Cango Newsletter 20201105
The Caixin China Manufacturing Purchasing Managers' Index came in at 53.6 for October compared with 53.0 in September. It was also the highest reading since January 2011, indicating a significant improvement in manufacturing sentiment. Enterprises continued to increase purchases and their raw material inventories grew in response to the fast growth in orders. In October, quantity of purchases index reached the second-highest level in over seven years. The business confidence index has soared to its highest level since September 2014. Nearly one third of entrepreneurs surveyed believe the business conditions will improve further in the coming year.Meng Pu, Chairman of Qualcomm China: 5G is The Key to Global Economic Recovery
US technology and chip giant Qualcomm expects to show its 5G and other high tech at the upcoming China International Import Expo (CIIE) in Shanghai. According to Meng Pu, chairman of Qualcomm China, 5G technology has played a key role in epidemic prevention and control in China and has enhanced the resilience of the Chinese economy as it is witnessing a strong recovery. 5G technology is a core component in building a digital world, the acceleration of 5G in China will have an impact on every major industry, from healthcare, to automobiles, logistics, industrial Internet of Things, etc.Shanghai Stock Exchange to Promote The Improvement of The Quality of Listed Companies
In October, the State Council issued the "Opinions on Further Improving the Quality of Listed Companies", which made a comprehensive and systematic deployment arrangement for improving the quality of listed companies. In this regard, the Shanghai Stock Exchange has formulated a three-year action plan to promote the improvement of the quality of listed companies as the primary goal of current regulatory work. The "Opinions" put forward 17 requirements, covering six major aspects including improving the governance of listed companies, promoting better and stronger listed companies, improving exit mechanisms, solving outstanding problems, increasing illegal costs, and forming work force.
The State Government published “Development Plan of New Energy Vehicle Industry (2021~2035)”. According to the Plan, by 2025, the average electric power consumption of pure electric passenger cars shall drop to 12 kWh / 100 km, and sales of new energy vehicles are to reach 20% of total new automobiles sale within five years. Highly automated, vehicles will be commercially deployed in designated regions and for special applications. By 2035, pure electric vehicles are to make up the majority of new vehicle sales. The public transport sector will be dominated by electric vehicles, fuel-cell vehicles will be widely and commercially used, and highly automated vehicles will be applied widely as well.China Automobile Dealers Association (CADA): Auto Consumption in Southern China Soars, with 1.95 million Sales Expected in October
According to the latest Vehicle Inventory Alert Index (VIA) released by CADA, VIA in October 2020 stood at 54.1%, up 0.1 percentage point from the previous month and down 8.3 percentage points from same period last year. In terms of the sub-regional VIA, the national index in October was 54.1%, 5.4% in the North, 53.3% in the East, 55.9% in the West, and 49.0% in the South. The extended growth and easing of inventory pressures in the southern region, led by Guangdong province, showed the continued strength of auto consumption.SAIC Motor Has Launched Its First Self-Operated Car-shipping Route to Europe as Overseas Sales Rise against Trend
SAIC Motor announced the launch of its first self-operated car-shipping route to Europe. At the same time, SAIC has established its overseas business goals for 2025, by that time, it is hoped that the car sales of its self-developed brands will reach one hundred thousand vehicles. In the first nine months of this year, SAIC sold 221,000 vehicles overseas, continuing to be the domestic industry leader and accounting for a third of the total overseas sales of Chinese automakers, according to the data.