After hours plunge in the US House of Representatives approval of the foreign company Accountability Act

 After hours plunge in the US House of Representatives approval of the foreign company Accountability Act

*Tesla was short by big short prototype and closed down nearly 3%

U.S. stocks rebounded after a low opening on Wednesday, with the latest employment data dampening market sentiment, and investors focused on the progress of congressional stimulus plan negotiations. By the end of the day, the Dow rose 59.87 points, or 0.20%, to 29883.79, the NASDAQ fell 0.05% to 12349.37, and the S & P 500 index rose 0.18% to 3669.01, a record high. Energy and financial sectors were the top gainers, up 3.2% and 1.1% respectively.

Market Overview

The epidemic has impacted on the U.S. employment market. Data show that the number of ADP employees increased by 307000 in November, significantly lower than the 410000 expected by the market, and the wage increase continued to slow down. This is the smallest increase since the employment recovery began in May, amid growing signs that the U.S. labor market is declining rapidly. The U.S. Department of labor will release its November non farm employment report today. The agency expects to add 440000 jobs this month, and the unemployment rate will drop to 6.7% from 6.9% in October.

This week, the U.S. Congress launched a new round of negotiations on the rescue plan, with House Speaker Nancy Pelosi and Treasury Secretary manu munchin discussing the measures by phone for the first time after the election.

Pelosi and Senate minority leader Schumer said in a joint statement on Wednesday that the bipartisan bill released on Tuesday should be used as a basis for negotiations.. Under the bipartisan relief program, businesses will receive about $300 billion in similar salary guarantee programs, and state and local governments will receive $240 billion, including funds for schools. Another $180 billion will be used to extend an additional $300 a week for four months.

Although the epidemic situation has not been completely controlled, the breakthrough in vaccine research and development still made us stocks set a number of records in November. Eric barthalon, global head of Allianz capital markets research, said sentiment was generally optimistic and investors had received news that the vaccine would be launched earlier than expected. Tobias levkovich, Citis chief U.S. equity strategist, was relatively cautious, noting that the good news from the vaccine further boosted sentiment. But investors may be complacent about the risks still facing the market.

Pfizer rose 3.5%, and the UK government has accepted the recommendation of the drug and medical products regulatory authority to approve the use of Pfizers and Germanys biontechs new crown vaccines.

Moderna rose 1.4%, and the first vaccine of Moderna will be delivered on December 22, with 18 million doses expected to be produced in December.

The company has agreed to buy slackforce technologies for $278 million.

In terms of China General stocks, pinduoduo rose 5.5%, Alibaba fell 1.0%, Jingdong fell 1.1%, Ctrip fell 3.7%. The new forces of car making were up and down, with Xiaopeng motor up 7.0%, Weilai auto up 5.8%, and ideal car down 0.3%.

The U.S. House of Representatives voted through the holding foreign companies accounting act on Wednesday, which requires foreign issuers who fail to meet the requirements of the public company accounting oversight board (PCAOB) for three consecutive years to prohibit their securities from trading in the United States. The bill was passed in the US Senate in May this year. Affected by this, some popular stocks, such as pinduoduo, Weilai automobile and so on, dived after hours.

According to peoples daily, at a regular press conference held by the foreign ministry on the 2nd, a reporter asked: it is reported that the US House of Representatives may pass a bill on restricting Chinese companies to list in the United States this week. Whats your comment? Foreign Ministry spokesman Hua Chunying replied: I think the question you just mentioned once again shows that the United States has adopted a discriminatory policy against Chinese companies, which is a political crackdown on Chinese enterprises. As for the specific question you mentioned that the US House of Representatives is going to vote on the Accountability Act of foreign companies, you can ask the competent authorities. I can stress with you again in principle that in todays highly globalized capital market, the right way to solve the problem is to strengthen cross-border regulatory cooperation and strengthen dialogue and cooperation on issues such as protecting the legitimate rights and interests of investors. We firmly oppose the politicization of securities regulation. We hope that the US side can provide a fair and just environment for foreign enterprises to invest and operate in the United States, instead of trying to set up barriers at all levels.

Tesla is short

Global auto (excluding Tesla) sales of $2.3 trillion, EBIT of $100 billion, and a total market value of $807 billion, Bree said, citing data. Tesla has $25 billion in sales, no EBIT, but a market capitalization of $438 billion. In addition, the market sales rate of the global automobile industry is 0.35 times, and Tesla has reached 18 times.

This is Brees second challenge to Tesla after more than two months. At that time, he mentioned that Tesla needs to sell regulatory points to make profits. With the gradual expiration of the tax credit policy, Teslas sales growth is sluggish. Based on the previous market sentiment, such investment is not wise. Maybe everyone is wrong.

It is worth mentioning that musk himself is also worried about Teslas unstable profits. In a letter to employees on Tuesday, he warned that costs must be controlled to maintain the companys profits. Investors have put a lot of trust in our future profitability, and if we dont do well, Tesla shares will collapse immediately. The letter said.

Other markets

International oil prices rebounded on Wednesday as investors focused on OPECs negotiations to postpone production cuts. WTIs recent month contract closed at US $45.28/barrel, up 1.6%, while Brent crude oil contract closed at $48.36/barrel, up 2.0%.

The Comex gold contract rose $11.30, or 0.6%, to $1830.20 an ounce, a new high since November 23 due to the weakening of the US dollar.

European stock markets were mixed, with the pan European Stoxx 600 index down 0.05% to 391.69, the FTSE 100 index up 1.23% to 6463.39, Germanys DAX30 index down 0.52% to 13313.24, and Frances CAC40 index up 0.03% to 5583.01.

GBP / USD fell 0.4% after EU chief brexit judge Barnier told the EU special envoy that the two sides still have differences on the three main issues of trade negotiations and the agreement is still pending.

The US House of Representatives has passed the foreign company Accountability Act, targeting Chinese enterprises?

On Wednesday, the U.S. House of Representatives (AOB) of the U.S. House of Representatives (AOB) can not meet the requirements of the U.S. House of Representatives (AOB) for three consecutive years to prohibit foreign accounting firms from voting. The bill was passed in the US Senate in May this year.

The bill is widely supported by Republicans and Democrats. It has been expected that the U.S. House of representatives will pass legislation this week. Reuters reported that the legislation may prevent some Chinese companies from listing on U.S. exchanges unless the companies comply with U.S. auditing standards.

The foreign senators act was held accountable by the Republican senators actuff08 JohnN.Kennedy uff09And Democratic Senator Chris Van Hollen. The bill, which was voted unanimously in the Senate in May, will be sent to President Donald Trump to sign legislation into effect after it is passed by the house of Representatives.

Later, the White House also said that President Donald Trump was expected to sign a bill that could prevent some Chinese companies from listing on U.S. exchanges unless they comply with U.S. auditing standards.

The securities and Exchange Commission (SEC) is pushing ahead with a plan that could lead to the delisting of some Chinese companies listed in the United States, according to a report on November 17 by the securities and Exchange Commission. According to people familiar with the matter, the US Securities Regulatory Commission will recommend that the exchange be responsible for requiring Chinese companies to comply with the audit verification in the United States, or prohibit listing or request delisting.

In August this year, the U.S. Treasury released the report of the U.S. presidents financial market working group on protecting U.S. investors against major risks of Chinese companies on its official website. In view of the jurisdictions that the U.S. public company accounting oversight board (PCAOB), including China, is unable to carry out inspection, it is suggested that the listing threshold of companies from these jurisdictions should be raised, the information disclosure requirements should be strengthened and strengthened It also requires the listed companies in the United States to meet the relevant requirements of PCAOB for inspection no later than January 1, 2022. Since then, officials of the Commission have been acting quickly and the restrictions could come into effect as early as 2022, a source who asked not to be named told the agency.

The US House of Representatives passed the foreign company Accountability Act_ NF4368