⚡️ China's EV market is blowing up

Companies are already raking in the cash | China hit the gas on car sales | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for January 12th in 3:06 minutes. 🍵 Finimized over a ginger mint tea at [Salvation Cafe]( in Johannesburg, South Africa (🌥 27°C/81°F) Today's big stories - Companies have already raised more than $100 billion from bonds this year - Goldman Sachs is expecting interest rates to rise fast this year, and there are six ways you can prepare – [Read Now]( - China sold nearly three times more hybrid and electric vehicles last year Desperate Times [Desperate Times] What’s Going On Here? Data out on Tuesday [showed]( companies sold over $100 billion worth of bonds last week – before they have to resort to more desperate fundraising measures… What Does This Mean? The first week of the year’s always a busy time for the bond market, but this one’s been busier than most – not least because companies are scrambling to raise money before interest rate hikes push up the cost of borrowing. In fact, companies have raised over $100 billion selling bonds in what’s become the second-biggest start to a year on record. Investors aren’t just sniffing around low-risk debt either: pandemic-battered cruise operator Royal Caribbean raised $1 billion last week, and AMC Entertainment – which had a brush with bankruptcy in the height of the pandemic – is reportedly thinking about getting in on the action too. Why Should I Care? The bigger picture: Time is of the essence. Companies are right to get a move on, with news emerging [last week]( that the Federal Reserve is thinking about upping interest rates sooner than expected. And since traders are [betting]( that there could be as many as eight rate hikes by early 2024, selling debt might get very expensive very quickly. Investors are okay with it: they’ve already started withdrawing their orders for new bonds, in hopes it’ll only be a couple of months before they can buy into them at higher yields. Zooming out: The backup plan. It stands to reason, then, that companies aren’t just relying on debt to raise cash, but venture capital (VC) too. Just look at Getir: the Turkish grocery delivery company is reportedly [looking]( for more than $1 billion in investment from VC firms, in a move that would see the company valued at $12 billion ([tweet this](). That’s an ambitious goal, but they might be knocking at the right door: American VC funds raised a [record]( amount of cash last year. You might also like: [How to profit from this sudden supply of bonds.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Desperate Times&utm_campaign=daily-global-12-01-2022&utm_source=email) Analyst Take Buckle Up For Breakneck Interest Rate Hikes [Buckle Up For Breakneck Interest Rate Hikes]( [Photo of Reda] Reda, Analyst What’s Going On Here? First, details from the Federal Reserve’s December meeting released last week [suggested]( it’ll raise US interest rates sooner than expected. Then, this week, Goldman Sachs argued that the Fed will raise them four times this year – a [breakneck pace](, by central bank standards. And that means it’s more urgent than ever to [build a rate hike-proof portfolio](. There are [six ways]( to do that, from [swapping out certain stock allocations]( to [tweaking your bond portfolio](. So that’s today’s Insight: [the six things you can do to protect yourself from interest rate hikes](. [Read or listen to the Insight here]( SPONSORED BY FUND THAT FLIP The new wave of investing is here Using your precious free time to scour Wall Street Bets on Reddit can get pretty old pretty fast. That’s why, this year, you might want to sit back, relax, and roll out some [smart passive investments](. [Fund That Flip]( is an easy-to-use [crowdfunding platform]( that enables you to invest in real estate, so you get to bolster your portfolio with a reliable passive income. That doesn’t mean compromising on returns, mind you: Fund That Flip investors can [earn up to 9.5% a year]( on their investments, and you can [get started]( with just $1,000. You’ll have peace of mind too, since every new project is carefully reviewed by [Fund That Flip’s]( expert team to make sure it meets their standards. Let the experts do the hard work for you: [try Fund That Flip today](. [Ride The New Wave]( Large And In Charge [Large And In Charge] What’s Going On Here? Data out on Tuesday showed China sold almost three times more hybrid and fully electric vehicles (EVs) last year than in 2020. That’ll show the gas-guzzlers who’s boss. What Does This Mean? Chinese car sales had a remarkably strong year, with the country’s drivers buying 21 million vehicles in 2021– almost 5% more than the year before and only 5% less than a pandemic-free 2019. But it was hybrids and EVs that stole the show: customers bought almost three times as many of these “new energy vehicles” as they did in 2020. And things might only be about to get greener: the Chinese government has said it’ll stop offering subsidies for EV purchases from 2023, meaning the country’s drivers are likely to take advantage while they still can. That could be why the China Passenger Car Association is expecting Chinese EV sales to hit 6 million this year – almost twice as many as 2021. And if it’s right, new energy vehicles will represent around 20% of the country’s total car sales. Why Should I Care? The bigger picture: A showcase in doing things right. Volkswagen still somehow managed to fumble the ball: the carmaker [said]( on Tuesday that it sold 14% fewer cars in China last year, mostly because the chip shortage caused all sorts of production issues. No such problems for Tesla: the EV maker – whose close relationships with suppliers [helped]( it come through the chip shortage relatively unscathed – saw car sales in the country more than double in 2021. Zooming out: Airbus is grounded. EV companies might be thriving, but China isn’t fertile ground for everyone: Airbus [warned]( on Tuesday that the country’s hardline anti-Omicron tactics could cause the planemaker a major headache. After all, the company could be forced to close one of its key factories in the country, while its Chinese customers might not want to add any planes to their runways until they know their customers are here to stay. You might also like: [How to invest in the auto industry in 2022.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Large And In Charge&utm_campaign=daily-global-12-01-2022&utm_source=email) 💬 Quote of the day “Learn as if you will live forever, live like you will die tomorrow.” Mahatma Gandhi (an Indian lawyer, anti-colonial nationalist, and political ethicist) [Tweet this]( 🌎 Finimize Live 🙌 Easy as 1,2,3 Here’s why you should come to our [Three Reasons To Invest In Chinese Stocks]( event on Tuesday: - You want to keep up with the latest investment opportunities. - You’re interested in what’s happening in China right now. - You missed us over the holidays.  ✅ [How Will The Stock Market Perform In 2022?](: 6pm UK time, January 13th 🇨🇳 [Three Reasons To Invest In Chinese Stocks](: 5pm UK time, January 18th 🏡 [An Alternative Way To Invest In Real Estate](: 5pm UK time, January 19th 📲 [Investing In DAOs](: 5pm UK time, January 25th ⚡️ [How To Invest In The Energy Transition](: 6pm UK time, January 26th 🎟 [How NFTs Will Transform The Future Of Events](: 5pm UK time, January 27th 🔥 [Your Guide To New Investing Opportunities](: 6pm UK time, January 28th 🚀 [Will The Future Be Tokenized?](: 6pm UK time, January 31st 💸 [How To Earn A Passive Income From Franchise Investing](: 6pm UK time, February 1st 🎯 On Our Radar - Spaghetti with a side of déjà vu. 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