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The US Securities and Exchange Commission requires Chinese companies to disclose government regulatory risks

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Allison Lee, a commissioner with the Us Securities and Exchange Commission, said Us-listed Chinese companies would have to disclose the risk of government influence on their business as part of regular risk disclosures.
Spark Global Limited reports:
Spark Global Limited reports:

Earlier, Chinese regulators overhauled US-listed ride-hailing software platform Didi Chuxing.  Since then, China has required all Chinese companies setting up distance education platforms to become non-profit making organizations.  The two announcements sent shares of Chinese Internet companies listed in the United States tumbling.

U.S. listed companies must disclose risk factors, including regulatory risks, and Chinese companies are no exception, Allison Lee told Reuters in an interview.  She did not say whether the SEC would investigate Didi.  Some media reported earlier that Chinese regulators had asked Didi to postpone its listing due to cybersecurity concerns.  Didi later said it was unaware of the incident.

In response to media enquiries, an SEC spokesman said it would not comment on whether investigations were being conducted on individual listed companies.

Emerging market stocks erased last year’s gains

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A sharp fall in China’s stock market caused emerging-market stocks to wipe out all their gains for the year.

The MSCI emerging Markets index fell 2.4 percent on Monday and is now down for 2021. Strategists are divided on the outlook. State Street Global Markets recommends allocating only about 20 per cent to developing countries. Others, such as AllianceBernstein, think strong risk appetite will return.

“It is too early to shift back into emerging market equities, especially as the Fed’s recent policy shift provides some short-term support for the dollar,” said John Bilton, global head of multi-asset strategy at Morgan Asset Management.

Emerging market stocks have been hit this year by the pandemic backlash, erasing 12 per cent of their gains since February. The asset class is now significantly underperforming other stocks. The MSCI developed Markets index is still up 15 per cent this year.

Read more: Traders look to emerging markets for growth as recovery fears mount

“We prefer developed Markets to emerging Markets,” Daniel Gerard, senior multi-asset strategist at State Street Global Markets in Singapore, said in a written response, citing low COVID-19 vaccination rates in many developing countries.

Among developing markets, he is more bullish on areas that are more likely to benefit from the global recovery from COVID-19, particularly commodity-driven Brazil and the technology markets of South Korea and Taiwan.

Stocks in Malaysia and the Philippines have been among the world’s worst performers this year, southeast Asia is still dealing with a pandemic backlash, and in China, an index of Internet stocks has lost more than a third of its value since peaking in February amid a government crackdown on the tech sector.

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Another challenge comes from China. China’s economic growth, once a bellwether for the global recovery from the pandemic, has slowed as demand for exports has weakened. The prospect that the Federal Reserve will act to reduce its stimulus is another headwind weighing on currencies in developing countries.

Against this backdrop, emerging market equities continue to fall. The developed markets index trades at a forward PE ratio of 13 times, more than two standard variances below the five-year average for developed markets.

Gerard said State Street is cautious about Southeast Asia and Mexico, where the outbreak is putting pressure on earnings growth.

Still, there are those who think emerging markets will eventually outperform.

“Not only will many emerging markets be seen as cyclical recovery options that have not yet been fully priced in, but large-cap technology stocks, which are heavily indexed in emerging markets, may come back into focus,” Morgan Harting, a fund manager at Alliance Bernstein in New York, said in a written response. “As some regulatory concerns are clarified, I expect some industry strategists to refocus on Chinese companies.”


Us debt rose four months in a row, why are still a few top investment banks bearish?

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As the outbreak in the US turned on its head last week and the market became more sceptical about the prospects for an economic recovery, us treasuries continued to rise, in fact, for the fourth consecutive month. Still, Wall Street giants are sticking to their bearish stance.

The epidemic situation is grim and the economic outlook is not optimistic

Every state in the US reported more COVID-19 cases in the past week than in the previous week, according to Johns Hopkins University.

Last week, San Diego, Calif., and Los Angeles both saw their biggest single-day increases since February, with Los Angeles’ hospital admissions more than doubling in two weeks. And in Florida, new cases nearly doubled in two weeks, from 7.8 percent in the week of July 2 to 15.1 percent last week, according to state health data.

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At present, the novel coronavirus has increased the difficulty of global epidemic prevention, and put forward higher requirements for vaccination and government governance. The number of new infections in the United States climbed again this week. People are concerned that if the mutant strain spreads and causes a new wave of epidemic, it will undo the gains made in the earlier economic recovery.

According to statistics, the United States is currently under great inflationary pressure. The CONSUMER price index (CPI) rose 5.4 per cent in June from a year earlier, while the core CPI rose 4.5 per cent, the biggest year-on-year rise since November 1991. John Williams, an American economist, has even suggested that the US is at risk of hyperinflation, with inflation now at 13.5%.

Analysts say the current low interest rates on U.S. treasuries reflect the market’s pessimistic outlook for the economy, which is overdone compared to reality.

Overview of Institutional Views

The Fed has already committed to buying $120bn of Treasuries and mortgage-backed securities each month until “further material progress” is made in the recovery. Fed Chairman Jerome Powell has said discussions about an eventual tapering are ongoing, but there is intense debate over the timing and pace.

Morgan Stanley argues that while new evidence continues to show that vaccines are highly effective in reducing severe illness, hospitalizations and mortality. But the bank disagrees that growth is slowing. In fact, the second quarter GDP tracked by the bank’s U.S. economists was closer to 12%. While they expect the pace of growth to slow, they still see a strong economic recovery. On this basis, Morgan Stanley firmly recommends shorting the 10-year Treasury.

Analysts note: The yield on the benchmark 10-year Treasury note fell to its lowest since early February and stocks sold off sharply, just a week after the S&P 500 hit an all-time high and volatility surged. As always, markets are forward-looking, reflecting not only expectations for a strong recovery in the global economy, but also uncertainty on the road to recovery.

The bank notes that the recent collapse in Us Treasury yields is actually due to unwinding positions. In addition, the improved prospect of congress passing an infrastructure package will put upward pressure on yields.

Matthew Hornbach, global head of Macro Strategy, said:

“Economic data is certainly one of the factors that will keep interest rates going up. We disagree that economic growth is slowing. In fact, the second quarter GDP tracked by our US economists was close to 12%. While they expect the pace of growth to slow, they still see a strong economic recovery. Their base case forecasts for US and global growth in 2021 (7.1 per cent and 6.5 per cent, respectively) remain unchanged.”

Iain Stealey, international chief investment officer for fixed income at jpmorgan chase, expects 10-year Treasury yields to rebound to between 1.5% and 2% by the end of the year. But for now, jpmorgan has not increased the size of its short position in US treasuries, saying it would be “more comfortable to see the market improve” before making any real moves.

The net supply of Treasurys fell in June compared with previous months as more outstanding debt came due, according to Citigroup. While many investors have been holding bearish positions for months, they are reluctant to expand those positions by selling more bonds when the market turns sour.

Scott Thiel, chief solid income analyst at BlackRock inc., said while the recent resurgence of the pandemic has indeed dented optimism in the bond market, it is not to the point where we see little new selling today.

It still thinks the restart is real and the economy is recovering. But in the current environment, Treasury yields are too low and the market is too pessimistic about the economic outlook.

On the other hand, concerns about the economic recovery are fueling bond buying. Antoine Bouvet, senior rates strategist at ING, said:

“On the face of it, this level is consistent with a recessionary environment… “There is some moderate scepticism about the strength of the recovery, which suggests a further increase in demand for safe assets even as central banks continue to buy most of them.”

But Bouvet also questioned the strength of the U.S. bond buying spree, saying, “I’m not sure the market really thinks that.” Analysts say the combination of buyers and sellers has pushed yields down too far. At the same time, a strong economic recovery could reverse the decline in yields for some time to come, prompting a rally in Treasuries.

Morgan Stanley Investment Advice

U.S. debt

Still firmly advising against the 10-year Treasury, which is expected to end the year at a yield of 1.8%.

The dollar

It will continue to strengthen in the short term. The growing divergence between the TRAJECTORY of inflation and monetary policy in the US and other large economies is a reason to be bullish on the dollar.

Agency MBS

Maintain a long-term structural reduction view. The prospect of fed tapering and recovery, albeit from low levels, means that demand for agency MBS from both the Fed and banks, the two biggest buyers, is likely to fall at the same time, supporting the case for a reduction.

Will markets face “catastrophic” consequences when the debt ceiling deal expires this week?

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As much as $28.5 trillion of U.S. debt is at risk of default if Congress fails to reach an agreement to raise the debt ceiling before Saturday, when a two-year deal to suspend the government’s borrowing limit expires. Five prominent economists weigh in on whether the expiration of the U.S. debt ceiling will have a big impact on markets.

Treasury Secretary Janet Yellen on Friday urged lawmakers to raise or suspend the NATION’s debt ceiling as soon as possible, warning that the Treasury would need to take “extraordinary measures” to prevent a default if Congress did not act by August 2.

Yellen said the issuance of state and local government series debt (SLGS) will be suspended at 24:00 GMT on July 30 until the debt ceiling is suspended or raised.

In a letter to House Speaker Nancy Pelosi, Yellen said Oct. 1, the first day of the next fiscal year, could be a critical date for the nation’s ability to pay its debts without new debt ceiling legislation, because of the large amount of federal spending.

Legendary economist David Rosenberg reported last week that the US debt ceiling could have an impact on markets:

“Watch this deal [to raise the debt ceiling] closely — it hasn’t seeped into the market’s thinking yet.”

We asked five analysts, economists and fixed-income investors how the expiration of the U.S. debt ceiling might affect the market.

Can a deal be reached to raise or suspend the debt ceiling by the end of the month?

In fact, none of the five experts expects any deal to raise the U.S. debt ceiling before the end of July.

Nancy Vanden Houten, chief economist at Oxford Economics, said that because the debt ceiling is considered a “must pass” issue, both parties often use it as leverage for other legislation.

The most likely scenario, Houten said, is that the debt ceiling will be raised, but probably as part of a budget reconciliation measure that Congress isn’t expected to pass until the fall.

Joseph Abate, strategist at Barclays, said:

“The likelihood of resuspending the debt ceiling before July 31 is low. “I think a lot depends on the congressional negotiations on the infrastructure bill and whether they can get a bipartisan bill through the House and get enough votes in the Senate.”

When will the Treasury run out of unconventional measures?

The Treasury has taken extraordinary measures in the past, such as suspending different programs, and Congress has always raised the debt ceiling before those measures run out. Jeff Hibbeler, fixed income portfolio manager at Exencial Wealth Advisors, said:

“Several analysts [reports] I’ve read suggest that October could be the date [for a deal to raise the debt ceiling]. But it depends on the legislative process and how much they want to tie it to the various budgets or other legislation they’re trying to pass.”

All five experts agreed that the Treasury should be able to take unconventional measures by the fall:

“We think they probably have enough cash and borrowing authority to get through September and October.”

Why warn now?

Experts say it is not uncommon for a U.S. Treasury secretary to issue a warning to lawmakers, if for nothing else, generally to prompt them to act quickly. Exencial’s Hibele says:

“The Treasury secretaries don’t want there to be any doubt [about] whether the United States is going to honor its obligations.”

Vanden Houten of the University of Oxford says this is a more unusual time, given the huge costs associated with the outbreak. Vanden Houten says:

“While Congress has always managed to raise or extend the debt ceiling in a timely manner, there is no guarantee that it will do so again, but the consequences of not doing so would be severe.”

How will the market react?

Even if the July deadline passes, market reaction is expected to be muted, experts said. Overall market volatility is likely to rise only if the Treasury’s unconventional measures are exhausted, with the biggest impact on short-term Treasury bills. Overall, however, big, wild swings in yields are unlikely.

Dan Krieter, head of fixed income strategy at BMO Capital Markets, said some short-term investors may view the maturity date as a good opportunity to buy Treasurys at lower costs.

Barclays’ Abate said Treasury yields are likely to fall when investors know extraordinary measures could be exhausted.

Vanden Houten of The University of Oxford also expects more volatility in financial markets, especially if there is still uncertainty about when Congress will raise the cap. Vanden Houten said:

“If the risk of a recession rises, stock prices could fall, and bond investors could demand higher yields if they think there is an increased risk that the Treasury will not be able to repay its debt.”

David Roberts, co-head of Liontrust’s global fixed income portfolio, said that even if the cap was raised at the last minute, it would not have a significant long-term impact on the market.

The last time that happened was in 2011, when the ratings agency Standard & Poor’s downgraded U.S. Debt, and the United States lost its AAA debt rating. However, US Treasury bonds remain among the highest rated in the world, suggesting that markets have little doubt about us creditworthiness.

It’s time to buy gold as a hedge against the global currency flood!

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Credit Suisse argues that gold may be undervalued on a strictly fundamental basis. Moreover, with the ever-present risk of runaway central banks and market crashes, and the explosive growth of the global money supply, now is the time to buy gold shares as a hedge against risk. It sees at least 7 per cent further upside.

According to Global equity strategist Andrew Garthwaite, gold shares trade at an unusually cheap 12-month rolling price-to-earnings ratio (a 25 per cent discount to the broader market, compared with a 30 per cent premium normally), as well as cheap price-to-book relative to the broader market.


As for gold itself, Credit Suisse notes that it is also at the bottom of a 10-year range relative to silver or industrial commodities, and is 20 per cent below its 2011 peak in real, inflation-adjusted terms. Gold technicals suggest an upside breakout.


[Gold price upside potential]

According to the Credit Suisse model, gold prices are driven by TIPS yields and the dollar. Given the current decline in TIPS yields (considered real interest rates) and future trends, combined with structural bearish views on the dollar, Credit Suisse sees 7% upside potential for gold.

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On a strictly fundamental basis, gold may be undervalued, and there is always the risk that central banks will run out of control and markets will crash. As Garthwaite writes, “Gold is a hedge against extreme financial deleveraging.” He adds:

“Government debt, deficits and corporate debt levels are very high. We continue to believe that if TIPS yield much more than zero, it will start to raise fears of a debt trap, which in turn could lead to a large risk-off trade. This could prompt the Fed to respond by pushing down real yields [and devaluing the currency].”


Gold also serves as a hedge against explosive growth in the global money supply:

“We think this will also lead to more gold purchases by central banks [as currencies are depreciating]. Central banks account for 12% of gold demand. According to our calculations, if all central banks collectively hold more than 10 per cent gold, gold demand will increase 1.6 times.”

A – share indexes closed down more than 2 percent, the United States in the general education stocks fell before the market

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On Monday, the three major A-share indexes collectively fell, with the education and liquor sectors in the green. Afternoon opening, the three major indexes continued to fall. As of 13:44, the gem fell 5% within the day, falling below 3300 points; Shanghai fell 3.39%; The Shenzhen Component Index extended losses to 4 per cent. More than 3,700 shares fell in both markets, while less than 700 shares rose. As of press time, northbound capital has actually sold more than 10 billion yuan net.

Fortunately, in the late session, under the semiconductor assists, A shares of the three major indexes narrowed to within 3 percent.

By the close, the Shanghai index was down 2.34 percent, the Shenzhen Component index was down 2.65 percent, and the Growth Enterprise Market index was down 2.84 percent. On the disk, LED, military and other plates to advance; Medical beauty, cloud games, online education, biological vaccines and other sectors led the decline.

Northbound capital day net sold 12.8 billion yuan, nearly a year high.

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Education, liquor plate fell sharply, bad news power is amazing

A share disk today, medical Beauty, liquor, medical, insurance plate led down; Uhv, biological breeding, military, charging pile, semiconductor rise against the trend.

As the Ministry of Education announced over the weekend that it would tighten supervision of online education, the three major after-school training companies plunged by 730 billion yuan. Monday morning A shares, education stocks also fell. Xueda education, Only Education and other direct open limit. Bean god education in the gem also fell by the daily limit. Hong Kong education stocks also took a beating. Afternoon in shares, New Oriental online fell more than 30%; New Oriental -S fell more than 37%.


Baijiu shares fell sharply in early trading on Monday, with the sector index down nearly 9% in afternoon trading. Kweichow Moutai broke the 1,800 yuan mark, down nearly 6%; Wuliangye touched the limit, Shanxi Fenjiu, Shere wine industry, Swellfang, tipo wine has previously fallen by the limit.

Among the hot liquor stocks with a market value of less than 100 billion yuan, Swellfun was closed by the trading limit at the opening. The company previously announced that its first-half net profit was 377 million yuan, while its first-quarter net profit was 419 million yuan, meaning that it recorded a net loss in the second quarter. Gujinggong wine plunged 8.38%; Today’s fate fell 8.21 percent. After the opening of the afternoon, Gujinggong wine fell 9.51 percent, the fate of the current limit.


Zhongtai securities in a research report pointed out that the recent plate movements or related to money adjustable positions, plate fund positions in the second quarter of liquor ratio decreased, but the fundamentals to see the continuation of the steady, high-end wine in the second half of the performance of steady growth, PiJia have upside, seeking up to upgrade at the same time, the current high-end wine corresponding valuation next year outstanding performance to price ratio. The one-year dimension yield brought by the valuation switch is relatively clear; The secondary high-end medium report is expected to increase in general, and it is optimistic that the core secondary high-end wine enterprises will enter the rapid growth stage of national expansion and dynamic sales volume in the next two years.

The FTSE China A50 tumbled 5 per cent, while the Hang Seng Technologies index posted its biggest drop of the day

The poor performance of A-shares also dragged the FTSE China A50 index lower, extending its daily loss to 5 per cent at press time and marking its biggest intraday drop since March last year.


Meanwhile, The State Administration for Market Regulation on Saturday ordered Tencent Holdings LTD to revoke its exclusive rights to online music. Shares of Internet giants fared poorly on Monday, with Hong Kong-based Tencent Holdings falling below the HK $500 mark and closing 6.52% lower in the morning on turnover of more than HK $21.7 billion.

The Hang Seng Technology Index fell in the afternoon, dropping 7 per cent in what was feared to be its biggest intraday fall on record. Meanwhile, Tencent Holdings continued its decline, down 7.38%; Alibaba fell 6.4% on the day, its biggest intraday decline since March.

Meituan, Alibaba-SW and Tencent Holdings accounted for the top three losses in the Hang Seng Index, which fell 1,000 points on the day and extended losses to 4 percent in late trading.


Kuaishou fell in late trading and is now down nearly 12 per cent at HK $114.4, below its OFFERING price of HK $115. According to China Securities Journal, on the morning of July 26, a we-media news caused a shock in the market. The news said that the brokerage Morgan Stanley will fast hand target price from HK $300 per share to HK $50 per share. However, the reporter contacted the relevant Hong Kong brokerage analysts said, did not see the relevant research report, this news is the latest research report on Morgan Stanley misreported.

Meituan extended its losses to as much as 15 per cent in late trading, its biggest drop on record. Prior to this, the State Administration for Market Regulation and other seven departments jointly issued “on the implementation of online catering platform responsibility to effectively safeguard the rights and interests of food delivery workers.”

The hang Seng index fell more than 1,100 points to close down 4.13 per cent at its lowest level for the year. The Hang Seng Technology Index closed down 6.57 per cent, its biggest drop of the day. Education stocks were bloody, science and technology stocks collectively tumbled, property management, catering and other plates suffered heavy losses; Semiconductor plate late strong against the market to pull up.

In the United States stocks before the extended decline

In the United States, Chinese education stocks fell before the market, good future fell more than 70%, high road fell more than 63%, New Oriental fell more than 54%, Youdao fell more than 42%. Popular Chinese concept stocks before the market to maintain last week’s decline, shell, Didi fell more than 10%; Tencent Music Fell more than 16% after the state Administration of Market Regulation over the weekend ordered Tencent Holdings Ltd. to revoke its exclusive rights to online music. Futu Holdings, Vipshop will fall 7%, Xiaopeng Automobile, Baidu fell more than 5%.

Securities analysis

Industrial Securities said that the medium-term to maintain the “macro panic in the second half of the year, A share is not A bear market, the market first after the rise of the basic judgment, there is no systemic risk in the market as A whole, flat in the search for novel, structural opportunities are exciting, and the long cattle of science and technology innovation is thriving. However, in the short term, the A-share market is faced with the risk of fluctuations in overseas markets, the pain in the process of reducing the stock risks at home, and the negative impact brought by the changes in supervision policies such as education and Internet. Therefore, the market enters A bumpy period in the short term, and the difficulty of making money in the previous hot topics such as science and technology innovation is increased, and even there are adjustment risks. Investment strategy, it is recommended to take the opportunity to adjust and optimize the position portfolio, the patient layout of high-quality growth stocks on dips, do not recommend blind reduction of positions because of short-term pessimism.

Guotai Junan Securities pointed out that in the second half of the year, there are two major macro risks in the market, the domestic economic recovery pace is more than expected to decline, and the United States continued high inflation caused by Taper pace ahead of time, and high profit growth can simultaneously counter the macro economic growth rate and overseas monetary tightening liquidity shock. Based on this clue, combined with the performance guidance given to us in the announcement, we recommend two main investment lines: 1) high economy sustainable: semiconductor, new energy can pay attention to military, special equipment and other industries; 2) The industry may usher in an economic turning point, and there is room to configure food and beverage, auto parts, consumer electronics, etc.

Essence Securities mentioned that growth continues to become the main line of the market in the middle of the three logic: (1) economic growth center long-term downward: growth is scarce; (2) Neutral loose monetary policy tone: liquidity conducive to growth style; ③ The logic of the long track is not falsified: style switching is difficult to happen. High in the short term, the industry boom and fund allocation direction adjustment makes the new energy, semiconductor and other popular track continue to maintain a strong, future growth stock market is expected to military industry, brokers in the early period of the contour boom stagnation plate and the automobile industry diffusion of marginal improvement recently, such as mid market is still expected to further extension to the small dish.

Citic Securities pointed out that the market liquidity began to tighten, is expected to plate extreme differentiation early end, but the overall market correction risk is very low, stable to good macro fundamentals support structure rebalancing, growth plate from the high track wheel to the low, some consumption and pharmaceutical industry with left layout value.

Meituan fell as much as 15% at one point, and a proposal to protect the rights of food delivery workers landed

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In late Hong Kong trading on July 26, Meituan’s fall extended to as much as 15%, its biggest ever.


Today, the State Administration for Market Regulation and other seven departments jointly issued “on the implementation of online catering platform responsibility to effectively safeguard the rights and interests of takeaway food delivery workers”. The opinion makes requirements from two aspects:

In terms of ensuring labor income, the platform is required to establish an income distribution mechanism that matches the work task and labor intensity to ensure that the normal income of food delivery workers is not lower than the local minimum wage standard. The “strictest algorithm” shall not be taken as the assessment requirement, and the assessment factors such as order quantity, on-time rate and online rate shall be reasonably determined by means of “algorithm in the middle” and so on, and the delivery time shall be appropriately relaxed.

Improve the social security, urge the platform and third-party cooperative units to participate in social insurance for the food delivery deliveryman who has established labor relations, support other food delivery deliveryman to participate in social insurance, and participate in the pilot of occupational injury protection for flexible employment personnel on the platform in accordance with national regulations. We will encourage exploration of diversified plans to provide commercial insurance and raise the level of multi-level insurance coverage.

Didi has been under scrutiny by seven Chinese authorities. Shortly after its U.S. listing, the company was investigated for illegal collection and use of personal information.

After didi’s accident, the outside world on the rise of meituan rumors swirl. In recent years, Meituan has been expanding its own business, gradually extending its hand to bike-sharing, community group buying, Meituan hotels, cat’s Eye movies, etc. Among them, Meituan’s market share in community group buying has reached the first place.

Meituan may have long wanted to enter the ride-hailing market, but the early entrant is Didi, which, through subsidies and other means, accounted for 90 per cent of 562 million users last year.

In mid-July, Meituan launched its wechat mini program “Meituan Taxi”. The mini program changed its name at the end of June, from “Meituan taxi marketing number” to “Meituan Taxi”. The Meituan Taxi-hailing mini program, which is not unlike the Meituan taxi-hailing App, offers a smart checkbox service and 23 models.

All three major A-share indexes were hit hard by regulatory measures in several countries, with the Growth Enterprise Market down more than 5% at one point. Hong Kong shares also suffered, with the Hang Seng Technology Index closing down 6.57%, its biggest drop of the day. The Hang Seng index fell more than 1,000 points on the day, with Meituan, Alibaba-SW and Tencent Holdings contributing the top three declines.

The Hang Seng Index Company today also launched the Hang Seng New Consumer Index and the Hang Seng Shanghai, Shenzhen and Hong Kong New Consumer Index. The new consumer Index includes alibaba, Meituan and other companies.

Spark Global Limited reports:

The Hang Seng New Consumer Index covers Chinese companies listed in Hong Kong; The Hang Seng Shanghai-Hong Kong Stock Connect consumer Index is A cross-market index, with A range of stocks from China a-share listed companies and Hong Kong stock Connect components. Both indices have a base value of 3,000.

Mr Wong Wai Hung, Chairman and Index Director of Hang Seng Index, said: “The launch of the two indices will provide investors with reference investment options, both onshore and offshore, to capture the emerging opportunities in China’s consumption upgrading trend and help them make informed decisions in cross-border asset allocation.

Both indexes are composed of the 50 largest stocks by average market capitalization over the past 12 months and are subject to semiannual revisions. At the same time, they are all calculated by the floating market value weighting method, and the upper limit of the proportion of individual constituent stocks is 10%.

According to the official website of hang Seng, hang Seng new consumption index of the top ten weighted stocks include: Alibaba (09988) accounted for 13.80%, Meituan (03690) accounted for 8.87%, chuang Co., LTD. (00669) accounted for 5.02%, etc. The top 10 heavyweight stocks in the Hang Seng New Shanghai-Shenzhent-Hong Kong Consumer Index include Meituan, Kweichow Moutai and Wuliangye.

Musk, who is worth more than $160 billion, revealed his top five sources of wealth

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Tesla CEO Elon Musk now has a net worth of more than $160 billion, making him the second richest person in the world after Amazon founder Jeff Bezos. At a recent Conference at The B Word, Musk revealed The top five investments that have made him a fortune.

As expected, Musk’s wealth, like most billionaires, is highly concentrated in a handful of projects. Here are the top five investments that propelled his net worth over $160 billion:

5. A dog

Musk’s positions: undisclosed

Musk, known as the “father of Dogecoin,” has long been a supporter of dogecoin and has often teased the meme-inspired cryptocurrency on Twitter. Musk’s “push” pushed dogecoin to a peak of about $0.75 in May. Since then, however, dogecoin prices have fallen by more than 70 percent.
4. The etheric currency

Musk’s positions: undisclosed.

After peaking above $4,300 in May, The value of Ether has also fallen by about 50 percent. However, it is still up more than 600% over the past 12 months.

3. The currency

Musk’s positions: undisclosed.

“The bitcoin I own is worth a lot more than the Ether and dogecoin I own,” Musk said at the conference. Musk added that both SpaceX and Tesla own bitcoin, and tesla could start accepting it again as a payment method once bitcoin mining becomes more reliant on clean energy.

2. To raise the company

Musk’s stake: Estimated at 48%, but could be lower if Musk’s stake was diluted in the last funding round.

Value: $35 billion, based on a $74 billion valuation of SpaceX’s last funding round, and assuming Musk still owns 48% of the space exploration company.

“Besides Tesla, the only company I own that has a high value is SpaceX,” he said at the conference.

1. Tesla

Musk’s holdings: 22.4% (as of Dec. 31). Under the pay deal, Musk will still receive billions of dollars in Tesla stock.

Value: $141 billion, based on Tesla’s market cap of $631 billion as of July 21.

In addition to the five investments, Mr Musk added that he also owns stakes in two private start-up companies, Neuralink and the Boring Company, but that these investments are of little value relative to other investments.

The rally in Treasury yields came to an abrupt end, with 10-year TIPS bidding at a record low

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After two days of sharp gains from their lows, Treasury yields on Thursday came to a screeching halt. The day’s weak U.S. jobless claims data helped U.S. bond bulls rally. The European Central Bank, which vowed to stay the course on easing, sent European bond yields lower across the board after the ECB decision, putting pressure on U.S. bond yields.

While the yield on the benchmark 10-year Treasury note briefly rose above 1.30 per cent overnight, it did not last long, hitting a session low of 1.235 per cent at midday in New York before falling 1 basis point to 1.284 per cent during the day, market data showed.


Yields across other cycles also fell. The 2-year yield was late down 0.8 basis points at 0.208 percent, the 5-year yield was down 1.6 basis points at 0.726 percent and the 30-year yield was down 2.2 basis points at 1.919 percent. The closely watched spread between two-year and 10-year Treasury yields, considered a measure of economic expectations, remained near 108 basis points.

Notably, the Treasury’s $16 billion auction of 10-year Treasury Inflation-protected Securities (TIPS) on Thursday yielded the lowest interest rate on record, continuing the journey to the bottom in real yields. The auctions attracted good demand, reflecting continuing concerns about inflation.

Real interest rates have never been this low in past auctions. Jim Vogel, interest rate strategist at FTN Financial in New York, said the 10-year TIPS auction was well received at a yield of minus 1.016 percent on a multiple of 2.50, with real yields below minus 1.0 percent throughout morning trading. Vogel said:

“Traders assess inflation expectations based on what they think investors will worry about next, with little regard for fundamentals or fed communication.”


TIPS are a bond investment with a coupon rate much lower than other Treasury investments of the same maturity. For TIPS, the principal balance is adjusted monthly to match the current U.S. inflation rate (usually up, sometimes down). Thus, the TIPS ‘” real yield to maturity “shows what investors would have earned if they were above (or, in this case, below) inflation.

Analysts noted that the real yield investors were willing to accept at the auction would lag behind the official US inflation rate of 1.016 per cent a year for 10 years. Why would they do that? There may be two reasons for this. First, TIPS protect against unexpectedly high inflation in the future. Second, the nominal yield on the 10-year Treasury note (currently 1.28 per cent) is also likely to lag inflation and does not look like it has much upside potential. For many investors, TIPS seem to be the better bet.

An unexpected rise in initial jobless claims added to market concerns

On the news side, both the latest U.S. jobs data and the performance of overseas bond markets weighed on yields on Thursday.

New claims for unemployment benefits rose to 419,000 in the week ending July 17, up 51,000 from the previous week, labor Department data showed Thursday. The median forecast from a media survey of economists had been 350,000.


The surprise increase in jobless claims reflected big increases in four states: Michigan, Texas, Kentucky and Missouri. The rapid spread of the CORONAVIRUS Delta variant is likely to inject more volatility into the data in coming months at a time when many factors already make seasonal adjustment of weekly data difficult.

Now that the Fed has entered a period of silence ahead of next week’s July rate decision, the poor jobs data may have reinforced expectations that the Fed will remain dovish.

Ben Jeffery, rates strategist at BMO Capital Markets in New York, said after weeks of volatility, the market is entering a period of equilibrium ahead of next week’s Fed decision. Jeffery said:

“The 10-year Treasury yield is likely to move in a range of 1.25%-1.3%. “The market is in the process of starting to build positions ahead of next week’s Fed meeting, so we expect a sideways move through Wednesday.”

European Central Bank’s “dovish” push European bond yields fell across the board

On the global bond market, a broad decline in European bond yields on Thursday following the ECB decision also weighed on U.S. yields. German 10-year bunds fell 3.2 basis points to -0.428%. French 10-year yields fell 3.9 basis points to -0.087 per cent. Italy’s 10-year bond yield fell 5.1 basis points to 0.636%; Spanish 10-year yields fell 5.7 basis points to 0.284%.

European Central Bank President Christine Lagarde said On Thursday the central bank had learned lessons from past crises and would not derail the current economic recovery by withdrawing emergency support measures too soon.

The ECB, which is implementing a new monetary policy strategy that has been in the works for 18 months, earlier this month revised its forward guidance on interest rates to tie policy changes more closely to its new 2 per cent inflation target, and said it would not necessarily react immediately if price growth exceeded the target for a short period.

Lagarde also reiterated on the same day that any withdrawal from the PEPP (Emergency Outbreak Asset Purchase Program) would be “premature.” She added that the governing Council had not yet discussed a regular bond-buying program, which many analysts had expected to be expanded to make up for after PEPP exits. PEPP is scheduled to end in March 2022.

‘This means that the new strategy actually marks a shift to a more dovish stance,’ ING economist Carsten Brzeski wrote in a note. Bloomberg Economic Research expects the ECB to expand its asset purchases at its September meeting to inject more liquidity into the economy.Spark Global Limited reports:

Ransomware encryption payments have exceeded $208 million

According to Spark Global Limited, data from Chainalysis shows that more than $208 million worth of cryptocurrency has been received from ransomware addresses so far in 2021. In 2020, ransomware crypto payments hit a record of more than $416 million, but mid-year figures suggest that 2021 payments will surpass 2020.

In addition, in identified ransomware crypto payments, the majority of those cryptocurrencies went to non-compliant trading platforms. The Chainalysis data also showed that the deposit addresses for withdrawals were very small, suggesting that the players behind the attack were very concentrated.

The most famous recent case of cryptocurrency extortion was the gas pipeline attack in the US earlier this year. When DarkSide attacked Colonial Pipeline, the largest fuel Pipeline company in the United States, its transportation lines were shut down for several days. Eventually, the company paid DarkSide a cryptocurrency ransom worth $5 million.

It’s worth noting that Colonial Pipeline is just one of the companies that have recently been attacked by the DarkSide. A Unit of Toshiba in France said it was also recently attacked by the group and had 740GB of data stolen. Ireland’s health service was also hit by a ransomware attack. Acer, the world’s leading computer maker, was hit by REvil’s ransomware attack, and CNA Financial, a US insurance company, was attacked by Phoenix’s ransomware ring.

Why do cryptocurrency extortions happen so often?

The Darkside hacking group previously said it was dissolving, according to security research firm FireEye.

FireEye said DarkSide had informed its partners that due to pressure from law enforcement and the US, it had lost access to the infrastructure it uses to operate and would be shutting down. However, security experts say it is not uncommon for ransomware groups such as DarkSide to disband and later reappear under another name.

DarkSide was reported to have received a total of $90 million in bitcoin ransoms before shutting down.

Due to the anonymity of ransomware based on distributed network, it is extremely difficult to identify the culprit behind it, and it is also the key to the detection of such cases. However, such incidents often involve a huge amount of money and a wide range of influence. Before there is no effective response method, how to ensure the security of information network has become a global problem.

Such targeted security incidents have arguably become the biggest global threat in 2021.

Some legislative prevention and post-supervision measures

In fact, many countries and regions have introduced measures of legislative prevention and post-supervision. Earlier, the European Union announced plans to crack down on the sending and receiving of cryptocurrencies in a bid to limit money laundering.

On the other hand, the HEAD of the U.S. Securities and Exchange Commission said cryptocurrencies fall under U.S. securities-based swap rules and regulations, noting that there could be more regulation. Separately, U.S. Democratic Senator Durbin and U.S. Republican Senator Grassley will hold a hearing on the ransomware attack on July 27.

In view of the ransomware attack this year, the analysis believes that in order to prevent the attack of hackers, in addition to having perfect laws and regulations and regulatory system, it is more important to rely on an effective security tool.

In addition, from a post-regulatory perspective, economic criminal means based on blockchain networks and various new technologies have a very high cognitive threshold. Even for professional teams like FBI, it is still difficult to find an effective breakthrough in a short time in the face of “Kaseya attack”. For case investigators, it is often “difficult to investigate, collect evidence and trace the source”, and it is difficult to find the entity behind it. Solving a case is like looking for a needle in a haystack.

According to Experts at OKLink, the risk to distributed networks is often a combination of attacks by external entities and internal actors. Therefore, to deal with the criminal means of new technology, it is necessary to build a system around the physical layer, data layer, system layer, encryption layer, risk control and other dimensions. And using new technology to regulate new technology is the current direction of the industry generally agreed. With the help of effective security tools, the security and privacy of distributed network data storage, data transmission and data application are fully protected.