Cango Newsletter 20210326
China's Loan Prime Rates Remain Unchanged
China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.85 percent this week, unchanged from the previous month. The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 4.65 percent. The lending rates have remained steady for 11 consecutive months, matching market expectations. China will adopt a prudent monetary policy that is flexible, precise, appropriate and moderate in 2021, according to this year's government work report.
Ministry of Ecological Environment: Formulate and Implement the Action Plan for Carbon Emission Peak
On March 23, China, the European Union and Canada jointly held the fifth Ministerial Conference on climate action. Huang Runqiu, Minister of the Ministry of ecological environment, stressed that "the 14th five-year plan" is a key period for China to achieve carbon peak and carbon neutralization. China will adopt more effective policies and measures, formulate and implement the action plan for reaching the peak of carbon emissions, implement the strong goal of controlling carbon dioxide emissions, increase the control of methane and other greenhouse gases, accelerate the construction and operation of the national carbon market, take the initiative to adapt to climate change, vigorously promote the innovation and application of low-carbon technologies, and continuously promote the comprehensive green development of economy and society transformation.
Beijing Bank Regulator Orders Crackdown on Illegal Property Loans
The Chinese capital’s bank regulator has ordered an investigation into the illegal use of personal loans to invest in real estate amid growing fears of a property bubble. The Beijing branch of the China Banking and Insurance Regulatory Commission told banks in the city to conduct a comprehensive examination into personal and business loans issued since the second half of last year. Banks will be held accountable if they are found to have allowed illegal inflows of consumer loans and loan funds into the real estate sector.
CPCA: Flat Retail Sales of Passenger Cars for the First Three Weeks of March
The retail sales of passenger cars remained flat for the first three weeks of March, compared to the same period of 2019, but the trend was relatively weaker compared to the first three weeks of January. The retail trend in the first two weeks of March was relatively mixed, with most of the manufacturers showing moderate retail performance.
CAAM: China’s Auto Production to Face Strain until Q3 due to Chip Shortage
China's production of automobiles is estimated to remain under pressure caused by the global shortage of auto chips, and the shortfall won't ease until the third quarter in 2021. Li Shaohua, deputy secretary general of China Association of Automobile Manufacturers (CAAM), said that the shortage of the chips won't be resolved in the short term. The shortage is expected to start to ease in the second half of this year. The chip shortage is a major shortfall in the supply chain, which will have to be addressed.
Tesla Increases Model Y Price in China by RMB8000
Tesla has increased the price of its locally produced Model Y electric SUV in China yesterday by RMB8,000. The price of its Model Y Long Range increased from RMB339,900 to RMB347,900, and the Model Y Performance increased from RMB369,900 to RMB377,900, according to the company's official website.