Kaohoon Morning Brief – 7 September 2021

1) BMW expects chip shortage to continue til 2022

The shortage in semiconductors continued to damage the auto industry as BMW’s CEO revealed that the company expected  supply chains to remain tight well into 2022 and hoped that the shortage would end soon.

Last week, General Motors Co announced that the company will reduce production at most North American assembly plants this month due to the ongoing semiconductor chip shortage that has an impact on its profitable truck and sport utility vehicles.

 

2) China to be more open with foreign investors on its capital market

China will be more open on its capital markets to foreign investors and will advance practical cross-border cooperation to regulate foreign-listed Chinese companies. The move was seen as a wayout for Sino-U.S. tit for tat regarding listed-Chinese securities in the U.S. exchange that are expected to face more restrictions and measures.

 

3) Russia to raise policy rate on Friday

The Russian central bank is expected to raise policy rates by 50 basis points to 7% this Friday as the monetary tightening cycle will come to an end due to high consumer inflation that reached a five-year high.

 

4) China exports/imports in August expected to shrink

The market expected China exports data in August to grow at a slower rate of 18%, while imports to shrink to 25%. The trade surplus is forecasted to report at 51 billion dollars, decreasing from 56.58 billion dollars last month.