Professional Short Sellers: There Are Bad Guys and Good Guys, Neither Moral Nor Immoral
Professional Short Sellers: There Are Bad Guys and Good Guys, Neither Moral Nor Immoral Professional short sellers: there are bad guys and good guys, neither moral nor immoral. Topics: Startup, Management.
Weekly Thoughts
On the evening of May 19, Beijing time, Luckin Coffee announced that it received a delisting notice from the Nasdaq exchange on May 15. Luckin plans to hold a hearing on this. In late January, Muddy Waters released a short selling report, exposing Luckin’s financial and operating data fraud starting from the third quarter of 2019, exaggerating store order volume, net selling price of goods, and other behaviors. The Beijing News had a dialogue with Carson Block, the founder of Muddy Waters. The sensation caused by shorting Luckin “surprised” him. Regarding professional short sellers, he commented, “There are bad guys and good guys, neither moral nor immoral.”
Weekly Events
- China did not set a specific target for economic growth this year, and will guide all aspects to concentrate on doing a good job in “six stability” and “six guarantees”.
- The first government work report issued by the Chinese government after the COVID-19 epidemic was significantly compressed compared with previous years. The Premier read the government work report in only one hour this morning, and consciously accelerated his speaking speed. In previous years, the time for delivering the report was generally close to two hours. Scholars interviewed by CCTV commented that this may be the shortest government work report since the reform and opening up.
- Historic moment! From 0:00 to 24:00 on May 22, 31 provinces, municipalities, autonomous regions, and the Xinjiang Production and Construction Corps reported no new confirmed cases and no new deaths.
- Last week, Trump threatened to continue to retaliate against Chinese technology companies. President Trump did what he said. On the 15th, the US Department of Industry and Security required manufacturers to obtain an export license from the US government when exporting semiconductor chips using US technology or design to Huawei, further cracking down on Huawei. On the 23rd, the US Department of Commerce added 33 companies and institutions, including Qihoo 360 and Harbin Institute of Technology, to the “Entity List”, restricting these companies from conducting commercial transactions with US companies.
Weekly Market
Period: 2020518-20200524
Affected by the continued US blow to China’s technological development, Shanghai, Hong Kong, Shenzhen, and ChiNext saw the largest weekly decline in a month. With the easing of the epidemic, the three major US stock indices all rose by more than 3%.
Hot Industry Concepts
From the perspective of Wind Level 4 industries, road transportation, internet, and leisure facilities led the gains, while communications, computers, and electronic components indices led the declines. This week, rare earths, wine, and industrial gases led the gains, while low-priced stocks, copper-clad laminates, and high-frequency PCBs led the declines.
| Market (%) | Index | This Week | 1 Week Ago | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|---|
| Shanghai Composite | 2813.77 | -1.91 | -0.93 | 3.04 | 0.76 |
| Shenzhen Component | 10604.97 | -3.28 | -0.33 | 4.77 | 1.49 |
| ChiNext Index | 2046.6 | -3.66 | -0.04 | 4.65 | 1.97 |
| Hang Seng Index | 22930.14 | -3.64 | -1.79 | -1.68 | 3.14 |
| HSCEI | 911.75 | -2.31 | -2.79 | -2.02 | 3.65 |
| Red Chip Index | 3602.84 | -3.46 | -2.39 | -1.04 | 4.28 |
| Dow Jones | 24465.16 | 3.29 | -2.65 | 2.56 | -0.22 |
| Nasdaq | 9324.59 | 3.44 | -1.17 | 6 | -0.34 |
| S&P 500 | 2955.45 | 3.20 | -2.26 | 3.5 | -0.21 |
Shanghai-Shenzhen-Hong Kong Stock Connect
| Market (CNY, Billions) | This Week | Last Week | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|
| Shanghai Connect | -1.02 | -23.14 | 18.83 | 18.63 |
| Shenzhen Connect | 41.64 | 51.71 | 30.92 | 5.53 |
| Hong Kong Connect | 30.04 | 16.89 | 7.62 | 75.83 |
Portfolio
No change
| Type | Code | Name | Current Dynamic |
|---|---|---|---|
| Stock | SZ002241 | Goertek | Flat |
| Stock | VAL | Valaris | Flat |
| Fund | F210008 | Golden Eagle Strategy Allocation Mixed | Flat |
| Fund | F005311 | Wanjia New Economy Momentum Mixed A | Flat |
| Fund | F000363 | Guotai Juxin Value C | Flat |
| Fund | F005911 | GF Dual Engine Upgrade Mixed | Flat |
| Fund | F161725 | CMSC Baijiu Graded | Flat |
| Fund | F163415 | Xingquan Commercial | Flat |
| Fund | F270022 | GF Domestic Demand Growth Mixed | Flat |
| Fund | F004856 | GF CSI All Share Construction | Flat |
| Fund | F001592 | Tianhong ChiNext ETF | Flat |
