11/23/2021 Financial News In China: Internet Giants Were Fined Again For Illegal Mergers And Acquisitions; Reduce Import Tariffs And Institutional Costs

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1. Internet giants were fined again for illegal mergers and acquisitions

On November 20, on the third day after the listing of the State Anti-Monopoly Administration, the State Administration for Market Regulation (hereinafter referred to as the “General Administration of Market Supervision”) announced the punishment decision on 43 cases of illegal implementation of concentration of operators. The cases reported this time are mainly concentrated in the Internet field, involving 10 platform giants such as Tencent, Meitan, Baidu, JD.com, and 58 Group, all of which were fined.

The so-called “operator concentration review” is the prior control of the anti-monopoly law enforcement agencies over the concentration of business operators such as mergers and acquisitions. According to Article 21 of the Anti-Monopoly Law, if the concentration of business operators meets the declaration standards set by the State Council, the operators shall declare in advance, and those who have not declared shall not implement concentration.

2. Central Bank: Appropriately increase risk tolerance and increase mid- and long-term loans for manufacturing

On November 23, at the State Council’s regular briefing on the State Council’s policy to increase the relief and assistance of small and medium-sized enterprises, some media asked: What is the overall situation of financial support for small, medium and micro enterprises this year? In the future, how to ensure that resources continue to flow to these key areas of the real economy, such as manufacturing, small and micro enterprises, and green development?

In this regard, Zou Lan, director of the Financial Markets Department of the People’s Bank of China, said that serving the real economy is the duty and purpose of finance. In the next stage, the financial sector will continue to deepen the structural reform of the financial supply side, promote financial institutions to improve their internal resource allocation, strengthen external incentives and constraints, and put the service to the real economy in a more prominent position, guide financial institutions to invest more resources in key areas of the real economy such as manufacturing, small and micro enterprises, and green development.

3. At least 11 executives of the four major banks were investigated during the year

Brokerage Chinese Reporter according to the Central Commission for Discipline Inspection website information Statistics found that the years “Everbright system” has been 4 cadres were double 3 cadres under investigation. Since the beginning of this year, anti-corruption in the financial sector has continued to be heavy. In addition to Everbright Bank, at least 11 senior management of the four major State-owned banks have been announced for investigation and punishment, and at least 10 senior management of national policy banks have been investigated and punished. In addition, China CITIC Bank, Guangfa Bank, there are also corrupt elements in financial institutions such as Longjiang Bank that have been seriously investigated.

4. Ministry of Commerce: Optimize the structure of import and export commodities, reduce import tariffs and institutional costs

Ministry of Commerce: Optimizing the structure of import and export commodities to reduce import tariffs and institutional costs] The plan proposes to optimize the structure of import and export commodities. Reduce import tariffs and institutional costs. Promote imports from developing countries, especially the least developed countries. Encourage the import of high-quality consumer goods, expand the import of advanced technology, important equipment, key parts and components, and increase the import of energy and resource products and domestic agricultural products in short supply. Promote the import and export of green and low-carbon products such as environmental protection and new energy, and actively participate in international cooperation. Promote high-tech, high-value-added equipment enterprises to participate in international cooperation at a higher level.

5. Behind Shenzhen’s “Intermediary Reform”: How can 642 stores be closed for 9 months and survive without the price difference?

In the past 4 months, this one is not second-hand housing turnover sporadic information tenant single. An agent told China News Weekly that he had more than a dozen colleagues a year ago. Half of them resigned this year. Some people went back to their hometown, and some of them sold new houses and office buildings, or simply switch to other sales. No volume, close to 40,000 per month of rent and utilities has become a burden, in order to save money, this small local mediation decided to store and other stores combined.

This is not the only housing agency that is shut down around. Only in about 300 meters long road, there are seven or eight intermediary stores, hundreds of real estate agents in the peak period, now only three or four large chain intermediaries. Baihua Third Road is located in the Baihua area of Shenzhen. It is known as the “strongest School District” in Shenzhen. It is most sensitive to changes in real estate policies and is one of the windows to observe the Shenzhen property market. The first 9 months of this year, Shenzhen compared with 642 intermediary stores shut down. As of October, Shenzhen second-hand housing transaction volume fell for 6 consecutive months, and 1635 sets of transactions in 9 months, a record low in nearly 12 years. Similar plots were staged in Guangzhou, Dongguan, Hangzhou, Ningbo, Chengdu, Xiamen, Jinan and other cities.

6. Encourage SMEs to merge and reorganize to connect with the capital market Beijing Stock Exchange is highlighted

Recently, the Office of the Leading Group for Promoting the Development of Small and Medium-sized Enterprises of the State Council issued the “Measures to Enhance the Competitiveness of Small and Medium-sized Enterprises” (hereinafter referred to as “Several Measures”), aiming to pass 11 aspects and 34 specific measures, strengthen precise and effective policy support, create a good development environment, promote the innovation and professional development of small and medium-sized enterprises, and enhance the competitiveness of small and medium-sized enterprises.

7. Will Gree’s largest shareholder’s 100 percent pledge of stocks liquidate its position?

One is the supplementary pledge announcement of Gree Electric Appliances: Gree’s largest shareholder Zhuhai Mingjun has held the company’s shares 100% pledge to the bank, so far, the largest shareholder and persons acting in concert Dong Mingzhu pledged shares a total of nearly 0.92 billion unit accounted for its holdings of shares of the company number ratio reached 97.11%. One is standing on the air of en jie shares: preparation of increasing recruitment funding does not exceed 12.8 billion yuan.

Jan 22nd later, Gree Electric Appliances, said in a statement, the received shareholders Zhuhai ming jun notification was informed that Zhuhai ming jun will be held by the company of 90.24 million shares in the supplementary pledge to the Agricultural Bank of China Co., Ltd Zhuhai Branch, the proportion of shares held by 10%, accounting for 1.53% of the total share capital of the company. So far, Zhuhai Mingjun held pledge shares accounted for 100% of its shareholding. The Dong Mingzhu’s pledge shares having 17.16 million shares, accounting for the extent of their share holdings ratio of 38.58%. Zhuhai Mingjun and its concerted action person Dong Mingzhu pledge shares a total of 919,522,382 shares, accounting for the number of shares held by the company reached 97.11%.

8. Xiaomi’s Growth Withers After Chip Shortages, Rivals Hurt Sales

Xiaomi Corp.’s quarterly sales growth slowed markedly after the Chinese smartphone giant weathered a resurgent Apple Inc. and supply chain mayhem choked off the flow of vital components. The Beijing-based company expects shortages of the chips that go into its devices and smart appliances to persist well into 2022 before easing around the second half of the year. Despite the supply crunch, which has walloped adjacent industries from cars to PCs, Xiaomi expects to ship roughly 190 million smartphones in 2021 — a rise of about 29% from last year.

Revenue climbed just 8% to 78 billion yuan ($12.2 billion) in the September quarter, in line with analysts’ projections but well off the 64% pace of the previous three months. Net income plummeted 84% to 788.6 million yuan after the company took a 3.5 billion yuan hit from losses in investments, echoing major writedowns that its tech peers have reported in a quarter hurt by China’s decelerating economy and market ructions. “We faced fairly big pressure in third quarter” from chip shortages, President Wang Xiang told reporters after the results.

【G Translators – Financial Team】
Author: Tracy

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

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