Cango Newsletter 20200925
The State Council promulgated the overall plan for establishing pilot free trade zones (FTZs) in Beijing, Hunan and Anhui.State Post Bureau: Realize " Express Delivery to Villages" within Three Years
Post offices have been set up in all villages and townships in China. This year, the express delivery industry will push forward the "Express Delivery to Villages" project, aiming to realize the "Express Delivery to Village" within three years, so that farmers can pick up parcels nearby.Loan Prime Rate (LPR) Remained Unchanged for 5 Consecutive Months
China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.85% in September, 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%, according to the National Interbank Funding Center (NIFC).Ant Group Gets the Green Light for Mega IPO in Shanghai’s Star Market
Ant Group received approval from the listing committee of Shanghai’s Star Market. The initial application was accepted on August 25, the inquiry stage was started on August 30, and the hearing was held on September 18. It only took Ant Group 25 days to close the loop.
According to China Passenger Car Association (CPCA), the actual sales of passenger cars in August reached 1.7 million units, an increase of 9% year-on-year, setting a record high of this year’s growth rate. CPCA believes that September and October are the traditional peak season, the Ministry of Commerce will hold the national "Consumption Promotion Month" event at that time. The local governments have responded positively, marketing activities such as car exhibitions have been introduced, combined with local stimulus policies, which will further stimulate consumers’ demand. The retail market is expected to continue its steady growth in September, with retail sales of 1.915 million units, an increase of 8% year-on-year.Market Share of Domestic Auto Companies Fell to 36.2% from January to August, with Eight of the Top Ten Auto Companies Seeing Sales Decline
According to the statistics of China Association of Automobile Manufacturers (CAAM), in the first eight months of 2020, the sales of Chinese brands’ passenger cars reached 4.089 million units, down 21.3% year-on-year, and its total market share reached 36.2%, down 2.7% year-on-year. Out of the top fifteen domestic auto companies, from January to August, only five brands have seen sales growth, the rest ten companies have experienced decline year-over-year. SAIC Motor, as the leading domestic auto company, has sold 1.304 million units in the first eight months of 2020, down 14.3% year-on-year.Luxury Car Sales in August: Germany's Big Three Hold 10% Market Share in China, Only Infiniti Declines
According to the statistics of China Passenger Car Association (CPCA), retail sales of luxury cars rose 32% in August from a year earlier and 3% from July, keeping their market share at an all-time high of 15%, the same as in July. Germany's Big Three, led by BMW, Mercedes-Benz and Audi, had a market share of 10.7%, up 5% from 2017. The market share of other second-tier brands was 3.2%, up 1.5% from 2017.Elon Musk Says Tesla Has A Good Chance of Beating Its Record for Deliveries This Quarter
According to Tesla's 2Q20 financial results, the Company produced 82,000 new cars and delivered 91,000 cars in the second quarter. Of which, Model 3 and Model Y were the main drivers, with more than 80,000 units delivered. Combined with 1Q20 results, Tesla delivered 179,000 cars in the first half of the year, still far short of its goal of delivering 500,000 cars in 2020.