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Evergrande’s fall and more news from China from last week

Evergrande wants to sell its HK Headquarters

Evergrande, a real estate development company also known as Hengda, has been recently at the center of news in China. That’s due to receiving some attention from the government due to potential instability of its financial status. At the same time, the founder of the company stepped down as CEO. Xu Jiayin, the founder, is one of the richest men in China. These and few past signals of instability made sure that the stock price fell a lot just in a few days. The loss is calculated as above 26 billion RMB as of 23rd August. These days Evergrande plans to sell its Hong Kong headquarters to a competitor, possibly to recover some liquidity. [Source: Gongfu Finance]

Evergrande's headquarters in HK. Source: Bloomberg
Evergrande’s headquarters in HK. Source: Bloomberg

Miniso’s 2021 financial report shows expansion may be harder

Retail business Miniso’s revenue in 2021 increased by just 1%; but net profit is half of the past year. On 20th August, the market value of the company was 3.8 billion USD, while its peak in February 2021 was above 10 billion USD. Miniso is a Chinese retailer inspired to Japanese competitors such as Muji and Uniqlo. [Source: Sina Technology]

Miniso is a Chinese retailer inspired to Japanese competitors such as Muji and Uniqlo.
Miniso is a Chinese retailer inspired to Japanese competitors such as Muji and Uniqlo.

Local sport brands grow faster in the first semester of ’21

Li Ning, the second largest sports brand, grew quite a lot in the first half of 2021, but the competitor Anta sports managed to double that. Anta sports registered a 55% revenue growth compared with the first semester of 2020. To make a comparison with international brands, Anta is currently going after Nike after beating Adidas in the Chinese market. Some of the mistakes made by international brands in marketing in China could be a factor, but the major one is probably a genuine and renewed interest of Chinese customers in local products. [Source: Vista]

China sends yet another one into space

On 24th August, China launched the test satellite 01 from Jiuquan. The mission was confirmed as a complete success with no issues whatsoever. The efforts of China in space missions are getting more and more popular both at home and abroad, with citizens expressing their support from all over the nation. This is also thanks to incredible feats such as the building of the second Space Station, offering an alternative to the International Space Station. If you want to know more about the reasons, you can watch our short explanation on Youtube.
[Source: 我们的太空]

The last launch happened in the recent days. Source:  我们的太空
The last launch happened in the recent days. Source: 我们的太空

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