China Business Now丨Henan’s record rainstorms claimed 33 lives; metal reserves to release late July

China Business Now李莹亮,实习生郎舒婷 2021-07-22 20:12


Hi everyone. I’m Stephanie LI.


Our top stories today.


As central China’s Henan province ravaged by record rainstorms, President Xi Jinping has urged all-out efforts to carry out flood prevention and rescue work to protect people's lives and property, requiring officials at various levels to work on the front line to speedily mobilize all available resources in an instruction released on Wednesday. The Ministry of Emergency Management has dispatched 1,800 firefighters from nearby regions to support disaster relief work. The Ministry of Finance on Wednesday earmarked 100 million yuan (about $15.42 million) of disaster relief funds for Henan. Residents have also volunteered to take part in rescue efforts in Zhengzhou, providing shelters and supplies to people trapped in different areas. 

Death toll rose to 33 on Thursday morning, with eight still missing as rescue continues today. More than 3 million people have been affected. Henan’s meteorological station continued the issuance of a red alert for heavy rain at 7:50 a.m. Thursday.


China’s National Development and Reform Commission and the National Food and Strategic Reserves Administration said Wednesday that the country will release another batch of national reserves including copper, aluminum and zinc. Some 30,000 tons of copper, 90,000 tons of aluminum and 50,000 tons of zinc will be released from the national reserves in late July. 


The Ministry of Human Resources and Social Security on Thursday said by the end of June, all provinces have started entrusted investment of basic pension funds of 2021. The total amount of the entrusted funds reached 1.25 trillion yuan, receiving 1.09 trillion yuan in investment revenue. 


Updates on COVID-19. 


Chinese mainland reported 12 new local cases yesterday, one in Yunnan Province and 11 in Jiangsu Province. Nanjing, which has a population of more than 9.3 million, carried out citywide nucleic acid testing starting on Wednesday. 


China hopes that the World Health Organization will genuinely treat the COVID-19 origin-tracing work as a scientific issue, get rid of political interference, and actively and prudently promote the tracing work to be carried out continuously in multiple countries and regions around the globe, said a senior official of the National Health Commission (NHC) on Thursday. At the same time, the Foreign Ministry demanded on Wednesday that the United States show transparency and conduct a thorough investigation into its Fort Detrick laboratory and other biological labs overseas over the origins of COVID-19.


CPC Leads a Century’s Progress.


Under the leadership of the CPC, China has built the world’s largest social security system. A multi-level and sustainable social security system covering urban and rural residents has basically been established. The first regulation in the field of social security, The Labor Insurance Regulations, was enacted in 1951, and The Social Insurance Law was implemented in 2011 as China's social security legal system improved. In 1951, the number of employees with labor insurance was only 2.69 million. By the end of March 2021, the number of people covered by basic pension insurance exceeded 1 billion, and the number of people covered by basic medical insurance reached 1.36 billion. The number of people covered by unemployment insurance and work-related injuries reached 218 million and 267 million respectively.


Next on industry and company news.


China's software and information technology (IT) sector maintained its growth momentum in the first half of 2021, official data shows. The sector's combined software revenue rose 23.2 percent year on year to 4.42 trillion yuan in the January-June period. The growth rate fell 3.3 percent from its level in the first quarter. During the same period, companies in the sector raked in 499.9 billion yuan in total profits, up 13.6 percent year on year, according to the Ministry of Industry and Information Technology (MIIT).


Faraday Future (FF) on Wednesday said it completed its previously announced business combination with blank-check company Property Solutions Acquisition Corp., adding that shares of the combined company are expected to begin trading July 22 on Nasdaq, with Evergrande Vehicle holds 20 percent of its shares. A document submitted by FF to the US Securities and Exchange Commission on July 15 showed that one of its cornerstone investors who originally planned to invest US$175 million will not hold shares of FF. Sources said that the fore-mentioned investor was the Zhuhai State-owned Assets Supervision and Administration Commission.

北京时间1月29日凌晨消息,法拉第未来向美国证券交易委员会(SEC)提交了IPO(首次公开招股)上市申请文件,将通过与Property Solutions Acquisition Corp合并的方式挂牌上市,后者是一家特殊目的收购公司(SPAC), 恒大汽车持有FF20%股份。法拉第未来在7月15日向美国证监会提交的一份文件显示,原定出资1.75亿美元的基石投资人将不会入股FF。多方消息称,此投资人为珠海国资委。

China’s real estate giant Evergrande Group on Thursday announced that it has properly resolved issues with China Guangfa Bank in the recent civil rulings on property preservation before litigation. Stock price of Evergrande surged 7.87 percent today, closing at HK$7.8. 


Wrapping up with a quick look at the stock market.


Chinese stocks closed higher on Thursday with the benchmark Shanghai Composite Index up 0.34 percent, at 3574 points. The Shenzhen Component Index closed 0.33 percent higher at 15262 points.


  • Biz Word of the Day


  • Cornerstone investors are investors with assured entitlement to subscribe for shares in an IPO at the offer price and thus subject to a lock-up of six months from the date of listing. Cornerstone investors are normally large financial institutions or groups. Their participation signifies their confidence in the IPO invested.


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Editor: LI Yanxia

Writer & Host: Stephanie LI

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(作者:李莹亮,实习生郎舒婷 编辑:于晓娜)