Chinese Stocks Extend Gains

Due to their recent strength, Chinese stocks have been a focus of our newsletter for the last few months. And today, that strength continued with hopes that a more relaxed Chinese regulatory environment is on the horizon. 🌤️

Sparking this continued optimism was news that Chinese officials approved an expanded capital plan from Ant Group. The China Banking and Insurance Regulatory Commission approved the company’s request to increase the amount of registered capital for its consumer unit from 8 billion to 18.5 billion yuan.

This is a sign of improvement for Ant Group, which saw its record-breaking IPO halted by regulators in late 2020. And if regulators let this behemoth up for air, maybe that’s a sign of a more favorable business environment. 🤷

Combine that with the country relaxing its covid-19 measures and supporting its real estate sector, and you’ve got investors pushing Chinese stocks to fresh recovery highs.

Alibaba led the charge, likely because it owns roughly a third of Ant Group. $BABA shares rose 13% on the day, while broader China ETFs like $MCHI rose nearly 6%. 📈

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Mega Bucks For Meta To Settle

$META just settled a lawsuit filed on behalf of roughly 250 – 280 million people. The suit claimed that Facebook shared the personal data of its users with third parties without their consent. 

The settlement amount is reported to be $725 million – the largest penalty for a data privacy class action in U.S. history. 

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Southwest Airlines In A Tailspin

$LUV investors are as happy today as the many thousands of people stuck in airports because of a historical wave of cancelations from Southwest Airlines. 🤬

Upwards of 70% of Southwest’s flights have been canceled, with reports on social media from flyers that many were told the cancelations would last through Friday. 

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The Banking Boogeyman

The banking sector remains the market’s key focus after a weekend of news. 👀

Friday, we gave a brief overview of the second-largest bank failure in the U.S. Today, we’ll build on that by explaining what happened over the weekend and how investors responded today.

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