Congressmembers Are Buying Chinese Stocks

Hello,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was substantial, with 330 transactions taking place

Healthcare and Media were the most invested sectors

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🏦 2/ US Politicians potential insider trading: Congressmember Buys Chinese ADRs Before Price Hike

Relations between the United States and the People’s Republic of China have been lukewarm for years. Several congress members have often been outspoken about reducing Chinese influence. A ban on TikTok is the more recent example considering that Congress expressed concerns of China’s government using the app as a surveillance tool on its American users.

One Congress member is Rep. Josh Gottheimer, who serves on two Committees, including the House Permanent Select Committee on Intelligence. Most recently, the Representative pushed the Iran-China Energy Sanctions Act in April 2024. The Act covered several Chinese companies that purchase petroleum from Iran and other products even referring to both countries as the US’s biggest adversaries.

Ironically, On April 17, Rep. Josh Gottheimer bought between 52 and 777 ADRs of ZTO Express Cayman. Since then, the stock has seen a +28.22% price increase in the ZTO’s stock.

ZTO Express ranks among the top express delivery firms in China by parcel volume, with a 22.9% market share as reported in 2023. On May 15, ZTO disclosed its first quarter 2024 results. The company revealed an increase of 10.9% year-on-year in addition to a +19.0% rise year-on-year in gross profits.

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How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

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📄 3/ Interesting stock market stories

STORY #1:  House Approves Landmark FIT21 Act for Crypto Regulation Despite Opposition

The U.S. House approved the Financial Innovation and Technology for the 21st Century Act (FIT21) with a 279-136 vote, marking a significant legislative win for the crypto industry. Notably, 71 Democrats joined 208 Republicans in support, despite opposition from President Biden, SEC Chair Gary Gensler, and House Financial Services Committee's ranking Democrat, Maxine Waters.

The FIT21 Act aims to regulate digital assets, designate the Commodity Futures Trading Commission (CFTC) as the lead regulator for non-securities spot markets, and clarify the classification of crypto tokens as securities or commodities.

The bill's passage signifies a step towards establishing U.S. crypto regulations, an area where the country needs to catch up globally.

 On the political trading front, Congressman Michael Collins and Barry Moore were seen increasing their holdings in cryptocurrencies this year, while Rep. Shri Thanedar has been on a constant sell spree Year to date.

If you want to be notified when insiders trade stock, we send daily email alerts here 

STORY #2: Microsoft's AI PC Vision and Congressional Trades

Microsoft Corp (MSFT:US) is set to revolutionize personal computing with its new AI integration plans, to be unveiled at the Build developer conference.

Microsoft’s strategy involves embedding advanced AI features into Windows, leveraging tools like the Copilot chatbot, and partnering up with chip manufacturers like Qualcomm (QCOM:US), Intel (INTC:US), and AMD (AMD:US).

Following recent AI advancements from Alphabet’s Google (GOOGL:US) and OpenAI, Microsoft's integration aims to bolster its position in the AI landscape and stimulate PC sales, which have shown signs of recovery.

Recent trading activity by U.S. politicians continues to show how politicians are often making bets on Microsoft stock. Notable trades include sales by Shri Thanedar (D-MI), Shelley Moore Capito (R-WV), Deborah Ross (D-NC), Dan Newhouse (R-WA), and Suzan DelBene (D-WA). Conversely, Ro Khanna (D-CA) and Marjorie Taylor Greene (R-GA) made purchases, while Michael McCaul (R-TX) executed significant buy and sell transactions.

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STORY #3:  A Summary of the Main Trades Placed by Politicians and Insiders this Week

• Representative Josh Gottheimer has disclosed a purchase of stock in Fair Isaac Corporation ($FICO) which is a credit scoring service; It has risen +22% since.

• Last month, Representative Virginia Foxx purchased Ardmore Shipping stock ($ASC); It has now risen +42% since then.

• Raytheon stock, $RTX, has now risen 47% since Senator Markwayne Mullin bought in back in October. Mullin sits on the Senate Armed Services Committee; His position is up +48%

If you want to be notified when politicians trade stock, we send daily email alerts here 

📄 4/ Political Trading Bot

As you may remember, we have a trading bot that buys the same stocks as politicians

The bot is offered by the SEC registered broker QB, which will perform the trades. We will just provide them with the necessary data to execute

This means that every time politicians buy sizable amount of stocks, the bot buys those stocks as well

If you want to learn more about how to get access to the Political Trading Bot, click on the video below.

We assessed its performance, and it has been delivering solid results so far.

• We launched in May 2022 and the performance was +24% return

• Performance since April 2020 was +237% return