Hedge funds put on Chinese recovery

Yesterday, Tesla’s share price increased another 3.3% despite the fact that Elon Musk sold the company’s stocks worth $973 million on Tuesday while continuing to cut his stake for the seventh consecutive trading session. He sold Tesla securities for a total of $6.9 billion last week and $930 million on Monday.

Lucid Group Inc. has gained more than $17 billion in capitalization in recent days, surpassing Ford Motor Co. and General Motors Co. EV stock is rising amid a strong investor interest. The electric car industry is one of the most promising for the next few years.

The American Petroleum Institute reported that crude inventories increased by 655,000 barrels last week. The increase in supply is driving down oil prices, but demand is still substantially higher than supply. The White House has asked some of the largest oil consuming countries (China, Japan, India) to consider releasing some of their oil inventories to lower prices and stimulate economic recovery. Oil prices around the world hit seven-year highs late last month.

Major Asian stock indices are trading negative today. In the absence of positive momentum from Wall Street and a relatively calm day in terms of economic data, the mood of investors in the region was subdued. The Japanese index decreased by 0.3%, the Chinese benchmark index CSI 300 decreased by 0.99%, and Hong Kong’s Hang Seng lost 1.42%. The only exception is the Australian ASX 200, which is in positive territory +0.13%.

A week ago, Bridgewater Associates, LP, managed by personalities, including Ray Dalio (founder of the fund), Bob Prince, and Greg Jensen, released its Q3 2021 report. The fund significantly increased its stakes in large Chinese companies, including BABA, HTHT, CD, XPEV, YUMC, BIDU, DIDI, and others. Goldman Sachs analysts also put on the recovery of Chinese companies.