1 December Communist China’s factory activity is likely to be flat
Communist China’s factory activity likely neither grew nor slowed in December, according to a Reuters poll, amid disruptions from the COVID-19 outbreaks and as the economy lost momentum in the fourth quarter. The manufacturing sector’s official purchasing managers index (PMI) is expected to fall to 50 in December, from 50.1 in November, according to the median forecast of 24 economists polled by Reuters on Thursday. A reading below 50 indicates contraction from the previous month, and above 50, expansion.
“We expect the NBS manufacturing PMI to moderate to 49.9 in December from 50.1 in November,” Goldman Sachs analysts said in a note this week, referring to the Office for National Statistics. “The COVID outbreak in Zhejiang province since mid-December likely affected industrial activities, and container traffic data also pointed to lower trade growth in December compared to November,” they noted. The wealthy Zhejiang Province, on the eastern coast of communist China, suffered a small-scale COVID-19 outbreak earlier this month, which has already subsided. Some companies were forced to suspend production.
2 China Evergrande Shares Fall Following Coupon Default Report
Shares of China Evergrande Group fell at the opening of Asian trading after it was reported that it had not paid overseas coupons due on Tuesday (December 28). Evergrande, whose $ 19 billion in international bonds are in cross-default after it missed the coupon deadline earlier this month, has new $ 255 million worth of coupon payments due Tuesday. for its June 2023 and 2025 bonds. Bloomberg News said the maturity date passed without any sign of payment from the embattled real estate developer. Both payments have a grace period of 30 days. Company president Hui Ka Yan pledged in a meeting on Sunday (December 26) to hand over 39,000 property units in December, compared to less than 10,000 in each of the previous 3 months.
3.Evergrande NEV starts first mass production
China Evergrande New Energy Vehicle Group started its first mass production on Thursday, two sources with direct knowledge of the matter said. Mass production of its first Hengchi 5 sport utility vehicle at its Tianjin production facility was 12 days ahead of schedule, the people said, and the company plans to hold an official ceremony in the next two weeks. The company, one of the main units of the cash-strapped real estate developer China Evergrande Group, has been struggling to secure outside investment for its operations.
4.HNA Holdings: Use related parties to settle liabilities to resolve problems such as losses caused by undisclosed collaterals
On the night of December 30, Hainan Aviation Holdings Ltd. issued an announcement on the progress of self-censorship reporting and restructuring of listed corporate governance. According to the bulletin, prior to an examination of the offshore operations themselves, the company had been found to possess non-operating funds from shareholders and related parties, non-disclosure of collateral, assets of concern, etc. The bulletin also showed an undisclosed balance of $ 24,763 million in naval holdings, of which: One is the collateral whose liability amount has already been determined. Based on the amount of the claim confirmed by the court, and the amount of the guaranteed liability discharged by the creditor, approximately $ 14,422 million of the debt to which the guarantee refers, the actual liability of the company is 5,678 millions of dollars. The second is a guarantee that the amount of liability has not been determined at this time, and the amount of the company’s liability has not been determined for the remaining balance, which is approximately $ 10,341 million, for reasons such as the litigation, which has not yet been confirmed by a court decision.
5 Chinese Communist Huawei Says 2021 Revenue Down Nearly 30%
Chinese telecoms equipment giant Huawei Technologies Co Ltd, hit by US sanctions, expects 2021 revenue to have declined by nearly 30% and predicted challenges will continue into the new year. Revenue for the year is expected to be 634 billion yuan ($ 99.48 billion), Rotating Chairman Guo Ping said in a New Year’s letter to employees on Friday. This represents a 28.9% drop from 2020 revenue, which was 891.4 billion yuan. Guo said that next year “will come with its fair share of challenges.”
6.The CCP warns Walmart and Sam’s Club about Xinjiang products
China’s communist anti-corruption agency on Friday accused US retail giant Walmart Inc. and its chain Sam’s Club of “stupidity and myopia” after Chinese media reported that Sam’s Club had recalled products from Xinjiang. . Last week, Sam’s Club came under fire in communist China after multiple media outlets shared videos and screenshots on the Weibo social media platform that they claimed showed they had withdrawn from the online application of the store products from the distant Chinese region of Xinjiang. The dispute on social media erupted after US President Joe Biden signed a law on December 23 banning imports from Xinjiang over concerns about forced labor in that area. Walmart is the latest foreign company to be hit by Western pressure on Beijing’s treatment of Uighurs and other Muslim minorities in Xinjiang and the importance of communist China as a market and supply base.
7 Communist China outlines its vision to build four mega data centers
Communist China has approved plans to build four mega-clusters of data centers in the north and west of the country to meet the data needs of Beijing and major coastal centers, the country’s top state planner reported on Wednesday. . The clusters will be built in the northern region of Inner Mongolia, in the north-western region of Ningxia, in Gansu province and in the south-western province of Guizhou, the National Development and Reform Commission reported in four separate statements.
All four locations can leverage their energy and environmental benefits to establish low-carbon and green mega data centers, the state planner said. The move comes as energy-intensive data centers in eastern communist China have struggled to expand due to limits imposed by local governments on electricity consumption. Some cities in the northern and western regions of communist China, rich in renewable energy resources such as wind and solar power, have already built data centers to service the economically developed coastline.
8.Tencent, from communist China, takes a stake in British digital bank Monzo
Tencent has taken a small stake in Britain’s Monzo as part of a fundraiser, the digital bank said on Friday (December 31), just weeks after it reached a valuation of $ 4.5 billion. Monzo did not disclose details of Tencent’s stake, but Sky News previously reported on Friday that the Chinese firm was investing a minority of a $ 100 million capital injection. Founded in 2015, Monzo is a high-profile neobank with more than 5 million customers, but has struggled to make a profit, with annual losses that widened last year when it revealed that it was facing a possible civil and criminal investigation for money laundering. of money.
【Secret Translation Team】
Translation: The Thiaoouba Prophecy
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