10/07/2021 Financial News In China: Q3 Foreign Exchange Reserves Are 3.2 Trillion U.S. Dollars, The Largest Decline In Six Months; More Real Estate Companies Default

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1.Epic Skyrocketing! Petrochina’s Stock Price Hit New High!

International natural gas prices soared again. On the evening of October 5, New York natural gas futures surged nearly 10%, setting the highest closing price since 2008. On October 6, the energy sector of Hong Kong stocks surged against the trend, PetroChina Hong Kong stocks reached new highs, and related natural gas concept stocks continued to surge. PetroChina Hong Kong stocks hit a two-and-a-half-year high.

On October 6, Hong Kong stocks opened higher and lowered. The Hang Seng Index closed down 0.57% to 23966.49 points. Oil and gas stocks bucked the trend and led the gains. As of the close of Hong Kong stocks, PetroChina’s shares rose 4.28%, a record high since May 2019. Sinopec and China National Offshore Oil rose by 3.06% and 2.34% respectively. China’s natural gas rose by 25%. At the same time, COSCO Marine Energy, which is engaged in natural gas transportation, closed up 14.83%.

Comment: In China with the firewall preventing Chinese people getting real information, all that is left to them is to be fooled.

2.Hong Kong Stocks October 7 Real Estate Stocks Decline List: Kaisa Group Fell 7.54% And Ranked First

On October 7, as of the close, the Hang Seng Index rose 3.07% to close at 24,701.73 points. Among the top ten real estate stocks in Hong Kong stocks at closing declines were Kaisa Group, which fell by 7.54%, Modern Land, which fell by 5.66%, China Uptown fell by 3.85%, Zhongliang Holdings fell by 3.51%, China’s urban infrastructure fell by 2.92%, and Dragonair. China Real Estate fell by 2.61%, Jinao International fell by 2.22%, Chenxing Development fell by 2.22%, Ligao Group fell by 2.04%, and Yincheng International Holdings fell by 1.44%.

Comment: Now everybody including the mainland Chinese feel the incoming collapse of real estate market. The fake Chinese economy largely depended on real estate market which can’t last forever.

3.More Real Estate Companies Default, China’s Real Estate Difficulties Worsen

Fantasia’s bonds defaulted and the stocks of two Evergrande companies were suspended. The debt problem in China’s real estate market further escalated. On Tuesday, the debt problem that plagued China’s real estate market further intensified. Earlier, a real estate developer defaulted on its bonds, and Evergrande, the world’s most indebted real estate developer, extended its stock suspension to the next day without any explanation. On Monday, Fantasia Holdings, a mid-sized real estate developer, stated in a document submitted to the stock exchange that the company “did not (on the date) paid” the $206 million in bonds that were due on that day, triggering a formal default. . A few weeks ago, Fantasia also assured investors that the company “does not have any liquidity problems.”

Comment: From this news, we can see the real estate market is actually collapsing.

4.China’s Q3 Foreign Exchange Reserves Are 3.2 Trillion U.S. Dollars, The Largest Decline In Six Months

Reuters, Beijing, October 7-The Central Bank of China announced on Thursday that China’s foreign exchange reserves at the end of September were US$3.201 trillion, a decrease of US$31.5 billion from the end of August, a decline of 0.97% for two consecutive months, a single-month decline since March maximum. The State Administration of Foreign Exchange explained later that foreign exchange reserves are denominated in U.S. dollars, and the amount of non- U.S. currencies reduced after being converted into U.S. dollars, combined with changes in asset prices and other factors, led to a decline in the scale of foreign exchange reserves in September.

5.Chinese Real Estate Plans To Be Privatized For Approximately HK$1.91 Billion And Currently Still Holds Approximately 582 Million Shares Of Evergrande

Hong Kong Chinese Land 0127.HK said on Wednesday that it has proposed to be privatized by SOLAR BRIGHT LTD. for approximately HK$1.91 billion (US$245.3 million) in cash. The cancellation price is HK$4 per share, which is more than the closing price on the last full trading day before the suspension A premium of approximately 83.5% for the share of HK$2.18.

Chinese Land was once a major shareholder of China Evergrande Group 3333.HK, which was troubled by the debt crisis. However, at the end of September, China Land and its major shareholder Chen Kaiyun sold 340 million shares of Evergrande within a week, and their shareholding dropped to About 620 million shares, the shareholding ratio fell below 5%, according to the regulatory definition, it is no longer a major shareholder of Evergrande.

6.Hong Kong Policy Address: Study On The Renminbi-Denominated Value Of Southbound Stock Connect Stock Trading, And Evaluate The Development Of A Regional Carbon Trading Center

The Chief Executive of the Hong Kong Special Administrative Region, Carrie Lam, issued a policy address on Wednesday that proposed to enhance Hong Kong’s status as an international financial center, including studying the possibility of allowing “Southbound Trading” stock transactions to be priced in RMB and assessing the feasibility of developing into a regional carbon trading center.

Carrie Lam read out the last policy address of the current government in the Legislative Council in the morning. She said that the central government sent a delegation to Hong Kong to preach the “Outline of the 14th Five-Year Plan” to all walks of life, reiterating its support for Hong Kong to further promote interconnection with the mainland financial market, develop offshore RMB business, and strengthen the functions of an international asset management center and risk management center. Build a green financial center in the Guangdong-Hong Kong-Macao Greater Bay Area and promote the development of high-end and high-value-added financial services.

Comment: CCP is trying to replace HK dollar with RMB in Hongkong.

7.China’s Power Rationing: Lack Of Power Affects Guangdong Factories “We Are Facing Rising Costs”

From factories in the South busy fulfilling Christmas orders to residents in northern cities snapping up candles, China is generally facing power shortages. Dongguan, Guangdong, the southern manufacturing center of China, known as the “world factory”, is experiencing disturbances caused by power shortages. A Guangdong TV manufacturer said that because of the power curtailment policy, the company’s production capacity has decreased and the delivery time has been extended. To ensure delivery, suppliers need to operate night shifts or use generators for production.

8.China Banking And Insurance Regulatory Commission: To Ensure The Reasonable Financing Needs Of Coal-Fired Power, Coal And Other Production Enterprises

In order to maintain the normal order of the coal power industry and the commodity market, help ensure supply and price stabilization, and strictly prevent the use of bancassurance funds to hoard and drive up prices, the China Banking and Insurance Regulatory Commission issued a notice on October 5, requiring protection of coal power, coal, steel, and non-ferrous metals. Reasonable financing needs of metal and other production companies.

The notice emphasized that it is necessary to strictly prevent bank insurance funds from affecting the normal order of the commodity market. It is strictly forbidden to use bancassurance funds to illegally participate in the speculation of coal, steel, non-ferrous metals and other commodities. It is strictly forbidden to embezzle all kinds of loans, including business loans, consumer loans to speculate on high-end consumer products such as Moutai, and precious Pu’er tea. Bank insurance funds are strictly prohibited from flowing into the stock market, bond market, and futures markets. The project illegally draws loans and breaks loans.

Comment: CCP-controlled CBIRC is only a tool to fool the Chinese who will never know the real reason for the power ration and outage.

【G Translators- Financial Team】
Author: Andrew

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