10/12/21 Financial News In China: Orderly Liberalize On-grid Tariffs For All Coal-Fired Power Generation; Jiangsu Comprehensive Investigation Of “Mining”

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1. Orderly Liberalize On-grid Tariffs for All Coal-fired Power Generation  

The National Development and Reform Commission issued a notice on further deepening the market-oriented reform of coal-fired power generation on-grid tariffs. The notice proposes that the on-grid tariff for all coal-fired power generation will be liberalized in an orderly manner. In principle, all coal-fired power generation will enter the electricity market, and the on-grid electricity price will be formed within the range of “base price + fluctuations” through market transactions. Residential and agricultural electricity prices remain unchanged.

2. National Railways Carry Out Special Operations to Ensure the Supply of Coal Transportation for Power Generation and Heating This Winter and Next Spring

On October 12, according to the official WeChat account of the People’s Railway, China National Railway Group Co., Ltd. recently issued a notice, deciding to carry out a special operation to ensure the supply of coal for power generation and heating throughout the winter and next spring.

In accordance with the general idea of “adjusting structure, increasing capacity, keeping the bottom line, and maintaining growth”, the special action to ensure supply has determined the day for achieving more than 75,000 coal vehicles and more than 50,000 thermal coal vehicles (including containers) on the road this winter and next spring. The goal of average loading, focusing on increasing the supply of power plants and electric coal with medium and long-term contracts with less than 7 days of inventory, and fully organizing the increase in coal transportation.

3. China Baowu Plans to Add Eight New Listed Companies Within Five Years

On October 12, China Baowu held a special promotion meeting for mixed-use reform projects. A total of 21 mixed reform projects were launched at this meeting, and it is planned to implement mixed reforms through capital increase and share expansion, restructuring and listing. The 21 projects are the enterprises that Baowu will focus on implementing mixed reform this year, including the new material industry related to the main iron and steel industry, the smart service industry, the resource and environmental industry, and the industrial financial industry, including Ouyeel Chain Gold Renewable Resources Co., Ltd. , Baowu Group Environmental Resources Technology Co., Ltd., Ouyeel Industrial Products Co., Ltd. and other enterprises.

4. The 10.98% Equity of Kyushu Securities Was Liquidated by the Second Shareholder Sinopec

According to the latest information disclosed by the Beijing Equity Exchange, 370 million shares of Kyushu Securities (accounting for 10.98% of the total share capital) were listed for transfer, with the transfer base price of 474 million yuan, and the transferor was China Petroleum & Chemical Corporation (hereinafter referred to as “Sinopec Group”). In other words, Sinopec Group will exit after the transfer.

At present, the shareholders of Kyushu Securities are Jiuding Group, Sinopec Group, and Zhonghe Kyushu, holding 85.7626%, 10.9792%, and 3.2582% respectively. In January 2017, Sinopec Group invested about 5 billion yuan to become a new shareholder through the capital increase and share expansion of Kyushu Securities, holding 370 million shares of Kyushu Securities, making it the second largest shareholder.

5. Jiangsu Comprehensive Investigation of “Mining”

The Jiangsu Provincial Communications Administration conducted a comprehensive investigation of the virtual currency “mining” behavior in the province, and monitored that the export traffic of mining pools in Jiangsu Province carrying out virtual currency activities reached 136.77 Mbps, and the total number of Internet IP addresses participating in “mining” was 4502, which consumes computing power. The resource exceeds 10PH/s, and the energy consumption is 260,000 kWh/day. The Jiangsu Provincial Communications Administration stated that in the next step, the Provincial Communications Administration will continue to carry out virtual currency “mining” situation analysis, and further cooperate with relevant departments to form a “multi-dimensional, multi-level” disposal system, and dispose of related websites and Mobile applications, cooperate with the traceability and crackdown on illegal virtual currency transactions.

6. Continue to Impose Anti-dumping Duties on Imported Polyamide-6,6 Chips Originating In the United States for a Period of 5 years

News from the official website of the Ministry of Commerce on October 12, on October 12, 2009, the Ministry of Commerce issued Announcement No. 79 of 2009, deciding to import polyamide-6,6 chips from the United States, Italy, Britain, France and Taiwan. Anti-dumping duties are levied. The anti-dumping tax rates are 25.2%-37.5% for American companies, 5.3%-20.9% for Italian companies, 20.9% for British companies, 20.9% for French companies, and 20.9% for Taiwanese companies. The implementation period is from October 13, 2009. 5 years from date.

7. Thermal Coal Breaks Through the 1500 Mark and Hits a New High

Sino-Singapore Jingwei, October 12th. The coal “three brothers” continues to rise! After the opening on the 12th, the main contracts of the three major varieties of thermal coal, coking coal and coke in the black series of futures rose rapidly, and thermal coal soon reached its daily limit. As of the close of the domestic futures market at 3 pm, the main thermal coal contract was still at the daily limit, at 1507.8 yuan/ton, a record high. Coking coal rose 5.02% to 3465.5 yuan/ton; coke rose 4.46% to 3779 yuan/ton.

8. Tesla’s Domestic Monthly Sales Surpassed 50,000, Model Y’s Monthly Sales Reached 30,000

According to China’s car sales data released by the Federation of Passengers, Tesla China once again broke the market performance of 40,000 vehicles in August, setting a new record of 56006 vehicles, an increase of 27% month-on-month and a year-on-year increase of 394%. Among them, 33,033 Model Y units were sold in China. As of September, Tesla’s cumulative sales in China in 2021 have exceeded 300,000 vehicles. Among them, domestic sales alone have exceeded 200,000 vehicles, and export models have also exceeded 100,000.

【G Translators- Financial Team】
Author: 和理非

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