11/1/21-11/7/21 Weekly Reports: HCoin’s Week Listing Rally Is Promising; Hong Kong Stocks Tumble This Week; Zhang Yiming Steps Down As Chairman Of ByteDance

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1.Hcoin Has Been Listed for One Week with a Pleasing Rise

On Monday, Himalayan Coin— HCoin (HCN) was officially listed and broke through $10 from $1 in less than 48 hours of listing. As of Friday night in the US East, the price of HCN hovered around $18 to $20. Between the majority of warriors have a preferred purchase price of 1HCN = 0.1USD, which means the price of warriors’ HCoin assets has risen nearly 200 times in less than five days (if you haven’t sold out :P). As Mr. Miles Guo said, HCoin can’t go down below $1 or even $10. At the same time, as a newborn in the digital currency world, HCoin’s value can be said to have a great future. It is foreseeable that HPay will be listed shortly, and the powerful chemistry generated by the two may push HCoin to a new level.

Note: The prediction part only represents my personal opinion. Investment still needs to be cautious; the views are for reference only.

2.Hong Kong Stocks: HSI Closed 1.4% Lower, Dragged down by Large Technology Stocks and HSBC’s Decline

Hong Kong stocks closed lower on Friday, weighed down by large technology stocks and a drop in HSBC Holdings after the Bank of England’s decision to leave interest rates unchanged. The Hang Seng Index was down 354.68 points or 1.41% at 24,870.51 at the close. The Hang Seng China Enterprises Index was down 1.48% at 8,820.83 points. The Hang Seng Index and the SOE Index fell 2% and 1.6% for the week, respectively. HSBC Holdings sank 3.6%, the second-largest percentage drop among the Hang Seng Index components. HSBC, an index heavyweight, dragged the Hang Seng Index down 69 points.

The Hang Seng Technology Index fell 98.80 points or 1.55% to 6,276.52 points. Alibaba, Meituan, and Tencent Holdings all fell more than 2.7 percent. The Hang Seng Mainland China Property Index fell 2.8% as concerns about the real estate sector’s liquidity crisis intensified after a financial product issued by property developer Jia Zhaoye’s Jin Heng Wealth was not paid as expected. The Hang Seng Energy Index fell 3.1%. Shares of coal miners fell as China’s Development and Reform Commission issued seven statements in the past two days indicating recent increases in coal production and efforts to control coal prices.

3.Mortgage Lending Speeds up in Some Parts of China as the Communist Party Frequently Signals an Improved Real Estate Credit Environment

Recently, mortgage lending has picked up in some parts of the country, but lines remain tight in most areas. In recent times, regulators have frequently released signals of an improving real estate credit environment. In the current month, real estate credit data has improved. Some executives of listed banks also revealed that the pace of individual mortgage issuance should be accelerated. Among them, executives of a listed bank in Zhejiang told that its real estate development loans and personal mortgage loans had been fine-tuned. If the bank-wide quota is not enough, they can also apply for a percentage from the regulation.

However, combined with the bank sources in Shanghai, Guangzhou, Nanjing, Wuhan, and other places to see, most of the city mortgage quota is still tight, the lending cycle and the same as before, about 4 to 6 months. In addition, interest rates have also loosened, with mortgage rates falling for the first time in October from a year earlier. Shell Research Institute reported that in October, the average interest rates for first and second mortgage loans in 90 cities were 5.73% and 5.99%, respectively, both down one basis point from a year earlier. Since this year, individual real estate companies have experienced credit risks. Financial institutions have been cautious about lending to the real estate industry, which inevitably leads to overreaction to real estate loans. However, in recent times, financial management has been corrected promptly. Since September, the monetary authorities have repeatedly stressed the need to meet the reasonable capital needs of the real estate market.

At the end of September, the People’s Bank of China and the CBRC jointly held a symposium on real estate finance, instructing central banks to grasp accurately and implement an excellent prudent management system for real estate finance, maintain a stable and orderly input of real estate credit, and maintain the stable and healthy development of the real estate market. For the first three-quarters of the real estate loan growth rate slowed down significantly. In other situations, the People’s Bank of China Financial Markets Division Director Zou Lan said on October 15, on the one hand, due to the recent exposure of individual sizeable real estate enterprises, financial institutions risk appetite for the real estate industry fell significantly, there is a consistent contraction behavior; on the other hand, some financial institutions on the “three lines of four files, On the other hand, some financial institutions have some misunderstanding of the “three lines and four files” financing management rules, so that the loan should reasonably support the original project, but also to a certain extent caused some real estate enterprises capital chain tightness.

Comment: while lending and collecting taxes, this communist sickle is on two sides of the open edge. At the same time, no lending, no one can afford to buy a house, real estate dead; lending, the future alarming debt rate infinitely higher, financial institutions dead. This forced to choose one or the other to kill the problem of the Chinese Communist Party is challenging to do ah.

4.Industrial Bank Landed the First Batch of Energy Conservation Bonds in China

Recently the first batch of national energy supply bonds landed, Industrial Bank underwriting two of them. The issuers were Fujian Huadian Fruit Energy Development Co., Ltd. and Shaanxi Coal Industry Chemical Group Co. In recent years, Societe Generale has taken “merchant banking + investment banking” as a grip and played an active role in supporting the development of the real economy, promoting the stable operation of the macroeconomy and the effective allocation of financial resources by taking advantage of its bond business. As a result, by the end of September, the bank had underwritten RMB 512.069 billion of debt financing instruments for non-financial enterprises, ranking among the top in the market for many years in a row.

5.Agricultural Bank of China Participates in the Multilateral Central Bank Digital Currency Project and Recently Upgraded the Digital People’s Name Coin App to Start “Acceleration” Again

Agricultural Bank of China (ABC), one of the significant domestic participants in the Multilateral Central Bank Digital Currency Bridge Project, has provided a test case of “Crude Oil Import Trade Remittance” for its newly released use case manual. This test case verifies the feasibility of the Currency Bridge to improve the efficiency of cross-border payments in international trade settlement scenarios. While meeting policy and regulatory requirements, the Currency Bridge model is faster, cheaper, and easier to operate than the traditional model. Agricultural Bank of China will subsequently explore the use of Currency Bridge to integrate foreign exchange and cross-border settlement processes and optimize the user experience.

It is reported that the Agricultural Bank of China will continue to participate in the testing and construction of the Currency Bridge project under the guidance of the Digital Currency Research Institute of the People’s Bank of China, with a focus on the business linkage between Currency Bridge and the PBoC’s trade finance blockchain platform, to explore ways to improve the efficiency of cross-border payments and international business services and to enrich the cross-border scenario of digital RMB. On November 3, the Multilateral Central Bank Digital Currency Bridge Research Project, supported by the Bank for International Settlements Hong Kong Innovation Centre and co-sponsored by the Hong Kong Monetary Authority, the Central Bank of Thailand, the Central Bank of the United Arab Emirates, and the Digital Currency Institute of the People’s Bank of China, released a use case manual to introduce the application scenarios and testing progress of the project. The manual showcases a total of 15 potential application scenarios for the Currency Bridge, including international trade settlement, cross-border e-commerce, and supply chain finance.

Comment: When will this digital soft money come out? I believe most of the people inside the wall are also expecting this digital coin to rise 200 times like H a specific coin 😛

6.67.7 Billion Yuan of Particular Loans from China Development Bank to Support Coal and Coal Power

To support the coal and electricity supply this winter and spring, the Development Bank has set up particular loans to keep the main coal-producing areas and key coal enterprises to increase the supply of coal, support the power supply, heating critical areas of crucial power enterprises coal reserves, efforts to alleviate the difficulties of coal and electricity business and make every effort to do a good job this winter and spring energy supply financial services. As a result, as of the end of October, 148 projects have been granted particular loans of 67.7 billion yuan to achieve the release of 21.5 billion yuan promptly for the smooth operation of critical enterprises to provide developmental financial support. In addition, Zhejiang Datang Usha Mountain Power Generation Co., Ltd. and other key coal power enterprises issued particular loans of 9.3 billion yuan, involving 400 million kilowatts of installed coal power, which is expected to support the purchase of 15 million tons of coal.

7.The Central Bank Reverse Repo Again Increased to 100 Billion Yuan to Put Liquidity

On the 5th, the central bank’s open market reverse repo operation volume was raised to 100 billion yuan from 50 billion yuan the previous day. This is the second time since November 3 that the central bank has increased the number of reverse repo operations, with a total of 200 billion yuan of liquidity injected in the last three days. Market institutions believe that, compared with the previous situation where the central bank mostly carried out reverse repo operations of 10 billion yuan a day at the beginning of the month, the recent central bank has continuously increased the number of functions to show the attitude of maintaining a reasonable abundance of liquidity. Since the beginning of this month, the market has been relatively easy, and money market rates have been running below the central bank’s operating rate. It is expected that the central bank will continue to use accurately according to changes in the liquidity situation, liquidity will continue to remain adequate, and money market rates will run smoothly around the central bank’s operating rate.

8.Zhang Yiming, Founder of ByteDance, Has Stepped down as Chairman and Quit the Board of Directors

3 March – ByteDance founder Zhang Yiming has stepped down as chairman of the company after announcing his resignation as chief executive officer (CEO) in May. A person familiar with the matter told Reuters. New CEO Liang Rupo has taken over as chairman of the company’s five-member board of directors, including General Atlantic, Sequoia Capital, Coatue Management, and Susquehanna International Group, the person said, adding that the decision was made this year. However, it’s unclear when Zhang relinquished his title of chairman and any changes to his more than 50 percent of the company’s voting power. ByteDance said in May that Zhang would move to a “key strategic” role at the end of the year. That plan has not changed, the people said. After the surprise announcement about Zhang’s move in May, his college roommate and ByteDance co-founder Liang Rupo led the company through a wave of new regulatory action against the giant tech company.

In an internal letter sent to employees on Tuesday, Liang also announced a major organizational shake-up to see ByteDance split into six business segments. TikTok CEO Zhou Shizi will no longer serve as a chief financial officer (CFO) of parent company ByteDance to focus on running TikTok. In recent months, the founders of some of China’s best-known tech companies have chosen to let go of their day-to-day operations. Last week, short-video platform Racer said co-founder Suhua stepped down as CEO.

9. Haidilao: Will Gradually Shut down 300 Stores!

Haidilao announced in the evening of November 5, decided to gradually shut down about 300 Haidilao stores with relatively low customer traffic and less-than-expected business performance by December 31. Some of these stores will be temporarily rested, the opportunity to reopen, the most extended resting period of no more than two years. From the viewpoint of the most critical indicator of the restaurant companies, the table turn rate of Haidilao in 2019 is 4.8 times/day, which is a high level in the industry; the table turn rate of Haidilao in 2020 falls to 3.5 times/day; the table turns rate of Haidilao in the first half of 2021 drops to 3 times/day, of which the table turn rate of newly opened restaurants is 2.3 times/day. As a result, Haidilao’s net profit margin also declined significantly, from 8.81% in 2019 to 1.08% in 2020; in the first half of 2021, Haidilao’s net profit margin fell to 0.48%. As of the close of business on November 5, 2021, the share price of Haidilao was HK$21.05 per share, and the total market capitalization was HK$114.91 billion, which has evaporated about HK$350 billion from the high point in February 2021.

10.Sunshine City Mentions Dollar Bond Rollover Bond Decline Accelerates

Nov. 1 Sunshine City Group put forward a proposal to extend its U.S. dollar bonds on Monday, intensifying the decline of its domestic and overseas bonds; two domestic corporate bonds, “20 Yangcheng 03” and “20 Yangcheng 01,” were suspended for the second time by Shenzhen Stock Exchange after plunging, both down around 40%. However, sources close to the company revealed that Yangcheng had paid the interest payable on today’s medium-term notes. According to YangGuang, the debt extension is due to the company’s short-term liquidity difficulties caused by the problematic real estate industry situation. There is no substantial change in the company’s fundamentals and production, and operation. The company will make an excellent overall solution plan, take all necessary measures to protect liquidity such as selling assets and project equity and safeguard all creditors’ legitimate rights and interests according to—preservationtion of investors’ principal and interest.

This time, Sunshine City’s debt extension plan added the full guarantee of the actual controller. The person mentioned above, close to the company, also pointed out that “many holders agree to the extension of USD debt.” According to insiders of Sunshine City, the company’s production and operation are expected at present. However, the company has set up a special team to ensure the orderly operation of its primary business while strictly controlling its budget, reducing expenses, and increasing efforts to protect sales and promote repayment to overcome the short-term liquidity crisis safely. Sunshine City Group announced earlier that it had made an exchange offer for three of its USD bonds and sought the consent of eligible holders to amend the relevant management covenants of the said notes, etc. In addition, Sunshine City proposed to seek support for the covenant amendments of five of its USD bonds.

The corporate bonds issued by Sunshine City, “20 Yangcheng 03”, closed at a daily low of RMB23, down 41%; “20 Yangcheng 01” also closed at an everyday low of RMB27.85, down 38.1%, and were both suspended by the Shenzhen Stock Exchange for the second time. “20Yangcheng 04” closed at RMB 23, down 7.63%, with an intraday low of RMB 20.501. Today is the interest payment day of “17 Yangcheng MTN004”. The latest balance of the bond is 1.105 billion yuan, with a coupon rate of 6.90%, and the company released the interest payment announcement on the medium-term note last Monday.

【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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