Cango Newsletter 20211027
In terms of GDP growth, Hubei, Hainan, Beijing, Zhejiang, Shanxi, Jiangsu, Anhui, Jiangxi, Shandong and Chongqing beat the national aggregate of 9.8%, with Hubei, Hainan and Beijing coming in as the top 3 with 18.7%, 12.8% and 10.7% respectively. Regional competitive landscapes changed slightly as well. For instance, Guangdong and Jiangsu both achieved GDP beyond RMB8 trillion with the gap between the two provinces consistently narrowing. Hubei’s economy rebounded quickly and exceeded that of Hunan over the first 3 quarters of the year.China’s State Council issued “Carbon Peak Action Plan by 2030”
The “Carbon Peak Action Plan by 2030” issued by the State Council pointed out, by 2030 China's share of non-fossil energy consumption will reach about 25% and CO2 emissions per unit of GDP will drop by more than 65% compared to 2005, thus achieving the goal of peaking carbon emissions by 2030. In its notice about distributing the Action Plan, the State Council requires the percentage of new transportation vehicles powered by new energy and clean energy to reach around 40% by 2030.Subscription of the first 4 MSCI A50ETFs ends with 2 oversubscribed
The first batch of four MSCI China A50 interconnected ETFs were issued from October 22 to October 26. The issuance was in good condition, and the limit of the four products was 8 billion each. According to market sources, based on the usual schedule of stock ETF products, the four products are tentatively scheduled to be listed on November 8. Investors can continue to pay attention to the investment opportunities of such innovative products.MIIT: China to establish Basic Security Standard System for IoT in 2022
The Ministry of Industry and Information Technology (“MIIT”) released the “Guidelines for Building Basic Security Standard System for the Internet of Things (2021)” on Oct. 25, 2021, clarifying the security requirements for key basic links such as IoT terminals, gateways, and platforms, meeting the needs of basic security guarantees for IoT, and promoting basic IoT security capabilities. Listed companies related to IoT deserve special attention. The IoT industrial chain is mainly divided into four parts: perception and identification, network transmission, platform management, and application services. Perception and network constitute the access foundations, and platforms and applications are the superstructure.
From January to September this year, overall automobile consumption remained stable. The transaction volume of second-hand vehicles and the recycling volume of scrapped motor vehicles increased significantly. The sales volume of NEVs reached a new high. From January to September, the sales volume of NEVs by manufacturers was 2.157 million, an increase of 1.9 times compared with the same period in 2020 and 1.4 times compared with 2019. Due to the higher volume in the same period last year which went down first before going back up, the lingering chip shortage and the scattered reoccurrence of COVID-19 in China, the downward pressure on new car sales has intensified and continues to be transmitted to the retail market.China Automotive Industry Association: Chip supply in September increasing slightly but not enough to meet manufacturing needs
On October 12, according to the data from the China Automotive Industry Association, automobile sales volume reached 2.067 million in September, down 19.6% year-over-year but up 14.9% month-over-month. In September, production and sales in the NEV market reached 353,000 and 357,000 respectively, growing 14.5% and 11.4% respectively month-over-month and both up 1.5 times year-over-year. From January to September, production and sales of NEVs were 2.166 million and 2.157 million respectively, a year-over-year improvement of 1.8 and 1.9 times.Honda will no longer launch new FFVs in China after 2030
On October 13, by focusing on the two areas of “environment” and “safety”, Honda will accelerate the implementation of various initiatives around the world to achieve its two strategic goals of “carbon neutrality” and “zero fatalities in traffic accidents” by 2050. In China, Honda will further speed up the launch of EV models and quickly complete brand transformation and upgrade towards electrification. After 2030, all new models launched by Honda in China will be pure EVs or hybrid vehicles, with no new FFVs.XPeng launched its 6th generation of flying car with plans for 2024 rollout
On October 24, as part of its 1024 Tech Day, XPeng unveiled the 6th generation flying car design developed by its affiliate HT Aero. The road-capable model is built on a successful record of 15,000+ safe flights completed to date, with preliminary data and experience accumulated. The product is planned for rollout in 2024 at a price below RMB1 million.