Shares in Chinese electric vehicle makers XPeng and Li Auto, as well as cannabis maker Tilray and the Zoom video conferencing app, were bought by the Swiss National Bank in the first quarter of 2021.
The central bank of Switzerland as of March 31, 2021 had on its balance sheet shares listed on the largest exchanges in the United States, in the amount of about $ 150 billion.
In the first three months of the year, the bank bought additional XPeng (XPEV), Zoom (ZM) and Tilray (TLRY) shares in its portfolio and bought Li Auto (LI) shares for the first time, according to a report filed with the US Securities and Exchange Commission (SEC) …
With large banks like the Swiss Central Bank disclosing their deals, investors have the opportunity to gain valuable insight.
At the same time, the Swiss central bank said they would not comment on individual investments.
In the first three months of 2021, the bank bought 74,000 shares of the Chinese electric vehicle manufacturer XPeng, increasing its ownership to 433,175.
XPeng recently released a first-quarter report that beat analysts’ expectations, with the automaker forecasting full-year growth for 2021.
Li Auto has yet to report its first quarter, but posted strong shipments for its electric vehicles in April, 13% higher than in March, although growth has slowed.
Li Auto said the company had hit the 500,000 unit milestone faster than its competitors.
While shipments of XPeng and Li Auto are growing, as are overall sales in China, according to the China Passenger Car Association, their shares, like those of NIO (NIO), Tesla (TSLA) and other automakers, have declined since the beginning of the year.
XPeng shares are down 40% since early 2021 and 45.2% in the past three months.
Li Auto shares are down 36.35% YTD and 42.4% in the past three months.
The XPeng (candlestick) and Li Auto (line) charts follow each other’s dynamics.
According to experts, the decline in shares was caused by investors’ fears about growing competition, as well as a global shortage of microcircuits, which slows down the pace of production. Read more in the Marketinfo.pro article “The global shortage of microcircuits may last until 2023”.
The Swiss National Bank bought another 142,900 Zoom Video shares, increasing its stake to 826,800 shares at the end of the first quarter.
Newcomer Zoom Video Communications stock had one of the highest growth rates during the pandemic, when everything from everyday communication to work and training was transferred to the format of online conferences.
However, with the advent of COVID-19 vaccines and a return to more familiar forms of communication, Zoom shares are also rapidly losing value.
Zoom Video shares are down 28.9% in the past 3 months and 25.5% in the past six months.
At the same time, Zoom Video is making efforts to diversify its revenue by adding new features, services and sales of dedicated video conferencing monitors. The company expects revenue growth of 42% in the current fiscal year.
Earlier this month, Tilray closed its merger with Aphria (APHA), creating the world’s largest cannabis growing company by revenue. The deal is expected to save the companies over C $ 100 million ($ 78.7 million) annually.
Companies are expanding their business to international markets, but so far they are unprofitable. Investors in cannabis companies today are awaiting a law that would make cannabis legal throughout the United States.
Tilray shares, along with other cannabis producers, Aurora Cannabis (ACB) and Canopy Growth (CGC), have fallen sharply over the past three months – 52%, losing momentum in January-February.