11/8/2021 Financial News In China: More Than 1,000 Bank Branches Shut Down During The Year; Namewee Uses NFT To Sell “Fragile” To Against CCP

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1. CCP Says Cross-border Internet Brokerages and Other Businesses May Face Capital Outflow Risks

(Reuters) On Nov.8, Communist China’s official media Economic Daily published a commentary article on Monday, pointing out that certain cross-border financial businesses could easily become tools for a few people to export capital across borders in violation of the law, and could face risks such as capital outflow. Economic Daily said that in recent years, cross-border Internet securities companies, cross-border wealth management companies, cross-border digital currency and other customers have grown rapidly in size. These cross-border financial businesses, although providing new attempts for some domestic investors to share the dividends of overseas stock markets, funds, insurance and other markets, are also highly susceptible to becoming tools for illegal cross-border capital export by a few people and may face a series of risks such as capital outflow, domestic investors’ funds going without return, and financial data leakage.

Comments: The CCP knows that once the money of the Laobaixing’s money goes out, it won’t come back.

2. Floods from January to October Caused a Total of 240.6 Billion Yuan in Direct Economic Losses

In the morning of November 8, the Ministry of Emergency Management Vice Minister Zhou Xuewen introduced, from January to October this year, flooding caused 58.907 million people affected, 590 people dead and missing, 3.515 million people emergency relocation, 203,000 houses collapsed, direct economic losses of 240.67 billion yuan. Compared with the average value of the same period in the past five years, the number of people affected fell 12.9%, the number of deaths and disappearances due to the disaster rose 9.7%, the number of emergency relocation fell 8.5%, the number of collapsed houses rose 25.3%, direct economic losses rose 12.3%.

Comments: The data from the CCP is always unreliable; The man-made disasters are always greater than natural disasters.

3. The First 4 MSCI China A50 ETFs Officially Listed Today

On November 8, the first batch of four MSCI China A50 Connected Indexes with a total issue amount of RMB 26.663 billion were officially listed. As of press time, the total turnover of the above four funds reached RMB 3.726 billion. Among them, Huaxia A50 ETF had the highest turnover rate and turnover, with a turnover of 1.188 billion yuan. China Universal A50 ETF had the second highest turnover, with 1.082 billion yuan; Efund A50 ETF and Southern China A50 ETF also had a turnover of 918 million yuan and 539 million yuan respectively.

4. Namewee Uses NFT to Sell “Fragile” to Against CCP

In order to fight against the control, Namewee announced on November 7 that he had created “Fragile” NFT (Non-Homogenized Token by Blockchain Technology) and put it up on the trading platform Opensea to sell his work by blockchain, which sold out within 3 hours. Namewee believes that the relationship between NFTs and creators is not subject to content censorship by platforms like YouTube, nor can governments control it. “Even the Chinese Communist government can’t control it.” Namewee’s 99 NFTs earned 209 ETH (about $960,000), and he said, “I promised that I would not convert it to cash, and that no matter how much I made, it would always be in circulation in the virtual world. Fight against the World Bank!”

Comments: Namewee, you are always welcome in Himalaya!

5. Egg Prices Rise in the Off Season

Recently, egg prices have risen significantly. Data monitored by the Ministry of Agriculture and Rural Affairs showed that on November 3, the average price of eggs in the national agricultural wholesale market was 10.69 yuan/kg, up 11.7% from 9.57 yuan/kg on October 17. Egg consumption will enter the off-season in October and prices will turn into a two-month downward cycle. Analyst Zhu Ning believes that the tight supply of eggs has led to the significant increase in recent egg prices. There are three main reasons for the recent tight supply of eggs: First, the weather has affected the effective supply of eggs due to a small drop in the egg production rate of hens. Second, due to fears of recurring CCP virus, some consumers reserve eggs, making local egg sales increase significantly.  Third, since October, vegetable prices have risen significantly, with some vegetables even more expensive than eggs, also making egg sales increase.

6. More Than 1,000 Bank Branches Shut Down During the Year

On November 7, Beijing Business News reporter found that, according to the administrative license information of the CBRC, excluding the institutions affected by the merger and the restructuring of Baoshang Bank, a total of 1,221 bank branches have closed this year. Bank branches are in an awkward situation, and the wave after wave of “closing tide” has once caused social concern. Everbright Bank researcher Zhou Maohua believes that the closure of bank branches is mainly from the cost, revenue considerations. This reflects that the profits of certain branches are difficult to cover the costs, especially now that the banking industry is facing fierce market competition and banks’ sensitivity to operating costs is rising; secondly, domestic information technology is developing rapidly, and financial business is going online rapidly.

Comments: The main reason is that there are too many bad debts, and the financial system is gradually collapsing.

7. Yiwu: Freight Forwarders are afraid to Take Orders, Manufacturers have to Suspend Production

The cost of 40-foot-high container shipping from Communist China to the U.S. West Coast has fallen from a maximum of nearly $ 20,000 to about $ 9,000, other routes also have different rates of decline. Yiwu market, known as the “world supermarket”, which is connected to 2 million small and medium-sized enterprises. This world’s largest distribution center for small commodities, operating 1.7 million individual products, commodities exported to more than 200 countries and regions around the world, has become an important window of Communist China’s foreign trade economy. Recently, the reporter went to Yiwu, Zhejiang Province, and found a lot of problems from manufacturing enterprises, freight forwarding companies and local governments. At present, the main channel of foreign trade is seriously blocked, many foreign trade goods stranded for shipment, the shipping market offer is too chaotic so that manufacturing enterprises, freight forwarding companies are afraid to take orders. Pending foreign trade led to the occupation of funds, as well as commodity price increases caused by the rise of raw materials, so that many small and medium-sized manufacturing enterprises have to stock up and wait and see, hold off on orders, suspend production.

8. Sunac Services to Acquire the Business of Sunac China’s Cultural and Tourism Commercial Sector for RMB 1.8 billion

(Reuters)On Nov.8, Sunac Services said on Monday it intends to acquire the entire interest in Sunac China’s cultural and tourism commercial segment held by majority shareholder Sunac China for a consideration of 1.8 billion yuan. This is the company’s second acquisition within a week. According to the announcement, the target of the acquisition is the operation and management company of the commercial segment of Sunac Cultural Tourism Group, which is mainly engaged in research and planning services, opening preparation services, investment promotion agency services and operation management services for commercial projects. The acquisition consideration will be paid to the seller in a lump sum within five business days after the settlement date. In order to meet the acquisition, Sunac Services will change the use of the proceeds from the IPO disclosed in December last year.

By【G Translators- Financial Team】
Author: Rosy Cloud

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

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