11/24/2021 Financial News in China: Heavy Metal Pollution Should Be Further Prevented and Controlled; Commercial Banks Supplement Capital by Accelerating Bond Insurance

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1.Heavy Metal Pollution Should Be Further Prevented and Controlled

On November 24, the Ministry of Ecology and the Environment (MOE) publicly solicited comments on “Opinions on Further Strengthening the Prevention and Control of Heavy Metal Pollution (Draft for Comments)” (hereinafter referred to as “Opinions”). Heavy metal pollution will be further prevented and controlled. The “Opinions” proposed that by 2025, the key industries to further optimize the industrial structure, the national key industry emissions of key heavy metal pollutants than in 2020 by more than 5%, the key industries to further improve the level of environmental management, and promote the treatment of a number of outstanding historical heavy metal pollution problems. Key industries to strengthen the transformation of enterprise clean production. According to the “Opinions” planning, by the end of 2025, zinc smelting enterprises to complete the replacement of vertical tanks for zinc refining equipment transformation; copper smelting enterprises to actively promote the upgrading of converter-blowing process transformation, and the proportion of converter-blowing capacity should be reduced to less than 40%.

2.Commercial Banks Supplement Capital by Accelerating Bond Insurance

In the traditional low issuance season near the end of the year, commercial banks have started a wave of bond issuance. Data show that as of November 23, the planned issuance size of commercial bank bonds for the month has reached 428.693 billion yuan, and the issuance volume in a single month is expected to exceed 400 billion yuan for the first time, a new historical record. At present, commercial banks’ supplementary bonds are characterized by a large number of issuing entities, large number and large scale. Whether it is capital supplemental bonds or general financial bonds, the planned issuance of commercial banks in November is a significant increase. According to Wind data, as of the 23rd, the number of commercial banks’ capital supplement bonds (including secondary capital bonds and perpetual bonds) planned to be issued in November has reached 23, 16 more than the number issued in the whole month of October; the total face value reached 311.193 billion yuan, 291% more than in October, a new high since October 2020.The large number of hosts, quantity and scale highlight the current strong demand for commercial banks to replenish their capital through the bond market.

3.State Grid Releases Inter-Provincial Power Spot Trading Rules

According to the State Grid news on November 24, the State Grid Co., Ltd. officially issued the “Inter-Provincial Power Spot Trading Rules”. The issuance of the rules marks another solid step in the construction of a “unified market, two-level operation” power market system in China, and is an important milestone in the construction of China’s power spot market. At present, the trial operation of inter-provincial power spot trading is being prepared in an orderly manner. After the launch of inter-provincial power spot trading, it will be conducive to stimulating the vitality of market players, realizing network-wide power surplus and shortage mutual aid through market-based means, promoting the large-scale consumption of clean energy, promoting the construction of a new power system with new energy as the mainstay, and helping to achieve carbon peak and carbon neutrality.

4.Many Rooftop Photovoltaic Power Generation Projects Suspended

November 22, Henan Provincial Development and Reform Commission issued a notice, requiring the smooth and orderly promotion of rooftop photovoltaic power generation construction. The notice said that the leading enterprises and upstream and downstream enterprises of the industry chain should be guided to strengthen cooperation in accordance with market-oriented principles to avoid disruptive market order behavior such as circling without building, false propaganda and unqualified construction. The surging news noted that as a pilot area of Henan Dengzhou City has previously issued a notice to prohibit enterprises from disrupting the local roof pilot development work. Dengzhou City Development and Reform Commission issued in early November “on the suspension of some of the city’s rooftop photovoltaic project work notice”, according to check and Changde City, Hunan Province and Shaoguan City, Guangdong Province.

5.The Average On-the-Job Time Is 15 Months for the Post-95s

“Don’t be a tool to complete the task”, this perception is especially strong in the post-95s. In the Douban group “work”, there are many posts announcing their departure. The research of BOSS Direct Employment found that from the post-70s to the post-00s, the average in-service time of the first job has slipped from 84 months to 11 months. Among them, after 95 is 15 months. Among the many factors for leaving a job, salary and development prospects always have an unshakeable position. MileagePlus’ “Survey on Job-hopping Willingness in the Fourth Quarter of 2021” shows that “dissatisfaction with current salary and benefits” and “bottlenecks in personal career development” are tied for wanting to The first reason for job-hopping, “can’t identify with the management style and culture of the company” ranked third with a slight difference in votes.

Comment: The career outlook of young people and their courage to jump from one company to another confirm the view that “the times are moving forward”, which shows that the Chinese Communist Party’s ambition to reverse history will not succeed.

6.IT Jobs Top the Salary Ranking

From the data disclosed in the China Statistical Yearbook-2021, the average wage of non-private units is much higher than that of private units. For example, in 2020, the average annual wage of non-private sector employees was nearly 40,000 yuan higher than the private sector; in 2019, the average wage of non-private sector was nearly 37,000 yuan higher. Among the statistical industry categories, the average wage of information transmission, software and information technology service industry has been “soaring”. In 2016, the information transmission, software and information technology services industry overtook the finance industry as the most profitable industry, with an average wage of 122,500 yuan, and for many years dominated the “top” position. 2020, the industry’s annual average wage reached 177,500 yuan. In urban private sector, in 2010, the information transmission, software and information technology services industry topped the list with an average salary of 31,200,000, and has dominated the list for many years since then.

7.Guangzhou Agricultural Commercial Bank Stepped On Nearly 300 Million Loan Defaults

Phoenix Finance “Bank Finance Eye”, Guangzhou Agricultural and Commercial Bank was recently exposed to lending “tread on” Zixin Pharmaceuticals, which signed two trust contracts in succession default, cross-provincial lending nearly 300 million principal or can not be recovered, the borrower overdue debts up to 2.623 billion, there are also unpaid wages, taxes, interest arrears. Guangzhou Agricultural and Commercial Bank share price performance is sluggish, frequent embarrassing situation of zero transactions throughout the day. According to Wind data, in the past year, Guangzhou Agricultural and Commercial Bank has a total of 247 trading days, of which 124 days of zero transactions, zero transactions accounted for 50.2% of the days, equivalent to the past year, Guangzhou Agricultural and Commercial Bank has more than half of the time no one asked for. Some stockholders complaints about the extremely low trading volume and call for delisting. In addition, lawyers believe that the Guangzhou Agricultural and Commercial Bank has a major Mistake, resulting in a 2.5 billion loan guarantee in the “Rashomon”.

8.Hong Kong Tycoon Allan Liu Will Liquidate Evergrande Stock at a Loss Of 11 Billion

On 23 November, China Land (00127.HK) announced that the relevant shareholders had given written approval for the granting of a disposal mandate to the directors to authorize the disposal of all or part of the (China Evergrande) authorized shares held by the Group as at 23 September 2021 (before trading hours) of approximately 751 million authorized shares, representing approximately 5.67%.And according to the announcement of China Land, its cost of acquiring 860 million shares of China Evergrande from 2017 to 2018 was approximately HK$13.596 billion, while today it is expected to liquidate its position and only cash out HK$2.26 billion, a loss of over HK$11 billion.

【G Translators- Financial Team】
Author: 和理非

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

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