12/01/2021 Financial News in China: Caixin PMI Drops to 49.9 In November ; Bank of China Lanzhou Branch Terminates Operations

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1.Caixin China PMI Drops to 49.9 In November

[Caixin] Despite the easing of power shortage, the manufacturing boom weakened in November as the Caixin China Manufacturing Purchasing Managers’ Index (PMI) fell into a contraction range due to the rebound of the epidemic and weak domestic and external demand. The Caixin China Manufacturing PMI released on Dec. 1 recorded 49.9 in November, down 0.7 percentage points from October, and below the Rong Kuk line again after August, reflecting a slowdown in the repair process of the manufacturing industry.

2.Hangzhou Officially Released the Management Method of Shared Ownership Housing

After about 4 months of public consultation, the Measures for the Administration of Shared Ownership Housing in Hangzhou (hereinafter referred to as “Measures”) was officially released. The Measures include 7 chapters and 41 articles, including General Provisions, Planning and Construction Management, Pricing and Tenure, Application and Supply, Use Management, Supervision and Administration, and By-laws, which regulate the definition, application conditions, price and tenure of guaranteed housing with common property rights, and clarify the requirements of construction, supply, use, withdrawal and supervision and administration. According to the Measures, there are three main sources of housing with common property rights, i.e. new construction on allocated land by state-owned enterprises, new construction on publicly-offered land and exclusive use of existing housing in accordance with the principle of “limited house price, fixed share and competitive land price”, and housing units with common property rights are mainly small and medium-sized units.

3.Bank of China Lanzhou Branch Terminates Operations

[SSE China Securities News] The official website of the CBIRC on November 30 showed that the Gansu Bureau of Banking and Insurance Supervision recently approved the termination of the Bank of China Lanzhou Branch. In this regard, the person in charge of the Bank of China Gansu Branch said that the media reported the news that “the CBIRC Gansu Regulatory Bureau approved the termination of the Bank of China Lanzhou Branch”, which received the attention of the public and the media. Lanzhou Branch is an institution under the jurisdiction of Gansu Branch, and all the business of the bank is carried out in an orderly manner in other branches in the urban area, and the termination of business will not have any impact on customer service. Gansu Branch will continue to provide quality financial services to customers.

4.CBIRC: Third Quarter Insurance Consumer Complaints Up by 18.35% Year-on-year

The CBIRC today (Dec. 1) reported on the insurance consumer complaints received and referred by the CBIRC and its dispatched agencies in the third quarter of 2021.In the third quarter of 2021, insurance consumer complaints received and referred by the CBIRC and its dispatched institutions involving insurance companies increased by 18.35% year-on-year. Among them, 16,669 cases involved property insurance companies, up 5.57% year-on-year, accounting for 41.01% of the total number of complaints; 23,980 cases involved life insurance companies, up 29.23% year-on-year, accounting for 58.99% of the total number of complaints. The number of complaints of PICC Property and Casualty Insurance Company ranked the first among property insurance companies. Ping An Life’s complaint volume ranked first among personal insurance companies.

5.Waterdrop Insurance Continues to Lose Money, Share Price Plummets

During the third quarter, Waterdrop’s net revenue was $779.3 million, down by 9.7% year-over-year. Net loss attributable to Waterdrop was $477.0 million, compared to a net loss of $139.0 million in the same period last year, with the loss widening year-over-year. On the user side, as of September 30, 2021, the cumulative number of insurance customers was 108.7 million and the cumulative number of paying insurance customers was 27.2 million.

6.12 Million Orient Cable Convertible Bonds Market Value Devaluated by 58% Overnight to 5 Million

Just because there is no timely conversion or sale, the doomsday strong redemption of convertible bonds and staged investors huge loss situation! The Orient Cable convertible bonds that have just been forcibly redeemed have suffered a 58% loss in redemption price compared to the last closing price, and there are also Clearwater convertible bonds that are also forcibly redeemed to lose 68%.The convertible bonds, after triggering the mandatory redemption, if not converted or sold in time, will be redeemed after delisting at a face value of 100 yuan + very little interest, the redemption price is often less than 101 yuan, while the market trading price is often above 130 yuan or even 300 or 400 yuan.

7.Q3 Trust Asset Size Declines Slightly, Bond Investments Continue to Grow Rapidly

[Caixin] Since the release of the new regulations on asset management, the trust industry has continued to depress the scale of trust assets under the policy guidance of strict regulation, with the first scale rebound since 2018 in the second quarter of 2021, but then fell back slightly in the third quarter, slightly higher than the asset balance at the end of the first quarter, and the scale change tended to be stable. On December 1, the “Review of Trust Industry Development in 3Q 2021” released by the China Trust Association disclosed that as of the end of 3Q 2021, the balance of trust assets entrusted to the trust industry was RMB 20.44 trillion, down by 2% year-on-year, down by 0.94% sequentially from the end of 2Q, and down 22.11% from the peak at the end of 4Q 2017.

8.The Terms and Rates on New Energy Car Are Revised Again and Related Insurance Is Coming Out

The China Insurance Association has recently issued to property and casualty insurance companies the “Adjustment Note on the Measurement of the Benchmark Pure Risk Premium Table for New Energy Vehicle Commercial Insurance Exclusive Products”, which revised the draft of the exclusive terms and rates of the new energy vehicle commercial insurance program based on the feedback received from the public consultation since August this year. Some industry insiders said that this means that the new energy vehicle exclusive car insurance is not far from the official introduction. Compared with the draft, the adjustment note deleted the two additional insurance policies of “additional intelligent driving software loss compensation insurance” and “additional fire accident limit doubling insurance”. In terms of rates, the adjustment instructions show that the benchmark premiums for new energy vehicles have decreased by 0.8% compared to the current benchmark premiums for traditional auto insurance, although the rate of decrease is narrower compared to the draft. In particular, the benchmark premium for third party insurance decreased by 0.1% compared to the current one, narrowing the decrease by 6.1 percentage points compared to the draft; the benchmark premium for auto damage insurance decreased by 1.2% compared to the current one, narrowing the decrease by 5.0 percentage points compared to the draft.

【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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