Finimize - 🇨🇳 China's making 2023 its year

Hi Reader, here's what you need to know for December 23rd in 3:14 minutes.

🎄 The turkey’s ordered, the festive cocktails are planned, and the in-laws have been warned against bringing up politics at the dinner table. There’s just one last to-do on our list: letting you know that we’re taking a few days off to soak up the holiday spirit. Okay fine, the mulled wine. Anyway, we’ll see you back here on December 29th.

Today's big stories

China’s making major plans to get its economy back on track, and the results could trickle through the whole world
Here are the tax smarts you need to get better investment returns – Read Now
Memory chipmaker Micron posted disappointing quarterly results, but it's hoping cost-cutting will turn it all around

Not-So-Grand Reopening

What’s Going On Here?

China pledged big plans to wake up its sleepy economy this week, but they’re not exactly going off without a hitch.

What Does This Mean?

China clung to its zero-Covid stance for the best part of three years, standing by mass testing and country-stalling lockdowns while the rest of the world got back to business. But in a bid to spur on its lethargic economy, the country’s finally relaxing its painstakingly strict rules. So far, not great: experts reckon China’s now grappling with the biggest outbreak the world has ever seen, with a million new infections and 5,000 deaths a day.

China’s policymakers have little choice but to optimistically pull together economy-stabilizing plans. They’re focusing on padding up the EV market, and fortifying the crackdown-stricken tech and property sectors. Sprinkle in spending-boosting interest rate cuts from the central bank, and that should lay the groundwork for China's economy to boom in 2023 – if the country can wriggle out of Covid’s grip, that is.

Why Should I Care?

For markets: Christmas miracles.
Those future-fueling plans will be music to investors’ ears, and they might explain why the Hang Seng China Enterprises index – which tracks some of China’s biggest companies – jumped 3% on Thursday. China’s even started playing ball when it comes to its US-listed firms: after a decade-long standoff, US regulators said last week that they’d been allowed to inspect the work of auditors in China for the first time ever. That’s big, and should save around 200 Chinese companies – including goliaths Alibaba and JD.com – from being delisted from US exchanges.

The bigger picture: Get the jets ready.
China plans to lighten up quarantine restrictions for overseas travelers next month, which should give its deflated tourism industry a short in the arm. And there’s plenty of joy to go around: hordes of would-be travelers have been stuck at home in China, but newfound freedom could get those high-spending holidaymakers hopping around the world again.

You might also like: With less to drag on China’s economy, here’s where to look for opportunities.

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Analyst Take

How To Invest Tax-Efficiently, In Four Easy Steps

By Theodora Lee Joseph, Analyst

Making your money work for you is only going to get tougher.

Capital is getting more expensive, and rate hikes are threatening to derail both stocks and bonds.

Still, wringing every drop out of your portfolio’s returns starts with investing tax-efficiently, and that becomes even more important as your income bracket scales higher.

The power of compounding means that even a 1% annual tax drag on your investments can have a massive impact on your returns by the time you retire.

So that’s today’s Insight: four tax-smart tips to get you better investment returns.

Read or listen to the Insight here

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Micro Micron

What’s Going On Here?

Micron posted shrinking stats in its quarterly results earlier this week.

What Does This Mean?

It’s hard to justify the latest tech upgrade when your household bills are pricey enough to rival a brand-new PlayStation 5. But when shoppers cut back on not-so-little luxuries like smartphones and PCs, it affects businesses all through the supply chain. Just look at Micron: the biggest US memory chipmaker could barely keep up with out-of-control demand last year, but those consumer cutbacks helped to almost halve its sales last quarter from the same time the year before. The firm even notched a quarterly loss four times bigger than already pessimistic analysts expected, so it’s pulling out all the stops to make the books better next year. Micron cut production by roughly 20% a few months back, and is now planning to trim its manufacturing investment further, cut its workforce by 10%, and squash any bonuses. Talk about festive joy.

Why Should I Care?

For markets: Alexa, play “Irreplaceable” by Beyoncé.
Micron has a problem: its chips are made to a set standard, meaning they can be easily switched with competitors’ products. So the firm will end up in trouble if its biggest rivals – including Samsung Electronics and SK Hynix – don’t follow its production-cutting lead to help bring the glut of chips across the industry in check. And if you think being replaceable sounds like a recipe for disaster, you might be right: that could well be why Micron’s shares have underperformed a key index of some of the world’s biggest chipmakers by around 12% this year.

The bigger picture: New year, no new jobs.
Micron does have some company in the firing room, mind you: Intel, Nvidia, and Qualcomm have all announced hiring freezes or layoffs of their own. Pair that with Big Tech’s recent workforce mega-cull, and the high likelihood that Western economies will face a recession next year, and the writing might be on the wall for 2023’s job market.

You might also like: This is what’s driving semiconductor stocks now.

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💬 Quote of the day

“Santa Claus has the right idea: visit people only once a year.”

– Victor Borge (a Danish-American comedian, conductor, and pianist)

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Finimize - 🇨🇳 China's making 2023 its year

Today's big stories

Not-So-Grand Reopening

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Invest Tax-Efficiently, In Four Easy Steps

Micro Micron

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Our community wants to know your name

🥳 Coming Up **– Gasp – Next Year..**.

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Finimize - 🇨🇳 China's making 2023 its year

Today's big stories

Not-So-Grand Reopening

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Invest Tax-Efficiently, In Four Easy Steps

Micro Micron

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Our community wants to know your name

🥳 Coming Up – *Gasp* – Next Year...

Older messages

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🥳 Coming Up **– Gasp – Next Year..**.