Although China’s economy and stock market size has been growing fast, the underlying capital market mechanisms are not as advanced.
China has made several efforts to modernize its stock market, but mostly remained in the previous framework or didn’t become a game-changer.
This time is different.
Regulatory approvals are replaced by general registration processes (guidance and regulations still there). Any company that fulfills certain requirements can go public.
Pre-profit companies can go public. Previously, the stock market was heavily leaning towards sectors with profits like banking.
Different share structures are allowed. Super voting power is allowed.
Lock-up period is higher than NASDAQ’s.
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Attached is a presentation from a major investment bank in China.
The $74 billion merger between Bristol and Celgene was an uncertain one, opposed by Wellington (more than 8% of BMY) & Starboard (recently added position of less than 0.5% of BMY).
The merger in assets actually makes sense to me and should make sense to many investors. But the question of BMY-only shareholders, who don’t own much CELG stocks, is that the benefits are probably captured unevenly by Celgene.
Suppose the base case for Celgene stock price without acquisition is $75 and the merger price is $50 cash + 1 BMY share ($52 value) + $9 option ($3 value) -> $105 per share – when it was traded at $90/share, the market suggested a probability 50% of a successful merger. [75*(1-p) + 105*p = 90]
When CELG was traded at $84, the market suggested a success rate of 30%. [75*(1-p) + 105*p = 84]
(Yes, the market just take simple numbers… )
Wellington/Starboard might just want to add more negotiation power to get some other benefits (special board treatment e.g.) or to load up some CELG…
BMY alone probably won’t perform very well, they should understand that.
SF Bay Area BART (one of the major rail transits above) service’s map, including planned projects
Source: futuretravel.today
SF Bay Area airports map (3 major airports: SFO, SJC, OAK)
Source: airportspotting.com
China’s Greater Bay Area newly-built bridge
Source: scmp.com
Hong Kong-Zhuhai-Macau bridge is adding Hong Kong’s direct conenction with Zhuhai. To some extent, it is reducing the unparalleled weight of Hong Kong-Shenzhen bond.
Source: NY Times
China’s Greater Bay Area transit map
Source: lantau.gov.hk
China’s Greater Bay Area airports map
Source: scmp.com
Shenzhen and Hong Kong’s airports will be the dual core. Macau’s airport will gain more importance (towards tourists). Guangzhou’s airport will probably share more responsibility as the connecting point for all other cities China (the connecting hub was Hong Kong).
The incremental improvements in smartphones are less exciting in recent years. Besides the introduction of 5G, companies trying to get consumers’ attentions have introduced foldable phones this year – a more dramatic change in appearance (to show that you have the latest/expansive phone).
With the Mobile World Congress (MWC) happening this week and many world’s leading handset brands having announced their products to be launched later this year, Snapdragon 855’s worldwide penetration map has become clear.
1. First of all, the largest handset manufacturer by shipment Samsung announced its 10th anniversary phones – Galaxy S10 series.
Source: samsung.com
There are four versions:
S10e $750
S10 $900 with free Samsung’s wireless earbuds
S10+ $1000 with free Samsung’s wireless earbuds
S10 5G bigger screen and battery, an additional rear camera (4!), with Qualcomm’s X50 5G modem, pricier and available on later dates ($1,200 up, depending on sale of S10+ I think) [Read more on S10 5G]
S10 series will use Snapdragon 855 platform in regions including North America, Latin America, Hong Kong, China, and Japan, and in Europe it will be using Samsung’s own Exynos 9820.
Mi 9 might be the cheapest handset with Snapdragon 855 available globally, starting at RMB ¥2,999 in China and €450 in Europe. Xiaomi also revealed Mi 9 SE, priced lower at RMB ¥1,999, featuring Snapdragon 710. And a global launch event is in Barcelona during MWC on 24 February.
Another version of a previous handset by Xiaomi – Mi Mix 3 5G is also announced today at MWC. Mi Mix 3, when introduced in October 2018, uses Snapdragon 845; the new 5G version will use Snapdragon 855, plus Qualcomm’s X50 5G modem. The device will be available in May for €599 (cheapest 5G with Qualcomm’s X50 modem?) in selected Europe market. [TechCrunch]
Source: TechCrunch
Xiaomi is one of Qualcomm’s crucial allies in Chinese market (and globally).
3. OnePlus to announce OnePlus 7 5G with Qualcomm’s Snapdragon 855 and X50 5G modem
A Chinese company that is doing surprisingly well in its global presence I’d say. By not focusing on Chinese market, OnePlus’ majority brand/marking/community efforts are outside of China IMO.
On the Qualcomm Snapdragon Technology Summit mentioned above, OnePlus has said it will work with EE (a division of BT, the largest operator in UK) to be the first to release a commercial 5G smartphone in Europe (second half of 2019 in UK and Finland, according to the recent report by USA Today).
Although OnePlus has been very successful in US before, it will solely focus on Europe at the first launch (different operator partners with Xiaomi).
4. Lenovo Z5 Pro GT – available only in China starting at ¥2698, first Snapdragon 855 phone available
So it becomes clear that Snapdragon 855 will be in
US with Samsung and LG
Europe with Xiaomi and OnePlus
China & Asia with Samsung, Xiaomi, Lenovo, LG
5G modem is more complicated with carriers’ spectrum but Qualcomm seems to be ready for its 5G globally, with the existing X50 and newly released X55. (And Apple will need another year from Intel for 5G…)
Spark won FDA’s first approval on gene therapy for genetic disease more than one year ago, treating retinal dystrophy (by mutations on the RPE65 gene) with LUXTURNA. The treatment carries a list price of $850,000, or $425,000 per eye.
Besides, Spark Therapeutics has SPK-8011 in clinical trials, a novel gene therapy for the treatment of haemophilia A, which is expected to start Phase 3 in 2019.
