The state of entrepreneurship was informed that the digitized vehicle lamp provider, the crystal-based photovoltaic, officially completed tens of millions of yuan B yuan renminbi, and this wheeled financing was capitalized by Bo. This round of financing will be used primarily for mobile support after a large number of new vehicle-based inputs and for the development of new technologies in the healing.

Previously, in December 2021 and July 2022, crystal-based photovoltaic was completed, with a cumulative surplus of S$A+ and A.8/4, respectively, in the form of perseverances and small-metres.

crystallized lighting was established in 2011 to focus on integrated solutions for automobile digitized light systems. Corporate products and services cover the electronic hardware architecture (driven, photovoltaic, domain controller ECU/DCU), software endowment (communication, OTA) and process-wide technical services.

In the context of automotive intelligentness, digitized car lights are also becoming an important expression of entrepreneurship. crystal-based photovoltaic power has also changed from traditional Tier 2 to Tier 0.5, and has been designed, developed, produced, and continuously followed up after delivery, in parallel with the main plant.

Currently, the products of crystal-based photovoltaic have covered more than 30 bus-types at more than a dozen mainframes, such as mini-PG9, throw S, Step, North BJ60, etc.

It is understood that the car light control system for the crystallized photovoltaic has been upgraded to a third generation, which can control the exterior lights and carry out power exports. In addition, the crystallization team is autonomously developing the LED matrix-based terrestrial projectoring team, which can achieve basic projection functions, such as broad-based, optical rays, and appropriate navigation system-led routes.

On this basis, the crystallization is also exploring the introduction of large lamps into “high-resolution” that break the patent limits of TI DMD. A sample of relevant products and partners is currently being tested.

Currently, crystal-based photovoltaic is also in BIMS (In-cabin monitoring system), the intelligent monitoring system of car vents, including the monitoring of automobile drivers (DMS) and members of the vehicle (OMS), integrating the most up-to-date personal face identification, voice identification, taic identification, hand identification and multi-mouth integration through brink AI calculations.

The second half of the automobile industry change, the core of which was the intelligent connection between the automobile and the Internet, was recently expressed by the Director of Capital Investment. The understanding, product matrices and the forward-looking nature of the technological reserve of the core team of crystal-based photovoltaic power are among the incubators in the industry.

For more information on the project, please visit the “Veterinary Analysis”.

China’s economy has entered the bottom area of short cycle, but its expectation of strong recovery should be reduced; Three balance sheets are deteriorating, but leverage has not yet reached the critical point.

I: the impact of China US trade war - a breathing space

Since the beginning of the trade war, China’s stock market has begun to bear a heavy load. But as the initiator of the trade war, the US market has not really felt the impact - until recently, the slowdown in China has become more obvious, and the short cycle of the US economy has gradually peaked. The question now is: after experiencing a slump of more than 30% and being listed as one of the worst performing markets in the world this year, has China’s stock market absorbed the impact of the trade war?

In order to answer the above questions, we calculated the 40 week rolling logarithmic return of the Shanghai Composite Index. We want to investigate whether the sharp decline of Shanghai Stock Exchange in 2018 has entered the bottom area compared with several significant bear markets in history. It can be seen that after the stock market crash in 2018, this return index has fallen to the level during the US economic depression in 2001, the Shanghai Composite Index fell below 1000 points in 2005 and the European sovereign debt crisis in 2011. However, the depth of this slump is not as deep as that of the global economic crisis in 2008 and the bursting of China’s stock market foam in 2015 (Figure 1). Therefore, unless the trade war worsens next year, we can say that the recent changes in market prices have largely reflected the impact of the trade war and the slowdown of China’s economic cycle.

Figure 1: extremely low market returns indicate that stock prices have taken into account the short-term impact of the trade war.

One way to measure the impact of trade war is to observe the price of soybean futures. This is because of the importance of soybeans in U.S. export trade with China and the influence of Midwestern agricultural states on the U.S. election. We note that although the trade war seems to have worsened recently, US soybean futures prices are no longer at a record low (Figure 2). This observation shows that the current market price seems to have taken into account the short-term impact of the trade war. Unless the trade war begins to worsen, both the Shanghai Composite Index and US soybean futures reflect the short-term breathing space of the trade war in the market price structure. The resumption of bilateral dialogue is a positive signal.

Figure 2: US soybean futures prices are no longer at record lows.

Two: three balance sheets in China’s economy

Our economic cycle model shows that in view of the implementation of fiscal stimulus and monetary easing policies, the short cycle of China’s economy will gradually enter the bottom range in the next few months. Our cycle model also shows that the short economic cycle of the United States is peaking and will continue to disrupt overseas markets in the short term. (please refer to our report “Hong Hao: the conflict of China US cycle” on September 3, 2018)

When the economic cycle approaches the upward inflection point, it means that the negative factors in the economy have been exhausted. At this point in time, we will see that despite the decline in interest rates, credit expansion has slowed below the level of nominal economic growth. Economic activities, especially the growth of China’s real estate construction activities, are gradually stagnating; Consumption is weak and inventory level is low. As the most concerned barometer of economic activity, the stock market also showed a downturn. China is at such a critical moment.

However, if an economic cycle wants to get out of the trough, it often needs the help of government policies. The greater the challenge, the greater the need for policy support - as it is now. The necessary condition for effective policy is that the government still has room for stimulus, and the leverage in the balance sheet of the private sector has not been increased to the point of unsustainability. In short, there is still room to increase the leverage burden on the balance sheets of the public and private sectors.

In the following section, we will study the leverage of different sectors of China’s economy.

2.1 family: China’s real estate foam - a different perspective

Is China’s real estate a foam? The debate on China’s real estate foam has not been finalized. Foam theorists, including the author himself, once used extremely low rental yields to compare mortgage rates, a high proportion of real estate prices to compare incomes, and vacancy rates to confirm their views on the real estate foam. Despite these arguments, real estate prices have soared in the past two decades. Although real estate is a long-term asset, so it is difficult to choose the time to exit, such a strong price performance suggests that the current mainstream view may be biased.

With China’s economic slowdown, the downward pressure on real estate prices is becoming more and more obvious. The focus of experts’ debate has turned to whether high house prices have led to an unsustainable increase in the leverage ratio of Chinese households and affected the consumption level of residents. Finally, the unsustainable high leverage ratio is likely to lead to the bursting of the real estate foam.

In addition to the traditional indicators that measure the affordability of house prices and the health of household balance sheets, we believe that the cross time and regional investigation of the solvency of Chinese households may be more illustrative. If Chinese families can afford their monthly mortgage, it is reasonable to use leverage for real estate investment as long as the return on house purchase exceeds the mortgage interest rate. In addition, considering that there are significant differences in the real estate market in different regions, the investigation of the real estate market should also vary from place to place.

Figure 3: the disposable income of 35 cities grew faster than the monthly mortgage repayment

We find that at the national level, the growth of household disposable income is faster than that of house prices. Mortgage repayment accounts for 39% of total household income. This percentage has climbed to a level similar to that in 2007 and 2011. The following two years were difficult years for China’s economy (Figure 3). At present, when interest rates in the United States began to rise from the bottom of history, the corresponding index is 21%. This comparison can be understood as that Chinese families seem to be heavily in debt. But compared with 56% in Hong Kong, it seems a little worthless. During the real estate foam in 1997, the ratio in Hong Kong even exceeded 100%. Therefore, the difference between Chinese and Western cultures should be an important reason for the great difference in housing loan burden (Figure 4).