11/8/21-11/14/21 Weekly Reports: HCoin Is Soaring; Shen Nanpeng Sells Shares Of Meituan Pindo

Image source: Bloomberg

1.HCoin Shocked the World by Soaring 270 Times in Two Weeks of Listing

Earlier this month, Himalayan Coin HCoin (HCN) was officially listed. As of Friday night in the US East, the price of HCN went up to $27. Most comrades have a preferred purchase price of 1HCN=0.1USD; that is, the cost of comrades’ HCoin assets has risen nearly 270 times in less than two weeks (if you didn’t sell it :P). Such high returns are also increasingly attracting the side-eye of global investors, and even CCP’s old friend Bloomberg had to come out and comment on two things. First, clicking on the link on Bloomberg’s home page, I was greeted by Miles Guo’s impassioned “HCoin to the Moon.” Even though the whole article is full of jealousy sourness, it has to admit that the total market value of the coin has exceeded $27 billion. What’s more surprising is that the Bloomberg editor also knows that the pre-purchase price of the comrades is $0.1 instead of the opening price of $1. It seems that the Bloomberg editor usually doesn’t miss Miles Guo’s breaking news; I don’t know if I will also join the HLC through KYC after the delivery of the article?

2.Shen Nanpeng Dumped Shares of Companies Such as Poundland and Meituan

Sequoia Capital China’s founding and managing partner, Shen Nanpeng, has accelerated the sale of the stakes acquired by his three most significant investments. Shen Nanpeng has sold up to $215 million in the rapidly growing group-buying mobile application Jindo, the takeaway giant Meituan and the delivery platform Dada Group. The investments in Jumbo and Meituan have helped Shen rank as Asia’s most successful venture capitalist in Forbes magazine’s “World’s Best Venture Capitalists” list for several years running. Shen, 53, has an estimated net worth of $4.4 billion. Shen’s largest stake sale was in Meituan, fined $530 million last month for antitrust violations. Shen Nanpeng is a director of Poundland and may continue to hold shares in the company. He did not respond to a request for comment on the sale of his claims.

Comment: Brother 7 broke the news on Friday that the Chinese Communist Party has arrested Shen and his family on “tax evasion” charges. I don’t know if Shen will have a chance to come out in the future, but he did not respond to requests for comment on the sale of his shares. It’s time for private entrepreneurs in China to make a choice!

3.2.459 Billion Yuan in Compensation from Kangmei Pharmaceutical

The Supreme People’s Court appointed jurisdiction. The Guangzhou Intermediate People’s Court (“Guangzhou Intermediate Court”) applied the special representative proceedings to conduct a public hearing of China’s first securities class action case. CSI Small and Medium Investors Service Center, Ltd. participated in the class action as the special representative of more than 55,000 investors. According to the verdict of the Guangzhou Intermediate Court, the liability of each defendant was determined as follows: Kangmei Pharmaceutical, as a listed company, was liable for RMB 2.459 billion; the company’s actual controller, Mr. and Mrs. Ma Xingtian, and four former executives, including Qiu Xiwei, organized and planned the implementation of the financial fraud, which was an intentional act, and they were jointly and severally liable for 100% of the compensation; 13 other executives were responsible for 20%, 10%, and 5% of the payment according to their degree of fault. In addition, the other 13 executives are jointly and severally liable for 20%, 10%, and 5%, respectively, according to their degree of responsibility. The auditor, Zhengzhong Zhujiang Accounting Firm, failed to implement basic auditing procedures and is jointly and severally liable for 100% of the damages, while Zhengzhong Zhujiang’s partner and signing accountant, Yang Wenwei, are jointly and severally liable to the extent of Zhengzhong Zhujiang’s liability.

Specifically, the large number of civil damages made the “first evil” bear its due responsibility. In this lawsuit against the special representative of Kangmei Pharmaceuticals, the court ruled that Mr. and Mrs. Ma Xingtian and the four former executives, including Qiu Xiwei, organized and planned the financial fraud, which was a deliberate act. Therefore, they were jointly and severally liable for 100% of the damages (2.459 billion yuan), conducive to strengthening the punishment and deterrence for those who violate the law in the capital market. Secondly, the listed company has been actively recovering the money occupied by the former major shareholder and the actual controller. On October 30, Kangmei Pharmaceuticals announced that the Jieyang Intermediate Court had enforced the enforcement of the assets of the company’s controlling shareholder’s related parties, and the proceeds totaling 1.641 billion yuan have been paid to the company’s administrator account to offset the funds occupied by the associated parties. The recovery of funds occupied by the former major shareholder and the actual controller is conducive to better protection of the legitimate rights and interests of the majority of small and medium-sized investors. In addition, it allows the listed company to go back to work lightly.

4.BSE Will Open on November 15

The opening time of the Beijing Stock Exchange was officially announced. Yesterday evening, the BSE released a news release saying that all the work for the market opening is ready and is scheduled to open on November 15, 2021. According to the BSE, as of November 12, more than 2.1 million investors have made appointments to open qualified investor privileges on the BSE, and a total of more than 4 million investors will be able to participate in BSE trading after the market opens. At the same time, a total of 112 securities companies have been qualified to become official members of the NSE. At present, all preparations for the system and rules of the NSE have been completed, the technical procedures involved in the opening of the market have been renovated and upgraded, and the appropriate methods of securities companies, information providers, and fund companies have also been completed the supporting renovation. In addition, the internal institutional configuration and staffing of the NSE are in place. Yesterday, the BSE issued six pieces of business rules, including the Implementation Rules for Securities Trading by Qualified Foreign Institutional Investors and RMB, Qualified Foreign Institutional Investors of the Beijing Stock Exchange, which will come into effect from November 15, 2021. Together with the 45 business rules issued earlier, the above rules cover various aspects of the BSE’s issuance and listing, financing and mergers and acquisitions, company regulation, securities trading, member management, and investor suitability, forming the BSE’s self-regulatory rule system.

5.Huarong Sells Its Securities Business

China Huarong said on Nov. 12 that in recent years, under the guidance of the regulatory authorities to “return to the origin and focus on the main business,” financial asset management companies have been actively studying the return to the central business and pushing forward the slimming down of institutions in an orderly manner. The transfer of equity interests in Huarong Securities is also a regular equity transfer to implement the regulatory requirements, further focus on the primary responsibility and leading business, and steadily promote the slimming down of the organization. Over some time, the four significant AMCs, namely, China Huarong, China Eastern, China Cinda, and China Great Wall, have been expanding their financial territories and have become comprehensive economic groups involved in banking, insurance, brokerage, trust, futures, public funds, and financial leasing. China Huarong has Huarong Financial Leasing, Huarong Securities, Huarong Futures, Huarong Xiangjiang Bank, Huarong Consumer Finance, Huarong Trust, etc.; China Great Wall has Great Wall Financial Leasing, Great Wall Guorui Securities, Great Wall Huaxi Bank, Great Wall Xinsheng Trust, Great Life Insurance, etc.; China Cinda has Nanyang Commercial Bank, Cinda Securities, Golden Valley International Trust, Cinda Financial Leasing, etc.; China Eastern has China China United Insurance, Dalian Bank, Dongxing Securities, Daye Trust, and Orient Jincheng.

6.New Oriental Closes 1,500 Branches

In a live broadcast on Nov. 7, New Oriental founder Yu Minhong revealed that New Oriental’s most prominent business is going to stop, and New Oriental’s close to 1,500 branch campuses are going to surrender their leases. Previously, at a meeting of New Oriental executives, Yu Minhong had announced that offline enrollment in primary and middle school subject business would be stopped after the fall course. Each city would gradually close its teaching sites next. In addition, Yu Minhong said in the live broadcast that New Oriental plans to set up a sizeable agricultural platform in the future and that he and hundreds of teachers will help sell agricultural products and support the cause of rural revitalization through live broadcast with goods.

Ltd. was established with a registered capital of 10 million yuan, with Sun Dongshu as its legal representative. The company’s business scope includes the sale of fresh meat, eggs, aquatic products, fresh fruits, fresh vegetables, edible agricultural products, feed, chemical fertilizers, low toxicity, and low residual pesticides. Yu Minhong said in the live broadcast, these teaching points only renovation spent six or seven billion yuan. There were also considerable expenses to consider at that time, such as breach of contract, refund of students’ tuition fees, and teachers’ severance pay. However, Yu said New Oriental’s capital chain is not in trouble. “New Oriental has a rule that if New Oriental doesn’t do it or goes out of business, the money on New Oriental’s books must be enough to refund student tuition and pay all employees’ severance pay at the same time, and this rule kind of saved New Oriental.” Yu Minhong said.

7.The Chinese Communist Party’s Official Media Cracked down on the Concept of “Meta-Universe” Stocks

According to a commentary published by the Economic Daily, the official media of the Communist Party of China, the “meta-universe” should be a systematic project of long-term investment and construction, and its fundamentals have yet to be verified by time, so short-term speculation is not desirable. The article pointed out that, at present, the A-share market “meta-universe” concept shares are being sought after by the capital; November just past a decade, there are related concept stocks rose by more than 60% or even 80%. Objectively speaking, the concept of “meta-universe” does draw a “big pie” of industry development, which may bring long-term investment opportunities. However, look at the domestic “meta-universe” concept stocks. You will find that most of the companies are game software companies, which are far from the “meta-universe” concept of foreign Internet companies. The first thing to look at is whether the application terminal is widespread and whether the connection between virtual and reality can be established to judge the industry’s growth. Secondly, there must be actual content construction and landing scenarios.

Comment: I also think the “no it” meta-universe concept is very general or investing in the G series is more accurate!

8.Wheat Prices Rose High

Grain enterprises need to purchase, coupled with the supply of grain sources on a limited amount, to promote the high domestic wheat prices. In addition, the state reserve wheat put “blip,” to a certain extent, increases grain enterprises’ pressure to purchase grain sources. Therefore, it is expected that the domestic wheat prices will remain high in the latter part of the run. As of November 3, the national winter wheat has been sown 83%; progress is slightly slower than normal 3.4 percentage points. The number of domestic wheat supply in the main production areas of the circulation market continues to decline, coupled with the temporary national storage of wheat put “blip,” resulting in the use of grain enterprises to increase the difficulty of large-scale procurement of grain sources, to ensure that the processing of the immediate needs as well as to supplement inventory, grain enterprises continue to raise the purchase price of wheat to boost the number of arrivals. Because of the bullish market sentiment, further fermentation, the circulation market stage supply, and demand tightness to promote wheat prices rose significantly. In some areas in the northern wheat area, wheat prices rose more significantly.

Commissioned by Jiangsu Province Jiangyan grain reserves directly under the warehouse, November 3, the southern wheat trading market directed sales of 5224 tons of 2021 Jiangsu production feed wheat, the base price of 2,440 yuan/ton (price type: carboard price), the highest transaction price of 2,625 yuan/ton, the lowest transaction price of 2,610 yuan/ton, the average transaction price of 2,620 yuan/ton. November 5, the grain reserves in Shandong Branch plans to sell 6998 tons of wheat produced in 2018 and 2019, all sold, the reserve price of 2720 yuan/ton, the transaction price of 2810 ~ 2860 yuan/ton, the average price of 2834 yuan/ton; the same day, Guangdong South China Grain Exchange Co., Ltd. to purchase 24,000 tons of 2021 production of third-class white wheat, the actual transaction of 12,000 tons, the reserve price of 2980 yuan/ton (price type: bulk, warehouse truck plate Delivery), the transaction price of 2980 yuan/ton.

Affected by unfavorable weather, farmers in northern China to sell the new season corn, combined with the epidemic and high logistics costs and other factors, domestic corn futures prices in late September hit a low of 2,429 yuan/ton after the stabilization, and then launched a sustained rebound, corn spot market prices began to follow the rise after the National Day. In addition, the latest monitoring data from the Ministry of Agriculture and Rural Affairs showed that the number of pigs slaughtered by domestic fixed-point slaughtering enterprises above the scale increased by 60.9% year-on-year from January to September this year, including a year-on-year increase of 95.2% in September. Influenced by factors such as the launch of pork storage by the relevant departments and the entry into the peak consumption season, domestic hog futures prices have rebounded strongly since the end of September. Still, the pattern of loose supply has not yet changed, and it will take time to clear hog production capacity, and cost support is limited, so there is no basis for hog prices to continue to move sharply higher in the future.

According to market monitoring, as of early November, the flat price of 15% moisture corn produced in 2020 at Jinzhou Port in Liaoning Province was RMB 2630~2640/ton. The mainstream price of 15% moisture corn at Shekou Port in Guangdong Province was RMB 2830~2860/ton. As of November 5, the Dalian Commodity Exchange corn 2201 contract futures price closed at RMB 2,674 / ton, up RMB 245 / ton, or 10.09%, from the low point on September 22, during the highest price of RMB 2,700 / ton.

9.The Onshore RMB to USD Exchange Rate Opened to Recover the 6.40 Mark

The mid-price of the yuan against the U.S. dollar on the 12th was 6.4065, up 80 basis points from the previous trading day. The People’s Bank of China authorized the China Foreign Exchange Trade Center to announce that the mid-rate of the RMB exchange rate in the interbank foreign exchange market on Nov. 12, 2021, was: 1 USD to RMB 6.4065, 1 EUR to RMB 7.3338, 100 JPY to RMB 5.6166, 1 HKD to RMB 0.82229, 1 GBP to RMB 8.5633, 1 Australian dollar to RMB 4.6703, 1 New Zealand dollar to RMB 4.4955, 1 Singapore dollar to RMB 4.7303, 1 Swiss franc to RMB 6.9530, 1 Canadian dollar to RMB 5.0894, RMB 1 to 0.65072 Malaysian ringgit, RMB 1 to 11.1901 Russian ruble, RMB 1 to 2.3908 South African Rand, RMB1 to 184.52 Korean Won, RMB1 to 0.57331 UAE Dirham, RMB1 to 0.58542 Saudi Riyal, RMB1 to 49.7592 Hungarian Forint, RMB1 to 0.63190 Polish Zloty, RMB1 to 1.0141 Danish Krone, RMB1 to 1.3600 Swedish kronor, CNY1 to 1.3554 Norwegian kronor, CNY1 to 1.54883 Turkish lire, CNY1 to 3.2211 Mexican pesos and CNY1 to 5.1272 Thai baht. On the previous trading day, the mid-rate of the RMB to USD exchange rate was 6.4145.

10.The Ministry of Finance Issued 4 Billion Euro Bonds

The Ministry of Finance issued a news release on November 11, saying that on November 10, the Ministry of Finance successfully issued 4 billion euro sovereign bonds in the Hong Kong Special Administrative Region. Among them, 3-year 1.5 billion euros, the issue yield -0.192%; 7-year 1.5 billion euros, the issue yield 0.216%; 12-year 1 billion euros, the issue yield 0.759%. This is the third consecutive year of issuance since the relaunch of Euro sovereign bond issuance in 2019, with all maturities achieving a new issue premium of approximately -10 basis points, including a 3-year coupon of 0% and an issue yield equal to the Euro bond pricing benchmark (swap median) for the first time. In addition, 12-year bonds were chosen to be hosted and cleared at the Central Clearing and Settlement System for Debt Instruments (CMU) in Hong Kong, helping to strengthen Hong Kong’s financial infrastructure.

【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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