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Chinese Concept Stocks | Nasdaq Golden Dragon Index Rises as Pinduoduo and Baidu Face Challenges

Market BriefThursday, Nov 21, 2024 5:32 pm ET

4min read

On November 21st, Eastern Time (Thursday), the three major U.S. stock indices collectively closed higher, with the S&P 500 index up 0.53% at 5948.71 points; the Dow Jones index up 1.06% at 43870.35 points; and the Nasdaq index up 0.03% at 18972.42 points.

On November 20th, the Nasdaq Golden Dragon China Index rose by 1.44%.

Among popular Chinese stocks, TSMC rose 1.52%, NIO rose 1.29%, NetEase rose 1.27%, JD.com rose 0.57%, Baidu fell 5.90%, XPeng Motors fell 2.73%, Pinduoduo fell 10.65%, Bilibili fell 1.88%, and Alibaba fell 1.38%.

The following companies have seen consecutive rises in their stock prices: Burning Rock Biotech rose 15.95% over 6 consecutive days, with a cumulative increase of 53.71%; 21Vianet Group rose 15.16% over 5 consecutive days, with a cumulative increase of 26.98%; Uxin rose 3.70% over 5 consecutive days, with a cumulative increase of 32.66%; Deswell Industries rose 0.32% over 5 consecutive days, with a cumulative increase of 2.68%; China Green Agriculture rose 6.12% over 5 consecutive days, with a cumulative increase of 23.81%; Four Seasons Education rose 2.41% over 5 consecutive days, with a cumulative increase of 2.92%.

The following companies have seen consecutive declines in their stock prices: Fangdd Network Group fell 6.43% over 10 consecutive days, with a cumulative decline of 58.64%; DouYu fell 0.10% over 8 consecutive days, with a cumulative decline of 16.28%; Zibao Technology fell 5.32% over 5 consecutive days, with a cumulative decline of 23.05%; Fanhua Inc. fell 2.06% over 5 consecutive days, with a cumulative decline of 12.84%; Kebiao Technology fell 4.17% over 5 consecutive days, with a cumulative decline of 18.75%.

Pinduoduo Co-CEO Zhao Jiazhen: Market competition is intensifying, and revenue growth slowdown is inevitable. Pinduoduo released its Q3 financial report today. During the earnings call, Pinduoduo Co-CEO Zhao Jiazhen stated that with the intensification of market competition, revenue growth slowdown is inevitable, and the company also faces some challenges. "Since the third quarter, due to limitations in the platform's operating model and the team's historical experience and capabilities, disadvantages compared to peers will significantly exist for a period of time, potentially further impacting financials."

Pinduoduo Vice President of Finance Liu Jun: Pinduoduo's profitability may show a declining trend in the long term.

Robin Li: AI revenue in Q3 from Baidu's Intelligent Cloud increased to over 11%. During Baidu's 2024 Q3 earnings call, Baidu's founder, chairman, and CEO Robin Li stated that in the third quarter, Baidu Intelligent Cloud's revenue reached 4.9 billion yuan, an 11% year-on-year increase, with the Non-GAAP operating profit margin also improving year-on-year. The proportion of AI-related revenue increased to over 11%.

Robin Li: Baidu App's AI features now cover nearly 70% of monthly active users. During Baidu's 2024 Q3 earnings call, Baidu's founder, chairman, and CEO Robin Li stated that Baidu App AI features now cover nearly 70% of its monthly active users, with users interacting with AI spending more time, and the total number of daily interactions reaching tens of millions. Currently, over 20% of search result pages on Baidu Search include AI-generated content.

Beike's Q3 net revenue was 22.6 billion yuan (3.2 billion USD), up 26.8% year-on-year. Beike's Q3 net revenue was 22.6 billion yuan (3.2 billion USD), up 26.8% year-on-year. Net profit was 1.168 billion yuan (167 million USD). Adjusted net profit was 1.782 billion yuan (254 million USD).

Alibaba Group: Establishes E-commerce Business Group. Alibaba Group announced the establishment of the Alibaba E-commerce Business Group, fully integrating Taobao Tmall Group, Alibaba International Digital Commerce Group, and e-commerce businesses like 1688 and Xianyu, forming a business cluster covering the entire industry chain domestically and internationally. Mr. Jiang Fan has been appointed CEO of the Alibaba E-commerce Business Group.

As of November, the number of developers in Baidu PaddlePaddle's ERNIE ecosystem reached 18.08 million. Baidu's financial report shows that in the third quarter, Baidu launched ERNIE Speed Pro and ERNIE Lite Pro, two enhanced lightweight models, expanding the richness of the ERNIE series models. As of November, the number of developers in Baidu's PaddlePaddle ERNIE ecosystem reached 18.08 million.

Baidu Group: Q3 2024 revenue was 33.6 billion yuan, with net profit up 17% year-on-year. Baidu Group released its Q3 2024 financial report, showing total quarterly revenue of 33.6 billion yuan, Baidu Core revenue of 26.5 billion yuan, and net profit attributable to Baidu Core of 7.54 billion yuan, up 17% year-on-year, exceeding market expectations. The financial report shows that in November, the daily call volume of the ERNIE large model reached 1.5 billion times, a 30-fold increase compared to the 50 million times disclosed in Q4 last year.

Novo Nordisk's weight loss drug is selling well on JD.com, with prices reaching up to 1,700 yuan per injection. Novo Nordisk's weight loss version of semaglutide injection has been launched in China, as the world's first GLP-1RA weekly formulation, sales are booming, and prices are rising. JD.com's sales volume has reached nearly a thousand units, providing online appointment services and health service packages.

Futu denies rumors of large-scale layoffs: Not true. Futu: Recently, there have been social media posts about large-scale layoffs at Futu. These posts contain false information, and we hope that everyone does not believe or spread rumors. Recently, to further expand overseas business, the company has made organizational adjustments to improve operational efficiency. During the adjustment process, there have been both new positions and some optimization of existing positions, with personnel movements accounting for about 5% of the total number of employees, which is part of the company's normal business iteration. In the future, Futu will continue to focus on core business, continuously innovate, enhance market competitiveness, and ensure long-term stable development in a changing environment.

JD.com launches EPC tender for Hangzhou JD MALL, with a total investment of 1.199 billion yuan. On November 21, JD.com announced the launch of the EPC tender for Hangzhou's first JD MALL project, with a total investment of approximately 1.199 billion yuan. The project is located in Hangzhou, with a total construction area of 88,900 square meters, and an expected construction period of 3 years and 4 months. Part of the MALL is planned to have an area of 36,000 square meters, and construction is planned to start before the end of the year, aiming to become a landmark for one-stop 3C home appliances and home furnishing consumption in Zhejiang. JD MALL, as a self-operated commercial entity, expands with the "one city, one store" model and has already been deployed in multiple cities across the country. The first JD MALL in Zhejiang opened on November 11, 2023, in Yinzhou District, Ningbo.

Taobao to adjust the "Alcohol" primary category deposit tier limit. According to Taobao's public notice, Taobao will adjust the "Taobao Guarantee Deposit Category Tier Limit Standard," adjusting the "Alcohol" primary category deposit tier limit. According to the new rules, only the first tier of the three-tier deposit for the corresponding category will be adjusted: for transactions under 100,000 yuan in the past 30 days, the deposit amount will be increased from 5,000 yuan to 10,000 yuan. This rule change will take effect on November 27, 2024. It is understood that the deposit is the fund that sellers deposit to ensure the quality of their goods and services, guarantee consumer protection service commitments, and comply with Taobao's relevant agreements and rules.

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PunishedRichard

11/22

$BIDU is fine, I'm taking some shares, not all, but a substantial portion. I'm a cautious bull.

Holiday_Context5033

$NIO has an extremely high borrowing cost....: https://www.youtube.com/live/b6ipUaaCAlI?si=pQZ-_cYG7WmxxX80

Ok_Secret4642

$BIDU Difficult to determine the ideal entry point. The entry point is crucial. I'm hesitant to average down on this stock again.

Harpnut

$BIDU Truthfully, anyone diving into Chinese stocks these days is nuts. I made that mistake during the Trump presidency.

ghostboo77

$NIO Community, it seems like Shorts will be quieter tomorrow! Singapore is soaring!

Sweet-Block5118

$BIDU, drop it like it's hot. I'll be scooping it up like I did before, ready to sell at $110 again. Rinse and repeat!

$NIO it's a genuine chance, folks

maximalsimplicity

$BIDU After yesterday's steep decline (3% down), the stock's price-to-sales ratio is currently 1.50 and would fall to one if you consider the company's net cash position. With a market cap of $27 billion and trailing twelve-month revenue of $18.72 billion, BIDU has a net cash reserve of approximately $8 billion. This is quite remarkable, although it might not be of immediate concern during these challenging times, it could be significant in the long run.

TheLastMemeLeft

$BIDU I don't understand, why did BIDU get another 4% drop while other Chinese stocks are holding steady?

Mylessandstone69

$NIO Another ode for NIO's loyal fans in Hong Kong and Singapore: Once more, for NIO's devoted followers, East and West, A narrative of green, a NYSE test. Hong Kong and Singapore, hear our appeal, It's time to excel, set NIO free. With 61,000 cars, a new record high, Yet varied outcomes make some allies hesitant. But insights shine for times to come, A future bright, no need to fear. William Li discusses market share, 40% and rising, In premium EVs, NIO stands proud, Now it's your chance to heed the call. From Shanghai's streets to Lion City, Demonstrate your power, be bold and tenacious. Let stock charts surge, let value ascend, For NIO's potential, there's much more. So trade with enthusiasm, let markets see, That NIO's ready, poised to grow. From East to West, united we stand, The future's electric, and NIO's grand.

werewere223

$BIDU China looks like a solid value. What am I overlooking? Can anyone recommend a podcast that delves into the Chinese macroeconomic landscape that I seem to be struggling with?

Tech Novice

Let's examine the potential impact of TSMC's new fabs in AZ, Germany, and Japan on NVDA. Some speculate that the fab in AZ, which is starting production, might contribute 4% of TSMC's workload and focus on gaming chips or automotive chips, but may not be capable of meeting NVDA's specific requirements. It's unclear if any of the 7 new TSMC fabs outside Taiwan will be able to manufacture the more advanced chips NVDA is producing. It's worth noting that TSMC's new fabs come with significant investments, such as the 65B dollars in AZ and 11B in Dresden, with subsidies making up half of the latter's cost. Additionally, there's a new plant opening in Japan. If TSMC were to double its production capacity, it could potentially boost its market cap to 4T, 5T, or even 6T in the next few years. However, this remains a hypothetical scenario, and actual outcomes will depend on various factors, including competition, demand, and technological advancements.

QuantumQuicksilver

11/21

$NIO Haha

Curious_Chef5826

$NIO Fingers crossed! We've been hugely let down by the price swings over the past three years.

SuperNewk

$NIO it's confirmed, there are virtually no shares available for shorts, and the borrowing rate is at an astonishingly high of over 30%+ The media, it seems, is being paid off to bash NIO and encourage retail sellers. Don’t sell for your life. A squeeze is imminent.