SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Julius Wong who wrote (164730)11/5/2020 6:05:18 AM
From: TobagoJack  Respond to of 217792
 
am glad am in long NIO / XPEV

Better than bitcoins

Shall refrain from claiming profit too soon for this round



To: Julius Wong who wrote (164730)11/5/2020 5:22:28 PM
From: TobagoJack  Read Replies (1) | Respond to of 217792
 
Re <<My EV money is on William Li Bin>>

Looking good. Need to consider adding to position and increasing leverage, per 'how to trade a vertical market'

If I were in charge of GM I would consider a merger of 'almost equals', as I once advocated AOL to buy NEM

bloomberg.com

Nio Tops GM in Market Value, Buoyed by Bets on Electric Future

Esha Dey
6 November 2020, 00:51 GMT+8

Chinese electric car maker Nio Inc. now has a bigger market valuation than 112-year-old General Motors Inc., as investors bet on strong growth in electric vehicle adoption in the people’s republic over the next five years.

Nio’s American Depositary Receipts have surged in recent weeks, following a spate of good news - including crossing a key sales milestone, a renewed push for electric cars in China and the increased possibility of Joe Biden winning the presidency. The stock has jumped nearly 28% this week alone.

The latest surge has driven Nio’s market value to $53.4 billion, according to Bloomberg data, while GM’s current capitalization stands at $51.6 billion.



Electric vehicle start-ups are often said to benefit from investors’ willingness to value them as technology stocks as opposed to a typical automotive manufacturer. Tesla Inc., whose valuation presently stands around $411 billion despite producing a fraction of the numbers of cars that GM makes, is a prime example.

“Tesla’s swollen valuation has boosted expectations for the growth potential of its China rivals, especially as those start-ups ride on smaller base comparisons and China is mounting a strong regulatory push for EV adoption,” Bloomberg Intelligence analyst Steve Man wrote in a note earlier this week.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE



To: Julius Wong who wrote (164730)11/5/2020 5:32:23 PM
From: TobagoJack  Read Replies (2) | Respond to of 217792
 
Am bullish on fintech and China fintech

Having the rules spelt out is net net positive even if temporarily sets back certain ventures

to mark the copybook

was not in the Ant IPO subscription (thank goodness) and when it was cancelled did cause a buzz amongst some boyz

bloomberg.com

Why China Changed the Rules on Jack Ma’s Ant Group




Jack Ma Photographer: Marlene Awaad/Bloomberg

Years of loose regulatory oversight in China helped billionaire Jack Ma’s Ant Group become the world’s most-valuable financial giant, with businesses spanning payments, banking, wealth management and insurance. But a turnabout in rhetoric from Chinese authorities -- and new rules they slapped suddenly on its lucrative consumer-loan business -- signal the once-fertile landscape for the fintech industry has changed. The first casualty was Ant’s $35 billion mega-listing on the eve of its debut in Shanghai and Hong Kong.

1. What are the new rules?They’re actually draft rules to regulate the nation’s more than 200 online microlenders, which refers to companies that offer relatively small, unsecured loans via the internet, and are banned from accepting deposits. The proposals include:

When they jointly offer loans with banks, the online firm must provide at least 30% of the funding itself (instead of shifting practically all of them to the bank or selling them to third parties, as Ant has been doing).Loans to an individual would be capped at 300,000 yuan (about $45,000), or no more than a third of the borrower’s average income in the past three years. For corporates, each client’s lending cap is set at 1 million yuan.Online microlenders will be banned from operating outside their provincial base unless they receive special approval from the CBIRC and have 5 billion yuan of minimum registered capital. Such permission, if granted, needs to be renewed every three years.A shareholder cannot control more than one microlender operating nationally.The draft rules were published Nov. 2 by the China Banking and Insurance Regulatory Commission and the People’s Bank of China. Public feedback was left open until Dec. 2.

2. What prompted it?The immediate trigger is unclear, as regulators have been considering such rules for at least a year. In September they dealt blows to Ant and other companies with new licensing and capital demands and a new cap on the use of asset-backed securities to fund quick consumer loans. Then, at a high-profile conference in late October, Ma blasted China’s financial system and questioned global regulatory models. He called traditional banks “pawn shops” because they require collateral for loans instead of using “ big data” and other high-tech tools to assess credit risk like Ant does. “Good innovation is not afraid of regulation, but is afraid of outdated regulation,” he said. China shouldn’t “regulate the future with the method from yesterday.”

3. And then?China’s Financial Stability and Development Committee met on Oct 31. Vice Premier Liu He, a confidante of and key economic adviser to President Xi Jinping, said there that from then on, fintech firms must be supervised and subjected to the same regulatory requirements as traditional players to guard against growing risks. A few op-eds from scholars and regulators on state media followed, criticizing some fintech firms for charging exorbitant fees or failing to protect client data privacy. Then on Nov. 2, Ma was summoned to a rare joint meeting with the country’s central bank and three other top financial regulators. The draft rules followed, and on Nov. 3, the Shanghai exchange suspended Ant’s listing two days before its scheduled debut, citing the regulatory changes. Ant then pulled the Hong Kong one.

4. What will it mean for Ant?It’ll be a big blow. Ant’s CreditTech unit, which includes its two microlenders, is its biggest earnings driver. Revenue jumped 59% to 29 billion yuan in the first six months of the year, contributing 40% to the group’s total. In the 12 months ending June 30, Ant helped provide small, unsecured loans to about 500 million people through the microlenders: Huabei (Just Spend) and Jiebei (Just Lend). Out of the about 1.7 trillion yuan in consumer loans it has underwritten, only about 2% were kept on its own balance sheet, with the rest funded by third parties or packaged as securities and sold on. The new 30% minimum co-lending requirement would mean Ant needs to underwrite 520 billion yuan of loans on its own, according to an estimate by Bernstein. With the leverage ratio capped at 5 times for online microlenders, a minimum of 104 billion of net assets will be required, or three times its current level of 35
billion yuan. If the Ant IPO gets back on track, analysts are predicting a much lower valuation with multiples closer to banks, as the regulatory risks show it’s more “fin” than “tech.”

5. Are other companies affected?Sure. There are 249 online micro lenders in China and many of them are conducting similar consumer lending businesses just like Ant though to a much smaller scale. Other fintech giants such JD.com and Tencent Holdings are also among major players.

6. Is there a bigger problem?The fintech industry has presented regulators with unprecedented challenges because of its huge client base and growing role in China’s money flows and financial plumbing. While they make financial services more convenient and accessible to hundreds of millions of users, they are pushing more credit to college students and other customers with little income -- or credit history -- at a time when China’s household leverage is climbing to record. Guo Wuping, head of consumer protection at the CBIRC, said in a recent commentary that Ant’s Huabei service was similar to a credit card but with higher charges. (People flock to it, however, because it’s convenient for online shopping and requires no credit check.) The biggest worry, however, is that the online lenders are offering other banking services without meeting the same capital and leverage requirements as imposed on banks. If something went bust, it could undermine overall financial stability.

7. Who benefits?Big Chinese banks certainly welcome the rules. They have been vying with Ant for customers and keep losing ground. China Merchants Bank Co., known as the king of retail banking, rallied almost 9% in the days after the rules were announced. Moody’s said the proposed rules would strengthen protections for individual borrowers. It’s also a win for President Xi Jinping and the Communist Party as they prioritize financial and political stability. In their view, allowing Ant -- a private company -- to gain too much sway over the financial system could ultimately undermine the party’s grip on power.

8. What does it say about investing in China?For foreign investors, the Ant saga has raised new questions about the viability of Hong Kong and Shanghai as premium financial centers, and China’s commitment to the kind of transparency needed in modern, open capital markets. That’s particularly so after the party’s Central Committee signaled greater openness in a new five-year plan that included a time-line for moving forward on promises of greater foreign access and relaxing controls over the yuan and capital flows.

The Reference Shelf:More QuickTakes on China’s market meddling, its financial market openingand its yuan internationalization and digital currency plans, as well as Jack Ma and Alibaba.Ant Group by the numbers.Bloomberg Opinion’s Shuli Ren weighs in on Ma’s blunt words and China’s shock response.Bloomberg News takes a look inside the unraveling of the Ant IPO, and at what more China has in store for Ant.The Financial Times’s take on the reasons for Beijing’s crackdown.— With assistance by Charlie Zhu, Jun Luo, and Zheng Li

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE



To: Julius Wong who wrote (164730)11/5/2020 5:42:17 PM
From: TobagoJack  Read Replies (1) | Respond to of 217792
 
The direction is interesting, and once again the Teams Europe and Japan are being left behind

Forget the Teams Canada and Australia

Am in any case unsure about the efficacy of the education that results, but as all matters, let's see

bloomberg.com

U.S. Colleges Woo Lucrative Students With China-Based Campuses

NYU Shanghai, Duke Kunshan, and others host scholars unable to travel because of the pandemic.

6 November 2020, 05:00 GMT+8



The NYU Shanghai campus.

Photographer: Yan Cong/BloombergNeveah Sun was looking forward to studying at New York University this fall, majoring in psychology and journalism while experiencing life in Manhattan’s Greenwich Village. Instead, the 19-year-old from the Chinese city of Suzhou spends her days at a WeWork office in Shanghai that NYU has converted into classrooms for a new program catering to students who can’t get U.S. visas because of Covid-19. “At first I thought it was a little weird, but I’m getting accustomed to it,” she says. “Also, we have a fantastic view.”

NYU can accommodate students in Shanghai thanks to a joint venture it formed there in 2012 with East China Normal University. A separate degree-granting institution with its own admissions procedures, administrators, and almost 2,000 students, NYU Shanghai shares some faculty members with the New York school and sends many of its undergraduates to study there as exchange students. Now, NYU Shanghai is temporarily home to more than 2,800 additional students, most of them Chinese enrolled at the New York campus but unable to travel.

Other parts of Asia have seen foreign universities set up campuses with local schools, commercial companies, or investors in search of profit. But that business model doesn’t work well in China, where the government is more protectionist, says Michael Bartlett, a partner at Singapore-based Alumno, an international education consultant. Instead, he says, many Western schools benefit from having Chinese affiliates, which can help them gain better scores in global rankings and greater opportunities for professors and students. “For some, it’s about the reputation, having a name, and being able to punch above their weight in a key market,” Bartlett says.

By hosting students like Sun who can’t go abroad, those partnerships are helping foreign schools hold on to a good chunk of revenue: Chinese students typically pay full tuition, because they don’t usually qualify for financial aid. And students being hosted by affiliated schools in China don’t have to attend Zoom classes in the middle of the night because their professors are in a time zone half a world away. In China, where the virus is largely contained, schools are having in-person classes. “My friends at other universities are a bit envious,” says NYU Shanghai Vice Chancellor Jeffrey Lehman. “Their students who are blocked from entering are taking all of their classes remotely, while our students are able to avoid that and feel a sense of community.”



Students in the lounge of the NYU campus at WeWork Shinmay Union Square in Shanghai on Nov. 3.

Photographer: Yan Cong/Bloomberg

China accounted for one-third of the 1.1 million foreign students in the U.S. in the 2018-19 school year, the most recent data available, and those Chinese students generated $14 billion in revenue for U.S. colleges and universities, according to Rahul Choudaha, director of research at the Graduate Management Admission Council. Fewer students from China, he says, could cost U.S. higher education—already in a funding crisis—$700 million this year. Enrollment for international undergrads attending U.S. colleges has dropped 14% from last fall, according to data from the National Student Clearinghouse Research Center.

Having an affiliate campus in China can help U.S. schools provide temporary homes for students and retain the thousands of dollars in fees each one pays. At Duke Kunshan University, a venture near Suzhou between Duke and Wuhan universities, about 120 students who were supposed to be in North Carolina are taking a mix of in-person and remote classes. Several dozen University of Connecticut students unable to travel are studying at a Chinese campus of the University of Nottingham in Ningbo, which in normal years is the site of a study-abroad program for UConn students. A venture between England’s University of Liverpool and a Chinese partner has added students at a campus in Suzhou, too. “China-based schools are increasingly attractive, because students can be in class without the threat of infection,” says John Darwin Van Fleet, director of corporate globalization at Shanghai Jiao Tong University’s business school. “This is a very good moment to be operating these campuses.”

Kean University has had to close some facilities at its Union, N.J., campus to address a budget shortfall caused by a Covid-related decline in enrollment this fall. But the number of students is up at Wenzhou-Kean University, its joint venture in eastern China. WKU this semester added about 100 students who’d planned to attend other foreign schools, as well as some WKU students who would have spent the year in New Jersey. Kean gets 9% of tuition revenue generated by the venture: “Any revenue coming in would be very helpful,” says President Lamont Repollet.

For NYU, which last school year had a budget of $3.5 billion (not counting its big hospital and medical school), the importance of the Shanghai campus is not whether it can generate a few million dollars of revenue but whether it can help build its global profile and compete for talent against Ivy League schools such as New York rival Columbia, which is much richer. NYU Shanghai says it sends some money to New York, reimbursing costs incurred when NYU hosts exchange students, but is independent financially and doesn’t share profits or receive subsidies with its U.S. co-founder. NYU has about a dozen locations worldwide, including academic centers in Africa, Australia, Europe, the Middle East, and South America, as well as a degree-granting campus in Abu Dhabi.

The worldwide outposts help improve the appeal of NYU back in New York, says Robert Kelchen, an associate professor of higher education at Seton Hall University in South Orange, N.J. Indeed, even though Chinese enrolled at NYU Shanghai get a break on tuition thanks to government subsidies, the joint venture hasn’t hurt the flagship’s ability to attract students from China. NYU had more than 8,700 students from the People’s Republic in 2018-19, according to data from the university, up from about 2,100 in 2012.

The latest U.S. institution to expand in China is New York’s Juilliard School, the renowned arts institution, which opened a branch in Tianjin in September. China’s Ministry of Education in March also approved a partnership between Georgia Tech and Tianjin University scheduled to open in the southern Chinese city of Shenzhen next year.

Critics wonder if foreign schools are paying too high a price for exposure to the Chinese student pool. China scholar Jerome Cohen, founder and faculty director emeritus of the U.S.-Asia Law Institute at NYU’s law school, warned on his blog in January of the threat to academic freedom on China’s campuses from tighter controls by government, including changes to university charters to promote the role of the Communist Party. Foreign universities operating in the country should “expose the realities of contemporary education in China for world consideration,” Cohen wrote.

NYU Shanghai last year began mandating Chinese students take a “civic education” course, similar to mandatory political education classes at other Chinese universities. (Non-Chinese students, who account for half of the school’s undergraduates, don’t have to take the class.) “You need to have political literacy in order to survive as a Chinese citizen in China,” explains NYU Shanghai Chancellor Tong Shijun, previously the Communist Party secretary at East China Normal University. “That’s an essential part of the Chinese education for Chinese students.”

When it comes to its core values, NYU Shanghai maintains academic freedom and emphasizes that message with professors, says NYU Shanghai Provost Joanna Waley-Cohen, who’s also a history professor at NYU in New York. “We tell them to teach and adhere to the standards of academic rigor that they always have,” she says.

Still, despite the benefits, other schools have had second thoughts. Wesleyan University in 2019 ended efforts to open a joint venture in Shanghai, soon after the Middletown, Conn., school’s president warned of “serious concerns about academic freedom and a host of related issues.” And, in 2018, the University of Groningen in the Netherlands scrapped plans for a Chinese campus, citing insufficient support within the? University Council, composed of students, faculty, and staff.

With relations between China and Western countries deteriorating and Chinese president Xi Jinping tightening the government’s control over higher education, the climate is worsening for joint ventures with ties to both sides, says Philip Altbach, founding director of Boston College’s Center for International Higher Education. Universities thinking about expanding in China “are going to be much more careful,” he says. “There’s going to be a major rethinking of how foreign institutions engage with Chinese universities.”

For now, having a Chinese campus is paying off for NYU. “I want to go to New York so bad,” says Cecilia Yiyue Chen, a 19-year-old sophomore at the Shanghai program for visa-less students. But with Covid cases surging in the U.S., “my family thinks Shanghai is way safer.” —With Janet Lorin



To: Julius Wong who wrote (164730)11/12/2020 8:27:24 PM
From: TobagoJack1 Recommendation

Recommended By
marcher

  Respond to of 217792
 
nice recognition of what appears inevitable

EV porn

bloomberg.com

Nio Stock Surge Tops 1,000% as Tesla’s China Nemesis Gains Speed



Nio is also expanding its lineup, recently starting deliveries of an SUV coupe and planning to introduce a new model each year going forward. Photographer: Giulia Marchi/BloombergA year ago, Nio Inc.’s dwindling cash and sputtering sales had the electric-car upstart on the brink of doom. Fast forward, and the stock’s 11-fold gain in 2020 has pushed the Chinese company’s market value past General Motors Co.

No other company better illustrates the swift shift in consumer and investor perception of electric cars than Nio. Skepticism over the technology’s viability has turned into a race to pick the winners, with Nio and main rival Tesla Inc.among the top candidates.



With China’s electric-car market expected to expand rapidly over the coming years, investors are betting that Nio will thrive even as competition intensifies. Yet success is far from guaranteed: Nio’s sales volumes are still minuscule compared with bigger auto-industry rivals, the company has never turned a profit as development and marketing costs rise, and price pressure is getting tougher.

“Another wave of price cuts for premium electric vehicles in China may be on the horizon, stirring up what could be an intense rivalry,” Bloomberg Intelligence analysts led by Steve Man said in a Nov. 11 report.



Nio ES6 on display at the Auto Shanghai 2019.

Photographer: Qilai Shen/Bloomberg

Battery InnovationWhile design is as crucial for electric cars as it is for conventional autos, additional factors can weigh on success, such as driving range, ease of charging, and total cost of ownership. Nio is using flashy showrooms to lure buyers and offers an attractive package that’s winning over early fans in China, its sole market for now.

The starting price for a Nio ES6 SUV is about $54,000, more than a third higher than that of Tesla’s popular Model 3 sedan. But Nio has been innovating with battery options, offering services such as leasing and upgrades, which bring down the cost of owning a Nio over the years. The company also operates battery-swap stations and has a fleet of charging cars to assist drivers at other locations.

While Shanghai-based Nio trails Tesla in sales volumes, it’s been catching up. Its monthly sales rose past 5,000 for the first time in October, while Tesla registrations in China have steadily hovered at around 11,000-12,000 units for the past few months, according to data from state-backed China Automotive Information Net. Tesla doesn’t report monthly sales figures for China.



An ES6 inside a Nio showroom in Shanghai.

Photographer: Qilai Shen/Bloomberg

“Our cars sold at an average price higher than we expected and orders for our cars are very good as well,” Nio Chief Executive Officer William Li told reporters this month in Beijing. “There is a clear differentiation in branding between” Nio and Tesla.

Shanghai ChallengerNio is steadily winning customers to put pressure on Tesla

Source: Bloomberg

Nio is also expanding its lineup, recently starting deliveries of an SUV coupe and planning to introduce a new model each year going forward. The company bolstered its development coffers with a $1 billion funding deal with a local municipality earlier this year, an arrangement that marked a turning point in its fortunes.

Tesla ThreatTo be sure, competition is heating up. Tesla’s new Model Y compact SUV is set to vie directly with Nio. Warren Buffett-backed BYD Co. has more than quadrupled in Hong Kong trading this year as it’s rolled out new models. Great Wall Motor Co. has more than doubled as it stepped up electrification efforts, and Xpeng Inc. and Li Auto Inc. have soared after successful share-market debuts this year.

“Tesla’s brand cachet and wider distribution network could lift its Model Y unit sales above Nio’s,” said the Bloomberg Intelligence analysts.

Then there are the conventional auto giants, from Volkswagen AG and Daimler AG to Toyota Motor Corp. and Hyundai Motor Co., all accelerating their expansion into electrified vehicles. China’s biggest carmaker by sales -- SAIC Motor Corp. -- exceeded Tesla and Nio in domestic new-energy vehicles sales last month.

But China’s car market is expanding, easing the pressure on Nio and its peers as the coronavirus pandemic puts a damper on sales in Europe and the U.S. Auto sales have been rising for four straight months, following a two-year slump.

How China Seeks to Revive Its Electric Car Industry: QuickTake

The government is also keeping a laser focus on electric cars, helping the environmentally friendly segment by using incentives such as purchase subsidies. Sales of new energy vehicles, consisting of pure electric cars, plug-in hybrids and fuel-cell autos, more than doubled to 144,000 units in China last month.

— With assistance by Charlie Zhu, Chunying Zhang, Matt Turner, and Ying Tian

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE