1. Communist China’s Manufacturing PMI Drops 0.2% to 50.1 in January
Communist China’s National Bureau of Statistics announced yesterday morning on its official website that the manufacturing PMI for January fell from 50.3 in December last year to 50.1 in January this year. Non-manufacturing PMI was 51.1 in January, down 1.6% from the previous month, falling to a five-month low. The PMI for large enterprises was 51.6, 0.3% higher than last month; the PMI for medium-sized enterprises was 50.5, 0.8% lower than last month; the PMI for small enterprises was 46.0, 0.5% lower than last month, falling to a recent low, showing that small enterprises are under greater pressure in production and operation.
2. Macau’s No 2 Junket Boss Levo Chan Arrested
On the morning of January 30, the Macau Judicial Police held a press conference to announce the arrest of a suspect surnamed Chan and a suspect surnamed Choi on suspicion of illegal gambling operations and money laundering on the 28th of this month, both of whom refused to cooperate during questioning. According to local media reports, the suspect surnamed Chan is the beneficial owner of Macau’s leading gaming intermediary, Tak Jin Group, Chen Ronglian (Levo Chen). The company was established in 2007 in Macau and is one of the largest gaming intermediaries in the city. As of October 2021, its VIP lounges in casinos have more Rolling Chip Turnover than Sun City, with more than 600 front-line employees.
3. First Private Financial Holding Company License Application Accepted
The first application for a private financial holding company license was accepted by the central bank, nearly 14 months after the implementation of the “Trial Measures for the Supervision and Administration of Financial Holding Companies” (The Measures). On January 30, the central bank announced on its official website that it has accepted the application of Shenzhen Merchants Finance Investment Holdings Limited and China Wanxiang Holdings Limited to set up a financial holding company, the acceptance time is December 31, 2021, and January 29, 2022, respectively. The actual controller of Wanxiang Holdings is Lu Weiding, son of Lu Guanqiu, a well-known Chinese private entrepreneur. The acceptance of Wanxiang Holdings also means that after nearly 14 months of implementation of the measures, the first private financial control license application broke the ice. Since the Measures came into effect on November 1, 2020, only five companies have had their licenses accepted.
4. 59 A-share Real Estate Enterprises 2021 Performance Forecast: 12 First Losses, 12 Continued Losses
As of Jan. 29, 59 A-share real estate enterprises have released their 2021 earnings forecasts. Affected by the change of market environment and other factors, 12 of the mentioned real estate enterprises are expected to suffer a loss in net profit for the first time in 2021, and another 12 will continue to suffer losses. Among them, China Fortune Land and Sichuan Languang both have net profit attributable to shareholders of listed companies with losses of more than RMB 10 billion.
5. Single Individual Cash Deposit or Withdrawal over RMB 50,000 Required to Register Source of Funds or purpose of use
The People’s Bank of Communist China, the CBRC and the SFC recently jointly issued administrative measures on financial institutions’ investigation of customer identification data and transaction record keeping. The Measures will come into effect on March 1, 2022. The Measures stipulate that commercial banks, rural cooperative banks, rural credit cooperatives, village banks and other financial institutions should identify and verify the identity of customers and understand and register the source of funds or the purpose of use when handling cash access operations for natural person customers of RMB 50,000 or more in a single transaction or $10,000 or more in foreign currency equivalent.
6. Ping An’s Application for Investment in New Founder Group Approved
Ping An of Communist China announced that, according to the agreement of the restructuring investment agreement and the choice of the creditors of the restructuring entity for the settlement of claims, Ping An Life intends to accept approximately 66.51% of the equity interest in New Founder Group for a consideration of approximately RMB 48.2 billion. On January 30, Ping An Life received approval from the China Banking Regulatory Commission to invest in the New Founder Group. Ping An Life has fulfilled the basic conditions to participate in the reorganization of Founder Group and will actively promote the follow-up work agreed in the reorganization investment agreement and the reorganization plan of Founder Group with all parties.
7. Asset Receivers Appointed over the Assets of Certain Evergrande Subsidiaries
Evergrande announced in the evening of 30th on the Hong Kong Stock Exchange that it has learned that receivers have been appointed over the assets of certain subsidiaries of the Company. The assets secure a financing transaction with a principal amount of approximately US$520 million to be entered into by a subsidiary of Evergrande in January 2021.The project was purchased by Evergrande Group from Henderson Land in 2019 for HK$4.75 billion and is subject to a planning change, followed by a lease change and premium payment, before an application for development can be made under the regulations. After the land premium is paid, the total cost of Evergrande Group in the project is over HK$8.9 billion. In August 2021, Evergrande was in the market for a buyer for the project, with an intended price of about HK$8 billion at the time.
8. Beijing Capital Group Listed to Transfer 46.486% Stake in Its Real Estate Company
(Reuters) Beijing Capital Group listed to transfer 46.486% of Beijing Capital Sunshine Real Estate Ltd. with a reserve price of nearly RMB 827 million. Beijing Capital Sunshine Real Estate reported operating income of RMB 2.7 million, operating profit of RMB -23.19 million and net loss of RMB 21.96 million in 2021. The previous 2020 operating revenue of RMB 258 million, operating profit of RMB 136 million and net profit of RMB 99.25 million. As of December 31, 2021, the total assets of Capital Sunshine Real Estate amounted to approximately RMB 1,123 million and the total liabilities amounted to RMB 356 million.
【G Translators- Financial Team】
Author: Rosy Cloud