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Luke

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  1. Luke

    China

    Picture of @RichardGibbons
  2. He occasionally wears a gold Rolex, but that's it. He couldnt care less about LV clothes, Gucci etc. If you are really wealthy than you shouldnt wear that stuff because it attracts attention you dont want!
  3. Luke

    China

    https://www.scmp.com/news/china/science/article/3280584/made-china-2035-will-it-topple-us-hi-tech-and-military-manufacturing-10-years?utm_medium=email&utm_source=cm&utm_campaign=enlz-today_international&utm_content=20241002&tpcc=enlz-today_international&UUID=6d0f8903-f8b8-4bf5-8477-621847965327&next_article_id=3280755&article_id_list=3280584,3280755,3280766,3280741,3280735,3280709,3280820,3280777&tc=4 China will overtake the United States in hi-tech and advanced military manufacturing within a decade, according to a prominent Chinese strategist. “Overall, the decline of the US manufacturing industry and its weakened competitiveness in the global market have become an irreversible trend,” said Lu Yongxiang, former vice-chairman of the National People’s Congress, in a commentary published in the Chinese Journal of Mechanical Engineering on September 9. Lu, who is also former president of the Chinese Academy of Sciences, is known for his foresight as a mechanical engineer, and has been influential in helping to shape the Chinese government’s long-term development strategies. He has also served as the director of the expert advisory board for the “Made in China 2025” programme under the State Council, China’s cabinet. While the US has maintained its lead in hi-tech and advanced military equipment production, its advantages are rapidly diminishing, according to Lu. “It is estimated that by 2035, ‘Made in China’ will surpass the United States and become the global leader,” Lu said in the article. Lu also predicted that China’s economy will be larger than America’s by that time. “The world will enter a new era,” he added. In 2010, China’s manufacturing output surpassed the US according to the Chinese government, which cited statistics from the World Bank. However, Chinese factories lagged significantly in terms of technology and product quality. In 2015, Beijing launched a 10-year plan to narrow the gap, and this plan is expected to be renewed every decade. However, “Made in China 2025” has since drawn significant responses from Washington and its allies. Both the Trump and Biden administrations have imposed measures such as trade tariffs, semiconductor export controls and “small yard, high fence” policies to restrain China’s development. Yet, according to an investigation by the South China Morning Post, most of the goals outlined in the “Made in China 2025” plan have already been achieved. Among them, the rise of high-end industries – such as shipbuilding, electric vehicles, drones, renewable energy, and industrial robots – has been much faster than expected, leaving behind competitors in the United States and other developed countries. Last year, Chinese shipyards secured orders to build more than 1,500 large ships worldwide, while only five orders went to the US. China contributed about one-third of the total global manufacturing output last year, roughly double that of the US. Still, China’s manufacturing sector lags behind the US in some advanced fields, especially in advanced weapons production, according to Lu. “Lockheed Martin’s pulse line in the United States maintains an annual assembly capacity of only 12 aircraft, but during wartime, relying on global supply chain collaboration, it can produce one aircraft every two days,” he wrote. China has now produced more than 200 J-20 stealth fighters, surpassing the number of F-22s made by the US, but far fewer than the more than 1,000 F-35s that have been made. China has produced only two operational aircraft carriers, while the US has 11. According to US media reports, some senior American military officers say that a war between China and the United States could break out as early as next year. China, meanwhile, is undergoing a painful economic transformation, with traditional industries such as real estate, retail and fossil fuel-powered car manufacturing shrinking, resulting in significant job losses. The average output measured by value of a Chinese worker is also significantly lower than the average American worker. “We must turn the crisis into opportunities,” Lu wrote. A long-term advantage of China’s manufacturing sector was in technological innovation, he said. “China’s research and development intensity has reached 2.64 per cent [of GDP], surpassing the average level of [European Union] countries,” he wrote. Advanced infrastructure also helps create an excellent environment for investment in manufacturing. “China not only ranks first in the world in terms of the length of high-speed rail and highways, but we also lead in the ultra-high-voltage transmission network. “Furthermore, China is also at the forefront in the construction of gigabit-level optical cables and 5G broadband wireless communication networks,” Lu said. “China not only possesses a vast pool of innovative human resources but also the world’s largest and rapidly growing domestic market for manufacturing. This makes China an irresistible attraction for global innovative talent and international capital.” Although the birth rate is declining, China’s quality of life has improved, which has also helped to increase the competitiveness of its manufacturing sectors. China’s average life expectancy is now 78.6 years, while the US sits at 77.5 years, according to government data. “A nationwide health and epidemic prevention network, a healthcare database, and advanced facilities for medical research and clinical medicine covering a population of 1.4 billion provide a solid scientific and technological basis for national health,” Lu said. The cause of the decline in US manufacturing lies in strategic misdirection, a lesson that Lu said was worth learning. “In the global division of the manufacturing industry chain, the United States has transferred labour-intensive, low value-added manufacturing to developing countries, while focusing on retaining hi-tech research and development and vigorously developing virtual economies such as stocks, securities and financial investments,” he wrote. “However, due to excessive financial bubbles, constant provocation of international conflicts, and intense partisan strife within the country, the US manufacturing industry is accelerating its shift from the real to the virtual economy. “The ageing of infrastructure in the United States, coupled with the declining attractiveness of manufacturing to the younger generation, has also accelerated the continuous decline of US manufacturing.” Both candidates in the US presidential race have made revitalising the manufacturing industry one of their top priorities. US Vice-President and Democratic candidate Kamala Harris said she would boost investment in hi-tech industries such as chips and aerospace. The Republican contender, former US president Donald Trump, promised radical measures to bring manufacturing jobs back to the country. During a campaign speech last Wednesday in Savannah, Georgia – a vehicle manufacturing hub and home to one of the country’s largest ports – Trump said a vote for him would result in a “mass exodus” of manufacturing from US allies South Korea and Germany, as well as economic rival China. “We will take other countries’ jobs. We’re going to take their factories,” he said.
  4. Life picture from China buyers at global stock exchanges the last few days:
  5. Luke

    China

    Highly efficient markets from 150 USD to 90 USD to 135 USD in 1 month, PDD
  6. Luke

    China

    A lot of the debt China owes is to themselves; they have SO much room to privatize their country if necessary to get even through the worst of the worst. On top, they are super self-sufficient with supply chains. This country won't go away any time soon, and it will take a few years until things normalize. Meanwhile, you get paid 10-15% a year to wait. LOL.
  7. Luke

    China

    With all due respect, please look at the valuations. The stocks are trading at single-digit multiples, below commodity stocks in the US. They are growing WITHIN the highest macro stress since quite some time in the Chinese economy while buying back more stock than many US peers, expanding internationally, running very clean and lean companies with no "meta product marketing influencers," management not paying themselves ridiculous amounts of bonuses and buying their own stock...do you really think China will collapse and not be able to recover? On which stocks are you bullish in that case, and what do you own because you can't protect yourself from that scenario with most stocks? It just doesn't make sense to be constantly pessimistic while valuations are so depressed. Not even guys like Tepper can convince people to buy Chinese stocks because the hate is so huge. Who is not getting horny here with that amount of hate? Nobody wants to touch it, not retail investors, not your mom and dad (they buy Nvidia or Intel, lol), not most hedge funds, not value investors, not deep-value investors...insane!
  8. Luke

    China

    Tepper is willing to go 25% into China on Pullback, folks! Maybe i get greedy tomorrow and open up my 3x KWEB position again xD
  9. yeah, i have read the write up on this one but i am not sure how much chinese will start to dislike us-food-franchises with the increasing nationalism. its what put me off here.
  10. I am betting on my three favourite horses, tencent/prx, pdd and hang lung group. I think if you like china retail you should skip everything and go straight to PDD. I dont want to own the real shitters like toy producer or other commodities, while they are cheap i dont think they are compounders for the longterm. If you like tech there is quite some but its very hard to understand, keep up to date and predict so the road for me leads only to tencent. If you like luxury then you will like hang lung. Please let me know if you have other good ideas, as always.
  11. Luke

    China

    Gotta respect Tepper!
  12. Luke

    China

    Best assets in China with Hang Lung Group IMO
  13. Luke

    China

    https://www.marketwatch.com/story/david-tepper-is-buying-everything-in-china-etfsfutureseverything-9ef11ac6 David Tepper is buying ‘everything’ in China: ‘ETFs…futures…everything’
  14. Yeah, always important to really protect the unexpected shitter drawdowns that might kill you if you borrow.
  15. Just imagine how fast the geopolitical tables can change! A LOT can happen in 5 years, and China still is super duper cheap.
  16. But also, I am young, so I can afford to be concentrated in things like China. It's a totally different game if you are 45 and have a family or 60 and are close to retiring. My account is worth above 100k, though, so it's not meaningless either.
  17. Own small stuff like Fairfax india, Oxy tracker, TSMC Honor shares never sell at Avg. Price  129.87 HUGE omission costs! (sold around 90 USD because i pref. china...and then bought back some tracker shares this february to have it in my acc...)
  18. Cost average: I have converted from my previous broker to IB 1.5 years ago so i dont have the precise average i have for FFH because i had to sell and buy back but it should be around 900-1000 CAD. Here copied from my IB: Prosus precise average: Avg. Price  28.790 PDD: Avg. Price  115.24 Hang lung: Avg. Price  8.64 HKD AMR: Avg. Price  225.05 USD WOSG: Avg. Price  400.78 GBP FFH: Avg. Price  1090.45 (after transition to IB, is lower than this)
  19. Cause i think they are that cheap that they will beat the interest i will pay on them of course
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