1/3/22-1/9/22 Weekly Reports: CCP Bank to Implement Digital RMB During the Winter Olympics by “7”

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1.HCoin Has Been Fluctuating Steadily This Week, Staying in the 36-38 Range, Comrades Must KYC First Before Buying.

This week, the price of coins has been fluctuating slightly in the range of 36-38. As of Friday night EST, the price of HCoin remained around 36.8 and did not fluctuate significantly. The company’s newest digital currency, HCoin, has been able to stay within a stable range for a long time, which is a miracle. Miles Guo mentioned in Friday’s big live broadcast that if it were open for over-the-counter trading, HCoin would not be worth more than $10 now. It is because of the millions of comrades who have locked their coins that the legend of HCoin is now created. Thank you all! As Miles Guo said, Hpay will definitely become the world’s digital currency game maker and pioneer. Hpay will most likely be officially listed in January next year, and by then, HCoin will officially start circulating in multiple fields, then her value will be immeasurable. the day Hpay is listed, that may be the day HCoin goes from a mere digital currency to a link to the real economy, its significance and value can not be considered significant.

Note: The value of HCoin and its prediction are only personal opinions. Investment should be cautious.

2.The Central Bank Conducted 10 Billion Yuan of 7-Day Reverse Repurchase to Achieve a Net Repossession of 100 Billion Yuan

The People’s Bank of China (PBOC) announced on January 7 that to maintain a reasonable abundance of liquidity in the banking system; the PBOC conducted a 10 billion yuan reverse repo operation by way of interest rate bidding on January 7, 2022, with a winning rate of 2.20%. Given today’s 110 billion yuan reverse repo expiry, the single-day net repos 100 billion yuan. Short-end interest rates were down for two consecutive days at the beginning of the year. The Shanghai Interbank Offered Rate (Shibor) was down 6.3 basis points overnight at 1.714%, and the 7-day Shibor was down 10.6 basis points at 2.042%. The DR007 weighted average rate fell to 1.931%, below the policy rate level in terms of repo rate performance. The 1-day Treasury reverse repo rate (GC001) on the SSE fell to 2.104%.

3.CCP Bank to Implement Digital RMB During the Winter Olympics by “7”

A few days ago, the Digital RMB APP was upgraded and updated, and WeChat Bank (WeChat Pay) digital RMB wallet was then launched. After a multi-stage controlled pilot, Tencent started to provide digital RMB services to users. After users open the Wezubank (WeChat Pay) Digital RMB Wallet in their real names, they can use the Digital RMB App or WeChat to make payments. The “Digital RMB” portal has been added to the “Wallet” page of WeChat Pay for users with real names, and the “Use digital RMB to pay” option has been added to the “Receive and Pay” page of WeChat. In addition, the “Pay with Digital RMB” option has been added to the “Pay with Digital RMB” page of WeChat. By sweeping the digital RMB code or showing the digital RMB payment code to the merchant, users will pay digital RMB conveniently.

It is understood that the Beijing Winter Olympic Village is scheduled to open on January 27, and the digital RMB will be piloted in scenarios related to the Beijing Winter Olympic Games. Tencent will further explore the innovative payment experience of digital RMB for this purpose and help the intelligent Winter Olympic Games be held smoothly. In April 2021, Tencent first disclosed the progress of the phase and had been deeply involved in the research of the Digital RMB project since February 2018, participating in various aspects such as design, R&D, and operation and providing comprehensive support for the implementation of the Digital RMB project.

4.CBRC Announces Regulatory Fee Reversion to Levy

According to the Notice of the Ministry of Finance and the Development and Reform Commission on Issues Related to the Supervision Fees of Securities and Futures Industry, Banking Industry, and Insurance Industry (starting now referred to as “the Notice”), from January 1, 2021, the CBRC resumed the collection of the supervision fees of the banking industry and the insurance industry, and the SFC continued the collection of the supervision fees of the institutions of the securities and futures industry; the securities business supervision fees have been collected for the Beijing Stock Exchange since the opening date of the market. In addition, relevant regulatory costs and related issues are notified as follows. 

First, the banking industry supervision fees (including institutional supervision fees and business supervision fees), insurance industry supervision fees (including institutional supervision fees and business supervision fees), securities and futures industry institutions supervision fees by the provisional exemption policy before the introduction of the fee standard.

Second, the Securities Regulatory Commission of the Beijing Stock Exchange levied on the securities business supervision fees to implement the same levy standards as the Shanghai and Shenzhen Stock Exchange.

Third, the National Development and Reform Commission, Ministry of Finance will work with relevant departments to conduct a comprehensive assessment of the applicable fees, the appropriate adjustment according to changes in the situation.

5.Last Year, the Property Market Regulation up to 651 Times

Centaline Property Research Center data show that the property market regulation in 2021 was as high as 651 times, setting a new historical record, with a year-on-year increase of 33%. The expert analysis says that the overall real estate regulation and control policy in 2021 showed tightening in the first half of the year and gradually introduced policies to stabilize regulation after the market dropped in the second half of the year. Centaline Property Research Center statistics show that with the stabilization of credit policy, 2021 around the real estate stabilization of the property market policies are frequently released, the most specific policy content is talent subsidies, home purchase subsidies. According to incomplete statistics, in December last year, including Guilin, Jinjiang, Hohhot, Jingmen, Hengyang, Kaifeng, Nanning, Baoding, etc., nearly 25 cities have come up with “real money” to boost the real estate market.

Under the influence of these policies, the number of real estate controls in December last year was as high as 65, a high point in the number of policies in recent months. Overall, up to 651 times in 2021 by as much as 33% year-on-year (489 cumulative regulation in 2020), while setting a new historical record with an average of 54 regulation times per month.

6.Taizhou Housing Association Initiative: No Malicious Price Cuts, No Unjustified Means of Vicious Competition

Taizhou Real Estate Association of Jiangsu Province held the second meeting of the five councils; the conference issued the “Taizhou Real Estate Association on consciously maintaining the stable and healthy development of the real estate market initiative.” It is mentioned that the real estate development enterprises should firmly establish the awareness of the overall situation of maintaining the stable and healthy development of the real estate market, take the initiative to maintain market stability, legally and reasonably determine the sales price, scientifically and rationally formulate the promotion plan, do not maliciously reduce the price, and do not adopt unjustified means of vicious competition. The Initiative Letter points out that the current development of the real estate industry has encountered some difficulties due to the impact of regulatory policies, epidemics, and other factors. Therefore, at the critical moment of industry development, to better promote the stable and healthy development of the Taizhou real estate market and jointly maintain the market order, Taizhou Real Estate Industry Association issued an initiative to all real estate development enterprises, including the request to all real estate enterprises to strengthen industry self-discipline, standardize business behavior; establish a sense of the overall situation, reasonable pricing sales; and strive to improve product quality and service level.

The Initiative Letter also mentioned that the real estate development enterprises should practice the “Sunshine Declaration,” consciously maintain the real estate market order, and jointly create a sunny and transparent, honest, and trustworthy real estate market environment so as not to use deceptive or misleading language and words to induce home buyers to trade; not to take the opportunity of market price fluctuations to deceive consumers and We will not release false advertisements, fabricate or spread untrue market information to mislead home buyers’ expectations; we will not provide services to facilitate illegal transactions and disrupt the market order.

7.Evergrande Group Seeks a Six-Month Deferral of Onshore RMB Bond Payment

Evergrande Group announced in an announcement on Wednesday (December 5) that it will hold a bondholders’ meeting for its domestic corporate bond “20 Evergrande 01” from January 7 to 10, proposing to extend “the payment date of the resale portion of the adhesive from January 8 to July 8. ” According to the announcement of Evergrande Group, “20 Evergrande 01” bond, with a size of RMB 4.5 billion (about USD 157 million), was issued on January 8 last year with a coupon rate of 6.98% and a maturity of three years, with the issuer’s coupon rate option and the investor’s option to sell back at the end of the second year. However, given the “current operating conditions,” the company sought to postpone the date of the investor’s repurchase of the bonds and the payment of the coupon by half a year. Evergrande did not disclose any other factors or details in the announcement.

Evergrande, which has more than $300 billion in debt, has suffered a severe lack of cash flow over the past six months due to poor sales and many debt maturities following each other. Although it barely met its dollar repayment obligations twice in October, it announced on December 3 that the first $82.5 million coupon payment was in default due to failure to pay before the expiration of the 30-day grace period. In addition, Evergrande has nearly $20 billion of international bonds that have subsequently been ruled cross-defaulted by credit rating agencies. Evergrande had two more coupon payments totaling $255 million overdue last Tuesday, although both coupons had a 30-day grace period.

8.Missing 37 Days, Wang Chaoyong Appears

On the news that Wang Chao-Chong (ID name Wang Chao-Chong), the controller of Xinzhongli Capital, was released on bail on January 6, 2022, after his 37-day detention period expired, Xinzhongli announced on the evening of January 7 that the company had contacted Mr. Wang Chao-Chong, the actual controller, and confirmed that he cooperated with the public security authorities during his absence. On the same day, Wang Chaoyong also posted several messages in his circle of friends in one breath, all of which were news about Xinzhongli Capital Inc. Among the more than 100 companies in which Xinzhongli Capital has invested, several well-known companies and industry segment leaders at home and abroad, such as Aston Martin, Baidu, Sohu, Huayi Brothers, Dongtian Modelling, Longwen Education, Zhongxin, Meinian Health, Langjin Technology, etc.

In addition to listing on the New Third Board, the past mergers and acquisitions between Xinzhongli and listed company Huicheng Technology in the capital market have also attracted much attention. In May 2016, Wang Chaoyong acquired 11.1% of Huicheng Technology for 1.65 billion yuan in cash, a premium of 113.7% relative to Huicheng Technology’s share price of 8.89 yuan. However, with the introduction of regulatory policies, the “Measures for the Administration of Major Assets Reorganization of Listed Companies” rules were amended to add the trigger condition of “shell listing,” and the road to shell listing was blocked for Xinzhongli.

Wang Chaoyong’s acquisition funds are debt. In recent years, the performance of Hifuture Technology has continued to decline, and the share price is disastrous. As the share price of Hifuture Technology has been falling, the equity pledged by Wang Chaoyong has frequently exploded. 2022, Hifuture Technology’s share price fluctuations have fluctuated significantly since the first trading day of the New Year, the share price rose. As of the close of business on January 7, Hifuture Technology reported 4.36 yuan, down 4.18% that day, with a market value of about 3.5 billion yuan.

9.Yao Jinbo Reduce the Holding of Kunming Sinobright Group

On the 6th evening, Kunming Sinobright Group announced, Yao Jinbo’s five-eight limited Company intends to reduce the Company’s holdings of not more than 77.49 million shares. Furthermore, after the planned maximum percentage reduction, five-eight companies will withdraw from the Company’s top three shareholders seats. The reason why the Company chose to reduce its holdings at this point, Kunming Sinobright Group explained, “because of the group’s asset integration needs. According to the plan, five-eight companies intend to reduce their holdings through centralized bidding, bulk trading, or a combination of two ways. Among them, the total number of shares to be reduced using centralized competitive bidding will not exceed 1% of the total number of our claims, while the reduction using bulk trading will not exceed 2%. The reduced price will be determined according to the transaction method and the secondary market trading price at the reduction time.

As of the date of disclosure by the Company, FiveEight held a total of 195 million shares of Kunming Sinobright Group, accounting for 8.28% of the Company’s total share capital. These shares were acquired by way of equity transfer in 2018 and dividend yield from capitalization of the capital reserve of Kunming Sinobright Group. In June 2018, 58 Group strategically acquired shares in Kunming Sinobright Group, and it transferred a total of 150 million shares of Kunming Sinobright Group with unlimited sale conditions from three companies, namely Hezhao Jiusheng, Hunding Century, and Tibet Shengju, through its five-eight companies, accounting for 8.28% of the total share capital of Kunming Sinobright Group. The transfer price at that time was 7.12 yuan per share, with a total cost of 1.068 billion yuan. With this transaction, FiveEight became the second-largest shareholder of My Love Home. The scale of the maximum 77.49 million shares reduction accounted for 3.29% of the total share capital of our family. After completing the full percentage reduction, the shareholding of FiveEight will be reduced from 8.28% to 4.99%.

10.CCP Strengthens Anti-Monopoly and Prohibits Exclusive Copyright Agreements

The Communist Party of China (CPC) interviewed significant record companies, songwriting copyright companies, and digital music platforms on the 6th, asking all parties in the digital music industry to work together to maintain the order of digital music copyright and build a sound ecology of digital music copyright. The announcement pointed out that the relevant music companies should adopt a licensing model that is in line with the “laws of music distribution,” “fair and reasonable principles,” and “rules of international practice,” and that the licensing model should be based on a guaranteed minimum amount of money (the, In addition, the official announcement pointed out that the relevant music companies should adopt a licensing model that is in line with the laws of music distribution, “the principle of fairness and reasonableness” and “the rules of international practice,” and should calculate the licensing fees using a guaranteed minimum amount of money (guaranteed minimum) plus the actual use of the profit-sharing model, “except for exceptional circumstances, shall not sign exclusive copyright agreements.

In addition, the official also requires the industry to establish a digital music copyright operation model that meets market demand and improves the internal copyright management system to protect the legitimate rights and interests of music copyright holders and related rights holders. Furthermore, in copyright disputes, priority should be given to negotiation and mediation. China’s official regulation of the music industry’s struggle for “exclusive rights” involving monopolistic practices began last year. China’s State Administration of Market Supervision opened a case against Tencent in January 2020 to investigate the “concentration of operators” and imposed penalties on Tencent on July 24, requiring Tencent and related companies to terminate exclusive music rights within 30 days and stop paying high prepayments and other copyright fees.

【G Translators- Financial Team】
Translator: Totoro

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

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