11/6/2021 Financial News In China: Evergrande Reduces Stake In Hengteng Network; Beijing’s Housing Pre-sale Funds Supervision Limit Increased

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1.Beijing’s Commercial Housing Pre-sale Funds Supervision Limit Increased

The key regulatory limit of funds for pre-sales of commercial housing in Beijing has been significantly increased by 43% to no less than 5,000 yuan per square meter. On November 4, the Beijing Municipal Commission of Housing and Urban-Rural Development issued the “Measures for the Supervision and Administration of Pre-sale Funds for Commercial Housing in Beijing (2021 Revised Edition for Public Comment)”.  .  Buyers can only open an online signature after depositing the deposit and the down payment that meets the personal housing loan regulations in full into the special account to ensure that the pre-sale funds are directly credited to the account in time and in full.  In addition, the pre-sale funds key regulatory limit can be comprehensively determined by each district based on factors such as corporate credit level, operating conditions, and delivery conditions. It is not less than 5,000 yuan per square meter, a significant increase of 43% compared to the previous one.

2.China’s Central Bank Large Reverse Repurchase

Since November, the People’s Bank of China (hereinafter referred to as the “central bank”) has carried out reverse repurchase operations for 7 days for 5 consecutive working days.  On November 1 and November 2, the central bank carried out 10 billion yuan reverse repurchase operations respectively.  Since November 3, heavy operations have been carried out. The amount of reverse repurchase operations on November 3 and November 4 was both 50 billion yuan, and it was further increased to 100 billion yuan on November 5.  Operating interest rates remained unchanged at 2.2%.  In the past, financial institutions’ capital needs were relatively low at the beginning of the month, and the banking system’s liquidity was usually relatively abundant. Except for the month of the Spring Festival, the central bank’s reverse repurchase operations at the beginning of the month were dominated by small amounts such as 10 billion yuan.  Therefore, three consecutive days of large reverse repurchase operations this week are quite “rare.”

3.“Meta Universe” Once Again Collective Daily Limit

In the morning trading on November 5, the most concerned A-share sector was still the hot meta-universe sector, and related concept stocks strengthened collectively.  Internet celebrity entrepreneur and speaker Luo Yonghao also stated on social media that “measured from a certain angle”, his next entrepreneurial project is a “meta universe company.”  In the morning trading on November 5, the major A-share stock indexes showed divergence and relatively little fluctuation.  As of midday’s close, the Shanghai Composite Index fell 0.24%, the Shenzhen Component Index rose 0.17%, and the ChiNext Index rose 0.36%.  Among the subdivisions, the most concerned one is undoubtedly the meta universe.  In early trading today, the concept stocks of Meta Universe strengthened collectively, with Guoguang Electronics, Yishang Display, and Jiachuang Video’s daily limit, and Goertek’s shares rose 5.95%.

4.Bohai Bank 2.8 Billion Pledge Case Tracking

Regarding Jiangxi Jimin Trusted Pharmaceutical Industry Investment Co., Ltd. (hereinafter referred to as “Jimin Trust”) in the Nanjing branch of Bohai Bank “2.8 billion yuan in deposits pledged”, the Nanjing branch of Bohai Bank accepted the media interview for the first time and made a public statement.  “In a year or so, Jimin Trust also collected three times the deposit interest of our bank from Huaye Petrochemical Department. Other information we have also shows that: Jimin Trust is right  This matter is known to the public, and it is not a mere deposit customer that it claims to the outside world.” However, that night, Jimin Credential issued the “Reiterate Again!”  Our group has no knowledge of the pledge of deposits!  “The statement said: “Our group once again reiterated that our group has no knowledge of the entire operation process of the 2.8 billion yuan deposits of the two subsidiaries of the Nanjing branch of Bohai Bank pledged and financing guarantees for third-party companies.”

5.China Evergrande Reduces Its Stake In Hengteng Network

China Evergrande reduced its holdings of Hengteng Network for two consecutive days, and Tencent became the largest shareholder. China Evergrande reduced its holdings of Hengteng Network shares for two consecutive days.  It is worth noting that on August 17, Shengjing Bank announced that the largest shareholder Evergrande Group (Nanchang) Co., Ltd. planned to transfer 167 million domestic shares of the company at a price of about 1 billion yuan.  Shengjing Bank announced on September 29 that Shengjing Financial had invested 99.93 billion yuan to acquire 1.753 billion domestic shares held by Evergrande Group (Nanchang) Co., Ltd. After the reduction, China Evergrande’s shareholding ratio fell to 22.98%, ranking the second largest shareholder, and Tencent became the largest shareholder with a 23.9% shareholding ratio.  In the secondary market, China Evergrande fell 2.54% on November 5 to HK$2.3, with a market value of HK$30.5 billion; Hengteng Networks fell 13.25% to close at HK$2.03, with a market value of HK$18.7 billion.

6.Haidilao Just Announced: Closing 300 Stores

Haidilao, a hot pot restaurant that was once “crazy expansion”, is about to shrink.  On the evening of November 5, Haidilao issued an announcement stating that it has decided to gradually close about 300 Haidilao stores with relatively low passenger flow and poor operating performance before December 31, 2021. Some of these stores will be temporarily closed for reorganization.  Open, the longest rest period does not exceed two years.  Haidilao said that the company will not lay off employees and will properly settle the employees who have closed stores within the company.  As soon as the news came out, #sea fishing will close 300 about stores# quickly climbed to the top of the Weibo hot search list. It is reported that Haidilao opened more stores during the epidemic and its performance was affected.  In 2020, Haidilao’s revenue was approximately 28.614 billion yuan, a year-on-year increase of 7.8%, of which restaurant operating income was approximately 27.454 billion yuan; in 2020, Haidilao’s net profit was approximately 310 million yuan, a year-on-year decrease of 86.8%.

7.Medical AI Company Eagle Eye Technology Completes IPO

On November 5, 2021, the “first medical AI stock” Eagle Eye Technology (Yingpu Airdoc) officially landed in Hong Kong stocks.  On the first day of listing, the opening price was HK$67.6 per share. Eagle Eye Technology, established in 2015, is one of the first companies in China to provide early detection, auxiliary diagnosis and health risk assessment solutions for artificial intelligence retinal image recognition.  The current core product Airdoc-AIFUNDUS (1.0) is an artificial intelligence medical device software (SaMD), completely independently developed and approved to assist in the diagnosis of diabetic retinopathy. Before going public, Eagle Eye Technology has gone through 7 rounds of financing.  As the company’s first and second round of investors, Jiuhe Venture Capital is expected to return nearly a hundred times the book value.

Comment: The development of AI is part of the CCP’s evil plan.

8.Zhang Ruimin Resigns As Chairman Of Haier Group’s Board Of Directors

On November 5, Haier Group’s official website showed that at the eighth employee congress of Haier Group, the company’s founder Zhang Ruimin offered to no longer participate in the nomination of the new board of directors. Zhou Yunjie was elected as the chairman of the new board of directors and appointed the chief executive officer.  .  As of the close of November 5, Haier Zhijia, a listed company of Haier Group, closed down 0.98%, with a quoted price of 26.30 yuan per share; Haier Biology closed down 3.64%, with a quoted price of 87.12 yuan per share. The financial report shows that in the first three quarters of Haier Zhijia’s operating income was 169.964 billion yuan, an increase of 10.1% over the same period; net profit was 10.06 billion yuan, an increase of 25.5% year-on-year. Among them, from January to September 2021, the company’s cumulative online and offline refrigerator retail sales share were 38.7% and 41.4%, respectively, an increase of 3.6 and 2.1 percentage points year-on-year.  Haier and Casarte ranked first and second in the industry in terms of retail sales share.

By【G-translators Financial Team】
Author: 雪梨

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

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