Invesco Golden Dragon China ETF (NASDAQ: PGJ)

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The generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of securities of U.S. exchange-listed companies that are headquartered or incorporated in the Peoples Republic of China. The fund is non-diversified.

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NIO reporta ingresos sólidos en el segundo trimestre y sus acciones suben tras mejoras en calificaciones y objetivos de entrega.

Acciones de NIO suben tras publicación de resultados del 2T

Media

Las acciones de NIO suben un 2,65% en la preapertura tras un aumento en su red de estaciones de cambio de batería en China.

Las acciones de NIO suben este miércoles. ¿Qué está pasando?

Las acciones de NIO caen en la preapertura tras anuncio de ajustes en su servicio insignia de intercambio de baterías.

¿Qué está pasando hoy con las acciones de NIO?

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) <a target="_blank" href="https://www.benzinga.com/topic/jack-ma" rel="noreferrer noopener">co-founder&nbsp;Jack Ma</a> recently reiterated his belief in artificial intelligence&nbsp;during the tenth anniversary of a rural teachers program.
Ma continues to expect&nbsp;AI to reshape the world over the next decade, SCMP reported, <a target="_blank" href="https://www.scmp.com/tech/tech-war/article/3294199/tsmc-cuts-ties-singapore-firm-over-chip-found-huawei-processor-sources" rel="noreferrer noopener">citing</a> the&nbsp;social-media&nbsp;account of his foundation.
Ma, a&nbsp;former teacher, expects AI and&nbsp;China&#8217;s demographic shifts&nbsp;to create new challenges for schools across the countryside.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/guidance/25/01/42874446/samsungs-outlook-dims-amid-hbm-supply-struggles-for-nvidia-and-sluggish-consumer-chip-sales" rel="noreferrer noopener">Samsung&#8217;s Outlook Dims Amid HBM Supply Struggles for Nvidia and Sluggish Consumer Chip Sales</a>
Last December, during the 20th anniversary of fintech giant Ant Group, Ma voiced AI&#8217;s transformational abilities in the next 20 years, the report added.
Ma has&nbsp;focused on the education and agriculture sectors&nbsp;after China abruptly scrapped Ant Group&#8217;s <a target="_blank" href="https://www.benzinga.com/24/11/42245036/alibaba-co-founder-makes-rare-appearance-at-company-campus" rel="noreferrer noopener">initial public offering in November 2020</a>. China fined Alibaba with an antitrust <a target="_blank" href="https://www.benzinga.com/government/24/08/40650893/alibaba-clears-3-year-regulatory-antitrust-scrutiny-stock-gains" rel="noreferrer noopener">penalty of $2.8 billion</a> in 2021. All of which prompted the 60-year-old billionaire entrepreneur to maintain a low profile. Ma surrendered his corporate role in&nbsp;Alibaba despite maintaining his majority stake. Reportedly, &nbsp;Ma makes occasional appearances at the company&#8217;s campus in Hangzhou.
Recently, the Alibaba Cloud unit <a target="_blank" href="https://www.benzinga.com/25/01/42793170/alibaba-cloud-joins-forces-with-ex-google-execs-unicorn-to-boost-ai-models" rel="noreferrer noopener">collaborated with unicorn 01.AI</a>, founded by former&nbsp;Google&nbsp;China head&nbsp;Lee Kai-fu, to develop AI models.
Alibaba&#8217;s cloud unit aims to set up a sizeable industrial model laboratory to serve its business clients.
Currently, Chinese companies focused on AI, including Alibaba, have waged price wars in the domestic market to gain market share. Recently, Alibaba Cloud&nbsp;agreed to offer&nbsp;up to 85% discounts for its AI models, marking its third discount for the year. Alibaba Cloud Intelligence Group&#8217;s second-quarter revenue grew 7% to $4.22 billion, backed by demand for its public cloud and AI products.
Additionally, Nvidia Corp and other chipmakers <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">face potential US sanctions</a> limiting AI chip exports to China. New curbs could prohibit Nvidia&#8217;s AI chip shipments to nations like China.
Alibaba stock gained over 13% in the last 12 months, as reports indicate <a target="_blank" href="https://www.benzinga.com/government/regulations/24/11/41843262/chinas-stimulus-plan-not-enough-to-ignite-stocks" rel="noreferrer noopener">possible stimulus measures from</a> China to boost its economy and set a rally in the stock market. Alibaba is considered the tech barometer of China.
Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>).
Price Action: BABA stock is down 3.35% at $80.89 at the last check on Friday.
Also Read:
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<li><a href="https://www.benzinga.com/25/01/42859391/uber-and-lyft-adapt-robotaxi-strategy-to-compete-in-tesla-and-waymos-market" target="_blank" rel="noreferrer noopener">Uber and Lyft Adapt Robotaxi Strategy to Compete in Tesla and Waymo&#8217;s Space</a></li>
</ul>
Image via Shutterstock.

Tech

AVEM

BABA

GOOGL

NVDA

Jack Ma Highlights AI's Future Impact Amid Biden Government's Sanction Speculations on China

<a href="https://www.benzinga.com/topic/alibaba" target="_blank" rel="noreferrer noopener">Chinese e-commerce juggernaut</a> Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) cloud unit is partnering with Beijing-based startup 01.AI to develop artificial intelligence (AI) models.
Alibaba Cloud aims to set up an industrial large model laboratory to create large model solutions for business clients, according <a href="https://www.scmp.com/tech/big-tech/article/3293297/alibaba-ties-lee-kai-fus-unicorn-chinas-ai-sector-consolidates?module=perpetual_scroll_0&amp;pgtype=article" target="_blank" rel="noreferrer noopener">to</a> South China Morning Post.
01.AI, founded in May 2023 by former Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google China head Lee Kai-fu, reached a valuation of $1 billion in just six months.
Also Read: <a href="https://www.benzinga.com/media/24/12/42709007/sam-altmans-openai-plans-major-revamp-corporate-structure" target="_blank" rel="noreferrer noopener">Sam Altman&#8217;s OpenAI Plans Major Revamp Of Corporate Structure</a>
Alibaba Cloud&#8217;s partnership coincided with price wars in the domestic market, which prompted companies to offer further discounts or collaborate with former rivals.
Also this week, Alibaba Cloud <a target="_blank" href="https://www.benzinga.com/media/25/01/42761737/alibaba-leverages-scale-and-deep-pockets-to-slash-ai-llm-prices-to-gain-market-share" rel="noreferrer noopener">agreed to offer</a> up to 85% discounts for its visual reasoning AI model, marking its third discount for the year.
In December, TikTok parent ByteDance agreed to offer a discount on its visual model that was 85% below the industry average.
Meanwhile, Alibaba split up its AI team, with one focusing on developing applications for the AI chatbot Tongyi Qianwen and the other in charge of the underlying LLM. Wedbush&#8217;s&nbsp;Dan Ives&nbsp;expects the U.S. Big Techs to incur $1 trillion&nbsp;on AI capital expenditure.
Alibaba Group Holding stock surged over 11% in the last 12 months. The company reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42006281/alibaba-q2-earnings-revenue-beats-forecast-cloud-and-international-sales-shine-free-cash-flow-falls-amid-strategic-investments" rel="noreferrer noopener">second-quarter 2024</a> revenue growth of 5% to $33.70 billion, beating the consensus estimate of $33.47 billion. Adjusted earnings per ADS of $2.15 missed the&nbsp;analyst estimate of $2.26.&nbsp;Cloud Intelligence Group revenue grew by 7% to $4.22 billion, driven by the double-digit revenue growth of public cloud products, including AI-related products.
Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>).
Price Action: Alibaba stock is up 0.11% at $85.05 at the last check Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/42767647/chinese-stocks-drop-as-manufacturing-growth-slows-and-geopolitical-tensions-hit" target="_blank" rel="noreferrer noopener">Chinese Stocks Drop As Manufacturing Growth Slows And Geopolitical Tensions Hit</a></li>
</ul>
Image: Shutterstock

GOOG

ONLN

Alibaba Cloud Joins Forces With Ex-Google Exec's Unicorn To Boost AI Models

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) slashed its <a target="_blank" href="https://in.benzinga.com/topic/llm" rel="noreferrer noopener">large language model</a> prices by up to 85%, exhibiting intense domestic rivalry in the AI space.
Chinese companies remain engaged in a price war to win market share, prompting Alibaba Cloud to initiate discounts on its visual language model, Qwen-VL, CNBC <a target="_blank" href="https://www.cnbc.com/2024/12/31/alibaba-baba-cloud-unit-slashes-prices-on-ai-models-by-up-to-85percent.html" rel="noreferrer noopener">cites</a> from Alibaba&#8217;s WeChat post on Tuesday.
In February, the Chinese e-commerce juggernaut&nbsp;announced up to 55% discounts on its core cloud products.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42729529/social-media-stocks-react-as-trump-targets-censorship-and-delays-tiktok-ban" rel="noreferrer noopener">Trump Administration to Challenge Social Media Censorship, Setting Stage for Conflict with EU Regulations</a>
Jack Ma&#8217;s co-founded company slashed its Qwen AI model&nbsp;prices by up to 97% in May. Qwen-VL can interpret both texts and images.
Chinese tech firms, including Alibaba,&nbsp;Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>),&nbsp;Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>),&nbsp;and JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), launched their large language models.
In the third quarter, <a target="_blank" href="https://www.benzinga.com/news/24/11/41785553/alibabas-ai-strategy-massive-ad-spend-to-dominate-crowded-market" rel="noreferrer noopener">Chinese companies spent</a> 500 million yuan ($70.2 million) on promotional campaigns for AI applications. Alibaba committed 200 million yuan to promote the Quark cloud storage and search platform.
Alibaba remains focused on LLM efforts in the enterprise segment rather than launching a consumer AI chatbot like OpenAI&#8217;s ChatGPT. Alibaba Cloud Intelligence Group revenue grew by 7% to $4.22 billion <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42006281/alibaba-q2-earnings-revenue-beats-forecast-cloud-and-international-sales-shine-free-cash-flow-falls-amid-strategic-investments" rel="noreferrer noopener">in the second quarter</a>.
Alibaba, Tencent, and&nbsp;Baidu disbursed $7 billion on AI infrastructure and processors in the first half of 2024.
Meanwhile, Wedbush&#8217;s Dan Ives&nbsp;expects the U.S. Big Techs, including Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), to spend $1 trillion&nbsp;on AI capital expenditure.
Alibaba Group Holding stock surged over 13% in the last 12 months. Investors can gain exposure to the stock through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROBT#NASDAQ">ROBT</a>).
Price Action: BABA stock traded lower by 1.04% at $83.91 premarket at the last check on Thursday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/24/12/42725756/xiaomi-evs-to-access-charging-networks-of-nio-xpeng-and-li-auto" target="_blank" rel="noreferrer noopener">Xiaomi Expands EV Charging Options, Partners with NIO, XPeng, and Li Auto for Greater Network Access</a></li>
</ul>
Photo by Ascannio via Shutterstock

AMZN

BIDU

MSFT

ROBT

TCEHY

Alibaba Leverages Scale and Deep Pockets to Slash AI LLM Prices To Gain Market Share

On Thursday, Alibaba Group Holding.&nbsp;(NYSE:&nbsp;BABA), also known as <a target="_blank" href="https://www.benzinga.com/topic/chinese-tech-stocks" rel="noreferrer noopener">China&#8217;s tech barometer</a>, traded upwards as China kicked off its annual economic work conference&nbsp;on Wednesday to outline its policies and growth targets for 2025.&nbsp;
The two-day Central Economic Work Conference was expected to run through Thursday. Investors are watching for additional stimulus measures.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42394872/jack-ma-makes-rare-appearance-at-alibaba-fintech-event-stresses-on-ai-revolution" rel="noreferrer noopener">Jack Ma Makes Rare Appearance At Alibaba Fintech Event Stresses On AI Revolution</a>
The market expects more stimulus measures to counter possible tariffs launched by President-elect Donald Trump, as he promised during his campaigns.
Other U.S.-listed Chinese stocks, including JD.com, Inc.&nbsp;(NASDAQ:&nbsp;JD),&nbsp;Baidu, Inc.&nbsp;(NASDAQ:&nbsp;BIDU),&nbsp;NIO Inc. (NYSE:&nbsp;NIO),&nbsp;Li Auto Inc.&nbsp;(NASDAQ:&nbsp;LI),&nbsp;and XPeng Inc.&nbsp;(NYSE:&nbsp;XPEV)&nbsp;also saw positive movement in their share price trajectory in the premarket session.
However, according to a <a target="_blank" href="https://abcnews.go.com/Business/wireStory/china-ends-planning-meeting-vows-stabilize-economy-details-116716806" rel="noreferrer noopener">report</a>, Chinese leaders on Thursday assured of taking a proactive approach to boosting the economy but provided no details.
Post-meeting, lack of details on definitive measures led to a negative reaction from investors, leading to a fall in U.S.-listed Chinese stocks, which gave up all the premarket gains.
On Monday, President Xi Jinping&#8217;s Politburo pledged <a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42391254/us-listed-chinese-stocks-jump-on-chinas-stimulus-measures-looser-monetary-policy-assurances" rel="noreferrer noopener">aggressive fiscal measures</a> and a relatively more flexible monetary policy in 2025 to boost domestic consumption.
Tao Wang of UBS Group AG <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-10/china-begins-annual-economic-meeting-to-hash-out-stimulus-plan?sref=TBDibEcD" rel="noreferrer noopener">told</a> Bloomberg that he expects China to boost policy support in the next two years, including more supportive policy tones for 2025.
China&#8217;s stimulus so far has focused on producers and infrastructure, especially electric vehicles, solar energy, and batteries.
Economists expect China to set a higher-than-usual budget&nbsp;deficit target&nbsp;of up to 4% of GDP.
According to Bloomberg, Xi expressed confidence in the world&#8217;s second-largest economy in several meetings over the past week.&nbsp;
Larry Hu of Macquarie told Reuters that China&#8217;s initiatives for 2025 will depend on its GDP target and the new U.S. tariffs. He does not expect China to announce 2025 growth, budget deficit, or other targets.
Investors can gain exposure to Chinese equities through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>), ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>).
Price Actions: At the last check on Thursday, BABA stock is up 0.09% to $89.06. JD is down 1.60%, BIDU is down 0.85%, NIO is down 0.64%, LI is down 0.36%, and XPEV is down 0.39%.
Also Read:
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<li><a href="https://www.benzinga.com/analyst-ratings/downgrades/24/12/42446064/duolingo-trades-at-peak-valuation-analyst-downgrades-it" target="_blank" rel="noreferrer noopener">Duolingo Trades At Peak Valuation, Analyst Downgrades It</a></li>
</ul>
Photo by Tatiana Popova and rawf8 via Shuttterstock

Government

Regulations

Emerging Markets

Trading Ideas

CHIQ

CXSE

XPEV

US-Listed Chinese Stocks Give Up Gains In Anticipation Of More Stimulus

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares are trading higher on <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">Friday in the premarket session.</a>
The Shanghai, China-based company announced a strategic partnership with Mastercard Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>).
Signed in Shanghai, this collaboration aims to enhance vehicle-related payment services for NIO users outside of China, CnEV Post <a target="_blank" href="https://cnevpost.com/2024/12/05/nio-partnership-mastercard/" rel="noreferrer noopener">reports</a>.
The two companies will work on global initiatives in user value-added services, payment innovation, data services, consulting, joint marketing, and ESG efforts.
Mastercard cardholders will enjoy exclusive benefits, including charging, battery swaps, maintenance, and car rental services as part of the partnership.
Also Read: <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/12/42363278/us-economy-adds-227000-jobs-in-november-wage-growth-accelerates" rel="noreferrer noopener">US Economy Adds 227,000 Jobs In November, Wage Growth Accelerates</a>
Additionally, NIO and Mastercard plan to integrate in-vehicle payment functions, allowing users to make seamless payments for charging, parking, shopping, and other expenses, enhancing the overall travel experience.
NIO's co-founder Qin Lihong and Mastercard's Greater China president Chang Qing attended the signing ceremony, marking a significant milestone in NIO's global expansion.
This partnership is set to improve customer experience and expand the reach of both brands internationally, the report adds.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 40% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>).
In its push for global growth, NIO has also scored a significant legal victory in its dispute with Audi over trademark rights in Australia, CNeV Post&nbsp;<a target="_blank" href="https://cnevpost.com/2024/12/05/nio-scores-win-australia-audi-es-trademark-dispute/" rel="noreferrer noopener">reports</a>.
The Australian intellectual property authorities ruled in favor of NIO, allowing the company to move forward with its application to register the ES6, ES7, and ES8 trademarks.
This ruling marks a major milestone in NIO's efforts to secure its intellectual property globally, with the battle with Audi now spreading to more territories, according to the report.
Price Action: NIO shares are trading higher by 1.74% to $4.690 at last check Friday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/12/42352997/santa-rally-here-are-10-sp-500-stocks-that-historically-outperformed-in-decembers-second-half" target="_blank" rel="noreferrer noopener">Santa Rally: 10 S&amp;P 500 Stocks That Outperform In December's Second Half</a></li>
</ul>
Image: Shutterstock

What's Going On With NIO Stock Friday? Mastercard In-Vehicle Payment Offering In The Works

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) co-founder Jack Ma appeared at the company&#8217;s campus in Hangzhou, the capital of eastern Zhejiang province,
Ma and Alibaba co-founder Joe Tsai are currently the company&#8217;s two largest shareholders.
Ma resigned as Alibaba&#8217;s chairman in 2019 and has been hardly seen in public view since 2020 when Chinese regulators scrapped his ambitious initial public offering of fintech giant Ant Group at the last minute.
Also Read: <a href="https://www.benzinga.com/24/11/42032495/alibaba-eyes-5-billion-bond-sale-to-fund-debt-payoff-and-stock-buybacks" target="_blank" rel="noreferrer noopener">Alibaba Eyes Raising $5 Billion Via Bond Sale to Fund Debt Payoff and Stock Buybacks</a>
Ma&#8217;s visit was meant to boost morale, SCMP reports, <a href="https://www.scmp.com/tech/big-tech/article/3288737/jack-ma-returns-alibaba-campus-china-moves-boost-business-confidence">citing</a> Alibaba employees. This marked his first reported trip back to his hometown since March 2023. He visited a school that he founded.
China is trying to boost its economy with <a href="https://www.benzinga.com/government/regulations/24/11/42213279/whats-going-on-with-us-listed-chinese-stocks-alibaba-jd-nio-li-xpeng-on-wednesday-2" target="_blank" rel="noreferrer noopener">fiscal stimulus to</a> recover from the repercussions of its property market meltdown. 
The nation also anticipates geopolitical tensions after U.S. President-elect Donald Trump threatened to levy additional tariffs on Chinese imports. Ma encouraged Alibaba to embrace competition <a href="https://www.benzinga.com/news/24/09/40813395/jack-ma-urges-alibaba-to-embrace-competition-highlights-growth-opportunities">as a growth driver</a>.
Alibaba Group Holding stock gained 16% year-to-date. Last week, Alibaba <a target="_blank" href="https://www.benzinga.com/24/11/42120110/alibaba-reshapes-e-commerce-operations-names-jiang-fan-as-unit-ceo" rel="noreferrer noopener">shared plans to</a> merge its domestic and international e-commerce operations into a single unit led by Jiang Fan, Alibaba E-commerce Business Group.
Alibaba&nbsp;reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42006281/alibaba-q2-earnings-revenue-beats-forecast-cloud-and-international-sales-shine-free-cash-flow-falls-amid-strategic-investments" rel="noreferrer noopener">fiscal second-quarter 2024</a> revenue growth of 5% to $33.70 billion, beating the analyst consensus of $33.47 billion. Adjusted earnings per ADS of $2.15 missed the&nbsp;analyst estimate of $2.26.&nbsp;
Taobao and Tmall Group revenue rose by 1% to $14.11 billion, and Alibaba International Digital Commerce Group revenue climbed by 29% to $4.51 billion. Cloud Intelligence Group revenue grew by 7% to $4.22 billion.
Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>).
Price Action:&nbsp;BABA stock is up 0.06% at $86.61 premarket at&nbsp;the last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/24/11/42209622/apple-faces-modest-growth-as-idc-forecasts-smartphone-market-rebound" target="_blank" rel="noreferrer noopener">Apple Faces Modest Growth As IDC Forecasts Smartphone Market Rebound</a></li>
</ul>
Image: Shutterstock

Management

Alibaba Co-Founder Jack Ma Makes Rare Appearance At Company Campus

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares are trading higher in the<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener"> premarket session on Wednesday.</a>
The EV manufacturer reportedly prepares to open its first Nio House in the United Arab Emirates (UAE) on November 28, <a target="_blank" href="https://cnevpost.com/2024/11/27/nio-to-open-1st-nio-house-uae-nov-28/" rel="noreferrer noopener">reported</a> CnEV Post. This marks NIO&#8217;s entry into the Middle East and North Africa (MENA) market.
CEO William Li shared the news in a Weibo video, revealing he is on his way to Abu Dhabi for the opening event. The Abu Dhabi Nio House, already conducting sales and deliveries, is NIO&#8217;s flagship showroom concept, featuring a two-story layout with a vehicle display area and an exclusive space for Nio owners.
NIO&#8217;s vehicles are currently available in five European markets: Norway, Germany, the Netherlands, Sweden, and Denmark, the report read.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 40% in the past year. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/etfs/currency-etfs/24/11/42190765/trumps-tariff-threats-slam-mexican-peso-canadian-dollar-only-the-beginning-of-a-sorely-needed-repricing-expert-warns" rel="noreferrer noopener">Mexican Peso, Canadian Dollar Slide As Ackman Says Trump Will Use Tariffs ‘As A Weapon'</a>
This week, Goldman Sachs analyst Tina Hou downgraded NIO from&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings" rel="noreferrer noopener">Neutral to Sell</a> and lowered the price target from&nbsp;$4.80&nbsp;to&nbsp;$3.90, citing competitive pressures&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings" rel="noreferrer noopener">and a difficult path to profitability ahead</a>.
The analyst notes NIO is unfavorably positioned heading into 2025 given the slow production ramp of&nbsp;Onvo and the company's&nbsp;<a target="_blank" href="https://www.benzinga.com/tech/24/11/41703522/ev-maker-nio-marks-battery-swap-network-milestone-rumors-swirl-around-2nd-onvo-electric-suv" rel="noreferrer noopener">limited new model pipeline.</a>
Recently, NIO guided deliveries of 72,000–75,000 units for the fourth quarter, or a 43.9% –&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42084907/nio-q3-earnings-11-6-gain-in-vehicle-deliveries-margins-improve-issues-robust-q4-delivery-outlook" rel="noreferrer noopener">49.9% year-over-year increase.&nbsp;</a>
The company expects&nbsp;fourth-quarter revenue&nbsp;of $2.804 billion – $2.904 billion, representing 15.0% – 19.2% year-over-year growth.
Price Action: NIO shares are trading higher by 2.55% to $4.410 premarket at last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42170135/its-the-most-wonderful-time-of-the-year-for-the-stock-market-history-says" target="_blank" rel="noreferrer noopener">‘It's The Most Wonderful Time Of The Year' For The Stock Market, History Says</a></li>
</ul>
Photo via Shutterstock.

What's Going On With Tesla's Chinese Rival NIO Stock Today?

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares are trading lower in the <a target="_blank" href="https://www.benzinga.com/24/11/42165679/nio-analyst-sees-tougher-path-to-profitability-downgrades-ev-maker-to-sell-what-you-need-to-know" rel="noreferrer noopener">premarket session on Tuesday.</a>
The Chinese EV manufacturer recently marked its 10th anniversary, with the company&#8217;s founder, chairman, and CEO, William Li, addressing employees through an internal letter.
In the message, Li emphasized the critical importance of the next two years for the company&#8217;s future, <a target="_blank" href="https://cnevpost.com/2024/11/25/nio-10th-anniversary-william-li-internal-letter/" rel="noreferrer noopener">reported</a> CnEV Post. Li outlined key objectives, including the launch of competitive new products and enhancing operational efficiency.
These efforts are aimed at doubling NIO&#8217;s sales in the coming year and achieving profitability by 2026, which he described as non-negotiable goals. Li urged the team to focus their full energy on meeting these targets.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42189572/j-m-smucker-q2-earnings-beat-17-sales-surge-fy25-eps-outlook-boost-more" rel="noreferrer noopener">J.M. Smucker Q2: Earnings Beat, 17% Sales Surge, FY25 EPS Outlook Boost &amp; More</a>
This week, Goldman Sachs analyst Tina Hou downgraded NIO from&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings" rel="noreferrer noopener">Neutral to Sell</a> and lowered the price target from&nbsp;$4.80&nbsp;to&nbsp;$3.90, citing competitive pressures <a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings" rel="noreferrer noopener">and a difficult path to profitability ahead</a>.
The analyst notes NIO is unfavorably positioned heading into 2025 given the slow production ramp of&nbsp;Onvo and the company&#8217;s <a target="_blank" href="https://www.benzinga.com/tech/24/11/41703522/ev-maker-nio-marks-battery-swap-network-milestone-rumors-swirl-around-2nd-onvo-electric-suv" rel="noreferrer noopener">limited new model pipeline.</a>
Recently, NIO guided deliveries of 72,000–75,000 units for the fourth quarter, or a 43.9% – <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42084907/nio-q3-earnings-11-6-gain-in-vehicle-deliveries-margins-improve-issues-robust-q4-delivery-outlook" rel="noreferrer noopener">49.9% year-over-year increase.&nbsp;</a>
The company expects&nbsp;fourth-quarter revenue&nbsp;of $2.804 billion &#8211; $2.904 billion, representing 15.0% – 19.2% year-over-year growth.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 35% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>).
Price Action: NIO shares are trading lower by 1.29% to $4.61 premarket at last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/24/11/42180029/ark-invest-shakes-up-portfolio-with-big-tesla-and-amazon-trades" target="_blank" rel="noreferrer noopener">Cathie Wood-Led Ark Invest&#8217;s Latest Portfolio Maneuver: Dumps Tesla And Palantir Shares, Buys Amazon And AMD Stock</a></li>
</ul>
Photo by Sundry Photography on Shutterstock.

What's Going On With NIO Stock Today?

Texas Governor&nbsp;Greg Abbott (R-Texas) has directed state agencies to cease investments in China and divest existing ones. This decision, announced in a letter dated Nov. 21, highlights security and financial risks associated with Chinese investments, 
What Happened: Abbott&#8217;s directive argues that this aggression could elevate the financial risks tied to Chinese investments. The governor&#8217;s letter explicitly bans Texas investing entities from making new investments in China.
Moreover, Abbott has instructed these entities to divest from any current Chinese investments at the earliest feasible opportunity. 
&#8220;Texas will defend and safeguard itself and our public treasury from any potential threat, including those posed by the CCP,&#8221; the statement read.
See Also:&nbsp;<a href="https://www.benzinga.com/24/11/42103633/chinese-court-affirms-cryptocurrency-ownership-as-legal-as-bitcoin-breaks-97k?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Chinese Judge Cites &#8216;High-Pressure Crackdown&#8217; On Speculation In Judgment Declaring Crypto Ownership Legal As Bitcoin Moves Past $97K</a>
Why It Matters: The directive from Governor Abbott comes amid escalating U.S.-China tensions. Recently, the U.S. House of Representatives advanced two Republican bills aiming to reinstate the U.S. Justice Department's "China Initiative." This initiative seeks to <a href="https://www.benzinga.com/news/24/09/40831428/house-gop-advances-bills-to-reinstate-justice-departments-china-initiative-despite-white-house-disap">curb espionage activities</a> targeting U.S. intellectual property and academic institutions. The bills were part of the House Republican's &#8220;China Week,&#8221; which saw over two dozen China-related legislative measures passed.
President-elect Donald Trump has proposed to impose 60% tariff on Chinese goods. Chinese President Xi Jinping recently <a href="https://www.benzinga.com/24/11/42025284/xi-jinping-tells-joe-biden-china-is-ready-to-work-with-trump-as-tariff-threat-looms">expressed a willingness</a> to collaborate with the U.S. government, regardless of the administration in power. This statement was made during a meeting with President Joe Biden at the Asia-Pacific Economic Cooperation forum in Lima. 
Meanwhile, ETFs that allow investment into China have dropped during the past one month. As of Nov. 22nd, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>, the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) has dropped by 5.97% while iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) fell by 5.13%. Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) fell by 5.41% and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) dropped by 5.54%.
Read Next:&nbsp;
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<li><a href="https://www.benzinga.com/tech/24/11/42111283/elon-musks-starlink-faces-new-competition-as-chinese-satellite-firm-spacesail-enters-brazilian-market?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk&#8217;s Starlink Faces New Competition As Chinese Satellite Firm Spacesail Enters Brazilian Market</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Wikimedia Commons

Global

KWEB

MCHI

Texas Governor Mandates State Agencies To Divest From China: 'Will Defend And Safeguard Itself...From Any Potential Threat'

Major Chinese fund companies have&nbsp;announced a reduction in fees&nbsp;for a selection&nbsp;of equity exchange-traded funds (ETFs). This move intensifies the price war in the booming $400 billion ETF market.
What Happened: The fee cuts come a day after&nbsp;Wu Qing, China&#8217;s chief securities regulator, expressed support for index investment and fee reform in the fund industry. ETFs, which&nbsp;typically track an index and&nbsp;trade on exchanges, have seen significant growth this year as investors turn away from underperforming active fund managers, Reuters&nbsp;reported on Wednesday.
China Asset Management Co&nbsp;(ChinaAMC), leading the ETF market, announced it would reduce fees on&nbsp;eight ETF products, including the&nbsp;160 billion yuan China SSE 50 ETF. The management fee will drop to 0.15% from 0.5%, and the custodian fee to 0.05% from 0.1%.
See Also:&nbsp;<a href="https://www.benzinga.com/24/11/41862692/steve-madden-announces-plans-to-move-production-to-avoid-trump-tariffs-but-theres-a-catch?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Steve Madden Announces Plans To Move Production To Avoid Trump Tariffs, But There&#8217;s A Catch</a>
Other fund companies such as&nbsp;E Fund Management,&nbsp;Huatai-PineBridge Fund Management,&nbsp;Harvest Fund Management, and&nbsp;HuaAn Fund Management&nbsp;have made similar announcements. This trend is expected to attract more capital into the market, with net inflows into China&#8217;s onshore ETFs surpassing 900 billion yuan this year, according to BNP Paribas. 
Why It Matters: The fee reduction by major Chinese fund companies comes amid a backdrop of economic measures and market fluctuations. In October, investor sentiment was dampened when anticipated large-scale economic stimulus measures from Chinese authorities did not materialize. Despite <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41316058/chinese-stocks-etfs-struggle-as-multi-trillion-yuan-stimulus-hopes-fall-short-yet-m">signals of increased fiscal support,</a> the absence of a substantial economic package left traders underwhelmed.
Furthermore, China&#8217;s decision to cut interest rates in late October led to a decline in <a href="https://www.benzinga.com/news/24/10/41426987/us-listed-chinese-etfs-drop-after-beijing-cuts-interest-rates">several China-focused ETFs</a> in the U.S. This move, aimed at stimulating economic growth, instead raised concerns among investors about its broader implications.
Meanwhile, U.S.-listed Chinese ETFs have been providing American investors exposure to Chinese equities, bonds, or a combination of both, while being traded on U.S. stock exchanges. These ETFs are a convenient way for investors to gain diversified exposure to China&#8217;s economic growth without the complexities of directly investing in foreign markets. According to <a href="http://pro.benzinga.com">Benzinga Pro</a>, KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>), Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>), and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) are some of the popular names on the list.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/24/11/42046456/xpeng-vs-nio-can-tech-trend-turn-the-tables-ahead-of-q3-earnings?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">XPeng Vs. NIO: Can Tech, Trend Turn The Tables Ahead Of Q3 Earnings?</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

ETFs

Chinese Fund Giants Slash ETF Fees Amid Intense Market Competition

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares are <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">trading lower on Tuesday.</a>
In fact, shares of U.S.-listed Chinese stocks are trading lower in possible reaction to President-elect Trump&#8217;s administration picks, which could raise concerns about a tougher China stance.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 36% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and&nbsp;KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KARS#NYSE">KARS</a>).
Customers in China can now expect delivery of the NIO Onvo L60 within 10-14 weeks, a slight decrease from the previous 12-16 week wait time, <a target="_blank" href="https://cnevpost.com/2024/11/12/nio-onvo-l60-wait-time-reduced/" rel="noreferrer noopener">reported</a> CnEV Post.
This reduction suggests that production capacity may have increased. The change was confirmed through the Onvo App. The shorter wait times indicate that NIO is scaling up production to meet growing demand, the report read.
NIO announced that it delivered 20,976 vehicles in October, including 16,657 NIO brand vehicles and<a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/g41678043/nio-inc-provides-october-2024-delivery-update" rel="noreferrer noopener"> 4,319 Onvo brand vehicles.</a>
Deliveries of the first Onvo vehicle, the L60, began in late September, making October the first full month of sales for the affordable,<a target="_blank" href="https://www.benzinga.com/tech/24/11/41703522/ev-maker-nio-marks-battery-swap-network-milestone-rumors-swirl-around-2nd-onvo-electric-suv" rel="noreferrer noopener"> family-oriented Nio sub-brand.&nbsp;</a>
Also Read: <a target="_blank" href="https://www.benzinga.com/tech/24/11/41703522/ev-maker-nio-marks-battery-swap-network-milestone-rumors-swirl-around-2nd-onvo-electric-suv" rel="noreferrer noopener">EV Maker Nio Marks Battery Swap Network Milestone, Rumors Swirl Around 2nd Onvo Electric SUV</a>
Onvo has plans for a second electric SUV with deliveries scheduled for the third quarter of 2025. However,&nbsp;<a target="_blank" href="https://cnevpost.com/2024/10/25/nio-onvo-2nd-model-expected-release-q1-2025-report/" rel="noreferrer noopener">a report</a> from CnEVPost claims the second Onvo model will be a six- or seven-seat electric SUV and will debut by the end of the first quarter in 2025. The report cited local tech media outlet Leiphone.&nbsp;
&#8220;If you think the L60 is good, then this new model is a much more competitive product,&#8221; NIO CEO&nbsp;William Li said during the L60 launch.
Price Action: Nio shares traded lower by 8.89% at $4.615 at the last check Tuesday.
Photo via Shutterstock
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</ul>

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares are<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener"> trading higher on Tuesday.</a>
According to a <a target="_blank" href="https://cnevpost.com/2024/11/04/nio-adds-65-swap-stations-china-oct-2024/" rel="noreferrer noopener">report</a> from CnEV Post, the company expanded its battery swap network by adding 65 new stations in China in October.
The report, citing an update shared on the NIO App, said this brings the total number of battery swap stations to 2,621 by the end of October.
Among the 65 newly installed stations, 21 are strategically placed along highways, and all feature the company&#8217;s latest fourth-generation technology.
As of today, Nio operates 2,632 battery swap stations in China, with 873 of them situated along highways, according to data tracked by CnEVPost.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 33% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/11/41740703/whats-going-on-with-us-listed-chinese-stocks-like-alibaba-jd-nio-on-tuesday" rel="noreferrer noopener">What&#8217;s Going On With US Listed Chinese Stocks Like Alibaba, JD, Nio On Tuesday?</a>
Meanwhile, NIO is reportedly<a target="_blank" href="https://www.benzinga.com/markets/equities/24/11/41707165/nio-shares-are-up-nearly-2-in-pre-market-whats-going-on" rel="noreferrer noopener"> working on a hybrid electric car under the Firefly brand.</a>
The hybrid model will be sold in overseas markets including the Middle East, North Africa, and Europe but not within China, according to a Reuters report.
Currently, NIO manufactures only battery electric vehicles.
Nio investor Abu Dhabi investment vehicle&nbsp;CYVN Holdings suggested the hybrid model to boost sales in the Middle Eastern markets where there is not sufficient charging infrastructure for mass adoption of BEVs.
While the vehicle is slated for launch in late 2026, deliveries are expected to commence in 2027.
Price Action: NIO shares are trading higher by 2.92% to $5.29 at last check Tuesday.
Photo via Shutterstock

ETF Series Solutions Grayscale Future of Finance ETF

GFOF

NIO Expands Battery Swap Network With 65 New Stations In China: Report

Yum China Holdings, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NYSE">YUMC</a>) shares are trading higher after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n41707435/yum-china-reports-third-quarter-results" rel="noreferrer noopener">reported&nbsp;third-quarter&nbsp;results</a>.
Revenue increased&nbsp;5%&nbsp;year over year to&nbsp;$3.07 billion,&nbsp;beating the consensus of&nbsp;$3.05 billion.
Total system sales rose&nbsp;4%&nbsp;year over year, excluding currency effects, due to a&nbsp;7%&nbsp;increase in net new units.
Same-store sales were at&nbsp;97%&nbsp;of last year&#8217;s level, with same-store transactions up&nbsp;1% in the quarter.
Yum China&#8217;s delivery sales rose 18% year-over-year, continuing the double-digit annual growth trend the company has maintained for over a decade.
Digital sales hit&nbsp;$2.61&nbsp;billion&nbsp;in the quarter, with digital ordering comprising about&nbsp;90%&nbsp;of total company sales.
KFC&#8217;s system sales grew&nbsp;6%, driven by an&nbsp;8%&nbsp;contribution from new units, while Pizza Hut&#8217;s system&nbsp;sales rose&nbsp;2%, also boosted by a&nbsp;7%&nbsp;increase from new units.
Core operating profit grew&nbsp;18%&nbsp;to&nbsp;$369 million, with a margin of&nbsp;12.1%&nbsp;vs.&nbsp;10.7%&nbsp;a year ago quarter. Adjusted EPS of&nbsp;$0.77 surpassed<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener"> the street view of&nbsp;$0.68</a>.
As of September 30, 2024, the total store count was 15,861, comprising 11,283&nbsp;KFC and 3,606&nbsp;Pizza Hut locations.
The company added 438&nbsp;net new stores in the quarter, with 145&nbsp;opened by franchisees.
In the&nbsp;third quarter, Yum China returned&nbsp;$248 million&nbsp;to shareholders through share repurchases and cash dividends.
Buyback: In November 2024, Yum China&#8217;s board raised the company&#8217;s share repurchase authorization by $1 billion, totaling $4.4 billion in buyback capacity since 2017.
By November 1, Yum China repurchased about 71.8 million shares for $3.0 billion, leaving $1.4 billion in remaining authorization.
Dividend: The board declared a cash dividend of $0.16 per share, payable on December 17, 2024, to shareholders of record on November 26, 2024.
Joey&nbsp;Wat, CEO of&nbsp;Yum China, said, &#8220;By optimizing our delivery strategy, we have captured more smaller order transactions and gained market share on aggregator platforms. Our breakthrough business models, side-by-side&nbsp;KCOFFEE Cafes and Pizza Hut WOW, enabled us to broaden our addressable market and capture new customer demand, reaching 500 and 150 stores, respectively.&#8221;
&#8220;We anticipate the franchise mix of net new stores will gradually increase to 40-50% for&nbsp;KFC&nbsp;and 20-30% for&nbsp;Pizza Hut<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> over the next few years</a>.&#8221;
&#8220;With our confidence in our cash generating capabilities, we plan to step up capital returns to shareholders, increasing from&nbsp;$3 billion&nbsp;to&nbsp;$4.5 billion&nbsp;between 2024 and 2026.&#8221;
Outlook: Yum China reiterated FY24 targets to open 1,500 to 1,700 new stores, invest $700 million to $850 million in capital expenditures, and return $1.5 billion to shareholders through <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">dividends and share repurchases</a>.
Investors can gain exposure to the stock via AdvisorShares Restaurant ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EATZ#NYSE">EATZ</a>) and Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>).
Price Action: YUMC shares are up 10.1% at $49.60 premarket at the last check Monday.
Photo by aleks-dorohovich- for Unsplash
Read Next:
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<li><a href="https://www.benzinga.com/markets/asia/24/10/41365546/yum-china-stock-bounces-back-can-recent-rally-beat-short-term-headwinds" target="_blank" rel="noreferrer noopener">Yum China Stock Bounces Back: Can Recent Rally Beat Short-Term Headwinds?</a></li>
</ul>

Earnings

Guidance

Dividends

Buybacks

EATZ

FCTE

YUMC

Yum China Q3 Earnings Surprise: KFC & Pizza Hut Power Earnings Beat, Reiterates Capex Plan To Open ~1,500-1,700 Net New Stores

China&#8217;s recent decision to cut interest rates has led to a decline in several China-focused exchange-traded funds (ETFs). The move, aimed at stimulating economic growth, has instead sparked concerns among investors about its broader implications.
What Happened: Several China-focused ETFs experienced declines following the country&#8217;s interest rate reduction. According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) fell by 2.30% on Monday pre-market. The iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) saw a decrease of 1.74%, while the Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) dropped by 0.85%. iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) also dropped by 1.56%.
See Also: <a href="https://www.benzinga.com/news/24/10/41415419/kevin-oleary-calls-for-400-tariffs-on-china-but-his-shark-tank-co-star-and-friend-mark-cuban-fires-b?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Kevin O&#8217;Leary Calls for 400% Tariffs On China, But His &#8216;Shark Tank&#8217; Co-Star And Friend Mark Cuban Fires Back With Business Concerns</a>
These declines come amid China&#8217;s decision to cut interest rates, a move that typically aims to stimulate economic growth. However, the immediate impact on these ETFs suggests investor concerns about the broader implications of such monetary policy adjustments.
Why It Matters: The rate cuts come at a time when investor sentiment towards Chinese markets is already fragile. Hopes for a<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41316058/chinese-stocks-etfs-struggle-as-multi-trillion-yuan-stimulus-hopes-fall-short-yet-m"> multi-trillion-yuan stimulus</a> package were dashed when Chinese authorities failed to deliver the anticipated measures. This lack of concrete fiscal support has left traders underwhelmed, despite signals of increased fiscal support.
Further compounding the issue, U.S.-listed Chinese stock<a href="https://www.benzinga.com/news/24/10/41424736/alibaba-nio-baidu-stocks-decline-amid-chinas-rate-cuts-whats-going-on">s also experienced a downturn</a> as Beijing implemented a reduction in its primary lending rates. Major companies such as Alibaba Group Holding Ltd , Baidu, Inc. , and NIO Inc. saw significant declines. This indicates a broader market reaction to China&#8217;s monetary policy adjustments, affecting both domestic and international investors.
Read Next: 
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<li><a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41385450/this-chinese-ev-makers-stock-is-about-to-make-a-golden-cross?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">NIO: Chinese EV Maker Stock About To Make Golden Cross</a></li>
</ul>
Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.
Image via Shutterstock

Pre-Market Outlook

US-Listed Chinese ETFs Drop After Beijing Cuts Interest Rates

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares are <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading higher on Friday</a>.
In fact, shares of U.S.-listed Chinese stocks are trading higher after China&#8217;s September retail sales and industrial production<a target="_blank" href="https://www.benzinga.com/news/24/10/41399129/why-us-listed-china-etfs-are-gaining-up-to-6-in-fridays-premarket" rel="noreferrer noopener"> data beat estimates.</a>
China&#8217;s GDP grew by <a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb" target="_blank" rel="noreferrer noopener">4.6% year-over-year </a>in the third quarter, surpassing the prediction of Reuters poll. However, this growth was slightly below the 4.7% recorded in the previous quarter, reportedly marking the slowest pace since mid-last year and moving further from Beijing&#8217;s 5% annual target.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 34% in the past year. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and&nbsp;KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KARS#NYSE">KARS</a>).
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41324527/as-chinas-stimulus-hype-wanes-beijing-reportedly-weighs-850b-special-treasury-bonds-to-stimulate-eco?itm_source=parsely-api" rel="noreferrer noopener">As China&#8217;s Stimulus Hype Wanes, Beijing Reportedly Weighs $850B Special Treasury Bonds To Stimulate Economy And Tackle Local Debt</a>
In the meantime, the electric vehicle manufacturer has formed a partnership with UAE telecom group e&amp;, setting the stage for the launch of its models in the region.
&#8220;Proud to join forces with @eAndUAE in an exciting new collaboration focused on innovative connectivity and premium EV solutions. This partnership marks a pivotal moment in shaping the future of smart mobility and enhancing the driving experience for users in the UAE and MENA,&#8221; NIO UAE said in a <a target="_blank" href="https://x.com/NIOUAE/status/1847197934820966753" rel="noreferrer noopener">post</a> in X.
Last year, NIO secured two <a target="_blank" href="https://ir.nio.com/news-releases/news-release-details/nio-inc-announces-us22-billion-strategic-equity-investment-cyvn" rel="noreferrer noopener">investments </a>from Abu Dhabi&#8217;s CYVN Holdings, making the Middle Eastern investor its largest shareholder.
However, the company&#8217;s founder, chairman, and CEO, William Li, still retains the majority of voting rights, <a target="_blank" href="https://cnevpost.com/2024/10/18/nio-partners-with-uae-telecoms-group-on-connectivity/" rel="noreferrer noopener">reported </a>CnEV Post.
Earlier this month, NIO teamed up with Abu Dhabi-based CYVN Holdings, a prominent investor in smart and advanced mobility, to <a target="_blank" href="https://www.nio.com/en_AE/news/nio-cyvn-holdings" rel="noreferrer noopener">establish </a>NIO MENA.
This partnership signifies NIO&#8217;s entry into the Middle East and North Africa (MENA) region, where the company plans to introduce innovative electric vehicle solutions that support the region&#8217;s sustainable development objectives.
Price Action: NIO shares are trading higher by 6% to $5.46 premarket at last check Friday.
Photo by Sundry Photography on Shutterstock
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</ul>

Why Is NIO Stock Gaining Today?

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) is doubling its artificial intelligence (AI) investments to regain its mojo in Southeast Asia&#8217;s e-commerce space.
Over the past two years, the Chinese e-commerce juggernaut has invested about $2 billion in regional platform Lazada, a portion of which is going behind AI and logistics upgrades to fend off fierce competition in a region where profit margins are notoriously slim.
Shopee holds a dominant 45% market share in Southeast Asia, while TikTok Shop has rapidly captured 20% of the market since launching its e-commerce operations. Lazada, in contrast, held a 20% market share last year, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/alibabas-southeast-asia-unit-lazada-pushes-ai-investment-to-regain-market-share-0030526b?mod=business_lead_pos1" rel="noreferrer noopener">cites</a> Bernstein Research.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/10/41378473/alibaba-and-jd-com-ease-rivalry-share-logistics-in-response-to-economic-challenges" rel="noreferrer noopener">Alibaba And JD.com Ease Rivalry, Share Logistics In Response To Economic Challenges</a>
While Lazada appeals more to older shoppers, platforms like Shopee and TikTok Shop have gained popularity among younger, tech-savvy consumers who prefer livestreaming and social commerce.
AI-driven improvements, including personalized shopping recommendations and AI-based after-sales services, are in the works, the WSJ cites Lazada&#8217;s CEO, James Dong.
Dong emphasized that these innovations will help Lazada attract a broader user base and streamline logistics for sellers on the platform.
With AI tools embedded into Lazada&#8217;s platform, sellers can generate market-specific content, forecast demand more accurately, and improve logistical planning.
<a target="_blank" href="https://www.benzinga.com/news/24/10/41314820/alibabas-lazada-courts-armani-and-other-luxury-brands-seeks-edge-over-rivals-in-southeast-asia" rel="noreferrer noopener">Recent reports indicated</a> Lazada is courting European luxury brands to boost its moat.
Lazada targeted $100 billion in e-commerce volume by 2030. For the first time, Lazada became&nbsp;EBITDA positive in&nbsp;July 2024, backed by its artificial intelligence-enabled operations and improved online marketing.
Alibaba&#8217;s move signifies its efforts to boost growth via geographical expansion as China battles a weak economy further exacerbated by regulatory crackdowns and geopolitical tensions with the US.
Alibaba&#8217;s e-commerce business is already grappling with intense price rivalry with domestic rivals, and the US sanctions restrict its prospects of integrating AI technology from the likes of Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
Alibaba stock gained 21% in the last 30 days as China slashed key rates, and reports indicated additional stimulus to boost growth.
Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and JPMorgan US Tech Leaders ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JTEK#NASDAQ">JTEK</a>).
Price Action:&nbsp;BABA stock is down by 0.82% at $101.34 premarket at&nbsp;the last check Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/10/41336235/chinese-e-commerce-firms-alibaba-jd-pdd-gear-up-for-singles-day-shopping-festival" target="_blank" rel="noreferrer noopener">Chinese E-Commerce Firms Alibaba, JD, PDD Gear Up For Singles&#8217; Day Shopping Festival</a></li>
</ul>
Image by Quality Stock Arts via Shutterstock

JTEK

Alibaba's Lazada Leverages AI in E-Commerce Race Against Shopee and TikTok Shop

China is reportedly considering issuing 6 trillion yuan, approximately $850 billion, in ultra-long special treasury bonds over the next three years. This potential move aims to bolster the nation&#8217;s slowing economy through fiscal stimulus.
What Happened: Sources indicate that the funds from these bonds will be partially used to help local governments manage their hidden debts. This speculation follows the Ministry of Finance&#8217;s announcement to address local government debt pressures, although specific figures were not disclosed during a recent press briefing, according to a <a href="https://www.caixinglobal.com/2024-10-14/exclusive-china-may-issue-6-trillion-yuan-in-treasury-bonds-to-buttress-economy-102245341.html">report</a> by Caixin Global on Tuesday.
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41322578/teslas-chinese-rivals-move-to-calm-fears-of-an-european-invasion-that-threatens-legacy-players-n?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla&#8217;s Chinese Rivals Move To Calm Fears Of An European &#8216;Invasion&#8217; That Threatens Legacy Players: &#8216;Not Going To Overthrow Anybody Who&#8217;s Developed Over 100 Years&#8217;</a>
Xing Zhaopeng, a senior China strategist at ANZ, shared with Reuters that this development aligns with expectations. He stated, &#8220;For next year, we still think a growth target of around 5% is likely to be maintained. So, for a 5% growth rate, that should be enough.&#8221;
Why It Matters: The anticipation of China&#8217;s fiscal stimulus has been a significant factor influencing investor sentiment. Recently, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41316058/chinese-stocks-etfs-struggle-as-multi-trillion-yuan-stimulus-hopes-fall-short-yet-m">U.S.-listed Chinese stocks</a> experienced a downturn as investors were left underwhelmed by a high-level briefing from Chinese authorities that did not meet expectations for substantial economic measures. Despite hints of increased fiscal support, the absence of a large-scale package has left traders disappointed.
Stocks such as Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) have seen declines of 6% to over 8% in the past five days. Similarly, Chinese electric vehicle stocks like NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) and XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) <a href="https://www.benzinga.com/government/24/10/41312039/whats-going-on-with-us-listed-chinese-stocks-alibaba-baidu-nio-xpeng-on-monday">have also traded lower</a>, with other EV stocks, including Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), losing over 3% to 11% in the same period.
Price Action: According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, at the time of writing on Tuesday during the after-hours, Invesco Golden Dragon China (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) was showed a 2.13% decline while iShares MSCI China Multisector Tech ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCHI#NASDAQ">TCHI</a>) was up by 4.28%, Meanwhile, iShares China Large Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) was up by 0.27%, while iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) was down by 0.35%.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">China Was Tipping Into A Japan-Style &#8216;Lost Decade&#8217; Of Deflation And Stagnation Before Late-September Stim</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Asia

TCHI

As China's Stimulus Hype Wanes, Beijing Reportedly Weighs $850B Special Treasury Bonds To Stimulate Economy And Tackle Local Debt

U.S.-listed Chinese stocks faced a <a href="https://www.benzinga.com/topic/china">sluggish start to the week</a>. 
Investor sentiment faltered following a high-level briefing from Chinese authorities that lacked the concrete stimulus measures many had anticipated. 
Despite signals of increased fiscal support, the absence of a large-scale economic package left traders underwhelmed.
<h3 class="wp-block-heading">Weekend Briefing Misses Expectations</h3>
To stabilize the economy, the Chinese Ministry of Finance (MoF) hinted at a press conference on Oct. 12 that it may raise the government debt ceiling, support local governments, address issues in the property market, and bolster major banks.
However, the MoF stopped short of announcing the multi-trillion-yuan stimulus package that markets had hoped for. 
The lack of details on measures to boost consumer demand and spark a stronger economic recovery weighed heavily on investor sentiment. 
<h3 class="wp-block-heading">Key Announcements</h3>
<ul>
<li>The MoF indicated that $300 billion (RMB2.3 trillion) in local government special bond funds would be used in Q4, suggesting a more aggressive fiscal push toward the end of the year.</li>
<li>The National Development and Reform Commission (NDRC) announced plans to pre-approve RMB200 billion worth of projects for 2024 by the end of October, intending to start construction by year-end.</li>
</ul>
<h3 class="wp-block-heading">Analyst Reactions</h3>
Helen Qiao, Asian economist at Bank of America, emphasized that the market had been eagerly awaiting more specific details about the upcoming fiscal stimulus.
"Markets have been keen to know the size, timing, and composition of any potential fiscal package," she said in a note.
&#8220;While the Oct. 12 announcement appears to lack details, in our view, it does not rule out a decent-sized fiscal package to be rolled out in the coming weeks,&#8221; Qiao added.
Qiao also indicated that while more measures to boost consumption &#8216;are still on the table,&#8217; though they are not expected until 2025. 
&#8220;As we have cautioned earlier, the MoF is not in the capacity of announcing any budget revisions before receiving greenlights from the NPC.&#8221;
Hui Shan, an economist at Goldman Sachs, saw the briefing as a sign that China is refocusing its economic policy towards growth.
&#8220;Although the much-anticipated Ministry of Finance (MoF) press conference on October 12 did not spell out great details on the upcoming fiscal stimulus package, officials provided strong forward guidance on increased fiscal support,&#8221; Shan said.
She further highlighted a shift in policy focus: &#8220;The Chinese government has clearly made a turn on cyclical policy management and increased its focus on growth.&#8221;
As a result of this shift, Goldman Sachs revised its fourth-quarter growth forecast, raising it from 5.5% to 7.5% on a quarter-over-quarter basis. The firm also increased its 2024 GDP forecast from 4.7% to 4.9%, and raised its 2025 GDP forecast from 4.3% to 4.7%. 
<h2 class="wp-block-heading">Mixed Performances For Chinese Stocks</h2>
Following the announcement, U.S.-listed Chinese stocks experienced a mixed response. Several key names suffered losses as disappointment over the lack of immediate stimulus took hold.
<ul>
<li>Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) slipped 0.6%.</li>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) fell 2.8%.</li>
<li>Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) dropped 3.9%.</li>
</ul>
However, not all stocks saw declines:
<ul>
<li>JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) bucked the trend, rising 2.3%.</li>
<li>KE Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BEKE#NASDAQ">BEKE</a>), a real estate broker, surged over 5% on optimism about future property market support.</li>
</ul>
<h3 class="wp-block-heading">Chinese ETFs also reacted, largely trending downward:</h3>
<ul>
<li>iShares China Large Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) stayed flat.</li>
<li>iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) dipped 0.3%.</li>
<li>KraneShares CSI Internet China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) fell 0.9%.</li>
<li>Invesco Golden Dragon China (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) declined 0.7%.</li>
<li>First Trust China AlphaDEX Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCA#NASDAQ">FCA</a>) dropped 0.5%.</li>
<li>iShares China Multisector Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TCHI#NYSE">TCHI</a>) slid 1.2%.</li>
<li>Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>) edged down 0.2%.</li>
</ul>
Read now:
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<li><a href="https://www.benzinga.com/government/24/10/41312039/whats-going-on-with-us-listed-chinese-stocks-alibaba-baidu-nio-xpeng-on-monday">What&#8217;s Going On With US Listed Chinese Stocks Alibaba, Baidu, Nio, XPeng on Monday?</a></li>
</ul>
Image: Shutterstock

Analyst Color

Specialty ETFs

Emerging Market ETFs

Analyst Ratings

BEKE

FLCH

Citigourp Global Markets 2% Protected Notes Linked To The Djia

Chinese Stocks, ETFs Struggle As Multi-Trillion-Yuan Stimulus Hopes Fall Short, Yet More Measures 'Are Still On The Table'

Chinese equities have staged a dramatic comeback in the past few weeks on the back of policy stimulus, with the MSCI China Index, tracked by the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), surging over 35% <a href="https://www.benzinga.com/topic/china">between Sept. 24 and Oct. 7. </a>
This &#8220;fast and furious&#8221; rally, as described by Bank of America analysts Winnie Wu and Willie Chan, outpaced the performance of other major markets globally and more than doubled the year-to-date gains of the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
The rally has been driven by a series of aggressive monetary easing policies unveiled by Chinese authorities, alongside renewed government commitments to stabilize the country&#8217;s troubled property sector.
<h1 class="wp-block-heading">Year-To-Date Performance: MSCI China Doubles S&amp;P 500</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="455" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1024x455.png" alt="" class="wp-image-583894" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1024x455.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-768x342.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1536x683.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Chart:<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100724&amp;t=be2bearmibe3na1"> Benzinga Pro</a></figcaption></figure>
<h1 class="wp-block-heading">A $2 Trillion Market Surge</h1>
From Sept. 23 to 30, the MSCI China Index added nearly $2 trillion in market capitalization. Some of the largest beneficiaries were blue-chip companies like Kweichow Moutai, which jumped 39% (adding $88 billion in market cap), Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), which climbed 15% (adding $70 billion) and Alibaba Group Holding Ltd. &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), which surged 27%, increasing its market value by $58 billion.
This rapid market appreciation reflects growing optimism among investors that China's policymakers are taking serious steps to address the country's economic challenges, including deflationary pressures, a property market downturn and mounting local government debt.
<h1 class="wp-block-heading">Key Stimulus Measures Fuel The Rally</h1>
The rally was sparked by a series of unexpected policy announcements starting on Sept. 23. That day, the People's Bank of China (PBoC) surprised markets by cutting its 14-day reverse repurchase rate by 10 basis points to 1.85%, injecting approximately $10.6 billion (74.5 billion yuan) into the banking system.
The following day, the PBoC Governor Pan Gongsheng announced a more substantial measure: the central bank would cut the reserve requirement ratio by 50 basis points, injecting about $142.5 billion (one trillion yuan) into the financial system. In addition, the seven-day repo rate was reduced by 20 basis points, and the central bank pledged to lower benchmark loan prime rates and existing mortgage rates by around 50 basis points, potentially reducing household interest payments by about $21 billion (150 billion yuan).
Further easing came on Sept. 25, when the PBoC lowered its one-year medium-term lending facility (MLF) rate by 30 basis points, followed by fiscal pledges to inject capital into state-owned banks. 
Last but not least, the PBoC ordered commercial banks to reduce interest rates on existing mortgages, with rates no less than 30 basis points below the Loan Prime Rate before Oct. 31.
<h1 class="wp-block-heading">Chinese Equity ETFs Post Massive Gains</h1>
These moves have propelled Chinese equity ETFs to outperform the S&amp;P 500 and other global benchmarks by a significant margin. From Sept. 24 to Oct. 7, several China-focused ETFs posted eye-whopping gains:
<ul>
<li>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>): +52%</li>
<li>iShares MSCI China A ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNYA#NYSE">CNYA</a>): +48%</li>
<li>XTrackers Harvest CSI 300 China A-Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASHR#NYSE">ASHR</a>): +47%</li>
<li>WisdomTree China ex-State-Owned Enterprises Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CXSE#NASDAQ">CXSE</a>): +43%</li>
<li>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>): +40%</li>
<li>SPDR S&amp;P China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXC#NYSE">GXC</a>): +38%</li>
<li>Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>): +36%</li>
<li>iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>): +32%</li>
</ul>
<h1 class="wp-block-heading">Caution Ahead: Potential for Pullbacks</h1>
While the rally has been robust, analysts at Bank of America advise caution.
&#8220;More fiscal stimulus&nbsp;to stabilize the property market&nbsp;and&nbsp;restructure local government debts,&nbsp;and structural reforms&nbsp;to address&nbsp;the&nbsp;over-capacity/deflation&nbsp;issues&nbsp;are&nbsp;needed to turn&nbsp;around the economy,&#8221; they wrote.
In their report, analysts warn the current &#8220;buy everything&#8221; stage may soon end, particularly if no further positive catalysts materialize.
High-beta consumer, property and broker stocks, which have rallied sharply, could be the first to experience profit-taking. However, the analysts suggest long-term investors could view any potential pullbacks as buying opportunities, particularly in sectors like large-cap internet stocks and high-yield state-owned enterprises (SOEs), which they consider less volatile.
For the fourth quarter of 2024, Bank of America remains constructive on several sectors, including internet (media, online retail), insurance, and health care, particularly in life sciences and biotech, which delivered strong performance in the third quarter.
They are cautious about brokerage stocks after the strong rally and have downgraded utilities (gas, water) due to earnings downgrades and unattractive valuations. Additionally, they remain bearish on the property, auto, construction materials and chemicals sectors, as they believe a fundamental recovery in these areas will take more time.
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Photo: Shutterstock

Large Cap

Econ #s

ASHR

CNYA

CQQQ

'Fast And Furious Rally' Pushes Chinese Stocks To Double S&P 500 Performance Year To Date

NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) stock is trading higher on Tuesday after the company reported a year-over-year increase in<a href="https://www.benzinga.com/movers" target="_blank" rel="noreferrer noopener"> September and third-quarter delivery results.</a>
The company reported delivering 21,181 vehicles in September 2024, reflecting<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/g41111742/nio-inc-provides-september-and-third-quarter-2024-delivery-update" rel="noreferrer noopener"> a year-over-year increase of 35.4%</a>. This total included 20,349 vehicles from its premium smart electric vehicle brand, NIO, and 832 vehicles from its family-oriented brand, ONVO. As of September 30, 2024, cumulative deliveries reached 598,875.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, NIO stock has lost over 23% in 2023. Investors can gain exposure to the stock via&nbsp;Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41114350/chinese-ev-trio-nio-xpeng-li-auto-surge-higher-in-tuesdays-premarket-whats-going-on" rel="noreferrer noopener">Chinese EV Trio Nio, XPeng, Li Auto Surge Higher In Tuesday&#8217;s Premarket: What&#8217;s Going On</a>
Last month, Monolith, a provider of artificial intelligence (AI) software for cutting-edge engineering teams, had been <a target="_blank" href="https://www.monolithai.com/press-release/nio-europe-collaboration" rel="noreferrer noopener">selected </a>by NIO to collaborate on AI-driven anomaly detection in electric vehicle batteries.
The company will implement Monolith&#8217;s Anomaly Detector AI software to monitor battery performance using data collected from the field.
This information will serve as a foundation for comparing test-bench results and will be integrated into further verification efforts. With the Anomaly Detector, engineers from NIO and Monolith can identify abnormalities in cross-channel data relationships at an unprecedented speed.
&#8220;By combining our expertise in battery performance with Monolith&#8217;s advanced laboratory capabilities, we&#8217;re setting new standards in battery monitoring, ensuring unparalleled efficiency and reinforcing NIO&#8217;s dedication to innovation and quality,&#8221; said Frank Kindermann, Head of Battery System Europe at NIO.&nbsp;
Price Action: NIO shares are trading higher by 2.33% to $6.83 at last check Tuesday.
Photo by Sundry Photography on Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/09/41082193/teslas-chinese-rival-nio-snags-1-9b-investment-from-parent-strategic-investors-as-it-forays-into" target="_blank" rel="noreferrer noopener">Tesla&#8217;s Chinese Rival Nio Snags $1.9B Investment From Parent, Strategic Investors As It Forays Into Mass Market</a></li>
</ul>

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