Katyusha News Reference – Friday, January 4,2021

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1.Starting from January 7, FTSE Russell will remove China Unicom, SMIC, and Nanjing Panda Electronics from FTSE Russell’s FTSE Global Stock Index series and FTSE Global China A-share index. FTSE Russell also said on Monday that it would exclude SMIC, the largest chip manufacturers of the CCP, and Hangzhou Hikvision from the FTSE China 50 Index.

2.The five-year plan for the development of the steel industry released by the Ministry of Industry and Information Technology of the CCP on Monday (January 4) revealed that the CCP plans to develop two iron ore ores of international significance overseas in 2025 to increase iron ore production and strive for iron ore pricing power.

3. Recently, Wang Yi gave a speech to the joint interview of Xinhua News and China Central Radio and Television Station, which confirmed that the wealth of the Chinese people was once again squandered. He said, “China has also signed debt relief agreements with 12 African countries to reduce and cancel interest-free loans due to 15 countries, becoming the country with the largest debt relief amount among G20 members.” The speech also proved that the CCP has launched anti-epidemic diplomacy with African countries and expanded its influence in African countries.

In this speech, Wang Yi also stressed that the CCP’s outreach to the origin of the virus “more and more research shows that the epidemic is likely to be an outbreak in many places around the world”. This statement is believed to set the tone for the upcoming investigation of the source of the CCP virus.

4. The CCP officially reported an unexpected 0.5% decline in the price index (CPI) in November, which failed to reflect the actual situation of food prices in residents. At present, the price of pigs in China has reached about 36 yuan per kilogram, compared with 28 yuan per kilogram at the end of October. In just three months, the price of pigs has soared by 7.76 yuan per kilogram, an increase of 27%. Judging from the wholesale price of pork, it was 39 yuan per kilogram at the end of November, but by the end of December, it had risen to more than 45 yuan, an increase of 16%. Rising prices and the simultaneous expectation of declining income have depressed the consumption of residents.

5.The CCP has strengthened the management of the epidemic, and the burden on mainland enterprises has intensified. On the afternoon of January 4, the Beijing Municipal Transportation Commission said that in addition to immediate interviews and heavier punishments, confirmed cases of management personnel and drivers have appeared in online car-hailing platform companies, cruise taxi enterprises, road passenger transport enterprises, and passenger station operators, in addition to immediate interviews and heavier punishments, they should also be criticized throughout the industry and publicly exposed. According to reports, an online car-hailing company organizes nucleic acid testing for 9,000 Beijing drivers every day.

6.On January 1, 2021, five years after the official implementation of the comprehensive two-child policy of the CCP.” The only child born in the family planning policy has once again become the experimenter of this round of two-child policy. Most families with a second child face time and energy constraints in raising children and the elderly have also become an important part of maintaining family balance. Both the two-child policy and the family planning policy reflect the control of the people’s reproductive rights and the indifference to life itself.

7.The onshore RMB exchange rate rose 1% on Monday to RMB 6.4614 against the US dollar, breaking through the important threshold of RMB 6.5 against RMB 6.5 for the first time since June 2018. In China, foreign exchange control is becoming more and more strict. Man-in-person intervention in the exchange rate raises market risk and increases the possibility of exchange rate collapse.

8.Australian media confirmed that Liu Huifeng, a businessman of the Communist Party, was investigated by the Australian Security Intelligence Agency (ASIO) by accepting funding from the Consulate General of the CCP in Melbourne, which threatened Australia’s national security. Liu’s application for permanent residence was rejected and he faced repatriation to the CCP.

9.The Chinese CCP media reported on January 5 that Sun Yongyong, executive researcher of the World Social Security Research Center of the Chinese Academy of Social Sciences, said that the delayed retirement policy would not be delayed for too long. The deferred retirement policy will make the elderly stay longer in their jobs, occupy jobs, and delay the employment of young people. Regarding the reason why the CCP adopts this policy, the industry generally believes that pension income is insufficient.

On January 4, the full text of the newly revised Regulations on the Protection of the Rights of Members of the CCP was published. The regulations deleted “Adhering to the principle of democratic centralism” and “guaranteeing the normal exercise and in violation of the rights of Party members” and replaced it with “Adhering to the leadership of the Party and strengthening party building”. Also, strengthen the “four consciousnesses”, strengthen the “four self-confidence” and achieve “two maintenances”. The new version of the regulations requires 90 million party members to maintain Xi’s core position in the Party Central Committee and Xi’s central position in the whole party.

II. World News

1. President Trump held a conference call with Georgia Secretary of State Brad Raffenspegg on Saturday (January 2). After the conference call, Raffensperger intercepted the video of the call and leaked audio to the Washington Post, making President Trump very passive.

2. Kuwait’s Foreign Minister Ahmed Al-Nasser Al-Sabah announced on Monday (January 4) that Saudi Arabia will lift the several-year embargo against Qatar. The agreement will be signed at the summit of the Gulf Cooperation Council in Saudi Arabia on Tuesday (January 5). King Salman of Saudi Arabia will preside over the meeting. Qatari leaders are expected to attend the meeting, which will be the first time since the border was blockaded more than three years ago. Senior White House adviser Jared Kushner, as well as White House Special Envoy for Middle East Affairs Avi Berkowitz and State Department Special Adviser Brian Hooker, will attend the signing ceremony in Saudi Arabia on Tuesday (January 5).

3. North Korea has submitted applications for a vaccine to the major international coalition that helps lower-income countries get the CCP pneumonia vaccine, according to a person familiar with the matter. The news did not comment on North Korea’s attitude towards the Chinese Communist Party vaccine. Generally speaking, North Korea should first ask the Communist Party for help.

4. Iran’s state media quoted government spokesman Rabbiyi as saying that the facility in Fordo on Monday (January 4) began to increase uranium enrichment to 20%, and the increase in enriched uranium concentrations raised concerns that Iran would be committed to manufacturing nuclear weapons. This is the latest step in Iran’s direction of violating an international agreement reached in 2015. The agreement restricts its nuclear program in exchange for lifting sanctions.

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