10/18/21-10/24/21 Weekly Reports: The Truth Of Economy In China

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1.Ministry of Finance of the Communist Party of China: January-September National General Public Budget Revenue of 16 Trillion Yuan

The Ministry of Finance held a press conference on October 22 to introduce the fiscal revenue and expenditure in the first three quarters of 2021, and the data showed that the total national general public budget revenue from January to September was 1,640.20 billion yuan, an increase of 16.3% year-on-year and 8.9% over the same period in 2019.

In terms of fiscal expenditure, from January to September cumulatively, the national general public budget expenditure was 1,792.3 billion yuan, up 2.3% year-on-year. By central and local, significant spending fell 1.6% year-on-year, and non-urgent and non-rigid spending continued to be reduced; local expenditure grew 3% year-on-year. On the other hand, national financial “three guarantees” and additional vital spending grew faster, education, social security, and employment, health expenditures increased by 5.2%, 2.4%, and 2.3%, respectively. The first three-quarters of this year’s public budget revenue alone can solve universal health insurance 40 times! So please ask, if there is so much money, where did CCP spend it?

2.The Completion Rate of Reform Tasks of State-Owned Enterprises in Ningxia Reached 74.2%

As of the end of September, the overall completion rate of the reform tasks of state-owned enterprises under the district was 74.2%. On the other hand, the overall completion rate of the five cities was 66.9%, which was significantly faster. The State-owned Assets Supervision and Administration Commission of the autonomous region takes the three-year action of state-owned enterprise reform as a primary political task, consciously benchmarking and aligning itself with the table, and compressing responsibilities at all levels by personally grasping by the leading responsible comrades, leading by the leaders in charge, and explicitly holding by the responsible departments, and comprehensively coordinating and promoting. Five cities and enterprises regularly update the task ledger, inform the progress, thematic research work, timely problem solving, and vigorously promote the implementation of reform tasks on the ground.

To strengthen supervision and supervision to grasp implementation, the autonomous region’s State-owned Assets Supervision and Administration Commission has set up two supervisory groups to supervise and rectify slow progress and poor results by issuing work reminder letters, supervisory letters, and circulars to conduct pressure and form a closed loop of work effectively.

Comment: The elimination of private enterprises is underway

3.Evergrande Group Unexpectedly Pays an Overdue Bond Interest

Chinese real estate giant Evergrande, which is mired in a debt crisis, unexpectedly paid a tremendous appeal to international bondholders before the expiration of its grace period, thus avoiding a default that had investors and markets extremely worried. According to Reuters, the Wall Street Journal, and other media outlets, citing China’s Securities Times and other sources, Evergrande paid $83.5 million on Thursday (Oct. 21) to the trustee of the open-market U.S. dollar bond, who then made the payment to the bondholders.

Interest payments on the dollar-denominated bond were due on Sept. 23, but a 30-day grace period was allowed. After the interest payment on the bond was overdue, the bondholders had sent a notice of default to Evergrande, which eventually paid the interest on the eve of the expiration of the grace period, thus avoiding bankruptcy. The Wall Street Journal believes that if this bond defaults, it could potentially turn into the most significant corporate bankruptcy in Asia, as creditors could accordingly declare that some of Evergrande’s other debts follow suit.

Evergrande is China’s premier real estate developer and also the most indebted group of companies. As of the end of June this year, Evergrande had total liabilities of $305 billion, including about $89 billion in interest-bearing debt.

4.Jack Ma Appears in Spain

Jack Ma, the founder of Chinese Communist Party e-commerce giant Alibaba, has appeared in Spain has recently become a hot topic on the Internet. Alibaba’s stock has rallied sharply on the back of the news. According to Reuters, two Spanish media outlets reported that Jack Ma’s luxury yacht was moored in Mallorca, Spain. The news comes after it is revealed that Ma first went to Hong Kong to reunite with his family and meet with business friends before heading to Spain. It was Ma’s first trip out of the country since authorities investigated him after speaking at last year’s Bund Financial Summit in Shanghai. Spanish daily Mallorca said Ma was seen buying home décor at a local store in Puerto Andrax on Tuesday. The superyacht, named “Zen,” has been moving around the northwest coast of Mallorca in recent days, arriving in the southwestern city of Andrax on Tuesday.

On Wednesday, the report said the yacht docked near the town of Santa Ponsa (Santa Ponsa), which is located on the beach. However, the Reuters photographer was only able to see the smaller support vessel and not Ma himself. Reuters quoted Spanish newspaper El País as reporting that Ma arrived in Spain’s Balearic Islands on Saturday and has been staying there for several days. Several business people and bodyguards surrounded Ma.

Comment: Unlike other reports, the content of Ma’s message this time is not essential, who reported it is important

5.ICIJ Released Documents Showing That Tsai Chongxin May Hold Shares on Behalf of Jack Ma

The “Pandora Papers” released by the International Consortium of Investigative Journalists (ICIJ) show that Tsai Chongxin, the Taiwanese-Canadian executive vice chairman of the board of directors of China’s Alibaba Group, holds shares in Alibaba through a company registered in an offshore tax haven and operates IPOs and other businesses. According to a Central News Agency report today, the Pandora document reveals that Tsai Chongxin manipulated Alibaba’s IPO through an offshore company. Joseph Tsai is ranked as the second richest person in Canada on the Forbes list. His recent purchase of the NBA’s Brooklyn Nets and his $157 million penthouses in Manhattan, New York, have made him famous. The Taiwanese-Canadian businessman has an estimated net worth of $14.5 billion, mostly from his stake in the Chinese e-commerce giant Alibaba Group.

Tsai Chongxin controls a network of offshore companies, according to leaked records obtained by ICIJ. Cai is also considered to be Alibaba co-founder Jack Ma’s, right-hand man. According to the Padora Papers, Tsai is a director or shareholder of at least 12 companies registered in offshore tax havens in the British Virgin Islands, Cayman Islands, and Bahamas. The Torento Star, which contributed to the investigation, asked Doris Fischer, head of the China Business and Economics Department at the University of Würzburg, Germany, to review the documents. According to Fischer, although Tsai Chongxin is the second-largest shareholder of Alibaba, Chinese regulations prevent foreign investors from investing directly in the technology and media industries. Tsai is a Canadian citizen, so he can only hold shares in Alibaba’s registered subsidiaries in tax havens.

6.Venture Global Signs 20-Year LNG Supply Agreement with Sinopec

U.S. exporter Venture Global LNG has signed two 20-year contracts with Sinopec to supply the latter with liquefied natural gas (LNG) from its Plaquemines plant, according to a document posted on the U.S. Department of Energy’s website. According to the document, both deals are purchase and sale agreements totaling 4 million tons per year, which did not specify when the deals began but added that the contracts were signed last month. Venture Global also signed a third agreement with Sinopec’s trading arm, United Petrochemicals, to supply the latter with 1 million metric tons of LNG per year from its Calcasieu Pass Facility for three years starting March 1, 2023, according to another document posted on the U.S. government’s website.

7.Breaking Revolution Related Financial News: Yunhong Group Claims No Original Equity Transfer and Sale

People’s Daily reported on September 23 that Yunhong Group kept receiving complaints that some people or organizations released false information, taking advantage of the company’s U.S. stock listing, promising to solicit customers in the form of original share transfer and sales damaging the company’s image and interests. In this regard, Yunhong Group once again public statement said, Yunhong Group listed during the period, there is no original share transfer and sales, where individuals and organizations in the name of Yunhong Group to sell Yunhong Group original shares to the public, are false information, remind the community to raise awareness of friends, beware of being deceived. It is believed that the absence of any original share transfer and sale must not include the final share transaction in Giga Energy, which Bruno Wu brokered.

8.Five Southern Provinces and Regions from November All Coal and Electricity to Achieve Market-Based Transactions

Guangdong, Guangxi, Yunnan, Guizhou, Hainan five provinces and regions, from November will achieve all the coal and electricity into the power market transactions, the implementation of up and down floating market-based electricity prices. According to reports, from now until the end of October, for the market-based trading transition period, the five southern provinces and regions of coal-fired power generation enterprises initially sold to the power grid enterprises according to the benchmark price of electricity, can be their direct market-based transactions with power users, from November, coal-fired power generation enterprises all power into the electricity market, through market transactions to form the feed-in tariff. At the same time, the southern power grid is in an orderly manner to promote all commercial and industrial users into the power market transactions, the users. They have not yet directly from the power market, by the power grid company agent from the power market to purchase electricity, December 1, the implementation of the agent to buy electricity prices.

9.Vegetable Prices Go Crazy After the Holidays

Vegetable prices in the Communist Party of China have been rising recently, with some green leafy vegetables doubling in price, even higher than the price of pork. Some netizens said vegetables are too expensive, turn a circle out. The mainland agricultural network reported that on October 21, the mainland market prices of leafy vegetables rose. Some vegetable prices almost doubled. A few vegetables exceeded the “10 yuan/kg (500 grams)” mark, more expensive than pork. In Zhengzhou, the capital of Henan Province, spinach prices for 12 yuan/catty, cucumber for 6.8 yuan/catty, lettuce for 7 yuan/catty, Chrysanthemum for 9 yuan/catty, and skinned front and back leg meat for 9.8 yuan/catty, pancetta for 10.8 yuan/catty. The highest price of spinach in Shandong, a significant vegetable-producing province, can be sold for 14 yuan/catty, lettuce 6 yuan/catty, cucumber 6.5 yuan/catty, oleander 6 yuan/catty.

Mr. Li, who lives in Taiyuan City, Shanxi Province, Victory Street, said the price of green leafy vegetables has been high since the long holiday in November. Ms. Zhou, a vegetable merchant, said: I went into the vegetable are stunned, onion a few days ago the origin price is only 1.5 yuan/catty, but now up to 4 yuan/catty, the price went up like crazy. Not only Henan, Shanxi, Shandong, but the mainland market in many places on the price of leafy greens have also recently increased to varying degrees.

10. SOHO China’s Suspected Tax Evasion Is Being Investigated; Pan Shiyi May Be Happy to Mention the Red Pass

On the evening of October 22, the Beijing Municipal Bureau of Taxation of the State Administration of Taxation (SAT) issued a news release after receiving a report of alleged tax evasion by SOHO China’s subsidiary, Beijing Jianhua Land Co. According to SkyEye, Beijing Jianhua Land Co., Ltd. was established on February 22, 1994, and its main scope of business is to build, rent and operate houses in the courtyard of the former Beijing Municipal Engineering Machinery Company at No. 8 Dongdaqiao Bridge in Chaoyang District, and its legal representative is Pan Shiyi.

Beijing Jianhua Land Co., Ltd. is 60% owned by SOHO China Ltd. and 40% by Beijing Huayuan Real Estate Co. Previously, in September, SOHO China announced that Blackstone Group would terminate its acquisition of SOHO China. Blackstone formally issued a general offer on June 16 to invest in SOHO China Ltd. to acquire a controlling stake in the company, planning to receive 91% of its shares. The acquisition price was HK$5 per share, for a total of HK$23.658 billion, or about RMB19.62 billion. On the evening of August 6, SOHO China announced that the HK$23.6 billion transactions with Blackstone Group were formally filed for review by the General Administration of Market Regulation.

【G Translators- Financial Team】
Translator: Totoro

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

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