Cango Newsletter 20230831
Cango (NYSE: CANG) is a leading automotive transaction service platform in China, connecting dealers, financial institutions, car buyers, and other industry participants. Follow us on Twitter (https://twitter.com/Cango_Group) for updates.
Below please find our latest Cango newsletter. Our goal is to share the most newsworthy articles in today’s macro economy, auto industry, as well as our recent developments. Below please find the abstract and news link for more details.
1. Industrial Growth Blueprints Issued by 11 Authorities, Automotive Industry Support Policies to Follow
Recently, 11 Chinese governmental authorities including the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Commerce jointly formulated and issued an array of policies to reinforce growth across four industries: petrochemicals, steel, non-ferrous metals and building materials. Additional policies to boost the growth of other key industries, including machinery, automotive, electronic equipment and electronic information manufacturing, will be released in due course. These policy deployments target specific key industries with the goal of optimizing industrial supply and actively expanding application scenarios across the market. By driving China’s industrial transformation and upgrade in a coordinated manner on both the supply and demand sides, these initiatives are expected to invigorate the continued recovery of China’s industrial economy. [Link]
2. Zhejiang Province Introduces 32 Provisions to Empower Private Economy Growth
The private economy has emerged as a new and uniquely Chinese driver of modernization. It also represents Zhejiang Province’s best economic feature, most abundant resource and greatest advantage. Based on thorough research, Zhejiang recently issued “Several Measures to Promote the High-quality Development of Private Economy in Zhejiang Province” (the “Measures”), to empower further growth of the private economy through integrated, innovative policy measures. The province held a press conference on the afternoon of August 28 to introduce the Measures and their 32 provisions, summarized by the simple equation “1+3+5.” “1” represents the single, overarching goal of concretely solving difficulties across private economy development while enhancing the unrivalled reputation of Zhejiang's private economy. “3” highlights three of Zhejiang Province’s distinct characteristics – that is, its comprehensive development integrating diverse resources, its classic style, and its superior quality and expertise. Finally, “5” represents the Measures’ five proposed means of achieving the province’s main goal, including boosting confidence and expectations; lowering thresholds to expand business presence; fair, just and impartial business execution to overcome hidden obstacles; expanding market coverage to propel business upgrades; and fostering a positive atmosphere to diversify service offerings. [Link]
1. XPeng Acquires DiDi’s Auto Business for HK$5.8 Billion, First Joint Model to be Mass-Produced Next Year
Chinese EV maker XPeng announced its strategic partnership with DiDi on August 28. They will capitalize on each other’s advantages and resources to jointly accelerate the adoption of Smart EVs and relevant technologies. With joint EV models to be launched under a new brand, XPeng will enter a new, multi-brand phase of strategy and development. The first joint model in the pipeline is an A-class Smart EV model targeted for mass production in 2024, currently being developed under the project name “MONA.” [Link]
2. Chinese Auto Makers in India: Navigating Fire at Sea
India is the fastest-growing market worldwide, a market Chinese auto makers must penetrate to achieve their global goals. However, in addition to India’s generally tough business environment, Indian authorities have been particularly harsh on Chinese companies since June 2020, marking a crossroads in Chinese auto makers’ operations in the Indian market. Prior to June 2020, Chinese car companies were accelerating their entries into India, which offered a large young population and a market boasting robust growth momentum. Regulation brought the excitement to a halt thereafter, and despite the gradual recovery of business activities, the future of Chinese auto makers in India remains uncertain and fraught with pitfalls. [Link]
3. Two Singulato Affiliates Entered Bankruptcy Liquidation, RMB17 Billion of Financing Resulted in Electric Scooters, not EVs
Singulato Motors, a new energy vehicle startup which emerged alongside Nio, XPeng and Li Auto, recently made headlines once again – this time, with news of its bankruptcy liquidation. According to the July 5 announcement posted on the National Enterprise Bankruptcy and Reorganization Case Information Network, the Intermediate People's Court of Tongling in Anhui Province accepted the bankruptcy liquidation case of Anhui Qidian Intelligent New Energy Automobile Co., Ltd. (aka Singulato Motors) on June 26, and appointed Tongling Jinjian Accounting Firm as its bankruptcy administrator on June 30. The court scheduled Singulato’s first meeting of creditors for October 10, 2023. [Link]
1. Cango Inc. to Report Second Quarter 2023 Financial Results on August 23, 2023 Eastern Time [Link]
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