4/29/2021 Financial News: Communist China Set To Report First Population Drop Since 1949, Tencent Penalty In Antitrust Crackdown

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1.Communist China to Report First Population Drop since 1949

(21Caijing) In mid-April, a paper written by the Communist China Central Bank on populations has attracted people’s attention. The report suggested the government should call for a radical overhaul of birth control rules. The latest population census report shows that since 1949, Communist China’s population has declined for the first time. Huang Wenzheng told the 21st Century Business Herald that the natural growth rate of the population is indeed declining, but it is not certain whether it will fall to negative growth.

According to the Communist China Statistical Yearbook, the society experienced a period of population peak after the 1980s. The natural population growth rate exceeded 14‰ from 1985 to 1990 and reached a peak of 16.61‰ in 1987. From 1978 to 1997, the natural population growth rate still exceeded 10‰. But since then, the natural population growth rate began to fall and down to 3.34‰ in 2019. The current fall in population comes despite the relaxation of strict family planning policies. The decline is caused by the decline in births. Huang Wenzheng believes in the long run, the population decline will reduce job seekers and reduce job opportunities.

2.Communist China Readies Tencent Penalty in Antitrust Crackdown

Communist China is preparing a substantial fine for Tencent Holdings as part of its sweeping antitrust clampdown on the country’s internet giants, but it is likely to be less than the record US$2.75 billion penalty imposed on Alibaba earlier this month, two people with direct knowledge of the matter said.

Tencent faces penalties for not properly reporting past acquisitions and investments for antitrust reviews, an offence with a fine capped at 500,000 yuan per case, and for anticompetitive practices in some of its businesses, with music streaming in particular focus, said the sources. “The attitude from the regulator is that unlike Alibaba you are not the biggest target here, but it would be impossible not to penalise Tencent now that the campaign is in action,” said one of the people.

3.Communist China to raise retail fuel prices

(Sina) Communist China will raise the retail prices of gasoline and diesel from Thursday, the country’s top economic planner said Wednesday. Based on recent changes in international oil prices, the retail prices of gasoline and diesel will be increased by 100 yuan (about 15.42 U.S. dollars) and 95 yuan per tonne, respectively, according to the National Development and Reform Commission.

Communist China’s three biggest oil companies, namely China National Petroleum Corporation, China Petrochemical Corporation and China National Offshore Oil Corporation, have been asked to maintain oil production and facilitate transportation to ensure stable supplies.

4.Huawei Deepens Dive into Evs, Seeks Control of Small Automaker

(Reuters) Huawei Technologies is in talks to take control of a small domestic automaker’s electric vehicle unit, two people with direct knowledge of the matter said, in what is seen as a strategic shift for the world’s largest telecom equipment maker. 

Huawei, which has been battered by U.S. sanctions, is in talks with Chongqing Sokon to acquire a controlling stake in the latter’s Chongqing Jinkang New Energy Automobile, said the sources. The move will allow Huawei to make intelligent cars bearing its own nameplate, they added. Jinkang counts U.S. EV brand Seres, formerly known as SF Motors, as its main asset. Huawei is also seeking to control the EV brand ArcFox of BAIC’s BluePark New Energy Technology, which recently launched its Alpha S model equipped with the “Huawei Inside” system, said the two people and another person with direct knowledge. But BAIC is keener to have Huawei just as a minority shareholder in ArcFox, they added.

5.Major CCP Investors in Talks to Take Aramco Stake

(Reuters) – Major CCP investors are in talks to buy a stake in Saudi Aramco, several sources told Reuters on Wednesday, as Saudi Arabia’s state oil firm prepares to sell another slice of its business to international investors. Saudi Arabia was in discussions to sell 1% of Aramco to a leading global energy company and could sell further shares including to international investors within the next year or two, Crown Prince Mohammed bin Salman said in televised remarks on Tuesday. A stake of 1% would equate to around $19 billion based on Aramco’s current market capitalization.

Sovereign wealth fund Communist China Investment Corporation (CIC) was among those that could invest, two sources told Reuters. Aramco was talking to CIC, as well as CCP’s national oil companies, said one of the sources close to CIC.

6.Fed Holds Steady Even as It Nods To ‘Strengthened’ Recovery

The Federal Reserve held interest rates and its monthly bond-buying program steady on Wednesday, nodding to the US economy’s growing strength but giving no sign it was ready to reduce its support for the recovery.

Despite the improving economy, the Fed on Wednesday repeated the guidance it has used since December, setting the list of conditions that must be met before it considers pulling back from the emergency support put in place to stem the economic fallout of the CCP virus pandemic in 2020. The Federal Reserve cited the pace of vaccinations against CCP virus in the US as a factor in deciding to hold steady on its policies of continuing support for the US economy. That includes “substantial further progress” toward its inflation and employment goals before stepping back from its monthly bond purchases.

By 【Financial Team – Apple】
News Collection: 文罡、文武
Proofreading: Tracy

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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