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1.Offshore Yuan Depreciates Against the Dollar, Falling Below The 6.77 Mark, Down More Than 600 Points During the Day

May 26 – The offshore yuan continued its downward spiral against the U.S. dollar, falling below the 6.77 mark, down more than 600 points during the day. This morning, the RMB/USD mid-price was at 6.6766, down 216 points. Since this year, the RMB has clearly demonstrated a two-way fluctuation against the USD and its volatility has widened. Recently, the yuan has been appreciating against the dollar, with the offshore yuan having appreciated by more than 1,400 basis points against the dollar since May 16, to 6.6825 in today’s session, while in the month around the beginning of April, the yuan depreciated by thousands of basis points against the dollar, with the offshore yuan once breaking 6.8.

Comment: With the West’s economic blockade and sanctions against the CCP, the fall in the RMB exchange rate is only just beginning. The poor thing is that the people of the Communist China are still being deceived by a bunch of lying experts.

2.The CCP’s People’s Bank of China issued the Notice on Promoting the Establishment of a Long-term Mechanism for Financial Services for Small and Micro Enterprises that Dare to Lend and Willing to Lend and Can Lend

In order to implement the CCP Central Committee and the State Council on the stable growth and market main decision-making arrangements, in response to the current epidemic impact on the impact of some industries, increased difficulties for enterprises, as well as the lack of endogenous motivation of financial institutions, external incentives and constraints do not play a sufficient role, recently, the People’s Bank of China issued a “notice on promoting the establishment of financial services for small and micro enterprises dare to lend willing to lend can lend will lend long-term mechanism” (hereinafter referred to as the “Notice”), from Constraints on financial institutions to lend factors, in accordance with market-oriented principles, to further deepen the supply-side structural reform of financial services for small and micro enterprises, accelerate the establishment of long-term mechanisms, and strive to enhance the willingness, ability and sustainability of financial institutions to serve small and micro enterprises, to help stabilize market players, stable employment and entrepreneurship, and stable economic growth.

Comment: The title is a joke. You can see in it that the Chinese economy is about to collapse.

3.CCP Ministry of Finance, Civil Aviation Administration: Phased Implementation of Domestic Passenger Flight Operating Subsidies

Ministry of Finance, Civil Aviation Administration: subsidize the loss amount after deducting the variable cost from the actual revenue of domestic passenger flights. Set the maximum loss amount subsidy standard ceiling of 24,000 yuan per hour. The policy implementation period is from May 21, 2022 to July 20, 2022.

However, for the specific funding support approach, it is yet to be disclosed at the meeting. Some airlines said that the funding support policy will be for domestic flights in accordance with the specific amount per class per flight hour, regardless of the size of the airline company, regardless of state-owned and private.

Comment:  This is just a symptom of China’s economic depression.

4.Shenzhen: The Purchase of Eligible Cell Phones, Computers and Other Products to Consumers in Accordance with the Sales Price of 15% to Subsidize

May 26, Shenzhen City released “Shenzhen City on the promotion of sustained recovery of consumption of a number of measures. The “Measures” proposed to carry out green energy-saving home appliances promotion. Organization of home appliance production and sales enterprises to launch a benefit for the people, May-August period, the consumer to purchase eligible TV sets, air conditioners, refrigerators, washing machines, kitchen appliances, small household appliances and other household appliances, in accordance with the sales price of 15% to subsidize, up to a total of 2,000 yuan per person.

Comment: China has never really had a market economy.

5.36 Cities Introduced New Provident Fund Policy Many Enterprises Can Defer Payment

Recently, the Ministry of Housing and Construction and three other departments issued a notice that localities can increase the amount of housing fund rental withdrawals; enterprises affected by the epidemic, can apply for a deferment of housing fund payments. The new policy has been introduced in at least 36 cities in the month of May as of May 25. Since May, Beijing, Changchun, Shenyang, Baotou and many other cities have introduced supportive policies around enterprise deferment of provident fund payments and employees’ housing provident fund loans that cannot be repaid normally.

Among them, Beijing Housing Provident Fund Management Center pointed out that enterprises with current difficulties can apply online before the end of the year to defer payment of provident funds, and employees affected by the epidemic have not repaid their provident fund loans normally, without making overdue treatment.

Comment: The real reason is the economic collapse and the coming wave of unemployment in China.

6.CCP State Office: Encourage Banking Institutions to Increase Credit Support for Small, Medium and Micro Foreign Trade Enterprises

The General Office of the State Council issued opinions on promoting foreign trade to maintain stability and improve quality, to further strengthen financial support for small and medium-sized foreign trade enterprises. All localities to strengthen the “government, bank and enterprise” docking, sorting out a number of urgent funding of small, medium and micro foreign trade enterprises list, to carry out “list” management, in accordance with market-oriented principles, to focus on support. Increase the support of export credit insurance for small and medium-sized foreign trade enterprises, and further expand the coverage of small and medium-sized foreign trade enterprises on the basis of last year. Optimize the underwriting and claims processing conditions for small and medium-sized foreign trade enterprises, and shorten the claims processing time. Encourage banking institutions in accordance with market-oriented principles to increase credit support for foreign trade enterprises, especially small, medium and micro foreign trade enterprises. Encourage banks and insurance institutions to deepen cooperation in export credit insurance policy financing, strengthen the financing support for small and medium-sized foreign trade enterprises, and increase the scale of credit insurance policy financing.

Comment: These policies are deceiving the people. The CCP has never really supported SMEs.

7.Many Real Estate Companies Lowered This Year’s Sales Target in The Second Half of The Pressure to Sell Houses Is Still Greater

“This year, although there is no external announcement of the 2022 sales target, but compared to previous years, the internal target growth rate has been reduced by about 20%.” A real estate insider revealed to the Securities Daily reporter that for “100 billion yuan real estate enterprises” or individual head real estate enterprises, if calculated by the full-caliber sales amount, this lowered target may mean selling tens of billions of yuan or even hundreds of billions of yuan less than in previous years.

The latest monitoring data from the third-party agency Kerry shows that, up to now, only 10 listed real estate enterprises have publicly disclosed their annual performance targets, a sharp drop from the previous year’s level of about 40. Among the real estate enterprises that have publicly disclosed their annual performance targets, most of them have reduced their sales targets to different degrees this year compared with 2021, with less than 1% reduction and more than 40% direct reduction.

Comment: Chinese real estate has collapsed. All the measures now are to cover up and deceive the people.

8.CCP Minister of Industry and Information Technology Xiao Yaqing: Adhere to The Moderate Ahead of The Construction of Digital Infrastructure to Accelerate the Layout of The Industrial Internet, Automotive Networking, Etc.

The KICD Daily, Xiao Yaqing pointed out at the 2022 China International Big Data Industry Expo that:

First, we should accelerate the construction of digital infrastructure, adhere to the construction of a moderate degree of advance, to build with the use, to use to promote the construction, comprehensive promotion of 5G network and gigabit optical network construction, accelerate the layout of industrial Internet, automotive networking, etc..

Second, focus on expanding the integration of application scenarios. Take the digital transformation of the manufacturing industry as a leader, build a multi-level industrial Internet platform system, cultivate a number of specialized, scenario-based big data solutions, and develop a number of industrial APPs for niche scenarios.

Third, promote the integration and open sharing of data resources, accelerate the construction of basic system specifications for data identification, transaction circulation, cross-border transmission and security, explore various forms of data trading models, and encourage Internet enterprises, telecommunications operators, industrial enterprises and other orderly open data. Continue to support the construction of data exchanges and cultivate a number of data trading service providers.

Comment: All these measures of the Chinese Communist government are aimed at better controlling the Chinese people.

【G Translators- Financial Team】

  Author: Andrew