Event: on January 6, 2022, China government.com officially reported that the general office of the State Council issued the overall plan for the pilot of comprehensive reform of factor market-oriented allocation (hereinafter referred to as the plan), promoting the in-depth development of factor market-oriented allocation reform. The pilot period is 2021-2025.
The scheme supports the pilot use of digital RMB, and the promotion progress of DCEP is expected to continue to accelerate. 1) The overall plan for the pilot of comprehensive reform of market-oriented allocation of factors proposes to promote the development of capital factors serving the real economy, increase the supply of effective financial services, and support the pilot use of digital RMB in retail transactions, living payment, government services and other scenarios. 2) In terms of progress, according to the deployment of the plan, the layout of the pilot area and the preparation and approval of the implementation plan will be completed in the first half of 2022. By 2023, the pilot work will achieve phased results, strive to achieve important breakthroughs in the key links of market-oriented allocation of factors such as land, labor, capital and technology, and make positive progress in the exploration of basic system construction of market-oriented allocation of data factors. By 2025, the pilot task will be basically completed, the reform of market-oriented allocation of factors will achieve landmark results, and make an important demonstration for improving the national factor market system. We expect that with the support of top-level policies, the promotion progress of DCEP is expected to continue to accelerate, and the industrial signal may become increasingly clear.
The digital RMB app has been put on the mainstream application market, and the Winter Olympics may become a landmark node for DCEP promotion. 1) On January 4, 2022, the digital RMB app was publicly launched in the application market for the first time, and individual users in pilot cities can download, open and use it. Compared with the previous beta version released by major state-owned banks since March, the new version of the digital RMB (pilot version) app adds functions such as system level face recognition login and verification, money collection and arrival voice, auxiliary verification methods, and optimizes the unified management and push of “sub wallet”. The opening of the mainstream application market shows that the overall operation system of China’s digital RMB is becoming more and more perfect. 2) According to the consumer daily, the 2022 Winter Olympic Games will promote the pilot application of digital RMB in more scenarios. At present, 355000 scenarios have been successfully implemented, covering seven types of scenarios such as transportation, catering and accommodation, shopping and consumption.
DCEP has been elevated to the national strategic level since 2019, and the landing process continues to exceed expectations. 1) In 2014, the central bank established a special research group on legal digital currency to carry out initial technical reserve and knowledge accumulation. “DCEP” was first proposed by Zhou Xiaochuan, then governor of the central bank, in March 2018. DC is digital currency; EP is electronic payment; 2) In August 2019, the central bank held a working video conference in 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. 3) In April 2020, DC / EP will conduct closed pilot tests in Shenzhen, Suzhou, xiong’an, Chengdu, etc. In addition to the four major state-owned commercial banks, the three major telecom operators also participated in the pilot. In July 2020, the US group, B station, Alipay, byte beating and others came out and established the “strategic partnership” with the digital Monetary Research Institute of the Chinese people’s Bank of China. From January to February 2021, Shanghai, Shenzhen, Suzhou, Beijing and other places started the pilot of digital RMB. 3) In December 2021, the working conference of the people’s Bank of China in 2022 pointed out that we should steadily and orderly promote the pilot of digital RMB research and development, and strengthen the top-level support for the development of digital currency.
As the competition among global powers intensifies, the promotion of digital RMB may be more urgent. The main events include: 1) in February 2020, the Federal Reserve launched research and experiments on relevant technologies of electronic payment and digital currency, and began to study the feasibility of digital currency issuance. 2) In May 2020, the Bank of France completed the digital Euro test based on blockchain. 3) In July 2020, the Bank of England announced that it was considering the research and development of central bank digital currency (CBDC). 4) In July 2020, the group of seven countries (G7) of Japan, the United States and Europe decided to cooperate in the issuance of central bank digital currency (CBDC), and planned to coordinate to hold a summit in the United States from the end of August to early September to share practical topics and the wisdom of various countries. 5) In November 2020, Australia announced to explore the users and impact of large-scale issuance of CBDC; Europe began to explore the possibility of launching the digital euro. 6) In June 2021, the bank for International Settlements (BIS) specially discussed the development of central bank digital currency (CBDC), believing that CBDC can provide the unique advantages of central bank currency.
Investment main line:
Payment related manufacturers: Newcapec Electronics Co.Ltd(300248) , Lakala Payment Co.Ltd(300773) , Xgd Inc(300130) , Newland Digital Technology Co.Ltd(000997) , Guangzhou Kingteller Technology Co.Ltd(002177) , Feitian Technologies Co.Ltd(300386) , Chutian Dragon Co.Ltd(003040) IT system terminal manufacturers: Grg Banking Equipment Co.Ltd(002152) , Westone Information Industry Inc(002268) , Client Service International Inc(300663) , Shenzhen Sunline Tech Co.Ltd(300348) , Hundsun Technologies Inc(600570) , Global Infotech Co.Ltd(300465) , Northking Information Technology Co.Ltd(002987) , Yusys Technologies Co.Ltd(300674) , Shanghai Guao Electronic Technology Co.Ltd(300551) , Qitian Technology Group Co.Ltd(300061)
Risk warning: the actual progress is less than expected; The benefit of Companies in subdivided industries is less than expected; Macroeconomic risks.
