Latest news for Coolpad Group (OTC:CHWTF) Stock

Coolpad Group Ltd is an investment holding company that develops and provides integrated solutions for smartphone sets, mobile data platform systems, and value-added businesses in Mainland China and internationally. It operates in two segments: Mobile Phone; and Property Investment. The Mobile Phone segment which derives the majority of revenue engages in the research, development, production, and sale of mobile phones and related accessories and the provision of wireless application service, and the property investment segment invests in properties for rental income potential and for capital appreciation. It generates a majority of its revenue from Mainland China.

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Positive economic data for China growth and the approved restructuring of a major property developer lifted stocks in Hong Kong Thursday in the mid-morning session, although most failed to hold onto the gains in the afternoon.

Hang Seng Index was flat by end of the trading day, just 10 basis points higher at 17,212.43 points.

Hong Kong Stocks Gain Some Steam Back After Citigroup Declares China&#39;s &#34;Cyclical Bottom Is Here&#34;

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In the most recent November elections, fully 67% of New Jersey&#39;s adult voters came out to say yes to legalize cannabis.

New Jersey&#39;s Recreational Cannabis Program May Be &#39;A Wreck&#39; But A Few Companies Could Emerge As Winners

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Positive economic data for China growth and the approved restructuring of a major property developer lifted stocks in Hong Kong Thursday in the mid-morning session, although most failed to hold onto the gains in the afternoon.

Hang Seng Index was flat by end of the trading day, just 10 basis points higher at 17,212.43 points.

Citgroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) <a href="https://www.bloomberg.com/news/articles/2023-10-05/citi-raises-china-gdp-forecast-saying-economy-has-bottomed-out?srnd=premium-asia" style="color:#0563c1">raised</a> its growth forecast for China to 5% for 2023 from 4.7% previously, citing expected improved retail sales and industrial production and a turn-around in <a href="https://www.benzinga.com/markets/penny-stocks/23/10/35096939/mid-week-in-china-a-tough-export-climate-more-property-woes-sink-hong-kong-stocks" style="color:#0563c1">export contraction that has plagued the local economy</a>.

&ldquo;The cyclical bottom is here, with all eyes on whether organic demand will pick up amid gathering policy momentum,&rdquo; Citi economist Yu Xiangrong wrote in the bank&rsquo;s report on the world&rsquo;s second-largest economy.

Retailers Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Trip.com Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>) rose in the morning session but ended around 0.5% lower on the day but JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) was up convincingly by 1% on the day.

Chinese retail spending in the first half of the domestic National Golden Week Holiday in China increased 8.3% while domestic tourism revenues have increased 5% from the same year-ago period according to HSBC Holdings Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSBC#NYSE">HSBC</a>). Approximately 900 million trips will be made by travelers during this week&rsquo;s annual 7-day break, China&rsquo;s Ministry of Culture and Tourism said.

Among exporters and industrial stocks, JD Logistics Inc. ended the day 0.7% higher, telco Coolpad Group Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CHWTF#OTC">CHWTF</a>) leaped 6% and Hong Kong IoT mobile provider SIM Technology Group Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SIMTF#OTC">SIMTF</a>) jumped 3%. &nbsp;

Sunac China Holdings Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SNCNF#OTC">SNCNF</a>) became the first Chinese property developer to successfully manage to restructure its debt after a Hong Kong court <a href="https://www.caixinglobal.com/2023-10-05/sunac-wins-court-approval-for-offshore-debt-restructuring-plan-102114126.html" style="color:#0563c1">declared</a> that the company could go ahead with the $10.2 billion debt reorganization. The approval comes on the back of a 98% approval vote by Sunac&rsquo;s creditors two weeks ago. About $5.7 billion of the delinquent bonds are expected to be replaced by new dollar-denominated convertible debt in Sunac.

The developer has fallen to 16th place from 3rd among China&rsquo;s leading developers by total number of developments under management as part of the long-and-winding saga that resulted in a previous default on dollar-denominated bonds in May 2022.

Investors appeared to sigh with relief at the news and snapped up Sunac stock in the Hong Kong session, with the shares ending the day 6.3% higher. Longfor Group Holdings Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LGFRY#OTC">LGFRY</a>) traders hopped on for the ride, rising 1.9%. China Aoyuan Group Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CAOYF#OTC">CAOYF</a>) and China Evergrande Group Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EGRNF#OTC">EGRNF</a>), which still remain beset by debt uncertainty, declined however, diving 2.2% and 11%, respectively.

Hong Kong Stocks Gain Some Steam Back After Citigroup Declares China's "Cyclical Bottom Is Here"

In the most recent&nbsp;November elections,&nbsp;fully&nbsp;67% of New Jersey&#39;s adult voters came out to say&nbsp;yes to&nbsp;<a href="https://www.benzinga.com/markets/cannabis/20/11/18200781/new-jersey-legalizes-use-of-recreational-cannabis-on-election-day" target="_blank">legalize&nbsp;cannabis</a>.

The new cannabis law, signed by Governor Phil Murphy in February,&nbsp;had a deadline of Aug. 21 for the New Jersey&nbsp;Cannabis Regulatory Commission to create its rules and regulations. The&nbsp;commission complied.

However,&nbsp;out of the state&#39;s 565 municipalities, several have chosen not to allow the creation of recreational cannabis program. These municipalities, however, hold the right to change their decision in the future and jump in to create&nbsp;recreational programs.

Cantor Fitzgerald&nbsp;analyst Pablo Zuanic shared his &ldquo;Brief thoughts on the coming New Jersey rec (or is it wreck?) program&rdquo;&nbsp;in his Tuesday note.

&ldquo;We fear New Jersey may not live up to expectations, at least initially,&rdquo; Zuanic began.

New Jersey&#39;s&nbsp;cannabis sales are expected to&nbsp;start&nbsp;on Feb.&nbsp;15 at the latest, according to an announcement from state regulators.

Lethargic Start&nbsp;

Referring to the&nbsp;NJ state cannabis commission as being &ldquo;far from nimble,&rdquo;&nbsp;approval of new license applications will be slow, said Zuanic, adding that the main concern is not only&nbsp;a sluggish&nbsp;start but a&nbsp;low number of shops.&nbsp;&ldquo;Only eight stores for a population of 9 million, plus &lsquo;visitors&rsquo; from Pennsylvania, Connecticut and New York.&rdquo;

As a comparison, Zuanic looked at&nbsp;Arizona,&nbsp;population&nbsp;7 million, which&nbsp;had 70 stores up and ready to sell&nbsp;adult-use cannabis on the first day of the program. And&nbsp;despite that, the &ldquo;long lines made TV headlines.&rdquo;

&ldquo;We fear a &#39;hiking&#39;&nbsp;trip to the Berkshires in western Massachusetts may be more time eﬃcient (and healthier) than standing in line for hours in one of those eight New Jersey towns come February,&rdquo; Zuanic pointed out.

TerrAscend Gets Exclusivity In Two Places 

There are several publicly traded cannabis operators&nbsp;positively positioned for the new cannabis program in New Jersey, such as AYR Wellness (OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/AYRWF" target="_blank">AYRWF</a>) and Verano Holdings (OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/VRNOF" target="_blank">VRNOF</a>), Zuanic noted. Both companies hold two of the 10 licenses for medical marijuana operations in the state. Of the other eight, six are publicly traded -&nbsp;Acreage Holdings&nbsp;(OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/ACRHF" target="_blank">ACRHF</a>),&nbsp;Ascend Wellness&nbsp;(OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/AAWH" target="_blank">AAWH</a>),&nbsp;Curaleaf&nbsp;(OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/CURLF" target="_blank">CURLF</a>),&nbsp;Green Thumb&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/quote/GTBIF" target="_blank">GTBIF</a>),&nbsp;TerrAscend&nbsp;(OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/TRSSF" target="_blank">TRSSF</a>)&nbsp;and&nbsp;Columbia Care&nbsp;(OTCQX:&nbsp;<a href="https://www.benzinga.com/quote/CCHWF" target="_blank">CHWTF</a>).

What gives Ayr Wellness and Verano a competitive&nbsp;advantage? They&nbsp;have three stores each in areas where the state recreational cannabis program has been approved.

To make things more complicated comes the exclusivity some cannabis operators have obtained due to the rules set. For example, in Phillipsburg, the town council chose to opt out and ban all future recreational stores, though&nbsp;it would allow the existing alternative care center (ATC) to sell both medical and adult-use cannabis, explained Zuanic.

The ATC in Phillipsburg is owned by TerrAscend, which in this manner would be granted exclusivity in this town. The same thing is happening in the township of Maplewood, added the analyst. &nbsp;

&ldquo;We understand these types of decisions may eventually be challenged in court, and on the surface also seem contrary to what the New Jersey Cannabis Regulatory Commission (CRC) is trying to accomplish regarding social equity participation. Yes, the CRC gives towns the right to opt out, but does it give them the right to oﬀer exclusivity to certain operators?&rdquo; Zuanic asked.

Photo: Courtesy of <a href="https://unsplash.com/@manisharaghunath?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Manisha Raghunath</a> on <a href="https://unsplash.com/s/photos/new-jersey?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>

New Jersey's Recreational Cannabis Program May Be 'A Wreck' But A Few Companies Could Emerge As Winners

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