China (economy & industry & policy)

  • 2021 Top 500 Chinese Enterprises: Realizing total operating income and net profit of 89.83 trillion yuan and 4.07 trillion yuan, respectively, an increase of 4.43% and 4.59% year-on-year. The R&D intensity was 1.77%, a record high. This year’s top 500 entry threshold is 39.2 billion, and the number of 100 billion club companies has increased to 222. It is expected that next year’s list of trillion-level companies may exceed 10 for the first time. During the same period, the operating income of the Fortune Global 500 fell by 4.81%.
  • China Cement: Lanxi cement companies have stopped production and power restrictions since 8 o’clock on September 26 for a total of 15 days. As of September 24, the average price of Zhejiang PO 42.5 bulk cement was 724.7 yuan/ton, which has exceeded 700 yuan/ton. The mark reached the highest value in the history of Zhejiang cement price statistics.
  • IResearch: The scale of China’s IT service market continues to increase, and it is expected to approach one trillion yuan by the end of 2021, with a growth rate of close to 13%. Among them, IT services represented by operation and maintenance and development have accounted for 57.8% of the market share of IT services and have contributed significantly to the growth of the IT service market.
  • Beijing Low Carbon Institute: Independently developed a new type of fast-charging lithium battery. The battery is currently being tested on two-wheel electric vehicles and can be charged within 5 minutes. In the future, this technology can also be used in new energy vehicles.
  • Recently, Jiangsu and other places have introduced electricity curtailment measures. The production of steel, nonferrous metals, chemical, textile and other industries has been affected to some extent, and production has been reduced or stopped.
  • China Fund News: Domestic commodities have risen sharply. The unified logic behind it is capacity constraints, and this logic has undergone multiple enhancements. Practitioners say that the coal, steel, and non-ferrous prices have lasted for a long time, but so far there is still no clear signal to indicate that the market has ended.
  • The international authoritative academic journal “Science” published the scientific research results of the Chinese Academy of Sciences. For the first time, Chinese scientists realized the use of carbon dioxide to synthesize starch artificially, and made a breakthrough in the international sense.
  • Huang Qifan: Common prosperity must be distributed three times, one focusing mainly on efficiency; the second time taking into account both efficiency and fairness; the third time relying on morality, not coercion. The goal of doubling 400 million middle-income people in 2035 may be achieved. In the future, the proportion of GDP in international trade may be reduced to about 25%. As the main body of the internal cycle, domestic consumption will gradually rise from 42% to 50% in order to achieve a higher level and more dynamic opening.
  • China will build a blockchain-based electronic delivery platform for imported containers. Recently, the Ministry of Transport issued the “Blockchain-based Electronic Container Delivery Platform Construction Guide for Imported Containers”. The guide proposes to clarify the data format and interaction requirements for the chain of container documents such as bills of lading and sea waybills, and promote block-based The electronic delivery of imported containers on the chain promotes the digital transformation of shipping.
  • Ren Hongbin, Vice Minister of the Ministry of Commerce: China’s small and medium foreign trade enterprises are under increasing operating pressure. There are two main difficulties. One is that the ocean freight rate remains high, and the other is that the prices of some raw materials are still high. The profits of small and medium-sized foreign trade companies are severely squeezed and face greater difficulties.

World

  • Bank of America Global Research Department: The tight supply chain in the United States may enter the worst stage at the end of this year, or it may exhaust commodity inventories. From rising labor and freight costs to port delays, shortages of containers, trucks, and various raw materials, retailers’ merchandise shelves are likely to be “empty” before the holiday at the end of the year.
  • The Turkish Central Bank unexpectedly cut interest rates by 100 basis points. The Turkish Central Bank unexpectedly cut interest rates by 100 basis points to 18% in recent days, ignoring high inflation and catering to the easing stimulus that President Taerdogan has been striving for. The Turkish lira exchange rate fell to near the lowest point in history. (Unconventional operation, not conducive to import.)
  • Hungary: Gazprom will sign a long-term contract with Hungary on September 27 for the supply of natural gas to Hungary.
  • The Russian economy has returned to its pre-epidemic level. From January to July this year, Russian industry grew by 4.4%, of which manufacturing grew by 5.6%. At the same time, it is pointed out that in the first 7 months, Russia’s GDP has reached the level before the new crown epidemic.
  • South Africa: Call for the allocation of 25% of Special Drawing Rights to Africa.

Industry

  • The chip shortage may reduce the production of car companies by 7.7 million vehicles.
  • According to a report by Harbin News Agency on September 24, the European Commission plans to unify the charging ports of mobile phones, tablets and headsets to USB-C. After the bill is passed, the industry will have two years to make adjustments.
  • Japanese manufacturing confidence fell to the lowest in the past five months. As the latest wave of epidemics put new pressure on the Japanese economy, Japanese manufacturer confidence deteriorated to a five-month low in September. Confidence among manufacturers has declined, but it is expected to improve in the next three months.
  • Statistics from the Korea Statistics Bureau show that the online shopping business in South Korea has developed rapidly in the past two years. In July this year, the online shopping transaction volume reached 16.19 trillion won (approximately 89.15 billion yuan), the highest record since the start of statistics in 2001, an increase from four years ago. That’s 105.1%.

Company

  • Huawei’s rotating chairman Xu Zhijun: Euler欧拉 and Harmony鸿蒙 are Huawei’s “soul casting” projects. Euler’s positioning is to target the national digital infrastructure operating system, aiming to build an open and diversified software ecosystem. Harmony is serving smart terminals, Internet of Things and industrial terminals. The number of Hongmeng 2.0 upgrade users has exceeded 120 million, with an average of over 1 million users upgrading to Hongmeng every day.
  • WBS(Wanhai Shipping) orders 48,000 TEU containers. A few days ago, due to the replacement of old and new and business needs, WBS ordered 30,000 TEU containers from China International Marine Containers (Group) Co., Ltd. and 18,000 TEU containers from Xiamen Taiping Container Manufacturing Co., Ltd. The total transaction amount is approximately US$150 million.
  • Tesla will launch its auto insurance business in Texas in October and enter the New York market next year.
  • Siemens’ third-quarter revenue increased significantly. Siemens announced its financial report that its revenue for the third fiscal quarter of 2021 will increase by 21% on a comparable basis, reaching 16.1 billion euros (approximately 18.9 billion U.S. dollars). New orders increased by 44% year-on-year on a comparable basis, reaching 20.5 billion euros.

Trade

  • Rising commodity prices in Indonesia boosted exports. According to recent news from the Indonesian National Bureau of Statistics, Indonesia’s exports in August reached USD 21.42 billion due to rising prices of global commodities such as palm oil and coal. Among them, China is the largest export market for non-oil and natural gas products.
  • The increase in global freight rates will continue until 2023. Recently, the Shanghai Export Container Freight Index has once again set a new record high. Citi believes that the long-term increase in ocean freight rates is caused by short supply, and it is expected that the freight rate growth will continue until 2023, and the combination of strong demand growth and high freight rates will continue. Promote the profitability of the port until 2022.
  • PTFE: India initiated the third anti-dumping sunset review investigation. Recently, the Indian Ministry of Commerce and Industry issued an announcement stating that the third anti-dumping sunset review investigation has been initiated against polytetrafluoroethylene originating in or imported from China. The Indian customs code of the product involved is 3904.6100.
  • Carbon steel butt welded pipe fittings: The United States made the final ruling of the fifth anti-dumping sunset review. Recently, the US Department of Commerce issued an announcement stating that it has made the fifth anti-dumping rapid sunset review final decision on carbon steel butt-welded pipe fittings imported from China, Taiwan, Brazil, Japan and Thailand. The U.S. coordinated tariff number of the products involved is 7307.93.30.