Thursday, May 19, 2022

Global Market Square

By on July 7, 2021

The U.S. and European stock markets closed with gains Wednesday following the short week’s lackluster opening.

Also, the Federal Reserve released the minutes of its market operating committee, which show that during the June meeting, most members debated vigorously whether the U.S. economy was on a solid enough recovery to do away with the $120 billion emergency debt asset purchase. Additionally, the committee offered a Summary of Economic Projections that would show the median Committee participants are signaling either no interest rate increases or one ¼ percentage point increase by the end of 2023.

As we mentioned Tuesday, the Chinese government created havoc in the markets by restricting access to overseas listings of Chinese companies.  Two hundred forty-four Chinese public companies trade their ADRs (American depositary receipts) in Wall Street, totaling $1.9 trillion in market capitalization, a situation that will force many Chinese companies to rethink listing in Wall Street. The announcement from China was so vague that it stated the reforms were “guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.”

For most Wall Street banks, it means losing very lucrative IPO fees and a critical growth segment.  In our view, listings for Chinese companies will become harder, and could be banned altogether.

We review the 7 Chinese companies trading in Wall Street ranked by market capitalization:

  1. Alibaba Group Holding Ltd ( BABA): $565 billion
  2. Pinduoduo Inc. (PDD): $137.18 billion              
  3. Inc. (JD): $113.09 billion 
  4. NIO Inc. (NIO): $75.88 billion
  5. NetEase Inc. (NTES): $72.09 billion     
  6. Baidu Inc (BIDU): $63.47 billion 
  7. DiDi Global Inc. (DIDI): $57.3 billion

Eurozone Summary for July 7:

  • Stoxx 600 closed at 459.30, up  3.32 points, or 0.73%.
  • FTSE 100 closed at 7,151.02, up 50.14 points, or 0.71%
  • Dax index closed at 15,692.71, up 181.33 points, or 1.17%.

Wall Street summary for July 7:

  • The Dow Jones Industrial Average closed at 34,681.79, up 104.42 points, or 0.30%.
  • The Standard & Poor’s 500 closed at 4,358.13, up 14.59 points, or 0.34%.
  • The Nasdaq Composite Index closed at 14,665.06, up 1.42 points, or 0.01%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,425.64, down 62.74 points, or 2.52%.
  • The U.S. Treasury 10-year note closed at 1.33%.
  • The U.S. Treasury 2-year note closed at 0.22%.

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