11/15/2021 Financial News In China: The Scissor Gap Between CPI And PPI Hits Record High; Beijing Stock Exchange Launches

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1. The Scissor Gap Between CPI and PPI Hits Record High

On November 15, at a press conference on the operation of the national economy in October held by the State Council Information Office, a media question was asked: The scissor gap between the PPI and CPI reached 12 percentage points in October, a record high. What is the reason behind this historical high? The spokesman for the National Bureau of Statistics said that in October, CPI rose 1.5% year-on-year, an increase of 0.8 percentage points over the previous month. PPI rose 13.5% year-on-year, an increase of 2.8 percentage points over the previous month. From the expansion of the situation, mainly due to the expansion of PPI, bringing the CPI and PPI gap in expanding. From the overall situation of PPI, PPI rose mainly due to the price of production materials, especially upstream industry prices. October, PPI prices of production materials rose 17.9% year-on-year, affecting the PPI rose 13.36 percentage points, accounting for the entire PPI rose to 99%.

2. Beijing Stock Exchange Launches

(Reuters) On Nov.15, Beijing Stock Exchange (BSE), Communist China’s newly established stock exchange, opened on Monday, most of 81 stocks rose, including 10 new stocks soared and all triggered a temporary suspension. Among them, N Tongxin rose more than 2.8 times at the opening, soaring nearly 400% at the beginning of the day; 10 new shares all triggered a temporary suspension shortly after the opening. BSE regulations show that the first day of IPO is not subject to the limit of up or down, only the temporary suspension mechanism, that is, when the transaction price increases or decreases 30% and 60% for the first time than the opening price during the day, it will trigger a temporary suspension of 10 minutes.

3. Home Price Index in 70 Cities Falls for First Time in 6.5 Years in October

(Reuters)On Nov 15, the price index for newly built residential units in 70 large and medium-sized cities rose 3.4 percent in October year-on-year, lower than the previous month’s 3.8 percent and the lowest rate of increase since January 2016.The index fell 0.2 percent from the previous month, the first time in more than six and a half years, with the last decline occurring in March 2015, when it fell 0.1%, Reuters calculated based on data released by Communist China’s National Bureau of Statistics on Monday. Among the 70 major cities, there are 13 cities where the new residential price index rose in October (compared to 27 in the previous month); five were flat (compared to seven in the previous month); and 52 were down (compared to 36 in the previous month).

4. Sunac China Plunges 10%, Bringing Down Real Estate Stocks

In early trading on Nov. 15, Sunac China plunged. Most A-share real estate stocks also fell, with nearly 20 stocks such as Gemdale, Financial Street, China Merchants Shekou and Vanke A falling more than 2%. According to Sunac China’s announcement on Nov. 14, the company raised HK$5.085 billion by placing shares at HK$15.18 per share, a discount of about 10.9% from last Friday’s closing price; it also reduced its holding of 158 million shares of its subsidiary Sunac Services, raising a total of about HK$7.4 billion. The announcement also noted that the company’s controlling shareholder, Sun Hongbin, chairman of the board of directors, also provided US$450 million in funding to Sunac China in the form of interest-free loans.

5. TAL Announces to Cease Offering Academic Tutoring from K-9

On November 13, TAL Education Group (TAL) announced that academic subjects based after-school tutoring services to students from kindergarten through grade nine in Communist China will end on December 31, 2021.TAL, formerly known as Xueersi, which was founded in 2003 and listed on the NYSE in 2010.The latest closing price of TAL is $4.4 per share, a cumulative decline of 93.85 percent during the year. This is the inevitable result of the “double reduction” policy, and the next problem will be the employment of these unemployed teachers. According to industry insiders.

6. CNOOC’s A-share IPO Application Materials Accepted

(Reuters) On Nov.14, China National Offshore Oil Co Ltd (CNOOC), Communist China’s largest offshore oil and gas producer, said in an announcement on the Hong Kong Stock Exchange on Sunday evening that it had submitted application materials to the Communist China’s Securities Regulatory Commission (CSRC), including a prospectus for its initial public offering of A shares, and had recently received an acceptance slip from the CSRC for its A-share offering application. CNOOC’s board of directors approved on September 26 the proposed listing of the company’s RMB shares on the main board of the Shanghai Exchange to fill the gap in financing channels following the delisting of the American Depositary Shares earlier this year. The company intends to issue up to 2.6 billion A shares, the proceeds of which will be invested in a total of 35 billion yuan of development projects (including the Guyana oilfield and secondary development of the Liuhua oilfield) and additional working capital.

7. Fuling Zhacai Announces Price Increase, Up Nearly 20%!

On the evening of November 14, Fuling Zhacai Group, a company listed on Communist China’s Shenzhen Stock Exchange, disclosed an official price increase announcement, adjusting the ex-factory prices of some products, ranging from 3%-19% for each category, with the price implementation starting at 17:00 on November 12. Although the unit price is not expensive, but the highest close to 20% of the increase also let some investors flirt: “did not have time to stock up”. The company said the main reason for the product price increase is based on the continued rise in the cost of major raw materials, packaging materials, auxiliary materials, energy and other costs, and the company’s optimization and upgrading of products resulting in cost increases.

8. Founder Securities’ Chairman of Supervisory Board, Directors and Executives Resign Collectively

On the evening of Nov. 12, Founder Securities announced that its board of directors received written resignation reports from Gao Li, director, deputy director of the executive committee and president of the company, Liao Hang and Shi Guangyao, vice president of the company, respectively. At the same time, the supervisory board of Founder Securities also received a written resignation report from Yong Ping, chairman of the supervisory board, who applied for resignation as chairman and supervisor of the supervisory board for retirement. According to the relevant sources, Gao Li, Shi Guangyao and Yong Ping all applied for resignation from the relevant positions of the company because they reached retirement age; Liao Hang resigned from the position of director of the company for work reasons and will have another arrangement subsequently.

【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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