Inflated
- Growth expectations have come down, 2025 now expected flat YoY 1) China, Auto & Industrial Capex declining 2) Intel inflated Capex is deflating 3) capacity add only from HBM, AI
- The big structural positives continue (HBM, GAA, BSPD, High NA). This means higher Capex intensity. From 3nm to 14A, Capex doubles. Wafer price doubles.
- The risk is to overestimate demand: who can afford chips 2x more expensive? Chips that generate revenue or lower costs, ie chips that run applications in Data Centers
#147 India Insight: India Tops Asia in BofA Survey, Tata Firms Plan EV, INR 15k Cr Steel Investments
- India surpasses Japan as Asia’s top market in Bank of America survey, driven by strong infrastructure growth and rising consumption.
- Tata Motors Ltd (TTMT IN) plans to boost EV sales with new models like Harrier.ev and Sierra.ev, targeting a recovery in FY26.
- Tata Steel Ltd (TATA IN) plans a INR 15,000 crore capex in FY26, with 80% allocated to domestic projects, including decarbonization efforts.
Time for Some Shorts For the Hong Kong Summer
- Reprieve on the tariff front gives investors the opportunity to sell/short.
- Despite market action, a global slowdown and a US recession are still on the cards.
- We look at some stocks that will not perform well in this environment.
Moutai Hopes Cultural Events Can Win Over Global Drinkers
- High-end liquor maker Kweichow Moutai Co. Ltd. (600519.SH -0.59%) is prioritizing cultural adaptation as it pushes for a global expansion, a top executive said at a Caixin forum.
- Speaking at the inaugural Caixin London Atlantic Dialogue on Thursday, Deputy Communist Party Secretary You Yalin emphasized that the state-run firm is leveraging its branded cultural events — “Moutai Night” and “Moutai Culture Festival” — to expand further into global markets. He said that while drinking customs vary around the world, one common thread is alcohol facilitating connections between people.
- Moutai is best-known for its eponymous brand of “baijiu,” a traditional Chinese spirit. Moutai’s high-end baijiu, which can cost thousands of yuan a bottle, is often present at diplomatic events such as state banquets.
[Blue Lotus Daily]:1211 HK/ZK US/AITO/LKNCY US
- 1211 HK: BYD’s New K-Car Spotted in Spy Shots (+)
- 1211 HK/ZK US/AITO: Week 19 (May 5–11, 2025) Sales Rankings(+/+/+)
- LKNCY US: Mixue Group Signs RMB4 Billion Brazil Coffee Bean Purchase Deal(-)
[Blue Lotus Daily-TMT Update]:BABA US/JD US/3690 HK/PDD US/Red Note/BILI US/1810 HK
- BABA US: Alibaba’s Qwen Team to Launch AGI-like Deep Research Functionality for Free User Access(+)
- BABA US: Ele.me’s Retail Digital System Integrated into Taobao Instashopping (+)
- JD US/3690 HK: JD, Meituan, Ele.me Summoned by Government (///)
China’s E-Commerce Giants Adjust Prices as U.S. Tariffs on Low-Value Parcels Bite
- The sweeping U.S. tariff policy targeting low-value parcels from China has upended cross-border e-commerce operations, forcing platforms such as Temu and Shein to pull fully managed listings and scramble to rework their logistics strategies.
- PDD Holdings Inc.’s Temu, a pioneer of the full-consignment model — where goods are shipped directly from China to American buyers — now lists only “local warehouse” or semi-managed products on its site and app. Fully managed items are marked “out of stock,” and one Temu seller told Caixin their U.S. storefront was automatically suspended by the platform.
- The disruption follows Donald Trump’s presidential order, signed on April 9, imposing harsh tariffs on small parcels from the Chinese mainland and Hong Kong. The directive mandates either a 120% ad valorem duty or a $100 flat fee per package, with the latter set to double to $200 from June 1.
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