Cango Newsletter 20211115
The Ministry of Finance of China successfully issued 4 billion euros of sovereign bonds in the Hong Kong Special Administrative Region on November 10, including 1.5 billion euros with a 3-year maturity issued at a yield of -0.192%, 1.5 billion euros with a 7-year maturity issued at a yield of 0.216%, and 1 billion euros with a 12-year maturity issued at a yield of 0.759%. The issuance was well received by the market, with active subscription from international organizations, central banks, and institutional investors such as sovereign funds, long-term pension funds, commercial banks, insurance companies, etc., contributing to a subscription multiple of about 4.3 times.Beijing Stock Exchange opens for trading on Nov. 15 following announcements of 10 companies from the selected tier
In the evening of November 10, 10 companies collectively released announcements regarding their transfer from the selected tier of China’s National Equities Exchange and Quotations. They are Henghe Co. Ltd., Keda Automation, Control, Anhui Jingsai Technology Co. Ltd., Henan Concentric Transmission Co. LTD, Zhongshe Engineering Consulting (Chongqing) Co., Ltd., SUNTANG, Chengdu Zhonghuan Flow Controls, ZCCN INFO, Nantong Dadi Electric Co., LTD, and Hiacent. According to the announcements, with the approval of the Beijing Stock Exchange, the shares of these companies will be listed on the Beijing Stock Exchange on November 15, 2021 which suggests that the opening time of the Beijing Stock Exchange has been finalized. The Beijing Stock Exchange has been on a fast track as it only took 70 days from the announcements of its establishment to its official opening, demonstrating China's determination to promote reform and opening up of the country’s capital market.Education providers seeking change 100 days into the “double reduction” policy
It has been a hundred days since the implementation of the "double reduction" policy in education. Up to now, 263 online subject-based training institutions have achieved a nearly 50% of burden reduction rate. A total of 4 inspections have been carried out which revealed a number of violations, leading to the creation of a database containing the dynamics of incompliant training institutions. The database covers more than 50 training institutions in 12 provinces across the country. As a result, the training market quickly cooled down, and the online education institutions are proactively seeking change to transform to quality education.
On November 7, the State Council of China issued "Opinions on Deepening the Battle of Pollution Prevention and Control". According to the document, China will continue to fight the battle against pollution from diesel trucks by implementing the clean diesel vehicles (engines), basically eliminate vehicles operating at or below national emission standards Stage III, promote the demonstration and application of hydrogen fuel cell vehicles, and promote clean energy vehicles in an orderly manner; it will further promote the electrification of public transportation and vehicles used for official business in large and medium-sized cities.CAAM: NEV production and sales reached 2.566 million and 2.542 million respectively Jan.-Oct. with YoY growth of 1.8 times
According to the statistics of the China Association of Automobile Manufacturers (CAAM), in October 2021, the new energy vehicles market continued its good performance with production and sales continuing to increase month-over-month and year-over-year, hitting a record high. In October 2021, among the main types of new energy vehicles, the production and sales of pure electric and plug-in hybrid vehicles continued to grow compared with the previous month; and compared with the same period of last year, the production and sales of pure electric and plug-in hybrid vehicles maintained its strong growth momentum.Traditional and new carmakers release delivery results for October 2021
Based on the delivery data released, traditional carmakers performed well in October 2021 with orders for GAC’s AION exceeding 20,000. Among the new carmakers, orders for Xpeng’s cars exceeded 10,000 for another month, while Nio saw its sales decline in October with the upgrade of some production lines and preparations for new product launches.MIIT: Conduct research on policy measures to support accelerated development NEVs
The Ministry of Industry and Information Technology (MIIT) revealed that as of the end of September, the production and sales of new energy vehicles exceeded 2.1 million, solidifying China’s global leadership position. According to an MIIT spokesperson, China will strengthen its manufacturing industry chain, particularly for industries related to the national economy and people’s livelihood; it will accelerate key technology research through the open competition mechanism to select the best candidates; set up the automotive semiconductor application and promotion working group to organize companies along the entire industry chain to establish a joint research mechanism for automotive chips and enhance the supply capability of automotive chips.