Amid escalating tensions between China and the U.S., China announces a ban on the export of certain rare-earth processing technologies. There are also considerations to ban exports of rare-earth magnets in response to the threat of further U.S. tariffs on China’s electric vehicles (EVs) and solar products.
Online Gaming Stocks Plunge:
Chinese online gaming stocks face a significant decline, with Tencent shares dropping over 16%, Netease over 28%, and Nexon over 10%. This downturn follows the announcement of tougher online gaming restrictions by Chinese regulators.
Hang Seng Tech Index Falls:
The Hang Seng Tech Index experiences a 4% drop to 3,561, reflecting the broader challenges faced by the technology sector in the region.
Tesla’s Megapack Factory Launch:
Tesla officially launches its new Megapack battery factory in Shanghai, marking a significant development for the electric vehicle manufacturer in the Chinese market.
China’s Ministry of State Security Focuses on Economic Stability:
China’s Ministry of State Security is charged with preventing “subversion, terrorism, secession, and espionage” in 2024, with a specific emphasis on suppressing any negative criticism of China’s economy.
Market Movements and Economic Data:
The Japanese BOJ Minutes note that the inflation target is “not in sight yet with certainty.”
Australia’s November Private Sector Credit shows a month-on-month increase of 0.4% and a year-on-year figure of 4.7%.
China’s large banks cut interest rates for the fourth time this year, with analysts suggesting room for further cuts.