As one of the first teams to recommend the main line of digital RMB investment in the market, we issued many industry heavyweight reports such as how to view the significance of digital RMB on September 25, 2021, how to view the new regulations on payment terminal management on November 28, and the analysis of the financial standardization development plan in the 14th five year plan on February 13, 2022, Continue to emphasize that the digital RMB has a high degree of national strategic significance, and the progress is expected to continue to exceed expectations. As the “soft bottom” of the digital economy, the relevant policy support and application scenarios are expected to continue to be implemented, and it is expected to become an important means of internal regulation and external internationalization. In the near future, it is an important catalyst for globalization. 2022 will become the first year of digital RMB.
CIPS system in China is one of the major payment alternatives in the world. 1) At present, several other systems have emerged in the world, which can partially replace swift system. The most prominent one is China’s CIPS system, which is China’s RMB cross-border payment system. As early as 2019, Vladimir Shapovalov, director of the foreign regulatory agency relations administration of the Department of international cooperation of the Central Bank of Russia, said that many banks in Russia have access to China’s cross-border inter-bank payment system (CIPS), which can promote the facilitation of trade settlement services between Russia and China. 2) Advantages of CIPS: first, you can use RMB for direct settlement; Secondly, there is no need to open an agent bank account; Finally, the transfer cost and time can be reduced. From a long-term perspective, the system can completely replace swift and become an important starting point for the internationalization of RMB.
CIPS has many advantages and is beginning to take shape. The internationalization of RMB may enter a new stage. 1) Cross border interbank payment system (CIPS) is a wholesale payment system specializing in RMB cross-border payment and clearing business. It aims to further integrate the existing RMB cross-border payment and settlement channels and resources, improve the efficiency of cross-border clearing, meet the needs of RMB business development in major time zones, improve the security of transactions and build a fair market competition environment. 2) The system started construction on April 12, 2012 and officially started on the morning of October 8, 2015. On March 26, 2018, CIPS system (phase II) was successfully put into trial operation. Achieve full coverage of financial markets in all time zones around the world, support global payment and financial market businesses, and meet the RMB business needs of users around the world. According to Sina financial data, by the end of 2019, there were 33 direct participants and 903 indirect participants in CIPS system, an increase of 74% and 413% respectively compared with the initial stage of launch, covering 94 countries and regions on 6 continents, and CIPS system business actually covered more than 3000 bank legal entities in 167 countries and regions. 3) Advantages of CIPS: first, you can use RMB for direct settlement; Secondly, there is no need to open an agent bank account; Finally, the transfer cost and time can be reduced. From a long-term perspective, the system can completely replace swift and become an important starting point for the internationalization of RMB.
DCEP’s national strategy is constantly strengthened, and 2022 will become the first year of digital RMB. 1) As early as 2014, the central bank established a special research group on legal digital currency to carry out initial technical reserve and knowledge accumulation. After a three-year reserve period, the impact of currency circle events slowed down in 2017. The concept of “DCEP” was first proposed by Zhou Xiaochuan, then governor of the central bank, at the press conference on the theme of “financial reform and development” at the first session of the 13th National People’s Congress on March 9, 2018. On August 2, 2019, the central bank held a video conference on the work of the second half of 2019, pointing out that the pace of research and development of legal digital currency (DC / EP) should be accelerated in the second half of 2019, and the progress began to accelerate significantly. By the beginning of 2022, the digital RMB app (pilot version) has been officially released and open to the public for download. The Winter Olympic Games has also focused on 355000 scenarios of digital RMB landing, and the pilot public beta may enter the mature stage. 2) It is also one of the important functions of recording and controlling the direction and destination of RMB, which can be applied to the country’s strategy and location. At the same time, it can also realize the precise allocation of RMB resources. The promotion of DCEP plays a key role in the promotion of the international status of RMB under the global liquidity flood and the competitive environment of large countries. The follow-up promotion process may be accelerated continuously, and 2022 will usher in the first year of digital RMB.
Investment target: 1) payment scenario and wallet manufacturer: Newland Digital Technology Co.Ltd(000997) , Newcapec Electronics Co.Ltd(300248) , Xgd Inc(300130) , Guangdong Tecsun Science & Technology Co.Ltd(002908) , Chutian Dragon Co.Ltd(003040) , Lakala Payment Co.Ltd(300773) , Shenzhen Kingdom Sci-Tech.Ltd(600446) , etc. 2) It system and terminal manufacturers: Northking Information Technology Co.Ltd(002987) , Client Service International Inc(300663) , Yusys Technologies Co.Ltd(300674) , Global Infotech Co.Ltd(300465) , Shenzhen Sunline Tech Co.Ltd(300348) , Grg Banking Equipment Co.Ltd(002152) , Hundsun Technologies Inc(600570) , Westone Information Industry Inc(002268) , etc.
Risk tips: the actual promotion is less than expected, the benefit degree of subdivided companies is less than expected, assumptions and calculations may have error risk and macroeconomic risk.
