9/14/2021 Financial News In China: Disgruntled China Evergrande Investors Crowd Headquarters In Protest; CCP Tells Tech Giants To Stop Blocking Rivals’ Links

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1.Disgruntled China Evergrande investors crowd headquarters in protest

Chaotic scenes erupted at the headquarters of cash-strapped developer China Evergrande Group on Monday, as roughly 100 disgruntled investors crowded its lobby to demand repayment of loans and financial products. Around midday, more than 60 uniformed security personnel formed a wall in front of the main entrances to the glistening tower in the southern boomtown of Shenzhen, where protesters shouted at company representatives. “A company as big as yours, how much money has been swindled from ordinary people?” a woman said to Du Liang, identified by staff as general manager and legal representative of Evergrande’s wealth management division.

In the early hours of Monday, Du read out a proposal for repayments for holders of wealth management products, according to financial media outlet Caixin, but protesters at the company’s headquarters appeared to reject it. “They said repayment would take two years, but there’s no real guarantee and I’m worried the company will be bankrupt by the end of the year,” said a protester surnamed Wang, who said he works for Evergrande and had invested 100,000 yuan ($15,497) with the company, while his relatives invested about 1 million yuan.

2.In fresh regulatory move, CCP tells tech giants to stop blocking rivals’ links

CCP on Monday fired a new regulatory shot at its tech giants, saying they are facing long-standing consequences for blocking each other’s links on their sites or facing consequences. put an end to the practice. The comments, made by the Ministry of Industry and Information Technology (MIIT) at a news briefing, mark the latest move in Beijing’s sweeping regulatory crackdown that has implicated sectors ranging from technology to education and property and by market value of some billions. The dollar has been eliminated. One of the largest companies in the country. Communist China’s Internet is dominated by a handful of technology giants that have historically had links and services blocked by rivals on their platforms. MIIT spokesman Zhao Zhiguo said restricting general access to Internet links without reasonable reason “affects user experience, harms users’ rights and disrupts market order.” The ministry had received reports and complaints from users as it initiated an industry review practice in July.

MIIT named the Business Herald newspaper of the 21st century, not a company reported on saturday Alibaba Group Holding Ltd and Tencent Holdings Ltd are among the firms that were asked to end the practice by an unspecified time last week. Shares of Alibaba Group (9988.HK) and Tencent Holdings (0700.HK) fell more than 6% and 3%, respectively, on Monday, compared to a 3% decline in the Hang Seng Tech Index (.HSTECH).

3.Communist China to consolidate overcrowded electric vehicle industry, minister says

Communist China has “too many” electric vehicle makers and the government will encourage consolidation, Industry and Information Technology Minister Xiao Yaqing said on Monday. The minister also said Communist China would improve its charging network and develop EV sales in rural markets. The government’s promotion of greener vehicles to cut pollution has prompted EV makers such as Nio Inc., Xpeng Inc. and BYD Co. to expand manufacturing capacity in Communist China. Xiao said the ministry was speeding up alternative solutions to address an auto chip supply shortage. Communist China’s market regulator last week fined three auto chip sales companies for driving up prices, in a move to help auto production in the world’s biggest vehicle market.

4.Chinese self-driving firm DeepRoute.ai raises US$300 million from Alibaba, others

Chinese autonomous driving start-up DeepRoute.ai said on Tuesday it raised US$300 million from investors, including e-commerce giant Alibaba Group Holding, to expand its test fleet and develop technologies such as self-driving trucks. Other investors in the funding round include Greater China-focused tech investor Jeneration Capital, Chinese carmaker Geely and some previous investors, DeepRoute.ai said in a statement. It did not disclose its valuation. The investment comes as carmakers and technology companies are ploughing in billions of dollars into autonomous driving, aiming to take an early lead in what many see as the future of mobility.

DeepRoute.ai’s rival WeRide, backed by Nissan Motor, said this month it would develop self-driving vans, while Pony.ai, backed by Toyota Motor, said earlier it would develop autonomous trucks. DeepRoute.ai, which is testing vehicles in the Chinese cities of Shenzhen and Wuhan, will use the funds to double its fleet of test robotaxis to 150 by the end of this year from the current 70, its chief executive Zhou Guang told Reuters in an interview.

5. Communist China’s first C919 jet bound for airline to enter final assembly

Communist China’s first C919 narrowbody jet to be delivered to launch customer China Eastern Airlines is about to enter final assembly, Communist China’s aviation regulator said on Monday, with delivery due before the end of the year. The C919, being built by state-owned planemaker Commercial Aircraft Corp of China (COMAC), will mark a milestone in a decade-long programme to rival aircraft made by Airbus and Boeing. The C919 programme’s certification board met in Shanghai on Sept. 10 and reviewed COMAC reports on batch production of the jet, the Eastern Region Administration of the Civil Aviation Administration of China (CAAC) said on its social media account. COMAC hopes to obtain a type certificate, which certifies the model as airworthy, by the end of the year.

6.Communist China coking coal, coke futures plunge on fears of regulatory controls

Chinese coking coal and coke futures tumbled more than 6% on Tuesday, falling for a third straight session on concerns over more government controls to stabilise prices and ensure supplies. In the first ten days of September, coking coal and coke prices surged 19% and 11.6%, respectively, compared with the last ten days in August, data from the National Bureau of Statistics showed. “(Investors) should be cautiously trading given uncertainty of policy in the future,” analysts with SinoSteel Futures wrote in a note. “Recently affected by environmental inspections, energy consumption controls and crude steel production cuts, both supply and demand of coke fell.”

The most-active coking coal futures on the Dalian Commodity Exchange DJMcv1, for January delivery, slumped as much as 6.6% to 2,670 yuan ($414.09) per tonne in morning trade. The contract was down 2.5% at 2,787 yuan as of 0245 GMT. Coke futures DCJcv1 declined 2.8% to 3,427 yuan a tonne, after falling as much as 6.2% earlier. Steel on the Shanghai Futures Exchange was also driven by a drop in raw material prices. Construction used rebar SRBcv1 dipped 0.6% to 5,654 yuan a tonne. Hot rolled coils SHHCcv1, used in cars and home appliances, slipped 1.3% to 5,799 yuan per tonne. Stainless steel futures on the Shanghai bourse SHSScv1 fell 1.9% to 19,080 yuan a tonne.

7.Communist China Aug air passenger traffic down 51.5% y/y due to CCP Virus outbreaks

Communist China’s air passenger traffic dropped 51.5% in August from a year ago due to a resurgence of local COVID-19 outbreaks, the aviation authority said on Tuesday, adding that it is studying more measures to help airlines given repeated outbreaks. Currently, conditions do not allow for an increase in number of international flights, Shang Kejia, an official with the Civil Aviation Administration of China, told an online press conference.

8.limited production in Yunnan?Yellow phosphorus and industrial silicon industries cut production by 90%

On Monday, the market divergence was serious, but the effect of making money was not bad. Individual stocks still rose more and fell less, and the cyclical sector ushered in a big market. Among them, chemical stocks show that the reality is too fierce. There are 30 stocks in the entire sector that have a daily limit or an increase of more than 10%. The steel and non-ferrous sectors also performed very hotly. In comparison, the ChiNext and the Sci-tech Innovation Board, which have strong growth stock attributes, are much bleak.

Analysts believe that there are two main reasons: one is the amazing increase in peripheral cyclical commodities overnight last Friday, which drove market sentiment to a certain extent; The second is that a “Notice of the Office of the Leading Group for Energy Conservation of Yunnan Province on Resolutely Doing a Good Job in Dual Control of Energy Consumption” went viral throughout the network. Judging from the content of the document, it involves production restrictions in multiple industries, among which the production capacity of yellow phosphorus and industrial silicon has been reduced by 90%.

By【G Translators- Financial Team】
Author: Tracy

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