Tagged: Construction

The latest development of Foxconn’s US factory

Foxconn has reached a new agreement with the state of Wisconsin to reduce the size of its plant after several years of delay in the construction plan.

 

The deal is expected to allow Foxconn to reduce the size of its unfinished plants and the tax incentives offered by the state government, according to a joint announcement by Foxconn parent Hon Hai (8.66, – 0.07, – 0.74%) group and Wisconsin governor Tony Evers on Monday. The agreement remains to be approved by the Wisconsin Center for economic development, the state’s top business administration, which will hold a meeting on Tuesday to vote on the issue.

 

The project has been controversial since it was announced in 2017. Foxconn had planned to invest $10 billion, but so far it has fallen far behind the original plan. Foxconn has also attracted criticism from US politicians for receiving huge economic rewards from the local government.

Rendong Holdings has been suspended from financing purchases

The trend of Rendong Holdings may be a mystery in the A-share market this year.

On December 15, Rendong Holdings, which had a limit of 14 consecutive days, broke the limit and staged the “Earth and Sky Board”. As of the close, the share price of Rendong Holdings has risen 10.03% to 15.14 yuan, with a total market value of 8.477 billion yuan, which has evaporated 27.7 billion yuan from its high.

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Rendong Holdings announced in the evening that the shares of Tokyo Foundation Group Co., Ltd. were reduced by 10.56 million shares through a centralized bidding, accounting for 1.88% of the total share capital. The average price of the reduction was 15.14 yuan per share, that is, the daily limit price; it was on April 13 Today, it has reduced its holdings by 11.829 million shares, accounting for 2.11% of the total share capital. The reduction method is all through centralized bidding.
The turnover of 2.1 billion in 1 minute, where does the mysterious funds come from?

Today, Rendong Holdings still opened with a lower limit, but it was divided into a watershed at 9.32, and the turnover instantly exceeded 2.1 billion yuan.

During the call auction stage, Rendong Holdings sealed the price limit with more than 1.6 million lots. At 9:32, a huge amount of funds of over 1.7 million hands suddenly entered the market, took all the sell orders, and took 39 seconds to push Rendong Holdings to the limit.

Rendong Holdings has been suspended from financing purchases, so where does this mysterious fund of 2.1 billion come from?

After-market data showed that the top five business departments bought a total of 681 million yuan, of which, Everbright Securities Foshan Lvjing Road bought 359 million yuan, Haitong Securities Shenzhen Branch Huafu Road business department bought a net 135 million yuan; BOC International Securities The Shanghai Xinhua Road Securities Business Department of Co., Ltd. and Caitong Securities Co., Ltd. Qingdao Branch sold about 300 million yuan. Among them, the business department of Everbright Securities Foshan Lvjing Road is called “Foshan Wuyingjiao” in the industry, and it is the top hot money. Its main seats also include the business department of Everbright Securities Foshan Jihua 6th Road. It relies on its own large capital advantage and ultra-short-term Operate strategies to quickly arbitrage in the market.

According to Wind data, as of December 14, Rendong Holdings had a financing balance of nearly 3 billion yuan, accounting for more than 38% of the total market value in circulation, involving securities companies and 18 brokers. Except for Guorong Securities 45%, the financing margin ratio of the remaining 18 companies is 100%. The margin ratio for securities lending varies greatly, with China Merchants Securities and Nanjing Securities being 110% and 100% respectively, and Huatai Securities, CITIC Securities, and Huabao Securities at 50% to 75%.

Rendong Holdings stated this evening that Rendong Tianjin, the company’s controlling shareholder, acting in concert with Rendong Information, received a notice from CITIC Construction Investment that Rendong Tianjin’s two integrations with CITIC Construction Investment will continue between December 15 and 18. Upon expiration, if Rendong Tianjin fails to repay all the liabilities before the contract expires, China Securities Investment Corporation will perform a mandatory liquidation based on the market and trading conditions after the contract expires. At the same time, Rendong Information’s two financing businesses in Minmetals Securities Co., Ltd. may trigger a forced liquidation due to the recent sharp fluctuations in stock prices.

Earlier, due to 14 consecutive price limits and loss of individual stock liquidity, the impact of Rendong Holdings’ plummet has spread to brokerages. According to industry insiders, Rendong Holdings’ two financings are mainly concentrated in some securities, which has a great impact on concentrated securities firms.

According to media reports, Jufeng Investment Co., Ltd. believes that Rendong Holdings unexpectedly opened the market today, and the brokerage crisis will obviously be alleviated. Chuancai Securities analysts believe that today’s prying board is a self-rescue behavior. There are a lot of institutional funds trapped by Rendong Holdings, especially the passive loss financing.

The Shenzhen Stock Exchange previously named “mysterious shareholders” and asked for self-inspection of whether transactions violated regulations

Just yesterday evening, the Shenzhen Stock Exchange issued a letter of concern, requesting Rendong Holdings to explain whether Chongzuo Zhongshuo’s establishment time, reasons, shareholding structure and actual controller status are required to perform information disclosure obligations; Chongzuo Zhongshuo is the first The specific circumstances of the transaction starting to buy and sell the company’s stock, explain the institution’s source of funds, and self-examine whether there are violations of laws and regulations in the relevant transactions.

According to its three quarterly reports, Chongzuo Zhongshuo holds a total of 3.55% of Rendong Holdings. According to Qixinbao, after the equity penetration, the actual controllers of Chongzuo Zhongshuo, Wang Shishan, Huang Hao, and Liu Changyong, are themselves the directors and executives of Rendong Holdings.

Coincidentally, the time when Chongzuo Zhongshuo was established was very close to the time when the share price of Rendong Holdings climbed. Chongzuo Zhongshuo bought Rendong Holdings in the fourth quarter of 2019, and only held one A-share of Rendong Holdings.

As of the end of the first quarter of this year, Chongzuo Zhongshuo held 21.094 million shares of Rendong Holdings, accounting for 3.77% of the total equity of listed companies. At that time, the market value of its holdings was close to 500 million yuan. During this period, the share price of Rendong Holdings has climbed, with a cumulative increase of nearly 50%. Since then, Chongzuo Zhongshuo began to reduce its holdings in Rendong Holdings, which has reduced its holdings of 1.22 million shares in the third quarter.

Currently, the market is waiting for a response from Rendong Holdings, involving the time of Chongzuo Zhongshuo’s first transaction, source of funds, and senior management team.

At the beginning of December, Rendong Holdings was confirmed as “Zhuanggu.” Some media quoted regulators as saying that the dealer of Zuozhuang Rendong Holdings has been controlled by the police. In addition, Li Yuezong, a capital tycoon engaged in OTC and virtual disk trading, has been controlled by the Pudong police, and Li Yuezong is likely to be highly related to Rendong Holdings.

International and China finance12.4

The Fed’s “Beige Book” shows weak corporate optimism
The National Economic Situation Survey Report released by the US Federal Reserve on the 2nd showed that as the new crown epidemic continues to raging, corporate optimism about the economic outlook has weakened. The report shows that compared with the previous report in October, most jurisdictions have achieved moderate or moderate economic expansion, but the economies of four jurisdictions including New York and Philadelphia are still stagnant, and economic activities in some jurisdictions have slowed since early November. In terms of employment, almost all jurisdictions have seen employment growth, but most jurisdictions have seen slow employment growth.

Chairman of 48 British Group Clubs: Eliminating poverty through reform and opening up is valuable experience
Stephen Perry, chairman of the British 48 Group Club, recently stated that “for all countries trying to get rid of poverty, eradicating poverty through reform and opening up is a valuable experience China provides to the world”. Perry said that through decades of determined reforms and open markets, China’s economy has continued to grow, which provides the most important material guarantee for poverty eradication.

OECD: China will contribute more than one-third of global economic growth next year
The Global Economic Outlook report released by the Organization for Economic Cooperation and Development recently predicted that the global economy will grow by 4.2% in 2021, and China will contribute more than one-third of global economic growth. The global economy will shrink by 4.2% this year, and the Eurozone and US economies are expected to shrink by 7.5% and 3.7% respectively. China’s economy will grow by 1.8%, making it the only major economy to achieve positive growth.

The People’s Bank of China China Banking and Insurance Regulatory Commission issued the “Measures for the Evaluation of Systemically Important Banks”
In order to improve the regulatory framework of my country’s systemically important financial institutions and establish a systemically important bank evaluation and identification mechanism, the People’s Bank of China, in conjunction with the China Banking and Insurance Regulatory Commission, formulated the “Measures for the Evaluation of Systemically Important Banks”, which is now officially released. The main contents of the “Assessment Measures” include: First, clarify the purpose of the assessment. The second is to determine the evaluation method. The third is to clarify the evaluation process.

Bank
The central bank launches a 10 billion yuan reverse repurchase operation
On the 3rd, the People’s Bank of China launched a 7-day reverse repurchase operation of 10 billion yuan through an interest rate bidding method. The winning interest rate was 2.2%, which was the same as the previous time. On that day, 80 billion yuan of reverse repurchases expired, and the central bank realized a net return of 70 billion yuan.

The Shenzhen Stock Exchange’s credit protection certificate business officially landed
On the 2nd, the Shenzhen Stock Exchange’s first batch of pilot projects for credit protection certificates was successfully issued, marking the official launch of Shenzhen’s credit protection certificate business. It is understood that this is another beneficial exploration and practice of actively using market-oriented methods to support direct financing of private enterprises, effectively maintaining the healthy and stable development of the exchange bond market, and better playing the role of the capital market in serving the real economy.

China Insurance Innovation and Development Conference will be held in Wuhan
The China Insurance Innovation and Development Conference co-sponsored by the Insurance Industry Association of China and Wuhan Municipal People’s Government will be held in Wuhan on December 6. The theme of this conference is “Assemble the strength of the insurance industry to boost the recovery of Wuhan after the epidemic”, which is divided into a main forum and a sub-forum.

China Development Bank’s 42.5 billion yuan financial bonds were successfully listed on the Singapore Exchange
The 42.5 billion yuan financial bonds issued by China Development Bank were successfully listed on the Singapore Exchange on the 3rd. The listed bonds have maturities of 1, 3, 5, 7, 10, and 20 years, and the issuance rates are 2.78%, 3.19%, 3.38%, 3.44%, 3.69% and 3.98%, respectively. The relevant person in charge of the China Development Bank’s Treasury Bureau said that the listing of China Development Bank bonds on the Singapore Exchange will help better attract Singapore and overseas institutional investors and further strengthen China-Singapore financial market connectivity.

Macau: Fruitful Results of International Infrastructure Investment and Construction Summit Forum
The 11th International Infrastructure Investment and Construction Summit Forum held in Macau closed on the 3rd. The forum attracted more than 1,000 people from all walks of life from 42 countries and regions. At the signing ceremony held on the 3rd, the Chinese and foreign parties signed a total of 12 cooperation agreements, mainly covering traffic roads, housing construction, photovoltaic power plants, wind power and other fields.