5/11/2021 Financial News: Pinduoduo And Meituan Ordered To Make Improvements, New Home Transactions In Communist China Halved

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1.Shanghai Consumer Council Ordered Pinduoduo and Meituan to Fix Ongoing Issues Relating to Consumer Rights

On the afternoon of May 10, the Shanghai Consumer Council interviewed Meituan and Pinduoduo, saying that the latter two had outstanding problems in the protection of consumer rights. Pinduoduo was found to have issues across product quality, infringement, forced cancellation of orders, fake deliveries; poor after-sales service and pricing tricks to lure new users, according to the council. Meituan was found to have problems when it came to refunds for canceled orders, failed delivery for orders, and misleading consumers. Both companies have pledged to carry out internal reviews and rectification of their related businesses, and will submit a rectification report to the council.

2.The “May Day” Property Market is Cooling Down, Beijing fell 72%

The latest data shows that during the May 1st holiday this year, the volume of new homes in 20 major mainland cities fell by 46.2% month-on-month. The property market in first, second and third-tier cities is obviously cooling down. Zhuge Housing Search Data Research Center monitors that during the “May 1st” period, 11,568 new houses were sold in key 20 cities, down 46.2% from the same period in April. Looking at the city as a coordinate, in the key 20 cities data of Zhuge’s housing search statistics, only 3 cities have seen a month-on-month increase in new house transaction volume, while the remaining 17 cities have seen a month-on-month decline. Among them, Chengdu ranked first in the month-on-month decline, with a decline of 95.8%; Guangzhou, with a month-on-month decline of 86.9%, ranking second; Dongguan, with a month-on-month decline of 80.1%, ranking third. Among the first-tier cities, Beijing and Shenzhen fell by 72.4% and 62.9% respectively.

3.CCP Regulator Orders 84 Apps to Rectify Illicit Collection of Personal Data

A total of 84 apps including 36 safety management apps including Tencent Mobile Manager and Baidu Mobile Security, and 48 online loan apps were named by Cyberspace Administration of China (CAC) on Monday for illegally collecting and using personal information. These apps were reported for collecting users’ personal data without obtaining users’ consent and collecting personal information unrelated to the apps’ core function or service, according to CAC’s website, noting that relevant app operators should complete the rectification within 15 working days from Monday, and report their rectification process to CAC.

4.New Hope Group’s Single-Season Pig Industry Loss Exceeded 600 Million, Stock Price Plummeted

As a veteran feed company, New Hope Group has invested heavily in pig raising in recent years, and has set a 25 million pig output goal in 2021. However, New Hope had previously pursued too much short-term pig output goals, and had insufficient understanding of the difficulties in the rapid development of the pig industry in the early stage. As a result, the scale of development, mode, pace, team ability, management system, and operation mechanism are not well matched. In 2020, New Hope Group’s revenue exceeded 100 billion yuan for the first time, but its net profit was less than 5 billion yuan, a year-on-year decline of 2%. In the first quarter of 2021, net profit was only 137 million yuan, down 91.59% year-on-year, and its pig industry suffered a loss of more than 600 million yuan. New Hope Group’s stock price fell from 42.2 yuan per share in September 2020 to the latest 15.44 yuan per share, a drop of more than 60%, which was the lowest since May 9, 2019.

5.Communist China Population: Census Confirms Increase to 1.412 Billion in 2020, but Births Fall Again

Communist China’s population grew last year, results of the once-in-a-decade census released on Tuesday showed, although the number of new births fell for the fourth consecutive year in 2020. Chinese mothers gave birth to 12 million babies last year, down from 14.65 million in 2019, the NBS confirmed, marking an 18 per cent decline year on year and continuing the descent to a near six-decade low. “The census data also show some structural contradictions facing the country’s population development, such as the decline in the size of the working-age population and women of childbearing age, the deepening of the ageing degree, the decline in the total fertility rate, and the downturn in the number of births,” said NBS commissioner Ning Jizhe.

6.Top U.S. Fuel Pipeline Remains Days from Reopening after Cyberattack

The biggest U.S. gasoline pipeline will not resume full operations for several more days due to a ransomware cyberattack blamed on a shadowy criminal network called DarkSide. The attack on the Colonial Pipeline, which carries nearly half the fuel consumed along the U.S. East Coast, is one of the most disruptive digital ransom schemes ever reported. While the impact remains to be quantified, the pipeline shutdown will reduce fuel availability in the near term, push up prices and force refiners to cut production because they have no way to ship the gas. A statement issued in the group’s name on Monday said: “Our goal is to make money, and not creating problems for society.” The episode laid bare the vulnerabilities of energy infrastructure to hackers. U.S. lawmakers responded with calls for stronger protections for critical energy infrastructure.

By 【Financial Team – Tracy】
News Collection: Wendy, Tracy
Proofreading: Apple

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