Image Source: G Translators- Financial Team

1.China Unicom’s Authorization to Operate in U.S. Revoked By FCC

The US Federal Communications Commission issued an order on Jan 27th, revoking China Unicom (Americas) Operations Limited’s authorization to provide interstate and international communications services in the United States and requiring the company to cease any domestic and international services in the United States within 60 days of the order. The FCC said China Unicom Americas is ultimately owned and controlled by the CCP government and provides mobile virtual network operator services and international private leased circuit and Ethernet private line services along with IP transit, cloud and resold services in the United States. The Commission said that today’s action protects the U.S. communications infrastructure from potential security threats.

2.CCP Central Bank Injects a net of 400 billion Yuan in Money Market in a Week

CCP Central Bank announced on January 28 that in order to maintain smooth liquidity before the Spring Festival, it conducted 200 billion yuan of 14-day reverse repo operations by interest rate bidding on January 28, with the winning rate of 2.25%. There is 100 billion yuan reverse repo expiration on Jan 28, a net of 100 billion yuan injected into the money market. According to Wind data, the CCP central bank injects a total of 900 billion yuan into the market this week by conducting 14-day reverse repo operation, a net injection of 400 billion yuan. On Jan 28, the Shanghai Interbank Offered Rate (Shibor) was quoted at 1.2% for the overnight period, down by 41.40 BP, the lowest price since January 11, 2021. 7-day Shibor was quoted at 2.25%, up by 13 BP;14-day Shibor was quoted at 2.561%, up by 9.9 BP; 1-month Shibor was quoted at 2.419%, up by 0.1 BP; and 3-month Shibor was quoted flat.

3.Communist China Conditionally Approves AMD’s $35 Billion Deal for Xilinx

Communist China’s State Administration for Market Regulation said in a public notice on Jan 27, it will conditionally approve the deal of AMD’s $35 Billion acquisition of Xilinx. The conditions include: AMD do not force tie-in sales of products or discriminate against customers that buy one set of products but not another; the newly merged entity must also ensure “the flexibility and programmability of Xilinx FPGAs” and “that their development methods are compatible with ARM-based processors”; AMD must make sure that its GPUs and FPGA products sold to China are interoperable with products in the China market; to protect the information of third-party by entering into confidentiality agreements with third-party, CPU, GPU and FPGA manufacturers; store the confidential information of third-party, CPU, GPU and FPGA manufacturers in separate and unconnected hardware systems.

4.NDRC: Crack Down Illegal Price Violations on Coal Spot and Futures Markets

According to the news of CCP National Development and Reform Commission on January 28th, the recent domestic coal production continues to remain at a high level and the coal supply continues to be more than consumption for national power plants. Therefore, the current stock of coal has reached 170 million tons, a record high. Based on the overall stability of market supply and demand, the recent domestic coal spot and futures prices relatively rose too quickly, which has adverse effects on coal market, energy security and supply. Concerned about changes in coal prices, NDRC has held a special meeting to deploy the Spring Festival coal production to stable supply and price. At the same time, NDRC will work with relevant departments to further strengthen market price regulation and supervision, and crack down on spot, futures market illegal price violations to ensure that coal prices in a reasonable range of operation.

Comments: What the CCP National Development and Reform Commission actually proposed is that only CCP can take advantage of price fluctuations and only the CCP is “legal” to manipulate spot and future prices of coal, not free market demand and supply.

5.The Residential Properties Sales Down by 6% in Guangdong Province In 2021

Guangdong Real Estate Industry Association released the “2021 Annual Guangdong Real Estate Market Analysis Report” on January 27, which shows that the sales volume is 140 million square meters of commercial properties and sales amount is 2.23 trillion yuan in Guangdong Province in 2021, down by 6.0% and 1.1% respectively, up by 1.2% and 13.0% over 2019, with a two-year average growth of 0.6% and 6.3%. Among them, commercial residential sales are 118 million square meters, sales amount of 1.95 trillion yuan, down by 8.5% and 1.9% year-on-year, down by 0.2% and up by 7.8% on average over two years; the average sales price is 16,453 yuan per square meter.

6.Tencent Plans to Take U.S.-Listed Streaming Firm Douyu Private, Sources

Tencent Holdings Ltd (0700.HK) plans to take DouYu International Holdings Ltd private amid disagreements over strategy among executives at the Chinese videogame streaming firm, two people with direct knowledge of the matter said. Tencent, the biggest shareholder in Nasdaq-listed DouYu with a 37% stake, wants to team up with at least one private equity firm for the deal and is currently talking to investment banks. It is aiming to complete the deal this year. The source people also mentioned that Douyu’s share price has slid 60% since July, with its market capitalization of only $717 million, which is attractive for a privatization deal.

7.Sinopec’s Former Deputy General Manager Cao Yanfeng was Expelled from the CCP

The official website of the Central Commission for Discipline Inspection and State Supervision Commission released a notice on January 27, that the former deputy general manager of Sinopec, Cao Yaofeng is on serious disciplinary issues for review, designated jurisdiction by the State Supervision Commission and supervised by the Shandong Provincial Supervision Commission. In September 2021, Cao Yaofeng was suspected of serious disciplinary violations of the law and has been conducted the organizational review and investigation. It is for seven years since he stepped down from Sinopec.

8.Restructuring Update: Centurium Capital Takes Control of Luckin Coffee

Centurium Capital announced on Jan 27 that the consortium led by Centurium Capital, included IDG Capital and Ares SSG Capital Management, have acquired shares that had been owned by former chairman Charles Lu (Lu ZhengYao) and former CEO Jenny Qian (Qian Zhiya). According to Luckin Coffee’s filing with the SEC, the transaction involves a total of 383,425,748 shares of Class A common stock, previously held by Luckin Coffee’s former Chairman Lu ZhengYao and former CEO Qian Zhiya through affiliated companies. Centurium Capital now has more than 50% voting interests in the Luckin Coffee, becoming the controlling shareholder of Luckin Coffee.

【G Translators – Financial Team】
Author: Apple