1.Didi is Asked to Delist from U.S.
Communist China regulators have asked Didi Global Inc.’s top executives to devise a plan to delist from U.S., people familiar with the matter said. The Cyberspace Administration authority wants Didi management to take the company off the New York Stock Exchange because of concerns about leakage of sensitive data. The Cyberspace Administration of Communist China has directed Didi to work out precise details, subject to government approval. Proposals under consideration include a straight-up privatization or a share float in Hong Kong followed by a delisting from the U.S.. If the privatization proceeds, the proposal will likely be at least the $14 IPO price since a lower offer so soon after the June initial public offering could prompt lawsuits or shareholder resistance. If there is a secondary listing in Hong Kong, the IPO price would probably be a discount to the share price in the U.S., $8.11 as of Wednesday’s close.
2.Regulators Issues Draft Rules to Govern Online Advertising
Communist China State Administration for Market Regulation proposed new rules on November 26, aimed at increasing oversight over the internet advertising sector, including stipulating that advertisements should not affect users’ normal internet use nor mislead them into clicking. The proposed rules are open to public comment until Dec. 25. There are 31 articles in the revised “Measures” and the main amendments are listed on China’s State Administration for Market Regulation website, including the name of the regulation revised; the scope of application adjusted; relevant definitions clarified; the relevant regulations on programmatic purchase deleted, and the responsibilities of related entities strengthened.
3.Ministry of Commerce to Revise the Negative List for Foreign Investment Access
In response to questions from reporters at a regular press conference of the Ministry of Commerce on November 25, spokesperson of the Ministry of Commerce Shu Jueting said that the Ministry of Commerce and the National Development and Reform Commission have jointly launched a national and free trade pilot zone. The negative list of foreign investment access will be further reduced. Earlier, Liu Xiaonan, Director of the Foreign Investment Department of the National Development and Reform Commission, revealed that the National Development and Reform Commission is working with the Ministry of Commerce and other departments to formulate the 2021 negative list of foreign investment access, which is planned to be released before the end of the year.
4.9 Billion Yuan Fined For Damage To Natural Environment
As of this month, Communist China authorities across the country have handled 7,600 such compensation cases and more than 9 billion yuan has been collected in compensation for environmental damage caused by companies, Bie Tao, the Ministry of Ecology and Environment’s director general of law, regulation and standards, told a news conference on Thursday. Compensation for environmental damage has been included in the Civil Code, as well as five other special laws, and local legislators in 19 provincial-level regions have passed regional regulations on implementing the system, Bie Tao said.
5.HK To Launch Health Code System in December Ahead Of Border Reopening
Hong Kong has basically met the requirements for resuming quarantine-free travel with the Chinese mainland, and a local health code system will be launched in early December, Chief Secretary John Lee Ka-chiu said on Thursday. His comments came after a meeting with mainland officials and experts in Shenzhen, Guangdong province. Lee offered no timetable on the resumption of quarantine-free travel, but said the daily quota and other measures related to the reopening are being discussed. The meeting, attended by mainland experts and officials from the Hong Kong Special Administrative Region, Guangdong, and the central government, was the second face-to-face talks on epidemic-control collaboration between representatives of the mainland and Hong Kong. Earlier this week, a mainland delegation of experts finished a four-day visit in Hong Kong to examine the city’s epidemic-control system.
6.Wechat and Alipay Payment Codes Misinterpreted as Prohibition for Business Payment
A central bank document published in October suddenly received widespread attention on November 26. This document is called “Notice of the CCP Central Bank on Strengthening the Management of Payment Acceptance Terminals and Related Businesses”, which stipulates that barcode payment collection service agencies (Alipay, WeChat Pay) cannot be used to collect payment for business activities. Some netizens interpreted this provision as “prohibition of personal collection/payment codes” and “only cash for future payments”. As soon as the news came out, the share prices of Tencent and Ali both fell.
7.Fantasia Says Winding-Up Petition Filed Against Key Subsidiary
Fantasia Holdings Group Co., Ltd. (1777.HK) stated that its main subsidiary, Hong Kong Fantasia Investment Holdings Group Co., Ltd., was filed for a winding-up petition on Wednesday (24th). The principal repayment is a loan financing of US$149 million, and Fantasia Investment is the guarantor. According to the announcement on Thursday evening, Fantasia Holdings will seek legal advice to protect its legal rights and take all necessary measures to resolve the matter, including constructive dialogue with the petitioner. Fantasia Holdings, which has fallen into a debt vortex due to the default of the US dollar debt, previously stated that the company is actively negotiating with relevant creditors to reach an agreement with the creditors to renew or extend its borrowing or other arrangements and said the group is facing liquidity problems.
8.Some State-Run Companies Limit Use of WeChat
Some Communist China state-run companies are restricting employees’ use of Tencent Holdings Ltd. ’s popular domestic messaging app, citing security concerns, according to people familiar with the matter. This week, managers at at least nine state-run companies, including some of the nation’s largest, such as China Mobile, China Construction Bank and China National Petroleum, told employees that any chat groups set up for work purposes on WeChat—Tencent’s dominant messaging app which could contain sensitive information and should be shut down and deleted, the people said.
【G Translators- Financial Team】
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