1.Didi Delisting Stirs Up China-US Relation Tension
Under the regulatory pressures of both CCP and the United States, Didi Chuxing finally announced on Friday on its official Weibo that it will delist from the United States and pursue a listing in Hong Kong Stock Exchange. The market has rekindled concerns about the tension between Communist China and the United States. After the announcement, the share price of Didi’s major shareholder SoftBank Group fell by more than 2%; Chinese concept stocks and Hong Kong stocks also fell sharply, Alibaba (9988.HK) plunged by 5.4% and hit a new low record since listing, Bilibili (9626.HK) fell by over 7% and Tencent (0700.HK) also fell by more than 3%. Didi closed down by 0.13% on Thursday at US$7.8, which is close to half of the issue price of US$14 at the time of listing.
2.Listed Companies to Divest Their Real Estate Business
According to documents and official media reports, more and more Chinese listed companies are divesting their real estate business because the industry is subject to stricter supervision. The tightening of loan restrictions on the real estate industry aggravated the financial problems of some real estate developers and caused liquidity pressures across the industry.
On Thursday, Beijing Shunxin Agriculture (000860.SZ) said it plans to sell all of its equity in its loss-making real estate unit. Two weeks ago, Hainan Yedao (600238.SS) said it would sell its 40% stake in a real estate company to focus on its core business and improve liquidity. According to the “Securities Times” report, so far this year, dozens of Chinese listed companies including Xiamen ITG Group (600755.SS), Aoyuan Beauty Valley (000615.SZ) and Zhongtian Finance (000540.SZ) have announced plans to dispose of their real estate business. According to data from the China Trustee Association, the Q3 balance of fund trusts invested in the real estate industry was less than 2 trillion yuan ($313.66 billion), down by 26% from the same period last year.
3.Advisers to Recommend Lower 2022 GDP Target- Sources
Advisers to Communist China’s government will recommend authorities set a 2022 economic growth target below the one set for 2021, giving policymakers more room to push structural reforms amid growing challenges to the outlook. Three advisers told Reuters they have drafted recommendations for annual economic growth targets ranging from as low as 5% to 5.5%, ahead of the closed-door conclave, down from the “above 6%” target set for 2021. “Ideally, we should have growth of 5-5.5% or around 5.5% next year,” one of the advisers said. Another of the advisers, from a top government think tank, recommended a target of above 5% for next year.
4.CAAC Sets Boeing 737 MAX Directive for Flight Resumption
Air-safety regulators issued a key safety approval for Boeing Co. ’s 737 MAX, bringing the aircraft a step closer to resuming passenger service in that country. The Civil Aviation Administration of China (CAAC) required in an order released Thursday certain software installation and a revision of the jet’s flight manual, among other changes. A CAAC official said Friday that if an operation certificate is approved the MAX flights could resume operations by the end of the year or early next year. Communist China was the first to ground the plane in the wake of the second of two fatal MAX crashes in March 2019.
5.Macau November Gaming Revenue at Mop6.7 billion, Headwinds After Chau’s Arrest
Macau’s gross gaming revenue (GGR) stood at MOP6.7 billion, a decent rise of 55% compared to the prior month’s gains, which were the year’s second lowest revenue from the gaming sector amid the rise of Covid-19 cases and strict entry regulations. Data from the Gaming Inspection and Coordination Bureau shows that, despite the increase, December revenue was still down 70% from the pre-pandemic in 2019. Last month, the city recorded an uptrend in tourist arrivals following the September cases, reaching up to 35,525 on a single day. Now, the industry is facing further headwinds after the arrest of the head of the city’s biggest junket, Alvin Chau.
6.CCP Senior Officials in Macau to Advise Government on National Security
Communist China’s Senior Officials in Macau will begin advising the government on national security matters, state news agency Xinhua reported on Friday. The move highlights increased scrutiny from Beijing over Macau affairs after the central government declared outflows of gambling-related funds into Macau and other gaming hubs a national security risk. Beijing will also appoint three national security technical advisers from within the Liaison Office, which is Beijing’s main representative institution in Macau.
7.Tesla Recalls 21,599 Model Y Made in China, Citing Steering Knuckle Issues
According to a statement from Communist China’s State Administration for Market Regulation (SAMR), Tesla Shanghai filed a recall plan for 21,599 Model Y EVs manufactured in the country. The automaker cited issues pertaining to the strength of front and rear steering knuckles, stating they may not meet the automaker’s design requirements. The press release also stated that Tesla will inspect the front and rear steering knuckles of vehicles within the scope of the recall free of charge and replace the steering knuckles that do not meet the required strength to eliminate safety hazards.
8.Citigroup Applies for China Securities License
Citigroup Inc. has applied for a securities license in Communist China, according to a person familiar with the matter, as the New York-based banking giant eyes a bigger presence in the world’s second-largest economy. The bank recently submitted its application to the China Securities and Regulatory Commission, the person said. Citigroup is also planning to apply for a futures license in the coming months and intends to hire around 100 people in mainland China in the next two years to support its expansion onshore, the person added. Having its own securities license would allow Citi to underwrite yuan-denominated stock and bond offerings, and handle trading of these securities.
【G Translators- Financial Team】
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