Consumer Discretionary

Report by Silk Road Research

This marked the seventh consecutive month of sequentially higher discounts and the second highest in 13 months. Domestic brand discounts increased for the first time in nine months, likely due to increased dealer efforts to boost sales for 1H22 as Covid restrictions eased. This is also consistent with SRR’s latest dealer checks that indicated OEMs were offering discounts alongside the auto purchase tax cuts announced in May. WM Motor, BMW and Nissan discounts rose most; Chery, Great Wall and BYD discounts moderated most.

Technology

Report by Entext

While Didi’s treatment may have shocked investors, China is attempting to achieve in cybersecurity/data privacy what it did in 5G by setting the global standard to gain a first mover advantage and dominate the market. Sean Maher believes this would ultimately be bullish for mainland tech and believes a China over US internet valuation mean reversion trade is becoming attractive. Sean also covers internet deglobalisation, Chinese companies listing abroad and how recent events will have huge repercussions for VC exit strategies.