5/17/2021 Financial News: Morgan Stanley Warns on Chinese Companies’ ADR Delisting Risk

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1.Morgan Stanley Warns on Chinese Companies’ ADR Delisting Risk

SHANGHAI, May 14 (Reuters) – Morgan Stanley (MS.N) warned on Friday about its exposure to U.S.-listed Chinese technology companies after U.S. accounting regulators took another step toward delisting noncompliant Chinese firms from U.S. exchanges.
Morgan Stanley also recommends a hedging strategy to the investors to buy ADRs that qualify for an immediate secondary listing in Hong Kong, and sell those that do not.

2.April Financial Data Increased Less Than Expected, High Base to M2 Growth Rate Fell 3% Year-on-year

On May 12, PBOC released April financial data and aggregating financing to the real economy data. The data is showing that by the end of April, the balance of broad money (M2) 226.21 trillion yuan, an increase of 8.1% year-on-year, the growth rate of 1.3 and 3 percentage points lower than the end of last month and the same period last year. Narrow money (M1) balance of 60.54 trillion yuan, an increase of 6.2%, the growth rate of 0.9 percentage points lower than the end of last month, 0.7 percentage points higher than the same period last year; currency in circulation (M0) balance of 8.58 trillion yuan.

3.Tangshan City to Steel Companies: No Misinformation on Price Increase

As per to the Tangshan City Field Supervision Bureau website on May 14, the steel price increase far exceeds the cost increase. In order to protect the companies’ normal production and operation activities, promote the healthy development of companies, and to regulate price behavior, Tangshan City Market Supervision Administration, Development and Reform Commission, Industry and Information Bureau on steel prices jointly interviewed the city’s steel production companies, asking them not to collude with each other, not to fabricate or disseminate information about price increases.

4.Small and Medium-sized Banks’ Structured Deposits Hit a Four-year Low

Rong360 released the “April 2021 Bank Structured Deposit Report”. According to its incomplete statistics, the number of structured deposits issued in April 2021 was 1,471, an increase of 137 from the previous month. The size of structured deposits at small and medium-sized banks fell to 3,642.523 billion yuan in March 2021, the lowest level since March 2017.

Comments: Collapse of China disgraced P2P lending brought so much pain to the investors who are more cautious about these structured deposits, also known as wealth management products, especially those fake structured deposits with the ROI (Return on Investment)not matching with the actual risk.

5.“Whistleblower Gate” is Simmering: 4 Brokerage Firms Exposed

Weibo VIP Ye Fei who has a million followers (@ Ye Fei private equity champion straight talk) revealed that the listing company, ZOY Home Furnishing Co., Ltd. (603709.SH) had “Market Value Management”, and the trader repudiated the debt and dint pay the counter party as per the agreement. He thought the so-called “Market Value Management” is a concerted effort made by the listing companies, the traders, the funds companies, brokerages and other institutions.

6.Senators to Unveil $52B Proposal to Boost Semiconductor Chip Production

A group of senators will unveil a $52 billion proposal Friday that would hugely increase the research and production of U.S. semiconductor chips over the next five years and make the country less dependent on unstable foreign sources like China. Commerce Secretary Gina Raimondo will also reportedly meet with senior auto industry leaders next week to discuss the global semiconductor chip shortage, which has significantly slowed down car production.

By 【Financial Team – Opal】

News Collection: Totoro

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