5 large points from regulation and EVs to semiconductors

A technologist inspects a computer chip.

Sefa Ozel | E + | Getty Images

GUANGZHOU, China – China’s tech sector has been on a wild ride over the past year, with regulations tightened, billions of dollars devastating corporate market value, and ongoing pressures on Beijing to become self-sufficient in technology.

These are some of the important topics to consider. be treated CNBC’s annual East Tech West event in the Nansha district of Guangzhou in southern China.

Here’s a look at the top concerns and priorities of the Chinese tech sector right now.

China’s technical crackdown

That put a heavy strain on China’s internet name. For example, Alibaba’s shares are down 41% since the start of the year.

There are several questions:

  • Will China introduce more new regulations and in what areas?
  • Which companies could be targeted next?
  • What does this mean for the growth of the technology sector in China?

CNBC addressed some of this in a recent episode of the Beyond the Valley podcast below. These talks will continue at East Tech West.

semiconductor

The ongoing tech rivalry between the US and China has made Beijing’s efforts to become more self-sufficient in a variety of sectors even more urgent. One of them are semiconductors, which are vital for everything from automobiles to cell phones.

But China is struggling to catch up with the US and other countries, and that’s because of the complexity of the semiconductor supply chain, which is dominated by foreign companies.

A good example is the chip manufacturing sector. SMIC, China’s largest contract chip maker, is several years back Taiwan’s TSMC and South Korea’s Samsung. SMIC is unable to manufacture the latest chips needed for leading smartphones.

Foreign companies master the most advanced tools and equipment required for the production of high-end chips. US sanctions have denied China access to some of these tools. Chinese companies can’t keep up.

How China will boost its domestic chip industry in the face of these hurdles is a big and ongoing debate.

Read more about semiconductors

‘Frontier’ technology

The semiconductor industry is just one of many industries in which China is trying to improve its credentials.

In his Five-year development plan, the 14th of its kindBeijing, which was released earlier this year, said it would “make science and technology self-reliance and self-improvement a strategic pillar for national development.”

The plan identifies areas that Beijing sees as “frontier technology” – artificial intelligence (AI) and space travel.

China did remarkable progress in space, including launching its own space station. It has ambitions sends its first manned mission to Mars in 2033.

When it comes to artificial intelligence, Chinese tech giants from Baidu to Tencent are investing heavily.

Electric vehicles

According to market research company Canalys, around 1.1 million electric vehicles were sold in the first half of the year, almost as many as in all of 2020. China is the world’s largest market for electric vehicles.

This growth has attracted many new tech players. Xiaomi, which is known for smartphones, is expecting it Series production of our own electric vehicles in the first half of 2024while the search giant has Baidu Set up your own electric car business with the Chinese automaker Geely.

Read more about electric vehicles

China’s economic slowdown

NXP Semiconductors, Penn Nationwide Gaming, Generac Holdings and Caesars Leisure Set to Be a part of S&P 500; Others to Be a part of S&P MidCap 400, S&P SmallCap 600 and S&P 100

NEW YORK, March 12, 2021 / PRNewswire / – S & P Dow Jones indices make the following index adjustments to the S & P 500, S & P 100, S & P MidCap 400, and S & P SmallCap 600 to ensure that each index is more representative of its market capitalization range . The changes will take effect before trading opens on Monday March 22, 2021 to coincide with the quarterly realignment:

NXP Semiconductors NV (NASD: NXPI) becomes Flowserve Corp. (NYSE:FLS) in the S&P 500 becomes Flowserve Edgewell Personal Care Co. (NYSE:EPC) in the S&P MidCap 400, and Edgewell Personal Care becomes Exterran Corp. (NYSE:EXTN) in the S&P SmallCap 600. Exterran is no longer representative of the small-cap market.

S&P MidCap 400 components Penn National Gaming Inc. (NASD: PENN), Generac Holdings Inc. (NYSE:GNRC) and Caesars Entertainment Inc. (NASD: CZR) will all switch to the S&P 500 and SL Green Realty Corp. (NYSE:SLG), Xerox Holdings Corp. (NYSE:XRX) and Vontier Corp (NYSE:VNT), all of which will be converted to the S&P MidCap 400.

S&P 500 components Broadcom Inc. (NASD: AVGO), T-Mobile US Inc. (NASD: TMUS) and Linde plc (NYSE:LIN) replaces Allstate Corp. (NYSE:ALL), Kinder Morgan Inc. (NYSE:KMI) and Schlumberger NV (NYSE:SLB) in the S&P 100th Allstate, Morgan childrenand Schlumberger stays in the S&P 500.

The following is a summary of the changes that will be made prior to the opening of trading on the Effective Date:

Effective Date

Index name

action

Name of the company

ticker

GICS sector

March 22, 2021

S&P 500

additive

NXP Semiconductors

NXPI

Information technology


S&P 500

additive

Penn National Gaming

PENN

Discretion for consumers


S&P 500

additive

Generac Holdings

GNRC

Industry


S&P 500

additive

Caesars Entertainment

CZR

Discretion for consumers


S&P 500

Deletion

Flowserve

FLS

Industry


S&P 500

Deletion

SL Green Realty

SLG

Real estate


S&P 500

Deletion

Xerox Holdings

XRX

Information technology


S&P 500

Deletion

Vontier

VNT

Information technology


S&P MidCap 400

additive

Flowserve

FLS

Industry


S&P MidCap 400

additive

SL Green Realty

SLG

Real estate


S&P MidCap 400

additive

Xerox Holdings

XRX

Information technology


S&P MidCap 400

additive

Vontier

VNT

Information technology


S&P MidCap 400

Deletion

Edgewell personal care

EPC

Consumer staples


S&P MidCap 400

Deletion

Penn National Gaming

PENN

Discretion for consumers


S&P MidCap 400

Deletion

Generac Holdings

GNRC

Industry


S&P MidCap 400

Deletion

Caesars Entertainment

CZR

Discretion for consumers


S&P SmallCap 600

additive

Edgewell personal care

EPC

Consumer staples


S&P SmallCap 600

Deletion

Exterran

EXTN

energy


S&P 100

additive

Broadcom

AVGO

Information technology


S&P 100

additive

T-Mobile US

TMUS

Communication services


S&P 100

additive

Linden tree

LIN

materials


S&P 100

Deletion

Allstate

ALL

Finances


S&P 100

Deletion

Morgan children

KMI

energy


S&P 100

Deletion

Schlumberger

SLB

energy

For more information on S&P Dow Jones Indices, see www.spdji.com

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