1.China Evergrande makes onshore coupon payment
China Evergrande Group 3333.HK has paid an onshore bond coupon due on Tuesday, four people with knowledge of the matter said, amid concerns about a possible offshore default by the cash-strapped developer later this week. Hengda Real Estate Group Co, Evergrande’s flagship unit, has remitted funds to pay an onshore bond coupon of 121.8 million yuan ($19 million), the people said. One of the people said Evergrande, Communist China’s No. 2 developer, needs to prioritises its limited funds towards domestic market where the stakes are much higher for the country’s financial system. The liquidity crisis at Evergrande, which has $300 billion in debt and has missed a series in bond payments, has roiled global markets. High-yield bonds issued by Chinese property developers have been especially hammered. An Evergrande bond due March 23, 2022 will officially be in default if the company does not make good after a 30-day grace period for a missed coupon payment that had been due on Sept. 23.
But the offshore bond market has responded positively after China central bank’s assuring comment and coupon payments of two major developers. An index of China high-yield debt .MERACYC , which is dominated by property developer issuers, has seen spreads tighten from last week’s record levels to around 1,484 points on Tuesday. Sunac China 1918.HK , which has a $27.14 million payment due Tuesday, has paid its bondholders, a source with direct knowledge of the matter said.
2.Mid- to high-income earners will have to pay more tax for the year-end bonus from next year
In the fourth quarter, wage earners began to look forward to the year-end bonus, and the year-end bonus personal income tax preferential policy will have new changes, which is related to how much you actually get the year-end bonus. A number of fiscal and taxation experts analyzed the first finance and economics that the year-end bonus individual tax preferential policy expires before the end of the year, which mainly affects the middle and high-income earners. The year-end bonus they receive from next year will need to pay more personal tax. For enterprises, if there is a year-end bonus plan and the year-end bonus is not issued this year, it is obvious that employees can continue to enjoy the tax reduction policy before the end of this year. There are different views on whether to continue the year-end bonus tax preferential policy, and it remains to be seen.
3.Xiaomi executives say there is no separate listing or financing plan for the current automotive business
An executive of Chinese smartphone giant Xiaomi said at the Group Investor Day on Tuesday that the auto business currently has no plans for a separate listing or financing and has begun product positioning. In terms of products, Xiaomi executives said that more than 400 R&D personnel have arrived, and product positioning has already begun. “We have interviewed more than 2,000 core groups of people, began to study customer needs, and defined the first car for the core groups; and then gradually cover more people in the future.” Zang Zhiyuan, marketing director of Xiaomi’s international marketing department, said on Weibo earlier that Xiaomi cars will be officially mass-produced in the first half of 2024.
4.Alibaba Unveils Custom ARM-Based Server Chip for Cloud Computing Data Centers
Chinese tech giant Alibaba Group Holding Ltd said on Tuesday it has developed a processor that will be used to power servers in its data centers. The development marks the latest foray into semiconductors for the company, mirroring moves from other global cloud computing players while also dovetailing with Chinese government’s priorities to boost the nation’s chip sector. Developed by Alibaba’s in-house semiconductor unit T-Head, the chip – the Yitian 710 – is based on architecture from UK-based Arm Ltd, and will not be available for commercial use outside of Alibaba.
5.Communist China regulators should act further to free up apps’ access to rivals’ links
Chinese internet platforms have not gone far enough in unblocking external links, as instructed by authorities, and relevant government bodies should take further action to intervene, a state-run newspaper said on Tuesday. According to the Economic Information Daily, a newspaper owned by the Xinhua News Agency, this showed companies could not be relied on to carry out “self rectification”, and government bodies should take further actions including taking apps that do not follow the rules offline. The article said Tencent’s WeChat users still cannot access to full links from Weibo, while ecommerce platforms still block keywords in including “Weixin”, WeChat’s Chinese name. Communist China’s internet space is dominated by a handful of technology giants who have historically prevented rivals’ links and services from being shared on their platforms. The practice is often referred to as ‘walled gardens’.
6.The downward pressure on Communist China’s economy may be greater than expected
The lower-than-expected third-quarter economic data released by Communist China on Monday clearly disturbed the market. In addition to multiple unexpected and unexpected factors such as the epidemic, flood conditions, and high global energy prices, the effects of campaign-style emission reductions have also begun to appear. When planning the balance between stability and development of economic policies in the fourth quarter, it is worth exploring how to prevent ineffective macro-control and internal consumption.
Whether it is the energy supply guarantee meeting held by the Development and Reform Commission after the recent electricity price reform, or the quarterly data release meeting of the Bureau of Statistics, in many functional department meetings discussing energy shortages in Communist China, when analyzing the causes of energy shortages and economic downturns, no one mentioned the artificial reasons related to dual energy consumption control and sports emission reductions. While some functional departments are doing their best for stabilizing the economy, they often ignore the harm to the real economy caused by the introduction of regulatory policies that are “strict and strict, and loose and loose”.
7.The tight supply and demand pattern of thermal coal is difficult to solve in the short term, and many parties prepare for the winter energy supply
Under the premise that there is no significant increase in the supply side, the price of thermal coal has jumped again, and the situation of tight supply and demand is difficult to solve in the short term; In terms of overall energy supply, the National Development and Reform Commission, the National Energy Administration and other relevant departments and enterprises, we are actively preparing for energy supply this winter and next spring through multiple measures. On October 18th, the National Bureau of Statistics announced the production of major energy products in September. Data show that, in addition to a slight decline in raw coal production, domestic crude oil, natural gas and electricity production maintained steady growth in September, with a large increase in electricity and natural gas production.
8.National real estate development investment growth rate has slowed for 7 consecutive months
The cooling of the real estate market has been further confirmed by official data. On October 18th, the latest data disclosed by the National Bureau of Statistics showed that in the first three quarters, the national real estate development investment increased by 8.8% year-on-year, with an average growth of 7.2% in two years, compared with January to 8 months down 0.5 percentage points; sales in the area of 1303.32 million square meters, with year-on-year growth of 11.3%, two years it increased on average by 4.6% per cent than Jan fen to Aug fen down 1.3 percentage points from. Only from the national real estate development investment, as measured by the self-February this year touched a year tipping point, growth will continuously narrowed. At this point, the indicators not only before the end of this year for the first time down to single digits, but also has been 7 months narrowed.
By【G Translators – Financial Team】
Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.