12/28/2020 Financial News: Communist China’s FX reserves at risk; Corn imports in November increased by 1142.2% year-on-year

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1.Communist China’s FX reserves is at risk and its foreign debt surpasses $2.3 trillion

On Dec 25, Communist China’s State Administration of Foreign Exchange announced that China’s foreign debt (including both domestic and foreign currency) balance was $2.3 trillion at the end of September, an increase of $162 billion from the end of June, the seventh consecutive quarterly increase. The international financial community generally believes that China’s current $3 trillion foreign exchange reserves are a warning line for China to maintain its balance of payments. China needs more than $2 trillion to import goods, services, and technology each year. However, the short-term foreign debt to be repaid within a year reaches $1.3 trillion, and foreign exchange reserves are actually insufficient.

2.Corn imports in November increased by 1142.2% year-on-year

Communist China Customs released the latest statistics showing that China imported 1.23 million tons of corn in November, an increase of 1,142.2% year-on-year. In the case of a significant increase in imported corn over the quota, on Dec 24, 2020, the state temporary storage of corn special bidding trade was held in Heilongjiang branch, this transaction released a total of 956,000 tons of temporary storage of corn, the turnover rate of 100%. At present, the temporary storage of corn is frequently and intensively put into the market, and the cumulative amount of corn being auctioned has reached 1,290,800 tons.

3.Henan Investment Group to issue 500 million yuan ($76.43 million) corporate bonds
According to document published by the Shanghai Stock Exchange on Friday, Henan Investment Group intends to issue a short-term unsecured corporate bond of 500 million yuan ($76.43 million) on December 29, with a term of 360 days. Since the default of Yongcheng Coal on Nov 10, there have been no state-owned enterprises in Henan for 45 consecutive days to issue bonds. Some netizens claim that no one actually wants to buy them and the market demand has fallen to freezing point.

4.Local government bonds issued reached 6.26 trillion yuan ($0.96 trillion) in the first 11 months

Data released by the Ministry of Finance on Dec 24 shows that, the total amount of local government bonds issued nationwide from January to November 2020 was 6.26 trillion yuan ($9.96 trillion) , exceeding the previous historical high of 6 trillion yuan in 2016.

5.Communist China’s propaganda that Chinese steel companies’ profits are being swallowed up by the British and American financial oligarchs

Chinese steel companies suspect the four largest iron ore producers are bidding up prices, arguing that the price of iron ore has risen by 60% this year, but steel price risen by less than 10%. The rise in iron ore prices is unreasonable and unsustainable.

Communist China has a huge market but lacks bargaining power in the international iron ore pricing mechanism. China is highly dependent on imported iron ore, so it looks like all Chinese steel companies are working for four giants iron ore producers, but it is the financial capital of the UK and the US standing behind these giants.

6.Depositors will not get refunds in some cases when bank goes bankruptcy, Securities Regulatory Commission urges residents to convert their savings into investment

The total amount of savings in China is close to 200 trillion yuan ($30.6 trillion). Communist China’s Deposit Insurance Regulations clearly state that when a bank fails, only those with deposits of less than 500,000 yuan ($76,573) are fully protected. The financial products sold by banks on behalf of insurance company, fund company and trust company are not protected.

At the same time, the Communist China Securities Regulatory Commission held a special meeting recently to promote the conversion of Laobaixings’ savings into investment and help expand domestic demand.

By【Finance Team – Rosy Cloud】

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

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