9/27/2021 Financial News In China: 5.21 Million Mu Crop Failure In Henan Province; Power Outages In Northeast China: No Cell Signal, Traffic Lights Out Of Service

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1. 5.21 million Mu Crop Failure in Henan Province

As Communist China’s major grain-producing province, Henan Province grain production accounted for 1/10 of the country. However, this year’s heavy rains and floods brought unprecedented challenges to this major grain-producing province.  According to Henan Province Vice Governor Wu Guoding, the province’s crop disaster area reached 15.15 million mu, including 9.78 million mu of disaster, 5.21 million mu of crop failure. The autumn grain will have a certain degree of reduction in production.

2. Power Outages in Northeast China: No Cell Signal, Traffic Lights Out of Service

On September 26, power restrictions in many parts of the Northeast caused concern. Some netizens said that the power outage has lasted for 3 days, and the time is getting earlier and earlier, and there is no signal for cell phones. Some netizens also mentioned that the traffic lights on the main roads in the city could not operate normally because of the power outage, and some stores had to light candles for business. State Grid customer service staff said that in fact, in the northeast, orderly power consumption has been implemented for non-residents, but there is still a power shortage after the implementation. The entire power grid is currently in danger of collapse, which is why measures have been taken to restrict power to residents.

3. 2nd Round of Guangzhou Land Auction: 33% Abortive, 80% Reserve Price Sold

From September 26 to 27, the second batch of centralized land auction was held in Guangzhou, and a total of 24 plots were launched on the first day, but 8 were aborted, accounting for up to one-third of the total. And the successful sale of 16 plots of land totaling 48.2 billion yuan in premium, basically at the reserve price. At the same time, state-owned real estate contributed more than 90% of the amount. This is in stark contrast to the situation in April this year, when state-owned and private bids were competing, and four plots of land were capped and entered the lottery.

4. Freight Pressure Extends to Ground Transportation

Freight pressure extended from sea to land transport, the transit time of the China-Europe Railway Express extended to more than 50 days. The person in charge of China-Europe railroad transport business of the Super Cargo said that initially it took about 5-18 natural days from issuing the bill of lading to picking up the goods at the station, while the first half of this year is about 20 to 35 natural days, the longest may be more than 50 natural days at present. “Now it is in the peak shipping time, especially near Christmas, the volume of related commodities has increased, so the price of China-European Railway Express has also increased, the current price of a 40HQ container is about 16,000-18,000 U.S. dollars, up about 2,000-3,000 U.S. dollars from the beginning of the year.”

5. Futu Considers Secondary Listing in Hong Kong This Year

Futu Holdings has launched preparations for a secondary listing in Hong Kong and aims to list its shares by the end of this year, sources said, according to a report in Sing Tao Daily. Based on the size of a 5% share offering, the capital raised would be about $700 million. In response, Futu said that it had responded to such questions at its second quarter earnings meeting. We are aware of some recent changes and trends in the capital markets, and the company is actively conducting research in this area to make a comprehensive assessment,” said Arthur Chen, chief financial officer of Futu.

6. Huobi Global to Retire Existing Communist China Users

Bitcoin trading platform Huobi Global announced on Sunday that in response to local government regulatory policy requirements, it has stopped new user registrations in mainland China on Friday, September 24, and plans to complete the orderly retirement of its stock of users whose identities are in Communist China by the end of this year under the premise of ensuring the safety of users’ assets. The Central Bank of Communist China and other departments issued a document on Friday specifying that virtual currency-related business activities are illegal financial activities and that overseas virtual currency exchanges providing services to domestic residents via the Internet are also illegal financial activities.

7. More Than 10 Japanese Companies Decide to Stop or Reduce Use of Xinjiang Cotton

Because of the risk of “human rights”, more than 10 Japanese companies have taken the initiative to reduce trade with Xinjiang, adjusting the acquisition plan of Xinjiang cotton. The latest survey results show that in Japan’s apparel industry, the leading companies in the sporting goods industry, more than 10 companies have decided to stop or reduce the use of Xinjiang cotton. Among them, three companies have permanently stopped using Xinjiang cotton, one company temporarily stopped using it, and five companies plan to stop using it in the future. At the same time, there are four companies decided to eliminate the use of Xinjiang cotton.

8. CNOOC to Apply for an A-share Offering of Up to 2.6 billion Shares

China National Offshore Oil Co., Communist China’s largest offshore oil and gas producer, announced Sunday that it intends to apply for an A-share offering on the main board of the Shanghai Stock Exchange, offering up to 2.6 billion yuan shares to raise up to 35 billion yuan. The company’s announcement on the website of the Hong Kong Stock Exchange shows that the A-share issue represents about 5.82% of the company’s share capital and about 5.50% of the company’s enlarged share capital after the completion of the RMB share issue; the company and the lead underwriter may exercise the over-allotment option to over-allot up to 15% of the initial size of the RMB shares.

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

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