Here's what happened in China's markets last trade day (12/18):

1. Alibaba Cuts Stakes to Raise Cash amid Regulatory Landscape
- Alibaba plans to sell 25 million Xpeng Inc. shares, raising $391 million, reducing its stake from 10.2% to 7.5%.
- It also trims GOGOX stake by 4.7 million shares, decreasing Alibaba's stake to 10.42%.
- China's State Council announces stricter rules for non-bank payment institutions effective May 1, 2024.
- Regulatory uncertainties may delay Ant Group's spin-off.
$BABA-W (09988.HK)$ $Alibaba (BABA.US)$ $XPeng (XPEV.US)$ $XPENG-W (09868.HK)$ $GOGOX (02246.HK)$

2. Xiaomi Founder Optimistic About EV Launch
- Xiaomi founder, Lei Jun, reveals $1.4 billion investment in EV models SU7 and SU7 Max.
- Initial contract manufacturing by Beijing Automotive Industry Holdings (BAIC).
- Prices range between $26,000 and $42,000, targeting a 668-800 km range.
- Xiaomi emerges as a potential competitor in the local EV industry.
$Xiaomi Corp. (XIACF.US)$ $NIO Inc (NIO.US)$ $NIO Inc. USD OV (NIO.SG)$ $NIO-SW (09866.HK)$ $Tesla (TSLA.US)$ $Li Auto (LI.US)$ $LI AUTO-W (02015.HK)$

3. China Eases Rules on Share Repurchases
- China Securities Regulatory Commission (CSRC) revises rules on share repurchases for listed companies.
- CSRC lowers the threshold for triggering repurchases from 30% to 20% over a 20-day period.
- New condition allows repurchases when a stock's closing price falls below 50% of its highest 12-month close.
- Changes aim to improve long-term market confidence.
$Kraneshares Tr Bosera Msci China A Sh Etf (KBA.US)$ $iShares China Large-Cap ETF (FXI.US)$ $iShares MSCI China ETF (MCHI.US)$ $iShares MSCI China A ETF (CNYA.US)$

4. State-Backed China South City Holdings Faces Default Risk
- State-backed China South City Holdings struggles amid mainland property challenges.
- In talks to restructure $1.35 billion in bonds due 2024.
- Faces deadline by December 20 to finalize restructuring or meet an extended payment deadline for one bond.
- Real estate transactions show monthly improvement but a year-on-year decline of 12%.
$Global X Funds Global X Msci China Real Estate Etf (CHIR.US)$ $SUNAC (01918.HK)$ $COUNTRY GARDEN (02007.HK)$ $EVERGRANDE (03333.HK)$