Cango Newsletter 20201211
According to the National Bureau of Statistics, CPI dropped by 0.5 percent year-on-year in November, compared with 0.5 percent growth in October. The decline in consumer prices was mainly attributable to dropping food prices, down 2 percent, while nonfood prices edged down by 0.1 percent year-on-year in the month. The core CPI, which excludes volatile food and energy prices, rose 0.5 percent year-on-year, the fifth consecutive month for the index to register the same growth. Meanwhile, the country's producer price index fell by 1.5 percent on a yearly basis in November, narrowing from a 2.1 percent decline in October.The Offshore Yuan at 29-Month High, Rose above 6.5 against The US Dollar
The offshore yuan hovered at a near 29-month high on December 9, trading at as high as 6.4983 per US dollar in intraday. Meanwhile, the onshore yuan also followed suit, rising as high as 6.5213 against the US dollar, and hitting its strongest point since late June 2018. The exchange rate of the offshore yuan has appreciated strongly by 6.6 percent against the US dollar so far this year, and the exchange rate of the onshore yuan has appreciated by 6.3 percent against the US dollar in the same period of time.China and Singapore Launch Follow-up Negotiations for Bilateral FTA Upgrades
China and Singapore announced the launch of follow-up negotiations to upgrade the China-Singapore FTA on December 8, 2020. The two sides will conduct follow-up negotiations on services and investment liberalization under the FTA, based on the negative list model, with a view to further enhancing the level of trade and investment liberalization and facilitation between the two countries. Against the backdrop of the COVID-19, the move sends a positive signal for the two countries to deepen mutually beneficial relations, jointly address challenges and promote economic growth through enhanced economic and trade cooperation.
The retail sales of passenger cars reached 2.081 million units in November, up 8.0 percent year-on-year, remaining the highest growth rate in nearly two years of around 8.0 percent for five consecutive months, said CAPA on December 8. The passenger cars market maintained a strong momentum since July, this was primarily due to the better-than-expected recovery in macroeconomic and export markets, also the strong sales in new energy vehicles. As for next year, CAPA expects the retail sales to increase by 7 percent and auto growth rate to be 4 percent.Deloitte 2020 White Paper of China Automotive Aftermarket Highlights The Chinese Car Ownership to Lead The World by 2025
Benefited from fast economic growth and demographic dividend over the past two decades, auto sales of China have been growing robustly for a long time. According to the report, China is expected to surpass the United States to become the world's largest auto market by 2025. Maintenance market capacity will continue to grow and be expected to reach CNY 1.7 trillion (USD 260 billion) by 2025.SAIC Motor, Shanghai Pudong New Area and Alibaba Group Jointly to Launch High-End Smart BEV Brand Zhiji Motor
SAIC Motor, the Pudong New Area of Shanghai and Alibaba Group jointly announced the launch of Zhiji Motor, a high-end smart electric vehicle brand on Nov 26, aiming to shape it into an innovator in the field of intelligent vehicles. As a user-oriented auto tech startup, Zhiji Motor will develop a brand-new operating model that seeks to benefit both users and enterprises. In light of an upsurge in content creation and instant sharing in the 5G era, it plans to develop its ECU controller to enable a high degree of customization and improve the driving experience.