Financial crime Malta graylisted for Financial crimes

Status: 06/24/2021 9:40 a.m.

Corruption, money laundering and “golden passports”: the Mediterranean island of Malta has fallen into twilight. An international institution to combat money laundering now wants to monitor the country more closely. The attempts by the Maltese government to avert the decision of the Financial Action Task Force (FATF) were unsuccessful: The international institution for combating money laundering, terrorist financing and the financing of weapons of mass destruction has put Malta on the gray list for financial crimes, according to the Times newspaper of Malta “reported. Inclusion on this list means that the country is under increased surveillance, that it is being monitored more and more. At the same time, the state undertakes to remedy the deficiencies identified in the context of financial crime. Who is the FATF?

The Financial Action Task Force, based in Paris, is an independent international institution that develops and promotes measures to combat money laundering, the financing of terrorism and the financing of weapons of mass destruction. It was founded in 1989 by the G7 countries and currently has 37 members. More than 200 states and jurisdictions have committed to complying with the FATF standards. The FATF is supported by a secretariat affiliated with the Organization for Economic Cooperation and Development (OECD).

Malta pledges cooperation

Prime Minister Robert Abela confirmed the decision and described it as “unjust”. Most of the concerns expressed by the reviewers have already been addressed. Malta wants to continue with its reform program, said Abela. “We will intensify our exchanges to better explain Malta’s achievements and to ensure that they are respected and understood by the international community.” Malta will never show itself to be uncooperative in the fight against financial crime or resist it, he assured the international partners.

Cayman Islands and Syria are also on the gray list

It is not the first time that Malta has fallen into twilight: the country has already been screened for financial crime more intensely because of its “golden passport” program. Like Cyprus, Malta had granted citizenships in return for financial commitments. The EU Commission then initiated infringement proceedings.

With the jump on the gray list of the FATF there is now a further loss of reputation for the country. As of February 2021, the FATF gray list includes countries such as Burkina Faso, the Cayman Islands, Ghana, Mauritius, Panama, Syria, Uganda, Yemen and Zimbabwe.

Germany holds the FATF presidency

Germany took over the presidency of the FATF in July 2020. The term of office of Marcus Pleyer from the Federal Ministry of Finance ends on June 30, 2022.

Marcus Pleyer is currently the President of the FATF. Image: Felix Zahn / photothek.net

Incidentally, the Federal Republic of Germany is currently also being routinely audited by the FATF. In its last evaluation in 2010, the organization came to the conclusion that Germany was susceptible to money laundering and terrorist financing

Wirecard scandal What’s left of the U committee

As of: 06/22/2021 9:16 a.m.

A year ago, the financial services provider Wirecard went bankrupt. A U-Committee of the Bundestag tried to find out why controllers and supervision failed. The committee has now completed its work.

From Tobias Betz, ARD capital studio

Head of authorities fired, insider trading uncovered: A reform should turn Germany’s financial supervision inside out. The committee of inquiry into the Wirecard scandal has initiated a lot. More than 100 witnesses were questioned and thousands of documents turned over.

Florian Toncar did this for the FDP: The investigative committee had come to a clear conclusion. “We made it very clear that the Wirecard case was not a natural disaster that no one could have foreseen or averted,” he says. There were hints and people who warned early on. The disturbing thing about the Wirecard case is that all of this could have happened with the eyes of sight and under the inspectors’ radar.

BaFin seal of approval?

The central accusation of the opposition: The Federal Financial Services Agency (BaFin) did not investigate early indications of possible irregularities at Wirecard. Instead, according to experts, the authority made fatal misjudgments.

BaFin was convinced that Wirecard was being blackmailed. That is why the authorities imposed a ban on the short sale of Wirecard shares in February 2019. BaFin had never before issued such a speculation ban with a single share. Many market participants understood this signal as a kind of seal of approval: You can trust Wirecard, the company is clean!

Many small investors then got on board. When the rumors that had been circulating for years about inflated balance sheets at Wirecard turned out to be true in June 2020, the share price plummeted. Wirecard was broke. Many small investors lost everything.

The minister and the chancellor had to testify

Since then, the public prosecutor has been investigating, among other things, gang fraud. Former board members were arrested and one of them, Jan Marsalek, is still on the run to this day. Because the control authorities are subordinate to ministries, the opposition’s criticism was directed at the government, says Lisa Paus, who sits on the committee of inquiry for the Greens. “Wirecard was also an auditor scandal. The supervision was under the economics minister Peter Altmaier,” says Paus. Above all, Wirecard is a broad supervisory scandal overall. “The financial supervision was under the SPD finance minister Olaf Scholz.”

Ministers Scholz and Altmaier had to testify in the committee of inquiry. Chancellor Angela Merkel was also questioned for hours. None of them admitted mistakes. On the other hand, the work of the investigative committee certainly increased the pressure on the Federal Finance Minister to completely reform the financial supervisory authority BaFin, which is subordinate to him, including a change at the top of BaFin.

Bankers lost their reputations

Financial expert Fabio De Masi from the Left Party is certain that the results of the committee of inquiry are not only politically interesting: “The auditors’ mistakes will play a role in class actions by small investors,” he says. Never before have so many heads rolled at the head of authorities in such a short time.

Authority managers, bankers, analysts, fund managers and BaFin employees – they lost their jobs, their bonuses, their reputation. These are the first concrete effects of the committee of inquiry into the Wirecard scandal. The witness chair on the investigative committee was therefore soon more feared by some than the dock in a criminal court

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Investment opportunities What to do with the savings in inflation?

Status: 22.06.2021 12:28 p.m.

Even in times of rising prices and zero interest rates, many Germans have their money in savings books or call money accounts. But if you want to protect your savings from inflation, you need alternatives.

From Lothar Gries, tagesschau.de

Consumer prices in Germany rose by 2.5 percent in May – more than they have been for almost ten years. At the same time, there is practically no more interest on overnight and fixed-term deposits, the most popular form of investment among Germans. Cash is also in great demand. The value of the notes issued by the Bundesbank rose by 9.5 percent last year. A similarly high growth rate was last seen in 2014. At the end of May 2021, banknotes issued by the Bundesbank to the value of 839 billion euros were in circulation, 52 billion or 6.6 percent more than a year earlier. But if you want your money to grow, you have to consider other investments than hoarding cash or putting it on savings accounts. There is no shortage of alternative investment opportunities. The long lucrative federal bonds are no longer one of them. The yields on these securities have fallen below zero since August 2019. Investors who lend money to the German state have to pay for it – a turning point, as they still got a return of five percent at the beginning of the millennium. “Today federal bonds have no place in assets that are designed to maintain or increase in value,” explains Ulrich Kater, chief economist at Deka-Bank, which is part of the savings bank group.

No prospect of rising interest rates

Investors should also not give in to the hope that consumer prices, which have recently risen again, will lead to higher interest rates. Inflation is likely to accelerate further until the end of the year, but the European Central Bank (ECB) has repeatedly emphasized that it will adhere to the zero interest rate policy. The priority is to stimulate the economy again after the corona crisis, said ECB boss Christine Lagarde. In addition, the current rise in inflation is only temporary.

Investments that are considered to be risk-free, such as savings books and fixed-term deposit accounts, no longer offer any prospect of positive returns for the time being. In order for the saved to experience growth, stocks in particular offer themselves as a way out. Fund savings plans, for example, are a good way to get started. Investors pay regular amounts, in many cases from 25 euros upwards, into an investment fund in which various securities are bundled and which is managed by professionals. Alternatively, of course, investors also have the option of taking their money into their own hands and buying shares in individual companies on their own. In the past few years, you couldn’t go wrong when buying technology stocks.

Alternative ETF?

If you don’t dare to do this, but still want to invest in stocks, you can invest your money in a so-called Exchange Traded Fund (ETF). These funds replicate a stock market index (often with so-called derivatives). This can be the German share index (DAX) or other indices such as the US leading index Dow Jones. The performance of an ETF is closely linked to the respective index. As a result, the fees are usually lower than with other funds. Investing in the stock market is of course not without risk: If the index behind an ETF falls because the stocks in it fall, the fund also loses value.

Nevertheless, ETFs are enjoying growing popularity. According to industry experts, there are almost 7,000 of these funds. This is also due to the low interest rate phase. It ensures that more people invest their money in funds than before. Many have done well with this strategy and have achieved better returns than they would have achieved on a call money account. For example, an ETF on the DAX alone has generated a return of 55 percent in the last five years – provided that you kept your nerve at the beginning of the pandemic and did not sell when the markets collapsed by a third in spring 2020.

Gold and open real estate funds

A popular investment, especially in times of crisis, is gold. The corona pandemic has confirmed this again. By early August 2020, the price of a troy ounce (31.1 grams) had risen to an all-time high of $ 2,063, around a third more than at the beginning of the year. But then things went downhill again, to $ 1,684 in March. It is currently $ 1,775. In fact, gold is extremely volatile because the price is mainly driven by demand, because it has no “intrinsic value” like companies do. The precious metal is therefore not considered a reliable investment. There is also the often unsafe storage of bars or coins.

Those who shy away from the capital market and don’t believe in precious metals can also invest their money in real estate funds. They collect capital from investors and invest it in offices, shopping centers, residential buildings or logistics centers. The so-called open real estate funds are particularly popular with private investors. The income from such a fund, i.e. the rental income after deducting costs, is distributed to the owners as profit. With well-managed funds, an annual return of four to five percent can be achieved, a little more than the inflation rate.

Sometimes there is a risk of total loss

But the system has a catch. A minimum holding period of 24 months applies to open-ended real estate funds. An investor must also announce the return of his money to the fund company. Then he will get his system back after twelve months at the earliest. So if you have to get your money at short notice at any time, you should refrain from such investments.

The examples show that there is no shortage of alternatives to the savings book or a federal bond. But if you want to increase your money, you also have to be prepared to take risks. In some cases, for example when purchasing shares, there is even a risk of total loss, as the example of Wirecard recently showed. A look abroad – especially the USA, where far more people own shares than in Germany – shows that long-term wealth can only be built up with investments in the capital market

Exclusive

Housing market Tax tricks with Interest settlements

Status: 06/17/2021 10:42 a.m.

Financial investors speculate with billions on the German housing market, but hardly pay taxes – thanks to a legal trick. The federal government wanted to close this loophole. But loud monitor – Research won’t come of it.

By Lutz Polanz and Jan Schmitt, WDR

“Behind this house is an American company, the trail of the owners leads via Luxembourg to the Cayman Islands” , tells Coni Pfeiffer, activist and spokeswoman for the # 200Houses network. Tenants from Berlin have come together to defend themselves against the conversion of their apartments into expensive condominiums and the greed of financial corporations. It is similar with the other houses on the opposite side, explains Pfeiffer. Here the trail of investors leads to tax havens such as Gibraltar or the Virgin Islands. The Berlin real estate market has long since become an Eldorado for major investors who want to remain anonymous. The official owners are companies with names such as Magenta Properties S.à.rl or Berlin Project-1 Property III S.à.rl The names often conceal complex corporate structures with a whole chain of companies. In the end, they lead to well-known tax havens, for example in the Caribbean.

Interest trick to save taxes

The elaborate company structures apparently also serve to avoid paying taxes to the German tax authorities. A completely legal interest trick helps the companies: The parent companies lend money to their subsidiaries who own the houses and land in Germany. In return, they charge them high internal interest rates – much higher than they would otherwise have to pay at banks. The interest payments of the subsidiaries reduce the profit in Germany and thus the taxes that would have to be paid here.

“The profits go to countries in which no tax is levied on interest income”, explains Gerhard Schick, board member of “Citizens’ Movement Finanzwende”. “Thanks to these high interest payments, it is practically possible to push the income abroad, so that in Germany you can tell the tax office that we have actually not earned any money, but that the profit is generated abroad.”

Billions are being lost to the Treasury

“Every year the German state loses five to seven billion euros as a result of the interest rate trick”, adds Christoph Trautvetter from “Network tax justice”.

So far, the tax authorities have been able to do next to nothing about it. There is no corresponding legal regulation. Specialists have been calling for them for years, for example Manfred Naumann, an expert in international tax law and head of department in the Federal Ministry of Finance for many years: “I am frustrated that the legislature and the Federal Ministry of Finance are unable to find such a regulation”, said Naumann in an interview with the ARD -Magazine monitor . For him the state wears one “complicity” because financial resources run into the billions “flow untaxed”. Proposals for such a regulation have long been on the table. Accordingly, the interest rate would always be used as a benchmark at which a group can borrow money from the bank. Demanding higher interest rates internally would only be possible if the group can justify it well. That would be a kind of reversal of the burden of proof, which experts believe would prevent a large part of the tax damage.

Paragraph disappeared

The Federal Ministry of Finance under Olaf Scholz (SPD) had proposed precisely such a new regulation in a draft law. But the CDU / CSU parliamentary group intervened and the corresponding passage was deleted from the draft. The Federal Council then made a new attempt to resume the regulation. But this was also thrown out at the instigation of the Union.

“Braking measures against money laundering, aggressive tax avoidance and tax evasion by the CDU / CSU has a long tradition”, criticizes Sven Giegold from the Greens in the European Parliament. However, he is also surprised that the SPD did not protest against it.

The Union faction wanted to get up monitor -Do not answer the request. The Federal Ministry of Finance, led by Scholz, is now apparently at a distance from its original approach. Corresponding changes “should ideally be coordinated internationally”, it says in a response from the ministry to a request from monitor .

Now the match ball lies with the Federal Council. He wants to decide at the end of June whether to call the mediation committee or wave the law through with the loophole

Author丨Li Wenxian

Produced丨Sohu Finance

It has been a year since the sale of Baicao Wei, and I missed you for announcing the focus on the main business of red dates, but you have repeatedly fallen into doubts from investors.

On June 14, I really want you to receive an annual report inquiry letter from the Shenzhen Stock Exchange, and you were asked to respond to 11 questions about the sale of Holmes, performance, and the decline in the gross profit margin of jujube products.

Since the delivery was completed in June last year, I miss your net profit for two consecutive quarters. In 2020, the gross profit rate of jujube and related products is 29.34%, a year-on-year decrease of 3.46%.

One year after the release of the share repurchase plan, I really want you to significantly reduce the repurchase ratio. During the period, the second largest shareholder Hangzhou Haohong Industrial Co., Ltd. (hereinafter referred to as “Hangzhou Haohong”) reduced its shareholding nine times and cashed out about 180 million yuan in total. .

Since the announcement of the reduction of the repurchase ratio, I miss your share price plummeting for 5 consecutive trading days. As of today’s close, I miss your share price at 10.30 yuan, down 1.62%.

After selling Baicaowei, I miss your net profit for two consecutive quarters.

After selling Baicaowei, I really miss your revenue in 2020.

The annual report shows that in 2020, I miss you to achieve operating income of 3.001 billion yuan, a year-on-year decrease of 49.65%.

On February 23, 2020, I miss you an announcement that it will sell 100% of Baicaowei’s equity. The buyer is Pepsi Beverage, a subsidiary of PepsiCo. The negotiated transaction price of the two parties is US$705 million, which is approximately RMB 5 billion.

On May 14th last year, I missed the transfer of the equity you held in Holmes (that is, Baicaowei) to Pepsi Beverage. On June 2nd of the same year, I missed the announcement that you had received US$698 million from Pepsi.

According to the disclosure, from the first quarter to the fourth quarter of 2020, I miss you operating income of 1.773 billion yuan, 713 million yuan, 250 million yuan and 264 million yuan, respectively. The third and fourth quarter revenues are less than the sixth quarter of the first quarter. One part.

At the same time, in the third and fourth quarters, I miss you a loss of 18 million yuan and 83 million yuan in net profit respectively in the two quarters. After deducting non-net profits, you will lose three consecutive quarters. The second, third, and fourth quarters will lose about 114 million yuan, 17 million yuan and 19 million yuan.

The Shenzhen Stock Exchange asks you to combine the situation of comparable companies in the same industry, as well as the seasonal characteristics of the company’s business (if any), market demand changes, product price trends, cost and expense confirmation basis, and changes in amounts, and explain the quarters of the reporting period. The reasons and reasonableness of the large fluctuations in financial data, and whether there is an inter-period recognition of income or expenses.

Jujube business revenue declines year after year, gross profit margin declines 3.46%

Before selling Baicaowei, I miss your jujube business has been declining year after year.

From 2017 to 2019, the revenue of I miss you jujube products were 961 million yuan, 868 million yuan, and 735 million yuan, respectively, accounting for 23.61%, 17.54%, and 12.33% of the revenue. Revenue has fallen for two consecutive years.

In 2020, I miss your jujube revenue of approximately 666 million yuan, a year-on-year decline of 18.87%, and a gross profit margin of 3.46%.

Compared with jujube products, nuts have contributed 1.187 billion yuan in revenue, which is nearly twice that of jujube business, but they are also facing a decline in gross profit margin.

The financial report shows that in 2020, the gross profit margin of I miss you nuts products is 20.90%, a year-on-year decrease of 4.36%.

The inquiry letter requires you to combine marketing model, product positioning, market share, cost structure and other factors to explain the reasons for the decline in the gross profit rate of red dates and nuts during the reporting period, and analyze whether related factors will continue to affect the company’s production and operation.

I miss you announcing the return to the main business of jujube, and decided to terminate the contract of 4770 acres of land leased by the subsidiary Xinjiang Jujube Agriculture and Forestry Co., Ltd., and concentrate resources on the company’s own high-quality raw material base.

After the termination of the land lease agreement, you no longer own the ownership of the jujube trees, employee dormitories, warehouses and other ground attachments on the corresponding land, and the remaining land lease fees paid will no longer be returned. The total asset loss is 45.66 million yuan.

The inquiry letter requires you to estimate whether the cost of using the leased land to obtain raw materials such as red dates is significantly different from the cost of the company obtaining raw materials such as red dates through other channels. Combined with the reasons for your company’s early termination of the land lease, further explain the company’s termination of the land lease Whether it is conducive to safeguarding the interests of listed companies.

At the same time, according to the disclosure that I wanted to focus on the main business of red dates when you sold the shares of Holmes, it explained whether the company took other methods to consolidate the supply of upstream raw materials while terminating the 4770 mu land lease of the subsidiary Xinjiang Dazaoshu Agriculture and Forestry Co., Ltd. .

The repurchase plan has shrunk sharply, the second shareholder reduced their holdings and cashed out 180 million yuan

I really miss you to change the stock repurchase plan, which also caused investor complaints.

On June 3, 2021, I really want you to disclose the “Announcement on Adjusting the Share Repurchase Program” stating that the number of shares to be repurchased will be adjusted to no less than 41.2 million shares and no more than 67.2 million shares.

Compared to the most embarrassing repurchase plan in history that was thrown out in June last year, the number of shares you bought back has shrunk dramatically.

I really want you to disclose that the number of shares repurchased is no less than 113 million shares and no more than 226 million shares, accounting for no less than 21.91% and no more than 43.83% of the company’s total share capital. The repurchase price does not exceed 13 yuan per share.

As of May 10, 2021, I really want you to repurchase approximately 28.79 million shares through centralized auction trading, accounting for 5.58% of the company’s current total share capital. The highest transaction price is 13 yuan per share, and the lowest transaction price is 10.93. Yuan/share, the total turnover is about 339 million yuan.

During the period, Hangzhou Haohong, the second largest shareholder, reduced its shareholding 9 times, with a cumulative reduction of 13.84 million shares. The number of changes accounted for more than 3% of the outstanding shares. The average transaction price was 11.95 yuan to 13.79 yuan, and the cumulative cash out was about 180 million yuan.

After the announcement of the adjustment plan, I miss your stock price plummeting for 5 consecutive trading days.

The inquiry letter asks, I really want you to further explain the reason and rationality of the company’s adjustment to the repurchase plan in the past 12 months before the shareholders’ meeting reviewed and approved the share repurchase plan, and whether there is a situation of using repurchase matters to cooperate with relevant entities to reduce holdings Wait.

Just now, a new round of financial sanctions imposed by the United States on Russia formally came into effect. Since June 14, U.S. companies have been prohibited from buying Russian government bonds issued for the first time, and Russian government bonds issued in euros have also been included in the prohibition of buying, which was once called the “most powerful” punitive measure in the financial market.

Russia’s counterattack was also unrelenting. The Russian Ministry of Finance announced that it would change the structure of the National Wealth Fund in the next month, reducing the share of the US dollar to zero, and Russia almost completely emptied the US long-term national debt.

The timing of this round of competition between the two sides in the financial market is very sensitive. On June 16, local time, US President Biden and Russian President Putin will meet in Geneva, Switzerland for a US-Russian summit. On the eve of the summit, the capitals of the two parties have already released “ruthless words.” Therefore, the market expects that this meeting will be the fiercest political game.

The “most powerful” financial sanctions?The U.S. puts pressure on Russia again

According to CCTV News, since June 14, US financial sanctions against Russia have come into effect. The U.S. government prohibits domestic companies from buying Russian government bonds (in rubles) that are issued for the first time. Russian government bonds issued in euros are also included in the prohibition. However, U.S. companies are allowed to trade Russian government bonds on the secondary market.

So, how much impact will this punitive measure, regarded by the financial market as “the most powerful”, have on the Russian economy?

First, let’s look at the scale of Russian national debt issuance. According to the latest data from the Audit Office of the Russian Federation, as of the first quarter of 2021, Russian national debt has increased by 741.3 billion rubles (approximately RMB 64.4 billion) from the previous quarter. The total scale of Russian debt is as high as 19.7 trillion rubles (about 1.71 trillion yuan), accounting for 17% of Russia’s GDP.

At present, the government bonds of the Russian Federation held by foreign investors are about 2.7989 billion rubles, accounting for about 14% of the total size of Russian bonds, but this part of the government bonds are stocks that are normally traded in the secondary market and are not subject to the US sanctions. limit.

In addition, looking at the issuance of Russian government bonds, Gehrman Greev, President of the Russian Federal Reserve Bank, made it clear that Russia’s related bond issuance plan will be completed as scheduled. According to the Russian Ministry of Finance, starting from June 16, Russia will release its first national debt to the market, and will issue three national debts worth 500 billion rubles on the same day.

The British analyst firm Oxford Economics believes that because the United States only prohibits the purchase of Russian government bonds in the primary market, the sanctions have limited impact on the Russian government bond market, and are more symbolic. If sanctions (the United States against Russia) affect transactions in the secondary market, the threat effect will be very violent.

Faced with the entry into force of US financial sanctions, Russian Finance Minister Siluanov also strongly stated that Russian government bonds will still maintain a high demand rate and that sanctions will only cause losses to US companies.

In fact, this financial sanctions policy began in mid-April this year, when the U.S. government announced a series of measures to sanction Russia, including prohibiting U.S. companies from buying Russian initial treasury bonds, but they can buy and sell Russian treasury bonds on the secondary market. Effective from June 14, 2021.

At that time, the reasons for the sanctions given by the United States were that Russia interfered in the U.S. election, hacked the system, and a series of “hostile acts.” In addition to prohibiting U.S. companies from buying Russian government bonds, it also expelled 10 Russian diplomats. The U.S. Treasury Department Thirty-two Russian entities and individuals were sanctioned.

Fight back! Russia is going to dump the U.S. dollar and U.S. debt?

Russia has already begun to “strike back” against the US financial restrictions. On June 3, local time, Russian Finance Minister Siluanov stated at the St. Petersburg International Economic Forum that the Russian Ministry of Finance will change the structure of the State Wealth Fund within one month, in which the share of the US dollar will be reduced to zero and the share of the British pound will be reduced. At 5%, the yen will remain at 5%, the euro will grow to 40%, the renminbi will grow to 30%, and gold will account for 20%.

It is reported that the Russian National Wealth Fund was established to support the Russian pension system. Its funds can also be used to make up for the budget deficit during the crisis. It has now become an important part of the Russian Federation’s budget assets.

According to data disclosed on the official website of the Russian Ministry of Finance, as of May 1 this year, the total assets of the fund reached 185.87 billion US dollars, or 13.82 trillion rubles (equivalent to RMB 1.2 trillion), accounting for 12% of Russia’s GDP.

As of early May, the fund’s liquid assets were worth approximately US$119 billion, of which one-third (approximately US$41.5 billion) were in US dollars. This means that in the next month, the Russian National Wealth Fund will substantially sell US dollars.

On February 24 this year, the Ministry of Finance of the Russian Federation announced that it would include the RMB and the Japanese Yen in the National Wealth Fund. The two currencies accounted for 15% and 5% of the fund’s foreign exchange structure, respectively. At the same time, the share of the US dollar and the euro both fell to 35%, while the share of the British pound remained unchanged at 10%.

Russian President Press Secretary Peskov said in response to a question about the adjustment of the investment structure of the National Wealth Fund that de-dollarization is a long-term process visible to the naked eye. Not only Russia is de-dollarizing, but many countries in the world are also doing similar things. , Because these countries are beginning to worry about the reliability of the major foreign exchange reserve currencies.

Before March 2018, the U.S. dollar has been one of the most important foreign exchange reserves of the Russian Central Bank, accounting for as high as 43%-48%. Since then, as the United States has tightened sanctions against Russian companies and citizens, in order to minimize the risk of sanctions, the Central Bank of Russia began to continuously reduce the proportion of U.S. dollars in foreign exchange reserves. As of the end of 2020, U.S. dollars and U.S. dollar assets are in Russia’s international The share of reserves has dropped to 21.2%, and the share of gold and RMB has increased to 23.3% and 12.8%.

While Russia is selling the U.S. dollar, it is also reducing its holdings of U.S. Treasury bonds in a “clearing-out” manner. According to the latest data released by the US Treasury Department, in February this year, Russia almost completely emptied long-term US Treasury bonds (only US$306 million left), and reduced its holdings of US debt by US$389 million that month, and the final position dropped to US$5.8 billion. Compared with Russia’s highest holding of US debt, the cumulative sell-off ratio reached 94%.

Biden and Putin are about to meet, how to talk?

Behind the secret rivalry between the United States and Russia may be for the upcoming summit of US-Russian leaders.

According to the official website of the White House, US President Biden will meet with Russian President Putin in Geneva, Switzerland on June 16, local time.

At this point, Biden is already in Europe and has just finished attending the G7 summit. After three days of dialogue and consultation, the leaders of the G7 announced that they have reached a certain consensus on fighting the epidemic, rebuilding the economy, trade reform, and green transformation. It will be announced in the form of a summit communiqué.

China has been mentioned many times in the G7 Communiqué, and it even touched on issues such as Xinjiang, Hong Kong, and Taiwan. Subsequently, the spokesperson of the Chinese Embassy in the United Kingdom said in response to reporters that the G7 Communiqué published distorted and reversed remarks on Xinjiang, Hong Kong, Taiwan and other issues, deliberately slandered China, and arbitrarily interfered in China’s internal affairs. The serious violation of the basic norms of international relations has further exposed the sinister intentions of a few countries such as the United States. We are strongly dissatisfied and firmly opposed to this.

India, which is plagued by the epidemic, is also making small calculations. The Global Times quoted foreign media reports that India may join the G7 infrastructure plan, which aims to provide a so-called “value-driven, high-standard, and transparent” partnership against China. The Belt and Road Initiative.

If the G7 summit is a closed-door game of tongue war, then the probability that the US-Russian summit on June 16 will not make Biden so easy, and the meeting between Biden and Putin will likely be The fiercest political game.

In fact, from the series of signals released by the United States and Russia before the meeting, a strong smell of gunpowder can be smelled.

On June 6, Biden’s signed article in The Washington Post stated that the United States does not seek to conflict with Russia, but will not hesitate to respond to Russia’s harmful activities in the future. When meeting with Putin, he will emphasize again The United States, Europe, and like-minded democracies support the promise of human rights and dignity.

According to CCTV News, on June 4, local time, Russian President Putin spoke at the St. Petersburg International Economic Forum. Speaking of the upcoming summit of Russian-US leaders, he said that Russian-US relations are at a very low level, and he will work with US President Biden to find solutions to the problems of bilateral relations, and will discuss strategic stability, arms reduction, and the new crown epidemic. And other issues.

Putin pointed out that Russia and the United States have no differences, but the United States wants to contain Russia’s development. He said that the relationship between Russia and the United States has largely become a bargaining chip for the United States to govern its internal affairs, and hopes that this situation will end at some point.

In addition to the mutual temptation of the two heads of state on the verbal level, the wrestling of military forces between the United States and Russia has also become more frequent. On June 11, the National Defense Management Center of the Russian Ministry of Defense announced that the US Navy’s “Labourn” guided-missile destroyer had entered the Black Sea and the Russian Black Sea Fleet had begun to monitor it.

On the same day, the U.S. Pentagon suddenly announced that it would allocate 150 million U.S. dollars in security assistance to Ukraine to help Ukraine maintain its territorial integrity and improve its coordination with NATO. On the Russian side, the Russian Navy held the largest military exercise after the collapse of the Soviet Union to show off its muscles.

From this point of view, the secret rivalry between the US and Russia on the financial and military levels may be to increase the weight of the negotiations at the upcoming US-Russian leadership summit.

According to the micro-net news, as Ideal Auto recently announced its financial report for the first quarter of 2021, the three major new domestic automakers, Weilai Auto, Ideal Auto, and Xiaopeng Auto have all released their first quarter revenues. According to statistics, the three companies have combined their operations in the first quarter. Revenue was 14.513 billion yuan, only 21.86% of Tesla’s first quarter revenue.

In the first quarter of this year, Weilai Automobile’s total revenue was RMB 7.982 billion, an increase of 481.8% compared with the same period of the previous year; net loss was RMB 451 million, which was a decrease of 73.3% compared with the same period of the previous year; attributable to the company’s common stock Shareholders’ net loss was RMB 4.875 billion, an increase of 183.0% compared to the same period last year.

Ideal Auto’s total revenue in the first quarter of 2021 was 3.58 billion yuan, an increase of 319.8% from 851.7 million yuan in the same period in 2020; a net loss of 360 million yuan, an increase of 366.9% from the net loss of 77.1 million yuan in the same period in 2020. In this quarter, the deliveries of Ideal ONE were 12,579 units, an increase of 334.4% from 2,896 units in the same period in 2020; car deliveries in the second quarter are expected to reach 14,500-15,500 units, a year-on-year increase of 119.6% to 134.7%. At the same time, Ideal Auto’s auto sales in the quarter were 3.46 billion yuan, an increase of 311.8% year-on-year; the auto profit margin was 16.9%.

Xiaopeng Automobile’s total revenue in the first quarter was 2.951 billion yuan, a year-on-year increase of 616.1%; of which 13,340 vehicles were delivered and sales revenue was 2.81 billion yuan, a year-on-year increase of 655.2%; in addition, the gross profit margin was 11.2%, a year-on-year decrease of 4.8%; net The loss was 786.6 million yuan, an increase of 21.05% year-on-year. For the second quarter, Xiaopeng Motors expects vehicle deliveries to be 15,500-16,000 vehicles, a year-on-year increase of approximately 380.2% to 395.7%.

In the same period, Tesla’s revenue in the first quarter reached 10.4 billion U.S. dollars (about 66.39 billion yuan), an increase of 74% year-on-year; net profit was 464 million U.S. dollars, an increase of 582% year-on-year; net profit attributable to common shareholders was 438 million U.S. dollars, A year-on-year increase of 2638%; of which sales of carbon credits achieved revenue of US$518 million.

The total revenue of the three new domestic car manufacturers in the first quarter was 14.513 billion yuan, only 21.86% of Tesla’s, and none of them achieved profitability. The analysis believes that the investment in R&D by the three new car manufacturers is an important reason why they have not yet been able to achieve profitability. In the first quarter of this year, the research and development expenses of Weilai Automobile, Ideal Automobile and Xiaopeng Automobile were 687 million yuan, 515 million yuan, and 535 million yuan, respectively, accounting for 8.61%, 14.41%, and 18.13% of overall revenue.

It should be noted that Ideal Automobile achieved a profit of 108 million yuan in the fourth quarter of 2020. Although it failed to maintain profitability in the first quarter of this year, Ideal Automobile is still expected to become the first of the three new car manufacturers to achieve a positive annual net profit. enterprise. (Proofreading/Arden)

Author丨Li Wenxian

Produced丨Sohu Finance

It has been a year since the sale of Baicao Wei, and I missed you to announce the focus on the main business of red dates, but you have repeatedly fallen into doubts from investors.

On June 14, I really want you to receive an annual report inquiry letter from the Shenzhen Stock Exchange, and you were asked to respond to 11 questions about the sale of Holmes, performance, and the decline in the gross profit margin of jujube products.

Since the delivery was completed in June last year, I miss your net profit for two consecutive quarters. In 2020, the gross profit rate of jujube and related products is 29.34%, a year-on-year decrease of 3.46%.

One year after the release of the share repurchase plan, I really want you to significantly reduce the repurchase ratio. During the period, the second largest shareholder Hangzhou Haohong Industrial Co., Ltd. (hereinafter referred to as “Hangzhou Haohong”) reduced its shareholding nine times and cashed out about 180 million yuan in total. .

Since the announcement of the reduction of the repurchase ratio, I miss your share price plummeting for 5 consecutive trading days. As of today’s close, I miss your share price at 10.30 yuan, down 1.62%.

After selling Baicaowei, I miss your net profit for two consecutive quarters.

After selling Baicaowei, I really miss your revenue in 2020.

The annual report shows that in 2020, I miss you to achieve operating income of 3.001 billion yuan, a year-on-year decrease of 49.65%.

On February 23, 2020, I miss you an announcement that it will sell 100% of Baicaowei’s equity. The buyer is Pepsi Beverage, a subsidiary of PepsiCo. The negotiated transaction price of the two parties is US$705 million, which is approximately RMB 5 billion.

On May 14th last year, I missed the transfer of the equity you held in Holmes (that is, Baicaowei) to Pepsi Beverage. On June 2nd of the same year, I missed the announcement that you had received US$698 million from Pepsi.

According to the disclosure, from the first quarter to the fourth quarter of 2020, I miss you operating income of 1.773 billion yuan, 713 million yuan, 250 million yuan and 264 million yuan, respectively. The third and fourth quarter revenues are less than the sixth quarter of the first quarter. One part.

At the same time, in the third and fourth quarters, I miss you a loss of 18 million yuan and 83 million yuan in net profit respectively in the two quarters. After deducting non-net profit, you will lose three consecutive quarters. In the second, third and fourth quarters, the net profit after deduction of non-profit loss will be about 114 million yuan, 17 million yuan, and 19 million yuan.

The Shenzhen Stock Exchange asks you to combine the situation of comparable companies in the same industry, as well as the seasonal characteristics of the company’s business (if any), market demand changes, product price trends, cost and expense confirmation basis, and changes in amounts, and explain the quarters of the reporting period. The reasons and reasonableness of the large fluctuations in financial data, and whether there is an inter-period recognition of income or expenses.

Jujube business revenue declines year after year, gross profit margin declines 3.46%

Before selling Baicaowei, I miss your jujube business has been declining year after year.

From 2017 to 2019, the revenue of I miss you jujube products were 961 million yuan, 868 million yuan, and 735 million yuan, respectively, accounting for 23.61%, 17.54%, and 12.33% of the revenue. Revenue has fallen for two consecutive years.

In 2020, I miss you jujube revenue of about 666 million yuan, down 18.87% year-on-year, and gross profit margin down 3.46%.

Compared with jujube products, nuts have contributed 1.187 billion yuan in revenue, which is nearly twice that of jujube business, but they are also facing a decline in gross profit margin.

The financial report shows that in 2020, the gross profit margin of I miss you nuts products is 20.90%, a year-on-year decrease of 4.36%.

The inquiry letter requires you to combine marketing model, product positioning, market share, cost structure and other factors to explain the reasons for the decline in the gross profit rate of red dates and nuts during the reporting period, and analyze whether related factors will continue to affect the company’s production and operation.

I miss you announcing the return to the main business of jujube, and decided to terminate the contract of 4770 acres of land leased by the subsidiary Xinjiang Jujube Agriculture and Forestry Co., Ltd., and concentrate resources on the company’s own high-quality raw material base.

After the termination of the land lease agreement, you no longer own the ownership of the jujube trees, employee dormitories, warehouses and other ground attachments on the corresponding land, and the remaining land lease fees paid will no longer be returned. The total asset loss is 45.66 million yuan.

The inquiry letter requires you to estimate whether the cost of using the leased land to obtain raw materials such as red dates is significantly different from the cost of the company obtaining raw materials such as red dates through other channels. Combined with the reasons for your company’s early termination of the land lease, further explain the company’s termination of the land lease Is it conducive to safeguarding the interests of listed companies?

At the same time, according to the disclosure that I wanted to focus on the main business of red dates when you sold the shares of Holmes, it explained whether the company took other methods to consolidate the supply of upstream raw materials while terminating the 4770 mu land lease of the subsidiary Xinjiang Dazaoshu Agriculture and Forestry Co., Ltd. .

The repurchase plan has shrunk sharply, the second shareholder reduces their holdings to cash out 180 million yuan

I really miss you to change the stock repurchase plan, which also caused investor complaints.

On June 3, 2021, I really want you to disclose the “Announcement on Adjusting the Share Repurchase Program” stating that the number of shares to be repurchased will be adjusted to no less than 41.2 million shares and no more than 67.2 million shares.

Compared to the worst repurchase plan in history that was thrown out in June last year, the number of shares you bought back has shrunk dramatically.

I really want you to disclose that the number of shares repurchased is no less than 113 million shares and no more than 226 million shares, accounting for no less than 21.91% and no more than 43.83% of the company’s total share capital. The repurchase price does not exceed 13 yuan per share.

As of May 10, 2021, I really want you to repurchase approximately 28.79 million shares through centralized auction trading, accounting for 5.58% of the company’s current total share capital. The highest transaction price is 13 yuan per share, and the lowest transaction price is 10.93. Yuan/share, the total turnover is about 339 million yuan.

During the period, Hangzhou Haohong, the second largest shareholder, reduced its shareholding 9 times, with a cumulative reduction of 13.84 million shares. The number of changes accounted for more than 3% of the outstanding shares. The average transaction price was 11.95 yuan to 13.79 yuan, and the cumulative cash out was about 180 million yuan.

After the announcement of the adjustment plan, I miss your stock price plummeting for 5 consecutive trading days.

The inquiry letter asks, I really want you to further explain the reason and rationality of the company’s adjustment to the repurchase plan in the past 12 months before the shareholders’ meeting reviewed and approved the share repurchase plan, and whether there is a situation of using repurchase matters to cooperate with relevant entities to reduce holdings Wait.

Living in big cities Lots of tenants at the Load limit

Status: 15.06.2021 12:51 p.m.

The high rental prices in many large cities mean that many tenants are on the verge of financial problems. Scarce income and housing are a bad mix, as a recent study shows. When it comes to rent, many households in large cities have to raise so much money that they are above the 30 percent mark of household income. This is the result of a study published by the union-affiliated Hans Böckler Foundation. According to this, 49.2 percent of the around 8.4 million households that rent in Germany’s major cities are above this threshold. A good quarter of households have to spend at least 40 percent of their income on rent including heating and ancillary costs. Almost twelve percent of large city households even required more than half of their income for rent, i.e. rent including heating and ancillary costs.

06/10/2021

Bremen at the top

“For social scientists as well as real estate experts, a rent burden quota above 30 percent of household income is problematic, especially for households with lower incomes, because then there is only relatively little money left for the rest of life,” says the foundation’s study. Many landlords would also draw a line here because they doubted that tenants with less income would be able to afford their apartment in the long term. In Cologne, for example, the proportion of households that have to live with a rent burden rate of more than 30 percent is 46.4 percent. In Berlin it is 43.8 percent. In Bremen, the share is greatest at 47.5 percent. For the study, a research team led by urban sociologist Andrej Holm from Berlin’s Humboldt University evaluated the latest available data from the 2018 microcensus.

05/27/2021

Unfortunately, poorer households more so

Overall, according to the study, the financial burden on tenants has decreased over the past few years, because even with residents of large cities, incomes have increased more on average than housing costs. The mean exposure rate of tenant households fell in 2018 from 31.2 percent of income in 2001 to 29.6 percent. For many poorer households in particular, the situation has hardly relaxed, for them rent continues to be a particularly big financial problem. The authors see a further “polarization” of the housing situation. A comparison over time from 2006 to 2018 also shows “that social inequalities in the area of ​​housing have worsened and high rental costs have solidified”.

FAQ 08/22/2019

Overload rate decreased slightly

The Federal Statistical Office had also analyzed the burden on households with housing costs. According to his data, almost 14 percent of the population, i.e. around 11.4 million people, lived in households that were financially overburdened by high housing costs. The authority sees an overload of housing costs when a household spends more than 40 percent of the available income on housing. This applies regardless of whether the person concerned is renting or living in their own four walls and paying off a loan, for example. According to Destatis, the overload rate has decreased slightly since 2014.

09/23/2014

There are no apartments

The Böckler study comes to the conclusion that the housing shortage in large cities has been “at best slightly alleviated” despite increased construction activity. Above all, there was a lack of small and inexpensive apartments, and the supply had become significantly scarcer over the years. Nationwide, there is a supply deficit of over 1.5 million apartments, which would be missing even with a hypothetically assumed optimal distribution of living space in large cities, explained Holm. The German Tenants’ Association is also calling for more apartments. A few days ago, he asked the next federal government to invest heavily in social housing and a nationwide six-year rent freeze. The federal government must provide a “much-needed breather for all tenants” until more new apartments are built. According to the tenants’ association, at least 30 percent of rental apartments would have to be in public or cooperative management in order to curb the price spiral. At present, every second tenant household in large cities is afraid of no longer being able to pay for the apartment, the association president, Lukas Siebenkotten, had determined.

05/06/2021

More income would help

Study author Holm advocates a multi-pronged approach: In addition to instruments to protect existing rents, among other things, social and non-profit housing “should be considerably strengthened with the most permanent rental agreements possible,” he advised. Another crucial key to social housing provision, however, is the income situation of the tenants. Without effective measures to dissolve the widespread low-wage sector, social housing cannot be guaranteed in large cities, according to Holm.

Industry collects billions Record sums for biotech companies

Status: 15.06.2021 10:46 a.m.

The successes of biotech companies such as BioNTech attract investors: The industry has a new financial record in Germany. But the exuberance could be followed by disillusionment. By Thomas Spinnler, tagesschau.de The entire biotech industry is currently benefiting greatly from the attention generated by the rapid and successful development of corona vaccines. The pandemic has given a boost to a sector that is already in the focus of many investors due to technological and medical advances in recent years. As the “Financial Times” (FT) reports, the venture capitalist Flagship Pioneering – one of the major investors in the Vaccine manufacturer Moderna – around $ 3.5 billion for a new fund. Its aim is to promote the next generation of biotech companies.

Fund tries a new model

When investing in the biotech industry, investors must calculate with particular risks. Many of the companies to invest in do not yet have a product on the market. It is uncertain whether this will ever be the case, as the path from research to a marketable product is very long and often fails.

01/06/2021

Flagship Pioneering is now trying a different way. What is special, according to “FT”, is that the fund’s goal is not the usual search for newly founded companies in which to invest. Rather, modern biotechnologies are to be developed in-house in certain segments under the umbrella of the fund. Only then are plans to set up companies as offshoots.

The profits are gushing

Unsurprisingly, financiers are on the lookout for business ideas; they smell a gigantic business. Just a look at the rapidly rising share prices of many companies in the past few months shows how convinced the market players are of a lucrative future for the sector. In fact, profits are gushing – at least for the best-known representatives who have successfully launched products. BioNTech generated a net profit of 1.1 billion euros in the first quarter of 2021. In the first quarter of 2020, the Mainz-based company had to accept a net loss of 53 million euros due to high research and development costs.

05/10/2021

The US vaccine manufacturer Moderna made in the first quarter profit – equal to a billion dollars. In the previous year, Moderna had to cope with a loss of 124 million. The turnover multiplied from eight million to 1.9 billion dollars. $ 1.7 billion of this comes from corona vaccine revenue. While Moderna shares rose by more than 200 percent in the past twelve months, BioNTech shares gained over 340 percent in the same period.

Lighthouse companies in particular benefit

In Germany, the biotech industry set a new financial record last year. As the experts from the testing and consulting company EY calculated in their Biotech Report 2021, financing in Germany reached a peak of 3.1 billion euros in 2020. A comparison with the USA shows the order of magnitude. According to EY, around $ 100 billion went into biotech financing for venture capitalists.

02/27/2021

“Covid-19 is a huge catalyst for the entire biotechnology industry,” said Alexander W. Nuyken, Head of the Life Sciences Sector in Strategy and Transactions at EY and co-author of the study. In their report, the experts at EY point out that the investments essentially relate to the flagship company BioNTech, which alone accounted for 51 percent of the financing volume in 2020. According to Nuyken, biotechnology is part of the solution to a problem that is a matter of fate for humanity. “That has come to mind.”

More help from the state?

This year it’s going on at a high pace: The “Handelsblatt” quotes from preliminary figures from the Bio Deutschland Association. Accordingly, the industry received a total of 870 million euros in capital from January to May. That is around three and a half times as much as in the same period last year. Nuyken campaigns for the state to help even more: “I hope that politicians show more will to improve framework conditions.” There is now an opportunity for the biotech scene to play a major role in this country in the long term or to play an even greater role in the future.

Hope for new products

In fact, taxpayers have already made a major contribution to making the industry so successful: Since the beginning of the pandemic, governments have allocated tens of billions to research and development on vaccines, which are now generating sales and profits for companies. However, it is uncertain whether, thanks to the many fresh billions, the supply of innovative medical products will make a leap. Nuyken warns of disappointing expectations: “If investors with no biotech experience think they can make a quick buck here, they’re wrong.” After the boom, the expert warns, disillusionment could quickly set in.

Supply crisis in Lebanon Queuing for a little gasoline

Status: 14.06.2021 8:41 a.m.

There is currently a shortage of fuel, electricity and medicines in Lebanon. Because the country is in a serious economic and financial crisis. Many Lebanese fear that the situation will get worse. By Anne Allmeling, ARD-Studio Cairo, currently Beirut Layali has almost reached her goal. Six or seven cars are waiting in line at the gas station in front of her. Then it’s her turn. “I don’t know how much I get, but I take as much as they give me.” Layali, who doesn’t want to give her last name, has been waiting for two hours to fill her tank with at least a few liters of gasoline. The 31-year-old works as a lecturer at a university in the center of Beirut. She needs the car on the way to work. “This is the second day I’ve tried to get gasoline. I drove all over town yesterday to find an open gas station. Then I waited four hours. When there were only four or five cars left in front of me were in the queue, it was said that there was no more gasoline. ”

Country has been in crisis for almost two years

Anyone who wants to refuel in Lebanon needs a lot of patience. Because fuel is in short supply. The country lacks the foreign exchange for imports. Lebanon has been in a serious financial and economic crisis for almost two years. The corona pandemic and the explosion in the port of Beirut a good ten months ago made the situation even worse. After its resignation, the government is only in a managerial position, but hardly able to act. In addition, there is a risk of state bankruptcy. Gasoline prices have more than tripled – but many Lebanese have no choice. “There is no public transport, no railroad. There is only private transport,” says Jihad Shehab. The 52-year-old salesman has been waiting for gasoline for his old Mercedes for an hour and a half. Because the line is moving very slowly, he got out of the car and is talking to a friend. “The situation is getting worse and worse. Nothing is progressing, neither in the government nor in the state, nothing,” he complains. Everything got out of hand. There is a dispute right in front of the gas station. A taxi driver complains: He only got twenty liters – not a full tank like the customer before him. His car has a special license plate that only a few Lebanese can afford – if they have the right connections.

FAQ 08/06/2020

Hardly any protests against the political elite

Nepotism and corruption are widespread in Lebanon. One reason why influential politicians and business people have been able to enrich themselves on a large scale in recent decades – at the expense of the state, which is now almost bankrupt. These people should be driven out of their offices, says a young woman who does not want to give her name: “Those responsible in Lebanon do not take any responsibility. The only solution would be for the people to put pressure on the state.” But if there is no uprising, the situation will not improve. Protests against the political elite are sporadic in Lebanon, however. More than half of the population is now considered poor. Most people are busy every day to ensure their survival and that of their families – like Layali. She is now number three in line – but even today she does not get any gasoline. The gas station closes before it is her turn. “Unfortunately, it didn’t work out. This has happened to me for the fifth time. I have to keep trying.”

Celebrity endorsements of financial products must be careful, and financial consumers must treat celebrity endorsements rationally, and effectively guard against financial traps.

On April 22, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the second issue of 2021 risk warning, reminding financial consumers to treat celebrity endorsements rationally, to “three look and one prevention”, and to effectively prevent financial traps.

The China Banking and Insurance Regulatory Commission stated that when consumers choose financial products or services, they should not blindly believe in celebrity endorsements, and should treat the products or services of “star endorsements” rationally. We must insist on rational investment and value investment. It is not advisable to pursue “quick money” blindly, and we must abandon the concept of getting rich overnight. Be cautious about financial products that promise higher-than-average returns, and don’t believe in false propaganda such as high returns and risk-free.

In recent years, with frequent P2P thunderstorms, many celebrities who have endorsed P2P products have also become the focus of public opinion. There are also endless debates about whether celebrities should be responsible for the endorsed P2P products and whether they should participate in compensation. The China Banking and Insurance Regulatory Commission emphasized this time that celebrities and other public figures should abide by the “PRC Advertising Law” and other laws and regulations, and must not recommend or certify unused products or unreceived services, and must not know or know that advertising is false Still make recommendations and proofs. Before accepting endorsements, it is necessary to check whether the endorsement agency has legal qualifications, and whether the endorsed products and services are true in content and meet regulatory requirements.

Supervisory breakdown of the five common models of celebrity endorsement financial products

In recent years, with the rapid development of network technology, various Internet platforms and wealth management investment products have emerged one after another. Some institutions have invited celebrities to endorse promotion or platforms. Problems such as excessive publicity, promised high returns, and misleading publicity have seriously damaged financial consumption. The legitimate rights and interests of the person.

The China Banking and Insurance Regulatory Commission stated that currently, celebrities endorse a wide variety of Internet platforms or financial products, and there are roughly five common models:

One is to endorse the P2P platform. In recent years, platforms endorsed by celebrities have exploded, causing participants’ funds to be damaged.

The second is to endorse products suspected of illegal fund-raising. For example, the “Zhongjin Group” fund-raising fraud case has caused more than 10,000 investors to suffer capital losses.

The third is to speak for the Internet financial platform. The network platform is more convenient to operate, but it is also prone to problems such as risk warnings and insufficient insurance notification. Consumers should not ignore risk notifications due to celebrity endorsements.

The fourth is for financial products and platforms. For example, “Pan Asia Nonferrous” once invited a scholar to attend an event, using the aura of celebrities to mislead the public in consumption.

The fifth is to endorse certain types of products or the overall brand of bancassurance institutions. For example, celebrities act as bank credit card promotion ambassadors or publicity ambassadors.

In addition, the China Banking and Insurance Regulatory Commission proposed that some fans have no bottom line to chase stars, and irrational star-chasing behaviors such as raising funds for celebrities have also been used by criminals, causing some fund-raising chaos. Others use the celebrity effect to over-market and induce over-consumption and over-consumption, which may lead to problems such as excessive debt and violent collection.

The China Banking and Insurance Regulatory Commission emphasized that spokespersons and financial product suppliers should perform their responsibilities in compliance with laws and regulations. On the one hand, financial product suppliers should effectively regulate the financial marketing and publicity activities of their institutions and partners. Market operating entities that have not obtained the corresponding financial business qualifications must not carry out marketing and publicity activities related to the financial business; they must not use fraud or attract others. Marketing and promotion of financial products or financial services in a misunderstood manner; no guarantee promises regarding the future effects, returns or related conditions of the asset management products shall be made, and no explicit or implied guaranteed principal, no risk or guaranteed return shall be made.

On the other hand, celebrities and other public figures should abide by the “Advertising Law of the People’s Republic of China” and other laws and regulations, and must not recommend or certify unused products or unreceived services. Make recommendations and proofs. Before accepting endorsements, it is necessary to check whether the endorsement agency has legal qualifications, and whether the endorsed products and services are true in content and meet regulatory requirements.

Don’t blindly believe in celebrity endorsements, and be careful when you “call” young people

In response to the above-mentioned chaos, the China Banking and Insurance Regulatory Commission reminds financial consumers that financial product information is highly asymmetry and professional. If the spokesperson himself does not distinguish the endorsement product qualifications and does not understand the product risks, it may cause misleading publicity risks. Financial consumers should treat celebrity endorsements rationally, not blindly believe in celebrity endorsements, and should rationally treat the products or services of celebrity endorsements, so as to achieve “three look and one prevention” to effectively guard against financial traps.

The so-called “three look and one prevention” mainly include the following four aspects:

The first is to see whether the institution has obtained the corresponding qualifications. The financial industry belongs to the franchise industry, and it is not allowed to operate without a license or to operate financial business beyond the scope.

The China Banking and Insurance Regulatory Commission reminded that consumers should choose formal institutions and formal channels with corresponding financial business qualifications to obtain financial services. You can log on to the website of the financial supervision department and the website of the industry association to inquire about the relevant information of the institution, or verify the qualification of the institution with the local financial supervision unit.

The second is to see whether the product meets its own needs and risk tolerance. When consumers purchase financial products, they must understand important information such as product types, terms, risk levels, notifications and warnings, and choose appropriate financial products based on their own needs and risk tolerance.

“We must insist on rational investment and value investment. It is not advisable to pursue’quick money’ blindly, and we must abandon the concept of getting rich overnight.” The China Banking and Insurance Regulatory Commission emphasized.

The third is to see whether the income is reasonable. Investment and financial management risks and benefits coexist. Consumers should pay attention to whether they disclose risks and benefits truthfully in the face of marketing and promotion to prevent misleading or fraud. Be cautious about financial products that promise higher-than-average returns, and don’t believe in false propaganda such as high returns and risk-free.

The fourth is to prevent excessive borrowing. Look at advertising and publicity such as loan consumption and financial investment rationally, maintain a rational financial concept, and do not blindly follow the trend of consumption, lending and investment.

The China Banking and Insurance Regulatory Commission emphasized that young people, in particular, should be sensible in responding to fan support, borrowing and chasing stars, and beware of financial traps such as illegal fund-raising.

Do a good job in dealing with P2P stock risks in three aspects

In recent years, with frequent P2P thunderstorms, many celebrities who used to endorse P2P products have also become the focus of public opinion. Stars such as Lang Lang, Tang Yan, Wang Han, Du Haitao have “stepped on thunder” as P2P endorsements. There are also endless debates about whether celebrities should be responsible for the P2P products they endorse and whether they should participate in compensation.

According to previous reports from many media, attorney Song Yixin, a partner of Shanghai Hanlian Law Firm, stated on “Tencent News Related Topics” that from the level of legal liability, there are two aspects.

First, if there is fraud in the products (including financial products) and services (including financial services) purchased or consumed by the victim, the victim should undoubtedly be held accountable from three aspects: criminal sanctions, administrative supervision, and civil claims. If there is no fraud in itself , According to the principle of de-rigid redemption, the company can only liquidate the company’s existing assets or even go bankrupt.

Second, if the relevant product has celebrity endorsements, according to the Advertising Law and other laws and regulations, check whether there are any false advertising and publicity, and there are endless and reasonable inspection obligations (as far as the scope of its ability is concerned, such as whether the agency product is legal Approved products, etc.), if not, the celebrity will not bear the responsibility after endorsement. If there is, it depends on the degree of infringement of the false advertisement and decides whether it should bear the responsibility for withdrawing the endorsement fee.

In January this year, the Beijing Chaoyang District Financial Dispute Mediation Center issued an announcement stating that some online lending institutions have hired well-known entertainers and public figures as advertising spokespersons for illegitimate gains, and used their influence to attract investors to buy illegal financial products. The above-mentioned advertising spokesperson failed to fulfill reasonable inspection obligations, made false propaganda, was at fault for the occurrence and expansion of the damage results, and bears inescapable responsibility.

The announcement emphasizes that from now on, please contact the natural person, legal person, or other organization (ie, advertising spokesperson) who has or is still in the P2P online loan advertisements and recommends or certifies related products and services in your own name or image. The center explained related issues and cooperated with the clearing of online loan platforms.

The relevant person in charge of the China Banking and Insurance Regulatory Commission recently stated at a press conference of the first quarter of 2021 that the P2P institutions in operation have been cleared, which means that P2P institutions have stopped developing new online lending businesses, and the existing risks have been reduced in an orderly manner. The follow-up is mainly to do a good job in the disposal of existing risks. The next step will be to work hard in several aspects:

The first is to increase the efforts to resolve the risks of normal exits from institutions. First, strengthen monitoring to prevent existing institutions from violating regulations. Secondly, innovate working methods, increase the intensity of asset disposal, comprehensively use a variety of methods to increase the repayment rate of lenders, and in particular, consolidate the main responsibilities of major online lending platforms. At the same time, we are accelerating the promotion of more online lending institutions to access the credit investigation system, intensifying punishment for dishonesty, and severely cracking down on malicious evasion of debt.

The second is to speed up the asset disposal of criminal case filing agencies in accordance with the law, coordinate the public security, judicial and other departments to increase the overall planning for the recovery and disposal of the assets involved in the case, improve the efficiency of case investigation and trial, achieve smooth case handling, and actively respond to the concerns of lenders.

The third is to focus on improving the long-term mechanism of online loan risk supervision. On the one hand, we will strengthen the monitoring of exiting institutions in stock, and at the same time prevent the emergence of P2P-like institutions. On the other hand, at the legislative level, relevant departments are promoting relevant legislation, such as the “Regulations on the Supervision and Management of Non-deposit Lending Organizations” as soon as possible. , Regulations will be promulgated as soon as possible, and continue to improve the long-term supervision mechanism in terms of system construction.

Millions of users are watching

On the cusp of trouble! The video of Tesla’s fire went viral, and the male passenger was unfortunately killed! Police: The cause is still under investigation! Accidents happen frequently, so does BYD have a chance?

what’s the situation? The stock market in this country suddenly plummeted, and the central bank showed an “eagle face”? Canada has taken steps to tighten, and the world is waiting with bated breath for tonight’s big show. Is it really going to change?

See also rumors that detonated the market! The two brokerage companies want to merge? The stock price rose instantly! Founder lost more than 100 people during the year. What happened?

Swipe! 3 billion market value is not accepted?The small market value is being abandoned by funds, the research cost of small-cap stocks is too high, and the fund manager: it is difficult for the black chicken to become a phoenix

What signal? Hundreds of billions of Zhang Kun increased positions against the market in the first quarter! 20 billion of funds are fully supported, continue to sweep into liquor stocks, and increase the allocation of bank stocks by 10 points

Heavy! The China Securities Regulatory Commission has clarified the nature of science and technology innovation, and financial technology and model innovation companies are restricted from listing on the science and technology innovation board!New indicators for the proportion of scientific research personnel, see the latest revision

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China

Measures of the People’s Bank of China on the Supervision and Administration of Anti-money Laundering and Anti-terrorist Financing of Financial Institutions-People’s Bank of China Order (2021) No. 3

Regulator: People’s Bank of China

Applicable objects: financial institutions

According to the development status of my country’s financial industry, the “Measures” increase the number of anti-money laundering obligations such as online microfinance companies and bank wealth management subsidiaries. At the same time, it further clarified the internal control and risk management requirements of financial institutions against money laundering. With reference to internationally accepted rules, financial institutions are required to conduct self-assessment of money laundering and terrorist financing risks, and establish internal control systems and corresponding risk management policies based on risk status and scale of operations, and further clarify financial institutions’ anti-money laundering organizations, human resources guarantees, and anti-money laundering Money laundering information system, anti-money laundering audit mechanism and other requirements.

China Securities Regulatory Commission on amendmentsDecision-China Securities Regulatory Commission Announcement (2021) No. 8

Regulatory agency: China Securities Regulatory Commission

The Guidelines restrict financial technology and model innovation companies from listing on the Sci-tech Innovation Board; real estate and companies mainly engaged in financial and investment businesses are prohibited from listing on the Sci-Tech Innovation Board.

India

The Reserve Bank of India Announces Extension of the Interest Equalization Plan for Rupee Export Credits Before and After Shipment

Regulator: Reserve Bank of India (RBI)

The Reserve Bank of India announced that the Indian government has approved the extension of the interest balance plan for export credits of rupee before and after shipment. This expansion will include the same scope and coverage as the original plan, and will be extended for another three months (that is, until June 30, 2021).

United Kingdom

Policy Statement on Emerging and Growing Unsystematic British Banks 8/21

Regulator: UK Prudential Regulation Authority (PRA)

The UK Prudential Regulation Authority issued a policy statement 8/21, expounding its attitude towards emerging and growing unsystematic UK banks. The policy statement is mainly related to emerging and growing unsystematic UK registered banks, although certain banks in this category will have sufficient experience and resources to quickly meet the expected standards of most established banks. This decision will depend on several factors, in particular: (i) whether the bank is part of an established domestic or international banking group; (ii) the scale and complexity of its activities; (iii) its available finances And the scope of non-financial resources.

Letter on obtaining deposits through deposit collection service providers

Regulator: Financial Conduct Authority UK Prudential Regulation Authority (FCA, PRA)

The Financial Conduct Authority and the UK Prudential Regulation Authority issued a letter on obtaining deposits through deposit pooling service providers. This letter clarified the authorities’ view of the risks associated with the increase in the number of deposits deposited into institutions through deposit-aggregation service providers and how to mitigate these risks. It also outlines some of the company’s key responsibilities, such as depositor protection, financial promotions and customer awareness.

“Financial Services and Markets: Solvency 2 (Credit Risk Adjustment) Regulations 2021”

Regulator: UK Ministry of Finance (HMT)

Applicable objects: insurance and reinsurance companies

The UK Ministry of Finance issued the “Financial Services and Markets: Solvency Standard 2 (Credit Risk Adjustment) Regulations 2021.” The regulations provide a new method for credit risk adjustment, which can be used for insurance and reinsurance companies to discount the basic risk-free interest rate term structure used by their liabilities. Given that LIBOR is being phased out, these regulations allow for appropriate adjustments to credit risk based on other benchmarks, such as the British Pound Overnight Average Index (SONIA).

Europe

Final report on the “European Market Infrastructure Regulation (EMIR) and Securitization Finance Transaction Regulation (SFTR) Data Quality”

Regulator: European Securities Regulatory Commission (ESMA)

The European Securities and Markets Authority (ESMA) released the final report on the “Data Quality of the European Market Infrastructure Regulation (EMIR) and the Securitization Financing Transaction Regulation (SFTR)”. The report covers the progress made so far in improving the quality of EMIR data used for supervision and supervision, and concludes that despite good progress, national authorities and ESMA need to make further efforts to further improve the quality of EMIR data. This report is the first review of data quality since the introduction of the EMIR and SFTR reporting systems. It also reviewed the data quality reported by the transaction database and outlined measures taken by ESMA and NCA to improve data quality.

The final draft of the regulatory technical standards for the prudential merger approach under the Capital Requirements Regulations

Regulator: European Banking Authority (EBA)

The European Banking Regulatory Authority (EBA) released the final draft of its regulatory technical standards (RTS). The main changes to the draft involve the newly introduced Capital Requirements Regulation (CRR) Article 18, paragraph 8, allowing the competent authority to substantively intervene In the case of risks, the prudential merger will be extended to certain non-financial companies. The final draft of the RTS has been revised to reflect the amendments introduced as part of a package of risk reduction measures.

ECB Annual Report 2020

Regulator: European Central Bank (ECB)

The European Central Bank (ECB) released its 2020 annual report. The annual report covers:

• Increased risks from the European financial industry and Covid-19;
• Innovation and integration of market infrastructure and payment;
• Digital euro; and
• climate change.

Consultation on the treatment framework for EU unit linked market currency value risk

Regulator: European Insurance and Occupational Pension Administration (EIOPA)

The European Insurance and Occupational Pension Administration (EIOPA) has published a consultation on the framework for resolving the risk of the market currency value of EU units linked to the market. The consultation document proposes a framework that sets out how to assess whether unit-linked and hybrid products are cost-effective, and takes into account the needs, goals and characteristics of the target market.

Use of distributed ledger technology in the post-transaction process

Regulator: European Central Bank (ECB)

The European Central Bank (ECB) issued a document on the use of distributed ledger technology (DLT) in the post-transaction process. The document considers:

• Regulatory, governance and interoperability considerations in the DLT environment;
• Issuance or recording of securities and post-transaction processing in the DLT environment; and
• The main functions of using DLT for issuance, custody and settlement.

Report of the Ministry of Financial Stability and Capital Markets on the exemption of EMIR liquidation obligations

Regulatory agency: European Commission (EUC))

The European Commission (EC)’s Department of Financial Stability and Capital Markets (DG FISMA) issued a report that considers possible post-trade risk reduction (PTRR) services that may lead to exemption from EU market infrastructure supervision (EU EMIR) for direct transactions Required liquidation obligations. The European Commission’s assessment considers:

• To what extent has the PTRR service reduced risks, especially counterparty credit risk and operational risk;
• If an exemption is granted, it is possible to evade liquidation obligations;
• Whether the exemption is granted may have an adverse effect on Central Clearing; and
• Quantitative evidence on the benefits of PTRR services and whether the use of this exemption may cause any new risks.

United States

A government agency issues a statement and requests information about bank secrecy laws/anti-money laundering compliance

Regulatory agency: Federal Deposit Insurance Corporation Financial Crime Enforcement Network, National Credit Union Administration Office of Currency Supervision (FED, FDIC, FinCEN, NCUA, OCC)

The Federal Reserve, the Federal Deposit Insurance Corporation, the Financial Crime Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency issued a joint statement. The joint statement sets out the relationship between the risk management principles described in the “Model Risk Management Regulatory Guide” and the systems or models used by banks to assist in compliance with the Bank Secrecy Act (BSA) laws and regulations. The statement further stated that it will not change existing bank secrecy laws or anti-money laundering (AML) laws or regulations, nor will it establish new regulatory expectations, and does not require a specific model risk management framework.

Credit loss provision: new supervision manual

Regulator: Office of the Comptroller of Currency (OCC)

The Office of the Comptroller of the Currency (OCC) has issued a new supervision manual-the “Credit Loss Preparation” manual, which is used by OCC inspectors to inspect and supervise national banks, the Federal Savings Association, and federal branches and foreign banking organizations (collectively referred to as banks). Used in institutions. This manual provides inspectors with information on credit loss allowances (ACL) and review procedures. It is applicable to banks that adopt the current expected credit loss (CECL) method when subject to 326.1 of the Accounting Standards Collection (ASC). OCC supervision. The “Loan and Lease Loss Reserves” sub-volume of the Supervision Manual continues to apply to the OCC’s supervision of banks that have not adopted CECL.

2020 Fair Loan Report

Regulator: Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) released the 2020 annual fair loan report. The report highlights the work carried out by the CFPB in 2020 to promote the bureau’s fair lending mission, which is to ensure fair, equal and non-discriminatory access to credit, while also in the COVID-19 epidemic and the resulting economic consequences Protect consumers. The Consumer Financial Protection Bureau (CFPB) released the 2020 annual fair loan report. The report highlights the work carried out by the CFPB in 2020 to promote the bureau’s fair lending mission, which is to ensure fair, equal and non-discriminatory access to credit, while also in the COVID-19 epidemic and the resulting economic consequences Protect consumers.

International

Basel Committee releases work plan and strategic priorities for 2021-22

Regulator: Basel Committee (BCBS)

The Basel Committee (BCBS) has issued a work plan for 2021/22, which sets out the strategic priorities for the coming year and reflects the results of its recent strategic review. The work plan focuses on three key themes:

• Covid-19 resilience and resilience;
• Comprehensively scan and mitigate mid-term risks and trends; and
• Strengthen supervision and coordination and practice.

Climate-related risk drivers and their communication channels

Regulator: Basel Committee (BCBS)

The Basel Committee released a report on climate-related risk drivers and their communication channels. The report explores climate-related risk drivers, including how physical risks and transitional risks are generated through micro and macroeconomic transmission and affect banks and the banking system.

Climate-related financial risks-measurement methods

Regulator: Basel Committee (BCBS)

The Basel Committee released a report on climate-related financial risks-measurement methods. The report outlines conceptual issues related to climate-related financial risk measurement and methods, as well as the actual implementation of banks and bank supervisory agencies. According to the report:

• Climate-related financial risks have unique characteristics, which means that sufficiently fine-grained data and forward-looking measurement methods are required to solve these problems.
• So far, the measurement of climate-related financial risks has focused on mapping recent transition risk drivers to bank risk exposures. Credit risk measurement has attracted the most energy investment, while other risk categories have received less attention. In many cases, initial program analysis and stress testing focused on specific investment portfolios or risk exposures for transformational risks, and specific hazards for physical risks.

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China Times (www.chinatimes.net.cn) reporter Shan Meiqi and Meng Junlian reporting from Beijing

On April 19, Omar Electric (002668.SZ) issued the “Announcement on the Revision of the 2020 Annual Performance Forecast”, which significantly lowered its expected performance. According to the announcement, the net profit attributable to shareholders of listed companies is between -360 million yuan and -690 million yuan, a year-on-year decrease of 775.41% to 1394.68%. The net profit after deducting non-recurring gains and losses is between -338 million yuan and -668 million yuan. Between yuan, a year-on-year decrease of 2044.94% to 3945.00%.

During the reporting period, the company’s total assets amounted to RMB 9,221,137,100, an increase of 5.08% from the beginning of the year; the owner’s equity attributable to shareholders of the listed company was RMB 2,220,401,200, a decrease of 13.04% from the beginning of the year; the net asset per share attributable to shareholders of the listed company was RMB 2.05, which was RMB 2.05. At the beginning of the year, it dropped by 13.14%.

Omar Electric stated that the performance revision was due to the company’s strategic adjustments and in accordance with the “Accounting Standards for Business Enterprises” and the company’s relevant accounting policies. As of December 31, 2020, the company’s various receivables, inventories, fixed assets, and intangible assets have been adjusted. Such assets have undergone a comprehensive inventory and adequate evaluation and analysis, and after re-testing for impairment, supplementary provision for credit risk losses, intangible asset impairment reserves and changes in liabilities.

Regarding the performance loss, Omar Electric said that Omar Refrigerator’s performance has grown well. However, due to the company’s transfer of 49% of Omar Refrigerator’s equity during the reporting period and the completion of the industrial and commercial changes, the company’s combined ratio of Omar Refrigerator’s performance has dropped from 100% to 51%, making this year The net profit of Omar Refrigerators was reduced.

In particular, the company mentioned the performance fluctuations of the financial technology sector. Omar Electric pointed out in the announcement that the company’s financial technology sector continued to carry out in-depth structural optimization and adjustment this year and achieved initial results. However, due to the continuing impact of the epidemic, operating income has dropped significantly year-on-year, gross profit has fallen sharply, and there is limited room for compression of expenses during the period. At the same time, taking into account the impact of the financial macro environment, the company’s operating risks and the adjustment of the company’s strategy, starting from the principle of prudence, the provision for expected credit risk losses on accounts receivable and other receivables has been affected by many factors that have caused the The net profit of the financial technology sector attributable to the parent dropped significantly in 2015.

In response, the company conducted a comprehensive impairment test on the accounts receivable of subsidiaries in the financial sector, and made up for the expected credit risk loss of RMB 190,568,800; estimated the recoverable amount of intangible assets in the financial sector, and made up for asset impairment. The loss was RMB 43,652,400; the company evaluated the repayment ability of the guarantor, and made up the estimated debt of RMB 157,433,700.

The reporter noticed that along with the announcement of the performance forecast amendment, there was also an announcement on the resolutions of the 47th meeting of the fourth board of directors of Omar Electric. This announcement passed the “Proposal on the Establishment of a Working Group for the Termination of Operation and Asset Disposal of the Financial Technology Business Sector.”

The company also stated that it intends to complete the termination of operations and asset disposal of the financial technology business segment within 2021. The reporter of this newspaper also sent an interview outline to the company on the current disposal progress and expectations during the year, but the other party did not respond as of press time. .

According to the 2020 semi-annual report, Omar Electric’s financial technology business includes three major business segments. They are financial and industrial equity investment, including Changzhi Bank, Internet small loans, etc.; products and technical services, including smart POS projects and computer cloud platform projects; loan assistance business mainly focuses on the development of stock assets in response to customer overdue phenomena in 2018 Recycling.

It is worth mentioning that in the first half of 2020, Omar Electric’s financial technology business achieved operating income of 11.4021 million yuan, a year-on-year decrease of 95.75%; net profit attributable to shareholders of listed companies was 132 million yuan, a year-on-year decrease of 724.94%; Omar Electric The revenue of two businesses, including information and technical services of electrical appliances, and rental of smart POS machines, were both zero.

As early as 2015, Omar Electric announced its entry into the financial technology field. Last year, due to continued losses, it had divested part of its financial technology business and sold 100% of its equity in Zhongrong Jin in May last year.

Zhongrong Jin is an important layout of Omar Electric’s financial technology. It is mainly engaged in banking Internet financial platform technology development services and joint operations, self-operating Internet P2P platforms, and mobile Internet financial marketing services. However, the P2P platform “Haodaibao” operated by its subsidiary announced its withdrawal in June 2019. As of the end of December 2018, Haodaibao has completed all repayments and has not launched any new business.

Omar Electric also stated in this announcement that it will focus on refrigerator manufacturing as its main business in the future. Judging from the 2020 semi-annual report, Omar Refrigerator, the main business entity, contributed almost all of the revenue of the listed company. In the first half of the year, Omar’s home appliance industry achieved a revenue of 3.572 billion yuan, accounting for 99.58% of the total revenue. The home appliance industry’s revenue accounted for 99.58% of the company’s overall revenue. During the reporting period, the company’s holding subsidiary Omar Refrigerator achieved a net profit of 186 million yuan attributable to its parent.

On March 31, Omar Electric’s shareholder TCL Home Appliances Group once again increased its stake in the company by 2.96%. At present, TCL Home Appliances Group and its concerted actors Chongqing Zhongxin Rongze Investment Center (Limited Partnership) held a total of 24.05% of the company’s shares. , Became the largest shareholder.

It is worth mentioning that all the shares of listed companies held by Zhao Guodong, chairman of Omar Electric in December 2015, were frozen by the judicial system and the judicial waiting list, and I was also restricted from consumption. At the same time, all the shares held by Zhao Guodong are still in a judicial freeze state and are still being auctioned gradually.

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Report

“Ping An’s technology strategy continues to deepen, and its technology business maintains rapid development.” The relevant person in charge said. It is reported that as of the end of March 2021, the company’s number of scientific and technological patent applications has increased by 1,100 from the beginning of the year, reaching a total of 32,500, ranking it among the top international financial institutions.

“Ping An of China was the first to implement digitalization in China’s insurance industry, and the investment was the largest, and the results were the best. In the past, the effect of technology investment was obvious, so the income of the technology sector has gradually increased substantially.” China Insurance and Insurance and Insurance Group of Wudaokou School of Finance, Tsinghua University Zhu Junsheng, research director of the Pension Research Center, spoke highly of Ping An’s technology sector and believed that this was a positive result of the company’s firm implementation of its digital transformation strategy over the past years.

At the same time, according to the first quarterly report, Ping An achieved operating profit of 39.120 billion yuan attributable to shareholders of the parent company, an increase of 8.9% year-on-year; annualized operating ROE (return on equity) reached 20.0%.

In terms of customer operating performance, the first quarterly report showed that as of the end of March this year, the number of Ping An’s personal customers exceeded 220 million, an increase of 1.0% from the beginning of the year; among them, the number of individual customers holding contracts with multiple subsidiaries was 84.57 million, accounting for 38.3. %. In the first quarter of 2021, the scale of group business comprehensive financial financing increased by 84.9% year-on-year.

Business value increased by 15.4% year-on-year to 18.980 billion yuan; operating profit increased steadily by 4.2% year-on-year to 25.580 billion yuan. At the same time, according to a quarterly report, Ping An’s life insurance reform project has entered the stage of comprehensive promotion and implementation. In this regard, Zhu Junsheng commented that it will take time for Ping An’s personal insurance reform strategy to pass down, and the reform effect is gradually showing.

In terms of property and casualty insurance business, in the first quarter of 2021, Ping An Property and Casualty’s comprehensive cost ratio was 95.2%, a year-on-year decrease of 1.3 percentage points; operating profit was 5.119 billion yuan, an increase of 15.2%; the “Ping An Good Car Owner” APP is the largest car in China Service APP, as of the end of March this year, the number of registered users exceeded 133 million, an increase of 5.1% from the beginning of the year.

Regarding the decline in the comprehensive cost rate of Ping An Property & Casualty Insurance, Zhu Junsheng analyzed that the company’s strong risk control management and good customer segmentation led to a decline in the comprehensive cost rate. Therefore, it still achieved better operating performance under the background of the comprehensive reform of auto insurance.

In terms of asset allocation of insurance fund investment portfolios, the first quarterly report shows that as of March 31, 2021, the scale of Ping An Insurance’s investment portfolio reached 3.78 trillion yuan, an increase of 1.1% from the beginning of the year. At the same time, the annualized net investment rate of return on the company’s insurance fund investment portfolio in the first quarter was 3.5%, and the annualized total investment rate of return was 3.1%.

The “14th Five-Year Plan” proposes the establishment of a modern fiscal, taxation and financial system, especially the establishment of a financial system that effectively supports the real economy, and promotes the balanced development of finance and the real economy; the plan also proposes to increase the proportion of direct financing and emphasize the improvement of the modern financial supervision system. Improve financial supervision transparency and the level of rule of law.

Recently, the gradual implementation of the A-share market registration system is continuously improving the inclusiveness and openness of the capital market, and increasing support for high-quality new economy enterprises and innovative enterprises, shortening the listing cycle and further improving financing efficiency. At the same time, many outstanding U.S. listed Chinese concept stocks have also returned to the Hong Kong stock market for secondary listings. In the relatively loose IPO market environment, private equity institutions have obtained more investment exit channels, and outstanding start-ups or unlisted companies are increasingly favored by private equity institutions, and the entire capital market has also shown a positive attitude towards IPOs. .

Over the years, Ernst & Young has accumulated rich experience in assisting companies in financing and listing domestic and overseas private equity. We sincerely invite you to participate in this seminar to explain the main process and challenges of corporate financing, financing valuation, potential investors’ main concerns on corporate operations and finances, domestic/overseas listing fiscal and tax issues, and Key points of equity incentives, etc. We hope to share the latest practical experience and thinking with you through this seminar.

Workshop agenda

Time: April 28, 2021 (Wednesday)

Address: Multifunctional Hall, 8th Floor, Block C, China Resources Land Building, 9668 Shennan Avenue, Nanshan District, Shenzhen, Guangdong Province

ways of registration

Please visit this address and follow the relevant prompts to register:

https://mp.weixin.qq.com/s/UefY_AK6dJUhNdAhiY0Phw

Due to limited seats at the venue, registration will be processed on a first-come, first-served basis. After registration, we will send you a confirmation letter by email, and look forward to your participation!

This article is written for the purpose of providing general information and is not intended to be relied upon accounting, taxation, legal or other professional advice.Please ask your consultant for specific advice

On April 11, some media reported that Guo Xudong, the former “first sister of the China Securities Regulatory Commission”, had officially joined Wuhan Modern Technology Industry Group Co., Ltd. (hereinafter referred to as Modern Group), one of the largest private enterprises in Hubei, and served as the vice chairman of the board. .

Prior to this, Guo Xudong served in the China Securities Regulatory Commission for 21 years, and was in charge of the IPO issuance review work in the Issuance Department for many years, and served as a five-term issuance review committee. In August 2019, Guo Xudong was revealed to have submitted his resignation to the Securities Regulatory Commission. Since the identity of the supervisory cadre is more sensitive, Guo Xudong’s whereabouts have been confusing. However, in September last year, a report on the official website of Contemporary Group Sun Company accidentally revealed Guo Xudong’s next stop.

The joining of Guo Xudong also makes Contemporary Group and founder Ai Luming become the focus of market attention. Accompanied by arduous entrepreneurship and dazzling capital operations, Dangdai Group started from a small research institute established in 1988 with a start-up capital of 2,000 yuan, and finally grew into one of the largest private enterprises in Hubei with multiple listed companies and 100 billion assets. One. However, cross-industry operations and a large number of mergers and acquisitions activities have also made Modern Group’s goodwill and debt high, and internal troubles are deeply hidden. Now that Guo Xudong’s arrival can help Contemporary Group to eliminate financial “hidden worries”, perhaps it is particularly worthy of attention.

In the past, the “first sister of the trial” joined the contemporary group

Guo Xudong is no stranger to many listed companies. According to public information, Guo Xudong served as a member of the 9th, 10th, 11th, 17th, and 18th issuance review committees, and he can be described as a “five dynasty veteran.”

In 2007, Guo Xudong’s name appeared for the first time on the list of the Issuance Examination Committee of the China Securities Regulatory Commission as a part-time member, and was re-elected as a part-time member of the Issuance Examination Committee in 2008 and 2009. In 2010, Guo Xudong temporarily left the front line of IPO review, and has since served as Deputy Inspector and Deputy Director of the Non-listed Public Companies Department of the China Securities Regulatory Commission and Deputy Director of the Public Companies Department of the China Securities Regulatory Commission. After seven years away from the front-line issuance review work, Guo Xudong returned to the issuance review committee again in September 2017. At this time, her position was the deputy director of the issuance supervision department of the China Securities Regulatory Commission and ranked first on the list of the issuance review committee. Because of its professional skills and strict requirements on investment banking business, it is known by the market as the “iron-clad issuance review committee” and the “IPO gatekeeper”.

However, in early August 2019, it was reported that Guo Xudong had formally submitted his resignation to the Securities Regulatory Commission and was approved in September of the same year. However, it was not until July 2020 that the China Securities Regulatory Commission officially released an announcement to remove Guo Xudong as a member of the 18th Issuance Examination Committee.

Due to the sensitive identity of the supervisory cadres, Guo Xudong’s whereabouts after leaving his post has attracted much attention from the market, but it has always been an unsolved mystery. During this period, there were many rumors that it would accept the invitation of the brokerage company to “go into the sea”, but to no avail. It was not until September last year that Guo Xudong’s next stop was revealed in a news report by a Sun company under the Modern Group.

On September 11, 2020, the official website of Yichang Sanxia Pharmaceutical Co., Ltd. published a report titled “Leaders of Contemporary Group and Renfu Pharmaceutical Group Investigating Neomycin Sulfate Industrial Base”, which mentioned On August 18, Guo Xudong, Vice Chairman of Contemporary Group, and other senior executives went to the company’s factory for investigation. It is reported that Sanxia Pharmaceutical is a wholly-owned subsidiary of Renfu Pharmaceutical, a subsidiary of Modern Group. According to recent media verification, Guo Xudong in the news report is the former “first sister of the Issuing Examination Committee” Guo Xudong. However, the above report has been taken down by it.

What’s interesting is that, unlike the previous regulatory officials who usually went to the sea to devote themselves to financial institutions such as securities firms and funds, Guo Xudong’s choice seemed a bit “alternative.” Some analysts said that this may be due to its three-year “circumvention period” transitional arrangement, and other arrangements may be made once the “circumvention period” has passed.

“Buy Out” Wuhan Contemporary Department

Regardless of whether Guo Xudong’s joining is a temporary act or a long-term act, this has undoubtedly made Contemporary Group the focus of market attention.

As one of the largest private enterprises in Hubei, Contemporary Group is strong. According to the 2020 Hubei Top 100 Private Enterprises List released by the Hubei Federation of Industry and Commerce in October last year, according to the 2019 revenue ranking, Contemporary Group ranked ninth in Hubei Province. According to the official website of Modern Group, as of September 30, 2020, the total assets of the group have exceeded 100 billion yuan.

Behind the hundreds of billions of assets is the dazzling capital operation of Contemporary Group. To a certain extent, the development of Contemporary Group can be said to be a history of mergers and acquisitions.

In 1988, the founder Ai Luming and six Wuhan University alumni registered and established the Institute of Contemporary Biochemical Technology in Hongshan District, Wuhan with 2,000 yuan. The main business is to extract urokinase from urine and export it to Japan. This is also regarded as Ai Luming and his The starting point for the fortune of Wuhan Modern Group.

In 1993, Ai Luming and others established Wuhan Contemporary Technology High-tech Industry Co., Ltd. (hereinafter referred to as “Contemporary Technology”). Four years later, Modern Technology successfully landed on the capital market. This is today’s “Human Welfare Medicine”, and it is also the first listed company under the Modern Group.

After accumulating a certain amount of capital in the medical field, the contemporary group began to expand its territory through various capital operations, and gradually accelerated its deployment in the textile, real estate, tourism, cultural and sports, financial and other fields, and a huge “contemporary” empire in Wuhan is about to emerge.

In 2010, Modern Group spent 900 million yuan to bid for a 36.77% stake in Anhui Huamao Group, and indirectly held shares in its listed company Huamao, and entered the textile industry.

In the same year, Dangdai Group held 5.818 million shares of Sante Ropeway through the transfer of Wuhan Optics Valley Ventures, becoming the third largest shareholder of Sante Ropeway and stepping into the tourism industry. In 2013, Dangdai Group increased its shareholding ratio from 4.85% to 10.5% through participation in Sante Ropeway, second only to 11.71% of the largest shareholder, and only one step away from holding Sante Ropeway. Unexpectedly, a “Cheng Yaojin” came out halfway, and then the three special ropeway was raised by Meng Kai, the actual controller of the situation in Hunan and Hubei. After fierce competition, contemporary technology finally won. At the end of 2013, Modern Technology increased its shareholding by subsequent increase, and its total shareholding ratio with those acting in concert rose to 14.82%, becoming the largest shareholder, and finally taking the controlling stake in Sante Ropeway.

In May 2015, Dangdai Group signed a capital increase agreement with Xinxing Hanyi, the largest shareholder of Daobo Co., Ltd. (renamed Dangdai Mingcheng in May of the following year, now Dangdai Style), and Dangdai Group invested 300 million yuan to subscribe for the new registration of Xinxing Hanyi Capital. After the capital increase is completed, Dangdai Group becomes the controlling shareholder of Daobo Co., Ltd. to deploy the cultural and sports industry. In addition, Modern Group also indirectly holds shares of Tianfeng Securities through Renfu Medicine, and it is involved in the financial industry.

In fact, the above is just the tip of the iceberg of contemporary group investment and merger cases. According to the company’s data, the number of companies directly controlled by Contemporary Group is as many as 609, and the number of companies indirectly holding shares is as high as 1,000.

Under hidden worries, refinancing frantically “tonic blood”

Modern Group, which operates and manages many subsidiaries across industries, also has internal worries. The impairment of goodwill caused by a large number of mergers and acquisitions in the past few years has been the first to bear the brunt.

Take Renfu Medicine, the core asset of Contemporary Group, as an example. In 2018, the company had a net loss of 386 million yuan due to a provision of 3.561 billion yuan in asset impairment losses. As of the end of the third quarter of 2020, Renfu Pharmaceutical still has 3.408 billion yuan in goodwill, which is more than three times the net profit of 1.044 billion yuan in the first three quarters of last year.

At the group level, as of the end of the third quarter of 2020, The scale of Goodwill of Modern Group dropped by nearly half compared with the same period of the previous year, but still 4.171 billion yuan, accounting for 8.95% of non-current assets, more than three times the net profit of 1.213 billion yuan in the first three quarters of last year, facing a larger business Reputation impairment risk.

In addition to the high reputation of goodwill, the debt problem of the contemporary group has also been criticized. As of the end of the third quarter of 2020, Modern Group’s total assets were 100.329 billion yuan, total liabilities were 68.186 billion yuan, and the asset-liability ratio was 67.96%, an increase of 2.21 percentage points from the same period last year. The core asset Renfu Medicine also has a heavy debt burden, and the debt-to-asset ratio continues to rise. As of the end of the third quarter of last year, Renfu Pharmaceutical’s total liabilities reached 24.95 billion yuan, exceeding the annual figures for 2018 and 2019, and the debt-to-asset ratio further rose to 71.4%.

At the same time, the poor performance has cast a shadow over Renfu Pharmaceutical’s reduction of its asset-liability ratio. In the first three quarters of 2020, the company achieved operating income of 14.8 billion yuan, a year-on-year decrease of 7.81%; net profits attributable to shareholders of listed companies were 613 million yuan, a year-on-year decrease of 17.83%.

It is worth noting that as of March 10 this year, Renfu Pharmaceutical’s controlling shareholder, Modern Group pledged approximately 388 million shares, accounting for 79.93% of the total number of shares in the company. Nearly 80% of the holdings of the controlling shareholder have been pledged, which shows that the company’s use of funds is relatively tight.

In addition, the performance of several other listed companies under the contemporary group is also lackluster. In 2020, the revenue of Sante Ropeway plummeted by more than 40% year-on-year. Due to the transfer of the equity of 5 participating and holding companies during the reporting period, the company’s net profit surged 150% last year, but after deducting non-recurring gains and losses, it was at a loss, with a net loss of 160 million yuan. Another listed company, Contemporary Style and Sports, turned profits into losses last year, with an estimated net loss of 1.55 billion to 1.95 billion yuan.

In this context, in recent years, Human Welfare and Pharmaceuticals has continuously stripped off non-core assets, accelerated the withdrawal of funds, and optimized the asset structure. The contemporary department’s demand for “blood supplementation” through refinancing activities has become more urgent. Therefore, for the refinancing and other capital operations of contemporary listed companies, the joining of Guo Xudong, who has rich contacts and professional experience, appears to be “just in time” and has a different meaning.

According to incomplete statistics, in the past year or so, before and after Guo Xudong joined the Modern Group, Modern Group and its listed companies have conducted at least four refinancing activities, raising a total of more than 2.5 billion yuan.

When a public unit transforms, it must make a report on the financial situation based on the business model at 2 times. Photo: KH

Circular No. 26/2021 / TT-BTC applies to organizations and individuals defined in Article 2 of the Government’s Decree No. 150/2020 / ND-CP on successful transfer of public non-business units (SNCL) Joint Stock Company (JSC).

According to the instructions, the transformed SNCL unit follows the financial mechanism applicable to SNCL units and accounts under the regulations of the administrative and non-business accounting regime issued together with Circular No. 107/2017 / TT -BTC until the time to officially convert to JSC.

JSC is converted from a SNCL unit operating under the provisions of the Enterprise Law, specialized laws and the current law provisions and accounting under the provisions of the corporate accounting regime issued together. According to Circular No. 200/2014 / TT-BTC for activities arising from the official time of transforming into JSC.

When a converted SNCL unit has to make a financial statement based on the business model at two times: Time of determining the value of the SNCL unit after having fully accounted for arising transactions related to arbitration. financial management to determine the unit value according to regulations; At the time of officially converting into a JSC after accounting for the financial settlement results at the time of officially converting into a JSC as a basis for handover to a JSC.

Steps to make a financial statement include:

Take steps to close accounting books according to the regulations of the administrative and non-business accounting regime.

Make a report on the financial situation in the form B01 / BCTC specified in the administrative and non-business accounting regime.

Analyzing detailed data based on accounting books, asset reassessment documents to convert, records of SNCL unit valuation results of other relevant documents.

Make a data conversion table according to the provisions of this Circular.

Based on the data of the data conversion table and instructions on setting up detailed indicators on the financial statement according to the model that the enterprise synthesizes the indicators according to instructions in Appendix 02.

Circular No. 26/2021 / TT-BTC takes effect from June 1, 2021. /.

Ha Nam Lottery One Member Limited Company (Ha Nam Lottery Company) was licensed to operate from March 9, 2009. As a 100% state-owned enterprise directly under the People’s Committee of Ha Nam province, Ha Nam Lottery One Member Limited Company has an equity of 27.38 billion VND. Representative is Mr. Nguyen Dang Khai, Chairman and Director of the company.

Over the years, the business activities of Ha Nam Lottery One Member Limited Company always fell into a state of loss, many signs of wrongdoing in the management and financial spending of the company, causing loss of state assets. tens of billions of dong.

Specifically, according to the report on business results of Ha Nam Lottery Company, in 2017 the company lost VND 1,866 billion, in 2018 it lost VND 5,613 billion, the accumulated loss as of August 31, 2018 was VND 18,754 billion / VND 27.38 billion of equity, ineffective business activities at the Company resulted in the total remaining equity by the end of 2018 to only VND8.6 billion. In which, working capital is about 2.6 billion dong (2 term deposits are 2 billion dong) and the rest are in cash and demand deposit. Capital with fixed assets is 6 billion VND, including 1 car, the rest is real estate.

Facing the situation that the company continuously made losses, on March 6, 2019, the People’s Committee of Ha Nam Province issued Document No. 558 / UBND – KT requested: Checking and checking the losses and arising costs. Unusually high at Ha Nam Lottery Co., Ltd. Stop the loss lasting for many years. Request the Director of the company to strictly abide by the regulations and take responsibility before the law for business activities at the company. However, up to now, the company’s business has not been effective, there are still many problems that need to be solved.

Piled up mistakes in financial management

In 2018, under the direction of the Department of Finance of Ha Nam Province, VACO Independent Auditing Company audited the financial statements showing a series of mistakes of Ha Nam Lottery Company. One of the most serious mistakes is that the company does not record revenue (left off the books) of the lottery lottery from July 2016 to August 2017.

According to the revenue report, this type of revenue is from 12 to 15 million VND / day. So, in the period of 14 months, it is estimated about 5.4 billion VND to stay out of the book. The question is why Ha Nam Lottery Company did not record the revenue of the lottery type lottery from July 2016 to August 2017? How that money is spent is still unknown.

In addition, the use and management of public assets of Ha Nam Lottery Company is very loose, causing wasteful use of assets, the budget is not for the right purpose, not serving the general operation. business activities of the company. Typically, the company voluntarily purchased 01 car brand TOYOTA ALTIS 2.0 produced in 2013 without consulting the owner, Ha Nam Provincial People’s Committee.

Another corporate mistake that was discovered according to the audit report is that the issuance of lottery tickets includes: Prize structure, commission rate, and the form of dialing to issue does not comply with the regulations of the Company. law.

Specifically, the Company issued lottery tickets outside the province (sold in Hanoi). The dialing is not public, there is no record. All lottery tickets released outside the province have no invoices, only handwritten transactions. This amount is still left out of the book over 1 billion dong of unpaid and confirmed debt.

In 2018, the total cost of commissions that the company spent on 2 traditional lottery agents was up to 27%, surpassing the prescribed threshold of 12%, equivalent to VND 210,000,000. According to Circular No. 138/2017 / TT -BTC guiding some specific expenses for lottery businesses specified in Decree No. 122/2017 / ND-CP, then: Lottery businesses decide but must not exceed 15% of the revenue from the lottery business, including value added tax and special consumption tax.

In 2018 alone, hundreds of expenses amounted to more than 162 million VND of the company such as: Business, reception, conference and other general expenses but there are not enough valid invoices and documents. Even there are expenses up to tens of millions of dong, but only the payment list and the signature of the payee as well as retail invoices that are not in accordance with regulations, have no legal validity. The improper financial management and spending leading to loss is unavoidable. The question here is: Is the amount spent on items without full invoices and documents in accordance with the law is reasonable and actually spent?

For clear information, the PV contacted Ha Nam Lottery One Member Limited Company and was told by Mr. Quach Anh Hien – Head of Administration Department of Ha Nam Lottery Company: “Ha Nam Lottery Company is owned by the Provincial People’s Committee. When the Commission has a directing document, we can provide relevant information to the press ”.

Although it was explained by the PV that related to the use and management of finance, the books on the side of Ha Nam Lottery Company are independent and autonomous, while the Provincial People’s Committee only manages people. For some reason, when the PV contacted Ha Nam Lottery Company many times but did not receive any answer, the company unit is avoiding providing information to the press. .

We keep informing readers.

At the 11th session of the 14th National Assembly, under the direction of Vice Chairman of the National Assembly Do Ba Ty, the National Assembly discussed in the hall about the working report for the 2016-2021 term of the State Audit. One of the contents that receive the attention of the National Assembly deputies is that the auditing agency must request audited units who have been identified with financial handling violations to have a clear explanation and must strictly comply with the recommendations of the State Auditor.

Delegate Hoang Van Cuong- Hanoi National Assembly delegation expressed his opinion.

Delegate Hoang Van Cuong – Delegation of the National Assembly of Hanoi, pointed out that there is a current situation that sometimes auditing agencies find it difficult to access documents of audited units. Many audited agencies deliberately extended the audit time, making the auditing agency not have enough documents and evidence to consider wrongdoing.

In order to limit the above shortcomings, delegate Hoang Van Cuong stated: If auditing agencies apply electronic data, deliberately prolonging the audit time of agencies and units will no longer happen. again. The application of electronic data will create truly objective information, regardless of the subjective factors of the supplier, as well as the individual auditors. To do this, the State Auditor must accelerate the process of transforming the number of countries. In addition, must increase the use of information technology in auditing. The Audit Law also allows auditors to access and exploit electronic data. Therefore, the auditing agency needs to actively implement this job, in order to reduce costs in terms of costs, and at the same time save time when performing the tasks.

Delegate Nguyen Truong Giang – Delegation of the National Assembly of Dac Nong province, suggesting the audited units have been pointed out violations of financial handling but do not have to have a clear explanation of why. not implementing audit recommendations and strictly implementing recommendations of the State Auditor. This is a mandatory regulation that has been included in the law to enact but if the unit does not implement it means that the executive discipline of the agency is problematic.

Delegate Nguyen Truong Giang said that in the next term, the annual report of the auditor should clearly state the recommendations for each specific unit to report to the National Assembly Standing Committee, report to National Assembly, to have solutions to strictly comply with the provisions of the Law on State Audit.

Representative Quach The Tan – National Assembly delegation of Hoa Binh province contributed ideas.

And delegate Quach The Tan – The National Assembly delegation of Hoa Binh province asked the Government, government agencies, local agencies to strictly implement the recommendations of the State Audit. At the same time, handling the liability of collective and individual wrongdoers in the management and use of public finance and public property; That is to tighten discipline, efficiently use the country’s resources.

In addition to the implementation of the approved annual audit plan, according to the assignment, at the request of the National Assembly, as well as at the request of the Government and ministries, branches as well as localities, the State Audit also performed a number of thematic audits. For example, topics, BT, BOT projects, or the efficiency of ODA projects, the management and use of land after the equitization of enterprises …

Delegate Quach The Tan wished that in the coming time, the State Auditor would continue to better manage the issue of land use and management. This is a huge resource of the country, but there are still many shortcomings and violations. Therefore, it is suggested that the State Audit promote the achievements achieved in the management and use of land; at the same time offering more effective solutions in the coming time.

Deputy Chairman of the National Assembly Do Ba Ty concluding speech at the session.

Speaking at the conclusion of the session, Deputy Chairman of the National Assembly Do Ba Ty emphasized that, basically, the National Assembly members agreed with many contents of the State Audit and the inspection report of the Finance Committee. The budget will recognize and appreciate the results achieved in the 2016-2021 term; agreed on the shortcomings and limitations in the past term as well as the direction in the coming term of the State Audit Office. The achievements of the State Audit have contributed to the effective management of public finances and assets as well as actively contributed to the prevention of corruption and waste.

However, according to Deputy Chairman of the National Assembly Do Ba Ty, along with the achieved results, the State Auditor also needs to overcome the shortcomings and limitations in the past time mentioned in the reports and comments. The opinions of National Assembly deputies stated, along with that, it is necessary to develop solutions to continue developing the State Audit to meet the requirements and tasks in the new period./.

On April 12, Shanghai Bingjian Information Technology Co., Ltd. (hereinafter referred to as “Bingjian Technology”), an artificial intelligence risk control company, announced the completion of a C2 round of financing of 228 million yuan. This round of financing was led by Guochuang Zhongding, and Oriental Fuhai and Xi Domain Capital followed the investment, and China Investment Capital served as the exclusive investment advisor. Before the end of 2020, Bingjian Technology had just completed the C1 round of financing with an amount of approximately 200 million yuan. The amount of Series C financing completed by Bingjian Technology in two times has exceeded 400 million yuan.

Use artificial intelligence to help risk assessment

Bingjian Technology was established in 2015. Relying on artificial intelligence technology, it provides services such as personal risk prediction, enterprise risk prediction, intelligent risk control decision-making center, and intelligent customer acquisition. It can provide banks, consumer finance companies, insurance and other financial institutions with the entire process solution.

As a pure technology company, Bingjian Technology does not engage in joint loan or loan assistance business. At present, Bingjian Technology’s standard risk control products have more than 10 million daily calls, helping millions of small and micro enterprises and hundreds of millions of long-tailed people to obtain financial services.

Bingjian Technology takes deep learning, knowledge graphs, NLP (natural language processing), federal learning and other cutting-edge artificial intelligence technologies as innovative breakthroughs. It has obtained 31 national invention patents, 118 national software copyrights, and 34 patents are under substantive examination. in. Bingjian Technology has been selected as one of the top 50 leading financial technology companies in China by KPMG for five consecutive years.

In addition to the financial field, Bingjian Technology is also actively expanding the application of artificial intelligence in other industries, such as medical care, government affairs, security, and so on.

Bingjian Technology completed 5 rounds of financing from 2015 to 2019. Investors include Fengrui Capital, Yunqi Capital, and Chuangshi Partners Capital. Up to now, Bingjian Technology has received nearly 1.1 billion yuan in financing.

Gu Lingyun, the founder, chairman and CEO of Bingjian Technology, graduated from the School of Computer Science at Carnegie Mellon University with a doctorate degree. He has served as the founder and head of the ZestFinance model group, co-founder and chief risk control officer of Turbo Financial Group, and chief of Kabbage Scientist, and worked for Merrill Lynch Securities and IDG Capital.

Gu Lingyun told a reporter from China Times that years of financial industry experience is particularly important for the establishment of Bingjian Technology. As a technology company that started in the financial industry, Bingjian Technology has a deep understanding of the business processes of financial institution customers.

According to Gu Lingyun, Bingjian Technology has achieved profitability and its revenue has grown rapidly, so there is no need to rely on financing to supplement blood. This round of financing is mainly used to expand the R&D team, conduct investment and mergers in the upstream and downstream, improve the business map, and actively expand overseas markets. .

At present, Bingjian Technology has reached cooperation with Singapore Overseas Chinese Wing Hang Bank (OCBC), Thailand Commercial Bank (SCB), etc., and its business covers Southeast Asia, the United States, Canada, Australia and other countries and regions.

Serving various financial institutions

It is understood that the financial customers served by Bingjian Technology include not only large banks such as Bank of China, Industrial and Commercial Bank, and Bank of Communications, but also many high-quality city commercial banks, rural commercial banks, etc., as well as most licensed consumer finance companies.

In Gu Lingyun’s view, the services of different types of financial institutions are very different. The big banks have relatively complete IT construction and have a better understanding of the frontier areas of financial technology, so they are relatively clear about the products and services they need.

Some small and medium-sized banks are also very ambitious in financial technology, hoping to expand the market within the scope of compliance by increasing investment in technology. However, due to factors such as weak technical foundation and difficulty in recruiting scientific and technological talents, there are certain difficulties in its financial technology construction. Moreover, due to the pressure of operating performance, small and medium-sized banks are also more prone to risk agglomeration, and digital transformation is imminent. Small and medium-sized banks often need technology companies to provide turnkey services. Bingjian Technology can provide tailor-made services according to the needs of small and medium banks.

In the past few years, while cooperating with Internet giants in Internet loan business, small and medium-sized banks often rely heavily on cooperative institutions for diversion and customer acquisition, and even risk control outsourcing, and risks have gradually exposed.

Therefore, the recent introduction of new regulations on Internet loans and other regulatory policies have emphasized the independent risk control capabilities of small and medium-sized banks.

Our reporter learned that after the introduction of these policies, local corporate banks are also actively transforming, and industry differentiation is emerging. Some people in the banking industry said that strengthening their own risk control capabilities, increasing the proportion of self-operating business, and reducing their dependence on joint lending partners are the current direction of small and medium-sized banks.

In addition, the recent introduction of the support policy for inclusive small and micro enterprise loans has also encouraged local corporate banks to tilt their loans to inclusive small and micro enterprises.

According to data from the China Banking and Insurance Regulatory Commission, in 2020, China’s banking financial institutions will provide 15.27 trillion yuan in inclusive small and micro enterprise loans, of which urban commercial banks will issue 2.22 trillion yuan, and rural financial institutions will issue 5.18 trillion yuan. Local corporate banks have gradually Become the main force of loans for small and micro enterprises.

Bingjian Technology stated that the combination model of bank + technology company is a low-cost breakthrough for small and medium banks to expand their small and micro loan business.

According to sales personnel of Bingjian Technology, since the implementation of the new Internet loan regulations, local corporate banks have gradually increased their business consultations on joint modeling and technology. “Many local corporate banks also provide technical services for risk control of small and micro enterprise loans. Very interested.”

Investment is concentrated in the head

With the economic recovery in the first quarter of this year, global investment and financing in areas such as artificial intelligence and financial technology have gradually become active.

The latest 2021 AI Index Report released by Stanford University shows that although the total amount of global AI company financing reached a new high in 2020, the number of AI companies that received financing has declined for three consecutive years since 2017. Investment is increasingly concentrated in leading companies.

So-called financial technology companies that directly engage in lending-related businesses are increasingly struggling to survive under the new regulatory environment. Companies that simply provide technology, especially those that focus on providing enterprise-level services with artificial intelligence technology and empowering financial institutions, are receiving more capital.

Huang Aizhou, the managing partner of KPMG China’s financial technology, said: “One of the biggest changes we will see in 2020 is the shift in the focus of financial technology companies. Now companies are focusing on how to empower traditional financial institutions instead of directly Consumers provide products.”

Gu Lingyun told reporters that as the artificial intelligence track continues to mature, both the primary market and the secondary market have a clearer understanding: technology companies driven by algorithms and technology, and traditional data companies are huge. Value difference. The investment market has increasingly respected technology content, and Bingjian Technology’s first-mover technological advantages have become more obvious.

Jiang Yifeng, managing director of Guochuang Zhongding, said that Guochuang Zhongding focuses on the application of a new generation of information technology in the new economy, and pays special attention to product innovation, new market demand and efficiency improvement opportunities brought about by technological progress. As an artificial intelligence technology company, Bingjian Technology provides risk control model customization and application scenario development for various customers based on algorithms and technologies. In the past few years, Bingjian has continuously increased R&D investment, not only for banks of different sizes. Demand, provide a variety of standardized products, greatly improve the efficiency of delivery; and expand the service targets from banks to non-bank financial institutions and then to medical, government, security and other industries.

Huang Xiaoli, founding partner of Xiyu Capital, believes that Bingjian’s long-term accumulation of intelligent risk control modeling has built its core basic capabilities, and its AI modeling capabilities have gradually expanded the industry application boundary, which will continue to expand with the continuous expansion of data and scenarios , The ability to continue to increase, is expected to become an indispensable key force in the future digital economy.

“Only financial institutions that embrace the development of supervision and compliance have a future. This also means that financial institutions have to improve their technological strength. Therefore, the strengthening of supervision is a good thing for pure technology companies such as Bingjian Technology.” Gu Lingyun told a reporter from China Times.

Industry insiders pointed out to reporters that around 2000, China’s banking industry ushered in the first IT revolution, which also gave birth to many listed financial technology companies. Now, the banking industry has entered the era of financial technology 2.0, and its business has shifted from offline to online. Through artificial intelligence technology, the banking business will also be deeply restructured. This is a good development opportunity for third-party companies that focus on technology.

Editor-in-charge: Meng Junlian Editor-in-chief: Ran Xuedong