9/6/2021 Financial News In China: CCP Issues Plan For Building Guangdong-Macao Deep Cooperation Zone; Tencent To Launch Paid Cloud Storage Service For WeChat Records

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1. CCP Issues Plan for Building Guangdong-Macao Deep Cooperation Zone

The “Overall Plan for the Construction of Hengqin Guangdong-Macao Deep Cooperation Zone” issued by the Communist Party of China was released on the 5th. The implementation scope of the zone is the customs control area between the “first line” and the “second line” of Hengqin Island, with a total area of about 106 square kilometers. Among them, Hengqin and the Macao Special Administrative Region is set as the “first line”; Hengqin and other areas within the customs territory of the Communist China is set as the “second line”. According to the objective reality of the whole Hengqin island, the zone is managed by zoning and classification. The Chinese Communist Party sees this as a major deployment to realize the so-called “one country, two systems” practice.

2. Tencent to Launch Paid Cloud Storage Service for WeChat Records

Tencent is proposing to launch a paid personal WeChat cloud storage service, meaning that WeChat chat logs can be backed up and restored in the cloud. Currently, WeChat only supports the migration of chat records to another device as well as backup chat records to a computer, and if the device is lost, data that is not backed up in time will not be recovered. It is reported that the service may use a pay-per-year model, with Apple users paying around $180/year and Android users paying around $130/year.  However, the cost of the specific can store how much capacity data has not been determined.

Comments: The news immediately arouse heated debate. It is worth paying attention to the fact that Tencent just paid 50 billion yuan last month to support the so-called “common prosperity”, and now it is eager to pass it on to consumers.

3. Real Estate Registration Chaos: Government Staff Collusion with “Scalpers”

The real estate is the most important asset of the Chinese people, and the registration of real estate is a major matter of people’s livelihood. However, in Ulanqab City, Inner Mongolia Autonomous Region, some people went to the trading hall four times and it took 44 days to get the premises; but some people find “scalpers” to do it on their behalf and spend 500 yuan to get the permit in 1 day. According to the inspection team’s unannounced visit, the local real estate registration center has a low efficiency, staff suspected of colluding with “scalpers” to seek improper benefits and other issues. The “scalper” assured with confidence: “Soon it will be done, 100% no problem, and the permit will be mailed within two days”. When the unannounced interviewer asked where to spend the 500 yuan, the scalper clearly said: “I only keep 100 yuan for myself, the rest to the people inside the hall.” It was verified by the interviewer that after paying 500 yuan, the permit was indeed issued the next afternoon.

4.  A Total of 149 Cities in Communist China Enter Deep Aging

According to the data of the 7th National Census, after sorting out the population age composition of 336 prefecture-level cities and above, it is found that 149 cities across China have entered into deep aging, which are more concentrated in the northeast region, Chengdu-Chongqing city cluster, the middle and lower reaches of the Yellow River, the central region and the Yangtze River Delta.According to the internationally accepted classification standard, when the proportion of population aged 65 and above exceeds 7% in a country or region, it means entering aging; reaching 14%, it is deep aging; exceeding 20%, it is entering a super-aging society.

5.CCP’s Central Bank and Bank Indonesia Decide to Officially Launch the Framework for Cooperation in Local Currency Settlement

According to a memorandum of understanding signed between the Central Bank of the Communist China (CBC) and Bank Indonesia on September 30, 2020, the CBC and Bank Indonesia announced the official launch of the local currency settlement cooperation framework starting from September 6, 2021, according to the CBC on September 6. Starting from September 6, 2021, the following commercial banks, as Authorized Cross Currency Market Makers (ACCD), can handle RMB/INR related trading business under the China-Indonesia Local Currency Settlement Cooperation Framework in accordance with relevant regulations. On the China side: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Ningbo, Bank Mandiri Indonesia Shanghai Branch, Bank Malaya Malaysia Shanghai Branch, UOB (China) Ltd. On the Indonesia side, including PT Bank Central Asia Tbk, PT Bank Mandiri (Persero) Tbk and 12 other banks.

6.Gezhouba’s Application for Termination of Listing was Accepted

Gezhouba announced in the evening of September 5 that the company’s application to the Shanghai Stock Exchange (SSE) to terminate the listing of its shares has been accepted.Recently, China Energy Construction’s share swap and merger with Gezhouba and related transactions have been considered by the shareholders’ meeting and approved by the Securities and Futures Commission.The transaction will result in Gezhouba ceasing to have the status of an independent entity and eventually being written off. If the SSE makes a decision to agree to the termination of the listing of Gezhouba’s shares, Gezhouba will be delisted and terminated within five trading days from the date of publication of the announcement of the termination of the listing of its shares. The shares of the actively terminated listed company will not be traded in the delisting period. After the completion of the merger, Gezhouba will cease to be listed and China Energy Construction, as the surviving company, will succeed and undertake all the assets, liabilities, business, contracts, qualifications, personnel and other rights and obligations of Gezhouba through the receiver, China Gezhouba Group Co.

7.JD Group: Xu Lei Appointed as Group President

In the morning of September 6, Jingdong Group announced on the Hong Kong Stock Exchange that Mr. Xu Lei was appointed as President of Jingdong Group, Mr. Xin Lijun was appointed as Chief Executive Officer of Jingdong Retail and Mr. Jin Enlin was appointed as Chief Executive Officer of Jingdong Health Corporation with immediate effect. Mr. Liu Qiangdong, Chairman of the Board and Chief Executive Officer of Jingdong Group, will devote more time to long-term strategy design, young talent development and rural revitalization.

8.400-year Old Zhang Xiaoquan A-share Listing

On September 6, A-share “scissors first stock” Zhang Xiaoquan GEM listed, IPO issue price of 6.9 yuan / shares, the first day opened 331.88% higher, reported 29.80 yuan / shares, the total market value of 4.6 billion yuan. The Zhang Xiaoquan brand was founded in 1628 and has a history of nearly 400 years. Zhang Xiaoquan has now become a modern household hardware products manufacturer integrating design, research and development, production, sales and service. The company’s main products include shears, knives, knife and scissor sets and other household products.

According to the issue announcement, the number of shares issued by Zhang Xiaoquan was 39 million, all of which were issued as new shares at an issue price of RMB 6.9 per share. Before the issue, the total market value of Zhang Xiaoquan was 1.076 billion yuan. After the issue was completed, the total share capital of Zhang Xiaoquan was 156 million shares. In terms of operating results, Zhang Xiaoquan’s operating revenues for 2018-2020 and January-June 2021 are 41,094,200 yuan, 484,014,900 yuan, 572,256,600 yuan and 330,271,000 yuan, respectively, corresponding to net profits attributable to 43,808,500 yuan, 72,307,000 yuan, 77,216,000 yuan and 44,253,500 yuan.

By【G Translators – Financial Team】
Author: Rosy Cloud

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