1.Demand for Electricity in Five Southern Provinces Reaching a Record High
The reporter learned from China Southern Power Grid that the demand for electricity in the five southern provinces has continued to rise due to a number of factors such as economic activities and high temperatures.
As of May 29th, China Southern Grid’s total electricity received and dispatched this year has reached 502.9 billion kilowatt-hours, a year-on-year increase of 23.68%. Since May, Guangdong’s electricity consumption has increased by an average of 15.7% year-on-year over the past two years. From January to April, the total electricity consumption of the nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area increased by nearly 30% year-on-year. The high temperature weather has also contributed to the surging demand for electricity in Guangdong. Orderly Use of Electricity Notice has been issued in cities in both Guangdong and Yunnan provinces.
2.$6.2 Million Digital Yuan to Be Handed Out to Beijing Residents
Shanghai Securities News China Securities Network – Beijing Local Financial Supervision and Administration Bureau announced on June 2 an event that will hand out 200,000 digital yuan “Jingcai” red packets to Beijing residents who register by the deadline of June 7. The event is scheduled to start on June 5. Each red packet is 200 yuan, which can be used in nearly 2,000 selected merchants in Beijing. A total of 40 million digital yuan ($6.2 million) will be handed out in this event.
3. Intco Medical Stock Plummeted Upon Senior Managers’ Share Reduction Plan
The company’s actual controller and chairman Liu Fangyi plans to directly reduce his holdings of the company’s shares by no more than 21,755,500 shares within six months through centralized bidding transactions and block transactions, no more than 6% of the company’s total share capital. General Manager Chen Qiong, Deputy General Manager Yu Haisheng, Deputy General Manager Li Bin, and Chief Financial Officer Feng Jie intend to reduce their holdings of the company’s shares by no more than 0.02%, 0.01%, 0.02%, and 0.01% respectively. And based on yesterday’s closing price of 142.65 yuan per share, the company’s actual controller and chairman Liu Fangyi intends to cash out more than 3.1 billion yuan. And other executives will cash in a total of nearly 40 million yuan. In early trading today, the company’s stock price plummeted 19.63%. Its convertible bonds also fell more than 17%.
4.Chinese Regulators Continue to Tighten Property Lending
In a press briefing by China Banking and Insurance Regulatory Commission (CBIRC) on June 1, it was announced that the banking regulator will continue to control the growth of real estate loans. The commission will pay close attention to the growth of property loans issued by banks and closely monitor banks with a high proportion of new property loans in their portfolios.
The growth rate of real estate loans continued to decline. By the end of April, the real estate loans of the banking industry increased by 10.5% year-on-year, the lowest growth rate in 8 years. The proportion of real estate loans among all loans dropped by 0.5% year-on-year, which was declining for 7 consecutive months. In addition, the scale of real estate trusts continued to decline. The regulator vows “zero tolerance” for illegal real estate property lending and plans to go after banks and intermediaries dodging regulations against the use of business loans to purchase real estate.
5.E-Retailer Mogu Reports Continued Losses and Declining Revenue
Chinese fashion platform Mogu (NYSE:MOGU) announced its Fourth Quarter and Fiscal Year 2021 unaudited financial results on May 28. The financial report shows that in the fourth quarter of fiscal 2021, the total Gross Merchandise Value (GMV) of the platform was 2.576 billion yuan, a year-on-year increase of 6.5%, of which live GMV reached 2.245 billion yuan, a year-on-year increase of 42%. During the season, live GMV accounted for 87.2% of the total GMV on the platform.
However, the company reported continued losses and declining revenue in the first quarter, even as sales from livestreaming e-commerce continued to grow. Total revenue dropped 23.6% to 90.9 million yuan ($14.2 million) in the quarter through March 31. The company’s adjusted net loss in the fourth quarter of fiscal 2021 was 16.4 million yuan, narrower than a net loss of 79.3 million yuan in the same period in fiscal 2020. Overall, the company’s development prospects still worry the investors, and its stock price continues to fall.
6.15 Chinese Private Tutoring Companies Fined 36.5 Million Yuan
Communist China’s State Administration for Market Regulation announced on June 1 that 15 tutoring companies were fined 36.5 million yuan ($5.72 million) for false advertising and pricing fraud as authorities implement new crackdown on the nation’s private tutoring industry. New York-listed OneSmart International Education Group Ltd. and Hong Kong-listed Scholar Education Group were among the companies penalized.
In 2020, 155,000 complaints about tutoring and training services were filed, accounting for 8.21% of the total number of complaints, ranking the fourth in service-related complaints. In the first quarter of this year, there were 47,100 complaints about tutoring and training services, a year-on-year increase of 65%. Since the beginning of this year, the government has vowed to tighten the rules on the private tutoring sector.
7.Central Parity of RMB Against US Dollar Dropped More than 200 Points
Shanghai Securities News China Securities Network News – On June 2, the central parity of the RMB against the US dollar was at 6.3773, a sharp depreciation of 201 points from the previous trading day. This is the first reduction in the central parity of the RMB against the US dollar since May 24.
On June 1, the foreign exchange reserve requirement ratio for financial institutions was raised from 5% to 7% effective June 15. This is the central bank’s first move in 14 years, demonstrating the determination of the central bank to regulate and control. Such a move also indicates the central bank is concerned about the rapid appreciation of the RMB and its potential impact on exports. Recently, the central bank has also emphasized repeatedly that two-way fluctuations in the RMB exchange rate have become the norm and businesses should not bet the appreciation or depreciation of the RMB against the US dollar.
By【G Translators – Financial Team】