Good news suddenly came from China and the United States.
According to the news released by the US Embassy in China on the 2nd, the US Department of Agriculture will lead 17 exhibitors to participate in the 6th China International Import Expo, with the largest scale in history. According to the US Embassy in China and the head of the American Soybean Export Association, this is also the first time that the US federal government has officially participated in the CIIE and established an exhibition. It is worth mentioning that China is the largest export destination for agricultural products in the United States. In 2022, the trade volume of agricultural products between China and the United States exceeded the $50 billion mark, and the export of agricultural products from the United States to China reached a record high of $42 billion.
In addition, according to @ Yuyuan Tan Tian: On November 3rd, China and the United States held the first round of ocean affairs consultations in Beijing, jointly chaired by Hong Liang, Director of the Border and Seas Department of the Chinese Ministry of Foreign Affairs, and Lan Moke, Coordinator of the China Affairs Office of the United States State Department.
At the market level, South Korean giant Samsung is about to face a major sell-off. According to the latest report by Bloomberg, according to regulatory documents, the heirs of the deceased former chairman of Samsung Group, Li Jianxi, plan to sell Samsung Electronics shares worth approximately $1.57 billion (approximately RMB 11.5 billion) to pay inheritance tax.
Currently, investors' expectations for the end of the Federal Reserve's interest rate hike cycle are becoming increasingly strong. Capital Group, a US asset management giant, recently stated that the Fed's latest measures have created "opportunities for investors to buy global stocks". It is reported that the asset size managed by Capital Group is as high as $2.3 trillion (approximately RMB 16.8 trillion).
The sudden spread of positive news between China and the United States
The 6th China International Import Expo is scheduled to be held in Shanghai from November 5th to 10th. According to the news released by the US Embassy in China on the 2nd, the US Department of Agriculture will lead 17 exhibitors to participate in this year's CIIE, with the largest scale in history.
According to the US Embassy in China and the head of the American Soybean Export Association on the 2nd, the US Department of Agriculture will establish the US Food and Agriculture Pavilion at this year's CIIE, with a booth area of over 440 square meters. It will lead 17 exhibitors including local state governments, associations, exporters, food processing and packaging in the United States to participate. The scale of the delegation is the largest in history, and it is also the first time that the US federal government has participated in the CIIE and set up an exhibition under its official name.
It is worth mentioning that China is the largest export destination for agricultural products from the United States. China's imports of agricultural products from the United States have been increasing for four consecutive years. In 2022, the trade volume of agricultural products between China and the United States exceeded the $50 billion mark, and the export of agricultural products from the United States to China reached a record high of $42 billion.
Su Jian, CEO of the American Soybean Export Association, who is about to participate in the CIIE again, said that the United States is the world's second largest soybean exporter, and the US soybean industry is willing to continue actively serving China and the global market.
In addition, Su Jian also pointed out that although the domestic demand for using soybeans to produce biodiesel in the United States is increasing year by year, the export volume of American soybeans will remain stable, and it is expected that there will be no significant fluctuations in international soybean futures prices under favorable weather conditions.
It can be confirmed that for the US soybean industry, this is the largest delegation we have participated in the CIIE, "Su Jian said
In addition, representatives from industry organizations such as the US Meat Export Association, the US Poultry and Egg Export Association, and the US Cranberry Market Association will also join the US delegation to China to participate in the CIIE. The Poultry and Egg Export Association of the United States recently announced that this is the first time the US government has officially encouraged relevant institutions in the US agricultural sector to participate in the exhibition.
Previously, Vice Minister of Commerce of China, Sheng Qiuping, stated that the 6th China International Import and Export Fair is expected to welcome guests from 154 countries, regions, and international organizations. More than 3400 exhibitors and 394000 professional visitors have registered and registered, fully returning to pre pandemic levels. More than a hundred global headquarters executives from Fortune Global 500 and industry leading enterprises have confirmed their participation in the CIIE in China, reaching a new high in scale.
Sudden sell-off
On November 3rd, Bloomberg reported that according to regulatory documents, the heirs of the deceased former chairman of Samsung Group, Li Jianxi, plan to sell shares of Samsung Electronics worth approximately $1.57 billion (approximately RMB 11.5 billion) to pay estate tax.
According to the report, Li Jianxi's widow Hong Luoxi has signed a trust agreement with Hana Bank to dispose of approximately 19.3 million shares of Samsung Electronics, accounting for 0.32%; Li Jianxi's daughters Li Fuzhen and Li Xuxian have also signed similar trust agreements with Hana Bank, selling 2.4 million and 8.1 million shares respectively.
According to Friday's closing price of 69600 Korean won, the total value of the above-mentioned shares is approximately 2.08 trillion Korean won, and the trust agreement has an agreed period from October 31 to April 30 next year.
In addition, Li Fuzhen also signed a trust agreement with Hana Bank to sell 1.5 million shares of Samsung SDS, accounting for 1.95%, with a value of approximately 207.8 billion Korean won, before April 30 next year.
It is reported that the maximum tax rate for inheritance tax in South Korea is 50%, and for the actual controllers of large enterprises, the tax rate will be as high as 60%.
According to a previous report by the South Korean newspaper "Chosun Ilbo", after Lee Kun hee's death, he left a legacy worth 22 trillion won through stocks, art, real estate, and other means. His wife and children are required to pay approximately 13 trillion Korean won in inheritance tax in order to inherit the estate. Even if the tax is paid through a 6-year installment payment, the "controlling members" of Samsung Group must pay a inheritance tax of 2 trillion Korean won this year.
Looking back at Li Jianxi's 27 years at the helm of Samsung, the total market value of the Samsung Group jumped from 900 billion won to 318.76 trillion won in 2014. Samsung has also developed from a small-scale trading company to a global technology giant, with its subsidiaries covering multiple fields such as mobile phones, chips, appliances, biology, and insurance.
At present, Samsung holds a dominant position in the entire business landscape of South Korea, with a huge influence. Samsung's overall revenue is equivalent to one-fifth of South Korea's gross domestic product, which is crucial for the economic health of South Korea.
In October 2022, Li Zairong, then the Vice President of Samsung Electronics and the actual person in charge of Samsung Group, was appointed as the President of Samsung Electronics.
Analysts have pointed out that once the "controlling members" of Samsung Group reduce their holdings too much, it may attract attacks from foreign speculative capital, which may endanger the control of Samsung Electronics, Samsung Life, and Samsung Property, the core enterprises of Samsung Group.
Therefore, the huge estate tax may complicate the Li family's control over Samsung Group.
The latest voice of the giant
Capital Group, a US asset management giant, has recently stated that the Federal Reserve's move to hold interest rates this week and imply the end of the tightening cycle has created an "opportunity for investors to buy global stocks".
Andy Budden, the head of equity investment at Capital Group, said at a briefing in Singapore, "The truly important information for investors is that the timing of the Fed's rate hike peaking may have opened a window for investors, which will be a very good investment opportunity
It is reported that the asset size managed by Capital Group is as high as $2.3 trillion (approximately RMB 16.8 trillion).
As market expectations for the end of the Federal Reserve's interest rate hike cycle intensify, Winnie Kwan, a portfolio manager at Capital Group, stated at the same briefing that the company is now advising clients to 'take action'.
She pointed out that at the peak of interest rates, the differentiation between asset classes, especially between cash fixed income and stocks, is most significant.
Capital Group has reviewed the past four rounds of tightening cycles by the Federal Reserve, and data shows that within the 12 months of the Fed's last rate hike, the average return on global stock markets in US dollars was 12%. In contrast, global bond returns are around 6%, while cash returns are 4%.
Kwan added that companies with high growth performance have been "excessively punished" by interest rate hikes this year, and such companies will be potential investment opportunities in the future.
But other well-known Wall Street figures seem less optimistic. Among them, Michael Wilson, Chief Strategist for US stocks at Morgan Stanley, warned against investing in the US stock market as market breadth narrows and consumer and corporate confidence continues to weaken.
JPMorgan Chase strategist Marko Kolanovic also warned that the performance expectations of US companies are disconnected from the risks brought by the tightening financial environment, and US stocks may further decline.