Here's what happened in China's markets last trade day (12/14):

Temu, Pinduoduo's budget shopping app, takes legal action against Shein, alleging anti-competitive practices, specifically accusing Shein of enforcing exclusive agreements with vendors and manufacturers. This practice, previously curbed by Beijing in its scrutiny of the tech industry, is now sparking a legal battle.

To boost housing demand, China relaxes down payment requirements in Beijing and Shanghai. First-time homebuyers in both cities face a reduced 30% minimum down payment, while second-time buyers see a decrease to 40%-50% from the previous 60%-80%. The impact on demand remains uncertain.

The Institute of International Finance (IIF) predicts China will experience $65 billion in net foreign capital outflows in 2024, citing geopolitical risks and shifting investor sentiment. This contradicts nine consecutive months of net foreign buying in China's government bonds, totaling RMB 1 trillion year-to-date. With expected US rate decreases, the IIF's outlook may be overly pessimistic.

China's artificial intelligence-generated content (AIGC) is projected to reach RMB 10 trillion in 2023, driven by industries like manufacturing, retail, telecommunications, and healthcare. By 2035, AIGC could hit RMB 30 trillion, indicating a 10% annual growth.

China experiences a nearly 20% YoY increase in mobile handset shipments in October, reaching 29.16 million units. 5G handsets account for 90.5% of the market, with 35.5% growth. However, domestically branded handsets decline by 7.2%, with foreign brands gaining market share after the release of the iPhone 15 series.