2/9/2021 Financial News: Declining Birthrate in Communist China; CCP Regulators Call in Tesla Over Complaints

Image source: https://electrek.co

1.Declining birthrate in Communist China may cause economic crisis

As of December 31, 2020, there are 10.035 million newborns born in 2020 who have registered with the public security organs. Among them, boys are 5.290 million, accounting for 52.7%, and girls are 4.745 million, accounting for 47.3%. ——The number of births in the country from 2016 to 2019 was 17.86 million, 17.23 million, 15.23 million, and 14.65 million separately. The birth population decline has directly affected Communist China’s economy, or the CCP’s economic crisis indirectly led to the population decline

2.Communist China Banking industry has been fined over 164 million RMB in 2021

According to statistics published on the official website of the Communist China Banking and Insurance Regulatory Commission (CCBIR), a reporter from the “Securities Daily” found that CCBIR has issued more than 170 fines to various types of banking institutions since the beginning of this year, with fines exceeding 163 million yuan. It is worth noting that credit business violations are still a “high-incidence area” where banks are punished. Among them, the illegal inflow of multi-purpose funds such as personal business loans and personal consumption loans into the real estate market is still the focus of regulatory penalties. In addition, the supervision of the bank’s wealth management business is not soft, and there are many ten million yuan fines.


3.CCP’s Central bank reverse repurchase rate cuts on weekends, and overnight funding rates plummeted

On February 8, the central bank announced that the central bank had carried out a seven-day reverse repo operation of 110 billion yuan through interest rate bidding, and the winning interest rate was 2.20%, which was the same as before. The central bank said that the demand for cash withdrawal by residents before the Spring Festival this year was significantly lower than previous years, and fiscal expenditures before the holiday increased significantly. On the same day, 100 billion yuan of the central bank’s reverse repurchase expired, realizing a net investment of 10 billion yuan. The Central Bank conducted a 14-day reverse repo operation of RMB 50 billion in the open market. As no reverse repurchase expired, a net investment of RMB 50 billion was realized on that day. Today, the central bank’s open market reverse repurchase operation has changed from a 14-day period to a 7-day period, and the net injection volume has also decreased from the previous day. Interest rates have also fallen from 2.35% to 2.2%, and the cost of capital use has been reduced.


4.Ren Zhengfei: Huawei will never sell terminal business

On the morning of the 9th Feb, according to Xinhua’s perspective, Huawei founder and CEO Ren Zhengfei said in an interview: “Huawei’s sales revenue and profit have achieved positive growth in 2020. My confidence is greater, not less. We have more means to overcome difficulties.” Ren Zhengfei said, don’t understand that the terminal is a mobile phone, as long as it is connected to people and things, it is a terminal. For example, lidar used for driverless cars, gas meters, water meters, and televisions used in homes are all terminals, and mobile phones are only one part of the terminal. Therefore, Huawei will never sell its terminal business. We can transfer 5G technology, but we will never sell terminal mobile phone business.

Opinion: With the CCP virus around the world and U.S. various sanctions on Huawai, it’s a total lie that Huawei still have positive growth in 2020.


5.The CCP securities industry impairment amount exceeds 20 billion RMB

Recently, while disclosing performance forecasts, securities companies also began to disclose announcements about asset impairment. The huge amounts and neat actions have shocked the market. According to incomplete statistics, there are currently more than 20 securities companies that have disclosed asset impairment related announcements, with a total scale approaching 30 billion RMB. From the perspective of the reasons for the impairment of securities companies, there are two main businesses that have become areas of high incidence: equity pledge business and two financing business. From the perspective of industry insiders, the capital intermediary business itself has financing business risks, especially when the market is turbulent, and individual stocks have adjusted and fell too fast, causing many listed company shareholders or two financial customers to fall below the warning line before they can cover their positions and trigger a forced liquidation. However, if the brokerage fails to recover the losses, it will face actual losses, which will lead to large asset impairment.


6.CCP regulators call in Tesla over complaints

CCP officials have met representatives from U.S. electric carmaker Tesla Inc over reports from consumers about battery fires, unexpected acceleration and failures in over-the-air software updates, a regulator said on Monday. CCP Administration for Market Regulation said in a social media post its officials, along with those from the Ministry of Industry and Information Technology, Ministry of Emergency Management, Cyberspace Administration and Ministry of Transportation, had met Tesla recently without giving a date.


7.Europe’s debt cancellation would mean recognition of insolvency

Economist Thomas Piketty, creator of some of the most absurd proposals embraced by the extreme left, has published an article in which he demands a cancellation of government debt in the hands of the European Central Bank “in exchange for greater public investment “which, by the way, would be paid with more issuance of public debt. “Cancelling the debt (in the ECB balance sheet) is illegal and also does not make economic sense,” he explained to Reuters on February 4th, 2020.


By 【Financial Team】

News Collection: 文罡,Wendy, Sharon

Proofreading: 小蚂蚁在行动

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