It is unrealistic to stimulate economic development through real estate, so a new model is needed to absorb the excess money supply and transfer it to residents through new infrastructure projects.
The lithium battery technology developed by Kechuang Biotechnology can have a positive impact on macroeconomic policies.
The increased penetration rate of new energy vehicles has led to a significant increase in electricity consumption, which has spurred greater efforts in the construction of ultra-high voltage power transmission lines and green energy projects.
The battery swapping standard, which had been difficult to promote before, can now be implemented.
A major problem with new energy vehicles is that charging takes time; it takes five minutes to refuel but half an hour to charge.
Therefore, some people came up with a solution: battery replacement. New energy vehicles can replace their depleted batteries with charged ones at charging stations, which also only takes five minutes.
China introduced a national-level battery swapping standard as early as 2021.
However, due to differences in battery models and standards between different manufacturers, as well as differences between batteries in older and newer models, the battery types used in these vehicles are not the same.
Even with national-level battery swapping standards, battery swapping still cannot be promoted.
The battery swapping industry is also part of the new infrastructure initiative, and it can absorb a large portion of the excess currency issuance.
“Okay, we will sign relevant agreements with various manufacturers, requiring them to use our technology to produce lithium batteries of the same standard.”
The fact that Kechuang Bio is pushing this initiative is a market-driven behavior, essentially trading profits for the compromises of various battery manufacturers.
Originally, Kechuang Biotechnology might have only required battery manufacturers to provide economic benefits, but now that the government has intervened, battery manufacturers need to provide other benefits.
"Another thing is that as an excellent company, Kechuang Bio can contact state-owned enterprises when it lacks funds. Whether it is CICC or Huaguo Investment, they are willing to provide assistance."
......
According to the website of the State Intellectual Property Office of China, Kechuang Biotechnology has applied for a patent for a technology related to cathode materials for lithium-ion batteries. The applicant for this patent is Zheng Li, chairman of Kechuang Biotechnology, and the application was filed in February 2023.
The patent specification states that this technology can improve the energy density of lithium metal batteries, reaching a breakthrough of 700Wh/kg, and can also improve battery stability.
Data released by Kechuang Biotechnology shows that the single-cell energy density of lithium-ion batteries using its new cathode material reaches 700 Wh/kg...
As soon as the news broke, Kechuang Bio's stock price immediately hit the daily limit up at the opening of trading the next day, and all stocks in the lithium extraction from salt lakes and lithium mining sectors surged.
On the contrary, battery manufacturers are experiencing a decline.
Because the situation is completely unclear, there is no accurate information on whether Kechuang Biotechnology will grant patents or build its own factory for production.
Outsiders can only speculate that, as is customary, the company will grant patents, but only a few people know for sure whether this will actually happen.
Battery manufacturers only saw minor declines, but CATL experienced a significant drop.
Since lithium batteries can achieve 700Wh/kg, the commercialization of their sodium-ion battery technology is even more distant.
Moreover, the amount of capital in the A-share market is limited. When the Science and Technology Innovation Board's biotech sector hit its daily limit, it had a siphon effect on other large-cap stocks, drawing away all the capital.
Both CATL and Kweichow Moutai are falling, but CATL's fall is more severe.
"Science and Technology Innovation Biotechnology is indeed worthy of its name. I bought a lot when it went public and I was right to do so. I'm keeping it for my daughter as a gift when she comes of age."
My only regret is not buying more.
"I never expected that you, Kechuang Biotechnology, with your thick eyebrows and big eyes, would also go into the new energy field? So the previous surge in the salt lake lithium extraction sector was all because of you."
"There's a 100% chance that the information was leaked in advance; these agencies all jumped the gun."
"The technology is still on paper and far from being implemented. It's still uncertain whether Kechuang Bio's cathode material can be implemented on a large scale."
"The capital market has reacted so strongly, rising for a month since the end of January. It must be able to be implemented on a large scale, otherwise the reaction would not be so strong."
"Science and Technology Innovation Biotechnology is amazing. It is one of the few companies in China that truly possesses core technologies. Fortunately, there are such technology companies, so that the Chinese stock market is not full of companies with strong or overly sophisticated technology."
“Kechuang Bio has such great positive news every year. It’s really a continuous stream of good news. You know, Kechuang Bio also has a brain-computer interface VR to be released this year. I feel that the current valuation is still low.”
There has been a persistent claim in China that the US stock market is a bubble, but in reality, the valuations of major US companies are not that high.
On the contrary, the valuations of many Chinese companies have skyrocketed.
To give a simple example, TSMC's forward P/E ratio is 26.6, while its benchmark SMIC's P/E ratio is about 47.
However, SMIC does have more room for improvement.
Not only did the stock market react enthusiastically, but the new cathode material developed by Kechuang Biotechnology also caused a stir in the industry.
Continue read on readnovelmtl.com
