Cango Newsletter 20210721
LPR PBOC to Release 1 trillion Yuan, Support the Real Economy
The People's Bank of China (PBOC), China's central bank, announced it would cut the reserve requirement ratio (RRR) by 50 basis points for all financial institutions except those who have already held the ratio at 5 percent, from July 15 to support the real economy. After the reduction, the weighted average reserve requirement ratio for Chinese financial institutions will stand at 8.9 percent.
China’s GDP Grows 12.7% in H1 and 7.9% in Q2
China's GDP grew by 12.7 percent year-on-year in the first half of the year to 53.2 trillion yuan, with the “steady and sound” growth momentum consolidated, according to the National Bureau of Statistics. The market expectations have further improved, and major macro indicators were within a reasonable range.
China Banking and Insurance Regulatory Commission: In the First Half of this Year, the Banking and Insurance Industry Maintained a Stable Operation
This year, the CBIRC makes a great effort to improve the quality and efficiency of the financial services, forestalls and defuses risks in focus areas, and continues deepening the reform and maintaining a stable operation.
How Does Blockchain Get through the Next Ten Years
With the strong backing of relevant policies, the continuous optimization of the technology, the expansion of the applications, and gradually improved governance, Blockchain is facing a new developing opportunity. Till 2025, the Blockchain industry in China will reach the world’s advanced level and become a large-scale industry. Chinese Blockchain industry will continue improving the comprehensive strength and getting larger scale by 2030.
Five Policies Impact Auto Market in 2021
2021 is a special year for auto industry to recover. Thanks to the government's successful control of the COVID-19, China's auto industry has shown amazing dynamism, becoming one of the few positive growth regions in the global auto market. In order to further support the positive development of the domestic auto market, the government stepped up several policies over multiple areas in the first half of this year, involving new energy, smart cars, fuel emissions, limited purchase targets and etc.
Six Changes and Countermeasures in the Used Car Industry
As the transformation and upgrading of China's auto manufacturing and distribution industry continues, the used car market will eye big changes covering six major areas, including industry policy, industry structure, consumer demand, industry foundation, communication methods and transaction environment.Auto insurance growth in the first 5 months reveal "price scissors"
There are new changes in the auto insurance industry that affects more than 400 million car owners in China. According to data recently disclosed by the China Banking and Insurance Regulatory Commission, auto insurance premiums reached 314 billion yuan with a yoy decrease of 7%; However, in the first five months of this year, auto insurance has reached 323.8 trillion yuan, a yoy growth rate of 67%. There is an obvious "price scissors " between the growth rate of auto insurance premiums and the growth rate of insurance coverage.
2021 China Automotive Aftermarket Consumption Survey Results Released
The survey involves four categories of after-market services: auto repair and maintenance, auto boutique, auto beauty and auto-tuning. The survey shows that 56.8% of the respondents choose channels outside the 4S store system for repair and maintenance outside the warranty period, and the post-60s and luxury car owners have the highest "loyalty" to the channels; 64% of respondents choose to buy the high-quality car on the e-commerce platform, with the highest percentage of post-80s and post-90s; 56% of respondents spend less than $1,000 on car 56% of the respondents spent less than $1,000 on car beauty; 11% of the respondents had done car modification projects.
BMW Sales were Much Higher than BBA in the First Half of the Year Electrification Becomes the Future Decisive Point
Passenger vehicle sales reached 1.569 million units, representing a 4.7% QoQ and 11.1% YoY decrease for June, 2021, data from the China Association of Automobile Manufacturers (CAAM) showed. The passenger vehicle sales were 10.007 million units, up by 27.0% YoY. Luxury car sales reached 258,000 units, with a year-over-year decrease of 2%, while January-June domestic production of luxury car sales completed 1.658 million units, up 41.5% YoY., higher than the cumulative growth rate of passenger car sales of 14.5 percentage points.
Articles from the latest Corporate Bimonthly Magazine "CANGO Auto View"(CANGO车视界):