Wall Street Indexes Rebound After Senators Back Spending Plan, S&P 500 Trims Weekly Losses

Barry Adams
14 Mar, 2025
New York City

Stocks on Wall Street rebounded in Friday's trading after Democrats signaled support for the federal government spending bill, averting the feared government shutdown. 

The S&P 500 index advanced 1%, and the Nasdaq Composite jumped 1.4%, as investors looked beyond escalating tensions. 

Senator Chuck Schumer, the leader of the Democratic Party in the Senate, said he has lined up enough votes to support the Republican-written spending bill for the next six months. 

Schumer added that power transfer to Donald Trump via a government shutdown is a "far worse option."

If the spending bill passes the Senate, which has already been approved by the members of the House, the federal government will have enough funding available for the next six months. 

On Wall Street, sentiment was cautious after Thursday's sharp decline, and the S&P 500 index erased 10% from the peak it reached in mid-February. 

For the year so far, the S&P 500 is down about 6%, and the tech-heavy Nasdaq Composite has fallen by 9.3% as of the close of Thursday's trading.

U.S. Movers 

Ulta Beauty surged 7.5% to $338.17, and the cosmetic retailer reported mixed results in the fiscal fourth quarter.

The specialty retailer held out for higher sales in 2025 but estimated diluted earnings per share to decline.

PagerDuty Inc. soared 14.5% to $17.92, and the cloud computing company announced strong financial results and announced a stock repurchase plan.

Li Auto Inc. gained 0.3% to $28.88, and the U.S.-listed Chinese electric vehicle maker reported a decline in earnings in the fourth quarter, but deliveries rose 20% in the period.

Rubrik Inc. soared 25% to $68.88, and the data security company reported strong financial results, and the company offered a promising outlook.

European Markets Erased Losses After German Political Parties Agreed On Debt Brake Revision

Bridgette Randall
14 Mar, 2025
London

European markets lacked direction in Friday's trading amid heightened trade tensions and uncertainty surrounding the German coalition government's spending plans. 

Benchmark indexes in Frankfurt and Paris struggled to stay above the flatline, but they are likely to trim weekly losses following the surge in the afternoon trading. 

The coalition of the conservative bloc CDU/CSU and Social Democrats worked out a last-minute deal with the Green Party to increase federal government debt. 

The agreement among three parties paves the way for the two-thirds majority needed to approve the constitutional amendment for the debt brake, does not include defense spending in the calculation, and creates a €500 billion fund to invest in infrastructure.

 The latest agreement will be put to a vote in the outgoing parliament on Tuesday, and will need the passage by two-thirds of the members of the upper house of the parliament.

Europe Indexes and Yields

The DAX index decreased by 0.1% to 22,549.85, the CAC-40 index edged higher 0.1% to 7,945.56, and the FTSE 100 index advanced by 0.3% to 8,570.30.

The yield on 10-year German bonds inched higher to 2.88%, French bonds increased to 3.58%, the UK gilts moved up to 4.69%, and Italian bonds edged higher to 3.95%.

The euro increased to $1.08; the British pound was lower at $1.29; and the U.S. dollar was higher and traded at 88.34 Swiss cents.

Brent crude increased $0.58 to $70.46 a barrel, and the Dutch TTF natural gas was higher by €0.43 to €41.06 per MWh.

Europe Stock Movers

BMW AG edged up 0.1% to €82.30, and the German luxury automaker reported a 37% decline in annual profit amid subdued demand in China. 

Revenue in the fourth quarter declined 15% to €36.4 billion from €43 billion, net income fell 41% to €1.6 billion from €2.6 billion, and earnings per share declined 36% to €2.41 from €3.77 a year ago.

The luxury passenger car maker also lowered its annual dividend to €4.30 from €6.00 a year ago.

Daimler Truck Holding jumped 2.5% to €39.92 after the vehicle maker forecast operating profit to increase between 5% and 15% in 2025. 

Universal Music Group declined 8.9% to €25.46 on reports that the U.S.-based hedge fund has cut its stake in the company 

Kering SA dropped 11% to €225.0, and the fashion company announced the appointment of Demna Gvasalia as artistic director for its ailing brand Gucci, which accounts for nearly half the company's sales. 

The company confirmed that Demna will assume the role from July, and the luxury company decided to move him from Kering-owned Balenciaga. 

Demna would replace Sabato De Sarno, whose departure from Gucci was announced a month ago. 

European Markets Erased Losses After German Political Parties Agreed On Debt Brake Revision

Bridgette Randall
14 Mar, 2025
London

European markets lacked direction in Friday's trading amid heightened trade tensions and uncertainty surrounding the German coalition government's spending plans. 

Benchmark indexes in Frankfurt and Paris struggled to stay above the flatline, but they are likely to trim weekly losses following the surge in the afternoon trading. 

The coalition of the conservative bloc CDU/CSU and Social Democrats worked out a last-minute deal with the Green Party to increase federal government debt. 

The agreement among three parties paves the way for the two-thirds majority needed to approve the constitutional amendment for the debt brake, does not include defense spending in the calculation, and creates a €500 billion fund to invest in infrastructure.

 The latest agreement will be put to a vote in the outgoing parliament on Tuesday, and will need the passage by two-thirds of the members of the upper house of the parliament.

Europe Indexes and Yields

The DAX index decreased by 0.1% to 22,549.85, the CAC-40 index edged higher 0.1% to 7,945.56, and the FTSE 100 index advanced by 0.3% to 8,570.30.

The yield on 10-year German bonds inched higher to 2.88%, French bonds increased to 3.58%, the UK gilts moved up to 4.69%, and Italian bonds edged higher to 3.95%.

The euro increased to $1.08; the British pound was lower at $1.29; and the U.S. dollar was higher and traded at 88.34 Swiss cents.

Brent crude increased $0.58 to $70.46 a barrel, and the Dutch TTF natural gas was higher by €0.43 to €41.06 per MWh.

Europe Stock Movers

BMW AG edged up 0.1% to €82.30, and the German luxury automaker reported a 37% decline in annual profit amid subdued demand in China. 

Revenue in the fourth quarter declined 15% to €36.4 billion from €43 billion, net income fell 41% to €1.6 billion from €2.6 billion, and earnings per share declined 36% to €2.41 from €3.77 a year ago.

The luxury passenger car maker also lowered its annual dividend to €4.30 from €6.00 a year ago.

Daimler Truck Holding jumped 2.5% to €39.92 after the vehicle maker forecast operating profit to increase between 5% and 15% in 2025. 

Universal Music Group declined 8.9% to €25.46 on reports that the U.S.-based hedge fund has cut its stake in the company 

Kering SA dropped 11% to €225.0, and the fashion company announced the appointment of Demna Gvasalia as artistic director for its ailing brand Gucci, which accounts for nearly half the company's sales. 

The company confirmed that Demna will assume the role from July, and the luxury company decided to move him from Kering-owned Balenciaga. 

Demna would replace Sabato De Sarno, whose departure from Gucci was announced a month ago. 

U.S. Movers: Dollar General, DocuSign, Ulta Beauty

Scott Peters
14 Mar, 2025
New York City

Dollar General Corp. surged 7.2% to $80.26 after the discount store operator reported higher sales in the fiscal fourth quarter ending in January.

Net sales increased 4.5% to $10.30 billion from $9.86 billion, net income declined 52.4% to $191.21 million from $401.81 million, and diluted earnings per share edged down 52.5% to 87 cents from $1.83 a year ago.

Same-store sales increased 1.2% in the quarter and were up 1.4% for the full year.

The company plans to close 96 Dollar General stores and 45 Popshelf stores in the first quarter of fiscal 2025.

The company proposed a quarterly cash dividend of 59 cents per share, payable on or before April 22 to shareholders on record as of April 8.

The discount retailer guided for the fiscal 2025 net sales growth between 3.4% and 4.4%, up from $40.61 billion in 2024, and diluted earnings per share between $5.10 and $5.80, compared to $5.11 a year ago.

Same-store sales are expected to increase between 1.2% and 2.2%, and capital expenditures are estimated to be between $1.3 billion and $1.4 billion in 2025, or 3% of net sales.

The company plans to open approximately 575 new stores in the U.S. and up to 15 new stores in Mexico.

Over the last five years, Dollar General has struggled, and the company's stock is trading at the levels last seen in late 2017. 

Ulta Beauty Inc. surged 6.5% to $335.0 after the cosmetics store retailer reported increased comparable sales in the fourth quarter of 2024.

Net sales dropped 1.9% to $3.49 billion from $3.55 billion, net income edged down to $393.27 million from $394.37 million, and diluted earnings per share rose to $8.46 from $8.08 a year ago.

Comparable sales jumped 1.5% in the quarter and were up 0.7% in the full year.

The company opened nine new stores, remodeled five stores, and closed one store during the quarter.

During the year, the company opened 66 new stores, relocated two stores, remodeled 41 stores, and closed six stores.

Ulta Beauty repurchased 620,053 shares for $249.5 million in the quarter and 2.5 million shares for $1.0 billion during the year.

After the repurchases, the company has $2.7 billion remaining available under the $3.0 billion authorization announced in October 2024.

The cosmetics retailer guided for fiscal 2025 net sales to be between $11.5 billion and $11.6 billion, up from $11.29 billion a year ago, and diluted earnings per share between $22.50 and $22.90, down from $25.34 in 2024.

The company plans to open approximately 60 new stores in 2025.

DocuSign Inc. surged 11.6% to $83.40 after the e-signature development company reported increased revenue in the fiscal fourth quarter of 2025 ending in January.

Revenue jumped to $776.25 million from $712.39 million, net income surged to $83.49 million from $27.24 million, and diluted earnings per share rose to 39 cents from 13 cents a year ago.

The company completed stock repurchases for $161.7 million in the quarter and $683.5 million in the full year, compared to $145.5 million in 2024.

DocuSign guided for the first quarter revenue to be between $745 million and $749 million, up from $709.6 million in the same period in fiscal 2025.

For the full year, revenue is estimated to be between $3.13 billion and $3.14 billion, up from $2.98 billion a year ago.

U.S. Movers: Dollar General, DocuSign, Ulta Beauty

Scott Peters
14 Mar, 2025
New York City

Dollar General Corp. surged 7.2% to $80.26 after the discount stores operator reported higher sales in the fiscal fourth quarter ending in January.

Net sales increased 4.5% to $10.30 billion from $9.86 billion, net income declined 52.4% to $191.21 million from $401.81 million, and diluted earnings per share edged down 52.5% to 87 cents from $1.83 a year ago.

Same-store sales increased 1.2% in the quarter and up 1.4% for the full year.

The company plans to close 96 Dollar General stores and 45 pOpshelf stores in the first quarter of fiscal 2025.

The company proposed a quarterly cash dividend of 59 cents per share, payable on or before April 22 to shareholders on record as of April 8.

The discount retailer guided for the fiscal 2025 net sales growth between 3.4% and 4.4%, up from $40.61 billion in 2024, and diluted earnings per share between $5.10 and $5.80, compared to $5.11 a year ago.

Same-store sales are expected to increase between 1.2% and 2.2% and capital expenditures are estimated to be between $1.3 billion and $1.4 billion in 2025, or 3% of net sales.

The company plans to open approximately 575 new stores in the U.S. and up to 15 new stores in Mexico.

Ulta Beauty Inc. surged 6.5% to $335.0 after the cosmetics store retailer reported increased comparable sales in the fourth quarter of 2024.

Net sales dropped 1.9% to $3.49 billion from $3.55 billion, net income edged down to $393.27 million from $394.37 million, and diluted earnings per share fell to $8.46 from $8.08 a year ago.

Comparable sales jumped 1.5% in the quarter and up 0.7% in the full year.

The company opened nine new stores, remodeled five stores, and closed one store during the quarter.

During the year, the company opened 66 new stores, relocated two stores, remodeled 41 stores, and closed six stores.

Ulta Beauty repurchased 620,053 shares for $249.5 million in the quarter, and 2.5 million shares for $1.0 billion during the year.

After the repurchases, the company has $2.7 billion remaining available under the $3.0 billion authorization announced in October 2024.

The cosmetics retailer guided for fiscal 2025 net sales to be between $11.5 billion and $11.6 billion, up from $11.29 billion a year ago, and diluted earnings per share between $22.50 and $22.90, down from $25.34 in 2024.

The company plans to open approximately 60 new stores in 2025.

Dollar General has struggled over the last five years, and the company's stock is trading at the levels last seen in late 2017. 

DocuSign Inc. surged 11.6% to $83.40 after the e-signature development company reported increased revenue in the fiscal fourth quarter of 2025 ending in January.

Revenue jumped to $776.25 million from $712.39 million, net income surged to $83.49 million from $27.24 million, and diluted earnings per share rose to 39 cents from 13 cents a year ago.

The company completed stock repurchases for $161.7 million in the quarter and $683.5 million in the full year, compared to $145.5 million in 2024.

DocuSign guided for the first quarter revenue to be between $745 million and $749 million, up from $709.6 million in the same period in fiscal 2025.

For the full year, revenue is estimated to be between $3.13 billion and $3.14 billion, up from $2.98 billion a year ago. 

Europe Movers: Brunello Cucinelli, Henkel, Ferragamo

Inga Muller
14 Mar, 2025
Frankfurt

Brunello Cucinelli S.p.A. gained 1.2% to €110.70 after the Italian boutique retailer reported higher sales in 2024.

Revenue increased to €1.28 billion from €1.14 billion, net profit edged up to €128.51 million from €123.81 million, and diluted earnings per share rose to €1.75 from €1.68 a year ago.

The company will propose a dividend of 94 cents per share to the shareholders' meeting on April 29.

The fashion retailer invested €109.5 million, and the company is looking to finish expanding its factories by 2026.

Salvatore Ferragamo S.p.A. traded flat at €3.36 after the Italian fashion retailer reported lower sales in 2024 and remained cautious on short-term expectations.

Revenue declined to €1.03 billion from €1.16 billion, and net profit swung to a loss of €68.09 million from a profit of €26.23 million a year ago.

In the fourth quarter, the direct-to-consumer channel posted net sales in line with the same period of last year, up 0.9% at constant exchange rates and down 0.1% at current exchange rates, with positive performances in Europe, the U.S., Japan, and Latin America, offsetting the persistent weakness in the Asia Pacific area.

The wholesale channel marked a decrease in net sales, down 19.3% at constant exchange rates and down 21.9% at current exchange rates versus the same quarter in 2023, reflecting a weak demand in the Asian markets and in the travel retail channel, also affected by a different timing in deliveries compared to the fourth quarter a year ago.

As of December 2024, investments were €71 million, in line with the €72 million spent in fiscal 2023, mainly focusing on the renovations of the retail network.

Europe Movers: Brunello Cucinelli, Henkel, Ferragamo

Inga Muller
14 Mar, 2025
Frankfurt

Brunello Cucinelli S.p.A. gained 1.2% to €110.70 after the Italian boutique retailer reported higher sales in 2024.

Revenue increased to €1.28 billion from €1.14 billion, net profit edged up to €128.51 million from €123.81 million, and diluted earnings per share rose to €1.75 from €1.68 a year ago.

The company will propose a dividend of 94 cents per share to the shareholders' meeting on April 29.

The fashion retailer invested €109.5 million, and the company is looking to finish expanding its factories by 2026.

China's Bubble Tea Chain Mixue Group's IPO Attracted Huge Interest from Retail Investors

Scott Peters
03 Mar, 2025
New York City

Investors in Hong Kong bid up stock price of the rapidly expanding beverage chain across Asia. 

Mixue Group, China’s largest fresh-drink company, raised HK$3.45 billion ($444 million) in a Hong Kong initial public offering, aiming to expand its business amid heightened competition.

The company’s stock jumped in its Hong Kong trading debut on March 3, marking it the city’s most ever popular initial public offering.

Shares of the Zhengzhou-based company changed hands at HK$262 each when trading began in Hong Kong, 29.3% higher than the offer price of HK$202.50.

The opening price valued the company’s Hong Kong-listed equity base at HK$99 billion or $12.7 billion.

Offering Details

Mixue sold 17.1 million shares at HK$202.50 each, and the company's public offering's retail tranche was  oversubscribed by 6,000 times. 

Bank of America Securities, Goldman Sachs, and UBS are the joint sponsors of Mixue’s public offering.

The company plans to use the proceeds for production facilities, enhancing its brand and marketing, working capital, and general corporate purposes.

The offering attracted five cornerstone investors, who agreed to buy $200 million worth of the shares. 

They were British asset manager M&G Investments, HongShan Capital’s growth fund, a unit of Boyu Capital, a Hillhouse Group fund, and Meituan’s Long-Z Fund.

Mixue began its book-building process on February 21, with a minimum investment requirement of HK$20,454.22 for a lot of 100 shares.

A base case valuation for Mixue suggested a market capitalization of HK$96 billion or a target price of HK$254, which was 26% higher than the IPO price.

Mixue’s subscription level is comparable to that of Chinese toymaker Bloks Group, which completed its HK$1.6 billion IPO last month, with retail investors subscribing for 6,000 times the shares that were allocated to them.

Hong Kong has successfully attracted several high profile companies to list their shares,  and raise billions of dollars from investors.  

The share offering follows peers Guming Holdings Ltd.’s HK$1.81 billion listing earlier in February and Sichuan Baicha Baidao Industrial Co. Ltd.’s HK$2.6 billion IPO in April 2024.

Company History

For the nine months ended in September, Mixue said revenue increased 21.2% to 18.66 billion yuan from 15.39 billion yuan, and profit rose 45.2% to 3.49 billion yuan from 2.45 billion yuan a year ago.

The company served up around 7.1 billion drinks in the period.

Founder and chairman Zhang Hongchao began the business in 1997 in Zhengzhou, the capital of the inland province Henan, with a homemade shaved ice machine.

In 2018, the firm launched Snow King as its company logo and brand ambassador.

Today, Mixue has 45,302 stores in 300 cities and 4,900 towns  in mainland China and 11 overseas markets in Southeast Asia, Australia, Japan, and South Korea. 

The beverage chain is well-known for its affordable prices of freshly made fruit and tea drinks, ice cream, and coffee, selling for about $1.

The company may have reached the growth ceiling in the China market based on its current expansion speed, analysts said.

In 2023, Mixue created or supported approximately 785,000 job opportunities, with 68% of store employees being female.

Mixue’s individual store performance experienced fluctuations in 2022, primarily due to the disruptions caused by the COVID-19 pandemic. 

But while the company continued to scale its store network, the individual store performance has largely recovered post-pandemic since 2023.

The company’s agricultural procurement initiatives helped improve the livelihoods of approximately 167,000 farming households nationwide, and the efforts in green packaging upgrades led to a substantial reduction in the consumption of PE plastics by over 12,700 tons.

Mixue has two major brands: the freshly made tea drinks brand Mixue and the freshly made coffee brand Lucky Cup. 

Gross profit from Mixue consistently accounted for over 95% of total revenue and gross profit, while Lucky Cup had been an immaterial contributor to the revenue and gross profit.

As of September 30, 2024, more than 99% of the company’s stores were franchised stores. Its global procurement network spans 38 countries across six continents.

Through its in-house R&D and production capabilities, the company offers a one-stop ingredients solution with full categories including products of syrups, milk, tea, coffee, fruit, grains, and condiments.

Mixue has five production bases in Henan, Hainan, Guangxi, Chongqing, and Anhui, occupying a total of approximately 0.79 million square meters and having a total annual production capacity of approximately 1.65 million tons.

The company’s self-operated warehouse system and dedicated delivery network are able to support the most extensive store network in China’s freshly made drinks industry. 

The warehouse system, which is the largest in the industry, comprises 27 warehouses nationwide, totaling approximately 350,000 square meters.

Market Opportunities

China’s freshly made drinks market is projected to grow at a compounded annual growth rate of 17.6% from 2023 to 2028 to reach 1,163.4 billion yuan in 2028, according to the company's projection released in the offering document. 

Within this market, mass-market, freshly made drinks, with a price per item not higher than 10 yuan, not only address growing consumer demands for value-for-money products but also offer fresher products and an engaging consumer experience compared to other mass-market drink products in the similar price range.

Consequently, the mass-market freshly made drinks segment exhibits the highest growth rate among all segments by price range within China’s freshly made drinks market, growing at a compounded annual growth rate of 22.2% from 2023 to 2028.

The freshly made drinks market in Southeast Asia, as measured by gross merchandise value, is projected to grow at a CAGR of 19.8% from $20.1 billion in 2023 to $49.5 billion in 2028, marking the fastest growth among major markets worldwide.

Retail Investors

The retail portion of Mixue’s IPO attracted more than HK$1.6 trillion ($205.9 billion) in subscriptions, and the original size of the retail tranche was increased to 50% of the total offering size. 

Retail investors borrowed nearly HK$1.83 trillion via brokerages to subscribe to the stock, oversubscribing the offering by 5,295 times.

Thus, Mixue surpassed a record set by Ant Group’s IPO in 2020 and Kuaishou Technology’s share sale in 2021, which both attracted around HK$1.3 trillion in margin loans from retail investors.

Some investors would bet that the share price would go up in the improved market environment, as the city’s Hang Seng Index has risen more than 20% from a January low.

Futu Securities lent as much as HK$1.07 trillion, followed by Phillip Securities with HK$333 billion, and some brokers offered zero-interest and highly leveraged loans to attract clients so they could buy shares.

Analysts said that individual investors benefited from the flexible financing that came out of changes introduced by the Fast Interface for New Issuance (FINI) platform.

The FINI platform allows brokers to prepay only for the maximum number of shares allotted in a public offering, avoiding the need to lock in funds for the entire excess amount. 

The lower cost for brokers to offer margin loans had made the IPO multiples higher.

China's Bubble Tea Chain Mixue Group's IPO Attracted Huge Interest from Retail Investors

Scott Peters
03 Mar, 2025
New York City

Investors in Hong Kong bid up stock price of the rapidly expanding beverage chain across Asia. 

Mixue Group, China’s largest fresh-drink company, raised HK$3.45 billion ($444 million) in a Hong Kong initial public offering, aiming to expand its business amid heightened competition.

The company’s stock jumped in its Hong Kong trading debut on March 3, marking it the city’s most ever popular initial public offering.

Shares of the Zhengzhou-based company changed hands at HK$262 each when trading began in Hong Kong, 29.3% higher than the offer price of HK$202.50.

The opening price valued the company’s Hong Kong-listed equity base at HK$99 billion or $12.7 billion.

Offering Details

Mixue sold 17.1 million shares at HK$202.50 each, and the company's public offering's retail tranche was  oversubscribed by 6,000 times. 

Bank of America Securities, Goldman Sachs, and UBS are the joint sponsors of Mixue’s public offering.

The company plans to use the proceeds for production facilities, enhancing its brand and marketing, working capital, and general corporate purposes.

The offering attracted five cornerstone investors, who agreed to buy $200 million worth of the shares. 

They were British asset manager M&G Investments, HongShan Capital’s growth fund, a unit of Boyu Capital, a Hillhouse Group fund, and Meituan’s Long-Z Fund.

Mixue began its book-building process on February 21, with a minimum investment requirement of HK$20,454.22 for a lot of 100 shares.

A base case valuation for Mixue suggested a market capitalization of HK$96 billion or a target price of HK$254, which was 26% higher than the IPO price.

Mixue’s subscription level is comparable to that of Chinese toymaker Bloks Group, which completed its HK$1.6 billion IPO last month, with retail investors subscribing for 6,000 times the shares that were allocated to them.

Hong Kong has successfully attracted several high profile companies to list their shares,  and raise billions of dollars from investors.  

The share offering follows peers Guming Holdings Ltd.’s HK$1.81 billion listing earlier in February and Sichuan Baicha Baidao Industrial Co. Ltd.’s HK$2.6 billion IPO in April 2024.

Company History

For the nine months ended in September, Mixue said revenue increased 21.2% to 18.66 billion yuan from 15.39 billion yuan, and profit rose 45.2% to 3.49 billion yuan from 2.45 billion yuan a year ago.

The company served up around 7.1 billion drinks in the period.

Founder and chairman Zhang Hongchao began the business in 1997 in Zhengzhou, the capital of the inland province Henan, with a homemade shaved ice machine.

In 2018, the firm launched Snow King as its company logo and brand ambassador.

Today, Mixue has 45,302 stores in 300 cities and 4,900 towns  in mainland China and 11 overseas markets in Southeast Asia, Australia, Japan, and South Korea. 

The beverage chain is well-known for its affordable prices of freshly made fruit and tea drinks, ice cream, and coffee, selling for about $1.

The company may have reached the growth ceiling in the China market based on its current expansion speed, analysts said.

In 2023, Mixue created or supported approximately 785,000 job opportunities, with 68% of store employees being female.

Mixue’s individual store performance experienced fluctuations in 2022, primarily due to the disruptions caused by the COVID-19 pandemic. 

But while the company continued to scale its store network, the individual store performance has largely recovered post-pandemic since 2023.

The company’s agricultural procurement initiatives helped improve the livelihoods of approximately 167,000 farming households nationwide, and the efforts in green packaging upgrades led to a substantial reduction in the consumption of PE plastics by over 12,700 tons.

Mixue has two major brands: the freshly made tea drinks brand Mixue and the freshly made coffee brand Lucky Cup. 

Gross profit from Mixue consistently accounted for over 95% of total revenue and gross profit, while Lucky Cup had been an immaterial contributor to the revenue and gross profit.

As of September 30, 2024, more than 99% of the company’s stores were franchised stores. Its global procurement network spans 38 countries across six continents.

Through its in-house R&D and production capabilities, the company offers a one-stop ingredients solution with full categories including products of syrups, milk, tea, coffee, fruit, grains, and condiments.

Mixue has five production bases in Henan, Hainan, Guangxi, Chongqing, and Anhui, occupying a total of approximately 0.79 million square meters and having a total annual production capacity of approximately 1.65 million tons.

The company’s self-operated warehouse system and dedicated delivery network are able to support the most extensive store network in China’s freshly made drinks industry. 

The warehouse system, which is the largest in the industry, comprises 27 warehouses nationwide, totaling approximately 350,000 square meters.

Market Opportunities

China’s freshly made drinks market is projected to grow at a compounded annual growth rate of 17.6% from 2023 to 2028 to reach 1,163.4 billion yuan in 2028, according to the company's projection released in the offering document. 

Within this market, mass-market, freshly made drinks, with a price per item not higher than 10 yuan, not only address growing consumer demands for value-for-money products but also offer fresher products and an engaging consumer experience compared to other mass-market drink products in the similar price range.

Consequently, the mass-market freshly made drinks segment exhibits the highest growth rate among all segments by price range within China’s freshly made drinks market, growing at a compounded annual growth rate of 22.2% from 2023 to 2028.

The freshly made drinks market in Southeast Asia, as measured by gross merchandise value, is projected to grow at a CAGR of 19.8% from $20.1 billion in 2023 to $49.5 billion in 2028, marking the fastest growth among major markets worldwide.

Retail Investors

The retail portion of Mixue’s IPO attracted more than HK$1.6 trillion ($205.9 billion) in subscriptions, and the original size of the retail tranche was increased to 50% of the total offering size. 

Retail investors borrowed nearly HK$1.83 trillion via brokerages to subscribe to the stock, oversubscribing the offering by 5,295 times.

Thus, Mixue surpassed a record set by Ant Group’s IPO in 2020 and Kuaishou Technology’s share sale in 2021, which both attracted around HK$1.3 trillion in margin loans from retail investors.

Some investors would bet that the share price would go up in the improved market environment, as the city’s Hang Seng Index has risen more than 20% from a January low.

Futu Securities lent as much as HK$1.07 trillion, followed by Phillip Securities with HK$333 billion, and some brokers offered zero-interest and highly leveraged loans to attract clients so they could buy shares.

Analysts said that individual investors benefited from the flexible financing that came out of changes introduced by the Fast Interface for New Issuance (FINI) platform.

The FINI platform allows brokers to prepay only for the maximum number of shares allotted in a public offering, avoiding the need to lock in funds for the entire excess amount. 

The lower cost for brokers to offer margin loans had made the IPO multiples higher.

Japan Indexes Advance 1% After a Week of Turbulent Trading

Akira Ito
14 Mar, 2025
Tokyo

Stock market indexes in Tokyo rebounded in Friday's trading as bargain hunters returned despite escalating global trade tensions. 

The Nikkei 225 stock average gained 0.9% and extended the weekly rise to 1.0%; the TOPIX advanced 0.9% and extended the weekly gain to 0.95%. 

Despite the market rebound, sentiment remained fragile as investors feared a new round of U.S. tariffs could target Japan's exports.

The Trump administration announced 200% tariffs on alcoholic beverages from the European Union after the region of 27 nations retaliated with its own tariffs of 50% on U.S. whiskey. 

The it-for-tat tariffs could spiral out of control and drag down global goods trade, shrink global economic growth, and reorder supply chains away from the U.S. 

Closer to home, investors reviewed the latest comments from Bank of Japan Governor Kazuo Ueda targeting the need to shrink the central bank's balance sheet. 

The Bank of Japan is likely to announce its rate hike decision at the end of two-day policy meeting on March 19, amid rising wages and inflation above 2%. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.9% to 37,095.73 and TOPIX gained 0.8% to 2,718.86. 

Advantest Corp. gained 5.3% to ¥8,245.0, Keyence Corp. advanced 2.2% to ¥61,400.0, Disco Corp. increased 3.7% to ¥35,700.0. 

Seven & Holdings Co. Ltd. decreased 1.8% to ¥2,168.0, and the Canada-based Couche Tard ramped up its campaign to convince shareholders to accept its hostile deal. 

Defense related stocks advanced for the second week in a row amid expectations that Japanese government will ramp up its arms purchases. 

Kawasaki Heavy Industries jumped 3.3% to ¥9,166.0, IHI Corp. gained 1.6% to ¥10,775.0, and Mitsubishi Heavy Industries increased 2.5% to ¥2,556.0. 

Japan Indexes Advance 1% After a Week of Turbulent Trading

Akira Ito
14 Mar, 2025
Tokyo

Stock market indexes in Tokyo rebounded in Friday's trading as bargain hunters returned despite escalating global trade tensions. 

The Nikkei 225 stock average gained 0.9% and extended the weekly rise to 1.0%; the TOPIX advanced 0.9% and extended the weekly gain to 0.95%. 

Despite the market rebound, sentiment remained fragile as investors feared a new round of U.S. tariffs could target Japan's exports.

The Trump administration announced 200% tariffs on alcoholic beverages from the European Union after the region of 27 nations retaliated with its own tariffs of 50% on U.S. whiskey. 

The it-for-tat tariffs could spiral out of control and drag down global goods trade, shrink global economic growth, and reorder supply chains away from the U.S. 

Closer to home, investors reviewed the latest comments from Bank of Japan Governor Kazuo Ueda targeting the need to shrink the central bank's balance sheet. 

The Bank of Japan is likely to announce its rate hike decision at the end of two-day policy meeting on March 19, amid rising wages and inflation above 2%. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.9% to 37,095.73 and TOPIX gained 0.8% to 2,718.86. 

Advantest Corp. gained 5.3% to ¥8,245.0, Keyence Corp. advanced 2.2% to ¥61,400.0, Disco Corp. increased 3.7% to ¥35,700.0. 

Seven & Holdings Co. Ltd. decreased 1.8% to ¥2,168.0, and the Canada-based Couche Tard ramped up its campaign to convince shareholders to accept its hostile deal. 

Defense related stocks advanced for the second week in a row amid expectations that Japanese government will ramp up its arms purchases. 

Kawasaki Heavy Industries jumped 3.3% to ¥9,166.0, IHI Corp. gained 1.6% to ¥10,775.0, and Mitsubishi Heavy Industries increased 2.5% to ¥2,556.0. 

Bargain Hunters Lift China and Hong Kong Stocks, AIA Reports Record Earnings In 2024

Li Chen
14 Mar, 2025
Hong Kong

Stock market indexes rebounded in China and Hong Kong as investors searched for bargains and overlooked another round of fresh tariffs announced by the U.S. 

The Hang Seng index soared nearly 3%, and the mainland-focused CSI 300 index advanced nearly 2.5%, and benchmark indexes halted a five-day decline.

Stock market volatility reached a new high this week amid escalating trade tensions between the U.S. and Europe, and the U.S. announced its plans to expand its tariffs to shipments from Japan. 

Moreover, Russia rejected a peace plan proposed by the U.S. for a 30-day ceasefire with Ukraine, as the war continues into the fourth year with no end in sight. 

After today's rally, the Hang Seng index erased weekly losses of more than 3%, and the CSI 300 index gained 1.7% in the period.

The Friday's market surge was partly driven by the expectations of a policy shift announcement scheduled on Monday, and investors are hoping that policymakers will provide detailed implementation plans for the previously announced stimulus measures.

In overnight trading in New York, the S&P 500 index closed down 1.4% and the Nasdaq Composite plunged 2%, and benchmark indexes extended losses to more than 10% from the peak in mid-February.

China Indexes and Stocks 

The Hang Seng index soared 2.5% to 24,047.46, and the mainland-focused CSI 300 index advanced 2.4% to 4,004.21. 

Alibaba Group Holding jumped 3.3% to HK $135.80, Tencent Holdings advanced 3.7% to HK $526.0, Baidu Inc. increased 2.2% to HK $91.45, and JD.com Inc. added 4.5% to HK $164.40.

Electric vehicle makers advanced in Friday's trading, as investors anticipated additional support by the government to lift domestic sales. 

Li Auto advanced 1% to HK $111.60, BYD jumped 4.9% to HK $378.60, and Xpeng Inc. decreased 4.3% to HK $91.35.

AIA Group Ltd. decreased 2.8% to HK $61.05 despite the insurance company reporting a surge in 2024 profit. 

The insurance company said net income in 2024 advanced 82% to $6.4 billion, driven by an 18% increase in new business value to $4.71 billion.

Mainland customers continued to buy Hong Kong dollar-denominated health and life insurance policies to hedge against the potential future decline in the yuan. 

New business revenue in Hong Kong advanced 23% to $1.8 billion, in mainland China soared 20% to $1.2 billion, and in Thailand and Singapore advanced 15%, followed by 10% gains in Malaysia. 

The insurance company announced a final dividend of HK $1.3098, increasing the total dividend by 9% from a year ago to HK $1.7548.

As a part of the company's goal to return capital to shareholders, the insurance company announced a $1.6 billion stock repurchase plan. 

Bargain Hunters Lift China and Hong Kong Stocks, AIA Reports Record Earnings In 2024

Li Chen
14 Mar, 2025
Hong Kong

Stock market indexes rebounded in China and Hong Kong as investors searched for bargains and overlooked another round of fresh tariffs announced by the U.S. 

The Hang Seng index soared nearly 3%, and the mainland-focused CSI 300 index advanced nearly 2.5%, and benchmark indexes halted a five-day decline.

Stock market volatility reached a new high this week amid escalating trade tensions between the U.S. and Europe, and the U.S. announced its plans to expand its tariffs to shipments from Japan. 

Moreover, Russia rejected a peace plan proposed by the U.S. for a 30-day ceasefire with Ukraine, as the war continues into the fourth year with no end in sight. 

After today's rally, the Hang Seng index erased weekly losses of more than 3%, and the CSI 300 index gained 1.7% in the period.

The Friday's market surge was partly driven by the expectations of a policy shift announcement scheduled on Monday, and investors are hoping that policymakers will provide detailed implementation plans for the previously announced stimulus measures.

In overnight trading in New York, the S&P 500 index closed down 1.4% and the Nasdaq Composite plunged 2%, and benchmark indexes extended losses to more than 10% from the peak in mid-February.

China Indexes and Stocks 

The Hang Seng index soared 2.5% to 24,047.46, and the mainland-focused CSI 300 index advanced 2.4% to 4,004.21. 

Alibaba Group Holding jumped 3.3% to HK $135.80, Tencent Holdings advanced 3.7% to HK $526.0, Baidu Inc. increased 2.2% to HK $91.45, and JD.com Inc. added 4.5% to HK $164.40.

Electric vehicle makers advanced in Friday's trading, as investors anticipated additional support by the government to lift domestic sales. 

Li Auto advanced 1% to HK $111.60, BYD jumped 4.9% to HK $378.60, and Xpeng Inc. decreased 4.3% to HK $91.35.

AIA Group Ltd. decreased 2.8% to HK $61.05 despite the insurance company reporting a surge in 2024 profit. 

The insurance company said net income in 2024 advanced 82% to $6.4 billion, driven by an 18% increase in new business value to $4.71 billion.

Mainland customers continued to buy Hong Kong dollar-denominated health and life insurance policies to hedge against the potential future decline in the yuan. 

New business revenue in Hong Kong advanced 23% to $1.8 billion, in mainland China soared 20% to $1.2 billion, and in Thailand and Singapore advanced 15%, followed by 10% gains in Malaysia. 

The insurance company announced a final dividend of HK $1.3098, increasing the total dividend by 9% from a year ago to HK $1.7548.

Growing Worries of U.S. Economic Recession Drag Down Wall Street Indexes

Barry Adams
13 Mar, 2025
New York City

Stocks struggled in New York amid growing worries about the health of the U.S. economy and future rate path. 

The S&P 500 index declined 0.4%, and the Nasdaq Composite fell as much as 0.9% and extended weekly losses to 3%.

Benchmark indexes are likely to close down for the fourth week in a row, as the Trump administration doubles down on global tariff trade policy despite its impact on consumers and the broader economy. 

The European Union slapped tariffs on American products, including whiskey and motorcycles, in retaliation to the U.S. tariff on steel and other manufactured products. 

Investors are concerned that the constantly changing Trump administration's tariff wars are adding another layer to the market volatility, economic uncertainty, and turmoil in the world trade. 

However, the latest producer price inflation report showed that those tariff wars, so far, have not fueled inflation. 

Producer price inflation was 3.2% in February, slower than the revised 3.7% in January, the U.S. Bureau of Labor Statistics reported Thursday.

Core inflation, which excludes volatile energy, food prices, and services, slowed to a ten-month low of 3.3% in February.

Despite the slowdown in consumer and producer price inflation, both measures are still higher than 2%, suggesting that elevated levels are here to stay for several months or longer.

Weekly jobless claims in the first week in March edged down 2,000 to 220,000, and continuing claims which lag by a week dropped 27,000 to 1.87 million, the U.S. Bureau of Labor Statistics reported Thursday. 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.4% to 5,577.78, the Nasdaq Composite edged down 0.7% to 17,525.10, and the Russell 2000 index was up 0.05% to 2,027.50.

The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes increased to 4.34%, and 30-year Treasury bonds advanced to 4.65%.

WTI crude oil decreased $0.66 to $67.02 a barrel, and natural gas prices edged lower by $0.10 to $3.98 a therm. unit.

Gold increased by $6.15 to $2,944.12 an ounce, and silver edged down by $0.17 to $33.10.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased 0.44 to 104.06 and traded at a two-year high.

U.S. Stock Movers

Adobe Inc. dropped 10.9% to $391.38 after the graphic design software developer reported strong results for the fiscal first quarter of 2025 ending in February, but the company's weak sales outlook failed to impress investors. 

The company guided second quarter revenue to range between $5.77 billion and $5.82 billion, up from $5.31 billion a year ago, and earnings per share between $3.80 and $3.85, up from $3.49 in the same period in 2024.

American Eagle Outfitters Inc. dropped 5.1% to $10.86 after the specialty apparel retailer reported comparable sales growth of 3% in the fiscal fourth quarter of 2024.

However, the specialty apparel retailer estimated current quarter sales growth in the "mid-single-digit," lower than the market expectation of at least a 1% increase. 

SentinelOne declined 3% to $18.68, and the cybersecurity company's quarterly results surpassed market expectations, but the current quarter sales outlook of $228 million fell short of market expectations. 

Intel Corp. jumped 16% to $24.08 after the company appointed a new chief executive to lead its turnaround efforts. 

Lip-Bu Tan, former chief executive of Cadence Design Systems, will assume the top position and lead the company's effort in setting up its foundry operation and accelerate its new chip designs. 

Growing Worries of U.S. Economic Recession Drag Down Wall Street Indexes

Barry Adams
13 Mar, 2025
New York City

Stocks struggled in New York amid growing worries about the health of the U.S. economy and future rate path. 

The S&P 500 index declined 0.4%, and the Nasdaq Composite fell as much as 0.9% and extended weekly losses to 3%.

Benchmark indexes are likely to close down for the fourth week in a row, as the Trump administration doubles down on global tariff trade policy despite its impact on consumers and the broader economy. 

The European Union slapped tariffs on American products, including whiskey and motorcycles, in retaliation to the U.S. tariff on steel and other manufactured products. 

Investors are concerned that the constantly changing Trump administration's tariff wars are adding another layer to the market volatility, economic uncertainty, and turmoil in the world trade. 

However, the latest producer price inflation report showed that those tariff wars, so far, have not fueled inflation. 

Producer price inflation was 3.2% in February, slower than the revised 3.7% in January, the U.S. Bureau of Labor Statistics reported Thursday.

Core inflation, which excludes volatile energy, food prices, and services, slowed to a ten-month low of 3.3% in February.

Despite the slowdown in consumer and producer price inflation, both measures are still higher than 2%, suggesting that elevated levels are here to stay for several months or longer.

Weekly jobless claims in the first week in March edged down 2,000 to 220,000, and continuing claims which lag by a week dropped 27,000 to 1.87 million, the U.S. Bureau of Labor Statistics reported Thursday. 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.4% to 5,577.78, the Nasdaq Composite edged down 0.7% to 17,525.10, and the Russell 2000 index was up 0.05% to 2,027.50.

The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes increased to 4.34%, and 30-year Treasury bonds advanced to 4.65%.

WTI crude oil decreased $0.66 to $67.02 a barrel, and natural gas prices edged lower by $0.10 to $3.98 a therm. unit.

Gold increased by $6.15 to $2,944.12 an ounce, and silver edged down by $0.17 to $33.10.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased 0.44 to 104.06 and traded at a two-year high.

U.S. Stock Movers

Adobe Inc. dropped 10.9% to $391.38 after the graphic design software developer reported strong results for the fiscal first quarter of 2025 ending in February, but the company's weak sales outlook failed to impress investors. 

The company guided second quarter revenue to range between $5.77 billion and $5.82 billion, up from $5.31 billion a year ago, and earnings per share between $3.80 and $3.85, up from $3.49 in the same period in 2024.

American Eagle Outfitters Inc. dropped 5.1% to $10.86 after the specialty apparel retailer reported comparable sales growth of 3% in the fiscal fourth quarter of 2024.

However, the specialty apparel retailer estimated current quarter sales growth in the "mid-single-digit," lower than the market expectation of at least a 1% increase. 

SentinelOne declined 3% to $18.68, and the cybersecurity company's quarterly results surpassed market expectations, but the current quarter sales outlook of $228 million fell short of market expectations. 

Intel Corp. jumped 16% to $24.08 after the company appointed a new chief executive to lead its turnaround efforts. 

Lip-Bu Tan, former chief executive of Cadence Design Systems, will assume the top position and lead the company's effort in setting up its foundry operation and accelerate its new chip designs.