11/5/2021 Financial News In China: Airlines To Apply Fuel Surcharge From Friday As Oil Prices Rise; Ministry Of Commerce Releases “Guidelines For Foreign Investment In China 2021”

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1.NDRC Said Power Plant Coal Storage Available Days Reached 20 Days

The Communist China National Development and Reform Commission said on Thursday evening that 112 million tons of coal have been stocked in the nation’s power plants and the number of available days is up to 20 days, reaching the normal level of the year. Among them, the coal stock in three northeastern provinces of the centralized power plant is available for 32 days; the coal stock in Hunan, Hubei and Jiangxi provinces is available for 25 days; the coal stock in Guangdong, Guangxi, Guizhou, Yunnan and other provinces is available for more than 20 days. The NDRC previously published six statements on Wednesday and three more on Thursday, showing recent coal production and its efforts in reining in prices.

2.Ministry of Commerce Releases “Guidelines for Foreign Investment in China 2021”

The CCP Ministry of Commerce officially released the “China Foreign Investment Guidelines (2021 Edition)” on November 5, at the fourth China International Import Expo. The new edition includes five chapters, namely, “Entering China”, “Investing in China”, “Legal System for Foreign Investment in China”, “Procedures for Foreign Investment” and “Life of Foreigners in China”. The new version of the Guidelines adds carbon peaking and carbon neutrality in the first chapter. The Ministry of Commerce will continue to revise and improve this Guidelines on a regular basis according to the annual statistical data and changes in regulations and policies.

3.Saudi Arabia’s Public Investment Fund Submits for QFII Status in China

According to information posted on the website of the China Securities Regulatory Commission, the US$450 billion Saudi Arabia Public Investment Fund (PIF) has applied to China for a Qualified Foreign Institutional Investor (QFII) license. This will enable them to trade RMB-denominated stocks directly without a third party. China is Saudi Arabia’s largest trading partner and also the largest client of Saudi Aramco, whose chairman is Yasir Al Rumayyan, also the president of PIF. The PIF has not disclosed any investments in China. Since unveiling its transformation plan five years ago and changing its domestic-focused investment strategy, most of its publicly disclosed investments have been in the U.S. and Europe.

4.Airlines To Apply Fuel Surcharge From Friday As Oil Prices Rise

Civil Aviation Administration said that Air China, Ruili Airlines, Xiangpeng Airlines and many other airlines will resume fuel surcharge on domestic routes from November 5. It is the first time to resume fuel surcharge since January 2019 as oil prices surge. The move comes as oil benchmarks trade close to their highest levels in years. The standard of the fuel surcharge on domestic routes is 10 RMB per passenger for routes shorter than 800 km (inclusive) for adult passengers and 20 RMB per passenger for routes longer than 800 km. Take Beijing-Shanghai route as an example, the flight distance from Beijing Capital International Airport to Shanghai Hongqiao International Airport is 1,178 kilometers, and a one-way ticket will be charged 20 RMB fuel surcharge according to the rule.

5.Guangzhou and Shenzhen Told To Allocate 10% Of Land For Affordable Rental Homes

Guangdong government released documents about Accelerating the Development of Secure Rental Housing on Friday. Both Guangzhou and Shenzhen cities are required to allocate at least 10% of their land for rental housing to meet rising demand for homes especially among the young. The document specifying that Guangzhou, Shenzhen, Zhuhai, Shantou, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhanjiang cities are key cities for the development of secure rental housing. It is said that the scientific layout of housing should be based on the size of the resident population, the distribution of population inflow, the support of public service facilities and traffic combined with urban rail transit sites and key areas of urban construction, etc.

6.China Mobile IPO Approved To List On Shanghai Exchange

China Mobile received A-share approval to list on Shanghai Exchange on Thursday, the China Securities Regulatory Commission said on its website. The prospectus shows that China Mobile intends to issue no more than 965 million shares, raising 56 billion yuan. China Mobile may surpass China Telecom and to become the largest A-share IPO in the past 10 years. China Unicom and China Telecom have been listed on the main board of the SSE. After the listing of China Mobile in A-shares, the three major telecom operators will all return to A-shares market.

7.Kaisa Units Trading Suspended As Property Debt Crisis Deteriorating

Kaisa Group (1638.HK) and three of its units had their shares suspended from trading on Friday, a day after an affiliate missed a payment to onshore investors. Kaisa said in a statement on Thursday it was facing unprecedented liquidity pressure due to a challenging property market and rating downgrades. The products issued by Jinheng Wealth and guaranteed by Kaisa are overdue for payment. Kaisa said on Thursday that it has communicated with Jinheng Wealth at the first time to discuss the payment plan. Two investors said the principal and interest of the financial products totaled 12.788 billion yuan.

8.Evergrande’s Shareholding In Shengjing Bank Dropped From 49.59% To 19.85%

The latest shareholding disclosures document on Hong Kong Stock Exchange on November 4 shows that Evergrande Group’s shareholding in Shengjing Bank dropped from 49.59% to 19.85% after the completion of the sale on October 18, with a total liquidation of 11 billion yuan. According to the announcement, Evergrande sold its stake in Shengjing Bank in two transactions, one is 167 million shares and the other is1.753 billion shares, with transaction prices of RMB 6 yuan/share and RMB 5.7 yuan/share respectively.

【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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