2/23/2021 Financial News: CCP State Fund Invests In BGI, Huawei’s Pricy New Phone

Image source: https://www.yicaiglobal.com/

1.Communist China state fund invests in gene firm BGI

The CCP government has made an investment in BGI Genomics Co, a listed CCP company that has supplied millions of CCP virus tests globally as the gene firm seeks to fund exponential growth driven by the pandemic. BGI Group, which runs a massive gene database in Communist China and has DNA sequencing contracts with health firms and universities worldwide, has in the past said it has no CCP government capital when responding to claims from U.S. security agencies that it is closely linked to the CCP government.

BGI Genomics, the company’s subsidiary listed on the Shenzhen stock exchange, raised the equivalent of just over $300 million in a private placement to investors including Communist China’s biggest state investment vehicle, the State Development and Investment Corp (SDIC), filings to the exchange on Feb. 1 show. SDIC is wholly owned by the CCP government, which appoints its board.

2.Huawei’s new phone costs as much as a used car

Struggling under U.S. sanctions, Huawei unveiled a folding smartphone with an 8-inch-wide screen Monday to show off its tech prowess. The Mate X2 features an inward-folding design, with its square camera module and the hole-punch display, does bear some resemblance to the Galaxy Fold series.

The Huawei Mate X2 has been announced in Communist China and has a steep starting price of ¥17,999 ($2,785), which is considerably more expensive than the $2,000 price tag of Samsung’s Galaxy Z Fold 2. It’s not known whether Huawei will introduce the phone to any markets outside Communist China, but given that it can’t make use of Google Mobile Services, Huawei would have a hard time convincing user to drop a thick wad of cash on it.

3.U.S. ban on Communist China’s Xinjiang cotton fractures fashion industry supply chains

On Jan. 13, thousands of companies worldwide are affected after the United States blacklisted 87 percent of Communist China’s cotton crop — one-fifth of the world’s supply — citing human rights violations against Muslim Uighurs in Communist China’s northwest Xinjiang region.

Last month, Chinese cotton yarn maker Huafu Fashion sent a warning to investors. “Multiple American brands have canceled orders,” Huafu said in a Shenzhen stock exchange filing, citing U.S. sanctions. Huafu — which said it lost at least $54.3 million last year vs. a net profit of $62.5 million in 2019 — is one of the few suppliers to publicly acknowledge the sanctions’ effects.

4.What happened to Kweichow Moutai leading the decline in liquor stocks

On February 22, liquor stocks fell again. The share price of Liquor’s leading company Kweichow Moutai fell below the 2,300 yuan mark to close at 2,288.02 yuan per share, a daily decline of 6.99%. It is worth noting that in the three trading days after the Spring Festival, Kweichow Moutai’s stock price fell by 11.59%, and the total market value fell below 3 trillion yuan to 2.87 trillion yuan.

Except for Kweichow Moutai, the share prices of other liquor companies have fallen, with a daily decline of more than 5%. As of press time, the CSI Liquor Index has fallen by 8.25%, which is also the largest single-day drop in the CSI Liquor Index into 2021.

5.Gree’s second-in-command, Huang Hui, resigns

On the evening of February 21, Gree Electric release announcement that the company’s board of directors received a written resignation report from Director and CEO Huang Hui. Huang Hui had been regarded as the “successor” of Dong Mingzhu, chairman and president of Gree Electric. This resignation may expand investment and public concerns about the future development of Gree Electric.

On February 22, Gree Electric’s share price closed down 4.18% to 58.48 yuan per share. The market value evaporated 15.34 billion yuan.

6.Copper Surges Above $9,000 

Copper rose above $9,000 a metric ton for the first time in nine years, taking another step closer to an all-time high set in 2011. Investors are piling into copper on a bet that demand will surge in the coming years as governments unleash unprecedented stimulus programs targeting renewable energy and electric-vehicle infrastructure, which will require huge volumes of the raw material.

7.Argentine barley exports to Communist China smash records

Argentina’s barley exports to Communist China are set to soar to a record 1 million tones in 2021, industry sources and sales data show, as CCP looks beyond its traditional top supplier Australia amid a lengthy diplomatic standoff between the two countries. Export declarations, filed to Argentina’s ministry of agriculture, show that already 1.1 million tons of barley have been sold year to date.

Communist China is importing huge volumes of grains to feed a pig herd that it is rebuilding after an African Swine Fever epidemic led to the culling of hundreds of millions of hogs. It is also looking to plug a domestic corn shortfall with other grains.

By 【Financial Team – Tracy】

News Collection: Wendy 、Kate

Proofreading: 小蚂蚁在行动

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