1.Chinese issued offshore corporate U.S. dollar bonds increased significantly from US$50.8b in 2015 to US$213.8b in 2019, and is estimated to reach US$250b in 2020, mainly in the real estate and financial industries, Evergrande is currently the largest corporate with US Dollar bonds; in addition to the offshore corporate dollar bonds, the Chinese government has also issued a large number of sovereign US dollar bonds. In October 2020, the Chinese government issued a one-off US$6b bonds in Hong Kong, which has attracted lots of attention in the capital markets.
2.Market Insider post on Frida that five things investors need to be cautious on the markets in the near future: big banks and central banks, bond yields, Bitcoin and Biden. Though stock markets finished the second week of January having reached all-time highs, overlooking fairly gruesome US labor market data and unprecedented political turmoil in the Trump’s presidency. Reflation can pop out particularly following Joe Biden’s plans for a $1.9 trillion stimulus package.
3.On Dec. 30. The EU and China agreed in principle on a deal that will govern their investment going forward. However, activities believe that Europe may have compromised on its red lines, including how to prevent subsidies going to state-owned enterprises. They also worry the EU may be less willing to confront CCP on labor and human rights down the line.
4.The pre-sale of railway tickets of the Spring Festival Transport in 2021 has dropped by nearly 60%. It is expected that the railway passenger flow during the Spring Festival Transport will be reduced to 296 million. 20 provinces, including Beijing, Shanghai, Henan, and Shanxi, have proposed “Cancel Returning Home”, suggesting not back to hometown if unnecessary and no trip out of the province. This cancelation policy may affect more than 100 million people’s trips, a decrease of about 27%
5.Due to the discontinuation of the Flash App, Dalian Train Depot (DAD), a subsidiary of China Railway Shenyang Bureau Group, was paralyzed for more than 20 hours. The official Wechat account of DAD released information on Jan. 14, saying that at 8am Jan. 12, the DAD received a repair call from the head of the station’s shunting zone. The train system page can’t be displayed on their screens, resulting in problems such as the inability to view the trains operation, the inability to formulate the train sequence table, and the inability to arrange the shunting plan.
G Translator / Financial and Law Team