Baidu (BIDU US, 9888 HK) reported its third-quarter monetary effects before the opening of the US market. Baidu’s search business, similar to Google search, is based on ad profits, which account for 80% of Baidu Core’s profits, facing headwinds in the third quarter as online advertising for education disappeared, with limitations due to covid restrictions and home furnishings slowing home sales. Baidu has been investing the revenue from its studio business into new businesses like its cloud-based AI solution and Apollo These efforts are working well, as evidenced by the 76% that accrues in AI cloud profits. However, the trajectory is there.

During the earnings call, control said that covid control would have an effect in the fourth quarter, although it is positive about the scenario in 2021. Su profit forecast for the fourth quarter was quite broad, ranging between 2% and 12%. . The replacement percentage is year-over-year from the third quarter of 2021 to the third quarter of 2020. You will notice a significant disparity between GAAP and non-GAAP (adjusted) outcomes. GAAP regulations stipulate that investments such as Baidu’s stake in its iQiyi spin-off (IQ US) will have to be reduced. Adjusted/non-GAAP considers those losses not really a cash flow. For Baidu, GAAP demanded that they depreciate RMB 18. 9 billion because IQ’s stock was struggling. / non-GAAP values.

Asian stocks fell largely, with China outperforming, as did Shanghai 0. 44%, Shenzhen 1. 1% and STAR Board 1. 05%. The Biden-Xi virtual summit has gained little mention, the thaw in relations deserves to be noted as positive. The CNY, the Chinese renminbi, applauded the news gaining 022% against the US dollar at 6. 37.

Regardless, the clean tech ecosystem was able to shake off the negative sentiment generated by Elon Musk’s sale of Tesla shares. investors in Hong Kong, as the top stocks traded in China through price were players in the clean technology ecosystem, led in order through Tianqi Lithium 10%, Longi Green Energy 1. 46%, Jiangsu Akcome Science (sun) 10. 04%, Gangfeng Lithium 6. 62%, China Northern Earth Rare 5. 19%, BYD 1. 14% and CATL 1. 77%. Pretty amazing!

Commodities lost ground, with alcohol values led by Kweichow Moutai -0. 72% and Wuliangye Yibin -0. 23%. Foreign investors sold – $37 million in continental shares in the soft volumes of Northbound Stock Connect. The Hang Seng lost just -0. 25%, 1. 29% of Tencent. Internet shares minus Tencent were down while NetEase (9999 HK) -3. 6% was limited by profit-taking after the strong recovery from its strong effects in yesterday’s third quarter. online music business through an initial public offering in Hong Kong. UK investors have sold small shares of Hong Kong, adding Tencent, Meituan has been a small net purchase. Health had a smart day while real estate fell -1. 39%.

Evergrande’s bond maturing in April 2022 gained 0. 39% to $28. 57, while the June 2025 bond was down -0. 53% to $23. 91 following reports that the president would sell non-public assets as collateral. effort before winter, bringing the loss from the Peak of October 19 to -52%. I suspect the November Chinese IPP will melt in response.

China’s ADR Beigene (BGNE US, 6160 HK), indexed in the United States, with a market capitalization of $36 billion, announced its reinstatement to STAR’s list of directors. a Cayman Islands entity that owns Chinese assets.

Bilibili (BILI US, 9626 HK) reported its effects for the third quarter before the opening of the United States. Revenue expansion was strong, with year-on-year profit of 61% to 5,206 RMB ($808 million) thanks to a strong 110% recovery of advertising to RMB 1,172 billion ($181 million) and value-added facilities (premium subscription systems and streaming facilities) 95% to RMB 1,908B (296. 3 mm) while games grew only 9% to RMB 1,391. 7B (216 mm). This is the smart news. . . . . . . Operating expenses increased by 57% to RMB 2,896 million (449. 5 mm), resulting in a net loss of -RMB 2,686 million (416 mm). Historically, investors would have overlooked hyper-expansion stock losses, in the existing environment they are less lenient.

Baidu spin-off company iQIYI (IQ US) also reported this morning that it was a failure at all levels. Corporate video entertainment facilities have battled ByteDance and other competitors. More to come as we dig deeper.