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January 5th - As of midday closing, the Hang Seng Index fell 0.08%, and the Hang Seng Tech Index fell 0.18%. On the sector front, oil stocks, auto stocks, commercial aerospace stocks, and gaming software stocks led the declines, while short video concept stocks, pharmaceutical outsourcing concept stocks, brain-computer interface concept stocks, and mainland property stocks led the gains. NIO (09866.HK) fell over 5%, Great Wall Motor (02333.HK), XPeng Motors (09868.HK), and PetroChina (00857.HK) fell over 4%, CNOOC (00883.HK) fell over 3%, and Sinopec (00386.HK) fell over 1%. Nanjing Panda Electronics (00553.HK) surged nearly 45%, Joinn Laboratories (06127.HK) rose over 11%, and Kuaishou (01024.HK) and Shimao Group (00813.HK) rose over 9%.On January 5th, Daiwa Securities issued a report stating that Mixue Group (02097.HK) is facing a potential downward valuation reassessment due to slowing future profit growth, and its second growth engine has not yet been validated. The bank downgraded its investment rating from "Outperform" to "Hold" and lowered its valuation basis from a projected P/E ratio of 28x to 22x, with the target price reduced from HK$535 to HK$427. The bank believes that Mixues current valuation of 21x (equivalent to a projected P/E ratio for this year) is high, compared to 15-19x for mainland catering peers, and its forecast of a 15% CAGR for Mixues earnings from 2025 to 2027. The report stated that after the subsidy boom, Mixues same-store sales growth has remained resilient, and its branch network expansion may provide some support, but the bank believes the market may have overly high expectations for a second growth engine.Nomura Securities raised its target price for Baidu (BIDU.O) from $140 to $178.On January 5th, Vasu Menon, Managing Director of Investment Strategy at OCBC Bank in Singapore, stated that despite Trumps promise of US corporate support for revitalizing Venezuelan oil production, restarting operations will require a considerable amount of time and capital investment before full capacity can be restored. Amidst ongoing political turmoil, supply disruptions could slightly push up oil prices in the short term. However, given that Venezuela is not currently a major oil producer, its impact is likely to be limited. OPECs production decisions also help stabilize oil prices. "Overall, after a year of significant geopolitical events in 2025, the market now appears less vulnerable to geopolitical risks. Short-term contingencies may trigger some tensions, but as seen last year, their impact may be short-lived."On January 5th, Tai Hui, Chief Market Strategist for Asia Pacific at JPMorgan Asset Management, believes there are two reasons why the market has not reacted strongly to the US takeover of Venezuela. First, Venezuelas oil production accounts for a very small percentage of global output (approximately 1%). Years of underinvestment mean it cannot quickly increase production and contribute to global supply in the short term. With Trump announcing that the US will "take over" Venezuela in the short term, the future of the new regime remains unclear. The impact on global markets will at most be reflected in the energy market. Of course, this event has broader geopolitical implications, but "in my view, financial markets are not efficient at accurately pricing this type of risk."

Plastic Consumption Is Projected to Nearly Double by 2050, According to Studies

Haiden Holmes

Feb 27, 2023 14:08

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According to research published on Monday, plastic consumption in G20 nations is on track to nearly double by the middle of the 21st century unless a comprehensive and legally binding global treaty to reduce consumption is drafted.


According to Back to Blue, a research group operated by the Economist Impact think-tank and the Nippon Foundation, existing initiatives to increase recycling or reduce single-use plastic consumption have "barely scratched the surface" and a more comprehensive global plan is required.


In Uruguay, the United Nations began negotiations on an agreement to combat plastic pollution in November, with the goal of drafting a legally binding treaty by the end of the following year. 175 countries have joined up for the negotiations.


Nonetheless, if negotiations fail, annual plastic production in G20 nations could reach 451 million tonnes by 2050 based on current development rates, according to Back to Blue - an increase of nearly 75 percent from 2019.


The research group stated, "There should be no illusions that the treaty negotiations will be anything but difficult and treacherous." "The likelihood of failure is high, both in terms of no treaty emerging and a treaty that is insufficient to reverse the plastic tide."


It called for a stricter ban on single-use plastic, as well as increased production taxes and mandatory programs to hold companies accountable for the entire lifecycle of their products, including recycling and disposal.


Back to Blue stated that the combined measures could limit annual consumption to 325 million tonnes by 2050, but that would still be a 25 percent increase from 2019 and the equivalent of 238 million garbage vehicles.


Brazil, the United States, Indonesia, and Turkey are among the G20 countries that have yet to introduce national prohibitions on single-use plastic products, according to the report.