📈 China AI stocks crash

Together With

Advertise with us | Our Newsletters | Your Rewards

Good Morning,

Shares of Chinese AI companies experienced a decline after the state media outlet, Economic Daily, raised concerns about a valuation bubble in the sector. And French President Emmanuel Macron urged Europe to decrease its reliance on the United States and steer clear of a potential conflict between the U.S. and China concerning Taiwan during his recent state visit to China.

Tesla has announced its plans to open a "Megafactory" in Shanghai, China. Initially, the factory will produce 10,000 Megapack battery units per year. And Silicon Valley Bank's recent failure has highlighted the challenges faced by smaller financial institutions that focus on the technology sector, which is known for its volatility and risks.

Supercharge Your Investing with Composer (sponsor)
Investing in 2023 can be overwhelming, but with the power of logic, data, and ChatGPT, it doesn't have to be. Composer gives you the tools to apply advanced algorithmic strategies that supercharge the way you invest. Say goodbye to emotional decision-making and hello to financial agility in 2023. Not sure what to ask ChatGPT using our new functionality? Here’s a few of our favourites:

• What are the risks of this strategy?

• What should I add to diversify this strategy?

• What type of strategy would be a good complement to this one?

Get ahead of the competition and revolutionize your investments with your investing co-pilot Composer.

Markets

China AI Stocks Sink on Call for Beijing to Rein In Bubble Risk (1 minute read)
Shares of Chinese artificial intelligence companies experienced a decline after the state media outlet, Economic Daily, urged regulators to increase supervision to prevent potential speculation. In its commentary on Monday, the newspaper highlighted concerns about a valuation bubble in the AI sector, with several companies making little progress in developing the technology. The Economic Daily called for crackdowns on share-price manipulation leading to Several companies, including CloudWalk Technology Co., 360 Security Technology Inc., and Beijing Haitian Ruisheng Science Technology Ltd., witnessing a significant drop in share prices as a result.

Europe must resist pressure to become ‘America’s followers,’ says Macron (5 minute read)
During a recent interview on his return from a three-day state visit to China, French President Emmanuel Macron shared his thoughts on Europe's need to decrease its reliance on the United States and steer clear of a potential conflict between the U.S. and China concerning Taiwan. Speaking with POLITICO and two French journalists, Macron reiterated his belief in "strategic autonomy" for Europe, which he envisions being led by France as a "third superpower." He went on to warn that if Europe becomes too entangled in foreign crises, it risks hindering its ability to build strategic autonomy.

Tokyo stocks rise on weaker yen, easing US recession fears (2 minute read)
On Monday, Tokyo stocks experienced a rise, driven by a weaker yen that boosted exporters, along with reassuring employment data which alleviated concerns of a U.S. recession. The 225-issue Nikkei Stock Average saw a 0.42% increase, equivalent to 115.35 points, ending at 27,633.66 compared to Friday. Meanwhile, the broader Topix index closed at 1,976.53, up 11.09 points or 0.56%. The marine transportation, mining, and rubber product sectors saw the most significant gains. Dealers noted that the U.S. dollar strengthened to the upper 132 yen level in Tokyo due to expectations of a wider interest rate gap between the U.S. and Japan following robust U.S. nonfarm payroll data for March. As a result, investors anticipate further rate hikes by the Federal Reserve to cool the economy.

Investing

Five Common Mistakes High-Net-Worth Clients Make (2 minute read)
Financial advisors have a lot to consider when advising high-net-worth clients, especially in terms of avoiding common mistakes and pitfalls. According to Craig Toberman, certified financial planner and founder of Toberman Wealth, the implications of these errors are amplified when dealing with high-net-worth investors. "Seemingly minor mistakes can result in significant losses in realized wealth over time," Toberman cautions. To gain insight into these potential errors and ways to address them, Wola sought the advice of experts in the field.

Tesla to build Megafactory in Shanghai (2 minute read)
Tesla announced on Sunday that it would open a "Megafactory" in Shanghai, China, according to reports from the state news agency Xinhua. Initially, the factory will produce 10,000 Megapack battery units per year, which equates to approximately 40 gigawatt hours of energy storage. The batteries will be sold globally. While Tesla has not yet responded to requests for comment, CEO Elon Musk tweeted that the factory would "supplement output" from the California plant. However, the company's market share has shrunk from 72% to 54% since January 2022, and analysts predict it will drop below 50% in the next few months.

Why the startup sector should keep its eye on the SEC (4 minute read)
Silicon Valley Bank's recent failure represents more than just a loss for the U.S. startup ecosystem; it could lead to a wave of stricter regulations affecting not just midsize banks, but private companies and funds as well. While SVB's failure cannot be attributed to the venture ecosystem, some policymakers have criticized the bank's depositors, including many venture-backed startups, creating a negative narrative with major implications for the venture community. This marks a turning point as policymakers and regulators have already begun to increase scrutiny of private markets, representing a departure from the last two decades.

Money

What Is the Average Social Security Benefit at Every Age? (2 minute read)
The age at which you choose to cash in your Social Security benefits has a big impact on your monthly retirement payment. While you can claim benefits as early as 62, your payment will be reduced if you do so before reaching your full retirement age, which varies based on your birth date. Currently, the average monthly benefit for Social Security recipients is $1,781.63 as of February. Waiting until your full retirement age or later can result in a larger monthly payment.

🐥

Best of Twitter

Thanks for reading, if you enjoyed, tell your friends!

P.S: If you're interested in crypto and web3 - check out our new newsletter, The Crypto Journal!

Share The Investing Journal with your friends to receive rewards!