10/1/2021 Financial News In China: China Hikes 2021 Rare Earth Quotas By 20%; CCP Orders Top Energy Firms To Secure Supplies At All Costs

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1.China Hikes 2021 Rare Earth Quotas By 20% To Record Highs To Ease Supply Crunch

China hiked its annual rare earth output quotas on Thursday by 20% year-on-year to their highest levels on record, as it seeks to ease tight supply for manufacturers. A statement from the Ministry of Industry and Information Technology said the 2021 rare earth mining output had been set at 168,000 tonnes, up from 140,000 last year. The quota for smelting and separation or processing of rare earths into a form that can be used by manufacturers is 162,000 tonnes, also up 20% on the year, according to the statement.

2.NDRC Announces 2022 Tariff Quotas For Grain And Cotton Imports

CCP National Development and Reform Commission (NDRC) said Friday that the import tariff quota volume for 2014 is 7.2 million tons for corn and 894,000 tons for cotton. The 2022 grain and cotton import tariff quota document posted on the NDRC’s website said wheat import tariff quota volume for next year will be 9.636 million tons and rice will be 5.32 million tons and the application period for 2022 grain and cotton import tariff quotas is from Oct. 15 to 30, 2021. The NDRC will allocate the agricultural import tariff quotas to end users through authorized agencies by January 1 next year.

3.CNOOC Discovers 100-Million-Ton Oilfield In China’s Bohai Bay

China National Offshore Oil Corp (CNOOC) announced the discovery of China’s 100-million-ton oilfield Kenli 10-2 in Bohai Bay. The Kenli 10-2 oil field is located in the southern sea of the Bohai Sea, about 245 kilometers from Tianjin, with an average water depth of about 15.7 meters. The discovery well Kenli 10-2-4 drilled a total of 27 meters of oil encounter and completed to a depth of 1,520 meters. The appraisal well was tested to produce 81.55 tons of crude oil per day from a single well.

4.CCP To Ban Core Industrial And Information Data From Leaving The Country

CCP published data security draft regulations on Thursday by Ministry of Industry and Information Technology (MIIT) that would ban the export of what was classified as core data. The data will be classified into three categories: general data which has limited social impacts; vital data that could threaten China’s economic, social, cultural, cyber, ecological and nuclear wellbeing and compromise China’s overseas interests and core data that seriously threatens national security and could have major social and economic implications. Data on biological, space, polar and deep-sea activity and artificial intelligence is considered to be vital or core data, depending on a data set’s specific impacts.

5.CCP Orders Top Energy Firms to Secure Supplies at All Costs

CCP central government officials ordered Communist China’s top state-owned energy companies from coal to electricity and oil to secure supplies for this winter at all costs, according to people familiar with the matter. The order came directly from Vice Premier Han Zheng, who supervises the nation’s energy sector and industrial production, and was delivered during an emergency meeting earlier this week with officials from Beijing’s state-owned assets regulator and economic planning agency. It is said that Blackouts won’t be tolerated. Chinese coal futures on Thursday surged to a record as the country grapples with shortages of the fuel ahead of a week-long holiday. Prices have more than doubled this year amid soaring electricity demand from factories and slow output growth from mines.

6.SAFE Releases China’s External Debt Data at the end of June 2021

According to information from CCP State Administration of Foreign Exchange website, at the end of June 2021, Communist China recorded RMB 17.3119 trillion in outstanding external debt denominated in both domestic and foreign currencies (equivalent to USD 2679.8 billion, excluding those of Hong Kong SAR, Macao SAR, and Taiwan Province of China).

In terms of maturity structure, the outstanding medium-and long-term external debt was RMB 7570.7 billion (equivalent to USD 1171.9 billion), accounting for 44 percent; while the outstanding short-term external debt was RMB 9741.2 billion (equivalent to USD 1507.9 billion), taking up 56 percent, of which 38 percent was trade-related credit.

In terms of institutional sectors, the outstanding debt of general government totaled RMB 2748.6 billion (equivalent to USD 425.5 billion), accounting for 16 percent; the outstanding debt of the central bank totaled RMB 233.6 billion(equivalent to USD 36.1billion), accounting for 1 percent; the outstanding debt of banks totaled RMB 8108.4 billion (equivalent to USD 1255.2 billion), accounting for 47 percent; the outstanding debt of other sectors (including inter-company lending under direct investments) totaled RMB 6221.3billion (equivalent to USD 963 billion), accounting for 36 percent.

7.Evergrande Said Made 10% Repayment Of Wealth Management Products Due Sept 30

Evergrande said in a notice posted on its website, that China Evergrande’s wealth management unit has made a 10% repayment of wealth management products (WMPs) that are due by Sept 30. The payment was made on Thursday and relevant funds have been issued to investors’ accounts.

According to Caixin’s previous report, the scale of Evergrande Wealth’s maturing wealth management products is about RMB 40 billion. Investors can choose three payment methods: one is the cash installment payment method, in which 10% of the principal and interest amount will be paid on the last working day of the month of maturity and 10% will be paid every three months thereafter. The other is the physical assets payment method, which is used to pay out the physical assets, including the products of Evergrande such as houses, apartments and stores.

8.China Fortune Land Proposes 219.2 Billion Debt Restructuring Plan

China Fortune Land proposes a Debt Restructuring Plan which mainly rely on the sale of assets. The settlement plan of 219.2 billion yuan of financial debt is divided into 7 parts, of which about 107 billion yuan will be settled by selling assets and the rest of the debt will be settled by extension or interest rate reduction. After the asset and business restructuring, China Fortune Land will mainly retain Peacock City’s residential business, part of its industrial new city business and property management business. As of the close of trading on September 23, Huaxia was traded at RMB 4.01, with a total market capitalization of RMB 15.694 billion.

By【G Translators- Financial Team】
Author: Apple

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