The manufacturing sector is the most important one in the Chinese Economy. After improving for two months, a survey conducted by Chinese media group Caixin showed that PMI fell to 48.2 in December from 48.6 the previous month. Any number below 50 represents a deceleration in the factory sector. Due to this, there was a 7% fall in the market which triggered a halt.
However, economists said the new manufacturing data, while disappointing, does not indicate that China is facing a severe or unexpected economic slowdown.
All China based stocks and indices will be bearish due to the triggered halt of the Chinese stock market which was trading at an all-time low.
$BABA – Alibaba Group Holdings Ltd – Short Term Bearish
To add to the Chinese stock market halt, Alibaba Group’s Finance affiliate, Zhejiang Ant Small & Micro Financial Services Group Co. was looking at a second round of fundraiser of at least $1.5 billion ahead of a planned IPO. This company runs China’s biggest online payment service, Alipay. Analysts are of the opinion that the China market will remain bearish for some time
$TSLA still Bearish (Short Term)
Among other things, Tesla is currently investigating what lead to its Model S burning due to Supercharging in Norway.
Also, Negative sentiment due to delayed deliveries of Model X to customers. This model has many manufacturing challenges since it contains various unique specifications. The company is said to be at full production (1800 nos) of the model by the end of March 2016 according to the CEO Elon Musk. In the last quarter of 2015, TSLA achieved its lower end of the deliveries, 17400 vehicles against the estimated 17000 – 19000 vehicles. Various analysts are of the opinion that the High Growth expectations may not be realized in the short to medium term, due to which the stock prices shall fall.