Category: HONG KONG STOCKS

The stock price of Chewy, an online pet food retailer, fluctuated on Thursday due to Keith Gill, the “retail leader,” posting a cartoon dog image on social media X, which is quite similar to the image of Chewy’s logo.

Chewy’s stock price surged over 34% during trading on Thursday, marking the largest intraday increase since June 2019 and a new intraday high since July last year.

Chewy’s stock price fluctuated due to Keith Gill, the “retail leader,” posting a cartoon dog image on social media X, which is quite similar to the Chewy logo image. Gill’s nickname on Reddit is DeepF Value, and her nickname on YouTube and X is Roaring Kitty.

Petco Health&Wellness Co Inc. (WOOF), which rose by over 12% at one point, and GameStop (GME), which rose by over 10% at one point, also experienced changes along with Chewy.

However, Chewy’s rally was an absolute flash in the pan. As of Thursday’s close, the stock has given up all its gains of the day and closed down slightly by 0.31%. Petco also gave up all its gains, closing up 0.3%. The increase in GME has significantly narrowed, closing up 3.7%.

It should be noted that there is a close connection between GME and Chewy, the representative works of “retail investors leading the way”.

GME’s CEO Ryan Cohen is the founder and CEO of Chewy, who facilitated PetSmart’s acquisition of Chewy in 2017 and its subsequent IPO in 2019.

Cohen joined GME’s board of directors in January 2021 along with two other Chewy executives, which to some extent drove up GME’s initial stock price. Cohen will take over as CEO of GME in 2023, leading the transformation of this physical video game retailer.

During the COVID-19 epidemic, domestic consumers adopted cats and dogs in large numbers, and pet retailers such as Chewy and Petco saw their stocks rise sharply. After adopting pets, people purchased necessary accessories for new family members such as cats and dogs, such as new beds and leashes.

However, with the end of the epidemic, people began to go out again, the number of adopted pets slowed down, and the demand for toys and cages decreased. For pet retailers, the profit margin of these products is higher than that of pet food. Over the past year or so, Chewy and Petco’s pet food sales have remained strong, but revenue in high profit categories has declined.

Steve Sosnick, Chief Strategist of Interactive Brokers LLC., believes that “regular news” would not cause such significant stock price fluctuations as Chewy and others, however, “a picture of a dog” drove the stock price up.

The cooling demand for Bitcoin exchange traded funds (ETFs) and uncertainty in monetary policy have led to increasing losses in the cryptocurrency market after hitting its second largest weekly decline since 2024.

Bitcoin fell 8.1% to $58528 during trading on Monday, marking the largest intraday decline since April 13th. Due to two consecutive weeks of capital outflows from exchange traded products holding this cryptocurrency, the price of Bitcoin has been impacted.

According to data compiled by tracking agency Coinglass, over $210 million worth of cryptocurrency call option bets have been liquidated in the past 12 hours. According to data compiled by Bloomberg, the top 100 digital assets fell by about 5% in the seven days ending last Sunday, the largest decline since April.

The Japanese cryptocurrency exchange Mt., which was hacked over a decade ago The custodian of Gox announced that it will begin repaying Bitcoin and Bitcoin Cash in July, exacerbating concerns about increased selling pressure.

Given Mt Gox’s announcement, it seems that some market participants are starting to short, “said Stefan von Haenisch, head of trading at OSL SG Pte.” The cryptocurrency market is currently struggling to capture bids.

The cracks in cryptocurrency come at a time when people are questioning whether the Federal Reserve can quickly cut interest rates from a 20-year high. In the eyes of some analysts, the decline of digital assets is a warning signal for broader risk appetite.

David Lawant, head of research at FalconX, wrote in a report, “The current dynamics of the cryptocurrency market are characterized by low volatility and weak trading volume. When prices begin to move towards the edge of the range, the order book becomes imbalanced

The decline in some corners is particularly evident: Ethereum and Solana’s decline is the longest since last year and 2022, respectively. Moreover, this happened when the fund company was preparing to launch the first batch of US ETFs directly investing in Ethereum. Meanwhile, Solana has recently been favored by various digital asset hedge funds.

Bitcoin falls towards the 200 day moving average

Bitcoin set a record of $73798 in March, but fell behind traditional investments such as stocks, bonds, and gold this quarter.

The bearish sentiment seems to be forming, “said Caroline Mauron, co-founder of Orbit Markets, a liquidity provider for digital asset derivatives.” It’s difficult for the market to digest any large sell orders

Bitcoin investment products have seen outflows of approximately $600 million for two consecutive weeks, marking the largest outflow in two weeks since the approval of ETFs to hold this largest cryptocurrency in the United States in January.

According to data from CoinShares International Ltd., digital asset products experienced an overall outflow of $584 million in the week ending June 21. Bitcoin products accounted for the majority, with an outflow of $630 million the previous week and another $600 million this week.

Potential selling pressure of nearly 9 billion US dollars

Bitcoin suddenly faces a potential liquidity shock of nearly $9 billion, with its price plummeting $5000 in the past 24 hours to as low as $58300. This matter involves the early cryptocurrency exchange Mt. Gox. Since 2011, the platform has been hacked, with over 600000 bitcoins stolen, and went bankrupt in 2014. The team responsible for managing the remaining funds of Mt. Gox announced on the 24th that they will begin repaying cryptocurrency to creditors who lost their assets more than a decade ago starting in July, through Bitcoin and Bitcoin Cash payments.

According to Arkham Intelligence, as of Monday, the exchange held approximately 141687 bitcoins worth around $8.7 billion. Investors are concerned that creditors of Mt. Gox may choose to sell the bitcoin they received, putting pressure on the cryptocurrency as its trading price is much higher now than it was a decade ago.

It is worth noting that some investors of Mt. Gox stated earlier this year that they have received cash payments for some stolen assets, but repayments for Bitcoin and Bitcoin Cash will begin next month.

The person selling Bitcoin is considering the impact of over 140000 bitcoins entering the market in less than a month. Alex Thorn, the research director of Galaxy, said, “We believe that the repayment amount of these bitcoins will be less than people imagine, and the pressure it will cause to sell bitcoins will also be smaller than market expectations.” Thorn said that his research shows that 75% of creditors will receive compensation “early” in July, which means about 95000 bitcoins will be issued. Thorne believes that 65000 of them will belong to individual creditors, but he believes that these individuals may be more “diamond hands” (investors who firmly hold onto not selling) than most people expect.

He said one of the reasons is that they have resisted “convincing positive offers from claims funds” for many years, not to mention the capital gains tax involved due to Bitcoin’s 140 fold increase since bankruptcy.

On Friday, OpenAI announced that it has completed the acquisition of database retrieval and analysis company Rockset. The company will integrate Rockset’s technology and personnel to strengthen the search infrastructure for various products.

According to public information, Rockset was founded in 2016 by former Facebook engineers Venkat Venkataraman, Tudor Bosman, and architect Dhruba Borthakur. The tool they developed aims to help customers automatically retrieve data from various local and cloud databases, and establish indexes for subsequent retrieval and analysis applications.

Rockset provides a key technology called ‘vector search’. As more and more companies use artificial intelligence to drive recommendation engines, voice assistants, chatbots, and other applications, the application scenarios of this technology are becoming increasingly broad. As a concrete example, JetBlue Airways has purchased Rockset’s technology to support flight delay prediction chatbots.

OpenAI did not disclose the specific amount of the transaction. Rockset revealed in August last year that it had raised over $100 million in funding since its establishment, including investments from the venture capital departments of Greylock, Sequoia Capital, and Huihe Technology.

According to a spokesperson for OpenAI, this acquisition is also the first time that the company has integrated the technology and employees of the acquiring company simultaneously.

In fact, before Friday’s acquisition, OpenAI had only announced one official acquisition in the past – buying digital product design company Global Illumination in August last year. However, the core purpose of that acquisition is to bring the 8-person development team of Global Illumination into OpenAI to support the development of core products including ChatGPT. Given that this team excels in visual development, it is reasonable to assume that they have already made contributions in the “Wenshengtu” and “Wenshengvideo” products.

What is the purpose of the acquisition?

OpenAI stated in the announcement that AI has the opportunity to transform the way consumers and institutions utilize their data, and Rockset is a leading real-time database analytics provider in the market, providing world-class data indexing and querying capabilities. These technologies enable users, developers, and businesses to better utilize their data, access real-time information, and improve efficiency when using AI products and building smarter applications.

Brad Lightcap, Chief Operating Officer of OpenAI, stated that Rockset’s infrastructure enables the company to transform data into “actionable intelligence,” and he is pleased to integrate these foundations into OpenAI’s products.

Venkataraman, CEO of Rockset, also issued a public statement stating that after the acquisition, Rockset will become a part of OpenAI, helping OpenAI solve the database challenges that artificial intelligence applications are facing on a large scale. Existing customers will gradually migrate, and the team is committed to ensuring a smooth transition.

This acquisition also demonstrates OpenAI’s emphasis on the B2B business since the beginning of this year. In the past two months, OpenAI has signed a resale cooperation agreement with PwC and launched customized model tuning and consulting services for enterprise users. According to reports, these measures have raised OpenAI’s latest annual revenue forecast to $3.4 billion.

At the same time, Rockset’s accumulation in vector search can also help OpenAI enhance its ability to quickly access and analyze large amounts of information. Previously, there were reports that OpenAI is developing a search engine product that may directly compete with companies such as Google and Perplexity.

Introduction to the basic information and business of Cheniere Energy, Inc. (LNG.A)

Company Overview:

Company Name: Cheniere Energy, Inc. is an energy company headquartered in the United States, primarily focused on the liquefied natural gas (LNG) industry.

Headquarters: Houston, Texas

Stock Code: LNG.A

Established: 1996

Main Business:

LNG Production: Cheniere Energy is primarily dedicated to LNG production. The company extracts and liquefies natural gas from its LNG export terminals, then transports the LNG via ships to destinations worldwide.

Export Terminals: Cheniere owns and operates LNG export terminals in the U.S. Gulf Coast region, with the most notable being the Sabine Pass LNG terminal and the Corpus Christi LNG terminal. These terminals provide a gateway to the international market for U.S. natural gas producers.

Sabine Pass LNG Terminal: Located in Sabine Pass, Louisiana, it is the first LNG export terminal in North America. It has multiple liquefaction trains to meet international market demands.

Corpus Christi LNG Terminal: Located in Corpus Christi, Texas, it provides another export channel to meet global demand for liquefied natural gas.

In which areas does the company hold a leading global position, and what are the key success factors?

LNG Production Capacity: Cheniere Energy is one of the largest LNsbsG producers in the United States, with world-class LNG production capacity. Through its export terminals in Sabine Pass and Corpus Christi, the company can supply a significant amount of LNG to meet international market demands.

Advantages of the location of export terminals: The company’s export terminals are located in the Gulf of Mexico region in the United States, providing it with a strategic position that facilitates the transportation of LNG to destinations worldwide. This geographical advantage helps reduce transportation costs and enhances competitiveness in the global market.

Market diversity: Cheniere Energy offers diversified export channels through its multiple LNG export terminals, catering to the varying demands for LNG from different countries and regions. This enables the company to adapt flexibly to changes in the international market and reduce risks associated with dependence on specific regions or customers.

Contract structure and long-term partnerships: The company has signed liquefied natural gas sales contracts with several long-term partners, which helps stabilize its revenue stream. Long-term contracts typically provide predictable cash flows, reducing the risk of price fluctuations.

Technological and operational excellence: Cheniere Energy possesses advanced technology and operational capabilities in the field of liquefied natural gas. This includes efficient LNG processing facilities and terminal management to ensure the produced LNG meets international standards and can be smoothly transported globally.

Sustainability and clean energy demand: With the increasing global demand for clean energy, liquefied natural gas has garnered attention as a relatively clean form of energy. Cheniere Energy’s LNG products can meet the international market’s demand for clean energy, making it competitive in terms of sustainability.

Analysis of the company’s main strategic transformations, core driving factors, and key events since its establishment.

Initial business positioning: Cheniere Energy was initially an oil and gas exploration and production company. However, with the increasing demand for liquefied natural gas (LNG) in the market and technological advancements, the company gradually shifted its focus from exploration and production to the LNG sector.

LNG strategy: The company made significant strategic decisions to shift its business direction towards LNG. This included investments in LNG production facilities and export terminals, with the most notable being Sabine Pass and Corpus Christi. This transformation enabled Cheniere to export LNG from the United States to meet the growing international market demand.

Long-term contracts and customer relationships: Cheniere Energy ensured stable revenue streams by signing long-term LNG sales contracts with multiple international customers. These long-term contracts provided the company with financial predictability and reduced the impact of price fluctuations.

Expansion and international markets: By continuously expanding the scale and number of its LNG export terminals, the company strengthened its competitive position in the international market. The strategic locations of Sabine Pass and Corpus Christi allowed Cheniere to flexibly serve different regions and customers.

Financial structure and capital arrangements: To support its large-scale LNG projects, Cheniere implemented a series of financial structures and capital arrangements, including debt financing and equity financing. This helped meet investment requirements and ensure the smooth progress of projects.

Market adaptability and sustainability: Through a deep understanding of the energy market, the company continuously adjusts its strategies to adapt to industry changes. Meanwhile, the clean attributes of liquefied natural gas enable Cheniere to find opportunities in the growing trends of sustainability and clean energy demand.

CEOs and their major contributions to the company during their tenures since its establishment.

Charif Souki (1996 – 2015): Charif Souki was one of the founders of Cheniere Energy, and under his leadership in the early stages of the company, he spearheaded the strategic transformation from natural gas exploration and production to liquefied natural gas (LNG) production. Under his guidance, Cheniere shifted its focus to LNG, becoming one of the largest LNG producers in the United States.

Neal Shear (2015 – 2016): Neal Shear assumed the role of interim CEO after Souki resigned as CEO, overseeing the transition of the company’s management. During this period, he maintained the stability of the company and assisted in the transition to a new CEO.

Jack Fusco (2016 – present): Jack Fusco succeeded Neal Shear as the CEO of Cheniere Energy. During his tenure, Fusco made a series of significant decisions that strengthened the company’s position in the LNG market. He drove the company’s expansion plans, including the development of new LNG projects such as the Corpus Christi LNG terminal, to meet the growing global demand for liquefied natural gas. Fusco emphasized the financial health of the company, ensuring its sustainability and stable cash flow through effective financial management and long-term contracts with international customers. He is committed to enhancing the company’s market position and positioning it as a key player in the global LNG market.

Outlook for Future Development of the Company

Continued expansion and capacity increase: Driven by the increasing global demand for LNG, Cheniere Energy may continue to seek to expand its liquefied natural gas (LNG) capacity. This may involve expanding existing terminals or investing in new LNG projects.

Focus on sustainability and clean energy: With the growing demand for clean energy, Cheniere Energy may emphasize the clean attributes of its liquefied natural gas and take more sustainability measures to adapt to the global energy transition trend.

International market expansion: The company may further expand its business in international markets, signing long-term LNG sales contracts with more international customers and strengthening its market share in different regions globally.

Technological innovation and efficiency improvement: Efforts towards technological innovation and efficiency improvement in LNG production may be a key direction for the company’s future to maintain its leading position in the industry.

Adapting to market changes: Energy markets are often influenced by various factors, including natural gas price fluctuations, geopolitical events, etc. Cheniere Energy may adopt flexible strategies to adapt to market changes and maintain financial health.

The impact of global climate policies: Changes in global climate policies may have implications for the future development of companies. With increasing attention from countries on carbon emissions, Cheniere Energy may need to adapt to new regulations and standards, possibly by offering cleaner energy solutions to meet these requirements.

On June 20th, BEST. US, a Chinese concept stock, announced the latest progress of privatization and has already signed a privatization merger agreement with the buyer group.

According to the agreement, Best Group is expected to complete its privatization process by the third quarter of 2024, delisting from the New York Stock Exchange and transforming into a wholly-owned private company. Zhou Shaoning, founder, chairman, and CEO of Best Group, will continue to serve as the controlling shareholder, while the main shareholder structure remains unchanged.

In November last year, Best Group announced that it had received proposals for privatization offers from multiple parties, including Alibaba and Cainiao. The proposal came from the founder, chairman, and CEO of Best Group, Zhou Shaoning, the company’s Chief Strategy and Investment Officer, Zhou Shaojian, as well as several shareholders of Best Group, including Alibaba and Cainiao.

Best Group was founded in 2007 and went public on the New York Stock Exchange in 2017. After experiencing a glorious period of rapid development in the domestic express delivery industry, Best Group’s operations have fallen into a predicament, and since then, Best Group has continuously made “reductions”.

In 2020, Best Group closed its distribution comprehensive service platform, Dian Jia. In 2021, Best Group transferred its domestic express delivery business to Jitu for approximately 6.8 billion yuan. Afterwards, Best Group’s main businesses include express delivery, supply chain, and international operations, positioning itself as a comprehensive intelligent supply chain solution and logistics service provider in China and Southeast Asia.

Baishi Group, which has found a new development rhythm, has not yet emerged from the shadow of losses. In 2022 and 2023, Best Group incurred losses of 1.503 billion yuan and 893 million yuan respectively. However, its performance indicators have improved. In the first quarter of 2024, Best Group’s revenue increased by 13.2% year-on-year, international business revenue increased by 42.6% year-on-year, and cross-border business volume increased by 256.4%.

The stock price performance of Best is not very ideal. For a long time, the market value of Best Group has been sluggish, and in 2022, it received a delisting warning due to its stock price falling to $0.9 per share.

As of the close on June 21st, the stock price of Best Group was $2.72, with a market value of approximately $54.66 million (approximately RMB 390 million). According to its latest financial report data, as of the end of March 2024, Best Group’s cash and cash equivalents, restricted cash, and short-term investments amounted to 2.096 billion yuan.

Musk announced on social media platform X on Wednesday that Dell (DELL. US) and Supermicro Computer (SMCI. US) will become suppliers to his artificial intelligence startup xAI, providing server racks for the supercomputers it is currently manufacturing.

To be precise, Dell is assembling half of the racks for the supercomputers being built by xAI, “he wrote in response to a post

A netizen asked, “Who will make the other half of the rack? IBM? HP? Cray? Or SGI Musk replied, ‘SMC’.

This SMC refers to AMD, a company known for its close ties with chip companies such as Nvidia and its liquid cooling technology. The company has also confirmed its partnership with xAI to the media.

Dell Technologies CEO Michael Dell posted on X, “We are collaborating with Nvidia to build a Dell AI factory to support Musk’s xAI company’s large model Grok

XAI was founded in 2023 and is an artificial intelligence company created by Elon Musk as a benchmark for OpenAI. Musk previously told investors that his xAI plans to build a supercomputer to power its next-generation artificial intelligence chatbot, Grok. He hopes to put this supercomputer into operation before the autumn of 2025.

However, training AI models like Grok requires tens of thousands of chips with huge power consumption, and the supply of such chips is currently tight. Earlier this year, Musk stated that training the Grok 2 model would require approximately 20000 NVIDIA H100 Graphics Processing Units (GPUs), while the Grok 3 model and subsequent versions would require 100000 NVIDIA H100 chips.

Last month, xAI successfully raised $6 billion in funding, with investors including Sequoia Capital, Fidelity Asset Management, Saudi Arabia’s Kingdom Holdings, and others. The company stated that this funding will help bring xAI’s first products to market, build advanced infrastructure, and accelerate the development of future technologies.

In this era of rapid change, artificial intelligence (AI) technology is developing at an unprecedented pace, bringing about numerous opportunities. The AI Daily is dedicated to uncovering and analyzing the latest AI growth stocks and market trends, providing you with in-depth industry insights and value analysis.

AI News

1.Nvidia founder and CEO Jensen Huang announced at the NVIDIA Japan Summit that he will work with SoftBank to build AI infrastructure in Japan, including Japan’s largest AI factory.

Son said that SoftBank is investing heavily in the construction of data centers in Japan, pressing the “restart button” for Japan’s technological development.

2.According to people familiar with the matter, Apple will launch artificial intelligence (AI)-based smart home devices as soon as March.

The device will have FaceTime, Siri, Apple Intelligence features. The device will be plugged into a camera, a doorbell, and run a series of Apple’s apps. The company wants to compete with Amazon and Google in the smart home space.

3.It is understood that on November 12, Ali launched Accio, a conversatio-nal AI search engine overseas, which is open to global merchants, which is the world’s first AI search engine in the B2B field.

The main body of the page of Accio is a dialog box, the product form is similar to that of the AI search engine Perplexity, and the positioning is an individual purchasing agent. When the user enters the demand, it will filter through the supplier, customization range, price, terminal retail sales, customer evaluation and other information to output the merchants and products that meet the requirements. As far as we know, Accio intends to integrate the information of more than 30 million supply chain companies involved in cross-border trade around the world, as a comparison, the number of merchants included in Ali International Station is 250,000.

4.It is reported that Xiaomi is planning to launch a new generation of AI glasses, which has been cooperating with Goertek a few months ago, and the product is expected to be released in Q2 of 2025 (most likely the rice noodle festival in April).

For the shipment of this product, Lei Jun’s expectation is “above 300,000 units”. The reporter called Goertek as an investor, and the relevant person responded that the company did not disclose specific customer information and project content. The company’s AI glasses business has not yet been mass-produced at this stage, and its main products can be applied to terminal products such as AI glasses. As of press time, Xiaomi has not replied to this.

Institutions look at AI

1.According to the CITIC Securities Research Report, the port is the window of the country’s foreign exchanges, and intelligent upgrading has become a consensus.

With the increase in inbound and outbound traffic, the development of emerging technologies such as AI, and the advancement of the Belt and Road Initiative, the efficiency of port management needs to be improved urgently. In this regard, the active investment of government departments is expected to drive the prosperity of smart ports upward. On the demand side, it is estimated that the overall demand for China’s smart ports will be about 33.6 billion yuan from 2024 to 2026.

The Big Seven Daily

[Analysts say Apple will launch a smart home camera in 2026 to enhance AirPods health features]

Apple (NASDAQ:AAPL) may be preparing to launch its first product in the smart home camera market in 2026, according to Mingchi Kuo, an analyst at Tianfeng International Securities.  

“This smart home IP camera is scheduled to go into production in 2026 and is designed to integrate seamlessly with other Apple hardware products via wireless connectivity,” Guo wrote in a blog. He added that Apple’s long-term goal is to ship 10 million or more units per year, compared to the current market of 30 million to 40 million units per year. Amazon (AMZN) and Google (GOOG) (GOOGL) have smart home cameras through the Ring and Nest brands, respectively.  

Kuo added that the camera “will be significantly enhanced by Apple’s robust ecosystem and deep integration with Apple Intelligence and Siri.”

In addition, Bloomberg reported on Tuesday that Apple is preparing to launch a smart home device as early as March.

In addition, Guo also said that Apple may further increase health-related features for AirPods wireless headphones, which should boost sales. “This strategic positioning is expected to drive AirPods shipments from about 48 million units in 2023 to 53 million to 55 million units in 2024, 58 million to 62 million units in 2025, and 65 million to 68 million units in 2026,” he wrote. ”  

Apple released a new version of the popular AirPods Pro headphones in September. The new headphones add health features, including hearing protection, new hearing testing capabilities, and professional-grade hearing aids.  

[AWS is striking a major agreement with IBM to provide Nvidia GPUs for AI]

Amazon Web Services (NASDAQ:AMZN) is working on a nearly $500 million deal to acquire Nvidia (NASDAQ:NVDA) processors via the cloud for IBM’S (NYSE:IBM) artificial intelligence training, according to Business Insider.

The five-year, $475 million deal will allow IBM to use AWS EC2 servers equipped with Nvidia GPUs, the report said, citing internal Amazon documents. The protocol will expand IBM’s use of EC2 servers to train AI models.  

The deal highlights the surge in demand for Nvidia GPUs and a potential windfall for hyperscalers like AWS, which have invested heavily in expanding their data centers.

Earlier this year, IBM announced plans to integrate its WatsonX AI and data platform with Amazon Sagemaker.

Ankur Mehrotra, General Manager of Amazon SageMaker at AWS, said, “Our collaboration with IBM will bring more generative AI solutions to our joint customers. ”  

Amazon has also developed its own AI chips, such as Trainium and Inferentia. Last month, Amazon signed an agreement with Databricks that allows the data warehouse company to use Amazon’s Trainium AI chips. It is also a five-year agreement.  

AWS continues to show tremendous growth. In the third quarter of 2024, its revenue was $27.45 billion, up 19% year-over-year.

Overnight, the U.S. stock market continued to surge, and it can only be described as a “bullish frenzy.” The Dow is about to hit a new high again.

The top U.S. stocks showed impressive gains yesterday, and now it’s Intel’s turn to shine. Of course, this is also due to news that Intel has received a $3.2 billion subsidy from Israel and plans to invest $25 billion to build a factory locally.

Intel has already invested billions of dollars in building new factories on three continents, hoping to regain its former glory and reclaim its leading position in the semiconductor industry to better compete with AMD, NVIDIA, and Samsung.

In addition to Israel, Intel also plans to invest over 30 billion euros (approximately 236.1 billion RMB) to build two new factories in Magdeburg, Germany, with the German government promising substantial subsidies.

Furthermore, Intel will invest $100 billion to build what could be the world’s largest chip manufacturing complex in Ohio. Meanwhile, Samsung and TSMC have also announced plans to build factories in the U.S.

Seeing all this, don’t you feel that the U.S. tech stocks, the main theme of the market for the past 24 years, are still unshakable?

Yesterday, the best-performing stock in the strategist’s portfolio was naturally AMD, which has now reached $143, getting closer to the $150 mark mentioned by the strategist earlier.

The last time we focused on AMD was during the Double Twelve this month, and the strategist then said there would be no portfolio adjustments, advising friends who follow the strategist to continue holding AMD shares.

Recently, there have been many meetings, and I have met some CEOs of internet brokerages, discussing a common topic: there are many Chinese investors trading U.S. stocks this year.

As for the reasons, I believe everyone should be very clear about them.

Today, the strategist will provide you with some tips on quickly buying U.S. stocks.

If you are opening an account abroad, it’s very simple:

1. Identification:
   • A passport or identification document is required to verify your identity.
   • In countries outside the United States, additional international identification documents may be needed.
     
2. Personal Information:
   • Basic personal information such as name, date of birth, and nationality.
   • Residential address and contact information.
     
3. Employment and Financial Status:
   • Employment information, including employer name and position.
   • Estimation of annual income and net assets to assess your investment suitability.
   • Relevant financial documents such as pay stubs, tax returns, etc.
     
4. Social Security Number (SSN) or Taxpayer Identification Number (TIN):
   • In the U.S., providing a Social Security Number is typically required, or if you are a foreign investor, a Taxpayer Identification Number may be needed.
     
5. Employer Information:
   • If you are an employee, you may need to provide employer information, including company name and contact details.
     
6. Investment Experience and Objectives:
   • Provide your level of investment experience and investment objectives to ensure you understand the related risks and investment tools.
     
7. Bank Information:
   • Provide your bank account information for fund transfers and transactions.
     
8. Signing Legal Documents:
   • You may need to sign legal documents such as client agreements, risk disclosure documents, etc.
     
9. Resident Identification:
   • If you are a non-U.S. resident, proof of residency may be required for tax purposes.
     
10. Other Supporting Documents:
    • Additional supporting documents may be needed, specific requirements may vary depending on the brokerage or brokerage firm.

If you are trading US stocks domestically, you can:

1. Open a Hong Kong and US stock trading account through domestic securities firms:
   • Some Chinese securities firms offer services for trading Hong Kong and US stocks. Through this channel, you can purchase stocks from both markets. You can open an account with one of these firms and conduct US stock trading through that account.
     
2. Purchase through cross-border channels:
   • Chinese investors can buy certain foreign securities, including US stocks, through cross-border channels opened by qualified domestic institutions.
     
3. Consider using online brokers:
   • Some online brokers provide more convenient account opening and trading processes, which may be more suitable for small investors. These platforms typically offer simplified account opening procedures and user-friendly trading interfaces.
     
4. Invest through QDII products:
   • Some Chinese fund companies have launched QDII (Qualified Domestic Institutional Investor) products, allowing Chinese investors to participate in overseas markets, including US stocks, through purchasing funds. You may consider investing in these funds for an indirect exposure to US stocks.
     
5. Understand the fees and services of trading platforms:
   • When selecting a trading platform, pay attention to factors such as fee structures, trade execution speed, and quality of customer service. Different platforms may have varying fees and service levels, so you can make a choice based on your own needs.

Among the online brokerage firms are:

1. Webull:
   • Webull is a commission-free brokerage that offers trading in stocks, options, cryptocurrencies, and more. Both the mobile app and web platform of Webull can be used to purchase US stocks.
     
2. Futu:
   • Futu is a brokerage based in Hong Kong that provides trading services for Hong Kong and US stocks. Their platform has users in mainland China, Hong Kong, and the United States.
     
3. Tiger Brokers:
   • Tiger Brokers is an internet brokerage based in China that offers global trading in stocks, futures, options, and more. Their platform supports the purchase of US stocks.
     
4. Huasheng Tong Securities (Overseas trading platform of Huatai Securities):
   • Huasheng Tong is an overseas trading platform launched by Huatai Securities, offering global stock and Hong Kong stock trading services. Through this platform, users can buy US stocks.
     
5. Huabao Securities (HuaBao International):
   • Huabao Securities is an internet brokerage based in Hong Kong that provides trading services for Hong Kong and US stocks, among others.
     
6. East Money International (East Money International):
   • East Money International is an internet brokerage under East Money, offering global stock and futures trading services.
     
     Brothers, on which platform did you get to know the strategist?
     
     Of course, there are also some good ETFs that you can watch directly.
     
7. SPDR S&P 500 ETF (SPY):
   • This ETF tracks the S&P 500 Index, representing the overall performance of large US companies.
     
8. Invesco QQQ Trust (QQQ):
   • This ETF tracks the Nasdaq 100 Index, focusing on large companies in the technology sector.
     
9. iShares Russell 2000 ETF (IWM):
   • This ETF tracks the Russell 2000 Index, representing the performance of US small-cap stocks.
     
10. Vanguard Total Stock Market ETF (VTI):
    • This ETF tracks the CRSP US Total Market Index, covering the entire US stock market.
      
11. Vanguard S&P 500 ETF (VOO):
    • Similar to SPY, this ETF tracks the S&P 500 Index, providing exposure to large US companies.
      
12. iShares MSCI EAFE ETF (EFA):
    • This ETF tracks the MSCI EAFE Index, which includes international stocks from developed markets outside of North America.
      
13. Vanguard FTSE Emerging Markets ETF (VWO):
    • This ETF tracks the FTSE Emerging Markets All Cap China A Inclusion Index, covering stocks from emerging markets.
      
14. Invesco Solar ETF (TAN):
    • For investors interested in environmentally friendly investments, TAN tracks stocks of solar energy companies.
      
15. iShares U.S. Real Estate ETF (IYR):
    • The ETF tracks the Dow Jones U.S. Real Estate Index, providing exposure to the U.S. real estate market.
      
16. ARK Innovation ETF (ARKK):
    • Launched by ARK Investment Management, this ETF focuses on companies in the innovation and technology sectors, including artificial intelligence, biotechnology, and more.

The strategists will continue to update the situation of the strategy portfolio.

Last time, a brother found the strategist and expressed interest in following the strategist’s live trading. In the previous poll, let’s see what the brothers think:

For brothers who are trading US stocks, feel free to share your thoughts or ask questions if you are unsure!

I wrote in July: “I should have bought Berkshire Hathaway, but when the new funds from the Federal Reserve entered the Nasdaq market again, I felt that the timing was not right. If the inflation rate drops, then all the old Buffett companies will do well, but inflation will push things in another direction

The chart at that time is shown below:

Now it looks like this:

The market was originally a highly efficient valuation mechanism, but it seems to have been broken. In short, companies of Berkshire Hathaway’s size should not operate by storing cash, and the stock market has indeed lost the ability to value companies.

All of this can be traced back to the Federal Reserve and its bailout program, which also isolated most of the cash in the banking system. The bank has enough money to lend, but it won’t. This is understandable, because in this post apocalyptic economic environment, who would you want to borrow money from? However, money is like honey, it can flow wherever there is a small opportunity and quickly become ubiquitous. This money is escaping into stocks. It was originally a highly liquid Internet tycoon, but now it is moving down to most of the liquid sectors.

It is widely recognized that the following mechanism can be used to explain this rise. Due to the significant influx of cash into the stock market, the market has experienced a remarkable recovery, which has led to a surge in people buying on dips and FOMO (fear of missing out on opportunities), fueling a surge in options trading. Call option sellers sell call options and buy physical stocks to offset the risk of price increases; The sellers of call options (i.e. buyers who buy stocks to compensate for the sale of call options) push up the stock price, attracting more buyers of call options, thereby pushing up the premium and attracting more sellers of call options… The virtuous cycle rotates as the stock price continues to rise. If this is the cycle leading to the bursting of the foam, it will soon pay a price. However, this is not the only factor that works together. Warren Buffett himself also pointed out another driving factor: inflation. He has purchased Barrick Gold (GOLD), an obvious inflation hedge measure.

If the inflation rate is reasonable, it is beneficial for stocks, which means that the stock market will be a good place to store cash. If interest rates remain at the promised low level, even if the index is affected by inflation, the Federal Reserve (Fed) will provide the world with a simple arbitrage trade to borrow cash and buy stocks. If institutions can borrow money to buy stocks to raise them by 6% or 7% due to inflation, then they will definitely do so.

So where does the problem lie?

The problem is obvious. Although the crisis beneath the waterline is gradually emerging, they still taste delicious martinis in the bar. Although the speed of the ship sinking may have slowed down, it is still sinking. Before the world economy returns to pre pandemic levels, it will build up a mountain of debt. Restoring sustainability is a long road, and it will be difficult to get there without resetting.

Whether the market is heading towards a Ponzi scheme, a “water column” of bailout funds, or inflation expectations, these three factors will make the market exceptionally dangerous, which is what market trends tell you. Therefore, I am very frustrated with not following my own Berkshire Hathaway chart, although I hope some of you have done so, but this is just another of the many warning signs of the stock market getting out of control.

We are in the final stage of the foam. It must be emphasized that the foam can continue to run. But we must also understand that when the foam bursts, it will produce another disaster, and it will be severe. Without a doubt, assistance will be provided again afterwards. Whether this is sustainable is an unresolved issue, but it is clearly not conducive to low inflation.

This is a perfect trading market, and for FOMO investors, tempting returns will still be irresistible until they suddenly collapse. At the same time, investors who buy and hold will face a huge challenge, followed by another test of their determination. Personally, I can take risks, but it may not be enough. The trading on NASDAQ is already in place, and anyone can guess how high and fast it is, but I am not chasing after it.

After all, printing money does not directly cause inflation. The stock market has nothing to do with the economy

One last thing:

The Federal Reserve created this foam, and now it has stopped pumping water. Please pay close attention to their website.

On Friday, The S&P Dow Jones announced that the S&P 500 has added three new stocks and removed three others. Tesla (TSLA. US), which was once highly anticipated by the market, was not included in the list of newly added stocks. The adjustment will take effect from the opening of the US stock market on September 21st.

The newly included list includes pharmaceutical supplier Catalent (CTLT. US), handmade goods e-commerce Etsy (Etsy. US), and automated testing equipment supplier Teruida (TER. US).

The three companies that were excluded are tax service company H&R Block (HRB. US), cosmetics group COTY. US, and department store KSS. US.

This time, Tesla was not included in the S&P 500 constituent stocks. After the company announced its second quarter results on July 23, its stock price continued to rise, with a cumulative increase of over 30%. At that time, investors believed that the company had been profitable for four consecutive quarters and met the key conditions for inclusion in the S&P 500, so they speculated on the stock based on the expectation of being included in the S&P 500.

At that time, Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, had stated before Tesla announced its results that even if a company met both market capitalization and profitability criteria, as well as other regulations, there was still no guarantee that it would be included in the index.

He said, “The purpose of the S&P 500 index is to emulate the common market in the United States. Companies included in the index must comply with a series of algorithms that represent the market, liquidity, and size

Due to not being included in the S&P 500, Tesla’s stock price plummeted 6.29% after hours to $392. The stock fell 8.6% at one point during the trading session, hitting a low of $372.05. It rebounded 5.2% in the late trading session, reaching a high of $428, and closed up 2.8% at $418.32.

The S&P hot topic has been hyped for over a month, but this good news has failed. Tesla’s next hot topic is Battery Day on September 22nd Analysts suggest buying at a bottom price of $290 per share.