Tenet Fintech Group Inc. (CSE: PKK, OTC Pink: PKKFF)
Commercial Lending in China Ready to Tenet!
Wedbush Securities predicts the tech sector will benefit from a slow thaw in the frosty relations between the U.S. and China.
While the firm thinks the long-standing issues around piracy and IP theft are not going away and will be negotiated, ratcheted-down tension between the U.S. and China could be a bullish sign for the likes of Apple (NASDAQ:AAPL), Cisco (NASDAQ:CSCO), and semi names like Taiwan Semiconductors Manufacturing Company (NYSE:TSM), Nvidia (NASDAQ:NVDA),NXP Semiconductors (NASDAQ:NXPI), Analog Devices (NASDAQ:ADI) and Western Digital (NASDAQ:WDC).
Analyst Dan Ives: “We believe much of the risk to semis is behind chip suppliers as companies like TSMC and WDC have pulled Huawei out of their forward estimates. We don’t necessarily expect a Biden administration to quickly back away from current policy (e.g. restrictions on Huawei/SMIC/etc.), but we also deem it less likely that we will wake up one morning to suddenly find an additional set of policy restrictions aimed at another leading Chinese tech company. We do see some possibility that restrictions are eventually loosened with regards to SMIC, Huawei, etc., a result that could create winners (semicap equipment, substrate, wafers, certain component suppliers) while pressuring players who have benefitted from share shift away from China’s Champions.”
The iShares PHLX SOX Semiconductor Sector Index ETF (NASDAQ:SOXX) and VanEck Vectors Semiconductor ETF (NASDAQ:SMH) are a couple of catch-all funds for the $39B semiconductor market.
The Trump administration has notified Huawei suppliers, including chipmaker Intel (NASDAQ:INTC), that it is revoking certain licenses to sell to the telecom equipment supplier, sources told Reuters. The administration also intends to reject dozens of other applications to supply the Chinese company, escalating tensions with Beijing during its final days in office.
Backdrop: The U.S. put Huawei on a Commerce Department “entity list” in May 2019, restricting suppliers from selling American goods and technology to the firm. Some sales like semiconducters required licenses as Washington intensified its crackdown on the company, which it labeled a national security threat.
The latest action is likely to be the last against Huawei under President Trump, with Joe Biden taking the oath of office on Wednesday. It will also play out in the early days of the Biden administration (unless he decides to cancel the order).
Companies that received the “intent to deny” notices about supplying Huawei have 20 days to respond, and the Commerce Department has 45 days to advise them of any change in a decision or it becomes final. Companies would then have another 45 days to appeal.
Last week, the Trump administration added smartphone maker Xiaomi to a blacklist of alleged Chinese military companies, restricting American investors from buying the company’s shares or related securities.
Making more progress on the self-driving car front, XPeng (NYSE:XPEV) has unveiled a beta version of its Navigation Guided Pilot, or NGP, for highway driving.
The new autonomous feature will allow the company’s flagship P7 sedan to automatically change lanes, speed up or slow down, overtake cars and enter and exit highways.
When NGP is ready for full launch, it will be included in the company’s XPILOT 3.0, an autonomous-driving system due to hit the market in 2021. XPILOT 2.5, with features like adaptive cruise control and parking assistance, is currently being sold on XPeng EVs.
XPeng has a big tech edge over Chinese peers, Bank of America wrote in a recent research note, which highlighted the automaker’s autonomous driving edge.
