Cango Newsletter 20210825

央行试点取消非金融企业债务融资工具强制评级

On August 11, the People's Bank of China (PBOC) issued a notice saying that it decided to abolish, on a pilot basis, the credit rating requirements for the issuance of debt financing instruments of non-financial enterprises in order to further enhance the autonomy of market participants in using external ratings and promote the market-oriented reform of the credit rating industry.

促进实际贷款利率下行，小微企业综合融资成本稳中有降

On August 23, 2021, Yi Gang, Governor of the People’s Bank of China, presided over a symposium on the current monetary and credit situation of financial institutions. It was pointed out at the meeting that more efforts should be made to maintain the steady growth of credit and enhance the stability of total credit growth. Analysts observed that the effect of reducing the required reserve ratio (RRR) will probably be seen in August. Based on the MLF and LPR in August, the overall liquidity of the banking system is currently at a reasonable and sufficient level. Industry insiders expect a further RRR reduction in the year.

4家中介被调查追踪，20余家投行被殃及，从严监管成为常态

Chinese bourses have halted processing 30 initial public offering (IPO) plans for the ChiNext board, including Chongqing Broadcasting and TV Digital Media Co., Ltd., BND and Perlove Medical. The halt was due to an investigation by the China Securities Regulatory Commission (CSRC) into Tian Yuan Law Firm in Beijing, China Dragon Securities Co, CAREA Assets Appraisal Co and Zhongxingcai Guanghua Certified Public Accountants LLP. It is said that the 34 halted GEM IPO projects were sponsored by 20 brokers and investment banks, among which, CICC, Huatai United, Sinolink Securities and Western Securities each sponsored 3 IPOs, Everbright Securities, Guosen Securities, China Securities, China Securities, Zhongtai Securities, Changjiang Financing Services and Shenwan Hongyuan Securities each underwrote and sponsored 2 firms.

商务部：扩大二手车流通，二手市场是今后一个很大的市场

Data shows that as of 2021, the total number of vehicles in China had risen to 287 million and the country has developed a large car owner base. With the gradual increase in car ownership, the second-hand car market is also ushering in broader prospects. In the first five months of 2021, the ratio of the transaction volume of second-hand cars to new cars in China has increased from 55:100 in the same period in 2019 to 64:100. In countries with a mature automotive industry, the ratio of second-hand vehicle sales to new vehicle sales by volume typically reaches 2:1. The potential of China’s second-hand car market needs to be unlocked, said the Ministry of Commerce.

2021中国汽车魅力排名：Jeep居然和保时捷一起夺冠

J. D. power released the 2021 China Automobile Product Charm Research SM (APEAL) Report for the domestic car market. Next, let's see which brands are included into the ranking. The average score of luxury matching this year is 743, of which Porsche continues to rank first with 761 points. As for mainstream models, as an unknown brand in the market, GAC Fick Jeep won the first place with 753 points.

2021年上半年全国汽车经销商生存状况调查报告发布

Since 2021, the overall domestic automobile market has maintained a steady growth, and the sales of passenger cars have increased significantly year on year, slightly better than the level in the same period of 2019. However, the shortage of chips and resurgence of pandemic have brought many uncertainties to the future automobile market and dealers’ profitability.

2021年全球汽车制造商财报解读

In 2021, the automobile industry which has not completely recovered from the pandemic and further, was hit by the shortage of IC chips. However, despite the adverse environment, the financial performance of automakers in both the second quarter and across the first half of the year were exceptionally strong. Among the auto makers that announced second quarter results, overall revenue grew by double digits or more, year on year. Except Ford (which benefited from the investment of US $3.5 billion in Argo AI, an automatic driving company in the same period last year), the net profit of all auto makers also increased significantly. Among the auto companies that announced their performance in the first half of the year, their revenue and net profit improved significantly compared to the same period last year.

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