State-Owned banks are pushing digital RMB & CCP economic slowdown

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1.Big state-owned banks are pushing digital RMB, subways and shopping malls can use it

Recently, the reporter visited a number of outlets of major banks in Shanghai and confirmed that state-owned banks such as ICBC, CCB, BOCOM, BOC and PSBC have started to promote digital RMB wallets. In these bank outlets, users do not need to carry certificates or bank cards. They just need to fill in information, apply for a white list, open a wallet, and participate in the digital RMB test. Some observers have pointed out that the six major state-owned banks, as operating institutions, have developed from the initial “internal invitation system” to the “extensive invitation system” in the test of digital RMB personal wallet, and the state-owned banks are still the main operators. With the continuous development of pilot projects, it is believed that the comprehensive mode of central bank app unified supervision + sub wallet of each bank operation has emerged, and may be the final form.

2.New Oriental, Tal Education and GSX collective collapsed, the market value has evaporated by 100 billion!

Shares of three of Communist China’s best-known publicly traded education stocks, TAL Education Group (NYSE:TAL), New Oriental Education (NYSE:EDU), and GSX Techedu (NYSE:GSX), were in freefall. As of night EDT on 26 March, TAL stock is down 18%, New Oriental has fallen 22%, and GSX is down worst of all 25%.

The plummet of education stocks is related to a document circulating in the market. This document mentions that in order to earnestly implement the spirit of the important instructions of the main leaders of the central government, and earnestly solve the students’ excessive schoolwork burden, family education expenditure and the corresponding energy burden of parents, etc.. The Ministry of Education took the lead in drafting the Opinions on Further Reducing the Homework Burden of Students in Compulsory Education and the Burden of Off-campus Training.

3.The shortage of automotive chips exceeds expectations

On March 26, Weilai Automobile said that due to a shortage of chips, Weilai will temporarily suspend production for 5 working days. NIO’s delivery volume in the first quarter will be affected as a result. Relevant departments have begun to pay attention to the shortage of chips.

Xin Guobin, deputy minister of the Ministry of Industry and Information Technology, said that the recent shortage of automotive chip supply is not only a global common problem, but also reflects the deep-seated contradiction of my country’s insufficient independent supply capacity. It is necessary to strengthen analysis, research and judgment, and earnestly study and solve it.

4.Ren Zhengfei: product lines that have not been able to dominate in a few years will be closed

Ren Zhengfei said that research and development should not tell stories, but budget. To make excellent product lines, product lines that have not been able to dominate in a few years should be closed. We must give full play to our advantages and form a “sharp knife.” The parts that are not good can be combined by introducing others. Prior to this, the terminal has gained some experience in implementing the “one-point two-sided, three-three system, four groups and one team”, which is correct and successful. Focus on the point of success and don’t spread the surface too much.

5.Communist China’s 60,000 tea companies are not as good as Lipton

On February 20, 2021, the official website of the Securities Regulatory Commission once again disclosed the application draft of the prospectus for the IPO of China Tea Co., Ltd., which means that the company’s IPO process has accelerated and it has entered the pre-disclosure update stage. However, the proportion of China Tea’s self-produced raw materials is less than 10%, and the key links are restricted by others. Among its single category market share, the highest is only 1.67%. Its IPO fundraising project is only to increase production capacity rather than focusing on industry integration. China Tea is more like a brand marketing company gathered by COFCO to promote the listing of tea businesses.

6.Visa allows paying off credit card bill with cryptocurrency

Visa said Monday that it will allow the use of cryptocurrency USD Coin to settle up transactions in its payment network, the latest indication of the growing acceptance of digital currencies by the mainstream financial industry. Visa has launched the pilot program with payment and crypto platform Crypto.com, and the company said it plans to offer the option to more partners later this year.

Visa’s latest step, which will use the ethereum blockchain, negates the need to convert digital coins into traditional money in order for the transaction to be settled, the firm said. Visa’s move comes as major financial firms, such as Mastercard, BlackRock and BNY Mellon, have also accepted digital coins, which has caused some to predict that cryptocurrencies will become a regular part of investment portfolios.

7. Communist China’s March Factory Activity Slowed Down

BEIJING(Reuters) – Falling short of analyst expectations of 51.3, the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) of Communist China dropped to 50.6 last month from February’s 50.9. Communist China’s factory activity in March experienced the slowest growth since April 2020 due to softer overall domestic demand. In addition, producer price inflation in February already reached its highest level in more than two years. According to the survey, underlying economic conditions remained positive even as input and output inflationary pressures intensified for manufacturers.

The Caixin survey focuses on small, private and export-oriented firms while the official survey typically polls large and state-owned manufacturers. The findings contrast with those in an official survey showing faster growth in manufacturing activity as large firms increased production after the Lunar New Year holidays.

8.Communist China Tests Its Digital Yuan Across the Hong Kong Border

The People’s Bank of China announced on April 1 its completion of the first cross-border use test of the digital yuan with the Hong Kong Monetary Authority. The test was launched in Shenzhen, targeting Hong Kong residents who frequently travel to and from Shenzhen and who have visited Shenzhen occasionally. After successful testing, Hong Kong residents can use their Hong Kong mobile phone number to register and open a digital yuan wallet for small purchases. When making purchases, they only need to show the payment code to complete the payment through the POS machine.

Comment: Communist China is looking to push the digital yuan beyond its borders via Hong Kong with the goal of gaining adoption in other countries and ultimately dominating the global financial market with its digital currency.

9.SMIC Will Increase Prices Across the Board After April 1

SMIC, the leading chipmaker in Communist China, informed its customers via email of across-the-board price increases starting from April 1. Orders that have been placed but not processed yet will be subject to the new price, regardless of the timing of the order and the percentage of the payment. It is also mentioned that SMIC’s price hike started as early as March and the price increase varied among customers and between 8-inch and 12-inch products. In this latest round of price hike, prices are expected to increase by about 15% – 30%.

10.Surging Prices and Shortage of Graphics Cards

Because of bitcoin mining, scalper hype, and surge in game demand, the price of graphics cards has skyrocketed in Communist China. According to a recent survey by CCTV, taking the mid-to-high-end RTX 3070 graphics card as an example, when it was launched last September, the official price was only 3,899 yuan. Soaring to about 8,000 yuan, the price has more than doubled. Even used graphics cards are being sold at high prices. In addition, chip shortage limits the supply of graphics cards. For example, when a graphics card manufacturer released a new product in March, fewer than 20 units were available for purchase.

11.Communist China’s Energy Monster Shares Jumped Nearly 18% in U.S. Debut

Hong Kong (Reuters) – Shares of Alibaba-backed Energy Monster, Communist China’s largest provider of mobile charging devices, increased almost 18% in its Nasdaq debut on Thursday after the company’s initial public offering (IPO) was priced below the indicated range. The company filed its prospectus under the name of Smart Share Global and sold 17.65 million shares at $8.50 each, raising about $150 million. According to Reuters, Energy Monster was involved in an ownership dispute as the U.S. IPO was underway. There are also concerns about the future of Chinese companies listed in the U.S. following the SEC’s moves about international companies that do not meet U.S. auditing standards delisted.

12.TSMC Promises $100bn Investment to Meet Demand

The CEO of TSMC, the world’s largest chip manufacturer, recently announced that the company plans to invest US$100 billion in the next three years to build new facilities and expand existing facilities to increase production capacity and meet demand. The company is recruiting thousands of new employees, purchasing land and equipment, and constructing facilities in multiple locations around the world. TSMC is already building a $12 billion chip facility in Arizona. It is also expanding in Taiwan, including building a 3-nanometer chip facility featuring the world’s most advanced chip production technology, in the southern Taiwanese city of Tainan. He also informed customers that the company will suspend wafer price cuts for the four quarters starting from December 31 this year.

By 【Financial Team – Kate】
News Collection: 文罡、Kate

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