1.CCP regulator launches antitrust probe into Meituan
CCP’s antitrust regulator said on Monday that it has officially started an investigation into Meituan, the country’s largest on-demand delivery service provider, over the alleged monopolistic business practice of forcing merchants to “pick one from two,” as the focus of the country’s anti-monopoly crackdown shifts from Alibaba Group Holding to more companies. The State Administration of Market Regulation (SAMR), the antitrust watchdog agency, announced the probe in a one-line statement on its website, saying it is looking into whether Meituan forced merchants to pick its platform as the exclusive distribution channel, after receiving a tip-off from the public. It is not known how long the probe into Meituan will last.
“The company will actively cooperate with the investigation by the regulatory authorities to further improve the level of business compliance management, protect the legitimate rights and interests of users and all parties, promote the long-term and healthy development of the industry, and earnestly fulfil its social responsibilities,” Beijing-based Meituan said in a statement. “At present, the company’s various businesses are operating normally.”
2.Communist China Huarong existing bonds fell to Junk after Fitch downgrade
Offshore bonds issued by subsidiaries of CCP state-owned bad loan giant Communist China Huarong Asset Management Co fell on Tuesday, after Fitch Ratings downgraded the parent company, even as Huarong companies met deadlines on debt repayment. Fitch Ratings said late on Monday that it had downgraded the long-term issuer default rating of Communist China Huarong by three notches to ‘BBB’ from ‘A’, due to doubts over the strength of its government backing, leaving the company on watch for potential further downgrades.
Fitch believes the government sponsor’s indication of support has not been as forthcoming amid Communist China Huarong’s weakness in its offshore funding channel after the company announced a delay in publishing its annual results. Fitch said in a statement it had also downgraded notes issued by several Huarong subsidiaries. It cut Huarong’s senior unsecured perpetual notes and legally subordinated perpetual notes by an extra notch, to ‘BB+’ from ‘A-‘, and to ‘BB-’ from ‘BBB’, respectively, putting them in high-yield territory.
3.Communist China digital currency trials show threat to Alipay, WeChat duopoly
In Shanghai, six big state banks are quietly promoting digital yuan ahead of a May 5 shopping festival, carrying out a political mandate to provide consumers with a payment alternative to Alipay and WeChat Pay. The banks are persuading merchant and retail clients to download digital wallets so that transactions during the pilot programme can be made directly in digital yuan, bypassing the ubiquitous payment plumbing laid by tech giants Ant Group, an affiliate of Alibaba 9988.HK, and Tencent 0700.HK. “People will realise that digital yuan payment is so convenient that I don’t have to rely on Alipay or WeChat Pay anymore,” said a bank official involved in the rollout of e-CNY for the Shanghai trial, under the guidance of Communist China’s central bank. Communist China’s development of a sovereign digital currency, which is far ahead of similar initiatives in other major economies, looks increasingly poised to erode the dominance of Ant Group’s Alipay and Tencent’s WeChat Pay in online payments.
4.CCP’s Profiteering from Fake Money and Other Products Must End
Despite assurances that it would crackdown on counterfeit goods and intellectual property flowing from its country, Communist China continues to reap billions from the sale of fake merchandise and it’s now affecting an area of the U.S. economy that many would not suspect. Multiple studies have shown that little appears to significantly stem the tidal wave of bogus goods leaving cargo ships each and every day from any number of Communist China’s ports of call or by mail. While most of the public focus has been on tennis shoes, luxury watches, handbags, clothes, cosmetics, cell phones and computer software, there has also been what some consider a direct attack on the financial markets through the numismatic industry. Millions of normal circulating U.S. coins, like quarters and half dollars, as well as bullion and rare collectible coins have now been counterfeited by CCP interests. More recently, U.S. law enforcement seized over a million dollars’ worth of counterfeit circulated George Washington quarters believed to be made in Communist China.
5.Coal prices continue to rise in Communist China
Today, the coal stocks surged 1.62%. Jinneng Holding Shanxi Coal Industry rose 9.96%, ranking first among the sector’s gains, and its share price hit a new high in nearly three months. In addition, Shanxi Lu’an Environmental Energy Development (lu’an EED), Communist China Coal Energy, Jinneng Science & Technology and other stocks rose sharply against the market. Since April, there has been a big bull market in the coal sector. Wintime Energy rose more than 34%, lu’an EED rose more than 31%, Jinneng Holding Shanxi Coal Industry, Shanxi Hua Yang Group New Energy, Shanxi Coking Coal Group and other stocks rose more than 10%. Good performance boost is the main factor of the coal sector rose. The main coke futures contract rose nearly 3% today, and the coking coal rose more than 2%.
6.Bitcoin hit with record weekly outflow as rally ebbs
Bitcoin posted a record weekly outflow, with overall sentiment on cryptocurrencies turning cautious as the digital asset’s searing rally hit a wall, data from digital currency manager CoinShares showed on Monday. Outflows for bitcoin hit $21 million for the week of April 23, the largest weekly outflow on record. Total weekly inflows for the sector were just $1.3 million, the lowest weekly figure since October 2020. That said, CoinShares said outflows last week were 0.05% of the crypto sector’s assets under management, while weekly inflows this year averaged 0.6%. Total assets under management were $54.3 billion as of last week, down from $64.2 billion in mid-April. “We saw investors shifting funds away from bitcoin amid some idiosyncratic developments last week, prominently including the temporary power outage in mining mecca Xinjiang,” said Matt Weller, Global Head of Market Research at Forex.com and City Index.
By 【Financial Team – Tracy】
News Collection: Wendy, Tracy