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Chinese ADRs Plunge, 'Black Friday' Inevitable?
Nasdaq Golden Dragon China Index plunges, A-share market affected
The recent U.S. stock market can be described as a mixed bag. On one hand, the three major U.S. stock indices have shown slight strength, while on the other hand, the Nasdaq Golden Dragon China Index has plummeted by 4%. This has left many investors bewildered, wondering what exactly is going on. Is it true that Chinese concept stocks are really that unviable?
Upon closer examination, it becomes clear that this plunge was primarily influenced by the sentiment of the A-share market's rise and subsequent retreat. Coupled with the strengthening of the U.S. dollar index, this led to a significant drop in the Chinese concept stock index. Consequently, the A-share market has also been affected, with many investors suffering substantial losses.
Broad-based funds attract capital, with funds flowing against the trend
However, despite this market condition, there are still considerable funds flowing against the trend. Over the past two trading days, the share count of the CSI A500 ETF has increased by nearly ten billion, with its scale growing from 20 billion yuan to 28.178 billion yuan. Such a massive influx of funds is indeed surprising.
The main reason for this is the result of central and state-owned enterprise market value management plans and policy promotion. Many investors are optimistic about the future market and are taking the opportunity to buy at lower prices. However, this operation is not without risks; if the market continues to decline, the losses could be significant.
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Breakthroughs in autonomous driving technology, Huawei's ADS 4.0 to be launched soon
Speaking of which, there have been notable breakthroughs in autonomous driving technology recently. The Ministry of Transport and the Ministry of Industry and Information Technology have indicated that they will promote the development of intelligent connected and autonomous driving technologies, expecting the autonomous driving industry to grow rapidly in the coming years.
Huawei has even announced that ADS 4.0 will be launched by 2025. This is a significant breakthrough, signifying that autonomous driving technology will enter a new phase. However, some are concerned about the potential for mass unemployment among drivers. After all, if autonomous driving technology truly matures, many driving positions may be replaced.
Azure stops OpenAI services, acceleration in the replacement by domestic large models
Azure has ceased its services with OpenAI, which is expected to accelerate the adoption of domestic large models as alternatives.When it comes to technology, the recent news that Azure has stopped offering OpenAI API services to individual developers has also caused quite a stir. Microsoft Azure announced the cessation of OpenAI services to individual users, which undoubtedly has a significant impact on many developers.
However, this has also spurred the acceleration of domestic large model alternatives. Domestic companies such as Alibaba, SenseTime, iFlytek, and Moonshot AI have increased their investments in hopes of filling this gap. But whether domestic large models can truly replace OpenAI is still an unknown. After all, OpenAI has accumulated a lot of experience and data in this field.
International gold prices hit a historical high, attracting investors in droves.
Lastly, it must be mentioned that international gold prices have set a historical record. On October 17, 2024, international gold prices broke through $2,685 per ounce, and domestic gold futures also continuously set historical highs. This has delighted many investors, who have increased their investment in gold.
However, the risk of chasing high prices is not small. If gold prices suddenly fall, the loss could be significant. Moreover, as a safe-haven asset, the long-term return on gold is actually not high. Therefore, investors should still operate cautiously and not blindly follow the trend.
In summary, the recent financial market can be described as turbulent. The plunge of the NASDAQ Golden Dragon China Index, broad-based fund absorption, breakthroughs in autonomous driving technology, Azure's cessation of OpenAI services, and the historical high of international gold prices - each event is worth our deep reflection. As ordinary investors, how should we find our opportunities in this complex market environment? This question, I'm afraid, requires everyone to think carefully.
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