Here's what happened in China's markets last trade day (8/28):

They announced today that the stampduty will be cut by 50% effective immediately. It was at the highest of the indicated range of 20% to 50%, which is bound to increase market liquidity and entice new investors and traders to participate given the lower transaction costs. At the same time, China’s stockmarkets will lower the margin requirement by 20% effective September 8, freeing up more liquidity in a move expected to stimulate the market. $Kraneshares Tr Bosera Msci China A Sh Etf (KBA.US)$ $iShares MSCI China ETF (MCHI.US)$ $Kraneshares Tr Cicc China Leaders 100 Index Etf (KFYP.US)$

This includes banning insider sales of stocks for companies that trade below IPO or book value, as well as those that don’t pay out at least the equivalent of 30% of their average annual profits cumulatively over 3 years. The CSRC also approved 37 new retail funds over the weekend as part of its efforts to help Beijing develop the capital markets and encourage more of China’s massive household savings to flow into the equities market. $iShares China Large-Cap ETF (FXI.US)$ $Global X MSCI China Financials ETF (CHIX.US)$ $Global X Funds Global X Msci China Real Estate Etf (CHIR.US)$

This material is said to outperform silicon for making semiconductor wafers needed to make advanced microchips. The next challenge is to use this new material to produce wafers big enough and consistent enough to produce on a mass scale. While China lags several generations behind the US and Japan in terms of chip manufacturing, finding novel ways to replace existing raw materials that could open up new frontiers in semiconductor applications could help the country boost its influence in the global industry. $Taiwan Semiconductor (TSM.US)$ $Advanced Micro Devices (AMD.US)$ $Intel (INTC.US)$ $ASML Holding (ASML.US)$ $Micron Technology (MU.US)$ $NVIDIA (NVDA.US)$ $SENSETIME-W (00020.HK)$ $SMIC (00981.HK)$

4. Chinese electric vehicle maker Xpeng Inc. will acquire the EV startup division of ride-hailing firm Didi Chuxing for $744 million in a share deal.
Didi will take a 3.25% stake in Xpeng, which will also collaborate with Didi on EV-related fields like charging infrastructure, robo taxis, and potential joint ventures for global expansion. Xpeng will launch a new EV brand, Mona, from its acquisition of Didi’s EV arm, which will target the mass market segment priced at RMB 150,000 ($20,500). Xpeng CEO He Xiaopeng is targeting annual sales of 100,000 units for Mona. Xpeng recently scored a coup when it got a $700 million investment from German auto giant Volkswagen, which took a 5% stake in the company. $DiDi Global Inc (DIDIY.US)$ $XPENG-W (09868.HK)$ $XPeng (XPEV.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $NIO Inc. USD OV (NIO.SG)$ $NIO-SW (09866.HK)$ $BYD Company Limited (002594.SZ)$ $BYD COMPANY (01211.HK)$

However, it was a more modest decline than in previous months, indicating that Beijing’s supportive measures were starting to have some effect on business. The year-to-date decline was still a hefty 15.5%, with private-sector industrial companies fairing the best with a 10.7% decline in profits. A weaker global economy, falling commodity prices, and depressed demand for steel owing to a slow property market, all contributed to this poor economic data. This puts more pressure on Beijing to boost support measures for the country’s services sector to address the need to grow employment. $Global X MSCI China Consumer Discretionary ETF (CHIQ.US)$ $BABA-W (09988.HK)$ $MEITUAN-W (03690.HK)$ $JD-SW (09618.HK)$