China Fund News Taylor
Everyone has a happy National Day, A shares are on holiday, there is no holiday on the outside, let’s take a look at today’s market events
Credits stock price collapsed
Caisson 1
Shared shares traded on the Swiss Exchange once fell 10%. On the news side, the Credit Suisse Group 's credit risk indicator rose to a record level.
U.S. stocks fell 5% before the market opened
Previously, ABCNews reporter David Taylor revealed on social media that a large investment bank is on the verge of bankruptcy, and some overseas self-media speculated that it might be Credit Suisse. David Taylor has deleted this content at present.
According to reports, the person in charge of Credit Suisse responded that it declined to comment on the news.
Credit Suisse Group tried to alleviate concerns about the group's health during a memo to employees and a round of calls to investors and clients over the weekend, according to people familiar with the matter.
Credit Suisse shares fell 21% in September, and last Friday, the spread of its credit default swap (an insurance method for hedging the risk of default) rose to its highest level this year. Market conditions have deteriorated, Credit Suisse may find it difficult to raise funds through issuing new shares to pay for the restructuring plan, and the group's financing costs may rise significantly.
The aforementioned person familiar with the matter said that he has not yet made official contact with any shareholders regarding the issuance of new shares.
A big investor said that Credit Suisse's banking and wealth management platforms are valuable, but investment banking business is like a disaster. "The transaction situation of the company CDS is like the Lehman time is coming."
In the early morning of October 3, Ulrich Koerner reiterated the content of his memorandum last Friday on the social platform.
"Financial Times " quoted sources as saying that Credit Suisse management began to be busy contacting major customers and counterparties over the weekend to stabilize their emotions and reiterated that the group had no pressure to raise funds.
Reuters reported that Credit Suisse CEO Ulrich Koerner issued a notice to employees on Friday, emphasizing that the group's liquidity and cash levels are good.
According to Wall Street Journal , Credit Suisse's high-quality current assets were approximately US$238 billion as of the end of June. The figure has not changed substantially since then, a person familiar with the matter said. According to Credit Suisse's second-quarter financial report, as of the end of June, Credit Suisse's leveraged risk exposure was approximately US$873 billion.
Some of investors' concerns about Credit Suisse's health are focused on its leveraged financing portfolio, which the bank said as of June 30, totaled $5.9 billion. Credit Suisse is one of the main lenders in Citrix Systems Inc.'s leveraged deal, which cost a bank consortium.
Another area of focus for investors is its securitization products division, which has a total exposure to mortgage bonds and asset financing of approximately $75 billion. Credit Suisse said in July it could introduce an external investor to reduce its investment in the sector, but has not signed an agreement.
Korner compared Credit Suisse's situation to Phoenix Nirvana in a memorandum last Friday, believing that the company will continue to grow in the long term.
information shows that Credit Suisse Group was founded in 1856 and is headquartered in Suez, Switzerland. It is the fifth largest consortium in the world and the second largest bank in Switzerland . In 2022, it ranked 494th in the Fortune World Top 500.
Credit Suisse is an investment banking and financial services company that operates individual, corporate financial services, banking products and pensions and insurance services. There are branches in more than 50 countries, with a total investment of US$24.5 billion and a managed property of 1195.3 billion Swiss francs . In addition to operating bulk and retail banking business in Switzerland, Credit Suisse's international services focus on professional bulk banking business. In its extensive service projects, Credit Suisse combines its proprietary technology, strong capital, Swiss-specific care with neutral country and other features to ensure attractive services.Credit Suisse's outstanding performance in the banking industry is the rapid growth of its customers and partners, and it has become one of the world's 50 largest banks with a huge capital of CHF 1.85 billion.
Tesla fell nearly 5% before the market trading
news, on October 2, Tesla released its delivery data for the third quarter of 2022, with delivery volume of 343,830 vehicles, a record high, but lower than the expected Wall Street of about 358,000 vehicles.
Tesla blamed logistics transportation for the reason for the lower delivery volume than expected, noting that many vehicles are "still in transportation".
In a press release last Sunday, the company wrote:
"Always, due to the mass production methods for different regional markets, our delivery volume will suddenly rise at the end of each quarter. With the continuous increase in production, the challenge of ensuring long-term capacity at the peak of logistics and transportation is becoming increasingly greater."
Oil prices rose sharply
On Monday, oil prices continued to rise throughout the day, with an increase of more than 4%
Previously, OPEC+ was planning to reduce production by the largest scale of the epidemic.
According to media reports yesterday, OPEC+, composed of oil-producing countries, will consider reducing production by more than 1 million barrels per day when the meeting was held on Vienna on Wednesday. Delegates said that there will be no final decision on the scale of production cuts before ministers of various countries meet, but this scale reduction will be the largest since the epidemic.
media said that the plan to cut production by more than 1 million barrels per day has received support from Russia. But OPEC representatives said that Saudi Arabia is reserved about the scale of production cuts.
Worries about a global economic slowdown have put pressure on the outlook for energy demand, with crude oil prices falling for the first quarter in more than two years last Friday.
Investment banks including JPMorgan recently said that OPEC+ may need to lower daily output by at least 500,000 barrels to stabilize oil prices. RBC said OPEC+ may choose to cut production twice as much. Therefore, the final cut may be even greater.
Another media pointed out that the final production cut decision will be a fierce debate, and other plans under consideration include a production cut of 500,000 barrels or up to 1.5 million barrels per day. But a sharp cut in production could attract criticism from the United States and other major oil consumers, which have been fighting economic slowdowns and energy-induced inflation.
Guo Guangchang takes action again: reduce holdings!
According to documents disclosed by the Hong Kong Stock Exchange, Fosun International sold Fosun International at an average price of 30.02 yuan per share on September 28, with a shareholding ratio of 38.388 million shares of Fosun Pharmaceutical html, and its shareholding ratio dropped from 43.28% to 42.88%.
Recently, Fosun has frequently reduced its holdings and cashed out. Since the beginning of this year, at least 13 participating companies have announced the reduction of their holdings and have completed the reduction of their holdings, including Fosun Pharma, Yuyuan Shares, Jinhui Liquor , Hainan Mining , Zhongshan Public Utilities, Taihe Technology , Sanyuan Shares, Kute Intelligence, ST Guangtian, COFCO Engineering, etc., as well as Hong Kong stock Qingdao Beer , Fosun Tourism Culture, Xinhua Insurance, etc., with the reduction amount exceeding 10 billion yuan.
Fosun system's continuous reduction in holdings has caused market attention to its debt and liquidity issues, and Guo Guangchang has to speak out continuously through Weibo.
htmlOn September 15, Guo Guangchang posted on Weibo again in response to Bloomberg's report that "China's regulatory authorities require banks and some state-owned enterprises to survey and Fosun-based enterprises' exposure." Guo Guangchang said that the report seriously deviated from the facts. After it was widely spread at home and abroad, it seriously misled investors, causing abnormal market fluctuations, and had a significant impact on the normal operation and reputation of Fosun's companies. Because Bloomberg is unwilling to correct and clarify, Guo Guangchang said, "I regret but also firmly decide that Fosun will formally file a lawsuit with the court, firmly hold it accountable for its legal responsibility, and resolutely defend all legitimate rights and interests of Fosun."-
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