China Fund News Taylor

The currency circle has ushered in a historic day.

Not only was the network cable unplugged, but the electricity was cut off directly for you!

Sichuan clears back cryptocurrency mining

The mines were powered off collectively and all mines were closed

It is reported that due to policy reasons, China and even Sichuan, the world’s most important gathering place for Bitcoin mining machines, will usher in a large area of ​​mining machines. According to calculations, the shutdown load is about 8 million. Following Inner Mongolia and Xinjiang, Sichuan, which is dominated by clean energy and hydropower, failed to become the last bastion of Bitcoin mining in China.

A document “Notice of the Sichuan Provincial Development and Reform Commission and the Sichuan Provincial Energy Bureau on the Cleanup and Shutdown of Virtual Currency “Mining” Projects” shows that for virtual currency “mining”, relevant power companies in Sichuan need to start on June 20 The screening, clean-up and shutdown work has been completed a few days ago.

The document shows that the people’s governments of various cities (prefectures), the State Grid Sichuan Electric Power Company, the Provincial Energy Investment Group, the central power generation enterprises in Sichuan, and the provincial state-owned power generation enterprises should follow the spirit of the 73rd executive meeting of the provincial government to implement the State Council’s financial The 51st meeting of the Stability and Development Committee on the requirements of “combating Bitcoin mining”, hereby notify the relevant matters as follows: 1. Complete the screening and shutdown of key objects. The Provincial Electric Power Company has reported 26 suspected “mining” projects, and the screening, cleaning and shutdown will be completed before June 20; 2. Carry out self-examination and self-correction by power generation companies, and immediately stop supplying power to virtual currency mining projects; 3. Do a thorough investigation and investigation. The municipal (prefecture) governments will immediately carry out a dragnet investigation, and the suspected projects will be shut down immediately and completed before June 25; 4. Earnestly fulfill the main responsibility, and must complete the cleanup and shutdown tasks with quality and quantity. Due to the abundant hydropower resources, a large amount of hydropower is abandoned in Sichuan during the wet season. In this regard, the Sichuan Provincial Government Office issued the “Sichuan Province Hydropower Consumption Industry Demonstration Zone Construction Implementation Plan” in August 2019, confirming Pilot projects for hydropower consumption industry demonstration zones will be carried out in 6 cities and prefectures, including Ganzi, Panzhihua, Ya’an, Leshan, Liangshan, and Aba. In 2020, Sichuan has successively approved two batches of hydropower consumption demonstration enterprises, and the list has covered many mining enterprises in the name of big data technology. On the evening of the 19th, a small video began to circulate in the circle of friends. The content was that the miners were cutting off the power of the Bitcoin mining machine, and the rows of beating green lights went out one by one. Many people at the scene said: Bye, See you. A miner A said, “An era is over, bye bye! Although the breeze is hard to blow me, how can the moon not shine. The ice can’t stop the water, and the dead wood will be in spring again.” Miner B also issued an article saying, “At this time last year, it was just in the domestic unblocking period. The first conference in the circle was the Sichuan-Chengdu Water-rich Mining Conference. Today’s time has passed. The mining boom at that time was integrated into the bright galaxy tonight. Later, industry practitioners You should also remember the glory here.” Practitioner C said, “Sichuan’s 8 million loads will be collectively shut down at 0:00 tonight. In the history of the blockchain, the most tragic and most spectacular scene of miners is about to happen. How far-reaching the impact is here will be known in the future. ” Practitioner D: “Today, we can officially announce the end of an era.” Of course, the happiest thing is that graphics cards can finally be reduced in price. Bitcoin’s entire network’s computing power plummeted overnight According to reports, Sichuan is the largest gathering of Bitcoin miners in China and even in the world, with approximately 8 million loads being used for cryptocurrency mining. According to data from btc.com, the current average computing power of the entire Bitcoin network is 126.83 EH/s, which is nearly 36% lower than the historical high of 197.61 EH/s (May 13). At the same time, Bitcoin mining pools with Chinese backgrounds such as Huobi Pool, Binance, AntPool and Poolin have fallen sharply in their computing power. The decline in computing power in the past 24 hours has been 36.64%, 25.58%, 22.17%, and 8.05%, respectively. Many places have already shot On May 21, the Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) held its 51st meeting to study and deploy key tasks in the financial sector in the next phase. The meeting was presided over by Liu He, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, and Director of the Financial Committee. Relevant responsible comrades from member units of the Financial Committee attended the meeting. Two points of this meeting were impressive: The first is to crack down on Bitcoin mining and trading activities, and resolutely prevent individual risks from being transmitted to the social field. The second is to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish financial illegal and criminal activities. In late May, Inner Mongolia, Sichuan and other places successively held seminars on virtual currency mining to strengthen the crackdown on related behaviors. On May 25, the Inner Mongolia Autonomous Region Development and Reform Commission issued the “Eight Measures on Resolutely Cracking Down on and Punishing Virtual Currency “Mining” (Draft for Comment). On June 9, the Qinghai Provincial Department of Industry and Information Technology issued the “Notice on the Comprehensive Shutdown of Virtual Currency “Mining” Projects”, requesting clean-up and rectification. It is strictly forbidden to initiate and approve various virtual currency “mining” projects in various regions, and to completely shut down all existing virtual currency “mining” projects. At the same time, resolutely investigate and rectify the project entities that set up projects in the name of big data, supercomputer centers, etc. but are engaged in virtual currency “mining”. On June 12, people from the Yunnan Provincial Energy Administration Office confirmed that according to the notice, various power-using departments will be organized to carry out joint inspections in a timely manner. At the end of June this year, Bitcoin mining companies will be cleaned up and rectified, and Bitcoin mining companies relying on power generation will be seriously investigated and punished. Enterprises, unauthorized private connection of electricity, evasion of national transmission and distribution fees, funds, and additional profit-making illegal activities, once discovered, immediately suspend power supply; severely investigate and punish power generation companies who use the generated electricity to privately transfer bitcoin without permission The illegal behavior of mining companies to obtain illegitimate benefits by supplying power; seriously investigate and deal with hidden dangers in the power use of Bitcoin mining companies, and immediately order them to shut down and make corrections once they are discovered

Data map

As an important gathering place for the transfer of the domestic electronics industry, emerging market countries such as Vietnam, India, and Malaysia, due to the recent rebound of the new crown epidemic, have caused some factories to suspend operations in some areas, and there is news that industry orders are returning to the country.

A reporter from the Securities Times·e Company found that the current volume of electronic orders returning to China is limited and restricted by factors such as limited production capacity and different division of labor. The corresponding domestic enterprises have limited capacity; on the other hand, due to the epidemic situation and global core shortages, etc. Under the influence, the security of the supply chain has gradually become a consensus, which further catalyzes the diversion, migration, and fluctuation adjustment of electronic products in the international industrial chain.

(As of June 14, 2021, Malaysia, India, Indonesia, Vietnam newly confirmed cases of new crown epidemic data unit per million population data source: Our World in Data)

Reflow of orders but limited production capacity

“There are some overseas orders returning to China, but we are very cautious in taking orders.” As a leading mobile phone contract manufacturer in China, the company has factories in Indonesia and India. Company executives told reporters that these return orders have their own overseas customers as well as other manufacturers’ transfers, but the problem is that the domestic production capacity is now fully loaded.

“Now there is still a shortage of chips such as memory,” the above-mentioned executive told reporters. Due to factors such as the limited capacity of upstream fabs and the stockpile in the industry, the global core shortage problem has not been fundamentally alleviated, which has also affected the ability to receive orders to a certain extent. According to a survey by the market research agency TrendForce, the recent graphics DRAM contract market is still in short supply, and the order fulfillment rate of some small and medium-sized customers is only about 30%. It is expected that this tight supply and demand situation will continue into the third quarter.

In the semiconductor industry, Malaysia and the Philippines have gathered assembly and test production links, including Intel, Texas Instruments, ASE, A-share Tongfu Microelectronics, Huatian Technology, etc., all set up factories there. Recently, these countries have also rebounded from the epidemic. Malaysia has even started Full movement control will be implemented from June 1st.

However, the reporter learned that the semiconductor industry is not restricted by epidemic prevention and control, and local packaging and testing companies and production lines in Malaysia are still running; and the current domestic packaging and testing companies are generally full-loaded and expanded, and their ability to undertake large-scale return orders is limited.

“We can’t accept domestic orders,” the staff of Huatian Technology’s Secretary Office told reporters that the company’s overseas factories are operating normally and have not been affected by the epidemic. In the work deployment in 2021, Huatian Technology will speed up the increase of new production capacity as the top priority to ensure that the company and Malaysia Unisem and other subsidiaries are in place to form production capacity as soon as possible to meet customer needs and effectively expand market share. The company has planned to increase capital of 5.1 billion yuan, which will be used for the expansion of integrated circuit multi-chip packaging projects.

Domestic head electronic component consignment manufacturers also told reporters, “The panic has increased due to the epidemic. According to our understanding, there are not many return orders in the field of electronic components, which is too exaggerated.”

Faced with the impact of the epidemic on production, companies will consider adjusting orders in different regions. Recently, Taiwan’s packaging and testing plant KYEC was exposed. Affected by the epidemic, adjustments in personnel and operation schedules will reduce the company’s output in June by 30%-35%. Industry insiders expect KYEC to transfer some orders to the company’s Suzhou plant. .

As one of Apple’s suppliers, Lens Technology has a factory in Vietnam. Regarding the impact of the epidemic in Vietnam, the company’s executives told reporters that after the local epidemic, Lens Technology communicated with customers on re-adjusting production arrangements and reached an agreement. Related products have been arranged in Hunan related parks, and the related parks have sufficient production capacity. It is not expected to have a negative impact on customer product delivery.

In addition, Chaoyang Technology is engaged in earphones and electro-acoustic product accessories. The company said in response to investors’ questions that the impact of the Vietnam epidemic on the company is relatively limited. According to reports, Chaoyang Technology has set up two wholly-owned subsidiaries in Vietnam. The upgrade of the epidemic prevention and control measures in Vietnam involves the subsidiary Viet Nam Lusheng belonging to the Beijiang area. Currently, it is actively cooperating with the local government’s epidemic prevention requirements and strictly implementing the epidemic prevention policy; the company It has been coordinating the operations of the two subsidiaries in Vietnam, and has adjusted part of the production capacity and production tasks to another Vietnam Chaoyang Industrial Co., Ltd.

Zhilai Technology, which is engaged in automatic storage cabinets, said that the Vietnam epidemic has had a certain impact on the efficiency of the procurement of some materials and the export of products in the Vietnamese factory, and has not had a significant impact on the production and operation of the Vietnamese factory. The expansion of the new production capacity of the factory is still progressing in an orderly manner, and it is expected to start production by mid-year. The company’s main production base is located in Xianning, Hubei. If the Vietnam epidemic is out of control and the factory cannot produce normally, the Hubei factory will take over the production tasks of the Vietnam factory and will not affect the production and delivery of orders.

The epidemic has not stopped industrial migration

“As far as we know from the industry chain, the current return of electronic orders is mainly small home appliances and handheld products, which has little impact on customer orders such as Apple and Samsung.” Dong Shimin, director of the Yuanchuan Research Institute, told reporters.

In fact, under the background of Sino-US trade frictions and rising labor costs in the mainland, listed electronics companies have continued to set up factories in Vietnam, India and other places in recent years, even during the epidemic. Among them, Vietnam is the hottest.

According to statistics on foreign investment in Vietnam from the Ministry of Planning and Investment of Vietnam, in the first four months of this year, Vietnam’s attractiveness for foreign direct investment is still relatively optimistic. Funds increased by 24.7% year-on-year; China’s investment in Vietnam has ranked fourth in the first three months of this year, second only to Singapore, Japan, and South Korea. According to Vietnamese statistics, in 2020, China is the third largest source of investment in Vietnam, with a total registered investment of US$2.46 billion, accounting for approximately 8.6% of Vietnam’s total foreign direct investment in the whole year.

Vietnam has also introduced a number of policies to attract foreign investment, becoming an investment destination of “China+1” under the background of Sino-US trade frictions. According to the reporter’s understanding, Vietnam has passed the “Investment Law” (Amendment), “Enterprise Law” (Amendment), “Public Private Partnership (PPP) Investment Law” and other laws on investment and operation, simplifying investment procedures and making it more transparent. And diversify investment forms, and even optimize supplementary investment preferential mechanisms. In addition, Vietnam is a member of the Regional Comprehensive Economic Partnership Agreement (RCEP), the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP), and the Vietnam-EU Free Trade Agreement (EVFTA), which facilitates foreign investment. condition.

At the same time, Vietnam also gives preferential taxation. According to the disclosure of Lens Technology, the corporate income tax rate of the Vietnamese subsidiary is 20%. Starting from the year of profitability, it will be exempted for the first 2 years and reduced by half for the next 4 years.

In response to the recent rebound of the epidemic, the Vietnamese government requested that priority be given to key industrial production provinces in northern regions such as Beijiang and Beining. The Vietnamese government has instructed various departments and agencies to give priority to the above-mentioned two provinces to provide the new crown vaccine for vaccinating workers in industrial parks to ensure uninterrupted production and operation. In addition, the government has also introduced financial measures such as loan-free interest rates for customers affected by the epidemic.

From the data point of view, the enthusiasm of A-share listed companies to invest in Vietnam is high, and the electronics industry in particular surpasses other Southeast Asian countries. In 2020, the new crown epidemic is raging around the world, but the number of listed companies raising investment in Vietnam projects has increased significantly. Wind statistics show that since 2020, listed companies such as Yutong Technology, Intellectual Power, and USI have invested in Vietnam’s packaging expansion, precision technology and wearable equipment through convertible bonds, additional issuances, and other projects. In addition, they have jointly created lawns and Huali. The initial IPO fundraising of listed companies such as the Group and Aimer shares also involved local projects in Vietnam, and the total amount of relevant fundraising exceeded 3.4 billion yuan.

Investors’ attention to the direction of the industry’s shift has also continued to increase. According to the statistics of Tianyan Check, the number of survey minutes containing the keyword “Vietnam” began to increase in 2018, and the number of disclosures reached 58. Subsequent to this, the number has basically doubled in 2019 and 2020, reaching 204 by 2020, and it has been close to 100 since this year. seal.

“From the historical background of industrial transfer in Southeast Asia, as early as the 1990s, Japan had already begun to transfer to Southeast Asia and other countries.” Dong Shimin told reporters that from a time point of view, after China joined the WTO, Southeast Asia is also trying to attract industries to the local area. However, at that time, the advantages of labor cost replacement were not obvious, and corporate management experience was insufficient, and no obvious results were achieved in the end.

Dong Shimin introduced that by about 2012, Samsung began to try out the migration of some domestic industries with relatively low technical requirements. Apple suppliers such as Goertek and Luxshare Precision are also transferring, and with the continuous improvement of management level, By training local employees, increase the success rate of industrial transfer.

The executives of Lens Technology introduced to reporters that in recent years, they have continuously improved the layout and development of the industrial chain. They have set up 9 R&D and production bases in China and Vietnam, which can better respond to changes in the external environment, meet the diverse needs of customers, and optimize products. Delivery location and supply capacity to diversify supply chain risks. At present, each of the company’s production parks is self-built and owned by the company, with complete ownership, and the level of automated and intelligent production is stable and leading in the industry.

(Source: CICC)

Apple suppliers intensively go to Vietnam

Tracing the driving force behind the changes in the industry, following customers and the market has become the most critical factor in the migration of the electronics industry, and will even set up factories in different countries according to different customer needs. Sunny Optical executives also introduced earlier that the company’s global layout is customer-centric and follow customers for localized production. For example, the establishment of factories in India is to facilitate cooperation with OPPO, vivo and other customers, and the production in Vietnam is to cooperate with Samsung.

As the vane of the consumer electronics industry, Apple has built a diversified manufacturing system as the company’s long-term strategy. Signs of industrial relocation can also be seen in its latest fiscal year 2020 supplier list: On the one hand, there are 51 suppliers in mainland China (including Hong Kong, China), surpassing the number of suppliers in Taiwan, China for the first time in history; on the other hand, The number of Apple suppliers in Vietnam has increased from 14 in fiscal year 2018 to 21, which is even twice the number of Indian manufacturers in the same period.

If you further compare the details of the changes in the number of manufacturers in the 2018 and 2020 fiscal years, you can find that Apple suppliers in mainland China have become the main increase in setting up factories in Vietnam. Among them, after Goertek and Yutong Technology, Luxshare Precision and Lens Technology A-share listed companies such as A-shares, Lingyizhizao, and Meiyingsen have set up factories in Vietnam, replacing some of the Japanese and Korean suppliers that had previously set up factories there.

Mei Yingsen’s board secretary, Liu Huifeng, also told reporters that the main purpose of going to Vietnam to set up factories is to follow customers and make matching packaging. “It would be too expensive to ship the packaging from China, and we will lose the customer if we don’t go.” As for whether it will continue to increase overseas production capacity in the future, Mei Yingsen said that it is very likely.

Yutong Technology, a counterpart of Meiyingsen and a supplier of Apple, established its first production base in Vietnam as early as 2011, and has now expanded from Vietnam to India, Indonesia and Thailand and established 6 production bases. In April 2019, it used its own (self-raised) funds to purchase the original leased plant and land use rights, at a cost of approximately 60.34 million yuan; in April last year, the company also raised 1.4 billion yuan through the issuance of convertible bonds, including fundraising Invested in Vietnam and Indonesia to expand the production line of electronic product packaging boxes.

On the whole, compared with the domestic Apple industry chain, Southeast Asia’s production capacity is relatively small, and it undertakes the transfer of relatively peripheral and low-end industries, but it is already on the track of gradual growth. In the introduction to investors, the executives of Goertek pointed out that the company’s manufacturing is centered in Weifang and Vietnam is supplemented; the company has been in Vietnam since 2013 and now has a considerable scale. From the perspective of revenue share, last year, Goertek’s overseas revenue contribution reached 50.7 billion yuan, and its share increased to about 88% year-on-year.

According to industry speculation, the production capacity of Apple headsets that Luxshare Precision is engaged in in Vietnam has already exceeded 10% and will gradually increase. In addition, in view of the complexity of the mobile phone industry chain, often mainland manufacturers will be responsible for the production of precision parts, and then shipped to Vietnam and other places to complete the final relatively easy assembly link, and then export overseas.

Compared with Vietnam, India is another electronics industry undertaking. Although the number of Apple suppliers is not as high as that of Vietnam, the majority of Taiwan-based assembly plants are mostly.

Representatives of ODM manufacturers who set up factories in India told reporters that in terms of labor costs, Vietnam is twice as expensive as India. The local labor wage in Vietnam is equivalent to RMB 4,000/month, and Indian workers are about 2,000 yuan/month; however, the company did not choose Vietnam. , But India, the main reason is that in addition to satisfying customers’ global delivery needs, India is also an important mobile phone consumer market, and enjoys preferential tariffs.

From a tariff point of view, India’s local production and assembly also have advantages. The aforementioned manufacturer introduced to reporters that according to past data, the tariff cost of local production in India is about 18% less than that of production in China for the same export to Europe and the United States.

“India has ample local labor, which is cheaper than Vietnam’s labor cost. It is suitable for large-scale assembly, packaging and other relatively low-tech links. Many precision parts are shipped from China to India for assembly.”

According to the IDC report, due to the impact of the new crown epidemic, the Indian smartphone market shrank by 2% in 2020, with a total sales volume of about 150 million units. Among the top five, there are four Chinese brands, namely Xiaomi, Vivo, realme and OPPO. Chinese brand Samsung Electronics ranked second.

The epidemic is also expected to affect India’s local mobile phone production this year. TrendForce further pointed out that the current top five mobile phone brands in the world, Samsung, Apple, Xiaomi, OPPO, and vivo, all have production lines in India or are produced through OEM factories. The output, and the proportion is increasing year by year, the current output Mainly to supply local demand. Based on the local production situation at this stage, it is estimated that the production of 12 million mobile phones in the second quarter to the third quarter of this year will be affected. Affected by the epidemic, India’s annual production volume may decline by 7.5%.

Ensuring the security of the supply chain has become a new consideration for migration

In addition to attracting foreign investment, India is actively promoting its own industrial substitution, using the mobile phone industry as a pilot, and it has begun to show results.

Zhang Zhiwei, chief economist of Insurance Bank Investment, emphasized that India is a country that cannot be ignored. “Although India’s current industrial chain system is not perfect, the current Moody’s government is ambitious and has stronger executive power than before. The PLI (Production Linked Incentive) project will do better.”

According to reports, in April 2020, the Indian government launched a production-linked incentive strategy to promote import substitution in the mobile phone industry. This strategy encourages localized production of mobile phone manufacturers and subsidizes 4-6% of the company’s revenue over a five-year period. At present, about 16 manufacturers have joined the funding program, including Hon Hai Foxconn and Samsung. According to statistics, after the exit of the strategy, participating manufacturers have invested 13 billion rupees and produced more than 20,000 jobs.

The Indian government is also promoting import substitution projects in more fields such as auto parts, home appliances, medicine, solar energy, and communications. Indian officials estimate that the plan will increase output by US$520 billion in the next five years.

Zhang Zhiwei said that “India does not need to be China”. From a macro perspective, India’s population base is large enough, and India will be one of the few countries that can maintain an economic growth rate of 8% in the next 20 years.

In addition to traditional geopolitical factors, under the disturbance of core shortages and epidemics, ensuring the security of the supply chain has gradually become a new driver of promoting the transfer of the electronics industry.

A few days ago, the U.S. Senate passed the “U.S. Innovation and Competition Act,” authorizing approximately US$190 billion to strengthen US technology and research, and separately approved spending of US$54 billion to increase US production and production of semiconductors, microchips, and telecommunications equipment. the study. US Secretary of Commerce Gina Raimondo has said that the funds may be used to build 7 to 10 semiconductor factories in the United States.

In addition to the United States, the European Union and South Korea have also taken measures to strengthen supply chain security, while Southeast Asia and other countries are preparing for corresponding industries. But this is not a cost-compliant plan.

According to a joint study by BCG and SIA, if a fully self-sufficient localized supply chain is established everywhere, at least US$1 trillion in R&D and capital support will be required, and the overall price of semiconductors will rise by 35%-65%, ultimately increasing consumption The cost of electronic equipment

Dong Shimin told reporters that issues such as the epidemic and the lack of cores have made countries aware of supply chain security issues. Although not building a supply chain will increase costs, it may still become a long-term trend; on the other hand, the supply chain is completely shifted from China. Southeast Asia and other places may also have some volatility adjustments due to the epidemic situation and the steady performance of the mainland’s supply chain. For example, the previous plan to transfer all out, the transfer may be reduced after this round of the epidemic.

In addition, the goal of carbon neutrality may also further trigger the trend of industry transfer to developing countries. Zhang Zhiwei pointed out that the United States and China will certainly advance the carbon neutrality target, but countries like Vietnam are objectively not willing to set too high a carbon neutrality target. In the future, the transfer of high-energy, low-end industries will be a major trend.

Regarding the concerns about the hollowing out of the domestic industry due to the transfer of industries to Southeast Asia and other places, representatives of international OEM manufacturers told reporters, “There is no need to worry about this problem.” There is a larger domestic market and a more complete supply chain, and the company is constantly strengthening. R & D strength to improve the level of automation. “After all, it is mainly low-end migration to Southeast Asia and even Brazil.”

Observation: Emerging market countries ignited the movement of new energy vehicles

Emerging market countries in Southeast Asia and other places are no longer satisfied with their role as destinations for foreign-funded industries, and have set the banner of supporting local industries and independent innovation; and new energy vehicles have almost become the same choice.

For a long time, countries such as Vietnam and India have been considered to receive dividends from Sino-US trade frictions. With cheap labor costs, foreign investment conditions, tariff differences and other conditions, they have accepted a large number of low-end mobile phone orders from international customers such as Apple and Samsung. However, after all, the economic structure that relies on foreign investment has natural drawbacks. In addition, domestic labor costs are no longer cheap, and the new crown epidemic has disrupted the pace of industrial transfer to a certain extent. Promoting domestic industrial upgrading has become an important issue considered by emerging market countries.

New energy vehicles are rare innovation carriers that can gather upstream and downstream industries extensively, and it is not difficult to understand that they have been selected as an important option for development. From the perspective of the path, emerging market countries will take advantage of domestic manufacturing, start with the introduction of foreign brands, and implement localized production. They will also join the supply chain of China’s new energy automobile industry to incubate their own car-making forces.

According to the news, Tesla has begun to recruit sales and marketing directors and human resources directors in India; this will be Tesla’s latest response to the Indian production-linked incentive plan (PLI). Under the PLI plan, the Indian government of Moody’s encourages international manufacturing giants to produce locally in India and export them all over the world. In addition, India has approved a plan worth 181 billion rupees (2.5 billion US dollars) to increase the battery storage capacity to 50GWh.

In addition, as a major automobile producer in Southeast Asia, Thailand has been actively developing new energy vehicles, aiming to become an electric vehicle manufacturing export center in Southeast Asia, and has formulated a strategic plan for the development of new energy vehicles, with the goal of basically replacing fuel vehicles with electric vehicles after 2036. .

In May of this year, Hon Hai Precision signed a memorandum of cooperation with Thai National Petroleum Corporation to establish an open platform for the electric vehicle industry in Thailand to produce electric vehicles and provide key To launch new models. Prior to 2018, BYD delivered 101 E6 new energy electric vehicles to Thailand, and local Thai companies also signed an agreement with BYD to plan to introduce another 1,000 E6 electric vehicles in the next few years.

Indonesia, on the other hand, is making use of its advantages in resource mines to develop new energy vehicles. It is understood that Indonesia has the necessary minerals for new energy vehicle batteries such as nickel ore, cobalt, and copper, and plans to become a global production center for electric vehicle power batteries. The Indonesian government aims to export 200,000 electric vehicles by 2025, or allow local brand electric vehicle exports to account for 20% of total motor vehicle exports.

In December 2020, the new energy automobile battery manufacturing giant Ningde Times has signed a contract with the Indonesian government to invest 5 billion US dollars to build a lithium battery plant. The project is scheduled to be put into operation in 2024. This will be the second time of the Ningde Times after the plant in Thuringia, Germany. Overseas factories.

Vietnam has also begun to develop new energy vehicles, and the pace is faster. In the past two years, as the government has introduced support policies for the development of electric vehicles, the sales volume of electric vehicles has increased at an annual growth rate of 500,000 to 600,000, and local enterprises have been actively cultivated.

Vinfast is an automobile subsidiary of Vingroup, Vietnam’s largest comprehensive enterprise group, and the first automobile manufacturer in Vietnam. It has become the fifth largest automobile brand in Vietnam last year and plans to go public in the United States. The latest valuation exceeds US$50 billion, which is close to Wei Come by car.

(Sales of VinFast and other auto companies in Vietnam in 2020)

In March of this year, the Taiwanese solid-state battery manufacturer Huineng Technology and VinFast recently announced that they have signed a memorandum of cooperation (MOU) to establish a joint venture company in Vietnam to increase the commercialization of local solid-state batteries; in addition, Hon Hai also reported a plan to acquire VinFast electric car production line news, and VinFast hopes to retain the electric car block business.

A-share listed companies have also begun to share in Vietnam’s electric vehicle projects. According to Feilong’s introduction to the media, the company has been appointed by VinFast for the electronic water pump and electronic three-way valve project of three pure electric vehicles. It is expected that the first vehicle will be mass-produced in October 2021; the Vinfast pure electric vehicle project and The off-road vehicle project will bring more than 100 million yuan in sales contribution to the company.

The United Nations Department of Economic and Social Affairs tweeted: “Today, we cherish the memory of a true food hero. Chinese scientist Yuan Longping has freed millions of people from hunger by breeding the first hybrid rice variety. He died today, at the end of the year. 91 years old, but his legacy and mission to end hunger will continue.” Singapore’s South China Morning Post published a report entitled “People pay tribute to Yuan Longping who helped China get rid of hunger”, and mentioned that the United Nations praised Yuan Longping for his contribution to food security and poverty eradication. Japan’s “Nikkei Asian Review” issued an obituary for Yuan Longping. The article stated that for more than half a century, Yuan Longping has been committed to the research and development of rice breeding in order to increase food production and has made great contributions to solving China’s food problems. The “New York Times” published a long article reviewing Yuan Longping’s life, saying that “the high-yield hybrid rice he developed in the 1970s has greatly increased the output of Asia and Africa and saved countless lives.” “Yuan Longping’s research has made him A national hero, he is also a symbol of China’s pursuit of science.” The Associated Press reported that Yuan Longping and his team have cooperated with dozens of countries and regions around the world to solve the problems of food security and malnutrition. The hybrid rice developed by Yuan Longping “helped feed our world”. The Associated Press also reported on Yuan Longping’s contributions in his later years. “Even in his later years, Yuan Longping did not stop researching. In 2017, he cooperated with the Hunan Academy of Agricultural Sciences to cultivate a low-cadmium indica rice for areas suffering from heavy metal pollution. , Which reduced the cadmium content in rice by more than 90%.” The British “Independent” stated: “The high-yield rice varieties he developed have helped feed people all over the world.” The “Independent” also cited information from the World Food Awards, the highest international honor in the field of agriculture, as Yuan Longping’s The work helped China realize the transition from food shortage to food security within 30 years. The German “Daily News” praised Yuan Longping and said: “Ensuring that people all over the world can eat has been Yuan Longping’s main goal for decades. In China, this goal has been basically achieved, and now the agricultural scientist who died at the age of 91 The research done has made a significant contribution to this. Since the early 1970s, the special rice varieties cultivated by Yuan and his research team have significantly improved food yields.” The “Daily News” also mentioned that in 2018, Yuan Longping said in an interview with German Television One (ARD) that all of this stemmed from his “dream of enjoying the cool under the sun”. He told reporters: “In this dream, We saw huge rice, the ears were as luxuriant as a broom, and the rice grains were as big as peanuts. We lay under these huge straws to enjoy the cool.” According to the report, by the early 1970s, most biologists in the world He agronomist believes that hybrid rice breeding is not feasible. But Yuan Longping used his research to prove to the world that it can be successful, and became a scientific hero in China because of hybrid rice. Source: Science and Technology Daily

Screenshot source: Wind Specifically, as of the close, the Dow fell 321.41 points, or 0.94%, to 33815.90 points; the Nasdaq fell 131.81 points, or 0.94%, to 13818.41 points;S&P 500The index fell 38.44 points, or 0.92%, to 4134.98 points. U.S. stocks’ large technology stocks fell across the board,appleFell 1.17%,AmazonFell 1.58%,NetflixFell 0.02%,GoogleFell 1.13%, Facebook fell 1.64%,MicrosoftFell 1.31%. Bank stocks fell across the board, JPMorgan Chase fell 2.06%,Goldman SachsFell 1.29%,CitiDown 1.16%,Morgan StanleyFell 1.26%,Bank of AmericaFell 0.9%,FuGuo bankFell 1.23%. Energy stocks fell across the board,Exxon MobilFell 1.25%,ChevronFell 1.76%,ConocoPhillipsFell 1.14%,SchlumbergerFell 1.75%,Occidental PetroleumFell 1.47%. Popular Chinese concept stocks have mixed ups and downs.Big new energyUp 14.14%,TouchPal Technology (CTK.US)Up 9.86%,RenrenUp 8.28%,1 Medicine NetUp 7.11%,PinduoduoUp 3.61%,JingdongUp 0.52%,Sina WeiboUp 0.51%;Lots of roomsDown 11%,Learn fromFell 9.17%,Hong En EducationFell 6.55%,Canaan TechnologyFell 4.43%,AliFell 0.07%,Baidu GroupFell 0.04%. New energy auto stocks went up and down mixed,NIO (NIO.N)The car rose by 1.75%,Xiaopeng MotorsFell 0.74%,Ideal carRose 1.31%. In the news, it was reported that US President Biden proposed to impose a capital gains tax of up to 43.4% on the wealthy. In European stock markets, the London Stock Market “Financial Times” average price index of 100 stocks closed at 6938.24 points, an increase of 42.95 points or 0.62% from the previous trading day. The CAC40 index of the Paris stock market in France closed at 6,267.28 points, an increase of 56.73 points or 0.91% over the previous trading day.Frankfurt Stock MarketGerman DAX IndexIt closed at 15320.52 points, an increase of 124.55 points or 0.82% over the previous trading day. In terms of international oil prices, West Texas Intermediate (WTI) futures for June delivery on the New York Mercantile Exchange rose 8 cents, or 0.1%, to close at $61.43 per barrel; LondonIntercontinental Exchange (ICE)The price of Brent crude oil futures for June delivery rose 8 cents, or 0.1%, to close at $65.40 per barrel. In terms of international gold prices, the most active June gold futures price on the New York Mercantile Exchange gold futures market fell by 11.1 U.S. dollars from the previous trading day to close at 1,782 U.S. dollars per ounce, a decrease of 0.62%. As of the end of the New York trading session, the US dollar index, which measures the US dollar against six major currencies, rose 0.20% to 91.3389. (Zhongxin Jingwei APP)

Since the end of March, the price of gold has bottomed out and rebounded. Recently, it has successfully exceeded $1,750 per ounce, and the market’s attention to the precious metal market has risen again.

The price of gold bottomed out and rebounded with fire in the precious metals sector

On April 15, the international gold price hit a maximum of 1770.6 US dollars per ounce, setting a new high in the past two months. In the early trading of April 16, the overall performance of precious metals in the domestic futures market was relatively strong. The main Shanghai gold contract reported a rise of 1.39% in early trading to a maximum of 374.08 yuan/gram, which was the lowest of 354.58 yuan/gram at the beginning of March, which has risen more than 5%.

Affected by signs of a bottoming out of gold, the precious metals sector trended strongly in the early trading on the 16th. As of the morning’s close, the Wind Precious Metals Index rose 1.71%, individual stocks Zhongyuan City Gold rose 8.19%, Chifeng Gold rose 5.09%, and Yintai Gold rose nearly 5%.

“The recent rise in gold prices is mainly due to the weakening of the U.S. dollar and the fall in U.S. Treasury yields that have boosted the attractiveness of gold prices. The logic behind this includes that on the one hand, Fed Chairman Powell’s speech made the market believe that easing will continue; on the other hand, the international situation has intensified. The United States will expel Russian diplomats and sanction 20 companies and individuals, and Russia is also prepared to do the same. The degree of retaliation has led to rising global risk aversion. In addition, the central bank’s increase in gold reserves is also the reason for the recent rise in gold prices.”Xu Yang, chairman of Shanghai McRong Information Consulting, said in an interview with a reporter from Securities Times·e Company.

Zhang Wei, an analyst at Zhuochuang precious metals, also believes that international gold prices have recovered from low levels due to the recent weakness of the U.S. dollar and the containment of rising bond yields in various countries. In particular, Fed officials have recently intensively voiced that they have not considered tightening easing and raising interest rates in the short term. On the other hand, with the recovery of retail and consumption exceeding expectations, expectations of higher inflation have been continuously corroborated, so that the rise of social real interest rates has been hindered, and gold The significance of investment and inflation hedging has become apparent, which is good for the price of gold.

In response to the recent rebound in gold trends, Cheng Xiaoyong, director of the Baocheng Futures and Finance Research Institute, also pointed out that the main logic of the recent gold market has evolved into a comparison between the rate of inflation and the rise in the nominal interest rate of the US dollar. The fall in short-term U.S. Treasury yields may be the main reason for the rebound in gold, and the recent fall in U.S. Treasury yields may have a lot to do with the slowdown in U.S. Treasury issuance. At the same time, Biden’s 2.3 trillion infrastructure plan and the rebound in the U.S. service industry price index mean that the momentum for U.S. inflation to rebound has increased. Therefore, in the case of short-term U.S. Treasury yields falling, the rise in US dollar real interest rates has slowed, stimulating some Gold buy order entry.

He believes that since this year, changes in U.S. bond yields are the most important factor affecting asset prices. Since February, volatility in global financial markets has been related to the sharp rise in U.S. bond yields. Not only did U.S. stocks undergo a sharp downward adjustment, but the prices of copper, crude oil, and gold also fell sharply. However, in early April, U.S. bond yields fell to a certain extent, which may be an important reason for the phased rebound in gold prices.

Will the “Golden Bull” appear again?

” Recently, gold has shown signs of bottoming out and rebounding, which may mean that the trend of gold’s high correction that has lasted for two quarters has temporarily come to an end. However, from the long-term mainstream logic, with the popularization of vaccines, the US economic recovery is expected to accelerate, and employment and economic data are significantly better than expected. The market expects that the Fed’s loose monetary policy will end early, and there is an upward expectation of US real interest rates. It constitutes a continuous pressing effect. Zhan Dapeng, a precious metals analyst at Everbright Futures, told a reporter from Securities Times·e Company that in the short to medium term, gold has an opportunity for a rebound. First, judging from the Fed’s statement on expectations management, the asset purchase reduction plan may appear as early as possible. In the first quarter of next year, interest rates may increase in 2023, that is, the market has “premature expectations”, gold “shot” ahead of schedule; second, with the implementation of Biden’s stimulus plan and the launch of the infrastructure plan, the US fiscal deficit continues to expand. It constitutes a medium- and long-term negative for the U.S. dollar, and gold has only a callback expectation and no bear market expectation. Since late March, whether it is the rise of U.S. long-term bond yields or the rebound of the U.S. dollar, the negative pressure on gold has been weakening. This is also gold. One of the signs of bottoming.

“The only concern now is that global gold ETF holdings are still dominated by outflows. Institutions have declining confidence in gold holdings. The weakness has become a consensus in the market. Therefore, when gold rebounds in the second quarter, the increase or decrease in gold ETF holdings will be very high. Importantly, if the capital holding confidence returns, the gold rebound may be firmer and longer-lasting, otherwise it will be short-lived.” He said.

Cheng Xiaoyong also believes that from a long-term historical perspective, 2020 will mark a long-term low in inflation and interest rates. The Federal Reserve also strives to avoid negative currency market repo exchange rates. This means that the real interest rate of the US dollar may enter a long-term period. In the upward cycle, gold investment demand will continue to fall, and there will be little room for gold prices to rebound.

Xu Yang said that from a technical perspective, gold as a whole is currently in a continuous upward phase. But it is not the time to really start the big-stride upward rhythm. The change point of the long-short trend of real gold is in the 1800 area, which is after the 1800s when the real gold strides up.

At the macro level, the price of spot gold rebounded after falling by 10.5% in the first quarter of this year. This is not the beginning of a bear market in the gold market. The yield of U.S. Treasury bonds fell after reaching a peak of 1.75% in the first quarter. This is the price of gold in the next quarter. The rise has created the conditions, and the price of gold is expected to reach $2,000 per ounce at the end of the year. The demand for physical gold jewelry accounts for about half of the total demand for gold. This demand was quite weak last year due to the blockade measures. With the economic recovery and reopening, the market demand for gold will rebound this year. The central bank, which holds about one-third of the total supply of gold, is the key to stabilizing demand. Central banks may increase their gold holdings to diversify concentrated currency risks. In addition, this year is a major year of geopolitical conflicts, which will also boost the safe-haven nature of gold.

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Since the end of March, the price of gold has bottomed out and rebounded. Recently, it has successfully exceeded $1,750 per ounce, and the market’s attention to the precious metal market has risen again.

The price of gold bottomed out and rebounded with fire in the precious metals sector

On April 15, the international gold price hit a maximum of 1770.6 US dollars per ounce, setting a new high in the past two months. In the early trading of April 16, the overall performance of precious metals in the domestic futures market was relatively strong. The main Shanghai gold contract reported a rise of 1.39% in early trading to a maximum of 374.08 yuan/gram, which was the lowest of 354.58 yuan/gram at the beginning of March, which has risen more than 5%.

Affected by signs of a bottoming out of gold, the precious metals sector trended strongly in the early trading on the 16th. As of the morning’s close, the Wind Precious Metals Index rose 1.71%, individual stocks Zhongyuan City Gold rose 8.19%, Chifeng Gold rose 5.09%, and Yintai Gold rose nearly 5%.

“The recent rise in gold prices is mainly due to the weakening of the U.S. dollar and the fall in U.S. Treasury yields that have boosted the attractiveness of gold prices. The logic behind this includes that on the one hand, Fed Chairman Powell’s speech made the market believe that easing will continue; on the other hand, the international situation has intensified. The United States will expel Russian diplomats and sanction 20 companies and individuals, and Russia is also prepared to do the same. The degree of retaliation has led to rising global risk aversion. In addition, the central bank’s increase in gold reserves is also the reason for the recent rise in gold prices.”Xu Yang, chairman of Shanghai McRong Information Consulting, said in an interview with a reporter from Securities Times·e Company.

Zhang Wei, an analyst at Zhuochuang precious metals, also believes that international gold prices have recovered from low levels due to the recent weakness of the U.S. dollar and the containment of rising bond yields in various countries. In particular, Fed officials have recently intensively voiced that they have not considered tightening easing and raising interest rates in the short term. On the other hand, with the recovery of retail and consumption exceeding expectations, expectations of higher inflation have been continuously corroborated, so that the rise of social real interest rates has been hindered, and gold The significance of investment and inflation hedging has become apparent, which is good for the price of gold.

In response to the recent rebound in gold trends, Cheng Xiaoyong, director of the Baocheng Futures and Finance Research Institute, also pointed out that the main logic of the recent gold market has evolved into a comparison between the rate of inflation and the rise in the nominal interest rate of the US dollar. The fall in short-term U.S. Treasury yields may be the main reason for the rebound in gold, and the recent fall in U.S. Treasury yields may have a lot to do with the slowdown in U.S. Treasury issuance. At the same time, Biden’s 2.3 trillion infrastructure plan and the rebound in the U.S. service industry price index mean that the momentum for U.S. inflation to rebound has increased. Therefore, in the case of short-term U.S. Treasury yields falling, the rise in US dollar real interest rates has slowed, stimulating some Gold buy order entry.

He believes that since this year, changes in U.S. bond yields are the most important factor affecting asset prices. Since February, volatility in global financial markets has been related to the sharp rise in U.S. bond yields. Not only did U.S. stocks undergo a sharp downward adjustment, but the prices of copper, crude oil, and gold also fell sharply. However, in early April, U.S. bond yields fell to a certain extent, which may be an important reason for the phased rebound in gold prices.

Will the “Golden Bull” appear again?

” Recently, gold has shown signs of bottoming out and rebounding, which may mean that the trend of gold’s high correction that has lasted for two quarters has temporarily come to an end. However, from the long-term mainstream logic, with the popularization of vaccines, the US economic recovery is expected to accelerate, and employment and economic data are significantly better than expected. The market expects that the Fed’s loose monetary policy will end early, and there is an upward expectation of US real interest rates. It constitutes a continuous pressing effect. Zhan Dapeng, a precious metals analyst at Everbright Futures, told a reporter from Securities Times·e Company that in the short to medium term, gold has an opportunity for a rebound. First, judging from the Fed’s statement on expectations management, the asset purchase reduction plan may appear as early as possible. In the first quarter of next year, interest rates may increase in 2023, that is, the market has “premature expectations”, gold “shot” ahead of schedule; second, with the implementation of Biden’s stimulus plan and the launch of the infrastructure plan, the US fiscal deficit continues to expand. It constitutes a medium- and long-term negative for the U.S. dollar, and gold has only a callback expectation and no bear market expectation. Since late March, whether it is the rise of U.S. long-term bond yields or the rebound of the U.S. dollar, the negative pressure on gold has been weakening. This is also gold. One of the signs of bottoming.

“The only concern now is that global gold ETF holdings are still dominated by outflows. Institutions have declining confidence in gold holdings. The weakness has become a consensus in the market. Therefore, when gold rebounds in the second quarter, the increase or decrease in gold ETF holdings will be very high. Importantly, if the capital holding confidence returns, the gold rebound may be firmer and longer-lasting, otherwise it will be short-lived.” He said.

Cheng Xiaoyong also believes that from a long-term historical perspective, 2020 will mark a long-term low in inflation and interest rates. The Federal Reserve also strives to avoid negative currency market repo exchange rates. This means that the real interest rate of the US dollar may enter a long-term period. In the upward cycle, gold investment demand will continue to fall, and there will be little room for gold prices to rebound.

Xu Yang said that from a technical perspective, gold as a whole is currently in a continuous upward phase. But it is not the time to really start the big-stride upward rhythm. The change point of the long-short trend of real gold is in the 1800 area, which is after the 1800s when the real gold strides up.

At the macro level, the price of spot gold rebounded after falling by 10.5% in the first quarter of this year. This is not the beginning of a bear market in the gold market. The yield of U.S. Treasury bonds fell after reaching a peak of 1.75% in the first quarter. This is the price of gold in the next quarter. The rise has created the conditions, and the price of gold is expected to reach $2,000 per ounce at the end of the year. The demand for physical gold jewelry accounts for about half of the total demand for gold. This demand was quite weak last year due to the blockade measures. With the economic recovery and reopening, the market demand for gold will rebound this year. The central bank, which holds about one-third of the total supply of gold, is the key to stabilizing demand. Central banks may increase their gold holdings to diversify concentrated currency risks. In addition, this year is a major year of geopolitical conflicts, which will also boost the safe-haven nature of gold.

These, users are watching

The United States and Russia fall out! Biden signed heavy sanctions, saying that the Russian government interfered in the internal affairs of the United States and will expel 10 diplomats! Russia responds urgently! U.S. stocks pulled another 300 points, and the Dow rose to 34,000!

Rare in history! Dabaima was suddenly hit by the “Sword Breaking Knife” in batches! After 3 days of financing of 2.5 billion yuan, the frenzied leveraged funds have suddenly seen the risk of collapse, “SF and CDF may not be the last case”!

Burst! 36 billion bull stocks once crashed and fell to the limit! The central bank issued a heavy note: The demographic dividend was used comfortably at the time, and the debt must be repaid afterwards! These stocks instantly became popular…

Burst! More than 2,200 American troops died, Biden announced the withdrawal of troops from Afghanistan! The end of military operations in the past 20 years has burned $1 trillion! The first senior official of the Biden government to visit China is here…

Another national sacred car is here! Just now, Wuling Hongguang launched a convertible, which was trendy and popular, and the stock price surged in the late trading! Pickup trucks will be launched in the future…

“Securities Times”‘s new media platform focusing on listed companies

●First-hand information ●First-line interaction

●One-click release ●Settled in the capital circle

▲Small hands, brand new experience! ▲