Category: Observation

Asia and China fund manager

Asia and China fund manager
We see significant growth in global asset management (AUM) in 2019. However, fund managers are also facing the challenge of declining management fees and increasing operating costs, and the profitability of the fund industry is under great pressure. During the COVID-19 epidemic in 2020, fund managers faced a decline in assets under management. To be in the fund management business in today’s competitive environment, fund distribution has become a key success factor for managers. As Asian (including Chinese) fund managers have extensive experience in investing in the Chinese market, some of them are actively preparing or considering the establishment of Luxembourg-based funds and management structures to provide appropriate investment vehicles for European investors to invest in China’s capital markets and alternative investment assets.

In this third article in the Luxembourg Funds series, we will provide an overview of the current distribution of funds in Europe and the factors that Asian asset managers should consider when entering the European market.
1) What are the distribution trends of regulated investment funds and alternative investment funds in Europe?
Ucits are regulated funds that invest primarily in secondary market securities that can be sold to institutional and retail investors within and outside the EU, providing them with a large pool of potential investors. Given the current low interest rate market environment, retail investors and institutional investors (especially pension funds) continue to invest money in funds, seeking more stable returns in a volatile investment environment. Ucits sales appear to have been unaffected during the outbreak and remain popular with investors.

There is also demand for alternative investment funds (AIFs). AIF is primarily distributed to qualified investors (such as high net worth individuals and institutional investors) around the world. We are seeing general investor interest in real estate assets, particularly in Europe, the UK and the Middle East.

Investors are also interested in investing in private equity funds. They are willing to take higher risks in exchange for higher returns over a longer investment period. Private equity funds have suffered to some extent because many deals were delayed during the outbreak.

2) According to international statistics released by the European Fund and Asset Management Association in June 2020, Luxembourg is the second largest investment fund center in the world after the United States. Why is Luxembourg more popular with fund managers than any other country?
The political and economic environment in Luxembourg is very stable. The Luxembourg regulator is pragmatic and focused on economic development and is committed to promoting the healthy development of its financial services sector, such as funds and fintech. Luxembourg’s triple-A credit rating is a key element for fund managers and institutional investors to screen and target their investments. For example, some pension funds, such as those in Latin America, attach great importance to the credit rating of the domicile of the fund when making investment decisions.

For international investors, compared to other offshore fund center, Luxembourg funds (including UCITS and AIF) legal system and regulation to protect the interests of the investors, so many international investors more confidence to Luxembourg investment fund, when fund managers around the world or European investors consider raising, Luxembourg, become the natural choice registered fund.

In addition, Luxembourg’s tax regime and extensive network of tax treaties also benefit the onshore fund and fund management industry, thus encouraging global fund managers to set up funds and fund management vehicles in Luxembourg for global investment and enhancing investor returns through legal tax planning.

3) Luxembourg’s UCITS and Alternative Investment Fund (AIF) have achieved excellent sales in Europe. How is it doing in Asia?
We observe that Asian investors seem to be more interested in AIF than Ucits due to its higher expected return on investment, with real estate, infrastructure and credit assets as the target of the AIF attracting more attention. But for now, Asian investors are investing mainly in Ucits assets, with a relatively small amount under management invested in AIF.

4) What are the opportunities for Chinese fund managers?
Global investors seek a diversified portfolio. In recent years, more international investors are interested in investing in the Chinese market. In view of this, Chinese fund managers can take advantage of their rich investment experience and understanding of the Chinese market to actively participate in the China-themed investment portfolio and provide investment management and advisory services. In addition to the return on investment in the fund products, the ability to provide investors with a sustainable fund holding and fund management structure is also a key factor for international investors when making investment decisions.

Although investors who are interested in a theme funds to invest to China, but due to the funds may not be in front of the investment by foreign institutional investors conducted internal assessment on investment fund and comply with the relevant standards (including fund managers track record, asset management, scale and fund compliance, etc.), the institutional investors need to give up the investment opportunity. Foreign institutional investors usually require funds to provide information on the investment level of the fund, and investors enjoy the same investment rights.

To attract EU investors when investing in Chinese assets, fund managers could consider using internationally recognised Luxembourg-based funds. With a well-established regulatory framework, Luxembourg funds can provide investors with the protection they need.

5) What recommendations do we have for Asian fund managers to be successful in Europe if they want to distribute their fund products in Luxembourg?
Given the differences in fund sales across Europe, we recommend that fund managers in Asia should have a thorough understanding of the distribution channels of the countries (regions) in which they intend to sell funds and the behavioral preferences of investors in those countries, and keep in touch with local distribution personnel to obtain the information of the local fund market. Fund distribution is often the first window of engagement with investors to fully understand the strength of the fund manager and to create a customer-centric, relations-driven business model. Only by building closer and deeper relationships with customers can a customer-centric business model be realized.

In addition, brand promotion, good performance, local presence and economic substance are all key factors for a successful fund management business in Europe.

If a fund manager is considering raising money from global investors or developing a global investment strategy, Luxembourg is also one of the possible locations for funds and fund management vehicles.

Xi pointed out that one of the most important events

On the morning of Chinese New Year’s Eve on February 11, Chinese President Xi Jinping had a telephone conversation with his US counterpart Joe Biden.The two heads of state paid New Year greetings to each other on the Spring Festival of the Year of the Ox and had an in-depth exchange of views on bilateral relations and major international and regional issues.

Biden extended New Year greetings to the Chinese people and wished the Chinese people a happy and prosperous Spring Festival.Xi once again congratulated Biden on his official inauguration as US president and wished the Chinese and American people a happy New Year and a auspicious Year of the Ox.

Overseas, software, operations

Xi pointed out that one of the most important events in international relations in the past half century or more is the recovery and development of China-U.S. relations.Although we have experienced many twists and turns and difficulties during this period, we have made steady progress on the whole and achieved fruitful results, benefiting the two peoples and promoting world peace, stability and prosperity.China and the United States stand to gain from cooperation and lose from confrontation. Cooperation is the only right choice for both sides.Cooperation between China and the United States can accomplish many great things that benefit the two countries and the world at large. A confrontation between China and the United States would certainly be a disaster for the two countries and the world at large.

Currently, China-US relations are at an important juncture, Xi said.To promote the sound and steady development of China-US relations is the common aspiration of the two peoples and the international community.You said the greatest thing about America is possibility.It is hoped that this possibility will now move in a direction conducive to the improvement of relations between the two countries.Two countries should work together, mutually, uphold the conflict is not against, the spirit of mutual respect and win-win cooperation, focusing on cooperation and control their differences and promote the healthy and stable development of china-u.s. relations, to bring more tangible benefits to the two peoples, to combat COVID – 19 outbreak, promote world economic recovery and maintain regional peace and stability to make due contributions.

Xi stressed that China and the United States may have different views on some issues, and the key is to respect each other, treat each other as equals, and properly manage and handle them in a constructive way.The foreign ministries of the two countries may have in-depth communication on a wide range of issues in bilateral relations as well as major international and regional issues, and the economic, financial, law enforcement and military departments of the two countries may also have more contacts.China and the United States should re-establish various dialogue mechanisms to accurately understand each other’s policy intentions and avoid misunderstanding and miscalculation.Identify differences and manage them well.What is meaningful to cooperation, and jointly promote the track of cooperation.The Taiwan, Hong Kong-related and Xinjiang-related issues are China’s internal affairs and concern China’s sovereignty and territorial integrity. The US side should respect China’s core interests and act with caution.

Royole Technology’s “magic” IPO

Royole Technology's "magic" IPO
On the last day of 2020, Royole Technology, a so-called “flexible screen” unicorn, filed its IPO prospectus and put its house on the table. Royole has reported a net loss of 3.195 billion yuan in the last three and a half years and is seeking to raise 14.434 billion yuan. It is the second largest company on the board after SMIC.

Royole Technology was founded in 2012 by Liu Zihong, 29. In the last financing in 2019, the seven-year-old Royole Technology was valued at nearly 42 billion yuan, including many well-known venture capital companies such as CITIC Capital, IDG and Shenzhen Venture Capital.

The capital market is highly sought after, but Royole’s products have been only heard of its appearance. Royole technology around the “PPT mass production”, “speculation concept”, “liar company” questions, Royole clarification is difficult to change the public opinion.

As more information is revealed in the prospectus, the mystery surrounding Royole Technology does not abate.

Sohu Finance made an in-depth analysis of its prospectus and found that Royole Technology had a revenue volume of 200 million yuan, and its receivables accounted for more than 80% of the revenue in the first half of 2020. In the last three and a half years, its losses have been expanding year by year, and its “hematopoietic” ability is extremely poor. It relies on equity financing and bank loans to maintain operating funds for a long time.

Based on Royole’s 2019 revenue of 227 million yuan, the raised investment of 14.434 billion yuan is equivalent to more than 60 years of revenue.

In terms of products and sales, Royole did not provide convincing products and data. Relying on its own flexible screen products, its own brand mobile phones manufactured by mobile phone manufacturers shipped less than 15,000 units in half a year, or even less than Gree mobile phones. After an interview with sohu Finance, Royole Technology repeatedly mentioned in the prospectus that the enterprise-class products in cooperation with Louis Vuitton and Luzhou Laojiao have not been mass-produced or commercialized.

In three and a half years, the total loss was 3.2 billion yuan. In the middle of the year, 2.16 million yuan was borrowed from senior executives

Royole’s performance in recent years has been weak, according to data disclosed in the prospectus.

Royole’s revenue in 2017, 2018 and 2019 was 64.7267 million yuan, 109 million yuan and 227 million yuan respectively, representing a two-year compound revenue growth rate of 87.3%. But its net loss also widened, reaching 359 million yuan, 802 million yuan and 1.073 billion yuan, respectively, in the same period.

In the first half of 2020, Royole Technology realized a revenue of 116 million yuan and its net loss further widened to 961 million yuan. Royole posted a cumulative net loss of 3.195 billion yuan in the last three years. As of the end of June 2020, Royole Technology’s accumulative undistributed profit is as high as -2.427 billion yuan.


It is worth noting that Royole also faces the risk that its accounts receivable will not be collected due to its relatively small revenue. In the last three years and at the end of the first year, the book value of its accounts receivable was 29.195,500 yuan, 41.494,100 yuan, 87.593 million yuan and 97.602,600 yuan respectively, accounting for 45.1%, 38.1%, 38.6% and 84.1% of the revenue of the current period.

In addition, Royole Technology has a part of the accounts receivable provision for bad debts. At the end of the last three years and the first year, the provision for bad debts of accounts receivable was 1.608,500 yuan, 3.468,300 yuan, 15.246,700 yuan and 9.433,800 yuan, respectively, accounting for 5.2%, 7.7%, 14.8% and 8.8% of the balance of accounts receivable in the current period.

Take Shenzhen Boyi Media Co., Ltd. as an example. This company is Royole’s largest customer in 2019, with Royole’s sales volume of 46.2316 million yuan in that year. As of the end of June 2020, Royole’s book balance of receivables from Shenzhen Boyi was 32.68 million yuan, among which the provision for bad debts was 1.6519 million yuan.


Due to their “hematopoietic” ability is weak, financing has become the main source of Royole technology supplementary funds. In the last three years, its net cash flow from operation and investment is negative, while its net cash flow from financing is positive.

In the last three years, Royole Technology received 4.573 billion yuan in cash from investment. Due to multiple capital increase and share expansion, its monetary capital in the recent three years and the end of the first year were 832 million yuan, 133 million yuan, 1.454 billion yuan and 848 million yuan respectively.

In the last three years, Royole Technology has received a total of 2.976 billion yuan in cash from loans, which are mainly long-term loans provided by the syndicated banks.

In September 2017, Royole Display, a subsidiary of Royole Technology, signed a syndicated loan contract with five banks, including China CITIC Bank Shenzhen Branch, and obtained a line of credit of 3.64 billion yuan. As of the end of June 2020, Royole Display has drawn money from the bank for four times, with a total amount of 2.856 billion yuan, for the construction of the first phase of Royole International Flexible Display Base Project.

Royole’s short-term interest-bearing liabilities for the most recent three years and the end of the first year were $119 million, $0 million, $37,023,600 million and $83,655,300 million. Compared with the monetary funds of the same period, the amount of these short – interest – bearing bonds is not outstanding.

However, Royole Technology, which continuously held over 100 million yuan of monetary funds at the end of the year, borrowed 2.16 million yuan from four founders and senior executives including Liu Zihong, the actual controller, from July to September 2019. Among them, Yu Xiaojun, the deputy general manager of the two loan amounts are only 100,000 yuan, 60,000 yuan.


In addition, Royole had long-term borrowings of 2.788 billion yuan as of the end of June 2020. Since the long-term borrowings will be converted into non-current liabilities due within one year, Royole’s short-term debt repayment pressure will also rise.

This year the pharmaceutical industry is ordinary and great

Although the stocks of the pharmaceutical industry have been effective in 2020, for the pharmaceutical industry, this year is extremely extraordinary.
In early January, the second round of centralized drug procurement across the country ended with the largest price drop of 93%; the outbreak of the new crown epidemic brought unprecedented challenges to pharmaceutical R&D, production, distribution and various services.
In this context, the prices of centralized medicines are greatly reduced, the supply of epidemic prevention materials is in short supply, and vaccine research and development are imminent. In this context, Chinese pharmaceutical companies have fulfilled their mission and raced against time. Abundant medical supplies, advanced vaccine processes, and high-quality medical services have made people across the country feel the greatness of doctors and the hardships of medical professionals.
For Jointown, which focuses on the field of pharmaceutical circulation, in Hubei, where the epidemic is the most severe, the pressure on the distribution of medical supplies can be imagined. When the epidemic was the most severe, the company undertook the distribution of medicines and anti-epidemic materials from key anti-epidemic hospitals, Jinyintan, Leishenshan, Huoshenshan, and Fangcang shelter hospitals.
Under the background that the Wuhan Red Cross is responsible for receiving material donations from all walks of life, due to limited manpower, inexperience, and a large number of materials, there was chaos at the beginning. Later, Kyushu Tong was ordered to assist the Red Cross in the storage management of various materials and medicines. Kyushu Tong quickly applied Kyushu Yuncang logistics management system to the processes of storage, classification, storage, deployment and delivery of epidemic prevention materials. A modern and efficient logistics system was soon established in the National Expo Center.

With years of hard work in the field of pharmaceutical circulation, Jointown has broken through all difficulties and obstacles and completed a series of anti-epidemic tasks with high quality and efficiency. The defense of Wuhan and Hubei are inseparable from the silent efforts of pharmaceutical companies like Jointown.
After facing the test of the epidemic, what plans does Jointown have for the future? What are your judgments on the Chinese pharmaceutical market?
In response to these issues, Financial Headlines recently had an exclusive conversation with Liu Zhaonian, Vice Chairman of Jointown, to explore the future development direction of Jointown in the post-epidemic era and the latest thinking on the medical and medical industry.

UK and EU reached a Brexit deal

According to EU procedures, the “EU-UK Trade and Cooperation Agreement” will then be reviewed by the European Council and the European Parliament. However, since the EU and Britain reached an agreement at the last minute, it is almost impossible for the European Council and the European Parliament to reach an agreement next year. The review was completed before January 1, and the European Commission stated in the announcement that “based on special circumstances”, it recommended that this agreement be implemented temporarily from January 1 to February 28 next year to ensure that the UK will not face a no-deal Brexit dilemma.


The conclusion of this agreement is expected by the market. In fact, for the United Kingdom and the European Union, which are deeply mired in the “new crown crisis”, having an agreement to leave the European Union has become the best option, and it can even be said to be the “only” option, because both sides are fragile. The economy of China has been unable to bear the “worse worse”. The latest World Economic Outlook report released by the Organization for Economic Cooperation and Development (OECD) in December shows that in 2020, the UK’s gross domestic product (GDP) will decline by 11.2%, and it is expected to become one of the countries with the largest decline in global GDP this year. According to the report, by the end of 2021, the size of the British economy will shrink by more than 6% compared to before the new crown pneumonia epidemic.

The EU faces the same dilemma. The measures taken to contain the epidemic have led to a severe economic downturn in the Eurozone in November, and the possibility of GDP contraction in the fourth quarter has increased. The International Monetary Fund (IMF) warned that unless there is a “significant change in the trend of the new crown epidemic” in Europe in the coming months, economic growth in the euro zone will be weaker than previously expected. In the World Economic Outlook released by the IMF in October, the Eurozone GDP would shrink by 8.3% in 2020.

Right now, Brexit has been settled, and how to restore the economy in the “post-epidemic period” has become a new challenge for both sides. As European Commission President Von der Lein said at a press conference: “Brexit has become history, and we need to look forward.”

Is Apple Car really coming?

Last night, the stock prices of Apple and Tesla attracted the attention of global investors. Apple’s stock price rose by 2.85% as of the close, the market value rose by 400 billion yuan, and Tesla’s market value continued to evaporate…


Apple wants to build a car?

On December 22, Reuters quoted people familiar with the matter as saying that Apple is advancing self-driving car technology and plans to produce a passenger car in 2024, which may include breakthrough battery technology developed by the company itself.

Reuters reported that people who know Apple’s battery design have learned that the core of Apple’s project (automotive project) strategy is a new battery design that may “fundamentally” reduce battery costs and increase car mileage. . According to reports, Apple plans to use a unique “single battery” design to increase the volume of the single battery and release the space inside the battery pack by omitting the packaging and modules that contain battery materials. Apple’s design means that more active materials can be filled in the battery, making the car’s potential cruising range longer.

According to the timetable reported by Reuters, Apple will not officially launch the vehicle until four years later, which is consistent with previous expectations that Apple will launch the vehicle in 2023-2024.

The day before, Chinese Taiwanese media reported that Apple is expected to release Apple cars in September next year. The report also said that dozens of Apple Car’s first prototypes have been secretly tested in California, and Apple has recently requested many auto parts manufacturers in Taiwan.

We don’t know how the future will evolve, but judging from the innovative actions of the technology giants, this may be a new milestone. In the future, when we see Apple Car, it may be the same as when we first saw the iPhone.

Apple’s market value rose by 400 billion yuan overnight
The layout of new energy vehicles does not start today

As early as 2007, Jobs met with the then CEO of Volkswagen Group Martin Wendern to discuss a product called “iCar”. However, as for the development path of new energy vehicles, Apple has always been in a state of strategic uncertainty.

After the news of Apple building a car, the stock price rose 5% last night, and then the increase narrowed. As of the close, it rose by 2.85%, and the market value rose by 400 billion yuan.

Some netizens even joked that Apple’s stock price is now very cheap, with a price-earnings ratio of only 40 times, but now it is an electric vehicle company with a price-earnings ratio of 700 times. The fair price target is $2280!

Is Tesla stock scared?

From Monday to Tuesday, Tesla’s stock price fell for two consecutive days, with a cumulative decline of 7.86%, and the market value evaporated by 51.8 billion US dollars (about 340 billion yuan).

According to reports, Vitali Kalesnik, partner and head of European research at Research Affiliates, a US investment research firm, said that although Tesla is a great company, the current Tesla stock has a very strong high. Estimate signs.

On December 23, Beijing time, Tesla CEO Elon Musk tweeted that in the darkest days of the Model 3 project, he had found Apple CEO Tim Cook (Tim Cook) Discussed the possibility of Apple acquiring Tesla, but Cook refused to meet.


Apple really wants to build a car? Big bank opinions are now divided

Although Apple has not publicly acknowledged that it is developing Apple Car, the market believes that everything is possible, and the entry of technology giants is bound to become an important competitor of Tesla and have a certain impact on Tesla.

In this regard, Morgan Stanley analyst Adam Jonas said that the bank’s long-term consensus is that Apple will one day design and manufacture cars by itself. But Citi analyst Jim Suva said on Tuesday that he “quite doubt” whether Apple will actually make cars. He said that because the profit margin of the automotive industry is much lower than that of Apple’s main business, the end result may be that Apple will push its OS deeper into the consumer and enterprise markets.

In a small town, 1/10 people do this kind of business

After the heavy snow festival, the forest area of ​​Daxinganling in Heilongjiang Province, the northernmost part of our country, is covered with snow and cold. The frost-free period here is only about 70 days a year. Looking ahead, it has a unique scenery of the North. During the long winter, “winter catching” is an important source of food for people here.

Live broadcast

Pan Yucheng, who has more than 1.2 million fans on the short video platform, is a well-known internet celebrity in the Amur forest area, mainly photographing the natural scenery and customs of the forest area. His “Winter Catch” broadcast live on the Internet has reached more than 200,000 views in one day, and his fans have increased by more than 1,000.


Pan Yucheng originally ran a barbecue restaurant in the town, earning more than 2,000 yuan a month, and living a smooth and comfortable life. Four years ago, he accidentally took a small video in the snow. After uploading it to the short video platform, he liked more than 10,000. Once, he posted a video of picking fungus and mushrooms in the Greater Xing’an Mountains forest area. Unexpectedly, some netizens left messages wanting to buy local agricultural products.

Net Red Shop

Pan Yucheng calculated that opening a barbecue restaurant can make up to 100 yuan a day, and through the online platform, he sold 200 yuan of mountain products at a time. Sending short videos and live broadcasts on the Internet opened a door for him to understand the outside world. So, despite the opposition of his parents, he secretly mortgaged the barbecue booth for 9,000 yuan and used the money to purchase a set of live broadcast equipment.

The unique natural scenery, local customs, and his true and simple style of Daxinganling have made Pan Yucheng’s fans more and more, and Pan Yucheng is more and more willing to devote himself to creating more distinctive content to give back to fans.

In the middle of winter, the temperature in Daxinganling dropped to minus 30 degrees Celsius. Pan Yucheng and his three partners spent more than 20 days on the riverside 10 kilometers away from Amur Town, using more than 500 ice blocks from the glacier to build An igloo of more than 20 square meters was built.

In this igloo, there are ice tables and ice beds. Pan Yucheng also has hot pot and barbecue in the igloo, attracting many fans to watch online. When the live broadcast reached Xing’s head, Pan Yucheng took off his clothes and jumped into the glacier in a short sleeve to show netizens the scene of fetching ice from the glacier. This made his father feel very distressed.

In Pan Yucheng’s eyes, treasures are hidden everywhere in the Greater Xing’an Mountains. He walked into the depths of the woods and showed netizens the production environment and picking process of agaric, mushrooms, and birch velvet. These original mountain products have not been sold smoothly in the past many years. Everyone has to wait for the bosses who come outside to collect the mountain products to come and sell them. The pricing power is all in the hands of the purchaser, and the boss has the final say.

Since Pan Yucheng started live broadcasting and short videos on the Internet, he can sell these special agricultural products directly on the market. The chaga velvet that used to be less than 5 yuan can now be sold for more than 100 yuan per catty. This year, Pan Yucheng sold local agricultural products through short videos, and the cumulative sales exceeded 1 million yuan. The parents also changed from the original incomprehension to a good helper for packing and shipping.

At 6 o’clock in the afternoon, a lantern was lit outside the igloo, and Pan Yucheng welcomed a group of fans who came to experience the igloo. He prepared the ingredients in advance and wanted everyone to have a steaming hot pot in this exquisite igloo. .

One-tenth become an Internet celebrity
Amur Forestry Bureau has a coup for economic development!

In the Longhe Forest Farm, 80 kilometers away from Amur Town, in winter, except for the forest management personnel, almost no other people can be seen. He Xiyan and his wife are local forest management personnel and have lived here for more than 20 years. Although the monthly salary of close to 4,000 yuan is not generous, it can still be stable.

Unexpectedly, their daughter suffered from congenital severe cerebral palsy after birth, and medical expenses alone would cost more than 100,000 yuan each year. In order to treat her daughter, the family owed a lot of debts, and the increasingly difficult life made He Xiyan a little unable to lift her head. When the most difficult time, she went out to work for people, shoveled land, and stalked grass, earning 15 to 20 yuan.

In 2014, Daxinganling completely stopped commercial logging, and forest workers who put down their axes and saws mostly rely on picking mountain products and doing odd jobs nearby. Shanhuo can only wait for customers to buy it and cannot sell it at a price. In order to change this dilemma, the Almu Forestry Bureau is determined to seek a new way and began to build the “Great Arctic Global Tourism” plan to develop various scenic spots such as the Arctic Island.

The road in front of He Xiyan’s home is the only way to the scenic spot. Every tourist season, tourists passing by He Xiyan’s home are endless. He Xiyan spotted the opportunity and set up a stall in front of her home to sell the mountain products she picked to tourists. It is much higher than the previous purchasers’ door-to-door acquisitions. Not only did her own mountain products sold out, the enthusiastic He Xiyan also began to help neighboring villagers sell their products. In the peak season, they can sell more than 5,000 yuan in a month.

Driven by Internet celebrities such as Pan Yucheng and He Xiyan, in the cold northern Xinjiang, the Internet celebrity economy has become increasingly hot, attracting many tourists. Everyone’s income has also risen, and each household can increase their income by 20,000 yuan a year. Those with diligent legs and active minds can even earn more than 100,000 yuan throughout the winter.

As night falls, the Internet celebrity entrepreneurship center in the small town of Amur is particularly conspicuous. Every night, this is the most lively place. Live singing, storytelling, and cooking are everywhere. Many of them are forest farm workers and use themselves. The professional advantages of the company play their strengths, and the local specialties and refined products are sold at the same time as the live broadcast.

The Internet celebrities upstairs brought the goods live, and Liu Guixia and his wife sent express delivery downstairs. At the busiest time, they could send more than 300 orders a day, and they didn’t even bother to eat. Those who work on forest fire prevention turned out to go home to rest as soon as the winter entered, and they had almost nothing to do. Seeing that the net celebrities in the small town gradually developed their ability to carry goods, the couple felt that they had discovered a business opportunity and invested nearly 100,000 yuan to open a delivery point.

According to statistics, in 2020, local residents in Amur Town used various online platforms to promote local customs, local customs, and video works of special agricultural products. The amount of dissemination exceeded 300 million. The cumulative sales of agricultural products exceeded 70,000 orders, and the sales exceeded 1,500. Ten thousand yuan, nearly doubled over the same period last year.

In order to support new business formats, activate the consumer market, and expand employment space, the National Development and Reform Commission has jointly issued the “Opinions on Supporting the Healthy Development of New Business Formats and New Models and Activating the Consumer Market to Drive Employment Expansion”. At present, a variety of new business formats and new models emerge in an endless stream. With the characteristics of small size, fast dissemination, low threshold, and massive content, the industry pattern of short video and live broadcast is gradually taking shape. According to the “2020 Short Video Industry Development Analysis Report” issued by the Supervision Center of the State Administration of Radio, Film and Television, China’s short video market was nearly 100.7 billion yuan in 2019. In 2020, my country’s short video users accounted for 87% of the total number of Internet users.

Through short videos and live broadcasts, the villagers in Linhaixueyuan brought great changes in their lives. We hope that more people will be able to master the new means of network communication, help the revitalization of the countryside, and add luster to the wonderful life.

Way of the financial technology regulatory landscape

What risk signals have been released?

“What is meant by’big to fail’? That is, for systemically important financial institutions, the regulatory authorities dare not let them go bankrupt easily. In this case, moral hazard will arise.” Zeng Gang said.

not to fail

Before the 2008 financial crisis, “big not  to fail” was just an unspoken rule. On September 15, 2008, the collapse of Lehman Brothers, an investment bank with a history of more than 150 years in the United States, triggered a major earthquake in the global financial market, turning the subprime mortgage crisis into the most serious global financial crisis since the Great Depression in 1929. These experiences have become the reason for many politicians and non-financial people to ask for bailout of large financial institutions, that is, “too big to fail”.

However, with the “big to fail” is the breeding of moral hazard and the greater risks created by it. Zeng Gang further explained that the essence of the “big to fail” problem is that the creditors and shareholders of large institutions believe that large institutions will receive government assistance and will not go bankrupt. As a result, they will relax their prudential management of the organization, and instead engage in some high-risk businesses, over-development and over-taking of risks.

At present, particularly noteworthy risks are mainly concentrated in two aspects. On the one hand, these new financial infrastructures developed with the development of the new economy do not hold corresponding financial licenses or even if they hold licenses, they are engaged in certain businesses beyond the scope of the license. , Outside the scope of supervision, the regulatory vacuum leads to the emergence of arbitrage opportunities, which can easily distort the market. On the other hand, the mixed operation of large technology companies does not only occur across borders between financial institutions, but also forms a cross-border relationship with the real economy. The mixed operation situation is more prominent, resulting in stronger spillovers of potential risks, and it has a greater impact on the entity. The economic impact is more direct.

“In addition, the phenomenon of being outside the scope of supervision will also lead to unfair market competition. Those technology companies that are engaged in the same financial business as banks are not subject to the same regulatory constraints as banks. They get more and pay less. Other institutions are very unfair, which can easily disrupt the market order, leading to misallocation of resources and distortion of prices.” Zeng Gang cited small loan companies as an example. In fact, the consumer credit business of small loan companies is essentially the bank’s Credit card business, but it is not subject to the same supervision of access, collection and pricing as bank credit card business.

Wang Yifeng emphasized that it is different from the traditional financial institution’s “big to fail”. The platform-based technology company faces a large number of C-end customers, and it is easy to form a natural monopoly and a “winner takes all” situation. From a perspective, there is also the risk of “big to fail”.

Where will the financial technology regulatory landscape go?

After the subprime mortgage crisis in the United States, in order to solve the problem of “big to fail”, Basel III proposed higher capital adequacy requirements, leverage requirements, corporate governance requirements, and stricter related party transactions for global systemically important financial institutions And information disclosure requirements. “In fact, the purpose of supervision is, on the one hand, to control the possibility of excessive risk taking in advance, and to restrict the emergence of’large to fail’ risks in advance; on the other hand, through the’living will’, that is, the recovery and disposal plan, Make relevant arrangements in advance so that large institutions can rely on themselves to solve spillover risks, minimize the use of public resources, and prevent the whole society from paying for their imprudent operations.” Zeng Gang said that the next improvement of technology companies’ supervision methods may continue. This regulatory idea.

Two experts, Zeng Gang and Wang Yifeng, unanimously emphasized the “full coverage” and “consistency” of financial technology supervision in the future.

“Those businesses that are outside the regulatory system must be included in the regulatory system. Those that are already in the regulatory system but do not hold the corresponding financial business licenses must’level out’ the supervision and do the same with banking financial institutions. We must accept the same supervision.” Zeng Gang emphasized.

“To resolve the risk of financial technology giants being’big to fail’, it is imperative to keep in mind that the essence of financial technology is still finance, and to serve the real economy as the starting point and goal of developing financial technology, improve the quality and effectiveness of financial services, and promote social welfare. , Through financial innovation to benefit the development of people’s livelihood.” Wang Yifeng believes that it is necessary to strengthen the supervision of financial technology giants, distinguish between technology business and financial business, find a regulatory method that adapts to the characteristics of large technology companies, and enhance the penetration, timeliness and coordination of supervision , Pay attention to the use of regulatory technology, prospectively evaluate the safety of financial technology innovation, not only reserve enough flexibility for the market, but also avoid “pseudo-innovation” characteristic of regulatory arbitrage. For businesses with clear essential characteristics and larger scales, they will unify regulation and level supervision as soon as possible, and enhance the consistency of supervision.

In fact, supervision is now in the process of precise bomb disposal. Since the beginning of this year, the “Trial Measures for the Supervision and Administration of Financial Holding Companies” have been implemented, filling the regulatory gap for financial holding companies. At the same time, management measures for various financial technology businesses are being released, such as the “Interim Measures for the Management of Online Small Loans Business” for comments. In terms of data, the “Personal Financial Information (Data) Protection Trial Measures” has also been included in the work schedule of the central bank this year.

At present, my country has established a regulatory framework in areas such as global systemically important banks. The industry expects that financial supervision in the field of financial technology will achieve full coverage. “The 14th Five-Year Plan proposes to properly handle the relationship between financial development, financial stability, and financial security. If you want to maintain the bottom line of systemic risk, you must keep systemically important institutions into the scope of supervision without leaving blind spots. “Zeng Gang said.

It is foreseeable that under the trend that all financial businesses must be regulated, the regulatory requirements of financial technology companies and traditional financial institutions are also expected to stand on the same starting line. In the future, the competition will be based on compliance and serve the real economy through innovation. ability.

“New” risks of the new type “big not to fail”

This year’s Central Economic Work Conference proposed that “strengthening anti-monopoly and preventing the disorderly expansion of capital” is one of the key tasks to be grasped next year. It is necessary to strengthen regulation, enhance supervision capabilities, and resolutely oppose monopoly and unfair competition. Financial innovation must be carried out under the premise of prudential supervision. This has once again aroused the market’s attention and discussion on the new “big to fail” risk.

On December 8, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, stated at the Singapore Fintech Festival that he should pay attention to the new type of “big not to fail” risks. A few technology companies occupy a dominant position in the micropayment market, involve the interests of the general public, and have the characteristics of an important financial infrastructure. Some large-scale technology companies are involved in various financial and technological fields, and cross-border mixed operations. We must pay attention to the complexity and spillover of these institutional risks, timely and accurate bomb disposal, and eliminate new systemic risks.

So, where is the new type of “big to fail” risk?

What kind of signal does the emphasis on new risks send at this time?

What kind of pattern will financial supervision take in the future?

Recently, a reporter from the “Financial Times” interviewed relevant experts in order to provide an in-depth interpretation of the new “big to fail” risk.

Where is the “new” risk of the new type “big to fail”

“Big to fail” was originally a risk phenomenon for banking financial institutions. Nowadays, some large technology companies and a few technology companies with important financial infrastructure characteristics are also facing a very similar situation, which is called the new type of “big And can’t fall” risk.

“The new type of’big to fail’ risk has emerged with changes in economic and financial forms. We have seen that with the acceleration of economic and financial digitalization, new forms of financial activities and new types of financial infrastructure have been derived.” National Finance Zeng Gang, the deputy director of the Laboratory and Development Laboratory, believes that the “new type” is mainly reflected in the fact that technology companies are not typical traditional licensed financial institutions, but at the practical level, they are engaged in the business of traditional financial institutions. The function of infrastructure is also widely and deeply related to other financial institutions in the business field, and there are new hidden systemic risks.

“In the field of micropayments, a few technology company platforms have a very high market share, are involved in various financial scenarios, involve the interests of the general public, and have important financial infrastructure characteristics. If there is a problem with these financial infrastructures, the operation of the trading system Stability will be greatly disturbed, which will affect the stability of the entire economy and finance.” said Wang Yifeng, chief analyst of the banking industry at Everbright Securities Research Institute.

The data shows that the micropayment market represented by mobile payment is developing rapidly. According to the data disclosed by the Central Bank, in the third quarter of 2020, non-bank payment institutions processed 1,234.45 billion online payment transactions, with an amount of 78.96 trillion yuan, an increase of 22.65% and 23.38% year-on-year respectively; the online platform processing business (through online payment initiated by payment institutions) The online payment business involving bank accounts processed by the Lian platform was 156.122 billion, with an amount of 97.21 trillion yuan, an increase of 43.82% and 40.87% year-on-year respectively.

The risks, complexity and spillovers of some large technology companies’ cross-border mixed operations are more prominent. “Some financial technology companies make joint loans with banking institutions, and a large number of assets are turned into ABS and put on the market. When the scale is small or there are not many counterparties, the systemic risk is not yet prominent, but once the scale increases, the risk The scope of transmission is likely to affect the operation of other financial institutions.” Zeng Gang emphasized.

Take Ant Company as an example. The information disclosed in its prospectus shows that Ant Company has a total credit scale of 2.1 trillion yuan, 98% of which comes from cooperative banks and ABS.

Wang Yifeng believes that financial technology giants are typical platform-based companies with network effects and scale effects. By dismantling financial businesses, they can achieve actual mixed operations and provide cross-cutting financial products, which may intensify cross-market contagion of financial risks. At the same time, large technology companies, as platform intermediaries, rely on scenario advantages to master traffic distribution and form strong bargaining power over financial institutions. This objectively causes financial institutions to rely on technology giants in terms of traffic introduction, customer management, and risk control. .

Apple wants to launch self-driving cars in 2024

Financial Times丨Wall Street Journal丨New York Times: New Coronavirus mutation causes global stock prices to fall

With the occurrence of the mutation of the new crown virus and its spread in parts of the UK, the market generally expects a new wave of lockdowns and travel restrictions to follow, and global stock markets will fall randomly.

The Fuji Global Index fell 0.8% on Monday, its worst day in the past three weeks. The European STOXX 600 index fell 2.3%, and the London FTSE 100 index fell 1.7%.

In comparison, the Wall Street stock market fell more gently. The S&P 500 initially fell 2% and then gradually recovered and eventually fell only 0.4%, while the Nasdaq index, which is more technology companies, fell only 0.1%.


Bloomberg丨Reuters: Apple wants to launch self-driving cars in 2024

It is reported that Apple is currently studying new battery technology to reduce battery costs and increase cruising range. Apple currently declined to comment.

In addition, Apple is not only developing its own lidar technology, but also connecting with external lidar teams and real-time 3D technical teams.

One of Apple’s plans to build cars is to use foundries equipped with its own autonomous driving technology to enter the market, but it is still unclear which traditional car companies will OEM for Apple.


Nikkei Asian Review: Toyota’s European plant will stop production

Toyota will suspend its car plants in the UK and France on Tuesday to deal with the risks of a new wave of virus mutations.

Toyota originally planned to stop production on Thursday and start the winter vacation, but due to changes in the epidemic situation, it decided to advance the time by two days.

Toyota stated that due to its sufficient inventory, the suspension will not cause major problems. The logistics between Britain and France is almost suspended due to blockade and congestion, so the suspension of production can help Toyota avoid unnecessary losses.

Before the current round of the epidemic, a large number of companies were stocking up to avoid the impact of the collapse of the Brexit negotiations. This has resulted in a large number of trucks currently stuck in the UK or on the way back to France.


Wall Street Journal: Pfizer’s new crown vaccine approved in the EU

On Monday, the European Medicines Agency approved Pfizer’s new crown vaccine, a week ahead of schedule.

The EU has ordered 300 million doses of vaccines from Pfizer, which will benefit 150 million people.

In addition, 160 million doses of vaccine were ordered from Moderna. The European Union is expected to decide whether to approve the vaccine on January 6.

In addition to these two vaccines, it may take several months for the European Union to approve Alicecam’s vaccine.

Although the vaccine is now approved, the committee must first investigate all 27 EU member states, and some countries will not start vaccination until December 29.


Nikkei Asian Review: Mirae Group fails to sue Amazon

Previously, Mirae Group sold its retail business to Reliance Group for US$3.4 billion and was opposed by Amazon. Mirae Group asked the court to prevent Amazon from interfering in this transaction.

Although this lawsuit involving two billionaires-India’s richest man Ambani and the world’s richest man Bezos won by Amazon, it does not mean that Amazon has the first opportunity.

In fact, the New Delhi High Court also found that the transaction contract between Mirae Group and Reliance Group was valid. The court only supported Amazon’s right to object to it based on Amazon’s existing shares in the Future Group.


Reuters: Shell Oil writes down assets again

Royal Dutch Shell said on Monday that the value of oil and gas assets will fall by US$3.5 billion to US$4.5 billion. The news caused Shell’s share price to fall by about 4% in early London trading.

This year, Shell has written down its assets several times. In the second quarter, it wrote down US$16.8 billion, and in October it wrote down nearly A$1 billion.

The weak oil demand caused by the new crown epidemic and the closure of the Gulf of Mexico platform have affected the company’s oil and gas production.

Although the profit of Shell’s marketing business hit a record high in the third quarter, oil and gas profits in the fourth quarter will fall sharply.