[Chinese] 2024/7/22 - South East England Regional Market Morning Report

- Major US stock indexes closed higher on Monday, continuing Friday's rebound, as expectations for Trump's second presidency grew higher after the assassination attempt, increasing hopes for a more relaxed regulatory environment.

- It is increasingly likely that the Federal Reserve will cut key interest rates as early as September, which will also help boost risk appetite.

- Tech stocks plummeted on Wednesday as investors sold off the giants that drove the Wall Street stock market's sharp rise this year. The Nasdaq index fell 2.8%, the worst day since December 2022.

- Tech giant Nvidia (NVDA) shares fell 6.6%, while rival chipmaker Chaowei (AMD) shares fell 10.2%.

- Bloomberg reported on Tuesday that the Biden administration is considering plans to impose more sanctions on Chinese technology companies and tighten restrictions on semiconductor trade between China and the US, triggering a sell-off.

- Foreign holdings of US bonds rose to a record high in May, surpassing the record high in March, according to data released by the US Treasury Department on Thursday.

- US bond holdings increased to $8.129 trillion in May from $8.04 trillion after the April revision. Japan's treasury bond reserves shrunk from $1.15 trillion in April to $1.128 trillion, and Japan remains the largest foreign holder of US Treasury bonds. China's debt holdings, which ranked second, fell from $771 billion in April to $768 billion.

- China published the full text of the deepening reform decisions passed by the Third Plenary Session of the 20th Central Committee on Sunday, making clear arrangements for economic system reform and high-quality development.

- The decision proposes enacting a private economy promotion law, moving the consumption tax collection process backwards and stabilizing local planning, reforming real estate development financing methods and commercial housing pre-sale systems, improving the real estate tax system, and speeding up the reform and transformation of local financing platforms.

- Japan's exports grew for the seventh month in a row in June, supporting the view that the economy will recover in the second quarter from the contraction at the beginning of the year. The Ministry of Finance reported on Thursday that exports increased 5.4% per year, driven by chip manufacturing equipment and non-ferrous metals.

- Cathie Wood said Tesla's entry into the more profitable Robotaxi autonomous taxi platform will be a catalyst for a tenfold increase in stock prices.

- She believes that the global autonomous taxi ecosystem will become an 8- to 10-billion dollar revenue opportunity, and that platform providers such as Tesla will account for half.

- Mihuzo analyst Kevin Wang said ASML's second-quarter orders are expected to reach nearly $5.4 billion, which is higher than generally expected.

- Analysts said ASML may raise performance guidance as major cutting-edge chip contract suppliers, including Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), which produces chips for Nvidia and Apple, will announce results on Thursday, and equipment purchases are expected to increase.

- TSMC achieved another significant increase in results in the second quarter of 2024. According to TSMC's financial report released on July 18, Q2 revenue was NT$673.51 billion, up 40.1% year on year and 13.6% month on month. The year-on-year increase was higher than the 35.5% average forecast from analysts.

- Net profit was NT$247.845 billion, up 36.3% year over year and 9.9% month-on-month, higher than analysts' average expectations of NT$235 billion.

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