1.Communist China’s Corn Shortage and Increasing Imports
Feeding the world’s largest hog herds and supplying its growing local refining industry, Communist China is the second-largest corn consumer in the world. Corn demand has increased significantly this year and will continue to rise in the next few years, especially given the limited amounts of arable land in the country.
It is predicted that China’s corn imports this year may climb from 11 million tonnes in 2020 to 40 million tonnes. According to the latest estimate from the U.S. Department of Agriculture, Communist China’s imports in the 2020-21 marketing year will be about 24 million tonnes, more than triple the number a year ago.
This week, The Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs of Communist China called for the reduction of the use of corn and soybean meal in animal feed to promote the “guaranteed supply and stable market” of feed grain.
2.Hong Kong’s Unemployment Rate Highest Since 2004
From last December to February this year, more than 261,00 people were jobless. Consumption- and tourism-related industries had an unemployment rate of 11.1%. The unemployment rate in the food and beverage service sector dropped to 14.1%, but the retail and most other industries have worsened.
3.Record Defaults Hitting Weak Chinese Firms
Bloomberg – The Chinese Communist Party has identified the reduction of financial risk as a priority this year. As Beijing pulls back liquidity, several sectors are experiencing significant credit-market stress: property firms, local government financing vehicles and energy producers.
Developers account for a fifth of the $10 billion worth of delinquencies in Communist China this year. Recent regulations to curb borrowing and clamp down on leverage in its debt-bloated property sector have led to defaults. Borrowers have defaulted on some $10 billion of bonds in China’s onshore and offshore credit markets so far in 2021, the highest on record according to data compiled by Bloomberg. Refinancing pressures are also mounting on commodity firms in the coal-producing regions especially Shanxi and Hebei provinces, according to data compiled by Bloomberg of corporate bonds issued in Communist China.
4.Top Communist China Brokerage CITIC’s 21.9% Rise in 2020 Profit
Beijing/Shanghai (Reuters) – CITIC Securities Co, Communist China’s biggest brokerage, reported on Thursday a 21.9% rise in profit in 2020, led by strong gains in securities investments. According to the company’s stock exchange filing, its 2020 net profit rose to 14.9 billion yuan ($2.29 billion) from 12.23 billion. CITIC’s revenue generated from stock investment increased by 32.73% to 24.9 billion yuan. Its brokerages rose by 28% to 157.5 billion yuan in net profit in 2020.
5.Communist China’s Jan-Feb Gasoline Exports Jump 30% Year-on-Year
Beijing (Reuters) – Based on customs data released on Thursday, Communist China’s gasoline exports increased 30.1% year-on-year in the first two months of 2021. Fuel demand in Communist China was curbed during the Lunar New Year holiday due to travel restrictions to contain CCP virus outbreaks. But near-record refinery output led to increased inventories. To ease domestic inventory pressure, gasoline shipments in January and February were 3.54 million tonnes, up from 2.72 million tonnes in the same period last year. Analysts expect refineries to raise fuel exports in March to reduce inventory and to profit from recovering demand elsewhere in Asia.
6.U.S. Department of Commerce Subpoenaed Multiple Chinese ICTS Companies
The Department of Commerce served subpoenas on multiple Chinese companies that offer information and communications technology and services (ICTS) in the United States. The subpoenas were issued to gather information and investigate whether the transactions involving these companies meet the criteria specified in Executive Order 13873. U.S. Secretary of Commerce Gina M. Raimondo stated that “The Biden-Harris Administration has been clear that the unrestricted use of untrusted ICTS poses a national security risk “. She also emphasized that “The Administration is firmly committed to taking a whole-of-government approach to ensure that untrusted companies cannot misappropriate and misuse data and ensuring that U.S. technology does not support China’s or other actors’ malign activities”.
By 【Financial Team – Kate】
News Collection: 文罡、Sharon、Kate