5/13/2022 Financial News In China: The CCP Is To Establish A 15-Minute Walk Nucleic Acid “Sampling Circle” In Large Cities; Foxconn Faces Logistical Disruptions In China Due To CCP Virus Lockdown

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1.The CCP Is to Establish A 15-Minute Walk Nucleic Acid “Sampling Circle” In Large Cities

On May 13, Guo Yanhong from the CCP National Health Commission said at a press conference that the establishment of a 15-minute walk nucleic acid “sampling circle” in large cities will facilitate the people’s access to nucleic acid testing, facilitate the early detection of infection, and further improve the sensitivity of epidemic surveillance and early warning. At present, Hangzhou, Shenzhen and other cities are actively carrying out this plan. In order to expand the nucleic acid sampling team to meet the sampling needs, local authorities are also exploring to encourage the participation of personnel with health-related professional and technical qualifications and qualified training by local health administration departments, not only limited to doctors and nurses.

2.Provincial CPI Data in April Released, Shanghai Rank the Highest of 4.3%

The CCP National Bureau of Statistics released the consumer price index (CPI) of 31 provinces in April 2022. According to the JW View Statistics, the CPI of 11 provinces is higher than the national wide level year on year and the other 17 provinces rose less than the national wide level. Among them, Shanghai’s highest of 4.3% and Xinjiang’s lowest of only 0.9%. The CCP National Bureau of Statistics data show that in April 2022, the national CPI rose 0.4% month-on-month, up 2.1% year-on-year. Shanghai ranks the highest, 4.3% year-on-year or an absolute increase of 2.1 percentage points. Jilin ranks the second highest, an absolute increase of 1.1 percentage points or the year-on-year increase of 3%.

3.The CCP Plans to Pilot Retirement Savings Products in Big Four Banks

The CCP China Banking and Insurance Regulatory Commission and relevant departments are studying the pilot program of specific pension savings businesses to promote the reform of commercial pension finance. According to the person in charge of the relevant departments of the CBRC, the initial intention is to be piloted by four large banks in some cities; each of the participating banks will accept no more than 10 billion yuan for investment in retirement savings products and the pilot period is tentatively set for one year. There are three types of specific long-term pension savings products, with the product terms ranging from 5 years, 10 years, 15 years to 20 years.

4.Social Financing Data in April Released

According to preliminary statistics, the balance of social financing scale at the end of April 2022 was 326.46 trillion yuan, up 10.2% year-on-year. Among them, the balance of RMB loans issued to the real economy was 200.21 trillion yuan, up 10.7% year-on-year; the balance of foreign currency loans issued to the real economy in RMB equivalent was 2.35 trillion yuan, up 4.4% year-on-year; the balance of entrusted loans was 10.93 trillion yuan, down 0.8% year-on-year; the balance of trust loans was 4.12 trillion yuan, down 29.9% year-on-year; the undiscounted balance of bank acceptance bills was 2.83 trillion yuan, down 21.8%; the balance of corporate bonds was 31.3 trillion yuan, up 10.3%; the balance of government bonds was 55.04 trillion yuan, up 16.9%; the balance of domestic stocks of non-financial enterprises was 9.88 trillion yuan, up 15.2%.

5.SZSE Release Implementations of Intraday Temporary Suspension of Bond Matching Transactions

Shenzhen Stock Exchange issued a notice to clarify matters related to the implementation of intraday temporary suspension of bond matching transactions on May 12. The Exchange may implement intraday temporary suspension measures for government bonds, local government bonds, policy financial bonds and government-supported bonds in the following circumstances, including (a) intraday transaction price is up or down by 10% or more, than the previous closing price for the first time, the temporary suspension of trading time for 30 minutes; and (b) intraday trading price is up or down by 20% or more, than the previous closing price for the first time, temporary suspension of trading until 15:27.

In addition, other bonds (excluding convertible bonds issued by listed companies) matching transactions in the following circumstances, the Exchange can implement intraday temporary suspension measures, including (a) intraday trading price is up or down  by 20% or more, than the previous closing price for the first time, the temporary suspension of trading time for 30 minutes; and (b) intraday trading price than the previous closing price is up or down by 30% or more, for the first time, temporary suspension of trading until 15:27.

6.CCP To Strictly Clamp Down on Outbound and Cross-Border Gambling

The CCP National Immigration Administration (NIA) will strictly enforce an immigration policy to restrict non-essential outbound travel of Chinese citizens, citing the CCP virus. The NIA has also requested that restrictions be tightened on so-called “gambling-related persons,” in an effort to “keep gambling-related persons within mainland China to the maximum extent possible.” While a statement released after a 10 May NIA meeting mentioned the restriction of non-essential outbound activities of Chinese citizens was related to the epidemic in Shanghai and Beijing, mentioning “strictly preventing people stranded outside the country from arriving and gathering at the border, entering illegally to bring in COVID”, it also mentioned “strictly combatting illegal entry and exit activities, cutting off the main channels of illegal entry and exit at border areas, and severely combatting cross-border illegal crimes.”

7.Li Ka-Shing’s Family Office Reportedly Entered Singapore, Outside Hong Kong for The First Time

Horizon Investments, a unit of CKH Holdings founder Li Ka-shing, is trying to expand in Asia, opening an office in Singapore and seeking new deals and start-up investments, Bloomberg reported. According to the report, Singapore is the first office of Horizon Investments outside Hong Kong, and up to 10 employees will be based there, including senior investment manager Jacky Li in charge of transaction execution and Jeffrey Ho, head of investment portfolio.

8.Foxconn Faces Logistical Disruptions in China Due to CCP Virus Lockdown

Foxconn Technology Group, the world’s largest iPhone assembler, said it faced logistical delays and other challenges in China because of the strict CCP virus control measures. Foxconn Chairman Young Liu said on Thursday that most of Foxconn’s factories in China have been operating in a closed-loop system. He said the company relied on its supply chain management capabilities to maintain production even during the CCP virus outbreak. Liu Yangwei said in an earnings conference call that the company’s relevant teams have spent a lot of effort in arranging staff accommodation and communicating with the local government.

【G Translators- Financial Team】
Author: Apple

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

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