Tagged: shareholders

Trump asks for more money

Bloomberg丨Financial Times: U.S. stimulus bill changes suddenly, Trump asks for more money

On Tuesday night, Trump’s video speech suddenly added a lot of uncertainty to the $900 billion stimulus bill reached by the two parties in Congress.

Trump described the bill as a shame and full of wasted and unspent money. At the same time, Trump asked to increase the money sent directly to the Americans from $600 to $2,000 per person.

Trump stated that if Congress does not modify it, the next administration will have to sign the bill. Trump still expressed his confidence that he will continue to dominate the next administration.

Trump has been scolding the Democratic Party for delaying in launching the stimulus bill in order to bring him down.

After Trump released the speech, the S&P 500 futures index fell 0.5%. The Democratic spokesman Pelosi expressed his willingness to increase the check amount to $2,000 per person.

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Bloomberg丨Reuters丨Nikkei Asia Review: Apple refused to buy Tesla for $60 billion

Tesla President Musk said on Tuesday that he contacted Apple during the difficult period of Model 3 development and wanted to discuss selling Tesla to Apple.

At that time, the price proposed by Musk was only one-tenth of the current market value of Tesla, or $60 billion. But this proposal was rejected by Apple CEO Cook. An Apple spokesperson declined to comment.

In addition, for Apple’s statement that it will use lithium iron phosphate batteries that are safer than ternary lithium batteries, Musk directly responded, saying that Tesla’s Shanghai factory is already using the battery.

Musk revealed this news when Apple had just announced that it would launch the first electric car in 2024. His words were full of disdain for Apple.

 

Bloomberg: The China-EU Investment Agreement is about to be signed, and the United States will spoil the situation

While China and the EU are actively promoting the signing of the China-EU Comprehensive Investment Agreement before the end of the year, opposition forces within the EU are constantly putting pressure on the EU to slow down the negotiation process of the agreement before China resolves the issue of forced labor.

Sullivan, Biden’s national security adviser, said on Twitter a few days ago that he needs to negotiate with his European partners as soon as possible on China’s forced labor issue of common concern.

The head of the Mercator China Institute from Berlin said that the signing of the China-EU Comprehensive Investment Agreement will be China’s victory over Hong Kong and Xinjiang, and will also split the transatlantic partnership between Europe and the United States.

 

Bloomberg: Hang Seng Index or the big change

The Hang Seng Index Company is considering major revisions to the Hang Seng Index, when the weight of large companies will be diluted.

The currently published consultation paper proposes to maintain a certain number of Hong Kong companies, increase the number of shares of Hengcheng from 65 to 80, and lower the weight limit from 10% to 8%.

The consultation will end on the 24th of next month, and the results of the consultation are expected to be announced in February next year.

The Hang Seng Index was founded in 1969 and initially had only 33 constituent stocks. In 2012, it increased to 50 constituent stocks.

But with the entry of a large number of mainland companies, the index can no longer reflect the overall situation of the Hong Kong stock market.

 

Reuters: FTSE Russell starts again on Chinese companies

Britain’s FTSE Russell said on Tuesday that it will take US sanctions against Chinese companies and remove SMIC and Hikvision from the FTSE China 50 Index and the FTSE China A50 Index from January 7.

And said that it will continue to track US sanctions and adjust the index if necessary.

Some fund managers analyzed that due to the limited number of large Chinese companies subject to restrictions, this removal seems to have little impact on most US investors.

But if the list is expanded to large companies, the impact will be very large.

 

Financial Times: Coal shortage causes prices to rise

The price of coal, which was once depressed, has recently started to soar.

Previously, weak prices have caused the coal market to be undervalued, resulting in insufficient supply. However, with the economic recovery, the demand for coal in several Asian countries, such as China, Japan, India and other countries, has begun to pick up, leading to a situation in which supply exceeds demand.

In addition, due to tensions in Sino-Australian relations, China turned to Russia, South Africa and other countries to import coal, driving up coal prices in these countries.

Australia has also repositioned itself to new markets such as India and Bangladesh, leading to rising coal prices in Australia.

Nikkei Asian Review: Sina plans to delist from New York

It is reported that due to the intensification of Sino-US relations, Sina CEO Cao Guowei plans to let shareholders vote on Wednesday to decide whether to withdraw from the New York market.

This requires the approval of at least two-thirds of shareholders, and Cao Guowei alone owns 61% of the voting rights.

After the United States indicated that it would review Chinese companies, at least 14 Chinese companies listed in New York have expressed their intention to privatize this year, including 58.com and Sogou. JD.com and NetEase have also relisted in Hong Kong this year.

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This company has fallen into the “life and death” of delisting

In the last three trading days, whether the closing price can return to the face value of 1 yuan will determine whether to delist or not; at this critical moment of fate, *ST Jin Yu suddenly announced that it was under investigation!

*ST Jinyu’s full name is Oriental Jinyu. It was once known as the “first jadeite stock” in A shares due to the big bull trend in 2015. The company was issued a delisting risk warning in June this year due to losses for two consecutive years. Today, the closing price yesterday was only 0.9 yuan, and the market value was only 1.21 billion yuan; as of today, the stock price of *ST Jinyu closed at 0.95 yuan in midday trading.

As of the end of the third quarter of this year, the number of shareholders of *ST Jinyu was 57,600.

Suddenly under investigation

On the evening of December 17, *ST Jin Yu announced that the company had received an “Investigation Notice” from the China Securities Regulatory Commission, and the CSRC decided to file an investigation on the company because of the company’s suspected violation of information disclosure.

*ST Jin Yu also stated that the company takes judicial reorganization as the main line and takes into account the principle of operation. The company’s reorganization application has not yet been accepted by the court, and it is uncertain whether the company will enter the reorganization process.

*ST Jinyu’s closing price has been lower than the face value of 1 yuan since November 25, and has been below 1 yuan for 16 consecutive trading days on December 16. After the opening of the market on December 17, the down limit of 0.82 yuan was firmly sealed. If the market closes at this point, it will be below 1 yuan for 17 consecutive trading days, and the daily limit will be pulled back to less than 1 yuan face value in the next 3 trading days.

According to the delisting rules of face value, if the closing price is lower than the face value (usually RMB 1) for 20 consecutive trading days, the delisting is triggered.

However, in late trading, *ST Jinyu strongly pulled out of the ground plate, and the daily limit was closed at 0.9 yuan. In the future, as long as 2 daily limits can return to the face value of 1 yuan, there is an opportunity to avoid the delisting of the face value.

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However, it was suddenly investigated again. As of the end of the third quarter of this year, there are still 57,600 shareholders of *ST Jinyu.

In the highlight moment of 2015, in July of that year, the company’s market value was once close to 28 billion yuan, and now the market value is only 1.283 billion yuan.

Supervisory punishment for continuous fraud

The company was also punished for fraud. On December 7 this year, the Shanghai Stock Exchange issued a supervisory letter against the financial fraud violations of Oriental Jinyu, its actual controllers and related responsible persons, and made a disciplinary decision on the company and related responsible persons by reporting criticism, public identification and public condemnation .

The “Disciplinary Decision” shows that *ST Jinyu involved fictitious sales and purchase transactions, as well as false records in the 2016 and 2017 annual reports, and the 2018 semi-annual reports.

According to the “Disciplinary Decision”, in the 2016 and 2017 annual reports, and the 2018 semi-annual report, *ST Jinyu inflated operating income by 142 million yuan, 295 million yuan, and 120 million yuan, respectively; inflated operating costs were 47 million yuan, 1.1 billion yuan. 100 million yuan and 41 million yuan; total inflated profits of 95 million yuan, 184 million yuan and 79 million yuan, accounting for 29.60%, 59.7% and 211.48% of the total profit in the current consolidated income statement. In addition, in the 2018 semi-annual report, *ST Jinyu also inflated its accounts receivable by 77 million yuan.

Rendong Holdings (002647.SZ) entered the crisis again

After breaking the limit and deducting the “earth and sky board” market, Rendong Holdings (002647.SZ) entered the crisis again.

On the 16th, Rendong Holdings opened a lower limit. After the call auction ended, according to market estimates, the selling funds exceeded 600 million yuan. As of the close of the day, the company’s stock price fell 9.97% to close at 13.63 yuan. According to data from the Aftermarket Dragon and Tiger List, the stock had a turnover of 785 million yuan that day, and the trading funds were dominated by seats in the brokerage department.

Although the “earth and sky board” was short-lived, after the limit was broken, liquidity was released, and the pressure on Rendong Holdings’ 3 billion financing plate dropped sharply. Even so, the news that major shareholders may encounter a liquidation still worries the market. On the 16th, China Securities Construction Investment Securities responded on the interactive Yi platform that the specific amount of Rendong Tianjin’s two financing businesses is not convenient to disclose, but it does not exceed 50 million yuan, and the account maintenance guarantee ratio exceeds 300%.

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“Maintaining a high guarantee ratio does not mean safety. Because if there is no trading volume, it will not be able to sell. If it fails to sell after maturity, the brokerage may extend the period to allow shareholders to increase the collateral.” The vice president of brokerage business of a medium-sized brokerage told China Business News. The reporter said.

Previously, more than a dozen brokerage firms had included Rendong Holdings as the two financing targets. The reporter learned from some of the above-mentioned brokerage firms that the relevant brokerage firms have communicated with investors about margin call-related matters in order to deal with possible short positions. “Customers holding Rendong’s stocks may have the risk of wearing positions, and we are currently actively dealing with them. Margin trading and securities lending is an on-market business, and there are many ways to handle it.” A person from the investor relations department of a large brokerage said.

Shareholders reduce their holdings and flee, and the controlling shareholders may encounter a forced liquidation. What are the follow-up stories surrounding Rendong Holdings? Will the risk of liquidation in the financing market be transmitted to the brokerage firm?

An announcement on the evening of the 15th made the market worry again.

Rendong Holdings stated that, upon receiving notice from China Securities Construction Investment Securities, shareholder Rendong Tianjin’s two merger agreements with China Securities Construction Investment Securities will expire from December 15 to 18, if Rendong Tianjin did not return before the contract expires. For all liabilities, China Securities Securities will compulsorily liquidate positions based on market and trading conditions after the contract expires. Rendong Information, the controlling shareholder of Rendong Information, in the two financing business of Minmetals Securities, due to the recent sharp fluctuations in stock prices, may also trigger the possibility of forced liquidation.

On the 16th, China Securities Investment Securities responded on the interactive exchange platform that the specific amount of Rendong Tianjin’s two financing businesses in the company is inconvenient to disclose, but it does not exceed 50 million yuan, and the account maintenance guarantee ratio exceeds 300%.

“At present, Rendong Tianjin maintains a good proportion of guarantees in the credit account of China Securities, and there is no risk of credit default loss for the time being.” China Securities also said.

The reporter checked the third quarterly report of Rendong Holdings and found that as of the end of September, Rendong Tianjin held 5.1 million shares in the customer credit transaction guarantee securities account of China Securities Securities; Rendong Information held shares in the customer credit transaction guarantee securities account of Minmetals Securities The number is 40,525,500 shares.

According to the third quarterly report of Rendong Holdings, Rendong Information was the largest shareholder with a 23.49% shareholding ratio at the end of September, holding 132 million shares; Tianjin Heyou Technology and Jingji Group ranked second and third shareholders respectively, holding shares The proportions are 8.63% and 6.94% respectively. Rendong Tianjin, Alashankou City People Innovation Equity Investment Limited Partnership, Chongzuo Zhongshuo, and natural person shareholders Zhang Liuyang and Liu Xiangdai are also among the top ten shareholders of tradable shares.

The reporter found that in addition to China Securities and Minmetals Securities, China Everbright Securities, Guotai Junan Securities, and Shenwan Hongyuan underwriting sponsors provided credit guarantee transactions for the top 10 shareholders.

With regard to the participation of the top 10 shareholders of Rendong Holdings in margin trading and securities lending: Rendong Information holds 40.5256 million shares in the customer credit transaction guarantee securities account of Minmetals Securities; Rendong Tianjin holds the credit transaction guarantee securities account of China Securities Construction Investment Securities. The number of shares is 5.1 million; Chongzuo Zhongshuo holds 4.8 million shares in the customer credit transaction guarantee securities account of Minmetals Securities; Zhang Liuyang holds 7,882,700 shares in the customer credit transaction guarantee securities account of Shenwan Hongyuan Securities; Liu Xiangdai holds 6.9043 million shares in the customer credit transaction guarantee securities account of Shenwan Hongyuan Securities; Xu Junjie holds 4,485,600 shares in the customer credit transaction guarantee securities account of Everbright Securities.

At the same time, there are more than ten brokerage companies that have included Rendong Holdings as the target of the two financing.

According to a previous report by China Business News, since October last year, 18 securities firms and securities companies including CITIC Securities, Huatai Securities, Hualin Securities, and New Times Securities have incorporated Rendong Holdings into the two financial targets. Among them, the financing margin ratio given by Guorong Securities is 45%. CITIC Securities and Huatai Securities transferred them to the two financial targets at the end of November and early December this year, respectively.

Regarding the situation of Rendong Holdings and its financing, the reporter asked Guolian Securities, Nanjing Securities and other securities firms as investors.

“If our customers participate through the two financial institutions, we will contact the customers to add margin or take the method of forced liquidation.” A person from the investor relations department of a small and medium brokerage said.

“Customers holding Rendong’s stocks may have the risk of wearing positions, and we are currently actively dealing with them. Margin trading and securities lending is an on-market business, and there are many ways to handle it.” A person from the investor relations department of a large brokerage said.

Although it returned to the lower limit on the 16th, there was still a fierce game of hot money surrounding Rendong Holdings.

The data shows that on December 16, Rendong Holdings has a lower limit, with a turnover rate of 14.43% throughout the day, a turnover of 785 million yuan, and the latest market value of 7.632 billion yuan. After-market data showed that Everbright Securities Foshan Lvjing Road sales department sold 27.26 million yuan, China Galaxy Xiamen Meihu Road sales department bought 40.99 million yuan.

It is worth noting that after the limit was lifted on the 15th, liquidity was injected, and the selling pressure of 3 billion yuan in financing of Rendong Holdings shares was released. Wind data shows that as of December 15, Rendong Holdings’ financing purchase balance was as high as 1.601 billion yuan, accounting for 18.88% of the circulating market value. Compared with the previous amount of 3 billion, a drop of nearly 50%.

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▲Rendong Holdings’ financing balance scale (Source: WIND)

“From which price the financing order came in, this is not certain. But after 14 falling limits, the increase in financing has been very small. There were more than 3 billion transactions on Tuesday (December 15), and it is estimated that all financing orders are sold. , The brokerage may force a liquidation. For this kind of ticket, the brokerage may not force the liquidation again at 110%, and may have specific discussions with the customer.” Lin Qi (a pseudonym) of a medium-sized listed brokerage firm told reporters.

Under the crisis of the two-finance liquidation, will the two-finance business of many brokerages be affected?

Since being included in the margin and securities lending target in August last year, the scale of Rendong Holdings’ financing has expanded rapidly. According to Wind data, Rendong Holdings’ two financings involve securities companies and 18 brokerages. China Merchants Securities, CITIC Securities and other financing margin ratios are 100%, and the leverage ratio is 1:1.

It is worth noting that the financing margin ratio provided by Guorong Securities is 45%, which is about twice the investment leverage ratio.

“Shareholder credit financing, the depreciation of the target value received by the brokerage firm will have an adverse effect on the brokerage firm to a certain extent.” A researcher from a medium-sized securities firm in Beijing told reporters.

Lin Qi believes that if there is a liquidation, the brokerage will accrue part of the asset impairment, but overall, it will have little impact on the large brokerage companies.

However, some market analysts believe that Rendong Holdings’ continuous lower limit has increased the risk of leveraged funds. “With more than a dozen consecutive limit drops, a lot of leveraged funds are expected to be buried.” The above-mentioned person told reporters.

Many giants will face a fine of 10% of annual revenue

Bloomberg: Many giants will face a fine of 10% of annual revenue

It is reported that according to a new draft regulation to be submitted by the European Union on Tuesday, it is required that “digital gatekeepers” must comply with the new regulations on data use, otherwise they will be fined 10% of their annual income.

The new regulations will prohibit companies from using their own advantages to engage in unfair competition. This new draft is aimed at those gatekeeper companies, including Apple, Amazon and Google.

If the company has three or more fines within five years, it will be regarded as a systematic violation and may be required to make changes in behavior and structure.

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Wall Street Journal丨Financial Times: Adidas will sell Reebok

Adidas Group announced on Monday or will sell the Reebok business in its strategic plan to be released on March 10 next year.

As the world’s second largest sports brand, Adidas bought Reebok at a price of about 3 billion euros in 2006 to challenge Nike in the United States, Nike’s home stadium.

However, Reebok’s performance has not been able to meet expectations, and it is even far worse than the performance of Adi’s own business in the United States.

Therefore, Adi’s shareholders eventually lost confidence in Reebok’s business. After the announcement, Adidas’ stock price rose 1.8%.

 

Wall Street Journal: Google server crashed 3 times in 4 months

On Monday morning, Google’s server crashed again, and more than a dozen services including Gmail, YouTube, etc. were interrupted. This is the third global service shutdown for Google in the past four months.

The service interruption occurred once in August and September this year, and then again in March.

Because of the epidemic, remote work and learning have become dominant, and this interruption coincides with Monday morning, which undoubtedly has a huge impact on thousands of people.

The affected software service was restored in the next 30 minutes or so, and Google did not respond to the reason for the service interruption.

 

Nikkei Asian Review: Toshiba and Fuji Electric invest US$2 billion to produce chips for electric vehicles

To meet the trend towards electrification of automobiles, Toshiba and Fuji Electric will jointly invest US$2 billion to increase the production capacity of power-saving chips.

Toshiba is strong in power-saving technology for low-voltage products below 300 volts. After the production capacity of its plant in Ishikawa Prefecture is increased, it will produce 150,000 chips a month to supply domestic and Chinese car companies.

Fuji Electric will also increase the production capacity of its Yamanashi factory by 30%, and it is expected that by 2023, electric vehicle chips will account for half of its power chips.

 

Financial Times: LG’s divestiture of subsidiary business is opposed by US shareholders

In November this year, LG announced that it would spin off its five subsidiaries into a newly established investment company. The resolution was opposed by Whitebox Advisors, a US minority shareholder hedge fund that owns 1% of LG Group.

The fund said that the newly established investment company was founded and led by the uncle of the current LG chairman Koo Kwangmo’s Gu Benjun. The price of divesting these subsidiaries is seriously lower than the true value of these companies.

In South Korean consortia, there has always been a tradition of spinning off company business to family members at low prices. Samsung divested its retail business to the founder’s daughter, and Hyundai divested its car and shipbuilding business to the founder’s son.

Because of this, the current overall market value of LG Group is only 69% of the cumulative market value of its subsidiaries.

 

Nikkei Asian Review: The epidemic makes it difficult for Indonesia to escape the middle-income trap

Indonesia originally planned to become the world’s top five economies and enter the ranks of high-income countries by 2045. However, this epidemic has made it difficult for Indonesia to escape the middle-income trap.

According to Indonesian official data, as of August this year, 2.67 million people were unemployed due to the epidemic, and the unemployment rate rose to 7.07% from 5.23% a year ago.

Another 24 million people were forced to cut wages and cut working hours. Since Indonesia was hit by the Asian financial crisis in 1997, the economy has slowly been widened by China. Last year, it was barely included by the World Bank as a post-middle-income country with an annual per capita income of US$4,050.

 

Reuters: Aliceca’s share price dives

On Monday, Aliceca’s stock price fell as much as 9% because Aliceca announced last week that it would acquire the rare disease drug manufacturer Alexion for $39 billion.

According to the merger agreement, nearly two-thirds of the 39 billion U.S. dollars will come from Alicecom’s stock.

As of Monday morning, Aliceca’s market value had evaporated by $9.4 billion, indicating that investors are not satisfied with the announcement of the merger.

And Alexion’s stock price soared to more than $163 per share, indicating that investors believe that the transaction will eventually succeed.