Tesla Bought $1.5 Billion Bitcoin

On Monday, Feb 8, Tesla announced it bough $1.5 billion bitcoin and would accept it as a payment method soon.

A few takeaways:

1/ There will be more companies using bitcoin to manage their cash, adding to the demand for it.

2/ Bitcoin as a payment method will be more mainstream. Now people not only can rely on selling it to the market, but maybe can buy a Model Y. The future question would be – what will the “economy” look like on Mars? I bet Bitcoin will be important.

Questions remain –

How Tesla is gonna price its cars? in fixed Bitcoin? that will cause a collision with USD, etc. as Bitcoin is volatile on a daily basis.

「What’s News In China」

HK’s Hang Seng Index will incorporate Chinese internet giants Alibaba, Xiaomi and Meituan Dianping – companies with dual-class or equivalent structures, starting from August, with a weighting cap of 5%. The tech trio are also eligible to join the Hang Seng China Enterprises Index. The Hang Seng is tracked by $20 billion of exchange-listed products globally and $8 billion of local retirement plans, the index provider said in a consultation paper in January. // FT | Hang Seng Indexes


On May 18, HeyTea 喜茶 announced the roll-out of its first artificial meat product, partnering with Starfield 星期零. The 未来肉芝士堡 is priced at ¥25. // 36kr | WeChat

Before HeyTea, its competitor Naixue’s Tea also partnered with Starfield on artificial meat burger last November. Last month, Starbucks and KFC in China launched their artificial / plant-based meat products. // Sina | 36kr


ByteDance is marching into automobile sector with plans to integrate Douyin and Toutiao into cars. The research and development (R&D) team for the Internet of Vehicles (IoV) team are former employees of smartphone maker Smartisan 锤子手机, who joined the company after ByteDance acquired Smartisan (team & patents) in early 2019. // 36kr | kr-asia


Chinese black-box doll retailer Pop Mart 泡泡玛特 has raised more than $100 million in funding from China Renaissance and Loyal Valley Capital in what is expected to be its last round before an IPO. // avcj | 36kr

「What’s News In China」

On April 17, China 2020 Q1 GDP data is released. China’s economy shrank 6.8% in the first three months of 2020 compared with a year earlier, the first such contraction since Beijing began reporting quarterly gross domestic product in 1992. // WSJ


On April 15, China cut the benchmark interest rate for the second time this year, lowering the medium-term lending facility (MLF) for financial institutions to 2.95%. The one-year loan prime rate (LPR), based on banks quotations, was lowered by 20 basis points (bps) from 4.05% to 3.85%. // Reuters | PBOC


China’s central bank has introduced a homegrown digital currency across four cities as part of a pilot program. Internal tests of the digital currency are being conducted in four large cities around China—Shenzhen, Suzhou, Chengdu and Xiong’an, a satellite city of Beijing. // WSJ


As China is reopening its economy, getting consumers to spend is one of the key initiatives. Many cities collaborate with Alipay to give residents discount coupons for various needs. Wuhan, which reopened on April 8, on April 17 announced that it is going to offer coupons worth of 2.3 billion RMB for restaurant, shopping malls, grocery stores and other cultural/sports spendings. // cnbeta

「News of the Week」 Dow Jones Best Two-week Performance Since 1930s

WSJ – Dow Jones Industrial Average rose 2.2% this week, extending its rally over the past two weeks to 15%—its best performance since 1938

Things that pushed the market upward:

STAT – Early peek at data on Gilead coronavirus drug suggests patients are responding to treatment

White House – Reopening guideline

Texas Tribune – Texas to restart the economy, loosens some restrictions

「What’s News In China」

On April 7, TAL Education 好未来 (NASDAQ: TAL) announced it discovered “certain employee wrongdoing” in its “routine internal auditing process.” TAL says the employee of question could wrongly inflate “Light Class” 轻课 sales by forging contracts and other documentations. For the fiscal year 2020 ended February 29, 2020, “Light Class” sales accounted for approximately 3% to 4% of the Company’s total estimated revenues.  // Press Release | 36kr


Last week, Guangdong Restaurant Association published an open letter to Meituan, saying that Meituan delivery has a market share of 60 to 90 per cent in Guangdong province… charges up to 26 per cent commission for newly-opened catering merchants. Meituan (HKG: 3690) on April 10 replies that more than 80 per cent of businesses on its platform pay a commission of between 10 per cent to 20 per cent. And it only earns ¥0.02 per delivery order (profit) in 2019Q4. // Sina | SCMP


China’s three biggest telecoms carriers join forces to introduce 5G-based messaging service 5G消息, introducing 5G-based rich communication services (RCS), competing with existing apps like Tencent’s WeChat. It will also allow organizations and firms to directly provide services to and communicate with users. // technode | White Paper


On April 10, Blackstone Chairman and CEO Schwartzman went on live with audience in China, with Hillhouse’s Lei Zhang and Vanke Liang Yu. Schwartzman brought his new book. The live-streaming is on Bytedance’s Toutiao and Douyin. // Sina | 36kr

Source: 36kr

「News of the Week」New York State Curve Flattening, Stock Market Up

On Tuesday (April 7), Gov. Andrew Cuomo projected that the state is reaching a plateau in coronavirus hospitalizations due to strict social distancing measures.

“To the extent that we see a flattening or a possible plateau, that’s because of what we’re doing and we have to keep doing it,” Mr. Cuomo said. (WSJ)

three day hospitalizations
Source: Cuomo press conference, Axios

The S&P 500 on Thursday (April 9) closed out its best four-day streak since 1974, up 11.9% (Dow up 12%). (CNBC)

CH 20200409_dow_best_weeks_close.png

「What’s News In China」

Yuanfudao 猿辅导 raised $1 billion led by Tencent and Hillhouse in a round valued at $7.8 billion. Offering online courses and homework plans to students, Yuanfudao ranked first in China in-app purchases in the education category between January and mid-March, according to mobile app performance tracker App Annie. // Reuters | 36kr


Tencent controlled Huya (NASDAQ: HUYA) by exercising its option, purchasing 16.5 million of Huya’s Class B ordinary shares from JOYY Inc. (NASDAQ: YY) for approximately $262.6 million. Tencent has became the largest shareholder of Huya, increasing its voting power in Huya to 50.1% on a fully-diluted basis, or 50.9% calculated based on the total issued and outstanding shares of Huya, and will consolidate financial statements of Huya. Tencent has already been the top shareholder of Douyu (NASDAQ: DOYU). With its investments in Kuaishou and Bilibili, Tencent has gained a near monopoly in game streaming. // Huya | 36kr


On April 6, Wolfpack, on its short selling research website, issued a report on iQiyi (NASDAQ: IQ) and estimates that “IQ inflated its 2019 revenue by approximately RMB 8-13 billion, or 27%-44%… by overstating its user numbers by approximately 42%-60%.” // Wolfpack

「Video of the Week」Queen Elizabeth Coronavirus Speech


Transcript:

I am speaking to you at what I know is an increasingly challenging time. A time of disruption in the life of our country: a disruption that has brought grief to some, financial difficulties to many, and enormous changes to the daily lives of us all.

I want to thank everyone on the NHS front line, as well as care workers and those carrying out essential roles, who selflessly continue their day-to-day duties outside the home in support of us all. I am sure the nation will join me in assuring you that what you do is appreciated and every hour of your hard work brings us closer to a return to more normal times.

I also want to thank those of you who are staying at home, thereby helping to protect the vulnerable and sparing many families the pain already felt by those who have lost loved ones. Together we are tackling this disease, and I want to reassure you that if we remain united and resolute, then we will overcome it.

I hope in the years to come everyone will be able to take pride in how they responded to this challenge. And those who come after us will say the Britons of this generation were as strong as any. That the attributes of self-discipline, of quiet good-humoured resolve and of fellow-feeling still characterise this country. The pride in who we are is not a part of our past, it defines our present and our future.

The moments when the United Kingdom has come together to applaud its care and essential workers will be remembered as an expression of our national spirit; and its symbol will be the rainbows drawn by children.

Across the Commonwealth and around the world, we have seen heart-warming stories of people coming together to help others, be it through delivering food parcels and medicines, checking on neighbours, or converting businesses to help the relief effort.

And though self-isolating may at times be hard, many people of all faiths, and of none, are discovering that it presents an opportunity to slow down, pause and reflect, in prayer or meditation.

It reminds me of the very first broadcast I made, in 1940, helped by my sister. We, as children, spoke from here at Windsor to children who had been evacuated from their homes and sent away for their own safety. Today, once again, many will feel a painful sense of separation from their loved ones. But now, as then, we know, deep down, that it is the right thing to do.

While we have faced challenges before, this one is different. This time we join with all nations across the globe in a common endeavour, using the great advances of science and our instinctive compassion to heal. We will succeed – and that success will belong to every one of us.

We should take comfort that while we may have more still to endure, better days will return: we will be with our friends again; we will be with our families again; we will meet again.

But for now, I send my thanks and warmest good wishes to you all.


Source: telegraph.co.uk