11/20/2021 Financial News In China: 20 A-share Independent Directors Resign Intensively; Real Estate Loans Increased By 8.2% Year-on-year

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1.More Than 20 A-share Independent Directors Resign Intensively

On November 19, a number of companies issued announcements stating that independent directors had resigned.  Jinhua shares announced that it had received written documents from independent director Zhang Xiaoyan requesting the company to disclose his resignation as soon as possible.  Kexin Development stated that it received a written resignation report from independent director Zhong Kaiwen. Zhong Kaiwen applied for resignation due to his personal work.  Yuxin Technology stated that independent director Feng Jing resigned due to personal reasons.  From November 12th to 19th, 18 listed companies intensively disclosed the resignation announcements of independent directors. The analysis said that this wave of resignations was due to the shock of the Kangmei case. The first-instance judgment in the Kangmei case required 13 directors, supervisors and senior executives who had not directly participated in the fraud but signed the periodic financial reports involved in the case to bear joint and several liability for compensation within a certain range.

2.Real Estate Loans Increased By 8.2% Year-on-year At The End Of October

On November 19, the spokesperson of the China Banking and Insurance Regulatory Commission answered reporters’ questions on recent hot issues.  The spokesperson said that in the first 10 months, various loans increased by 17.9 trillion yuan, an increase of 78.3 billion yuan year-on-year. Specifically, in the first 10 months, inclusive small and micro enterprise loans increased by 3.2 trillion yuan, a year-on-year increase of 24.6%, which was 9.7% higher than the average growth rate of various loans. Since the beginning of this year, the growth rate of real estate loans has continued to be lower than the average growth rate of various loans.  According to the data, as of the end of July, the growth rate of real estate loans hit an 8-year low, and the real estate loans of the banking industry increased by 8.7% year-on-year, which was 3 percentage points lower than the growth rate of various loans.

3.“China Chongqing Digital Economy Talent Market” Unveiled

The “China Chongqing Digital Economy Talent Market” (referred to as the Digital Economy Talent Market) was unveiled in Chongqing on the 20th.  The digital economy talent market plans to become China’s high-end digital economy talent cultivation base by 2025. According to reports, in order to make rational use of the existing mature platform resources, the “China Chongqing Digital Economy Talent Market” will be built on the platform of Chongqing University Students Employment and Entrepreneurship Public Service Center with a total area of ​​more than 10,000 square meters.  The platform now has functional areas such as employment recruitment area, entrepreneurial incubation area, book reading area, etc., which can realize various functional services such as online and offline recruitment, entrepreneurial incubation roadshow, and professional ability improvement.  It has the conditions needed to build a digital economy talent market and can be put into use quickly.

4.16 Fintech Projects Plan To Enter The Scope Of Supervision By The CSRC

On November 19, the Beijing Regulatory Bureau (CSRC) of the China Securities Regulatory Commission announced the first batch of 16 projects to be included in the capital market financial technology innovation pilot. In terms of technology applications, it involves new-generation information technologies such as big data, cloud computing, artificial intelligence, and blockchain, as well as composite cross-technology applications such as secure multi-party computing, federated learning and cloud native. Business scenarios include various business fields in the capital market, such as robo investment advisory, smart operations, smart transactions, smart risk control, and smart marketing. Specifically, the application unit of the “Pilot Innovation Pilot Program for Digital RMB Application Scenarios in the Securities Industry” is China Galaxy Securities Co., Ltd., and the joint application unit is Industrial and Commercial Bank of China.

5.Eight Listed Banks Issued 250 Billion Bonds Within The Month

As the end of the year is approaching, listed banks will start an intensive bond issuance model. Wind data shows that since November, eight listed banks have issued announcements on the completion of various bond issuances, with a total bond issuance scale of 239 billion yuan.  Among them, national banks are not only the main force in issuing bonds for listed banks in November, but also far ahead in terms of scale. Bank of China and China Construction Bank respectively issued 50 billion yuan and 45 billion yuan in single issuance volume. In addition, banks have not stopped issuing secondary capital bonds, financial bonds for small and micro enterprises, and green financial bonds.  According to the data from the Enterprise Early Warning App, the total number of bonds issued by commercial banks in the first ten months reached 1.27 trillion yuan.

6.Evergrande Auto Plans To Raise Approximately HK$2.7 Billion Through Allotment Of Shares

Evergrande New Energy Automobile Group Co., Ltd. issued an announcement on the Hong Kong Stock Exchange on Friday that it will raise approximately HK$2.7 billion through the placement of shares for the development and manufacturing of new energy vehicles.  The company said in the announcement that it will place 900 million shares at HK$3.00 per share through the old-for-new method. The total proceeds from the placement are expected to be approximately HK$2.7 billion.  The company intends to use the proceeds collected exclusively for the development and manufacturing of the group’s new energy vehicles, laying the foundation for the smooth commissioning of Hengchi’s new energy vehicles.  The announcement also stated that the placement shares accounted for approximately 9.05% of the total issued shares on the date of the announcement and approximately 8.30% of the total issued shares after the completion of the subscription.  The placement price is a 15% discount to the stock’s closing price of HK$3.53 on Friday.

7.China’s October Foreign Exchange Settlement And Sales Difference Turned Negative For The First Time In Six Months

Affected by the National Day holiday, the scale of foreign exchange settlement and sales in China in October hit a record low since the Spring Festival, but the export scale during the same period remained at a high of US$300 billion, which caused the willingness to settle foreign exchange to drop by over 6 percentage points to 61.1%, a six-month low; the willingness to sell foreign exchange during the same period  It also fell to a new eight-month low of 61.6%. The difference in willingness to settle foreign exchange sales and purchases became negative for five consecutive months before the end. The RMB against the US dollar broke the previous fluctuation range in October and rose by 0.96% that month. This was achieved when the U.S. index depreciated only 0.11%. The RMB exchange rate CFETS index broke the 100 mark, setting a new high for more than five and a half years, which shows that the RMB  The exchange rate is strong; however, the market’s willingness to settle foreign exchange has dropped significantly more than the willingness to sell foreign exchange, which also reflects that the market is still relatively rational and there is no panic in foreign exchange settlement.

8.The Controlling Shareholder Of Qixiang Tengda Was Investigated By The CSRC

Before the market on November 19, Qi Xiang Tengda announced that the controlling shareholder Qi Xiang Group was suspected of insider trading and other violations of laws and regulations, and the China Securities Regulatory Commission decided to initiate an investigation. Qi Xiang Tengda opened a lower limit on the 19th and closed nearly 200,000 lots on the lower limit.  As of the morning’s close, Qixiang Tengda had more than 670,000 covers on the limit.  In addition, Qixiang Tengda’s convertible bond Qixiang Zhuan 2 fell sharply after opening sharply lower in early trading. The decline reached 20% in 10 minutes and reached a temporary stop. After trading resumed, it fell by more than 21%, and then rebounded.  As of the morning’s close, the decline was still around 18%. Not long ago, Qi Xiang Tengda disclosed in the Shenzhen Stock Exchange Interactive, that as of November 10, 2021, the number of shareholders of the company was 79,000, an increase of 13,300 from September 30.

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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