10/20/2021 Financial News in China: Coal Sector Stock Plummeted by More Than 6%; Baoneng’s Interest-bearing Debt Is Nearly 200 Billion

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1.Coal Sector Stock Plummeted by More Than 6%

On October 20, the A-share coal sector dropped significantly. At the close of the day, the Oriental Fortune coal sector fell 6.62% overall. In the previous three consecutive trading days from October 15 to October 19, the coal sector rose by 3.22%, 5.79% and 1.03%, respectively. Today, the opening of domestic commodity futures generally fell, and many futures such as thermal coal fell by the maximum limit. In the previous three trading days, the main contract for thermal coal continued to hit record highs.

2.Baoneng’s Latest Debt Situation Is Exposed: Interest-bearing Debt Is Nearly 200 Billion

On the evening of October 19, Zhongju Hi-tech (600872) issued a reply announcement stating that the controlling shareholder Zhongshan Runtian Investment Co., Ltd. (hereinafter referred to as “Zhongshan Runtian”) currently has a debt default amount of 2.975 billion yuan, Zhongshan Runtian’s controlling shareholder The assets of Shenzhen Baoneng Investment Group Co., Ltd. (hereinafter referred to as “Baoneng Group”) were also further disclosed. As of the end of September 2021, the total assets of the controlling shareholder Baoneng Group, the controlling shareholder of the company, were approximately 830 billion yuan. After excluding the consolidated financial assets and liabilities, the total assets of the group were approximately 430 billion yuan, and the total interest-bearing liabilities amounted to 192.7 billion yuan (including Bank loans, trust loans, wealth management products and corporate bonds issued), with a balance of external guarantees of 30.8 billion.

3.The National Development and Reform Commission Intends to Organize the First Batch of Potash Fertilizer Reserves Through Low-price Auctions

On October 20, at a press conference of the National Development and Reform Commission, spokesperson Meng Wei said that on the afternoon of October 20, the National Development and Reform Commission planned to organize the first batch of potash fertilizer reserves through low-price auctions. The price of domestic chemical fertilizers has risen rapidly this year and has reached a new high in the past ten years. The price of domestic chemical fertilizers has increased significantly, which has adversely affected farmers’ enthusiasm for growing grain and safeguarding national food security.

4.National Energy Administration: Actively Promote the Integration of New Energy Power Generation Projects and Multiple Generations

On October 20th, the General Department of the National Energy Administration issued a notice on actively promoting the integration of new energy power generation projects and issuing more and more relevant work. The notice proposes that all grid companies are requested to take effective measures for wind power and photovoltaic power generation projects with grid connection conditions to ensure timely grid connection in accordance with the principle of “combination and integration”.

In accordance with the principle of “multiple generation and full generation”, strictly implement the priority power generation system, strengthen scientific dispatch, optimize the arrangement of system operation methods, realize more generation and full generation of new energy power generation projects, and further improve the power supply capacity. Intensify overall coordination and speed up the construction of supporting grid connection projects for wind power and photovoltaic power generation projects, and fully connect with the construction of new energy power generation projects to ensure simultaneous operation.

5.The Public Offering Of the First Batch of Securities Companies’ Margin Products Was Completed And The Threshold Was As Low As 1,000 yuan

A substantial step has been taken in the public offering of securities companies’ margin products, which are related to the use of idle funds in the accounts of hundreds of millions of investors. It is understood that after the completion of the transformation of the margin products of the two leading brokerage firms, the threshold for investor participation has been greatly reduced, and the minimum amount of initial purchase has been reduced from the previous 50,000 yuan to 1,000 yuan.

The Shanghai Securities News learned that the margin products of two leading brokerage firms have recently completed the transformation of public offerings. Among them, Huatai Securities Asset Management’s product “Huatai Zijin Tiantianfa Money Market Fund” (hereinafter referred to as “Tiantianfa Fund”) has been approved for application materials for the registration change. At the same time, Guotai Junan Asset Management’s “Guotai Junan Cash Steward Currency Collective Asset Management Plan” has also been formally approved by the China Securities Regulatory Commission for the public offering transformation.

6.12 Investment Bank Tickets for Centralized Publicity

The “Investment Banking Business Violation Punishment Information” column on the official website of the China Securities Regulatory Commission recently disclosed 12 fines at one time, involving violations such as initial sponsorship projects, bond projects, and non-public issuance projects. Seven securities firms including CITIC Securities and Pacific Securities and 19 investment bank personnel received fines.
From the perspective of penalties, most securities firms and related responsible persons have been taken measures to issue warning letters, and investment bankers who have left their jobs are also unable to escape accountability. The 12 violations listed this time are mainly penalties from July to September this year. Among them, 9 are for administrative supervision and 3 are for self-regulation.

7.The Latest 70 City Housing Prices Announced, Dropped

On October 20, the National Bureau of Statistics released statistical data on the changes in the sales prices of commercial residential buildings in September. According to Sheng Guoqing, the chief statistician of the City Department of the National Bureau of Statistics, in September 2021, the sales prices of commercial housing in 70 large and medium-sized cities showed a slight downward trend compared with the previous month, and the year-on-year increase continued to fall.

According to Sheng National Day, the sales prices of newly-built commercial housing and second-hand housing in various tier cities remained flat or declined month-on-month. The year-on-year increase in the sales prices of newly-built commercial housing and second-hand housing in various tier cities continued to fall.

8.Ministry of Agriculture and Rural Affairs: Increasing Autumn Grain Production Is A Foregone Conclusion

According to a news from the Ministry of Agriculture and Rural Affairs on October 20, the current harvest of autumn grains is nearly 80%, and the recent continuous rain has a limited impact on the output. The increase in autumn grain production is a foregone conclusion. The annual grain output is expected to hit a record high again and will remain above 1.3 trillion catties for seven consecutive years. (Reporters Yu Wenjing and Hu Lu, poster designer Yang Yiqun) ????.

Comment: The floods in Henan and Shanxi and Shaanxi did not affect the output of autumn crops, and even hit a new high. The news from the Ministry of Agriculture and Rural Affairs made reporters question? ? ? ? Again and again.

【G Translators- Financial Team】
Author: 和理非

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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