9/7/2021 Financial News In China: Shanghai Rural Commercial Bank Fined 7.4 Million Yuan; Hohhot Renovates The Real Estate Market

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1.Communist China copper imports drop 41% y/y in August on weak demand

Communist China’s copper imports fell in August, customs data showed on Tuesday, notching a fifth straight monthly decline as high prices for the metal and sluggish economic growth continue to keep a lid on demand. Arrivals of unwrought copper and products into Communist China, the world’s top copper consumer, were 394,017 tonnes last month, the General Administration of Customs said. That was down 7% from July and down 41% year-on-year. Imports of copper concentrate, or partially processed copper ore, were 1.89 million tonnes in August, customs said. That was the highest level since May, leaping 19% year-on-year and up 0.2% from 1.887 million tonnes in July.

2.Shanghai Rural Commercial Bank fined 7.4 million yuan

A few days ago, the administrative penalty information announcement form published by the Shanghai headquarters of the People’s Bank of China showed that Shanghai Rural Commercial Bank Co., Ltd. was fined 7.4 million yuan for failing to perform customer identification obligations in accordance with regulations, failing to keep customer identification information and transaction records in accordance with regulations, and failing to submit large-value transaction reports or suspicious transaction reports in accordance with regulations.

It is worth mentioning that when the large fine was received, the Shanghai Rural Commercial Bank went public for less than a month. On August 19, Shanghai Rural Commercial Bank officially landed on A-shares, with an issue price of 8.90 yuan per share, setting a new high for the A-share Rural Commercial Bank’s issuance price. However, the bank’s stock trend is not optimistic after its listing. As of the close of September 6, Shanghai Rural Commercial Bank closed down 0.5% to 7.95 yuan per share, with the latest total market value of 76.7 billion yuan.

3.Didi’s ride hailing rival Cao Cao raises $600 mln to expand

Geely’s Cao Cao Mobility said on Monday that it had raised 3.8 billion yuan ($589 million) to fund expansion, amid competition to grab market share from Communist China’s embattled ride hailing leader Didi Global Inc. Cao Cao’s funding round comes as New York-listed Didi faces a cybersecurity investigation by CCP authorities. Along with other ride hailing companies, including Meituan’s, Cao Cao is offering promotions to attract more users. Cao Cao, which was launched in 2015, said in a statement it will use the money to develop technology, expand its business, and develop its own purpose-built vehicles for ride hailing. CCP regulators are urging ride hailing companies to hire qualified drivers to comply with relevant rules and protect data security.

4.BGI prenatal gene test under scrutiny for CCP military links

Health regulators in five countries are examining a prenatal test that collects the DNA of women and foetuses for research, while some doctors that promoted it and clinics that sell it say they were unaware the company that produces it also conducts research with the CCP military. The test, made by Shenzhen-based BGI Group and marketed under the brand name NIFTY, is sold in at least 52 countries. It screens for Down syndrome and more than 80 other genetic conditions, and has been taken by 8.4 million women globally. The regulators’ concerns highlight the challenges of regulatory oversight when genetic data is sent from one country to another.

5.Hohhot renovates the real estate market: cracking down on false discounts and bundled sales

The “Hohhot real estate market improvement action plan” was officially issued on August 31. Hohhot housing and Urban Rural Development Bureau said that the introduction of the plan is to further optimize the business environment, promote the modernization of urban governance system and governance capacity, improve the management and service level of real estate development, and solve the prominent problems and weaknesses strongly reflected by the market subjects and the masses. The plan focuses on optimizing the land supply structure, accelerating the approval speed of construction projects, strengthening project quality management, combating the chaos of the sales market, standardizing the real estate delivery process, improving the speed of real estate certification, etc.

6.Fees for off-campus training in subjects at the compulsory education stage are subject to government guidance prices

The National Development and Reform Commission issued a notice on the 6th, clarifying the need to strengthen the supervision of fees for off-campus training in subjects at the compulsory education stage. The notice pointed out that the fees for online and offline subject-based off-campus training in the compulsory education stage are charged by non-profit institutions, and government-guided price management is implemented in accordance with the law. The government sets benchmark fees and floating ranges, and includes them in the local pricing catalog according to procedures.

The notice clarified that in accordance with the territorial management principle, the benchmark fee standard and floating range for off-campus training for offline disciplines shall be formulated by the provincial development and reform department in conjunction with the education department, or by the people’s government at the prefecture level and above with the authorization of the provincial people’s government; The benchmark fee standard and the floating range for off-campus training in the academic disciplines shall be formulated by the provincial development and reform department in conjunction with the education department where the training institution’s school permit is approved. The floating range set by each locality shall not exceed 10%, and the floating range is unlimited. Training institutions determine specific charging standards within the benchmark charging standards and floating ranges set by the government.

7.Mortgage loans of 11 listed banks “step on the red line”, housing-related loans continue to be tight

After combing through the data on the proportion of housing loans disclosed by 41 A-share listed banks, the reporter learned that there are still 11 banks with personal housing loans that exceed regulatory requirements, and 10 banks’ real estate loans exceed the “red line.” On the other hand, the non-performing loan ratio of listed banks’ housing-related loans has also risen significantly, putting pressure on asset quality. At the same time, most of the A-share listed banks meet regulatory requirements, but many banks still choose to further reduce loans to real estate companies; In terms of personal housing loans, there are differences. Some banks are busy reducing the proportion, and some banks have a significant increase in the proportion of personal housing loans.

8. Tencent Calls For Further Regulation After CCTV Exposes Dark Transactions By Game Accounts

On Monday evening, Chinese state television network CCTV reported that a grey industry chain has been formed in which web users can play online games without various restrictions by paying money to rent another game account. In response, Tencent Games called for the introduction of relevant laws and regulations as soon as possible to strictly control account renting and selling actions.

The gaming giant also asserted that account renting and selling seriously undermined the existing real-name registration system and the protection mechanism for minors. So far, Tencent has filed lawsuits or sent letters to more than 20 account trading platforms and several e-commerce platforms to stop related services. In addition, Tencent firmly implemented new regulations introduced by authorities recently aimed at preventing minors from overindulging in online games.

According to the notice released by the National Press and Publication Administration in August, all online game enterprises can now only provide one-hour services to minors from 8:00 pm to 9:00 pm on Fridays, Saturdays, Sundays and legal holidays. Companies are not allowed to provide online game services to minors in any form at other times.

【G Translators- Financial Team】
Author: Tracy