Cango Newsletter 20201014
In an article published recently by Financial News, Fan Yifei, the deputy governor of the People's Bank of China (PBOC), said electronic payments, especially mobile payments, have developed rapidly in China. The central bank is making steady advances in tests of digital yuan and speed up digital transformation in the financial industry. A few days ago, Yi Gang, governor of the PBOC, and Chen Yulu, deputy governor of the PBOC, respectively published articles expressing their views on opening-up and reform of China’s financial sector, which sent a powerful policy signal.Shenzhen to conduct comprehensive pilot reforms
China unveiled a detailed plan for comprehensive pilot reforms to be implemented in Shenzhen in a bid to transform it into a demonstration pilot area of socialism with Chinese characteristics. According to the plan issued by the general offices of the Communist Party of China Central Committee and the State Council, the plan pledged to grant greater autonomy to Shenzhen to carry out reforms in important fields and at key links.The income confidence index has risen by more than 20%
In September, the central bank released a series of questionnaires to survey urban savers, entrepreneurs and bankers. According to the survey results, in the third quarter, both the personal income and employment sentiment index were improved, and the income confidence index stood at 49.2%, up 1.3 percentage points over the previous quarter. The proportion of residents inclined to "consume more" and "invest more" also increased, with more than 20% planning to buy a house in the next three months, a record high for the year.
In September, the production and sales of vehicles were 2.524 million and 2.565 million respectively, an increase of 19.1% and 17.4% from the previous month, and an increase of 14.1% and 12.8% from the same period last year. As of this month, auto production and sales have grown for six consecutive months, including five consecutive months of sales growth of more than 10%. From January to September 2020, the production and sales of vehicles were 16.957 million and 17.116 million units, decreased by 6.7% and 6.9% year-on-year, respectively, and the decrease was 2.9 percentage points and 2.8 percentage points narrower than that from January to August.The wholesale sales of new energy passenger cars exceeded 125,000 units in September, up 99.6% year-on-year
According to CPCA, retail sales of passenger cars reached 1.91 million units in September, up 7.3% from September last year. The cumulative growth rate of retail sales from January to September this year was -12.5%, up 3 percentage points compared to the cumulative growth rate of -15.2% from January to August, reflecting the rapid recovery of the industry. The wholesale sales of new energy passenger cars exceeded 125,000 units in September, up 99.6% year-on-year and up 24.1% month-on-month.Price war in China’s car market, Tesla and BBA lowered price
In the past National Day holidays, major car companies offered diverse discounts, among which, the luxury car companies cut prices by a larger range. Tesla has also cut price in October, with the intention to further extend its product categories downwards.