Pre-market trading in US stocks | Li Auto plunges 7%, leading the decline in Chinese concept stocks! Market focuses on Reddit's listing tonight

U.S. Stock News

1. Journalist's question: There are reports that the U.S. government is considering adding several Chinese chip companies to the sanctions list on the grounds of being "Huawei suppliers." Chinese Ministry of Commerce spokesperson, He Yadong, stated that China has always opposed politicizing and weaponizing economic, trade, and technological issues.

2. LI AUTO announced that due to lower-than-expected sales orders, the company now expects its vehicle delivery volume for the first quarter of 2024 to be between 76,000 and 78,000 vehicles. This outlook updates the company's previous delivery volume expectation of 100,000 to 103,000 vehicles.

3. "American version of Tieba" Reddit will debut on the NYSE tonight, with an IPO price set at $34 per share, at the upper limit of the target range of $31-34 per share, oversubscribed by 4-5 times, aiming to raise $748 million. Based on the issuance price of $34 per share and 22 million shares in circulation, the market value of the stock is $5.4 billion. Including stock options and restricted shares, the fully diluted valuation is close to $6.4 billion.

4. Former Alibaba Chairman and CEO, Daniel Zhang (Xiaoyaozi), will join Morning Fund as a managing partner with founder Liu Xiaodan, focusing on building core competencies in mergers and acquisitions. Sources close to BABA-SWR indicate that Zhang will remain a partner at BABA-SWR, but his main focus will be on the fund.

5. Didi Chuxing's China travel business (including ride-hailing, Xiaoju Carpool, Hitch, and taxis) plans to seek a daily order volume growth of no less than 10% in 2024, maintaining a daily average order volume of 33 million while also maintaining a 3.1% net profit margin, similar to the profit level disclosed in Didi's 2021 IPO prospectus.

6. Tencent unveiled its self-developed game AI engine GiiNEX at the 2024 Global Game Developers Conference (GDC).

7. At the Xiaomi Technology Park flagship store for cars, the Xiaomi SU7 has arrived, with internal staff being able to test drive it in advance, and external availability is under consideration.

Pre-market Movement

In pre-market trading, U.S. stock index futures are up, while the fear index is down.

Bitcoin is currently trading at $66,907, up nearly 6% in the past 24 hours; Ethereum is trading at $3,544, up nearly 10% in the past 24 hours.

Tech stocks and cryptocurrency concepts are generally up in pre-market trading, while Chinese concept stocks are mixed.

NVIDIA and AMD are up over 1% in pre-market trading, Tesla and Meta are up nearly 1%, and Apple is down over 1%.

Among Chinese concept stocks, Li Auto is down over 7%, Bilibili and Pinduoduo are down over 1%, BABA-SWR and JD.com are slightly down, NetEase is up over 2%, XPeng and Nio are slightly up Marathon Digital rose by over 1%, while Coinbase and Microstrategy rose by nearly 1%.

Strategy Review

1. KIMI Confirmed as a Hit! Domestic Large Language Model Officially Reaches GPT-4 Level

The market may believe that the iteration of overseas large models is slowing down, but Shenwan Hongyuan believes that model capabilities will continue to iterate rapidly by 2024. This includes catching up with model capabilities other than OpenAI, the release of open-source large models like Llama3, and the iteration of new models by OpenAI in the second half of the year.

The market may think that the capabilities of domestic large models are significantly lagging behind those overseas and cannot support any applications. However, Shenwan Hongyuan believes that models like KIMI have shown that the capabilities of domestic text large models have reached the level of GPT-4, and they look forward to the iteration of reasoning, mathematical, multimodal, and other capabilities in the future.

2. Powell Avoided an Issue, Market Interprets it as a Buy Signal

Some analysts point out that Powell avoided the question of whether the financial environment is too loose, and this attitude could actually lead to a further relaxation of the financial environment. Some data also indicate that the Federal Reserve's tolerance for high inflation will persist for a longer period