Shares of State-Owned Enterprises Surge as Top Securities Regulator Pledges to Build a New “Valuation System with Chinese Characteristics”
“Valuation System with Chinese Characteristics” is a new term coined by China’s securities chief Yi Huiman. This new concept has injected great vitality into the A-share market this year and has become the most eye-catching topic. The decision-makers proposed the valuation system with Chinese characteristics, partly aiming to restore the refinancing capabilities of state-owned enterprises.
Half a year ago, Yi Huiman, chairman of the China Securities Regulatory Commission, proposed for the first time to explore the establishment of a valuation system with Chinese characteristics so that the market plays a better role in resource allocation. Shares of state-owned enterprises surge as the decision-makers pledge to build this new valuation system. Economists and scholars have mostly recognized and affirmed the role of the new system in activating economic vitality. Since the valuation system with Chinese characteristics was put forward, the market has gone through several rounds of rising.
Covid Global Health Emergency is Ending but Virus Still a Danger
On May 5, 2023, the World Health Organization (WHO) declared an end to COVID-19 as a public health emergency, stressing that it does not mean the disease is no longer a global threat.
In fact, this is just a transition from a state of emergency to a state of long-term prevention and control. In other words, the virus and humans have reached a “mutual compromise” in a sense.
Although the potential mutation of the virus still poses uncertainty, the WHO advises that now is the time to focus on long-term management of the pandemic. The COVID-19 virus has spread to practically all regions of the world, however the intensity of the epidemic tends to be stable. The COVID-19 will coexist with humans for a long time. Looking back on the unforgettable three years, the most important lessons we have learned is that we must always remain vigilant because the virus is still mutating.
King Charles Crowned amidst Anti-Monarchy Protest
Britain’s three-day national public holiday in honor of the coronation of King Charles III has finally come to an end. On May 6, 2023, King Charles III was crowned at Westminster Abbey. Over 18.8 million Britons watched the coronation ceremony on TV.
The British government has not revealed the total cost of the coronation, but according to some estimates by British media, it may have cost the nation about 100 million pounds. On the day of the grand ceremony, many British people opposing the monarchy risked being arrested by the police to stage a protest. The anti-monarchy group believe that the coronation is a costly but meaningless activity and it is undoubtedly an insult to those British people who are struggling to make a living. Some of the protesters were arrested and detained.
In Certain Industries of China, Job Cuts are Mounting
The economic downturn in 2022 has led to layoffs in various industries. The epidemic, US dollar interest rate hikes, high energy prices, economic recession in Europe and the United States have caused many industries to fall into trouble and depression. Caijing conducted a comprehensive analysis of job cuts in various industries, and selected the ten industries with the largest reduction in employee size.
Looking into layoffs of various industries in 2022, it can be found that nine of the top ten industries for increase in employees fall into high-end manufacturing, and among the top ten industries for layoffs are industries related to real estate.
But we should not be overly pessimistic. Some sectors continue to expand and the number of employees continues to grow despite the poor overall economy. Most of these industries represent the future direction of economic development. 2022 was very difficult for enterprises, and the situation in the spring of 2023 is also not optimistic. However, at this point, there is no need to be overly pessimistic. Although the data for the first quarter of 2023 is still unsatisfactory, all factors are gradually improving.
