[TheEpochTimesMay192022]China’s currentclearpolicy that has completely changed the lives of Chinese people, a 48-hournucleic acidThe negative policy has made Chinese people either test nucleic acid or on the way to test for nucleic acid. Some friends in Shanghai even said that he tested nucleic acid more often than eating vegetables.
However, this is not enough. On May 9, the State Council of the Communist Party of China demanded that big cities should be built with a 15-minute walk.nucleic acid“Sampling Circle”. this means,Nucleic acid amplification testingIt will be normalized and long-term.At the same time, this will also be a game involving trillionsfinancialFunds, new infrastructure projects sweeping China’s major cities.
So, the CCP’s protractedclearHow much will the battle costfinancialWhat about funding? And whose pockets will this money go into?freeNucleic acid amplification testing, Chinese people really don’t have to pay for it? Let’s talk about that today.
Nucleic acid industry trillions of finance
As you can see, starting from May 12, Beijing requires that anyone who wants to enter public places such as public institutions, business buildings, supermarkets and hotels must have a negative nucleic acid certificate within 48 hours. As of now, there are 17 cities including Shanghai and Shenzhen, all of which have the same requirements, involving about 200 million people, accounting for 14% of China’s total population.
According to data from Soochow Securities, as of April 30, when this round of epidemic broke out, 123 cities were under lockdown, involving a population of 180 million. The monthly expenditure on nucleic acid testing of these 180 million people was approximately 21.6 billion yuan (the same below).
Then, if all first- and second-tier cities in China implement normalized nucleic acid testing, based on a nucleic acid test every 48 hours, the monthly cost will reach 143.6 billion yuan, and the annual cost will be 1.7 trillion yuan, which is equivalent to In 2021, 1.5% of China’s GDP, 8.7% of public revenue, and more than the CCP’s military spending of 1.37 trillion yuan.
Since the outbreak of the epidemic, as of April 16, China has completed about 11.5 billion nucleic acid tests. That is to say, over the past two years, on average, each Chinese has done at least 10 nucleic acid tests.
Let’s take a look at Shanghai’s data. During this lockdown, an average of about 5.67 million people in Shanghai are doing nucleic acid testing every day. Some people calculate that from March 28 to April 24, in less than a month, Shanghai’s nucleic acid testing expenditure will be around 5.534 billion yuan, plus the antigen testing expenditure of 2.075 billion yuan, the total expenditure is 7.609 billion yuan. That is to say, this month, the testing fee alone will cost 1% of Shanghai’s 770 billion yuan fiscal revenue in 2021. We can imagine that if the normalization of sealing and testing at any time, then, in one year, at least 1/10 of the financial revenue will be contributed to nucleic acid testing. However, this calculation is not accurate, because once normalized, the financial The income will definitely shrink greatly, and maybe the fiscal revenue will be spent on nucleic acid testing.
So, what is the concept of the nucleic acid sampling circle that the CCP calls a 15-minute walk? It is about a radius of 1 km, almost a bus stop, and a living circle with an area of 3 square kilometers. In the urban area of Shanghai, it will cover 60,000 to 100,000 people. In China, there are now 18 cities with a population of over 10 million and 91 cities with a population of over 5 million.
According to estimates by Zheshang Securities, to achieve 15-minute nucleic acid sampling, about 320,000 testing points will be set up across China, and millions of sampling personnel will be required. However, the existing medical reserve personnel are already in short supply, which means that Re-recruited everywhere.
It is foreseeable that a popular occupation is emerging, and, under the CCP’s campaign-style zero-clearing policy, this occupation will certainly have some distinctive “privileges”.
Facts are also confirmed. Recently, Beijing, Shanghai, Hangzhou and other cities have offered attractive high salaries to recruit samplers from the society. A medical investment management company in Shanghai offered a daily salary of 1,000 yuan, and also offered various bonuses, employee travel, and stock options. There is also a more attractive recruitment content, stating that “assistant new crown testing laboratory personnel, 1,500 yuan a day, intermediate new crown testing personnel 2,000 yuan a day”.
Let’s recalculate the account and see how much the samplers will cost in the first- and second-tier cities. According to the “Guidelines for Nucleic Acid Testing Implementation” issued by China in March, the number of nucleic acid sampling personnel is the population divided by 360. Then, the total population of all first- and second-tier cities in China is about 510 million, which means that 1.4 million sampling personnel are needed.
If the daily salary in Hangzhou is 300 yuan, the annual salary expenditure of 1.4 million samplers in all first- and second-tier cities in China will be as high as 168 billion. This is only the first and second tier cities.
Where does the money come from?
So, where does the money come from? Two places, finance and medical insurance. Some people may think that this is all funded by the government, and that the nucleic acid test for ordinary people is free. is that so? So where does the government’s finances come from? tax. And health insurance is also out of the insurance purchased by the individual. And the government is running out of money, either by collecting more taxes in disguise, or by issuing bonds, or by printing more money. In short, the wool is still on the sheep.
In particular, in recent years, governments across China have generally been financially tight and even heavily indebted. According to Yicai statistics, since the beginning of this year, relevant units and personnel in Yunnan, Sichuan, Guangxi and other places have been held accountable for illegally borrowing money. According to reports, Yuxi City, Yunnan Province raised 623 million yuan in illegal debt financing, of which 596 million yuan was spent on epidemic prevention and control, accounting for 95.7%.
I believe this will never be a case. I remember that last year, data showed that in the first half of 2021, among the 31 provinces and cities in China, only Shanghai has a financial surplus, and many central and western regions have low self-sufficiency rates. at 30%.
If you are poor, you will change your mind. What should we do? We have seen that many institutions have recently begun to call for special national debts to return to the arena.
For example, Yuekai Securities stated in the research report: Since March, the downward pressure on the economy has increased, coupled with the downturn in the land market and other factors, resulting in a further decline in fiscal revenue. At the same time, coupled with the increase in the scale of anti-epidemic expenditures, Local governments are under great pressure to balance their payments. It is proposed to issue 2 trillion special treasury bonds to maintain China’s social and economic stability.
So, where does this “stability maintenance” fee come from? Maybe it will be apportioned and deducted from everyone’s salary.
Where did the money go?
So where did all the money go? We have seen that since the outbreak of the epidemic, the profits of a group of nucleic acid testing companies have skyrocketed. According to statistics from China Securities Journal, as of April 27, the net profit of 21 companies in the genetic testing sector increased year-on-year, accounting for more than 70% of the total, of which 11 companies had a year-on-year increase in net profit of more than 100%, with the highest increase of more than 100%. 3,000%.
At the beginning of the outbreak in Wuhan in 2020, Shengxiang Bio and Zhijiang Bio became two of the first companies to be approved for the launch of new coronavirus detection products. They were listed in August 2020 and January 2021.
Among them, the total operating income of Zhijiang Bio in 2020 exceeded 2 billion yuan, an increase of 692.72%, and its net profit exceeded 1.1 billion yuan, an increase of 1,708.96%. In addition, Shengxiang Bio’s total profit in 2020 and 2021 will exceed 5.6 billion yuan.
The most exaggerated one is Jiu’an Medical, because Jiu’an Medical’s net profit in the first quarter of this year reached 14.3 billion yuan, which is equivalent to a daily net profit of 158 million yuan.
Stimulated by such huge profits, of course, more and more companies have been attracted to enter the market, but more and more problems have also been exposed.
For example, recently, in the unified community of Wuliqiao Street, Huangpu District, Shanghai, 13 residents were issued with nucleic acid “positive” within one day. One resident questioned and asked to be re-tested. The result of the review was that 13 people were “negative”. .
As soon as the news came out, the citizens of Shanghai were in an uproar, and many residents of Huangpu District disclosed online that they had experienced the trouble of “false positive” nucleic acid. The culprit is the third-party testing agency responsible for local nucleic acid testing-related business – Zhongke Runda Laboratory.
This Zhongke Runda is a company jointly held by the listed company Runda Medical, Shanghai Anbaida Investment, and the Shanghai Advanced Research Institute of the Chinese Academy of Sciences. In March 2020, Zhongke Runda obtained the Shanghai clinical inspection quality control The center’s nucleic acid testing capability certification has become an entrusted third-party company for new coronavirus testing. In that year, the business of Zhongke Runda achieved a year-on-year increase of 251%. In 2021, the company’s two third-party laboratories have a total revenue of 353 million yuan, a year-on-year increase of 125.60%. The total revenue in two years exceeded 5.5%. billion.
At this year’s annual report exchange meeting, executives of Runda Medical revealed that since April this year, the company’s testing capabilities have been greatly improved, from tens of thousands of tubes per day in March to 300,000 to 400,000 tubes per day at present. If we calculate it by 300,000 tubes, Runda Medical’s daily testing revenue can reach about 8 million yuan, and then the monthly testing revenue in April will exceed 200 million yuan.
In such a short period of time, Runda, which is backed by a state-owned enterprise, has ranked among the top three in Shanghai in terms of the scale of nucleic acid testing for non-main business.
Moreover, it can be seen that under the CCP’s policy of clearing and normalizing, the construction of nucleic acid sampling points in major cities is also unfolding like an “arms race”.
Recently, Beijing Chaoan Medical Laboratory has become a topic again. This company, which was just registered on April 26 this year, participated in the nucleic acid testing in Beijing on May 6, which means that Beijing Chaoan got the pre-approval in less than 6 working days.
Moreover, the registration time is also of concern, because on April 25, Beijing Chaoyang District just announced the improvement of control, and on April 26 the next day, the nucleic acid detection company was registered for industrial and commercial establishment. Some netizens disclosed that, usually, it is difficult for ordinary people to register for units with “so-and-so” in the company name.
In the face of doubts from the outside world, on May 16, the Chaoyang District Health and Health Commission gave a situation statement called the increase of nucleic acid detection capacity. Both urban and urban health departments have established green channels for approval to shorten the approval time as much as possible.
So, who is lucky enough to walk on this green channel, or the “Golden Road”?
According to data from Tianyancha, in 2021, there will be 437 new medical inspection-related institutions, with an annual growth rate of 25.1%, the highest in the past. Of course, these companies are also making a lot of money.
For example, the operating income of Golden Mile Medical in 2021 will be 11.943 billion yuan, a year-on-year increase of 44.88%, and the net profit attributable to shareholders of listed companies will reach 2.189 billion yuan, a year-on-year increase of 47.03%. Among them, the revenue of third-party medical diagnosis services was 11.303 billion yuan, accounting for 94.64%. It is understood that KingMed has established 39 medical laboratories in mainland China, as well as in Hong Kong and Macau.
In addition, Dean Diagnostics, a leading company in third-party medical testing, also achieved a soaring performance. We won’t go into details.
The rich and powerful behind nucleic acid
In fact, we can all guess that these inspection companies that can make huge profits in the epidemic in China must have some background. In fact, behind many nucleic acid testing companies are CCP dignitaries.
In February this year, a recording of a conversation by Huang Wansheng, a researcher at the Harvard-Yenching Institute, was circulated on the Internet. In this recording, which may be the background of a private party, Huang Wansheng mentioned that the Beijing authorities insisted on “clearing” the back of the epidemic prevention. , involving the white gloves of senior officials and their family members, and mentioned that there is a company that made 670 billion yuan just by relying on nucleic acid testing.
We have seen that the recent sudden death of Tianjin Mayor Liao Guoxun has also aroused suspicion from the outside world. On April 27, the CCP officially announced that Liao Guoxun, deputy secretary of the Tianjin Municipal Committee and mayor of the CCP, had died after “rescue failure due to sudden illness.” However, it was rumored on the Internet that he had committed suicide.
Some overseas media broke the news that Tianjin bureau-level officials had been told that “Liao Guoxun died of suicide.” It is said that Liao Guoxun committed suicide because he was reported to have a relationship with two medical nucleic acid testing companies in Tianjin.
It is said that Liao Guoxun committed suicide in the office in the afternoon after being interviewed by the Central Commission for Discipline Inspection on the morning of April 27. It was not discovered until after 10pm.
We cannot verify whether Liao Guoxun committed suicide or not. However, the CCP has no officials and no corruption. I believe that behind the pain of “clearing” the ordinary Chinese people, there must also be senior officials of the CCP who are making a fortune in the epidemic.
Institute of Financial and Commercial Economics
Planning: Yu Wenming
Written by: Chen Siyu
Editor: Wei Ran, Yu Wenming
Cantonese Dubbing: Ada
Producer: Li Songyun
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