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Jianpu Technology Inc. NYSE: JT Outperforms

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Jianpu Technology Inc. (

Jianpu Technology Inc. (“Jianpu,” or the “Company”) (NYSE: JT), a leading independent open platform for the discovery and recommendation of financial products in China, today announced its unaudited financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Operational and Financial Highlights:

  • Total revenues from recommendation services for the third quarter of 2022 increased by 30.3% to RMB211.6 million (US$29.7 million) from RMB162.4 million in the same period of 2021, primarily driven by the increases in credit card volume and the number of domestic loan applications, as well as the increase in average fee per domestic loan application. The credit card volume and number of domestic loan applications for recommendation services increased by 6.5% to approximately 1.1 million and 18.5% to approximately 5.0 million, respectively, in the third quarter of 2022 compared with the same period of 2021.
  • Revenues from big data and system-based risk management services decreased by 18.8% to RMB25.0 million (US$3.5 million) in the third quarter of 2022 from RMB30.8 million in the same period of 2021. The decrease was mainly attributable to a decrease in the number of paying customers related to the impact of COVID-19 on the Company’s cooperation with customers and product adjustments.
  • Revenues from advertising and marketing services and other services increased by 66.0% to RMB32.2 million (US$4.5 million) in the third quarter of 2022 from RMB19.4 million in the same period of 2021. The increase was mainly attributable to the growth of insurance brokerage services and other new business initiatives.
  • Loss from operations was RMB31.9 million (US$4.5 million) in the third quarter of 2022, compared with RMB60.6 million in the same period of 2021. Operating loss margin was 11.9% in the third quarter of 2022, compared with 28.5% in the same period of 2021. The improvement in loss from operations was mainly attributable to an increase in revenues and a decrease in operating expenses resulting from efficiency improvement and cost optimization.
  • Net loss was RMB25.1 million (US$3.5 million) in the third quarter of 2022, compared with RMB60.0 million in the same period of 2021. Net loss margin was 9.3% in the third quarter of 2022, compared with 28.2% in the same period of 2021.
  • Non-GAAP adjusted net loss[1] was RMB9.4 million (US$1.3 million) in the third quarter of 2022, compared with Non-GAAP adjusted net loss[1] of RMB50.8 million in the same period of 2021. Non-GAAP adjusted net loss margin[1] was 3.5% in the third quarter of 2022, compared with 23.9% in the same period of 2021.

First Nine Months 2022 Operational and Financial Highlights:

  • The credit card volume and number of domestic loan applications for recommendation services increased by 19.6% to approximately 3.2 million and 40.2% to approximately 13.2 million, respectively, in the first nine months of 2022 compared with the same period of 2021. As a result, total revenues from recommendation services for the first nine months of 2022 increased by 34.3% to RMB560.4 million (US$78.8 million) from RMB417.3 million in the same period of 2021.
  • Revenues from big data and system-based risk management services decreased by 27.6% to RMB68.0 million (US$9.6 million) in the first nine months of 2022 from RMB93.9 million in the same period of 2021. The decrease was mainly attributable to a decrease in the number of paying customers related to the impact of COVID-19 on the Company’s cooperation with customers and product adjustments.
  • Revenues from advertising and marketing services and other services increased by 151.7% to RMB113.0 million (US$15.9 million) in the first nine months of 2022 from RMB44.9 million in the same period of 2021. The increase was mainly attributable to the growth of insurance brokerage services and other new business initiatives.
  • Loss from operations was RMB122.4 million (US$17.2 million) in the first nine months of 2022, compared with RMB197.3 million in the same period of 2021. Operating loss margin was 16.5% in the first nine months of 2022, compared with 35.5% in the same period of 2021. The improvement of loss from operations was mainly attributable to an increase in revenues and a decrease in operating expenses resulting from efficiency improvement and cost optimization.
  • Net loss was RMB114.1 million (US$16.0 million) in the first nine months of 2022, compared with RMB155.8 million in the same period of 2021. Net loss margin was 15.4% in the first nine months of 2022, compared with 28.0% in the same period of 2021.
  • Non-GAAP adjusted net loss[1] was RMB92.2 million (US$13.0 million) in the first nine months of 2022, compared with Non-GAAP adjusted net loss[1] of RMB140.8 million in the same period of 2021. Non-GAAP adjusted net loss margin[1] was 12.4% in the first nine months of 2022, compared with 25.3% in the same period of 2021.

Mr. David Ye, Co-founder, Chairman and Chief Executive Officer of Jianpu, commented, “In the third quarter, we maintained solid total revenue growth of 26.4% year-over-year and our Non-GAAP adjusted net loss margin[1] significantly reduced to 3.5% from 23.9% a year earlier and 12.1% in the previous quarter, against the backdrop of a challenging macro environment. These resilient results were primarily driven by our balanced and diversified revenue structure, continued operating efficiency improvements, and cost optimization measures. We continued to execute on our strategy for optimizing company resources and streamlining operations to enhance our operational efficiency. In addition, our ongoing disciplined cost optimization measures continued to enhance our overall productivity.”

The uncertainties around both COVID control measures and macro economy may persist into the fourth quarter. Therefore, we are adopting a cautious outlook on our business growth, which could moderate further in the fourth quarter. Looking ahead, we believe our industry leading position, technological capabilities, diversified revenue structure and continued efficiency gains will enable us to successfully navigate through the cycle and maintain a healthy and sustainable rate of growth. We remain committed to progressing on our vision of ‘Becoming everyone’s financial partner’, thereby delivering greater long-term value to the company and shareholders,” concluded Mr. Ye.

“Our third-quarter results highlight our relentless effort to maintain a good balance between business growth and operational efficiency. Our revenues from recommendation services increased by 30.3% year-over-year, while revenues from advertising, marketing services and other services were up 66.0% year-over-year. With the continued optimization of our cost structure and improvement in productivity, our Non-GAAP adjusted net loss[1] reduced significantly by 81.5% year-over-year to just RMB9.4 million in the third quarter. We will maintain disciplined cost control, and strive to improve our productivity and margin further,” said Oscar Chen, Chief Financial Officer of Jianpu.

Third Quarter 2022 Financial Results

Total revenues for the third quarter of 2022 increased by 26.4% to RMB268.8 million (US$37.8 million) from RMB212.6 million in the same period of 2021.

Total revenues from recommendation services increased by 30.3% to RMB211.6 million (US$29.7 million) in the third quarter of 2022 from RMB162.4 million in the same period of 2021.

Revenues from recommendation services for credit cards increased by 11.9% to RMB129.5 million (US$18.2 million) in the third quarter of 2022 from RMB115.7 million in the same period of 2021. Credit card volume in the third quarter of 2022 increased by 6.5% to approximately 1.1 million from 1.0 million in the same period of 2021. The average fee per credit card were RMB116.4 (US$16.4) in the third quarter of 2022 and RMB110.8 in the same period of 2021, respectively.

Revenues from recommendation services for loans increased by 75.8% to RMB82.1 million (US$11.5 million) in the third quarter of 2022 from RMB46.7 million in the same period of 2021. The number of domestic loan applications on the Company’s platform was approximately 5.0 million in the third quarter of 2022, representing an 18.5% increase from that in the same period of 2021. The average fee per domestic loan application increased to RMB16.5 (US$2.3) in the third quarter of 2022 from RMB11.2 in the same period of 2021, resulting from a more optimized product revenue mixture.

Revenues from big data and system-based risk management services decreased by 18.8% to RMB25.0 million (US$3.5 million) in the third quarter of 2022 from RMB30.8 million in the same period of 2021. The decrease was mainly attributable to a decrease in the number of paying customers related to the impact of COVID-19 on the Company’s cooperation with customers and product adjustments.

Revenues from advertising and marketing services and other services increased by 66.0% to RMB32.2 million (US$4.5 million) in the third quarter of 2022 from RMB19.4 million in the same period of 2021, primarily due to the growth of the Company’s insurance brokerage services and other new business initiatives.

Cost of promotion and acquisition increased by 22.1% to RMB180.2 million (US$25.3 million) in the third quarter of 2022 from RMB147.6 million in the same period of 2021. The increase was primarily due to the growth of the Company’s revenues from recommendation services, insurance brokerage services and other new business initiatives. 

Cost of operation increased by 5.0% to RMB21.0 million (US$3.0 million) in the third quarter of 2022 from RMB20.0 million in the same period of 2021. The increase was primarily attributable to an increase in software development and maintenance costs related to the big data and system-based risk management services, partially offset by decreases in payroll costs and depreciation expenses.

Sales and marketing expenses increased by 1.2% to RMB34.5 million (US$4.9 million) in the third quarter of 2022 from RMB34.1 million in the same period of 2021. The increase was primarily due to an increase in call center outsourcing expenses, partially offset by a decrease in payroll expenses.

Research and development expenses decreased by 11.2% to RMB28.6 million (US$4.0 million) in the third quarter of 2022 from RMB32.2 million in the same period of 2021, primarily due to a decrease in payroll expenses resulting from the Company’s continued efforts in cost optimization.

General and administrative expenses decreased by 41.6% to RMB23.0 million (US$3.2 million) in the third quarter of 2022 from RMB39.4 million in the same period of 2021, primarily due to decreases in professional fees, payroll expenses, credit loss expenses and share-based compensation expenses.

Impairment of goodwill and intangible assets was RMB13.3 million (US$1.9 million) in the third quarter of 2022, which was the impairment of the goodwill and intangible assets of an acquired subsidiary, Newsky Wisdom Treasure (Beijing) Co.,Ltd, which experienced a decline in revenue due to the impact of COVID-19 prevention and control measures. There was no such impairment loss in the same period of 2021.

Loss from operations was RMB31.9 million (US$4.5 million) in the third quarter of 2022, compared with RMB60.6 million in the same period of 2021. Operating loss margin was 11.9% in the third quarter of 2022, compared with 28.5% in the same period of 2021. The decrease in operating loss was mainly attributable to an increase in revenues and a decrease in operating expenses resulting from efficiency improvement and cost optimization, partially offset by the impairment of goodwill and intangible assets.

Others, net increased by 341.2% to RMB7.5 million (US$1.1 million) in the third quarter of 2022 from RMB1.7 million in the same period of 2021, primarily attributable to tax benefits for value-added tax.

Net loss was RMB25.1 million (US$3.5 million) in the third quarter of 2022 compared with RMB60.0 million in the same period of 2021. Net loss margin was 9.3% in the third quarter of 2022, compared with 28.2% in the same period of 2021.

Non-GAAP adjusted net loss[1], which excluded share-based compensation expenses, investment impairment loss, impairment of goodwill and intangible assets, investment gain of deconsolidation of subsidiaries and tax effects of above Non-GAAP adjustments was RMB9.4 million (US$1.3 million) in the third quarter of 2022, compared with RMB50.8 million in the same period of 2021. Non-GAAP adjusted net loss margin[1] was 3.5% in the third quarter of 2022 compared with 23.9% in the same period of 2021.

Non-GAAP adjusted EBITDA[2], which excluded share-based compensation expenses, investment impairment loss, impairment of goodwill and intangible assets, investment gain of deconsolidation of subsidiaries, depreciation and amortization, interest income and expenses, and income tax benefits from net loss, for the third quarter of 2022 was a loss of RMB7.2 million (US$1.0 million), compared with a loss of RMB47.9 million in the same period of 2021.

As of September 30, 2022, the Company had cash and cash equivalents, restricted cash and time deposits of RMB700.5 million (US$98.5 million), and working capital of approximately RMB400.3 million (US$56.3 million). Compared to those as of December 31, 2021, cash and cash equivalents, time deposits, restricted cash and time deposits and short-term investment decreased by RMB62.3 million, which was primarily attributable to net cash outflow due to the deconsolidation of one of the Company’s subsidiaries and net cash used in operating activities, partially offset by net cash inflow from financing activities.

First Nine Months 2022 Financial Results

Total revenues for the first nine months of 2022 increased by 33.3% to RMB741.4 million (US$104.2 million) from RMB556.2 million in the same period of 2021.

Total revenues from recommendation services increased by 34.3% to RMB560.4 million (US$78.8 million) in the first nine months of 2022 from RMB417.3 million in the same period of 2021.

Revenues from recommendation services for credit cards increased by 23.6% to RMB365.2 million (US$51.3 million) in the first nine months of 2022 from RMB295.5 million in the same period of 2021. Credit card volume in the first nine months of 2022 increased by 19.6% to approximately 3.2 million from 2.7 million in the same period of 2021. The average fee per credit card were RMB113.4 (US$15.9) in the first nine months of 2022 and RMB110.0 in the same period of 2021, respectively.

Revenues from recommendation services for loans increased by 60.3% to RMB195.2 million (US$27.4 million) in the first nine months of 2022 from RMB121.8 million in the same period of 2021, primarily due to an increase in the number of loan applications on our platform. The number of domestic loan applications on the Company’s platform was approximately 13.2 million in the first nine months of 2022, representing a 40.2% increase from that in the same period of 2021. The average fee per domestic loan application increased to RMB14.8 (US$2.1) in the first nine months of 2022 from RMB13.0 in the same period of 2021.

Revenues from big data and system-based risk management services decreased by 27.6% to RMB68.0 million (US$9.6 million) in the first nine months of 2022 from RMB93.9 million in the same period of 2021, primarily due to the COVID-19 impact on our cooperation with customers as well as product adjustments.

Revenues from advertising and marketing services and other services increased by 151.7% to RMB113.0 million (US$15.9 million) in the first nine months of 2022 from RMB44.9 million in the same period of 2021, primarily due to the growth of the Company’s insurance brokerage services and other new business initiatives.

Cost of promotion and acquisition[3] increased by 39.1% to RMB521.5 million (US$73.3 million) in the first nine months of 2022 from RMB374.9 million in the same period of 2021. The increase was in line with the growth of the Company’s revenues from recommendation services, insurance brokerage services and other new business initiatives. 

Cost of operation decreased by 4.8% to RMB59.9 million (US$8.4 million) in the first nine months of 2022 from RMB62.9 million in the same period of 2021. The decrease was primarily attributable to decreases in payroll costs and depreciation expenses, partially offset by an increase in software development and maintenance costs related to big data and system-based risk management services.

Sales and marketing expenses decreased by 6.5% to RMB101.6 million (US$14.3 million) in the first nine months of 2022 from RMB108.7 million in the same period of 2021. The decrease was primarily due to a decrease in payroll expenses, partially offset by an increase in call center outsourcing expenses.

Research and development expenses decreased by 14.3% to RMB87.7 million (US$12.3 million) in the first nine months of 2022 from RMB102.3 million in the same period of 2021, primarily due to a decrease in payroll expenses resulting from our continued efforts in cost optimization.

General and administrative expenses decreased by 23.7% to RMB79.9 million (US$11.2 million) in the first nine months of 2022 from RMB104.7 million in the same period of 2021, primarily due to decreases in professional fees, share-based compensation expenses and payroll costs, partially offset by an increase in credit loss expenses.

Impairment of goodwill and intangible assets was RMB13.3 million (US$1.9 million) in the first nine months of 2022, which was the impairment of the goodwill and intangible assets of an acquired subsidiary, Newsky Wisdom Treasure (Beijing) Co., Ltd. There was no such impairment loss in the same period of 2021.

Loss from operations was RMB122.4 million (US$17.2 million) in the first nine months of 2022, compared with RMB197.3 million in the same period of 2021. Operating loss margin was 16.5% in the first nine months of 2022, compared with 35.5% in the same period of 2021. The decrease in operating loss was mainly attributable to an increase in revenues and a decrease in operating expenses resulting from efficiency improvement and cost optimization, partially offset by the impairment of goodwill and intangible assets.

Others, net decreased by 73.6% to RMB11.6 million (US$1.6 million) in the first nine months of 2022 from RMB44.0 million in the same period of 2021. The Company recognized an impairment loss of RMB8.7 million on investments and an investment gain of RMB6.1 million resulting from the deconsolidation of one of its subsidiaries[4] in the first nine months of 2022; while the Company recognized a realized investment gain of RMB40.3 million from the investment in Conflux Global, a decentralized applications block-chain solution provider, in the first nine months of 2021. There was no such gain in the same period of 2022.

Net loss was RMB114.1 million (US$16.0 million) in the first nine months of 2022 compared with RMB155.8 million in the same period of 2021. Net loss margin was 15.4% in the first nine months of 2022 compared with 28.0% in the same period of 2021.

Non-GAAP adjusted net loss[1], which excluded share-based compensation expenses, investment impairment loss, impairment of goodwill and intangible assets, investment gain of deconsolidation of subsidiaries and tax effects of above Non-GAAP adjustments, was RMB92.2 million (US$13.0 million) in the first nine months of 2022, compared with RMB140.8 million in the same period of 2021. Non-GAAP adjusted net loss margin[1] was 12.4% in the first nine months of 2022 compared with 25.3% in the same period of 2021.

Non-GAAP adjusted EBITDA[2], which excluded share-based compensation expenses, investment impairment loss, impairment of goodwill and intangible assets, investment gain of deconsolidation of subsidiaries, depreciation and amortization, interest income and expenses, and income tax benefits from net loss, for the first nine months of 2022 was a loss of RMB84.7 million (US$11.9 million), compared with a loss of RMB129.5 million in the same period of 2021.

Conference Call 

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on December 2, 2022 (8:00 PM Beijing/Hong Kong Time on December 2, 2022).  

Dial-in details for the earnings conference call are as follows:  

United States (toll free):  1-888-346-8982  
International:  1-412-902-4272  
Hong Kong, China (toll free):  800-905-945  
Hong Kong, China:  852-3018-4992  
Mainland China:  400-120-1203  

Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for “Jianpu Technology Inc.”  

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.jianpu.ai.  

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until December 9, 2022, by dialing the following telephone numbers:  

United States (toll free):  1-877-344-7529  
International:  1-412-317-0088  
Replay Access Code:  3587296

About Jianpu Technology Inc.

Jianpu Technology Inc. is a leading independent open platform for the discovery and recommendation of financial products in China. The Company connects users with financial service providers in a convenient, efficient, and secure way. By leveraging its proprietary technology, Jianpu provides users with customized search results and recommendations tailored to each user’s particular financial needs and profile. The Company also enables financial service providers with sales and marketing solutions to reach and serve their target customers more effectively through integrated channels and enhance their competitiveness by providing them with tailored data, risk management services and solutions. The Company is committed to maintaining an independent open platform, which allows it to serve the needs of users and financial service providers impartially. For more information, please visit http://ir.jianpu.ai.

Use of Non-GAAP Financial Measures

The Company uses adjusted EBITDA and adjusted net (loss)/income, each a Non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.

The Company believes that adjusted EBITDA and adjusted net (loss)/income help identify underlying trends in its business that could otherwise be distorted by the effect of the expenses and gains that the Company include in (loss)/income from operations and net (loss)/income. The Company believes that adjusted EBITDA and adjusted net (loss)/income provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

Adjusted EBITDA and adjusted net (loss)/income should not be considered in isolation or construed as alternatives to net (loss)/income or any other measure of performance or as indicators of the Company’s operating performance. Investors are encouraged to review the historical Non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA and adjusted net (loss)/income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Adjusted EBITDA represents EBITDA before share-based compensation expenses, investment impairment loss, impairment of goodwill and intangible assets, investment gain of deconsolidation of subsidiaries and tax effects of above Non-GAAP adjustments. EBITDA represents net (loss)/income before interest, tax, depreciation and amortization.

Adjusted net (loss)/income represents net (loss)/income before share-based compensation expenses, investment impairment loss, impairment of goodwill and intangible assets, investment gain of deconsolidation of subsidiaries and tax effects of above Non-GAAP adjustments.

For more information on this Non-GAAP financial measure, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

OPEC Mocks Biden Again

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Major oil producers are expected to stick to their current output strategy or even slash production further when they meet on Sunday in the face of falling prices, a potential Russian oil price cap and an embargo on Russian crude shipments in yet another direct insult to Joe Biden.

At their last ministerial session in October the 13-nation Organization of the Petroleum Exporting Countries headed by Riyadh and its 10 allies led by Moscow, collectively known as OPEC+, agreed to reduce output by two million barrels per day (bpd) from November.

The OPEC+ reduction amounted to the biggest cut since the height of the Covid pandemic in 2020.

Amid fears of economic slowdown, Sunday’s the cartel’s meeting via videoconference convenes ahead of the EU enforcing an embargo on Russian crude shipments from Monday.

G7 countries, the EU and Australia had also appeared close to agreeing a $60 dollar per barrel price cap on Russian oil Thursday.

The alliance should vote for a “rollover of the previous decision” to cut two million bpd, an Iranian source told AFP Thursday, arguing that the market was “very uncertain” in light of imminent European sanctions.

– China worries –

“Odds are that the group will reassert its commitment to its latest output cuts,” says PVM Energy analyst Stephen Brennock, adding he would not rule out that they “may even potentially announce fresh cuts” to bolster prices.

Since the October meeting, oil prices have been plummeting to their level of early 2022, far from the peaks above $130 a barrel in March after the start of Russia’s invasion in Ukraine.

Two global crude benchmarks were hovering around $85 a barrel on Thursday.

Covid-related restrictions in China have raised fears about energy demand from the world’s largest importer of crude oil.

Beijing defused concerns, however, by signalling a possible easing of the strict zero-Covid policy, after nationwide protests against health restrictions broke out.

Soaring inflation in Europe and across the Atlantic have also fuelled fears of a recession.

– Russian ‘leverage’ –

Beyond the economic gloom, the big unknown in the oil equation currently is Russian oil, as Western nations seek to decouple themselves from Moscow’s energy supplies as fast as possible.

The EU has decided to ban member states from buying Russian oil exported by sea from December 5, “putting at risk over two million barrels per day,” according to estimates by ANZ analysts.

Investors are also scrutinising a European Commission-proposed $60 dollar per barrel price cap on Russian crude, which is designed to reinforce the effectiveness of the EU embargo.

The EU was already in agreement with Washington on the need to cap the price Western clients pay for Russia’s oil, to prevent Moscow profiting from price rises triggered by its own war on Ukraine.

Last week, President Vladimir Putin had warned that any attempt by the West to cap the price of Russian oil would have “grave consequences” for world markets.

Russia “has several options to circumvent such a cap,” said UniCredit economist Edoardo Campanella, adding that “OPEC+ might feel compelled to adopt a more aggressive stance” by cutting or threatening to cut production even further.

“Russia might also retaliate by leveraging its influence within OPEC+ to push for more production cuts down the road, thus exacerbating the global energy crisis,” Campanella said.

USA Morning Crypto Landscape

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BNB Chain-based decentralized finance (DeFi) protocol Ankr has confirmed it has been hit by a multi-million dollar exploit on Dec. 1. Ankr is now all but dead.

Cardano is on its way to release an algorithmic stablecoin in 2023 a dangerous move given their poor history.

Kraken slashes 30% of workforce

Stripe, the payment processing platform for the internet is enabling fiat on-ramp to Bitcoin & Crypto

The Economy

The dollar struggled to recover on Friday from its recent sell-off as traders grew confident the Federal Reserve will slow its pace of interest rate hikes, while an equities rally sputtered ahead of key US jobs data.

Another positive inflation data release out of the United States added to expectations that the US central bank will take a lighter approach to lifting borrowing costs at its December meeting.

The personal consumption expenditures price index data came a day after Fed boss Jerome Powell indicated that the days of 75 percentage-point rate increases were gone as officials pore over the impact of tightening on the economy.

A report showing factory activity shrinking in November added to the sense that the Fed moves were kicking in.

The developments gave forex traders another reason to shift out of the dollar, pushing it down against its major peers — having surged this year on the back of hawkish Fed policy.

The greenback was under particular pressure from the yen Thursday, having hit a three-decade high in October, while sterling and the yuan were also well up from the record lows touched recently.

The US unit was unable to break higher on Friday.

However, several Fed officials including Powell have lined up to warn that rates will continue to rise and stay elevated, with the possibility of no cut until 2024.

While the mood on trading floors has become much lighter, equity investors took a step back from their latest buying spree as they awaited the release of the closely watched non-farm payrolls report later Friday.

The figures will provide the most recent snapshot of how the world’s top economy is faring in light of the higher rates and four-decade-high inflation.

“Stocks are grinding a touch lower in Asia after a directionless US session, which sees local traders book some profits ahead of the non-farm payroll report,” said SPI Asset Management’s Stephen Innes.

“A strong report could still reinforce the Fed’s hawkish ambitions. So traders are jockeying for position ahead of the moderately high-risk event.”

Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Jakarta all fell.

However, Hong Kong and Shanghai were again the standout performers, boosted by hopes that China is edging towards a pivot from its draconian Covid-zero strategy that has locked down tens of millions and strangled the giant economy.

The move came after widespread protests across the country earlier in the week against almost three years of heavy-handed containment measures and calls for more political freedoms, which have rattled the leadership of Xi Jinping.

MEXC News

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MEXC News

 In September of this year, blockchain media outlet, Cointelegraph, reported that cryptocurrency trading platform MEXC has ranked as the world’s top liquidity provider. Recently, MEXC announced the growth of its contract business, and its average daily trading volume has reached an increase of 1,200%.

“Users first, MEXC’s Changing for you” has always been the service philosophy that MEXC adheres to. The ‘Zero Maker Fee’ Event is set to launch to give back to MEXC’s futures users. The activity starts on December 1st.

It is understood that to date, among the mainstream cryptocurrency trading platforms, MEXC is the only platform in the world that offers zero maker fee for futures pending orders. Andrew Weiner, VP of MEXC, said: “In 2022, we will focus on optimizing futures products and basic liquidity according to users’ needs. Presently, our liquidity has reached rank 1 globally amongst the top 50 trading platforms by market value.”

Since Q4 of 2018, MEXC has consistently launched and upgraded their futures products. In October 2022, MEXC upgraded the futures products and launched the second-level K-line function. These upgrades not only gave users a better trading experience but also met users’ needs for more timely and intuitive transaction information – allowing users to experience real-time prices, trading volume, order depth, and more exciting and technical features.

In terms of consistently engaging with MEXC users, MEXC regularly launches Futures M-Day, Super X-Game, Contract Carnival Week, and other user-friendly activities that bring various rewards and bonuses to their users. This ‘Zero Maker Fee’ Event is a unique and one of many long-lasting and high-level activities featured on the platform.

MEXC’s perpetual contract has launched more than 169 tokens and 179 trading pairs now, covering multiple focuses such as public chain, cross-chain, Layer 2, DeFi, and other sectors. MEXC’s perpetual contract is the fastest performing function run on the entire network. It has the most abundant derivatives that can be traded, providing each user with various and precise choices.

About MEXC:

MEXC is the world’s leading cryptocurrency trading platform, providing one-stop services such as futures, spot, ETF, NFT Index, etc., serving 10 million users worldwide with the philosophy of “Users first, MEXC’s Changing for you”. For more information, please visit the MEXC official website and off/CNW Telbec/ -icial blog, and follow MEXC Global and M-Ventures&Labs.

China Protests Victory

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China Protests Victory

Cities across China further unwound Covid restrictions Friday, loosening testing and quarantine rules in the wake of nationwide protests calling for an end to lockdowns and greater political freedoms.

Anger and frustration with China’s hardline pandemic response spilled out onto the streets last weekend in widespread demonstrations not seen in decades.

In the wake of the unrest across China, a number of cities have begun loosening Covid restrictions, such as moving away from daily mass testing requirements, a tedious mainstay of life under Beijing’s stringent zero-Covid policy.

At the same time, authorities are continuing to seek to contain protests with heavy security on the streets, online censorship in full force, and surveillance of the population heightened.

As of Friday, the southwestern metropolis of Chengdu will no longer require a recent negative test result to enter public places or ride the metro, instead only requiring a green health code confirming they have not travelled to a “high risk” area.

In Beijing, health authorities called on Thursday on hospitals not to deny treatment to people without a negative PCR test taken within 48 hours.

In January, a pregnant woman in the city of Xi’an miscarried after being refused hospital entry for not having a PCR test result.

China has seen a string of deaths after treatment was delayed by Covid restrictions, including the recent death of a four-month-old baby who was stuck in quarantine with her father.

Those cases became a rallying cry during the protests, with a viral post listing the names of those who died because of alleged negligence linked to the pandemic response.

Many other cities with virus outbreaks are allowing restaurants, shopping malls and even schools to reopen, in a clear departure from previous tough lockdown rules.

In northwestern Urumqi, where a fire that killed ten people was the spark for the anti-lockdown protests, authorities announced Friday that supermarkets, hotels, restaurants, and ski resorts would gradually be opened.

The city of over four million residents endured one of China’s longest lockdowns, with some areas shut in early August.

– Home quarantine –

An analysis by state-run newspaper People’s Daily on Friday quoted a number of health experts supporting local government moves to allow positive cases to quarantine at home.

The shift would be a marked departure from current rules, which require that they be held in government facilities.

The southern factory hub of Dongguan Thursday said that those who meet “specific conditions” should be allowed to quarantine at home. It did not specify what those conditions would be.

The southern tech hub Shenzhen rolled out a similar policy Wednesday.

Central government officials have also signalled that a broader relaxation of zero-Covid policy could be in the works.

Speaking at the National Health Commission Wednesday, Vice Premier Sun Chunlan said the Omicron variant was weakening and vaccination rates were improving, according to the state-run Xinhua news agency.

A central figure behind Beijing’s pandemic response, Sun said this “new situation” required “new tasks”.

She made no mention of zero-Covid in those remarks or in another meeting on Thursday, suggesting the approach, that has disrupted the economy and daily life, might soon be relaxed.

Shima Capital Invest in Web3 Gaming Startup Midnight

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Shima Capital, led by founder and Managing General Partner Yida Gao, are delighted to announce their investment in Web3 gaming startup Midnight. Shima led the $7.5 million seed round for the company, which just emerged from stealth mode last week.

Midnight is founded by a team of seasoned industry professionals coming from NBCUniversal, Disney Mobile Games, and SoundCloud, with a design and creative team who’ve worked on the likes of Star Trek: Fleet Command, Diablo, and Warcraft. The team, and its connection to IPs, played a major role in what initially attracted Shima Capital to the project.

“Midnight is a project that really stands out from the rest,” said Shima Capital founder Yida Gao. “They’ve chosen to focus on building high quality and accessible games for a diverse audience. They also use blockchain technology as a component of their tech stack, not the primary feature.

This helps to create real value and utility not just for active Web3 gamers, but for skeptic Web2 gamers making the transition. Finally, the way they weave connections through the games, creating something akin to a cinematic universe – is very unique in the space. We have the utmost faith that Midnight, and their team of industry veterans, will soon turn their vision into a reality.”

Yida and the team at Shima Capital are especially excited about what’s next for Midnight. Some games already in development at Midnight include Legion, a 4X MMO; Next Protectors, a 2D pixel brawler; and At Your Service, a couch co-op title. Over time, Midnight plans to build a portfolio of first and third-party games for multiple platforms, and genres for a wide and diverse audience.

Midnight is the latest investment by Shima Capital in the Web3 gaming sector. With over 170 companies in their portfolio, and counting, gaming makes up for roughly 30% of their investments. Web3 gaming has been, and continues to be, a top priority for Shima Capital.

To learn more about Yida Gao and Shima Capital visit www.shima.capital; to learn more about Midnight visit www.midnight.io.

About Shima Capital

Shima Capital is a leading early stage VC firm investing in disruptive blockchain companies. The fund is deeply focused on taking a hands-on approach and working closely with its portfolio companies to provide the most sweat equity per dollar invested. As teams in Web3 push the frontier of innovation, Shima helps hire talent, build community, amplify narratives, and foster the acceleration of technical research and development. Shima is composed of seasoned investors, accomplished operators, and former founders who align on a mission to support all-star teams with building and scaling generational companies.

Biden Abandoned EU Moves Closer to China

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Biden is being abandoned by allies, after Macron publicly shamed him, the EU has moved to strengthen ties with China.

Biden has proven to be even more xenophobic than his predecessor Donald Trump.

China and the European Union (EU) on Thursday called for further developing their comprehensive strategic partnership as the world faces various challenges.

“The more unstable the international situation becomes and the more acute challenges the world faces, the greater global significance China-EU relations take on,” Chinese President Xi Jinping said to visiting President of the European Council Charles Michel.

“The EU is ready to become a reliable and predictable cooperation partner for China,” said Michel, who is the first leader of the EU institution to visit the country after the 20th National Congress of the Communist Party of China (CPC).

Keeping the right perception, properly managing differences

On promoting the development of China-EU relations, the Chinese president first stressed the importance of keeping the right perception.

There are no strategic differences or conflicts of fundamental significance between China and the EU, Xi said, adding that China does not seek dominance or hegemony, and the country has never tried to export its system and will never do it in future.

China supports the EU’s strategic autonomy and supports a united and prosperous Europe, he said.

Noting that it is only natural that the two sides have different views on some issues, Xi called on the EU to maintain communication and coordination in a constructive way.

Before Michel’s visit, Xi had in-person meetings with several leaders from EU countries, including French President Emmanuel Macron, on the sidelines of the 17th Group of 20 Summit in mid-November. German Chancellor Olaf Scholz also visited China in November.

During his talk with Scholz, Xi had underscored that China always regards Europe as a comprehensive strategic partner, supports the strategic autonomy of the EU and wishes Europe stability and prosperity.

Michel told Xi that the EU stands ready for an in-depth discussion with China on important issues concerning various aspects of EU-China relations “in the spirit of mutual respect and candor.”

The EU pursues strategic autonomy and stays committed to building its own capacity and pressing ahead with European integration, he stressed.

The EU upholds the one-China policy and respects China’s sovereignty and territorial integrity and will not interfere in China’s internal affairs, he said.

Promoting cooperation, strengthening coordination

The Chinese president called for joint efforts with the EU in strengthening macroeconomic policy coordination, seeking greater complementarity in market, capital and technology, and working together to nurture new growth drivers in digital economy, green development and environment protection, new energies, and artificial intelligence.

China welcomes the EU’s participation in the Belt and Road cooperation and the Global Development Initiative for greater synergy with the EU’s Global Gateway strategy, Xi said.

When meeting Michel and Ursula von der Leyen, president of the European Commission, via video in April, Xi had called for seeking greater synergy between their development strategies and exploring more complementarity between China’s new development philosophy and paradigm and the EU’s trade policy for open strategic autonomy.

Michel stressed strengthening communication to address energy crisis, climate change, public health and other global challenges, saying that the EU will work with China to take forward the process toward an EU-China investment agreement.

Despite the negative impacts of the COVID-19 pandemic, China and the EU have maintained vigorous economic cooperation — China overtook the U.S. to become the EU’s largest trading partner last year, with bilateral trade volume hitting a record high of $828.1 billion.

China and the EU are the second and the third largest economies in the world, with their share of global GDP standing at 18.5 percent and 17.8 percent, respectively, in 2021, according to the World Bank data.

The two sides also exchanged views on the Ukraine crisis. 

Xi said a political settlement of the crisis best serves Europe’s interests and the common interests of all countries in Eurasia, stressing that China supports the EU in stepping up mediation efforts and playing a leading role in building a balanced, effective and sustainable security architecture in Europe. 

China will remain on the side of peace and continue to play a constructive role in its own way, he said.

Carbon credits need more supply and integrity

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Carbon credits could make a significant contribution to achieving net zero by 2050, but only if participants address issues over limited supply and integrity, the Secretary General of the International Energy Forum (IEF) told a conference.

Trade in voluntary carbon credits could grow 100-fold by 2050 if teething problems are addressed, Joseph McMonigle said in a keynote address to the S&P Global Carbon Markets Conference in Barcelona.

“There is a huge opportunity for voluntary carbon markets, which can only be realized with concerted international efforts. Overall, the market is characterized by low liquidity, scarce financing, inadequate risk-management services, and limited data availability. Building trust in the market is vital to achieving these goals so we must work harder to improve transparency, standardization and stability,” he told the audience in Barcelona.

A carbon credit is a permit which allows a country or organization to produce a certain amount of carbon emissions and which can be traded if the full allowance is not used. They come from four categories: avoided nature loss including deforestation; nature-based sequestration, such as reforestation; avoidance or reduction of emissions such as methane from landfills; and technology-based removal of carbon dioxide from the atmosphere like carbon capture, utilization and storage. According to the World Bank, global carbon credit revenue grew 60 percent to $84 billion in 2021.

The Taskforce on Scaling Voluntary Carbon Markets estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. Management consultant McKinsey issued a report in 2021 that estimates demand in 2030 in the range of 8 to 12 gigatons of CO2 per year of carbon credits.

“It is critical that purchasing a carbon credit can be trusted to bring a real reduction in CO2 emissions,” Mr McMonigle told the conference. “The market today lacks transparency and there is a lack of data on how money is spent. The world will need a voluntary carbon market that is large, transparent, verifiable, and environmentally robust.”

In 2016, the European Commission found that 85 percent of projects it examined were unlikely to achieve their stated reduction claims. Similar conclusions were found in a 2019 ProPublica investigation and a 2021 study on forest preservation in California.

The second issue is supply of credits, Mr McMonigle said. “The development of projects would have to ramp up at an unprecedented rate,” he said, adding that most of the potential supply of avoided nature loss and of nature-based sequestration is concentrated in a small number of countries.

Project and financing risks could reduce the supply of carbon credits to as little as 1 gigaton of CO2 per year by 2030, according to the McKinsey report.

Policy makers need the carbon markets to work better because they are increasingly relying on them to deliver a portion of their promised reductions in greenhouse gas emissions in their nationally determined contributions (NDCs) under the Paris agreement, he told the conference. And companies are seeking higher volumes of carbon credits because their regulators and shareholders are demanding rapid and measurable progress towards net zero goals beyond what they can deliver internally.

Article 6 of the Paris Agreement is central to the development of an effective international market for trading carbon credits, Mr McMonigle said. “It serves as the crucial link between the trade in carbon credits and countries’ commitments to reduce greenhouse gas emissions, so it is vital that we see these talks come to a successful conclusion.”

Talks at COP27 in Egypt were meant to deliver a breakthrough in implementing Article 6, but differences between the parties remain, and negotiations have been extended into 2023.

“Differences relate to the deadline for transferring emissions reduction projects listed under the Clean Development Mechanism to the new registry, the procedure for moving credits between countries, and the conditions for mandatory cancellations of credits,” Mr McMonigle said.

Governments are also looking at how carbon credits can be used to promote clean energy technologies in the developing world, he added. The United States launched an initiative at COP27 to enable companies to earn credits for funding clean energy projects in the developing world. Launched by White House Climate Envoy John Kerry with the Bezos Earth Fund and Rockefeller Foundation, the Energy Transition Accelerator will create a new type of carbon credit for companies that deploy capital to retire unabated coal-fired power and accelerate the buildout of renewables in developing countries.

Governments in emerging markets, and in particular energy producers, have recently embraced carbon credits, Mr McMonigle said.

Saudi Arabia, for example, held its first auction in October, selling 1.4 million tons of high-quality, CORSIA-compliant and Verra-registered carbon credits. Elsewhere in the Middle East, Abu Dhabi Global Market and AirCarbon Exchange are setting up a voluntary carbon market based in the UAE capital, aiming for a launch in January.

Elon Musk and Neuralink

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Elon Musk said one of his companies would in six months be able to implant a device into a human brain that would allow communication with a computer.

The interface, produced by Musk’s start-up Neuralink, would allow the user to communicate directly with computers through their thoughts, he said.

“We’ve submitted I think most of our paperwork to the FDA (US Food and Drug Administration) and we think probably in about six months we should be able to have our first Neuralink in a human,” he said in a company presentation.

“We’ve been working hard to be ready for our first human (implant), and obviously we want to be extremely careful and certain that it will work well before putting a device in a human,” he said.

Musk — who bought Twitter last month and also owns SpaceX, Tesla and several other companies — has been known to make ambitious predictions about his companies, with several not becoming reality.

In July 2019, he vowed that Neuralink would be able to perform its first tests on humans in 2020.

The prototypes, which are the size of a coin, have been implanted in the skulls of monkeys.

At the Neuralink presentation, the company showed several monkeys “playing” basic video games or moving a cursor on a screen through their Neuralink implant.

Musk said the company would try to use the implants to restore vision and mobility in humans.

“We would initially enable someone who has almost no ability to operate their muscles… and enable them to operate their phone faster than someone who has working hands,” he said.

“As miraculous as it may sound, we are confident that it is possible to restore full body functionality to someone who has a severed spinal cord,” he said.

Beyond the potential to treat neurological diseases, Musk’s ultimate goal is to ensure that humans are not intellectually overwhelmed by artificial intelligence, he said.

Other companies working on similar systems include Synchron, which announced in July that it had implanted the first brain-machine interface in the United States.

Tesla Semi Will Bring Billions

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Tesla_Semi_truck

Tesla is expected on Thursday to deliver its first Elon Musk led battery-powered semi truck, with which it hopes to get a jump start on the nascent electric heavy duty vehicle market by offering longer ranges without recharging.

The company is scheduled to hand over the keys to its first electric truck dubbed “Semi” at its Nevada manufacturing plant to multinational food company PepsiCo.

Tesla electric semi has been highly anticipated since Musk unveiled a sleek designed prototype in 2017, the launch of full-scale production might be a launchpad for Tesla to hit new highs .

The truck that “the market has been waiting for… is the one from Tesla,” KXCO said in a note to traders today.

Legacy manufacturers have primarily converted their diesel-designed trucks to electric in a clunky ill-conceived bid to compete.

If the Tesla vehicle lives up to expectations, “it’s going to be a massive win,” KXCO says.

In a tweet on Saturday, Musk said that one Semi had driven 500 miles (800 kilometers) with a total weight of 81,000 pounds (nearly 37 tons).

The electric vehicles currently on offer only have a range of 250 to 300 miles.

The most populous US state, California, has passed a law phasing out combustion engine trucks, which has since been followed by other states.

The European Union is also expected to debate new standards in the coming months.

Companies are also facing pressure to have more environmentally conscious reputations.

They “want to be on the right side of history,” says Marie Cheron of the Europe-based association Transport & Environment.

Those who do not commit to a decarbonization strategy, some of whom say they are waiting for technologies to improve, “are falling behind,” she says.

Another motivation to transition, Roeth says, is that drivers who have been able to test them, “love the electric trucks a lot.”

“They’re very quiet, they don’t have the smells of the exhaust, and they are comfortable to drive.”

In late October, Musk said that Tesla is aiming to build 50,000 Semis by 2024.

In 2018, when production of Tesla’s Model 3 sedan struggled to ramp up, Musk showed that he was capable of getting his teams to speed up.