10/5/2021 Financial News in China: CBIRC: strictly forbidden to misappropriate loans to speculate Moutai and Pu’er tea; Huawei is the “spoiler” of mobile payment

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1.CNOOC expects that it will still be in the stage of rapid development in the next three years

CNOOC said that it is expected to remain in the stage of rapid development in the next three years, and it needs to retain enough cash to meet the needs of business development. It is expected that the dividend ratio after the listing of a shares will not be less than 30%. CNOOC will hold an extraordinary general meeting in Hong Kong on October 26 to consider the proposal to list on the main board of the Shanghai Stock Exchange. Market participants estimate that the issuing price of CNOOC A shares may reach 11-13 yuan, equivalent to about 13-15 Hong Kong dollars, at least 50% higher than the current price of Hong Kong shares.

2.Humanwell Healthcare’s Subsidiary was exposed commercial bribery incident

Following Harbin Gloria Pharmaceuticals, another leading anesthetic product company was assessed as “serious” dishonesty due to commercial bribery. According to a notice issued by the Henan Provincial Public Resources Trading Center on September 18, Yichang Humanwell Healthcare has committed commercial bribery in Henan Province, and the province’s medical prices and recruitment credit untrustworthiness were rated as “serious”. Yichang Humanwell is an A-share subsidiary of Renfu Pharmaceutical, which holds 80% of the shares. The four drugs involved in bribery are mainly narcotic drugs, and narcotic products are the main source of revenue for Yichang Humanwell. In the first half of 2021, Yichang Humanwell’s operating income was 2.99 billion yuan, of which the sales income of anesthetic products was about 2.5 billion yuan.

3.Huawei’s “spoiler” mobile payment, Alipay and WeChat payment also have major adjustments

According to reports, Huawei payment has begun to test the water, the application scenario is Huawei developers conference 2021 ticket sales. According to reports, during the event, through the “Huawei wallet” scan code payment Huawei developers conference 2021(Together) tickets, select the bank card that “Huawei Pay” supports in the “Huawei Pay” to purchase tickets. It should be noted that users currently purchase goods in the application scenario of “Huawei Wallet”, and there is no “Huawei Pay” option. This also means that the sales of Huawei Developer Conference tickets choose Huawei to pay, or a test of the water.

According to the official website of the People’s Bank of China, in July 2014, Shenzhen Xunlian Zhifu Network Co., Ltd. obtained a payment license. The business types are Internet payment, mobile phone payment, and digital TV payment, the business coverage is nationwide. The latest information shows that the current business types are only Internet payment and mobile phone payment, valid until July 2024. At present, the head of the APP includes WeChat Pay, Alipay, cloud flash payment, as well as similar Meitan payment, Jingdong Financial APP, Huawei’s test is undoubtedly a breakthrough in the field of mobile phone brands trying to pay.

4.China Banking and Insurance Regulatory Commission: To ensure the reasonable financing needs of enterprises such as coal and electricity, it is strictly forbidden to misappropriate loans to speculate Moutai and Pu’er tea

Recently, in order to maintain the normal order of the coal power industry and commodity market, help to ensure the supply and price stability, strictly prevent the use of bank insurance funds from hoarding, driving up prices, and ensuring high-quality economic and social development, the China Banking and Insurance Regulatory Commission issued the “Notice on Matters Concerning the Normal Production of the Coal and Electricity Industry and the Orderly Circulation of the Commodity Market to Ensure the Smooth Operation of the Economy.”

In the next step, the China Banking and Insurance Regulatory Commission will maintain a high-pressure situation, and will strictly investigate the illegal flow of bank insurance funds into the commodity market with the fourth quarter on-site inspection projects, and strictly investigate the misappropriation of bank insurance funds for speculation, hoarding, violations of laws and regulations such as raising prices. Take regulatory measures in accordance with the law for the organization’s self-examination, lack of active reporting and bad nature, take regulatory measures in accordance with the law, initiate administrative punishment procedures in a timely manner, and be held accountable in accordance with laws and regulations.

5.Another “Top 100 Real Estate Companies” Announcement: The company has set up an emergency team

The debt is topping, and Fantasia Holdings Group Co., Ltd. can’t pay the money. On Oct. 4th Fantasia said in a statement, the company should have in Oct. 4th payment of USD 0.206 billion (about 1.3 billion yuan) of the bill missed a payment. With the support of local governments, financial institutions and financial advisers, an emergency team has been set up and a risk resolution plan is being formulated with the support of local governments, financial institutions and financial advisers, according to interface news reports, in order to resolve the stage dilemma as soon as possible. The company will disclose the follow-up progress in a timely manner.

6.The “two maintenance” of the property market means that real estate credit will be “released”?

The recent regular meeting of the Monetary Policy Committee of the People’s Bank of China in the third quarter of 2021, when talking about the real estate market, proposed “two maintenance”, that is, maintaining the healthy development of the real estate market, safeguarding the legitimate rights and interests of housing consumers. This is the first time that the real estate market has been mentioned at the quarterly regular meeting of the Central Bank’s Monetary Policy Committee in recent years, especially in the context of the increase in credit risk events in the real estate market in recent years, which has aroused great concern in the market.

As the real estate industry enters a period of in-depth adjustment, the news of individual real estate enterprise project suspension, tight capital chain, and finding strategic investors due to business difficulties has spread from time to time, involving both local real estate enterprises and head real estate enterprises. Coupled with the recent sharp reduction in prices and sales of some real estate companies, some cities have issued a “limit order”. Various news has aroused concerns about the real estate market.

7.The IPO of the Beijing Stock Exchange: Such companies may encounter obstacles!

Recently, a number of securities companies have found out the reserve projects to explore potential listed companies on the Beijing Stock Exchange, but they have also found new problems in the process of combing. As some of the companies listed on the New Third Board are subsidiaries of listed companies, such listed companies may face regulatory requirements for spin-off listing on the Beijing Stock Exchange in the future.

It is understood that in 2019, the China Securities Regulatory Commission issued the “Several Provisions on the Pilot Domestic Listing of Subsidiaries of Listed Companies”. In principle, the spin-off of listed companies should meet a number of conditions, one of the “hard threshold” is “listed companies for the recent 3 consecutive fiscal years and for the recent 3 fiscal years, less the rights and interests enjoyed by the proposed split subordinate subsidiary of the net profit after, attributable to shareholders of the listed company of net total of not less than 0.6 billion yuan”, wherein the net profit excluding non-recurring profit and loss before and after versus low-value calculation.

8. Geely’s Volvo Cars aims to raise US$2.9 billion in IPO

Geely-owned Volvo Cars plans to raise 25 billion Swedish crowns (US$2.9 billion) through an initial public offering (IPO), the Swedish carmaker said on Monday of what would be one of Europe’s biggest listings this year. Volvo said it will list on the Nasdaq Stockholm stock exchange this year and that Chinese owner Geely Holding would remain its biggest shareholder. Volvo said is targeting an operating margin of between 8per cent and 10per cent by 2025. It is also aiming for annual sales of 1.2 million cars, up 56per cent from the 770,000 it sold in the 12 months to June 20 this year.

By【G Translators- Financial Team】
Author: Tracy

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