Business
China Joins Electric Vehicle Fundraising Gold Rush
News Analysis
Chinese electric vehicle (EV) manufacturer Xpeng priced its initial public offering on Aug. 26 and subsequently saw its stock price surge more than 50 percent above its IPO price by Friday, becoming the latest EV maker to see its shares skyrocket in recent weeks.
Everything EV has gone hyperbolic in 2020. Nevermind a recession or a virus pandemic—Tesla Inc., the biggest name in the industry, has seen its shares soar more than 400% percent since Jan. 1. It is now the world’s most valuable automaker by market capitalization. Xpeng’s fortuitous timing of its IPO means it just became the latest company to ride the EV high tide.
Guangzhou-based Xiaopeng Motors (commonly known as Xpeng) sells EV models in China and competes with Tesla as well as other domestic Chinese EV makers such as NIO and Li Auto. Xpeng has also developed its own autonomous driving capabilities. Its IPO was priced at $15 per share, above the initial expected range, raising approximately $1.5 billion on the New York Stock Exchange.
EV Industry High Tide
EV stocks have been on fire this year, propelling Tesla to become the world’s most valuable automaker despite meager profits. Market capitalization changes daily, but as of Aug. 28 Tesla’s value of $412 billion is worth around twice as much as the world’s second-most valuable automaker, Japan’s Toyota.
Tesla’s success has spurred a spate of new fundraising for EV makers. The highest profile was Arizona-based EV startup Nikola Motors, which merged with a special-purpose acquisition company (SPAC) called VectorIQ in June to become a publicly traded company. And despite showing no revenues, Nikola’s stock closed at $41.35 on Aug. 28, giving the company a $15.6 billion valuation.
Nikola’s success story—financially, if not businesswise—has led several other EV makers to pursue public listings via SPACs. Other EV companies merging with SPACs include Fisker, Canoo, and Lordstown Motor, all of which announced transactions in July or August 2020.
This is the environment the Alibaba-backed Xpeng has chosen to sell its…
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
Business
Wegovy: The Popular Weight-Loss Drug Now Available in China
Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.
Wegovy Launch in China
Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.
Cost and Accessibility
In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.
Benefits and Side Effects
Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.
Source : Popular weight-loss drug Wegovy goes on sale in China
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
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