1.Evergrande New Energy Automobile Claims Shortage Of Funds
Evergrande New Energy Automobile Group Co., Ltd., a subsidiary of China Evergrande Group, said on Friday that it is still looking for new investors and seeking to sell assets. If both efforts fail to make progress, the company may find it difficult to pay employees’ salaries and other expenses. The company announced on the Hong Kong Stock Exchange on Friday that the company is facing a serious shortage of funds. In view of the liquidity pressure, there have been some cases of suspension of payment of daily expenses and suspension of supply by related suppliers. Evergrande New Energy Automobile stated, “It is still in contact with different potential strategic investors to introduce new investors to the Group. As of the date of this announcement, it is still in the process of due diligence and negotiation. The Group is also actively discussing the sale with potential investors. Some of the Group’s health-preserving valley projects and overseas assets to improve the overall efficiency of the Group and supplement working capital. As of the date of this announcement, the Group has not signed any legally binding agreements with investors.”
2.Communist China’s August Bank-to-customer Transactions Hit A Three-month Low
Statistics from the State Administration of Foreign Exchange of China show that China’s foreign exchange market totaled 3.15 trillion US dollars in August. Among them, bank-to-customer market transactions amounted to US$455.4 billion, a three-month low; bank-to-customer transactions accounted for 14.4% of total transactions, and the chain fell to a three-month low. As the RMB exchange rate fluctuated mostly within the range in August, the willingness of market entities to hedge against risks continued to decline. Since September, the overall fluctuation range of the RMB against the U.S. dollar has risen slightly compared to August, with the intraday peak approaching the 6.43 yuan mark to a three-month high. However, the Fed’s tightening policy in September has been further clarified, and Evergrande’s possible default concerns have been added to the bank’s arbitrage to customers. There may be room for a rebound in the demand for insurance. In addition, the expected increase in depreciation will also increase the demand for long-term purchases, and the scale of the forward foreign exchange settlement and sales deficit may further expand.
3.Communist China’s Central Bank Issued Documents To Ban Virtual Currency
The CCP has expanded its crackdown on cryptocurrencies, declaring that all activities related to virtual currencies are “illegal.” On Friday, China’s central bank, the People’s Bank of China (PBoC), specifically named an overseas virtual currency exchange and declared that it is also illegal to provide services to residents in China via the Internet. Many departments including the People’s Bank of China issued documents on Friday claiming that virtual currency-related business activities are illegal financial activities, and that the provision of services by overseas virtual currency exchanges to domestic residents through the Internet is also illegal financial activities; it will strengthen the risk monitoring and early warning of virtual currency trading speculation, and require Financial institutions and non-bank payment institutions shall not provide services for virtual currency-related business activities. The “Notice on Further Preventing and Disposing of the Risk of Virtual Currency Trading Hype” published on the official website of the Central Bank also stated that it will strengthen the management of Internet information content and access related to virtual currency.
Comment: The CCP dictatorship hopes to expand its influence on the world through the CCP’s own digital RMB.
4.The RMB Against The U.S. Dollar Closes Down
The renminbi against the U.S. dollar contracted in volume and closed down on Friday, while the central parity hit a new one-week high. Traders said that the U.S. index remained trading at the 93 mark, the Evergrande incident continued to ferment, and market unease increased. In addition, the increased demand for foreign exchange purchases near the end of the quarter affected the renminbi to be slightly under pressure. It is expected that the short-term exchange rate will continue to fluctuate with the range of the U.S. index. They also stated that the central bank’s open market operations have continued to maintain stability, and this move has also been partially interpreted as a hedge against Evergrande’s potential default; due to the loose liquidity of the domestic renminbi, the price of short-end swaps has fallen, which has also driven Long-end swaps fell back to a two-week low. A trader at another foreign bank believes that the latter mainly depends on the changes in risk sentiment, and the matter of Evergrande seems to be very uncertain. Holders of China’s Evergrande dollar bonds are still waiting for information about a key interest payment on Thursday, but a source familiar with the situation said that Evergrande is expected to make more clarifications in the next month. The Wall Street Journal on Thursday quoted officials familiar with the discussions as saying that Chinese authorities are asking local governments to prepare for the possible collapse of Evergrande.
5.CCP announced the establishment of China Electric Equipment Group Co., Ltd.
The State-owned Assets Supervision and Administration Commission of the State Council of China announced on Saturday that the State Council approved the establishment of China National Electrical Equipment Group Co., Ltd. The announcement published on the website of the State-owned Assets Supervision and Administration Commission of the State Council stated that related enterprises of the State Grid Corporation of China and China Xidian Group Co., Ltd. were incorporated into China Electric Equipment Group Co., Ltd. as a whole. China Xidian Group Co., Ltd. ceased to be an enterprise performing the responsibilities of investor by the State-owned Assets Supervision and Administration Commission of the State Council. China XD announced on September 15 that it received a notice from the controlling shareholder China XD Group Co., Ltd. that the State Council approved the reorganization and integration of some subsidiaries of China XD Group and State Grid Corporation of China. Establish a new company with the State-owned Assets Supervision and Administration Commission of the State Council performing the responsibilities of investors on behalf of the State Council. China Xidian said that after this reorganization and integration, the company’s controlling shareholder and actual controller have not changed.
6.Huawei Releases Open Source Operating System OpenEuler
China’s Huawei released openEuler, an open-source operating system for digital infrastructure, at the Connected 2021 conference on Saturday. The innovative version of openEuler 21.09 will be launched in the community on September 30. Huawei stated at the press conference that the Euler operating system can be widely deployed in various forms of equipment such as servers, cloud computing, edge computing, and embedded. The application scenarios cover IT (Information Technology), CT (Communication Technology) and OT. (Operational Technology), to achieve a unified operating system to support multiple devices, and one application development to cover all scenarios. According to Huawei, the first innovative version of openEuler 21.09 that supports all scenarios of digital infrastructure has been officially released and will be launched in the community on September 30. This version not only enhances the capabilities of servers and cloud computing scenarios, but also supports edge computing and embedded scenarios. In the first quarter of 2022, the Euler open source community will release a community LTS version that supports the integration of all scenarios, enabling partners to release commercial releases for different scenarios.
7.Everest Medicines Joins The mRNA vaccine competition
China may still not have a new CCP virus vaccine based on messenger ribonucleic acid (mRNA) technology. Even if the latest official data show that 1 billion Chinese have now been vaccinated with several domestic vaccines based on old technologies, many companies are still scrambling to introduce mRNA vaccines into China as soon as possible. Last week, Everest Medicines Ltd. (1952.HK), a cancer and autoimmune disease drug startup, announced that it had signed an agreement with Providence Therapeutics Holdings Inc. of Canada to distribute the mRNA vaccine it developed in China. One more member of the group. Everest Medicines’s conclusion of this transaction coincides with China’s signal that after long-term dependence on domestically-made inactivated vaccines, it may soon approve mRNA vaccines. It was said China has been reluctant to approve mRNA vaccines before.
Comment: The vaccine is a conspiracy of the CCP, and the CCP has not stopped expanding the evil forces.
8.China Coal Transportation And Marketing Association Claims To Stabilize Prices
The China Coal Transportation and Marketing Association recently organized a meeting to ensure supply of some large coal companies. The meeting stated that coal companies must do a good job in ensuring coal supply and price stabilization. News published in the association showed that representatives of coal companies participating in the meeting said that the current price gap between market coal and Changxie coal is constantly widening, and Changxie’s outsourcing coal is facing serious losses, and coal companies are under greater operating pressure. The State Council executive meeting on Wednesday said that more market-oriented methods are used to stabilize commodity prices and ensure the supply of electricity and natural gas in winter. The China Coal Industry Association and the China Coal Transportation and Marketing Association organized 13 key domestic coal companies to issue an initiative last week, saying that they should take the initiative to stabilize coal prices, not arbitrarily increase prices, and take the initiative to resist driving up market prices.
By【G-translators Financial Team】