CX Daily: New pipeline network disrupts natural gas dynamics in China
Natural gas /
In depth: a new gas pipeline network is disrupting the dynamics of natural gas in China
China’s recent love affair with natural gas is taking a new turn after the creation of a nationwide pipeline network last year.
This change has changed the landscape in recent months among the three Chinese energy majors, China National Petroleum Corp. (CNPC), China Petrochemical Corp. (Sinopec) and China National Offshore Oil Corp. (CNOOC). Each one is suddenly profoundly modified following the creation of a modern national distribution network accessible to all.
This network came into being in October with the official launch of China Oil & Gas Network Corp., also known as PipeChina. After years of preparation, the new company took over the pipeline and gas assets, storage facilities and import terminals from the three state-run majors, CNPC, which operates under the name PetroChina. , bringing the most assets. The change was aimed at making the system more efficient and opening the door to competition between the three giants and potentially other future players by giving everyone access to the same national network.
China manufacturing resumption takes a hiatus, according to Caixin PMI
China’s manufacturing sector grew at the slowest pace in three months in June as output growth and new orders slowed, a survey sponsored by Caixin showed.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which provides an independent snapshot of the country’s manufacturing sector, fell to 51.3 in June from 52 the month before, according to a report released Thursday. A number greater than 50 indicates expansion, while a lower reading indicates contraction.
FINANCE & ECONOMY
China Achieves Goal of Building Moderately Prosperous Society, President Xi Says
China has achieved the goal of building a middle-income society and is on its way to becoming a “great modern socialist country,” President Xi Jinping said at an event celebrating the centenary of the Communist Party.
“China has reached the first centenary goal of building a moderately prosperous society in all respects,” President Xi Jinping told a crowd of thousands gathered in Beijing’s Tiananmen Square Thursday morning.
He also said the country had achieved “a historic resolution to the problem of absolute poverty”.
China’s largest bank abandons $ 3 billion coal-fired power plant in Zimbabwe
China’s largest bank has scrapped plan to finance a $ 3 billion coal-fired power plant in Zimbabwe, dealing a blow to coal developers in Africa who see China as the last potential backer of their projects .
Industrial and Commercial Bank of China Ltd. (ICBC) told Go Clean ICBC, an ad hoc body representing 32 environmental groups, that it would not fund the 2,800 megawatt Sengwa coal project in northern Zimbabwe, according to a June 18 email seen by Bloomberg. The message was sent to 350.org, one of the Go Clean groups. ICBC did not immediately respond to a request for comment.
Moody’s downgrades Evergrande despite progress in debt relief
Moody’s Investors Service downgraded China Evergrande Group’s credit rating to B2, as the debt-ridden real estate developer struggles to reduce debt.
“The downgrade reflects Evergrande’s weakened access to financing and reduced liquidity cushion given its significant debt maturities over the next 12-18 months amid tighter credit in China and volatility in capital markets, “said Cedric Lai, vice president and senior analyst at Moody’s. , a Wednesday declaration.
China strengthens supervision of local government borrowing
China’s Ministry of Finance has ordered that the allocation of quotas for local government borrowing through Special Purpose Bonds (SPBs) be linked to the performance targets of projects funded by the bonds.
The authorities are preparing to apply more rigorous supervision to the trillions of yuan of local public debt incurred to finance public infrastructure and other projects that often do not pay off as planned, increasing the risks associated with borrowing.
Quick shots /
JPMorgan Fund Adds Chinese Internet Stocks Affected by Crackdown
People of China and Singapore have benefited greatly from ties of their ruling parties, says Lee Hsien Loong
TRADE AND TECHNOLOGY
Chinese Offshore Drilling Rig Giant Receives $ 129 Million In SOE Fund Injection
China International Marine Containers (Group) Ltd. has signed a $ 129 million strategic cooperation agreement with a state-owned company to bolster its ailing marine engineering operations, the Shenzhen-based company said on Wednesday.
The public investment company Yantai Guofeng Investment Holdings Co. Ltd. agreed to invest 835 million yuan ($ 129 million) in a joint venture with China International Marine Containers. The agreement aims to integrate the container company’s marine engineering and fishing assets in the Yantai region and form a development platform for deep-sea industries, the company said.
The global shipbuilding industry suffers from years of oversupply and persistently low oil prices. Shipbuilding companies are transforming or reorganizing their business.
The glory days of real estate development are over, says Vanke, as he touts services
China Vanke Co. Ltd. said it would put more weight on real estate management and services as the country’s largest real estate developers change their business models to boost profitability amid tighter government restrictions on borrowing.
The move heralds a move away from the Hong Kong and Shenzhen-listed company’s focus on real estate development and towards a multi-pronged approach that balances other aspects of its business, executives said at the meeting on Tuesday. Vanke Annual General Meeting.
Initial Public Offering /
Didi gains 1% after second US IPO of Chinese company
Chinese rideshare giant Didi Global Inc. closed its U.S. business debut up 1% after raising $ 4.4 billion in an initial public offering (IPO).
Shares of the company’s U.S. custodian opened at $ 16.65 on Wednesday, up 29% from the offer price of $ 14. The shares closed at $ 14.14, giving Didi a market value of around $ 68 billion. Including stock options and restricted stock units, the company’s value exceeds $ 71 billion.
Consumer goods /
Cautious Chinese consumers give little weight to weak household goods market
China’s rapidly changing consumer goods market has seen a slow recovery, with consumers remaining cautious and tending to choose profitable foods, beverages and personal care products, according to a report by consultancy firm Bain & Co.
Sales of consumer staples grew 1.6% in the first quarter of this year compared to the same period in 2019, slower than the 3% growth recorded two years earlier, according to The report on the behavior of the country’s buyers released Tuesday. “Overall, growth is picking up steam but remains moderate,” the report said.
Quick shots /
Bubble tea maker falls flat on Hong Kong business debut
Christie’s names media veteran to lead China operation
China approves innovative new drugs for insurance pricing negotiations
Energy Insider /
Energy Insider: Shanxi Regulator Warns of Risks in Electricity Transactions; Datang Clean Energy Unit Appoints New Leader
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Today’s CX Daily was compiled and edited by Kevin Guo ([email protected]).