1.Another Intra-Day Depreciation of Over 200bp! Offshore Yuan Falls Through 6.78 Against the Dollar
On May 12, the offshore yuan fell below the 6.78 mark against the U.S. dollar, hitting a new low since October 2020 and weakening by more than 200 points during the day, according to the real time line price; the onshore yuan fell below the 6.75 mark against the U.S. dollar, hitting a new low since October 2020, according to the China Money Network quote.
Today, the mid-price of the yuan depreciated by 2 basis points to 6.7292 against the dollar, compared with the mid-price of 6.7290 in the previous session. Over the past two weeks, the dollar index has gradually advanced, rising above 103.82 intraday for the first time on April 28, 2022, and today the dollar index rose above the 104 mark again.
Comment: It’s only a matter of time before the yuan collapses.
2.Tian Huiyu Steps Down as Director and Vice Chairman of Merchants Union Consumer Finance Company
May 12, 2012 – Merchants Union Consumer Finance Company Limit announced today that on April 21, Merchants Union Consumer Finance has carried out the internal removal process of relevant directors in accordance with corporate governance regulations. According to the resolution of the shareholders’ meeting, Tian Huiyu no longer serves as director and vice chairman of Merchants Union Consumer Finance. The company is in the process of replacing the directors and changing the industrial and commercial affairs according to the process.
As the top-ranked domestic licensed consumer finance company in terms of total asset size, operating income and net profit (and the only consumer finance company with total asset size in the tens of millions), its annual report shows that: by the end of 2021, Merchants Union Consumer Finance had total assets of 149.698 billion yuan, an increase of 41.387 billion yuan or 38.21% over the beginning of the year; revenue reached 15.933 billion yuan, a Revenue reached 15.933 billion yuan, up 24.3% year-on-year; net profit generated 3.063 billion yuan, up 83.6% year-on-year. It is worth mentioning that the loan balance of Merchants Union Consumer Finance reached RMB 141.608 billion at the end of last year, an increase of 38.28%, with a solid business expansion.
3.CCP Ministry of Commerce: The U.S. Side’s Elimination of Tariff Increases on China Is in The Fundamental Interests of American Consumers and Businesses
May 12, at a regular press conference held by the Ministry of Commerce, a member of the media asked whether the U.S. side is evaluating whether to reduce the tariffs imposed on China, as the Office of the U.S. Trade Representative recently announced the launch of a review process of tariff increases on China. What does the Ministry of Commerce have to say about this?
The spokesperson of the Ministry of Commerce, Mr. Shuang Jue-ting, said that under the current high inflation situation, the removal of the tariffs imposed by the U.S. side on China is in the fundamental interests of American consumers and enterprises, which is beneficial to the U.S., China and the world. Shuang Jue-ting said, at present, the economic and trade teams of China and the United States maintain normal communication.
Comment: The Whistleblower Movement once again predicted correctly, the Chinese people will continue to do slave labor for some time.
4.Disney CEO Says It Can Succeed Without the Chinese Market
According to foreign media reports, recently, Disney CEO Bob Chapek responded to earnings doubts by telling shareholders that he believes Disney movies can get along just fine without China.
Bob Chapek argued that “the situation there is very volatile and very complex, and you can guess that from a business or political perspective,” and pointed out that the ongoing “Doctor Strange 2: The Multiverse of Madness” has surpassed $500 million at the global box office in just one week without China, saying it just goes to show that the presence or absence of Chinese business has little impact on the company.
“Our brand and series have maintained a long history of success and a strong fan base in this market”, Bob Chapek replied to Wall Street, “and we will continue to schedule new films for review. It’s worth noting, though, that I think Doctor Strange has done very well in multiple places around the world when our films have struggled in China”.
5.Two Departments Clarify the Phased Implementation of The Special Hardship Industry to Defer Payment of Enterprise Social Insurance Premiums Policy
According to the news of “State Administration of Taxation” on May 12, the General Office of the Ministry of Human Resources and Social Security and the General Office of the State Administration of Taxation issued a notice on the phased implementation of the policy of deferring the payment of enterprise social insurance premiums in special hardship industries.
The notice proposes that the moratorium applies to the three social insurance premiums payable by catering, retail, tourism, civil aviation, highway, waterway and railroad transport enterprises. Enterprise employees basic pension insurance premium deferred payment belongs to the period from April to June 2022. Unemployment insurance premiums and work injury insurance premiums are suspended from April 2022 to March 2023, during which enterprises can apply for different periods of deferred payment. Enterprises that have already paid the fees for April 2022 can apply for deferment from May, and the deferment month will be extended by one month accordingly, or they can apply for refund of April fees. The late payment fee is waived during the deferment period.
Comment: China’s massive city lockdowns have left many businesses unable to make ends meet. Then finally a policy like this is introduced to cope with the business owners.
6.Sunac China: Facing Greater Liquidity Pressure October 2023 Notes Overdue
Sunac China announced on the Hong Kong Stock Exchange that sales in core first and second tier cities, which are the Group’s key locations, have been severely affected by the epidemic since March, and the contracted sales amount in March and April dropped significantly by approximately 65% year-on-year, putting the Group under greater liquidity pressure at this stage.
An interest amounting to US$29,478,600 under the Company’s SGX-listed 7.95% Senior Notes due October 2023 was due and payable on 11 April 2022, with a 30-day grace period for interest payment. As of the date of this announcement, the grace period has expired and the Company has not been able to make such payment prior to the expiration date. In addition, interest on the April 2023 Notes was due on April 19, interest on the October 2024 Notes was due on April 20 and interest on the April 2024 Notes was due on April 26, all of which have a 30-day grace period to pay interest and have not yet been paid. Sunac does not expect to repay the debt when the above and other senior notes issued mature or within the relevant grace periods.
Comment: The Chinese real estate market is in fact over.
7.CCP National Development and Reform Commission: According to the United Nations standards, The Life of Our People Has Entered a Stage of Relative Prosperity and Affluence
Hu Zucai, deputy director of the National Development and Reform Commission, said at the conference on the 12th that since the 18th Party Congress, people’s living standards have been improved on all fronts. Reflecting the social quality and consumption upgrade Engel coefficient, according to the United Nations standards, China’s people’s life has entered a stage of relative abundance and affluence, with more than 37 cars per 100 households, which is more than 1 times more than in 2012.
Hu Zucai pointed out that the past ten years of livelihood construction achievements are historic and all-round, but compared with the people’s growing demand for a better life, there are still many shortcomings and weaknesses. The next step, we will adhere to the best efforts, according to the ability to do, in the development of continuous protection and improvement of people’s livelihood, focusing on the people’s urgent difficulties and worries, continue to strengthen the construction of universal, basic, the bottom of the livelihood, and solidly promote the equalization of basic public services, focus on improving the income of low- and middle-income people, increase the weak links, key areas, the tilt of the masses in difficulty, and strive to let all people in high-quality development We will strive to let all the people enjoy a higher quality of life in high-quality development, and move towards the goal of common prosperity one step at a time.
Comment: The Chinese Communist Party’s prime minister had earlier leaked the truth. Will anyone still believe it when they say so now?
8.CCP Ministry of Commerce: January-April Actual Use of Foreign Investment of 478.61 Billion RMB Nationwide
On May 12, at the regular press conference held by the Ministry of Commerce, the spokesperson of the Ministry of Commerce, Jue Ting Shuang, introduced the situation of foreign investment absorption in the country from January to April this year. She said that from January to April this year, the actual amount of foreign investment used nationwide was 478.61 billion yuan, up 20.5% year-on-year (equivalent to 74.47 billion U.S. dollars, up 26.1% year-on-year; excluding the banking, securities and insurance sectors, the same below).
From the industry point of view, the actual use of foreign investment in the service industry amounted to 351.94 billion yuan, up 12.5% year-on-year; the actual use of foreign investment in high-tech industries increased by 45.6% year-on-year, including 36.7% growth in high-tech manufacturing and 48.3% growth in high-tech services.
From the source, the actual investment in China by South Korea, the United States and Germany increased by 76.3%, 53.2% and 80.4% respectively (including investment data through free ports).
Comment: China is going to be decoupled from the world, but they are still cheat people.
【G Translators- Financial Team】