06/28/2021-Financial News: Bitcoin Miners Go Overseas or Sell Mining Machines ; Tesla China Recalls Cars

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1.Communist China’s Restriction Forces Bitcoin Miners to Go Overseas or Sell Mining Machines

SHANGHAI, June 25 (Reuters) – Communist China’s total ban on cryptocurrency mining has crippled an industry that accounts for more than half of global bitcoin production, with desperate miners dumping their machines or seeking outlets in places like Texas and Kazakhstan. A mining dealer in Sichuan said a mining machine that sold for around 4,000 yuan ($620) in April and May may now be as low as 700-800 yuan. Bitmain said on its official WeChat that it has traveled to several countries, including the United States, Canada, Australia, Russia, Belarus, Sweden, Norway, Kazakhstan, Angola, Congo (Brazzaville) and Indonesia, in search of high-quality power resources.
Some large Chinese mining operators are also ready to move overseas. BIT Mining said Monday it had successfully shipped the first 320 mining machines to Kazakhstan, with the second and third batches of 2,600 machines due to arrive by July 1. BIT Mining CEO Yang Xianfeng said the company is accelerating the deployment of high-quality mining resources overseas. The company has also invested in a cryptocurrency mining data center in Texas.

2.Tesla China Recalls More than 280,000 Imported and Domestic Electric Cars, Says It Will Improve and Enhance Safety

BEIJING, June 26 (Reuters) – Communist China’s General Administration of Market Regulation (GAMR) said on Saturday that Tesla Motors Beijing and Shanghai filed a recall plan with the GAMR following relevant regulatory requirements and decided to recall some imported and domestic Model 3 and domestic Model Y electric vehicles, totaling 285,520 units, with immediate effect; Tesla’s latest response said it would strictly follow national requirements and continuously improve and The latest response from Tesla is that it will continue to improve and enhance safety in strict accordance with national requirements.
The notice was posted on the General Administration of Municipal Supervision website and said that the vehicles within the scope of this recall are prone to cause drivers to mistakenly activate the active cruise function in some cases due to problems with the active cruise control system. Tesla’s official microblogging site said that the recall would be implemented in batches from the day after the notice was issued; the recall raises the threshold for active cruise control activation and adds reminders for active cruise control activation and withdrawal.

3.Pork Prices Plunge in Communist China

According to data monitored by the China Hog Alert Network, the national average slaughter price of lean pigs on June 23 was 13.01 yuan/kg, down 21.13 yuan/kg from 34.14 yuan/kg a year earlier a 61.89% drop year-on-year. Mr. Kang, manager of Han Tang Herding in Baoding, Hebei Province, said that pork prices began to fall slowly from the beginning of this year, accelerating in March and April, and suddenly fell below the industry cost price in mid-to-late May. The rapidity of the price drop made Mr. Kang a bit jaw-dropping. “The price came down somewhat unexpectedly in March and April, and by May, it fell below our cost price,” Mr. Kang told reporters, adding that Han Tang Herding is a medium-sized pig breeding enterprise with 15,000 breeding sows in stock. The cost of a pig is about 15 yuan per kilogram.

A medium-sized pig farming enterprise like the Han Tang pastoral industry is losing money. A leading domestic pig farming enterprise, Muyuan, whose annual report disclosed a pig cost of 16 yuan per kilogram, is also losing money. A staff member of a large domestic pig farming enterprise said that at the current price of 12-13 yuan per kilogram, the whole industry is at a deep loss. In contrast, the cost of more domestic pig enterprises is higher than that of Muyuan shares.

4.Wang Chunying, Deputy Director and Spokesperson of State Administration of Foreign Exchange, Answers Reporters’ Questions on the Status of International Investment Positions in 2021

At the end of March 2021, China’s foreign assets were USD 887.6 billion, up 2% from 2020. Among them, direct investment assets of USD 2,331.9 billion, up 0.8%; securities investment assets of USD 965.8 billion, up 7.3%; foreign deposit and loan and other investment assets of USD 216.62 billion, up 7.5%; reserve assets of USD 329.71 billion, the size of which continues to rank first in the world. The total size of external liabilities increased. At the end of March 2021, China’s external liabilities were US$6,737.5 billion, up 2.8% from the end of 2020. Among them, direct investment liabilities of 323.86 billion U.S. dollars, an increase of 1.9%; portfolio investment liabilities of 2,028.9 billion U.S. dollars, an increase of 3.8%; absorbing deposit and loan and other investment liabilities 145.96 billion U.S. dollars, an increase of 3.7%.


5.A Statement from HSBC Triggered Panic Among Hong Kong People

According to Bloomberg, HSBC (HSBC) tweeted on June 22 that it would change its terms and conditions from July 26 so that customers may not be able to use online or mobile app banking outside of Hong Kong and shared the link to update the terms and conditions for online and mobile banking on the bank’s website; the post has now been taken down. HSBC will soon issue another post to assure customers that there is no change, “Hong Kong customers can continue to use online and mobile banking services overseas as usual and there is no plan to change the original service. We apologize for any inconvenience caused. An HSBC spokesperson said that Hong Kong customers could continue to access the service through Internet and APP banking outside of the Hong Kong SAR. There are no plans to change the service, and that similar cross-border disclosure statements are available in other markets.

6.China’s Central Bank: Promoting Further Reductions in Real Lending Rates to Strengthen Policy Coordination to Prevent External Shocks

The official website of the Central Bank of China issued a press release on Monday and said, to improve the market-based interest rate formation and transmission mechanism, to promote further reductions in real lending rates; flexible and precise implementation of monetary policy, to deal with the relationship between economic recovery and risk prevention; deepen the market-oriented reform of the exchange rate, to enhance the flexibility of the exchange rate of the yuan.

In addition, the central bank also said that further play a good re-lending, re-discounting and direct to the real economy monetary policy tools such as the traction drive, the implementation of a good inclusive small and micro-enterprise loan deferment policy, and the extension of credit loan support program, comprehensive measures to support the coordinated development of the region, increased efforts to support inclusive finance, and guide financial institutions to increase support for scientific and technological innovation, small and micro-enterprises and green development and other areas.

7.Ping An of China to Enter Six Raffles City Malls with up to ¥33 Billion CapitaLand Recovers over ¥2 Billion in Capital

CapitaLand, a Singapore-based commercial property operator, said Monday it signed a partnership agreement with Ping An Life Insurance of China to sell part of its stake in a portfolio of six Raffles assets in China, including Shanghai and Beijing; the total assets of the portfolio are valued at 46.7 billion yuan. The disclosure document submitted by Ping An Life shows that the total investment amount will not exceed RMB 33 billion. The press release, posted on CapitaLand’s website in China, also said that following the completion of the series of transactions, CapitaLand’s shareholding in the projects will change from 30.7% to 55% held through private equity funds before the transactions to 12.6% to 30%, and will continue to be responsible for the operation and asset management of the projects. The transaction is expected to close in the third quarter of 2021 and will achieve a capital recovery of over $2 billion for CapitaLand. In addition, documents released by Ping An Life on the same day on the official website of the China Insurance Association show that Ping An Life intends to carry out equity acquisitions of six Raffles City project companies with a 60% or 70% acquisition ratio; the total project investment is expected to be no more than RMB 33 billion.

8.Communist China’s Grain Imports Surged in the First Five Months of the Year

From January to May, Communist China’s total grain imports were 27.11 million tons, increasing about 191% year on year. These include wheat, rice, corn, barley, and sorghum, known as the three staple grains. Here, imports of wheat totaled 4.61 million tons, an increase of about 89% over the same period last year; imports of rice totaled 2.25 million tons, an increase of 130%; and imports of barley and sorghum increased by 139% and 237%, respectively, over the same period last year. The import volume of corn and an alarming increase, the first five months of this year’s cumulative imports, have reached 11.73 million tons, an increase of about 323% over the same period last year. Last year, China’s corn imports also reached a record 11.3 million tons and exceeded the annual import quota of 7.2 million tons for the first time in history. In contrast, this year, China’s corn imports will exceed the annual import quota for the second time, with total corn imports exceeding the annual import quota by about 63% by the end of May.

by【 G-translators Financial Team】
Author: Totoro

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