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The U.S. Supreme Court upholds the TikTok "sell or ban" law.

US Stock Market Move | Swiss autonomous driving pilot commercial project launched, Wenyuan Zhixing (WRD.US) rose nearly 7%.

US Stock Market Move | The US Supreme Court upholds the TikTok ban, causing social media companies' stock prices to fluctuate.

Goodbye Biden! An overview of the performance of the US stock market under his administration.

As the 46th President of the United States, Joe Biden, is about to leave the White House, the U.S. stock market has ended his term with a strong performance. According to Dow Jones market data, since Biden took office on January 20, 2021, the S&P 500 index has risen by about 54%, the Dow Jones Industrial Average has increased by over 38%, and the tech-heavy Nasdaq Composite Index has surged by more than 43%. However, the gains of the S&P 500, Dow, and Nasdaq have not reached their recent highs. The Dow and Nasdaq have recorded their worst performance since George W. Bush's second term (2005-2009), while the S&P 500's increase is the lowest since Barack Obama's second term (2013-2017). Biden's presidency began in 2021 amidst the escalating COVID-19 pandemic and economic recession. However, as the global economy began to recover from the pandemic, the Fed continued its loose monetary policy implemented early in 2020, leading to double-digit gains in major stock indices by the end of 2021. But 2022 was a painful year for Wall Street. The Russia-Ukraine conflict erupted, and the U.S. economy faced the dual challenges of soaring inflation and rising interest rates, resulting in the worst stock market performance since the 2008-2009 financial crisis. It wasn't until 2023 and 2024, driven by the recovery of the tech industry and the AI boom, that the U.S. stock market returned to growth. The S&P 500 index achieved double-digit gains for two consecutive years and entered its third year of a bull market. David Russell, Head of Global Market Strategy at TradeStation, stated, "The economic restart after the COVID-19 pandemic, along with the 'Inflation Reduction Act' introduced by the Biden administration in 2022, provided strong support for industrial activities, indirectly leading to the high interest rates and bear market of 2022. However, the rise of AI is a completely different driving factor, a trend that had been brewing for years before early 2023." From the post-election period to Biden's departure, the performance of the stock market was affected by various factors. As Biden prepares to leave office, investors are hopeful that the Trump administration may further strengthen the economy and corporate development through tax cuts, relaxed financial regulations, and increased tariffs. However, these plans may lead to an expansion of the fiscal deficit and a rise in inflation, which could impact the government bond market and push up interest rates. After the election day, the stock market initially rallied significantly but later gave back some of those gains. As of January 16, the S&P 500 had only risen by 2.7% since election day, marking its worst performance during the same period since Obama's victory in 2008; the Dow rose by 2.2%, and the Nasdaq saw an increase of nearly 5%. In the future, the direction of the Federal Reserve's monetary policy remains a focus for investors. Despite recent modest performance of the Consumer Price Index (CPI), boosting both the stock and bond markets, the market still faces uncertainty as U.S. bond yields fluctuate. Experts generally believe that Trump's policies may push the market past its current consolidation phase, but also caution investors to be aware of potential risks. On the last trading day of Biden's term, the three major indices closed up, and U.S. bond yields fell, providing support to the stock market. Next week, Trump will be inaugurated again, and the market may see a new round of volatility.

US Stock Market Move | Electric vehicle stocks rise, NIO Inc. Sponsored ADR Class A (NIO.US) up over 6%.

On Friday, shares of new energy vehicles rose, as of the time of writing, NIO Inc. Sponsored ADR Class A (NIO.US) rose by over 6%, Li Auto, Inc. Sponsored ADR Class A (LI.US) and Tesla, Inc. (TSLA.US) rose by over 3%, Rivian Automotive (RIVN.US) rose by over 1.8%, and XPeng, Inc. ADR Sponsored Class A (XPEV.US) rose by over 1.4%.

CLARITY MEDICAL (01406): Two directors received several allegations.

CLARITY MEDICAL (01406) announces that two directors (receiving directors) recently received allegations from an anonymous director (anonymous source) regarding the company's executive team members (executives) including Mr. Jiang Bo (Chief Executive Officer, appointed as an executive director and CEO of the company since September 9, 2024) and Mr. Xu Yong (Joint Chief Executive Officer, appointed as an executive director of the company since June 30, 2022 (previously an independent non-executive director) and Joint Chief Executive Officer of the company since September 9, 2024). Subsequently, one of the receiving directors received various materials regarding the allegations from another anonymous source. Therefore, the company held a board meeting on December 30, 2024 (December 30 meeting) to allow the receiving directors to present the allegations. At the December 30 meeting, the receiving directors verbally outlined the alleged accusations and chose not to disclose the anonymous sources. In the absence of the executives, the receiving directors presented several related documents to the board. The summary of the allegations is as follows: Regarding the CEO, it is alleged that the CEO and Joint CEO attempted to replace the existing bank signatory of the company with the CEO and General Manager, but the replacement has not been implemented; it is alleged that they signed a consulting agreement with an entity allegedly connected to the CEO, which may constitute related party transactions, and transferred the company's interests and funds based on the consulting agreement. As of the date of this announcement, the company has paid a total of approximately HK$1.5 million under the consulting agreement, of which about HK$400,000 is related to a consulting agreement signed with the CEO after his appointment; it is alleged that the information regarding the CEO's relationship with certain shareholders of the company in the response letter sent to the HKEx on November 26, 2024 was incomplete and misleading; and it is alleged that the CEO was appointed as a director of a subsidiary of the company without board approval, effective from December 16, 2024. Depending on the findings of the special committee, the CEO will continue to serve as a director of the subsidiary. Regarding the Joint CEO, it is alleged that the CEO and Joint CEO attempted to replace the company's bank signatory with the CEO and General Manager, but the replacement has not been implemented; it is alleged that the information in the response letter sent to the HKEx on November 26, 2024 about the CEO's relationship with certain shareholders of the company was incomplete and misleading; and it is alleged that the Joint CEO was appointed as a director of a subsidiary of the company without board approval, effective from December 16, 2024. Depending on the findings of the special committee, the Joint CEO will continue to serve as a director of the subsidiary. In response to the allegations, the company was informed by the executives that they refute all the allegations and have provided a detailed written response, supporting evidence, and oral explanations to the board, questioning the motives behind the allegations. The executives also informed the company that the allegations are a result of their actions as the only two senior executives of the company, acting in the best interests of the company and diligently fulfilling their duties; they have always performed their duties in accordance with the company's usual practices since its listing on the HKEx; and any agreements entered into with the entities mentioned in the allegations have been properly authorized and entered into in the company's normal course of business. The response from the executives is collectively referred to as the "Executive Opinion." The CEO also informed the company of his opinion that since assuming his role as CEO of the company, the executives have made decisions that may not have been welcomed by certain long-term members of the board. These decisions include the executives refusing a request from a director to assist in legal proceedings that could potentially harm the company's interests. The receiving directors also informed the company that, according to the anonymous sources, some/all of the allegations have been reported to the police and the HKEx. As of the date of this announcement, the company has not received any notification from the police regarding any of the allegations, despite inquiries made by the HKEx. Considering the allegations, the board (including the executives) decided at the December 30 meeting to establish a Special Investigation Committee (Special Committee), initially composed of two independent non-executive directors, Ms. Zheng Yuling (as Chairman) and Mr. Wang Can, to investigate the allegations and report their findings and conclusions to the board. The Special Committee may also appoint professional advisors as necessary. In the interest of transparency and a fair review of the allegations, the executives voted in favor of the resolution to establish the Special Committee at the December 30 meeting. At the board meeting held on January 8, 2025 (January 8 meeting), the CEO questioned the necessity of establishing the Special Committee and its scope of work, but did not receive a response. To avoid any doubts, the board has not formed any opinion on the veracity, accuracy, and substance of the allegations or the Executive Opinion until the Special Committee presents its findings on the allegations. The executives have informed the company that they will provide further materials and documents to the Special Committee to support their investigation.

The U.S. Supreme Court upholds the TikTok "sell or ban" law.

The Supreme Court of the United States ruled on Friday that a controversial TikTok ban can take effect this weekend, rejecting an appeal from TikTok's parent company. The company argued that the ban infringed on the freedom of speech rights protected by the First Amendment. The Supreme Court made the decision in an unsigned opinion and did not record any dissents. The ban will take effect on Sunday, but many unresolved questions remain about how it will be implemented, as the U.S. government has never before banned mainstream social media platforms. The Supreme Court pointed out in its opinion that TikTok is a "unique and widely-used platform for expression, interaction, and community engagement" for 170 million American users. However, the court emphasized that the focus of Congress was on national security issues, which became the decisive factor in the ruling. This decision also shifts the focus to the incoming President, Donald Trump. As the deadline for the ban's implementation approaches, the current administration of President Biden has stated that the enforcement of the ban will be left to Trump, who will be inaugurated on Monday. Nevertheless, TikTok stated that if the ban takes effect, it may "shut down completely." An official from the Biden administration told the media on Thursday that the outgoing President plans to leave the enforcement of the ban to the Trump administration. "Our position on this issue is clear: TikTok should continue to operate under American ownership," the official said. "Given the timing of the ban coming into effect on Inauguration Day over a holiday weekend, how it will be carried out will depend on the next administration." TikTok's CEO, Zhang Yiming, is expected to attend the inauguration ceremony with other tech company CEOs, signaling a potential effort by the new President to save the app. Meanwhile, some members of Congress believe that TikTok may need more time to find a buyer, providing support for Trump to postpone the ban's effective date. Under the law, the President can extend the ban by 90 days, but triggering this extension requires evidence that the parties involved have made significant progress in negotiations, including a binding legal agreement. However, ByteDance, the parent company of TikTok, has not publicly updated its stance on not selling TikTok.

US Stock Market Move | Swiss autonomous driving pilot commercial project launched, Wenyuan Zhixing (WRD.US) rose nearly 7%.

On Friday, WeRide Technologies (WRD.US) rose nearly 7%, to $13.50. In terms of news, on January 14th, WeRide announced the official launch of a Swiss innovative autonomous driving pilot commercial project, which is initiated by the Swiss Canton of Zurich and Swiss Federal Railways (SBB) with funding, managed by Swiss Transit Laboratory (STL), and supported by WeRide. According to the plan, the project will gradually deploy dozens of autonomous driving vehicles in stages, including autonomous driving taxis (Robotaxi) and autonomous driving minibuses (Robobus). During the testing phase, two autonomous vehicles equipped with WeRide technology will be put into use. The first fleet of autonomous vehicles is expected to be officially operational in the second quarter of 2025, with up to four autonomous vehicles deployed, operating in fully unmanned mode for up to 5 years. By 2026, the fleet is expected to add another 8 autonomous vehicles, and will continue to expand further in the future.

US Stock Market Move | The US Supreme Court upholds the TikTok ban, causing social media companies' stock prices to fluctuate.

On Friday, the stock prices of social media companies were mixed. As of press time, Meta Platforms (META.US) was slightly up by 0.52% while Snap Inc (SNAP.US) dropped more than 1%. On the news front, the US Supreme Court rejected TikTok's challenge to US law, which would force the sale or ban the use of the app in the United States.

Guotai Junan (601211.SH) has received approval and approval from the China Securities Regulatory Commission for the stock swap absorption and merger of Haitong, as well as the accompanying fundraising matters.

Guotai Junan (601211.SH) announcement, the company plans to acquire and merge Haitong by issuing A shares to all A-share shareholders of Haitong and issuing H shares to all H-share shareholders of Haitong, and raise supporting funds by issuing A shares. On January 17, 2025, the China Securities Regulatory Commission issued the "Approval for Guotai Junan Securities Co., Ltd. to acquire and merge Haitong Securities Co., Ltd., raise supporting funds, approve the change of major shareholders and actual controllers of Guotai Junan Securities Co., Ltd., Haitong Fund Management Co., Ltd., and Fullgoal Fund Management Co., Ltd., and the actual controller of Hai Tong Futures Co., Ltd. Change of major shareholder".

US Stock Market Move | Morgan Stanley is optimistic about the AI potential of Tesla, Inc. Tesla, Inc. (TSLA.US) rose over 3%.

On Friday, Tesla, Inc. (TSLA.US) rose more than 3% to $429.19. On January 16th, Morgan Stanley released a detailed analysis report on Tesla, Inc., stating that as embodied AI enters the physical world, the key gap between reliable (local/nearshore) supply and broad component demand will become more prominent, attracting more attention from investors and policymakers. Tesla, Inc.'s role in filling the next generation manufacturing and supply chain gaps will be a key factor in driving its CKH HOLDINGS to increase shareholder value. Morgan Stanley stated that the market for embodied AI is much more than just humanoid forms like Siasun Robot & Automation. Broadly speaking, any machine with reasoning computational capabilities and a camera, capable of collecting visual data from the environment and navigating and manipulating objects in the physical world, falls under the category of embodied AI. These machines act as "sensors," providing data for Visual-Language Execution (VLA) base models, which in turn drive the development of AI through continual improvement of training (DGX) and simulation/digital twins/omniverse (OVX) technology. In this field, Tesla, Inc. has established a significant competitive advantage, with its Total Addressable Market (TAM) expected to further expand in the future.

US Stock Market Move | Semiconductor sector rises, NVIDIA Corporation (NVDA.US) is up more than 2.6%.

On Friday, the semiconductor sector rose, as of the time of writing, with American companies such as Advanced Micro Devices (AMD.US) and NVIDIA Corporation (NVDA.US) rising by more than 2.6%. ON Semiconductor Corporation (ON.US) and Marvell Technology, Inc. (MRVL.US) also rose by more than 2%, while Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) increased by more than 3.8%.

XIN YUAN ENT(01748): Zhuang Hanhong resigns as an independent non-executive director.

XIN YUAN ENT (01748) announcement - Mr. Zhuang Hanhong has resigned as an independent non-executive director and as a member of the company's audit committee, remuneration committee, and nomination committee in order to devote more time to personal and other business commitments, effective from January 17, 2025.

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