10/22/2021 Financial News In China: Ministry Of Commerce Released Plan For Development Of Foreign Investment; NDRC Plans To intervene Coal Price To Ease Power Crunch

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1.Ministry of Commerce Released The “14th Five-Year Plan” For Development Of Foreign Investment

Communist China’s Ministry of Commerce has released its 14th Five-Year Plan for the development of foreign investment, which proposes to promote a higher level of opening to the outside world and reduce the negative list of foreign investment access. The plan proposes to gradually relax the ratio of foreign investment restrictions in more areas to allow foreign-invested or wholly-owned operations and to ease the threshold of access to key areas. And the opening up of telecommunications, Internet, education, culture, health care and other related fields will be promoted in an orderly manner.

The official website of the Ministry of Commerce published the full text showed that by 2025, the actual absorption of foreign direct investment during the 14th Five-Year Plan period will be totaled at 700 billion U.S. dollars; the absorption of foreign investment in high-tech industries will reach 30% in 2025 (29.6% in 2020) and the absorption of foreign investment in FTZ ports will reach 19% (17.9% in 2020).

2. NDRC Plans To Intervene Coal Price To Ease Power Crunch

China’s National Development and Reform Commission (NDRC) said on Thursday that in order to strengthen the supervision of coal market prices and study specific measures to intervene in coal prices, the NDRC organized a special survey on coal production, circulation costs and prices. The NDRC WeChat public press release pointed out that the recent rapid rise in coal prices, not only significantly pushed up the production costs of downstream industries, but also have negative impact on the winter power and other energy supply security. In response to the recent rapid rise in coal prices, the NDRC held a special forum previously to study the implementation of intervention measures on coal prices in accordance with the law, to promote the return of coal prices to a reasonable range and to ensure a stable supply of energy security.

3. SAFE Releases Data On Foreign Exchange Settlement

As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in the US dollar terms, in September 2021, the amount of foreign exchange settlement and sales by banks was USD 227.2 billion and USD 206.3 billion, respectively, with a surplus of USD 20.9 billion. During January to September 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 1859.8 billion and USD 1679.8 billion, respectively, with an accumulative surplus of USD 180.0 billion. The amount of cross-border receipts and payments by non-banking sectors was USD 537.7 billion and USD 532.2 billion, respectively, with a surplus of USD 5.5 billion. During January to September 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 4403.4 billion and USD 4168.6 billion, respectively, with an accumulative surplus of USD 234.8 billion.

4.The “New Founder Group” Officially Registered in Hengqin, Zhuhai

The “Founder System” listed companies, including Founder Securities (601901), announced on Thursday evening that the controlling shareholder, China Founder Group, and five other companies have completed the establishment of the New Founder Group according to the restructuring plan, and have obtained business licenses. The full name of the company is “New Founder Holdings Development Co. Ltd, register in in Zhuhai, Hengqin. The SPV (Special Purpose Vehicle) established by Ping An Life holds approximately 66.5% of the total shares, the SPV established by Zhuhai Huafa Group Company Limited (on behalf of Zhuhai State-owned Assets) holds approximately 28.5% of the total shares, and the shareholding platform (partnership) formed by creditors holds approximately 5%.

5. Ping An Bank Says Its Overdue Loans Rise On Baoneng Liquidity Crunch

Ping An Bank (000001.SZ) said its “special-mention” and overdue loans increased in the third quarter mainly due to a liquidity crunch at Shenzhen Baoneng, a property and financial services conglomerate. Ping An Bank disclosed on Wednesday that its non-performing loan ratio was 1.05% at the end of the third quarter, down by 0.13% from the end of the previous year and down by 3 BP (basis points) from the end of June. As of the end of the third quarter, the bank’s concern loans accounted for 1.37%, up 0.26% from the end of the previous year and up 41 BP from the end of June, while overdue loans accounted for 1.40%, down 0.02% from the end of the previous year and up 15 BP from the end of June.

6. Sinocat First Day Trading Price Fell Below IPO Price

Sinocat Environmental Technology (688737) start trading on the Shanghai Stock Exchange’s STAR Market on October 22 with the opening price fell below the IPO price of 70.9 yuan. Sinocat is the first stock this year that with its first-day trading price below IPO price. The lowest trading price once fell to 58.88 yuan in the morning’s session, down 16.95% relative to the issue price. Sinocat is known as the first fuel cell catalyst stock and is one of the few major domestic manufacturers of vehicle gas-pollution treatment catalysts in China. The company’s revenue has grown at a CAGR of 176.89% in the past three years. Securities Times-Databao statistics show that, as of yesterday, 41 of the secondary new stocks listed this year had fallen below the IPO price.

7.Pig Giants Hedging with Futures to Protect Against Falling Pig Prices

Many Pig farming giants have released their misery performance forecast for the first three quarters. Since their business are facing huge price risks, pig giants intend to actively using derivatives to hedge. Securities Times reporter learned from the “2021 China Agriculture and Animal Husbandry Industry (Derivatives) Conference” that among the top 20 leading enterprises in Pig farming, 19 have submitted application materials for delivery depots of the Dalian Commodity Exchange, and 11 have become delivery depots of pig futures. China Animal Husbandry Information Network data show that as of early October, the national average price of live pigs fell below to the minimum of 11 yuan/kg 70% down from the price at the beginning of the year. Currently the pig industry has suffering from deep losses.

8. Ali Ventures To Liquidate Mango Excellent Media

Mango Excellent Media announced that the shareholder Ali Ventures and Hunan Caixin Jingguo Equity Investment Partnership (Limited Partnership) had signed the “Share Purchase Agreement” on October 20, agreeing to transfer 93.65 million shares of the company held by Ali Ventures to Caixin Jingguo, accounting for 5.01% of the total share capital of the company. After the completion of the transaction, Ali Ventures no longer holds any shares of Mango Excellent Media. The share transfer price is 47.56 yuan per share, at a 21% premium (300413) and the total share transfer price is 4.454 billion yuan.

【G Translators- Financial Team】
Author: Apple

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

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