Category: Bond market

Is the epidemic changing the world? The richest man in Japan changed ownership, the boss of Uniqlo was squeezed to the top of the list, and the electronic sensor manufacturer reached the top. What is sacred?

Spark Global Limited reports:

The richest man in Japan has changed!

Recently, Bloomberg’s latest index shows that Takemitsu Takizaki, the founder of Japanese electronic sensor manufacturer Keyence, surpassed UNIQLO boss Yanai Masa, and was elected as Japan’s latest richest man.

The latest data shows that KEYENCE’s stock price has approximately doubled from the beginning of the year. The latest market value is about 170 billion U.S. dollars. It has become Japan’s second-largest listed company after Toyota. This has also made Takizaki’s worth soaring. To about 38.2 billion U.S. dollars.

And the “fashion empire” suffered a big blow during the new crown epidemic, Yanai Masa, now has a net asset value of 36.5 billion U.S. dollars, and his wealth has shrunk by nearly one-fifth.

Factory automation industrialists have squeezed the retail giants from the richest man. This reflects the impact of the epidemic and changes in the new pattern of entrepreneurs’ wealth management. Recently, the weighting rules of the Japanese blue-chip stock index, the Nikkei 225 Index, have also been adjusted to include Keyence, an automation giant.

“This situation may continue for some time.” Mitsushige Akino, chief fund manager of Ichiyoshi Asset Management Co. in Tokyo, said that the most recent factor is that Keyence is included in the Nikkei 225 Index. .

Japan’s richest man changes ownership

Under the new crown epidemic, the Uniqlo “fashion empire” created by Yanai Masao has been hit hard, and the share price of Keyence, the manufacturing company of Takemitsu Takizaki, has soared nearly 100% since the beginning of last year. As a result, Takizaki’s value has also risen steadily. high.

Bloomberg’s recent update of the Billionaire Index shows that Keyence’s founder, Takemitsu Takizaki, has become the new generation of Japan’s richest man and ranks ninth in Asia’s richest list. The index shows that Takizaki’s finances have increased to 38.2 billion U.S. dollars, surpassing Uniqlo tycoon Yanai Masa, who has “evaporated” 9.7 billion U.S. dollars so far this year, with a net worth of 35.5 billion U.S. dollars, ranking second in Japan.

According to Bloomberg News, in 1974, Takemitsu Takizaki founded his own company Keyence in Osaka, but he never went to college. Today, the 76-year-old Takizaki Takemitsu has always maintained a relatively low-key style of doing things.

One of the successes of Takehikari Takizaki’s venture is to help invent precision sensors for the assembly line. For example, Toyota produces cars and Toshiba produces chips. These products have been used. In addition to this category of sensors, KEYENCE also produces barcode scanners and microscopes. “Takizaki pays more attention to profit margins rather than sales, so the company is also showing a steady state of development.” A Japanese market participant said.

Chongqing Department Store: Accumulatively repurchased about 8.99 million shares

Every AI newsletter, Chongqing Department Store (SH 600729, closing price: 27.86 yuan) issued an announcement on the evening of June 25, stating that as of June 24, 2021, the company had repurchased approximately 8.99 million shares through centralized bidding transactions. It accounts for approximately 2.21% of the company’s total share capital, which is an increase of 0.5627% compared to the number disclosed last time. The highest purchase price is 29.25 yuan per share and the lowest price is 25.79 yuan per share. The total amount paid is about 250 million yuan. .

The 2020 annual report shows that the main business of Chongqing Department Store is supermarket format, auto trade format, department store format, electrical appliance format, and others, accounting for 40.59%, 30.86%, 10.48%, 10.05%, 1.28% of revenue, respectively.

The chairman of Chongqing Department Store is Zhang Wenzhong, male, PhD. The general manager of Chongqing Department Store is He Qian, male, 54 years old, Chinese nationality, doctoral degree, professor, former deputy chief of the secretarial department of Chongqing University, assistant to the director of Chongqing University, director of Chongqing University Science and Technology Investment Company, Chongqing University Economics and Business Dean of the Marketing Department of the School of Management.

Daoda (1997) “Individual Stock Trend” reminder:

1. In the past 30 days, Chongqing Department Store’s northbound capital holdings decreased by 173,300 shares, and the proportion of shares outstanding decreased by 0.04%;

2. No organization has conducted surveys on Chongqing Department Store in the past 30 days. For more key information, please search for “Dao Dahao”.


Every Jing Toutiao (nbdtoutiao)-selling a few pieces of curtain cloth will also lead to a copyright lawsuit! Small merchants call wronged: Why not sue the manufacturer, is “fishing rights protection” legal?

Hutchison Pharma responds to restarting Hong Kong stock IPO

Hutchison Medicine will restart the Hong Kong stock IPO plan?

Silicon Valley's Ultimate

On March 17, Hutchison Pharmaceuticals (Nasdaq/AIM: HCM) will respond to the above news in the 2020 global performance and latest business progress online communication, saying that Hutchison Pharmaceuticals continues to pay attention to market conditions in order to seek re-listing opportunities, such as Hong Kong And other securities markets such as Shanghai.

According to official website information, Hutchison Medicine is an innovative biopharmaceutical company dedicated to the development of targeted therapies and immunotherapies for the treatment of cancer and immune diseases. It has previously been listed on the Nasdaq and the London Stock Exchange. In 2019, Hutchison Medicine had planned to conduct an IPO in Hong Kong in June of that year, raising about 500 million U.S. dollars, and then suspending the process. The specific reason has not been announced.

At the press conference, Christian Hogg, CEO of Hutchison Medicine, said that in the past 12 to 18 months, Hutchison Medicine has seen great development in Shanghai’s sci-tech innovation board and is very interested. The stock exchanges in Shanghai and Hong Kong both provide financing opportunities. Biotechnology companies such as Hutchison Medicine can raise funds for further development. Hutchison Medicine will continue to pay attention to the development of the exchange.

Zheng Zefeng, chief financial officer of Hutchison Medicine, emphasized that Hutchison Medicine’s next listing plan is still in the discussion stage and there is no specific plan. Hutchison Medicine is always looking for the best time.

At this online communication meeting, the senior management of Hutchison Pharmaceuticals also introduced the latest financial results for 2020.

Financial data shows that Hutchison Pharma’s 2020 annual revenue was US$228 million, an increase of 10.13% year-on-year, of which the combined revenue of oncology and immunization business was US$30.2 million, an increase of US$3.4 million from the US$26.8 million in 2019. The production income, promotion and marketing service income and royalty income of the national class 1 targeted anti-cancer drug Fruquintinib, which is used to treat advanced colorectal cancer, totaled 20 million U.S. dollars.

Hutchison Pharmaceuticals has a net loss of US$125.7 million in 2020, which is an increase from US$106 million in 2019. This is related to its increased R&D investment. According to the 2020 financial report, Hutchison Pharmaceutical’s R&D expenditures have increased to 174.8 million U.S. dollars, mainly for the expansion of ten innovative drug candidates, six of which are being developed globally.

In the product pipeline of Hutchison Medicine, in addition to Fruquintinib and Sofatinib that are already on the market, Servotinib for the treatment of non-small cell lung cancer has also submitted a new drug listing application in China, and the review is currently in progress.

In addition to self-developed products, Hutchison Medicine is also exploring the combination therapy of Fruquintinib and Sofatinib with the PD-(L)1 drugs of Junshi Biologics, BeiGene and other companies.

Su Weiguo, chief scientific officer of Hutchison Medicine, told The Paper ( reporter that Hutchison Medicine has basically established cooperative relationships with most of the PD-(L)1 drugs that have been approved for marketing in China. There are other differentiated PD-(L)1 drugs that have been approved for special effects on certain tumors. In the future, Hutchison Medicine will continue to explore combined treatments with other PD-(L)1 drugs.

Su Weiguo further added that different PD-(L)1 have great differences in efficacy and side effects, and they cannot be simply interchanged. The combined PD-(L)1 therapy that has entered the registration study is currently in the dose They are very fixed in terms of medication and medication methods. I hope that the registration research will achieve better results, and eventually be listed, or even enter the medical insurance. This will not only promote the market and sales of Hutchison Medicine’s own products, but also bring benefits to more patients.

Silicon Valley’s Ultimate “House Robbery”

The people of Silicon Valley are climbing a mountain, an invisible mountain. The name of the mountain is Silicon Valley Housing Prices.

Silicon Valley's Ultimate

“I finally bought a house!” Litchi couldn’t help but “scream up to the sky” in the circle of friends.

In the recent wave of Silicon Valley housing looting, Litchi can be said to have been defeated repeatedly. Every time he watched his favorite house being bought by others at high prices.

After carefully adding 70,000, 100,000, and 130,000…every time she missed the house, this time, she decided to increase the price by 280,000 dollars in one go, and she was about to take down this detached house in San Mateo. . The house was finally robbed, and the wallets of the young couple were quite empty.

Sitting on the floor of his new home, Lychee felt a sense of emptiness after the war. When she bought a house in Silicon Valley for the first time, she never thought that she would join a group of people holding up cash to fight for the house.

“I’ve grabbed it anyway, and many of my friends around me are still running around to check out the house every day, and I can’t buy it even if I keep increasing the price.” Litchi told the Silicon Stars.

The lychees who got the house at the beginning of this year belonged to those who ended the battle early. As she said, many people who buy houses in the Bay Area are still exhausted, looking at houses, bidding, writing offers, and being rejected again and again. Those involved in this house robbing battle are exhausted physically and mentally.

In the first half of 2020, many people thought that the previous housing prices in Silicon Valley were exaggerated, and technology companies are also leaving Silicon Valley one after another. Housing prices may fall by a wave; however, in the past six months or so, housing prices in many parts of the Bay Area have been reduced. The price has soared by 10%-20%, and there have also been many legendary robbing stories.

And this, according to the prediction of real estate dealer Zillow, is just the beginning. The story of skyrocketing housing prices in the Bay Area, which has appeared several times in the past ten years, has once again been staged.

|The comeback of “house grabs”

Last year, under the impact of the epidemic, the housing market in the Bay Area also entered a short cooling-off period. In the first two quarters of 2020, housing prices in Silicon Valley generally fell, and even dropped to the lowest point in recent years in May and June.

But this situation did not last long. Starting from the third quarter, except for downtown San Francisco and surrounding areas, housing prices in other parts of the Bay Area have gradually recovered. Especially since the end of the fourth quarter, there has been a new wave of housing looting.

Even in the winter when the number of new crown cases has surged and most people are still at home, it has not been able to stop the enthusiasm of people in the Bay Area to buy houses.

Housing prices have risen accordingly, and houses with similar locations and conditions often happen at a price per month.

Awei, who works as a real estate agent in Silicon Valley, told the Silicon Stars that she only helped a client place an offer for a detached house near Alameda in November last year. At that time, it was sold for 1.42 million. The result was less than a month, the same street, the same apartment. The house sold for 1.58 million, and the transaction price at the beginning of February this year has reached 1.72 million.

“It’s really an exaggeration. Almost all of the rooms we looked at before have more than 20 offers. My agent also said that she helped clients place more than 60 offers in a room two days ago.” Litchi is right. The Silicon Star sighed.

This is the first time for a young couple in Litchi to buy a house in Silicon Valley. They have no actual combat experience. They once naively thought that adding about 100,000 to the seller’s asking price would be very competitive.

The first house they saw was in the Oakland Hills. Lychee especially liked it. The house was close to the company of the young couple. The community environment was also very good. The most important thing was that through the large French windows in the living room, one could see the distant view at a glance. The Golden Gate Bridge, Bay Bridge, and the towering Salesforce Tower in downtown San Francisco.

Picture: The view from the favorite Auckland house in Lychee
“We went to see the house three times before and after. The more we looked at it, the more we liked it. Later we started discussing how to decorate it after we moved in. We were confident that we increased the price by 150,000, but we did not expect that the price we gave would be the bottom. Knowing that I didn’t buy it, I cried.”

Litchi said that she completely underestimated the enthusiasm of other buyers, and every time she thinks about it later, she regrets that the bid at that time was too conservative.

“In fact, we can also afford the final transaction price of the house, which is very regrettable. Therefore, when we place another offer, we will let go and increase the price, usually with an increase of 200,000. And we don’t dare to go all the time. I’m looking at the house, I’m afraid it’s the same as last time, I like it but can’t buy it.”

However, even if the price is increased by more than 200,000 yuan, it is not possible to buy it if you want to buy it. In the two subsequent bids, they were defeated in the fierce competition of more than 20 offers.

At that time, the Christmas holiday was about to begin, so they decided to take a rest, review the experience and lessons, and wait for the start of 2021 to fight again.

After missing the house of their choice, Litchi learned his lesson, and no longer had a chance, thinking that he could pick up the leak, but started to increase the price when he saw the one he liked. Under this strategy, they defeated more than 10 offer, bought a house you like.

The story of lychee is a microcosm of recent Silicon Valley homebuyers. Everyone is throwing money crazy for the house they like, and an increase of RMB 3 to 400,000 is an unusual case. “I feel that the overall buying sentiment in the Bay Area is going up, but in some places it has risen so much that we feel it is too exaggerated.” Awei said.

“No one will be so crazy as soon as they come up, but after your rationality makes you miss it a few times, you realize that only if you try your best to reach your price limit every time, you have a little hope.” Friends who are also struggling to buy a house recently sighed on social media.

| Fight the bottom line, fight for cash, fight for cruelty

People in this round of house robbing have gradually reached a consensus: Money is not enough.

Who has gone through so many unicorn IPOs in 2020-2021 and the stock prices of so many technology companies soaring in Silicon Valley, who can’t have any money in their hands? In this fierce competition, whoever has low requirements for a house, who has more cash, and who is willing to pay a high price, is likely to win the battle.

Not long ago, the transaction price of the “small black house in the Bay Area”, which is highly sought after by home buyers, has once again refreshed people’s perceptions.

This house in Sunnyvale, built in 1930 and measuring only 667 thousand feet, was sold for a sky-high price of 1.3 million US dollars on February 16.

Picture cut from Redfin website
Let’s take a look at the interior of this house. How about this broken floor and rusty furniture? I’ll give you $1.3 million. Would you like to buy it?

Picture cut from Redfin
What’s even more amazing is that the asking price of this house is only 800,000 US dollars, that is to say, the buyer has added more than 60%-500,000 US dollars to grab this house from a group of competitors. .

But even the location of this house is not very good. A familiar friend told the Silicon Stars that the street where it is located can only be considered a middle-lower in Sunnyvale. However, the big advantage of this house is that it has a courtyard of 7,660 thousand feet. Therefore, it is not bad to demolish the small black house and build a new one. However, considering the expensive labor costs in the Bay Area, rebuilding also requires a total of US$400,000 or US$500,000, which makes the total price of the house nearly US$2 million.

With this momentum, the sellers laughed at the bidding, and the buyers had to carry out the ultimate “involution” competition.

A friend of the Silicon Stars revealed that some people sold their two small companies not long ago, thinking about an increase of US$150,000 to buy a detached house in Burlingame, South Bay. Unexpectedly, the final transaction price of the house was completely higher than the asking price. 900,000 U.S. dollars. In Fremont, a 26-year-old guy only became the winner of dozens of offers with an increase of $600,000 and all cash.

Townhouse, which was not so popular before, has also risen recently. In the first half of last year, you could still buy a relatively new townhouse in South Bay Fremont for RMB 7 to 800,000. Now, all the new townhouse properties opened in Fremont are more than RMB 1 million, and they still have single parking spaces.

“I just bought a Townhouse for a client in the Vietnam area of ​​San Jose, and the final transaction price was just over $1 million. I managed to grab it. When the house was put up last year, it was 800,000 that nobody would look at.” Awei said.

In fact, in areas like Sunnyvale and Santa Clara that are already popular in Silicon Valley, houses are sought after and housing prices are rising within an understandable range. But recently, in areas that are more remote from the core of Silicon Valley and more like the “rural” that everyone calls, the skyrocketing housing prices are shocking.

“You know Tracy Valley? It’s more east than the East Bay Outlets. It takes 2 hours to drive from San Francisco during peak hours. Who would think about it before? But recently it’s been a mess.” Awei Say.

“We drove to see the house, it was really a veritable rural area, along the way with cattle farms, orchards, windmills and traffic jams, the air was filled with the breath of grass and pastures. Because the owner was old, he was on the market for five days. Among them, only two inspections were opened in the afternoon. Who would expect to receive 16 buyer offers immediately.”

Figure Location of Tracy valley
Although Awei felt that he should make a formal bid after the inspection, there were too many buyers to have enough time to make a detailed decision, so he immediately placed a clean offer of US$1 million for the client.

What is Clean offer? That is, if the house cannot be inspected, a bid without regret is given. For example, if the loan is not approved or there are special circumstances that need to be changed later, the buyer’s previous deposit will not be refunded.

“The price of that community was 60,000 to 700,000 a few months ago, and the transaction price was only 800,000 a few weeks ago. We already felt that we were taken advantage of by giving a clean offer of 1 million at that time. I didn’t expect that the price was not exciting at all. After a little splash, I later learned that not only the price should exceed 1 million yuan, but also a one-time payment in cash for hope.”

Awei said that many houses in large rural areas around Silicon Valley have now become “sweet and pastry”, and house buyers have swarmed in and sold the houses of hundreds of thousands in the past to more than one million.

| The 2021 rally continues, and the city center turns into a depression of value?

The real estate rush that started at the end of last year did not seem to stop this year. The entire Bay Area real estate market is still under a “seller-led” situation.

The following is a set of real estate dealer Zillow recently released a set of housing price statistics and forecast data in the Silicon Valley area:

“House prices in the San Francisco Bay Area have risen by an average of 5.8% in the past year, and it is expected that house prices will continue to rise by an average of 9.3% in the next 12 months;

House prices in Alameda have risen by 7.8% in the past year and are expected to continue to rise by 10.5% in the next 12 months;

House prices in Santa Clara have risen by 14.4% in the past year and are expected to continue to rise by 11.9% in the next 12 months;

House prices in San Mateo have risen by 2.1% in the past year and are expected to continue to rise by 9.5% in the next 12 months;

House prices in Napa have risen by 7% in the past year and are expected to continue to rise by 9.5% in the next 12 months…”

In short, although last year’s epidemic was so severe and the real estate market suffered a severe setback in the first half of the year, housing prices in most parts of the Bay Area will continue to rise in 2020, and the increase in 2021 may be even greater than that in 2020. Big.

But it should be noted that not every place in Silicon Valley is rising. For example, housing prices in downtown San Francisco and surrounding areas have continued to fall recently, and have even fallen back to their lows in recent years.

Housing price trends in major areas of Silicon Valley, the picture comes from Zillow
“The price of the Condo bought by my relative in San Francisco dropped from 1.2 million to 950,000, and the rent fell from 4,500 US dollars a month to 3,200 US dollars. This wave was mainly affected by telecommuting after the epidemic. Many used to live in the city center and Everyone from the surrounding area went to the surrounding area to buy a house.” Awei told the Silicon Stars.

As a result of the COVID-19 pandemic, home prices and rents in downtown San Francisco and nearby areas have begun to plummet. According to Realtor’s statistics, as of the end of 2020, rents in San Francisco have fallen by more than 20% on average, while the prices of Condo/Townhouse houses are average A drop of more than 10%.

“Although many people don’t put distance as the main consideration and go to the suburbs to buy houses, I personally feel that as the epidemic is brought under control and everyone’s lives slowly return to normal, the housing prices in San Francisco will rise again. The fire is like that, it’s time to buy the bottom in the urban area.”

Awei believes that telecommuting may exist for a long time in the future, but in the long run, compared to Tracy Farm, where the weather is hot and dry, San Francisco, where life is convenient and the scenery is pleasant, will be more “sweet” in the long run.

Since the third quarter of last year, the housing sales rate in San Francisco and nearby areas has indeed begun to rebound, showing a trend of increasing day by day. Many people have begun to take advantage of low prices to start with much lower prices.

In fact, buying a house is the same as buying stocks. Sometimes you think you are buying the bottom, but you may be on the hillside. Sometimes you think you are buying on the top of the hill. Maybe you are standing on the hillside.

In the past ten years, Silicon Valley’s housing prices have repeatedly experienced “big storms”. Under the subprime mortgage crisis in 2008, the situation of Silicon Valley housing prices being cut in half and mourning may still be vivid for many people, but those who had the courage to take over are now also Relying on a few suites in Silicon Valley to live a carefree life.

The economy has cycles, and so does the housing market. And whether this new wave of “house grabbing fever” is being staged, is it a short-lived boom or the prelude to a real estate bull market? Only time can give the answer.

But in the face of fanaticism, being rational and full of vigilance is the self-cultivation of an old Silicon Valley person.

Highlights are difficult to reproduce at all times!

On March 10, Zhengshang Industrial issued a profit warning announcement, and it is expected that the comprehensive net profit for the whole year of 2020 will fall by 35%-45% year-on-year. In 2019, the comprehensive net profit of Zhengshang Industrial was 1.152 billion yuan. This means that the comprehensive net profit of Zhengshang Industry in 2020 will be 634 million to 749 million.

Source: Zhengshang Industrial Announcement
Source: Zhengshang Industrial Announcement

Regarding the decline in net profit in 2020, Zhengshang Industrial stated that it was mainly due to the impact of the new crown pneumonia epidemic, which has blocked the development progress of some property projects and delayed the delivery of residential properties. In addition, due to the impact of real estate control policies (including housing purchase restrictions and price restrictions), the revenue of some property delivery in 2020 will decrease and gross profit will be pressured. The selling price of property projects is lower than expected. Provision for impairment.

Public information shows that Zhengshang Industrial was established in 1965 and listed on the Hong Kong Stock Exchange in 1972. It is a real estate company under Zhengshang Group, a leading real estate company in Henan. It is mainly engaged in property development, property investment and management, and hotel business.

It is worth noting that in recent years, Zhengshang Industrial’s profitability has been mediocre, and only achieved a substantial increase in 2019.

According to financial report data, in 2017 and 2018, Zhengshang Industrial’s revenue was 1.1 billion yuan and 601 million yuan, and net profits were 132 million yuan and 30 million yuan respectively. By 2019, revenue increased by 1378% year-on-year to 88.87. 100 million yuan, net profit increased by 3742% to 1.152 billion yuan.

However, in just one year, the performance of Zhengshang Industry has fallen again, and its profitability is worrying.

In addition, Zhengshang Industry stated in the announcement that in the face of the economic environment challenge under the impact of the new crown pneumonia epidemic, fierce competition and the continuous development of national control measures, the board of directors is still optimistic about the company’s long-term development.

Looking for partners and funds

Young entrepreneurs in seed and start-up period will face various growth puzzles, financial constraints, or difficult to find a good “mother-in-law” for good projects In order to solve the urgent problems of young people, the “you innovation force” Youth Innovation Service series activities were launched in Chengdu.

Looking for partners and funds
Today (March 12), Red Star News reporter learned from the Chengdu Municipal Committee of the Communist Youth League that in order to promote the implementation of Youth Innovation and entrepreneurship employment dream building project, the CPC Municipal Committee organized and carried out series of Youth Innovation service activities, including “venture capital performing arts hall”, “tutor open class”, “project docking Salon”, and provided financial services, mentors guidance and resource docking for Youth Innovation and entrepreneurship in Chengdu.
Joint Salon of cultural IP Entrepreneurship Project
Among them, the “venture capital studio” is jointly organized with financial venture capital institutions such as honeycomb gold clothing and Guanggu coffee to form a youth entrepreneurship financial support group, focusing on the investment and financing needs of young entrepreneurs in key industries of “5+5+1” in Chengdu, and conducting financial roadshow activities every week to invest in high-quality Youth Innovation and entrepreneurship projects; for young entrepreneurs with capital needs in seed and initial stage, the company will promote the city’s innovation and entrepreneurship projects “Free financing + interest free loan + angel investment + credit loan” financial policy support system, customized financial solutions.
“Tutor open course” is organized by the CPC Municipal Committee in conjunction with the entrepreneurship training camp of Peking University and other domestic well-known entrepreneurship counseling institutions to organize famous entrepreneurs to conduct online live teaching for Chengdu entrepreneurship youth, and provide online guidance courses for public welfare innovation and entrepreneurship, and help young entrepreneurs in seed and start-up period to improve their management and management level.
“Project docking Salon” focuses on the development needs of all kinds of young college students’ entrepreneurship Park and start-up enterprises in the nursery, organizes the industry tycoons to visit, inspect and negotiate the green and creative projects on site, and make it possible to open up the information resources of upstream and downstream enterprises, such as technology, business opportunities, product services and other information resources.
Interested young entrepreneurs can sign up for the “one-stop” service platform of Chengdu Youth Innovation and entrepreneurship through the WeChat official account of “green poly city”.
Red Star News reporter yandantu

Insight into the strong American stimulus

U.S. President Biden signed the US$1.9 trillion new crown rescue and rescue bill-the “American Rescue Plan” (American Rescue Plan), marking the official entry into force of the bill. The bill is the first major legislative project in the Biden administration, and it also marks the completion of Biden’s previous commitment to voters-to issue a $1,400 check directly to eligible Americans within 100 days of taking office, and it also includes the extension of unemployment. Insurance, funding to state and local governments, and improving vaccination and testing capabilities.

Insight into the strong American stimulus

The rounds of fiscal aid expenditures have caused the US government debt to explode. The U.S. federal fiscal deficit has risen from 585 billion U.S. dollars in 2016 to 984 billion U.S. dollars in 2019. In 2020, with hundreds of millions of dollars in financial aid expenditures, the U.S. federal debt hit a record high. According to data from the U.S. Department of the Treasury, federal government expenditures in fiscal year 2020 increased by 47.3% to US$6.55 trillion. The fiscal deficit has more than tripled to more than US$3.1 trillion. The deficit as a percentage of GDP has jumped to 15.2%, which is the first consecutive year. The increase in five years is the highest level since 1945. By the end of November 2020, the total federal debt of the United States has reached 27.4 trillion US dollars, accounting for 134% of GDP.

And the current rise in US federal debt is far from end.

Under the raging epidemic, tens of millions of Americans are facing a food crisis and unable to pay their rents and become homeless. Since June 2020, about 8 million Americans have fallen below the poverty line. According to data from the US Department of Labor, there are still more than 10 million unemployed people in the United States.

Is 1.9 trillion dollars too much?

Former U.S. Treasury Secretary Summers published in the “Washington Post” on February 5 this year, “Biden’s stimulus plan is courageous, but also risky”, which triggered a lot of controversy within the Democratic Party. Summers served as Secretary of the Treasury of the Bill Clinton Administration and Senior Economic Advisor to Obama.

Summers said: “I also agree that in terms of fiscal stimulus, doing too little is riskier than doing too much.” At the same time, he also pointed to the serious problems that the 1.9 trillion stimulus plan may cause: First, It’s inflation. Although there is a lot of uncertainty, the scale of the stimulus package is so large that it is close to the size of the Second World War. It is likely to trigger inflationary pressures that this generation has never seen before, and have certain consequences for the value of the dollar and financial stability. Second, how to ensure that stimulus policies will not squeeze critical public investment space in the future. Long before the epidemic, the US economy faced many fundamental problems, including economic inequality, slow growth, and insufficient investment in all public sectors such as infrastructure, preschool education, and new energy.

In short, Summers emphasized the potential cost of “doing more”: economically, there is a risk of a sharp increase in inflation and a stock market bubble; politically, this may reduce Congress’s future fiscal actions to deal with infrastructure such as infrastructure Interest in long-term priorities such as expenditure and climate change.

In this regard, US Treasury Secretary Yellen admitted in an interview with CNN’s “State of the Union” TV program that too fast inflation is a risk that needs to be considered. But decision makers should have the tools to deal with this danger.

“As the Minister of Finance, I must worry about all the risks facing the economy,” Yellen said. “The most important risk is that we make workers and communities fear the pandemic and the resulting economic losses. We have not taken enough Measures to solve the pandemic and public health issues, we did not let our children go back to school.”

Martin Wolf, chief economic commentator of the British “Financial Times”, said in an interview with The Paper that although the official did not recognize it, when we discovered that the government has no upper limit on the deficit, it is in fact in the modern monetary theory (MMT). world. And it is difficult for us to confirm this in advance, because people’s behavior can be changed. But at least for the time being, central banks have not yet acknowledged it.

Many experts in the global financial and economic circles have confirmed to The Paper the inflation risk caused by an uncapped deficit. Wolff also pointed out that this would put the reliability of Western currencies, including the US dollar, at risk.

In Wolfe’s eyes, Modern Monetary Theory (MMT) is a relatively extreme version of Keynesianism-the prescription is to continue to expand the fiscal deficit, keep interest rates at a low level, and monetize debt by issuing as much currency as possible To ensure that the government obtains financing. Before the economic dilemma caused by the epidemic, MMT was on the verge of macroeconomics for a long time.

The current U.S. Treasury Secretary Yellen is the “successor” of Keynesianism. Yellen’s doctoral dissertation tutor James Tobin is a leading figure in the Keynesian school, and her own academic research is obviously biased towards the Keynesian school, focusing on unemployment and salary issues.

Barry Eichengreen, a professor of political economy at the University of California, Berkeley, is one of the most influential economists in the international financial and monetary system and financial crisis theory. He said in a written interview with The Paper, There is undoubtedly the “blood” of Keynesianism flowing in Yellen’s education. But he denied the claim that Modern Monetary Theory (MMT) has dominated the developed countries. He believes that a more accurate statement should be that many mature market governments have taken unprecedented relief and stimulus measures in response to the new crown epidemic. And they are also aware that these measures have limits, and they cannot last forever like this. The discussion about where this boundary is and how long these measures should last is very valuable.

Eichengreen further emphasized that the monetary policy of developed countries has reached the limit-not only interest rates are close to or below zero, but the balance sheet of the central bank has also continued to grow-all of which mean that the current overcapacity and unemployment problems must pass fiscal Policy to resolve. However, this is just the current situation and does not mean that it will be the same in the future. At some point in the future, the budget deficit must be reduced again, and monetary policy will come into play again.

Will “Biden Economics” bring growth?

Before he took office, Biden proposed that in addition to a stimulus plan totaling US$1.9 trillion, a follow-up plan for infrastructure construction of more than US$3 trillion will be launched. It can be seen that the huge deficit and high debt of the US government are still on the way.

At a meeting on infrastructure investment in March, Biden also tried to use China’s great achievements in the field of infrastructure construction to emphasize the urgency of the United States to advance a package of infrastructure investment plans.

According to the “Wall Street Journal” report on March 11, Biden and US Vice President Harris met with four senators (bipartisan) in the Oval Office of the White House on the same day, and actively “selled” their investment plans for infrastructure construction. . Biden said that the two parties did not have enough communication on infrastructure issues in the past, and he hopes to reach “some consensus” with Congress on this now. Biden specifically mentioned China to prove the urgency of the United States to strengthen its infrastructure. Biden said that China has made rapid progress in railway and electric vehicle technology.

In the political platforms of Biden and Vice President Harris, it is clearly stated that investments in modern and sustainable infrastructure and sustainable growth engines are required, including road and bridge construction, construction of energy networks and schools, general broadband and so on. Biden also plans to face the climate crisis and build a clean energy economy.

Due to similar difficulties and political ambitions, some commentators compared “Biden’s Economics” with “Roosevelt’s New Deal.” The difference between the two is that the scale of the deficit during the Roosevelt era is not the same as it is today.

In Eichengreen’s view, the comparison between the two is that they both have the ambition to spend on some innovative projects. For example, it is proposed in the Biden government’s plan to provide children with education subsidies and provide vocational training for workers.

Wolfe also acknowledged that Roosevelt was still trying to maintain financial balance. However, what is certain is that before the same huge crisis, the Biden administration hopes to be as radical as Roosevelt (left) and can bring changes to the United States.

“For Biden and his team, Roosevelt is their hero. Biden clearly regarded Roosevelt as a role model.” Wolff said.

Under the epidemic, the new economy has also made considerable progress.

In an interview with The Paper, Chen Zhiwu, Chair Professor of the Fung Foundation of the University of Hong Kong and Director of the Asia Global Institute, and former tenured professor of finance at Yale University, said in an interview with The Paper that everyone has to be locked up at home because of the new crown epidemic. Many people who are unwilling to try new technologies have no choice but to bite the bullet to learn, understand and adapt to these new technologies. In this sense, especially for the American society, the adoption and acceptance of new technologies and big data by the whole society has indeed been unexpectedly improved, thus providing greater opportunities for many high-tech industries and enterprises. Development momentum. Promote further sublimation innovation based on this mass base, all of which will play a role in boosting productivity in the next 10 years.

Is the “Biden Economics” of debt inflation sustainable?

Can the United States, with its huge debts, bear the financial burden of “Biden Economics”?

Yellen emphasized that “in a historically low interest rate environment, the United States still has fiscal surplus.”

In 2020, the interest payment burden on U.S. Treasury bonds is 338 billion U.S. dollars, but the long-term interest rate once dropped to 0.5%. The U.S. Congressional Budget Office (CBO) estimates that government interest expenditures from 2021 to 2025 will be controlled at US$270 billion to US$290 billion per year.

As the foreign exchange reserves of emerging market countries and the safe assets of financial institutions, U.S. debt has long-term and stable demand, resulting in long-term interest rates at a relatively low level. According to the forecast of the international rating agency Moody’s, driven by “Biden Economics”, long-term interest rates will rise to 2.1% by 2022 and 4.1% in 2025. The new crown epidemic crisis and “Biden economics” will break this delicate market balance, or may subvert the low interest rate environment in which huge debts can be sustained. Chen Zhiwu looked at the entire US power operation model, ideology, and the existing world monetary system. He believed that the US’s high debt and high deficit are still sustainable.

Chen Zhiwu pointed out that historically, the fiscal surplus of the US government is only an example, and the fiscal deficit is the norm. And fundamentally, the US government has some fiscal deficits and debts in a healthy state, and it is difficult to change the US development model that relies on deficits and national debt. In countries without debts and fiscal deficits, their governments are often prone to lose control of their power. For a society like the United States, there are fiscal deficits and national debts, which can in turn impose some constraints on the continuous expansion of government power under normal circumstances. The U.S. government runs a fiscal deficit every year, and the president cannot use government money to buy and please supporters. It is predicted that neither the US government’s fiscal deficit nor its proactive fiscal policy will substantially converge in the next four years.

But he also inferred from this that this may create a situation in the future—a few years later, American society’s thoughts will turn around—when the Biden administration pushes the US fiscal deficit and national debt to a new high, it may turn to the United States instead. A few years later, anti-national debt and anti-deficit thoughts will appear in society to create an environment.

Property management industry enters the era of merger?

The property company merger and acquisition drama continued to be on.
On March 4, Yida China (03639) issued a notice saying that it had sold all equity of Yida service in its property sector to Longhu property, with a transaction cost of 1.273 billion yuan.
After the transaction is completed, BDC will no longer hold any rights and interests of BDC services, and BDC services will no longer be a subsidiary of Yida China and will be separated from the comprehensive financial statements.
Source: Yida China announcement

Property management industry enters the era of merger?
According to the public data, Yida service was founded in 1996 and is a wholly-owned subsidiary of Yida China, mainly engaged in residential, commercial and industrial park property management services. As of December 31st, 2020, the total assets and net assets of Yida service are 393million yuan and 167million yuan respectively.
China has said that the novel coronavirus pneumonia will have a negative impact on the property sales business. The sale will enable the group to quickly recover funds and make up for the shortage of short-term liquidity through selling an auxiliary business line, and at the same time, establishing a cooperative relationship with the buyer. In addition, the net proceeds of the sale are intended to be used to repay group liabilities.
According to the latest data, the revenue of Yida service in 2020 is 481 million yuan, excluding the pre tax profit of 62million yuan, and the area of the pipeline is 16.636 million square meters. Longhu property has achieved 2.49 billion yuan in the first half of 2020, and it is expected to reach 6 billion yuan in the whole year, ranking in the forefront of the industry.
Longhu property also said that the acquisition of Yida service is win-win cooperation, in line with the layout of Longhu property City, and both sides can form organic complementary services products to achieve long-term benign development.
It is worth mentioning that, in the acquisition, Yida service has made performance commitment to Longhu property. As of December 31st, 2024, the book net profit of Yida service and its subsidiaries will not be less than RMB 71.47 million. If the performance commitment cannot be completed during the period, the liquidated damages for the service of Yida reach 14.24 times the difference.

Sino-U.S. Semiconductor Industry

According to the news on the website of the China Semiconductor Industry Association on March 11, after several rounds of discussions and consultations, the Chinese and American Semiconductor Industry Associations announced today that they will jointly establish the “Sino-U.S. Semiconductor Industry Technology and Trade Restriction Working Group.” The industry establishes a timely communication information sharing mechanism to exchange policies related to export control, supply chain security, encryption and other technologies and trade restrictions.

The two associations hope to strengthen communication and exchanges through the working group to promote deeper mutual understanding and trust. The working group will follow fair competition, intellectual property protection and global trade rules, resolve the concerns of the Chinese and American semiconductor industries through dialogue and cooperation, and make joint efforts to establish a stable and resilient global semiconductor value chain.

The working group plans to meet twice a year to share the latest developments in technology and trade restriction policies between the two countries. Based on the areas of mutual concern of both parties, the working group will explore corresponding countermeasures and suggestions and determine the content that needs further research. This year’s working group meeting will be held online, and face-to-face meetings will be held in the future depending on the situation of the epidemic.

According to the results of the consultation, the two associations will each appoint 10 semiconductor member companies to participate in the working group to share relevant information and conduct dialogues. The two associations will be responsible for the specific organization of the working group.

Supervise the fund redemption wave!

In the early trading on March 10, the A-share market opened nearly a bit higher. What is rare is that the “group” sectors such as liquor, medical care, and new energy vehicles have stabilized.

Supervise the fund redemption wave!

As of the close at noon, the Shanghai Composite Index rose 0.67%, the Shenzhen Component Index rose 1.52%, and the ChiNext Index rose 2.95%. At the end of the afternoon, the above three major stock indexes closed at 3357.74, 13563.34, and 2676.7 respectively.

In fact, behind the recent “green light”, there are also many “positive” signs.

On the evening of March 9, a Times Weekly reporter learned from a fund company that on that day, the supervisory authorities had requested that fund companies with huge redemptions report specific conditions.

Industry insiders analyzed that on the one hand, this move is concerned with liquidity issues; on the other hand, it also understands investor sentiment.

On March 9, there was a rumor in the market that “national team funds” had entered the market, with the purpose of maintaining market stability and avoiding short-term sharp fluctuations. However, this news failed to reverse the decline. The stock indexes of the two cities continued to oscillate downward after the V-shaped reversal, and eventually closed down all over again.

After the Spring Festival, the “bullishness” that investors and Christians had hoped for did not come, but was stuck in an anxious atmosphere and was unable to extricate themselves, having fun in the painful days of falling.

Disk data shows that from February 18 to March 9, in the 14 trading days of the Year of the Ox, the Shanghai Composite Index fell 8.09%, the Shenzhen Component Index fell 15.58%, and the ChiNext Index fell 22.86%, showing a technical bear market.

During this period, the liquor, medical, new energy vehicles and other sectors have undergone significant adjustments. The so-called “group stocks” such as Moutai have frequently suffered setbacks. Investment income of many investors has been eroded, and the gains in the net worth of the citizens have also been quickly eroded.

After the Spring Festival, the heavy stocks of institutional holdings fell sharply. About 3,400 funds’ net worth fell by more than 10%, and nearly 800 funds’ net worth dropped by more than 20%.

New signs of redemption

However, according to the knowledge of a number of large and small fund companies by the Times Weekly reporter, as of last weekend, public funds have not shown obvious signs of net redemption.

Many fund companies interviewed said that although the scale of redemption has been enlarged compared to before the Spring Festival, there are net purchases for hedging, and the institutional response has also been relatively stable. But by this Monday (March 8), some fund companies and even leading companies began to feel the pressure of redemption. On Tuesday, as the stock market rose but failed to meet demand, the situation was contagious.

“The redemption is originally the normal behavior of the citizens. Fund companies and fund managers will also set aside corresponding expectations when the market adjusts. However, today’s feeling is that all kinds of products are being redeemed. Both Internet financial channels and traditional channels are available. It is a retail investor, and I can see that everyone is a little panicked. It was originally expected that there would be a rebound on Monday, but it did not happen, and it tended to be safe.” On March 9, a fund source revealed that at present, various companies and related companies Channels are focusing on investor education and customer guidance.

It is worth mentioning that on March 9, the market once went wildly that this round of adjustments was “all caused by insurance.” It pointed out that some large insurance institutions had redeemed funds in large numbers in recent days, which led to a stampede down.

In this regard, insurance institutions have stepped up to respond that day, denying it, saying that they had adjusted their positions before the Spring Festival to keep their equity positions within a reasonable range.

On March 9th, a person from the market department of a fund company also told Times Weekly reporters that he hoped that public opinion could convey some positive energy in the near future, instead of adding fuel to panic, fund investment should have a long-term perspective, and the current market fundamentals have not deteriorated. , The adjustment is only a temporary phenomenon.

She said that since 2020, many new Christians have entered the market. They have not experienced the loss experience of the previous bear market and lack the experience and understanding of investment risks. However, she believes that these new Christians are easier to “educate” than the former Christians.

“Many of them are post-90s and post-00s, with relatively higher levels of education and more rational emotional control. The reason why funds are frequently searched this year is also related to the current age-level changes of the Christians. These’new students’ The generation’ will understand and learn relevant knowledge, and will resolve anxiety through various jokes.” The person said.


According to the observation of a reporter from Times Weekly, in recent days, many fund companies have also strengthened communication with investors through writing open letters, fund managers face-to-face online, and exchanges of views of fund managers to “maintain stability”.


In the middle of the night on March 9, Alipay·Wealth Management Think Tank also issued a “Letter to Investors”.

The letter stated that in the current situation of increasing market volatility, it is more important to believe in the power of professionalism and give outstanding fund managers with rich investment experience, comprehensive capabilities, and strong retracement control capabilities longer time to conduct professional operations, in exchange for time Investment appreciation.

Self-purchase is popular

In recent years, whenever the fund market is unstable, there will be fund companies who have stepped up to buy and show confidence.

However, according to a reporter from Times Weekly, as of now, the supervisory authorities have not yet issued a call and window guidance for this round of decline.

On the evening of March 9, news that a number of fund companies started the self-purchase model rushed to hot searches. On March 8, Yongying Fund issued an announcement, announcing that the self-purchasing of its new fund, Yongying, will benefit 50 million yuan, and fund manager Li Yongxing also purchased 1 million yuan.

According to statistics from Flush iFinD, since the Year of the Ox, from February 18th to March 9th, in addition to Yongying Fund, more than ten fund companies such as Fortune, China Huitianfu, Tianhong, and China have made self-purchases. The accumulated self-purchase amount exceeded 200 million yuan in two weeks.

On March 9th, Xinghua Fund also announced that based on its confidence in the long-term healthy and stable development of China’s capital market and the company’s proactive investment management capabilities, based on the principles of risk-sharing and benefit-sharing with investors, on March 8th, Has used its inherent funds to subscribe for 3 million yuan of its subsidiary Xinghua Yongxing Hybrid.

What needs to be explained here is that although the above self-purchase can be attributed to confidence in the market outlook and fund managers, it cannot be simply characterized as a bargaining action.

The Times Weekly reporter observed that in the past year or so, the self-purchasing behavior of funds actually peaked in December last year. The net purchase amount in that month was nearly 900 million yuan. In January this year, there were also 340 million yuan. Instead, it dropped to 220 million yuan in February. Yuan, about 50 million yuan has been temporarily since March.

Fund practitioners are an important buying group for funds.

On March 10, the deputy general manager of a Shanghai fund company told Times Weekly that half of his net worth had already subscribed to his own fund.

According to him, since March 9th, he and several colleagues have started to increase positions. The reason is that according to historical experience, people abandon me and others fear that I am greedy is the law that investment should adhere to. In his view, equity investment is gradually gaining popularity, and the temporarily withdrawn funds will re-enter the market when the market stabilizes and picks up.

In fact, before the Spring Festival, some fund managers have adjusted their positions and lightened their positions to varying degrees. Fund purchase restrictions and dividends are essentially conservative operations by fund managers.

Two months ago, a fund manager in South China confessed to a Times Weekly reporter that he had reduced his position to 80% at that time.

He said that he was not worried about major changes in the market fundamentals after the holiday, but mainly worried about the tightening of capital liquidity, and that the subsequent incremental funds could not keep up, thus falling into the “stock market falling-citizen redemption-boosting decline.” “The bad cycle.

Recently, a number of fund companies have announced the extension of fund offerings. It only took 1 month from not enough to sell.

Reflection is more important

According to many fund industry professionals interviewed by Times Weekly, it is more precious to summarize and reflect on the changes in the public fund industry this round.

For example, with the increase in the number of basic citizens on the Internet and the “post-90s” and “post-00s” citizens, are fund companies prepared to deal with extreme emotions? To build a head fund, has a single fund manager’s excessive number and scale of funds brought about uncontrollable drawbacks?

The phenomenon of “grouping” is also worth thinking about. In this round of decline in the market, “Bao Tuan” has been criticized by many parties, and the market has mainly two voices about it:

One voice believes that “holding group” is a false proposition. Because most of the stocks selected by fund managers are from top to bottom, from industry to individual stocks, industry sectors and stock holdings will naturally form, which is equivalent to “heroes see the same” to some extent;

Another view is that due to the radical operation of fund companies and fund managers, behind the convergence of shareholdings is the pursuit of hot money and fame. Regardless of the reason, fund companies and fund managers should strengthen their response strategies after the collapse of the “group”.

On March 9, as Guan Qingyou, the dean of the Institute of Finance and a professor at the School of Economics of Hainan University, said bluntly, the loosening of the “group” is an important reason for this round of decline.

He believes that “Bao Tuan” public fund managers will inevitably fall into the “prisoner’s dilemma”, that is, when a fund manager starts to sell such core assets as Moutai, other fund managers must also sell and sell it earlier. The “Prisoner’s Dilemma” determines that throwing is the best solution for the individual fund manager, but it is the worst scenario for the entire market.

“Institutions can affect subscriptions, but they cannot affect investors’ redemptions. So when the “group” begins to loosen, not to mention disintegration, public funds will not be able to stop this trend and can only continue to sell assets to deal with the redemption of the citizens. This is the status quo of the Chinese institutional market, and it has also become one of the drivers of the natural instability of the A-share market.” Guan Qingyou said.