Today, the South China Morning Post reported that the US and China have agreed to a tentative truce to the trade war and are working on statements in this regard. The truce would delay tariffs on an additional $300 billion worth of Chinese goods entering the US.
Although the S&P 500 and other American indexes fell sizably yesterday on Powell’s less-dovish tone, China’s key indexes remained sideways today after opening lower and gaining in early trade. The Shanghai Composite Index dropped 0.2%, while the Shenzhen Component ended flat. The CSI300 Index lost 0.18%.
The six-day winning streak of the benchmark Shanghai Composite Index was broken today as the index fell 0.87% to close at 2,982.07. This was the longest winning streak in over a year for the index, which has gained 19.6% so far in 2019.
While Asian markets were mixed, China’s Shanghai Composite Index gained 0.21% to end on a positive note for five days in a row. However, the tech-heavy Shenzhen Component ended in the red today.
China’s benchmark Shanghai Composite Index is having a good week. The index rose 2.4% on June 20 to an eight-week high. The index rose in the first half of the day and reached the day’s high.
This week started with Trump threatening China with 25% tariffs on the remaining $300 billion in Chinese exports to the US. He said that the tariffs will come into effect if the deal is not reached by the G20 Summit in Japan at the end of this month.
Qunar Cayman Islands (QUNR) earns the highest revenue from flight reservations compared to other online travel industry majors such as Priceline (PCLN), Expedia (EXPE), and Ctrip.com (CTRP).
Qunar Cayman Islands (QUNR) is expected to report its fiscal 4Q15 earnings on March 21, 2016. Of the 12 analysts tracking Qunar, six analysts have a “buy” recommendation on the stock.
Ctrip (CTRP) has seen significant growth in both its top line and bottom line over the past few years. This is due to various strategic management decisions to keep the company ahead of its competitors.
Ctrip.com International is a leading online travel service provider in the Chinese mainland. Since its inception in 1999, the company has grown to become one of the best-known travel brands.
As of November 20, 2015, Ctrip’s (CTRP) forward PE ratio valuation stood at 87.53x. Rivals TripAdvisor (TRIP), Priceline (PCLN), and Expedia (EXPE) are valued at 38.64x, 19.49x, and 23.46x, respectively.
JAT Capital Management invests primarily in technology, media and telecom, travel, leisure, and gaming companies. In this series, we’ll take a detailed look at the fund’s top holdings in 1Q15.
