Cango Newsletter 20231207

Date: 2023-12-07

Cango Newsletter 20231207


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 ( 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.

Macro Economy

1. New Round of Coupons Released to Consumers in Multiple Regions

In a proactive move to capitalize on the year-end shopping peak, a fresh batch of coupons has been distributed to consumers across multiple regions, covering sectors including automotive, home appliances, cultural activities, tourism, and dining. Many major auto companies have also launched promotional campaigns to boost car consumption. Experts affirm that the array of consumption-boosting measures introduced recently has further reinforced consumer confidence. As these policies gradually take effect alongside the steady economic recovery and a consistent rise in market supply, the foundation for China’s consumption recovery and expansion will continue to strengthen. [Link]

2. SAMR Cracks Down on Large Enterprises’ Overdue Payments to SMEs

According to a CCTV news piece dated November 30, to clear the mounting arrears owed to small and medium-sized enterprises (“SMEs”) by large enterprises and effectively safeguard SMEs’ legitimate rights and interests, the State Administration for Market Regulation (“SAMR“) has launched a special campaign to address these overdue payments, which will persist until December 10. Since 2021, SAMR has reportedly implemented an array of measures in accordance with the "Regulation on Ensuring Payments to Small and Medium-Sized Enterprises," mandating large enterprises to disclose information on contracts with overdue and unsettled payments in the National Enterprise Credit Information Publicity System. However, some large enterprises have failed to fulfill this legal obligation. Moving forward, SAMR will step up its crackdown on large enterprises’ violations that lead to outstanding payments under relevant contracts. These actions will promote the cultivation of China’s credit system for business entities, boosting their confidence in further business development. [Link]

3. 25 Financial Measures to Support the Private Economy

The "Notice on Strengthening Financial Support for the Development and Growth of the Private Economy" (the "25 Financial Measures") was recently issued jointly by eight Chinese governmental authorities, namely the People's Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, and the All-China Federation of Industry and Commerce. It sets forth 25 specific measures to support the development of the private economy. For the financial sector, it implements the Opinions of the CPC Central Committee and the State Council on Promoting the Development of the Private Sector released 4 months ago. [Link]

Automobile Market

1. Huang Qifan: Auto Consumption Set to Overtake Real Estate as the New Economic Growth Engine

At the 2023 “Understanding China” Conference held in Guangzhou on December 2, the former Mayor of Chongqing, Huang Qifan, emphasized in his address that the transformation of economic growth drivers is a fundamental and pivotal factor in advancing the high-quality development of the Chinese economy. He highlighted the non-viability of the previous model, wherein one-third of GDP growth relied on the real estate sector, and asserted that beyond real estate, automotive consumption has emerged as a prospective new catalyst for economic growth. According to his research, passenger car ownership in China stands at approximately 210 vehicles per 1,000 people, indicating a vehicle ownership rate of 21% among the country’s population of 1.4 billion. Huang commented, "However, on a global scale, in countries with a per capita GDP of $10,000 or more—considered middle-income countries—the vehicle ownership rate typically hovers around 40%. In affluent nations such as the United States and European countries, the vehicle ownership rate ranges from 60% to 70%."[Link]

2. EV Rat Race: from “Great Value for Money” to “High Intelligence for Money”

As we bid farewell to the traditional peak season for consumption, known as “Golden September and Silver October,” the competition among major auto players remains intense approaching year-end. There are signs of another round of price wars as the whole industry makes a final push for year-end sales, and November already brought price reductions and promotion announcements by several automakers. For the auto industry as a whole, the components of the "Strength Matrix" that will make or break auto players in this competition will include first-class intelligent driving and smart cabin technologies, exceptional vehicle definition and design and a refined user experience, as well as robust marketing and sales expertise. [Link]

3. Auto Players Go All Out on Deliveries

As of December 1, delivery results for November are in for emerging auto makers. Li Auto and AION extended their streaks of over 40,000 units, while XPeng delivered just over 20,000, and NIO’s deliveries were still somewhere around the 15,000 mark. However, NETA Auto, last year’s sales champion among emerging auto players, fell outside the top five. The biggest highlight was AITO. Following its great turnaround, AITO delivered over 18,000 vehicles in November, and its December deliveries are expected to surpass 20,000. Meanwhile, Leapmotor also kept its deliveries stable at over 18,000, while strategically aiming for the 20,000-unit milestone. [Link]

For more information, please contact Yihe Liu at