🏛️ NBFI Sector | Wang Yi's visit to Mongolia | Public opinion survey results

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Good morning! We’re planning to hold an event in the U.S. and can’t wait to share more details with you soon. Stay tuned!

🤔 DID YOU KNOW?

🤝 WANG YI BEGINS 2-DAY TOUR IN ULAANBAATAR

What’s the importance behind it? 

Considering all the problematic circumstances around COVID-19, China’s border closures, the subsequent export issues we’re currently facing and the overall geopolitical tension in the international area, China's Foreign Minister Wang Yi’s 2-day stay in Mongolia is definitely not to be overlooked.

Besides, since his visit is taking place right after the Russian FM’s visit and right ahead of the UN Secretary-General’s visit to Mongolia, it’s no wonder the public is so concerned about the particulars of the meetings that he has to attend here.

So what’s the agenda?

• Official talks with Mongolian Foreign Minister B.Battsetseg

• Courtesy calls on President U.Khurelsukh, Chairman of the State Great Khural G.Zandanshatar and Prime Minister L.Oyun-Erdene

How about the discussion topics?

• Issues regarding the comprehensive strategic partnership between the countries

• Acceleration of construction projects implemented with economic aid and soft loans provided by China

• Expansion of border checkpoints’ operations

• International and regional issues of mutual interest

• Increase in export of mining products from Mongolia

• Stimulation of economic cooperation

We’ll keep you updated on the progress of the meetings on our social media accounts. So if you don’t follow us, here are the links to our facebook, instagram and twitter. 

📢 DATA STORY

The Independent Research Institute of Mongolia has recently conducted a public opinion survey in the country on behalf of the International Republican Institute. The results showed that most Mongolians are worried about economic issues, with 58% of the respondents citing high prices and the cost of living. The survey also finds that 74% of Mongolians feel that corruption is a very serious problem and there is little faith with institutions to address it. Furthermore, as shown in the picture above, the younger generation is more unsatisfied with the state of events in the country, compared to the older generation of people aged above 56.

🏛️ NBFI SECTOR ACES FIRST HALF OF 2022

In the first half of 2022, the net profit of the NBFI sector reached ₮149.2 billion - a 76% YoY growth comparable to that of the banking sector. Let’s take a detailed look at why Mongolian NBFIs fared so well in the first 6 months of the year.

More loans, but less nonperforming ones

As of the last quarter, a total of 527 NBFIs were operating in the country. Their total net loans hit ₮2.4 trillion, increasing by 62.6% from the same period last year. At the same time, the NPL ratio in the overall sector fell by 3 percentage point to 7.2%.

Some interesting stats

• Assets: The total assets of NBFIs exceeded ₮3 trillion for the first time, reaching ₮3.18 trillion - an increase of 40% from the same period last year.

• Shares: The valuation of shares owned by NBFIs decreased by 68% from the beginning of the year to ₮4.5 billion. Perhaps, due to the fall in stock prices.

• Foreign currency loans: NBFIs no longer have short-term domestic bank foreign currency loans of up to 1 year, ₮4 billion of which they had a year ago. It seems that they now consider foreign currencies quite risky.

The NBFI quartet

Although NBFIs had a profitable half year overall, not all 4 public companies of the sector seem to have gone along the overall trend…

• Ard Credit (ADB): It appears that their first half of the year was not as good as that of their peers - the net profit of Ard Credit dropped to ₮661.6 million, decreasing by 85.9% from the same period in 2021.

• InvesCore (INV): The company whose stock price has been increasing by an average of 33.7% per year since the IPO, managed to raise their net profit to ₮14.8 billion in the first half of 2022. Compared to the same period last year, that’s a 102.9% growth. 

• LendMN (LEND): Their service fee income made up ₮7.5 billion in the first half of the year, resulting in an increased net profit of ₮1.7 billion.

• Tandem Invest (VIK): The company’s revenue grew 2.5 times from ₮383 million in the first half of last year to ₮976 million, increasing their net profit by 143.8% to ₮432.5 million.

🏃‍♀️ QUICK STORIES

📌 UAE and Mongolia to strengthen bilateral relations. UAE’s Minister of Economy has recently met Mongolia’s Ambassador to explore opportunities to boost trade and economic cooperation between the two countries. The discussions shed light on the possible Comprehensive Economic Partnership Agreement.

📌 International mongolists gather to discuss Chinggis Khaan’s heritage. The "World of Chinggis Khan and Mongolian Studies" conference on Mongolian Studies commenced on August 5 at the Government Palace with the participation of 54 researchers from 14 different countries. It  will be held in 5 sessions and will include a total of 155 research presentations.

📌 UN Secretary-General to pay an official visit to Mongolia. During the visit, Antonio Guterres will pay a courtesy call on President U.Khurelsukh and hold meetings with Chairman of the State Great Khural G.Zandanshatar, Prime Minister L.Oyun-Erdene and Foreign Minister B.Battsetseg. It will be the first visit by a UN Secretary-General to Mongolia since Ban Ki-moon’s visit in 2009.

📌 Mongolian producer receives Uncaged Award for Best Feature Film at NYAFF. The New York Asian Film Festival was held for the 20th time this year, giving New York audiences a chance to enjoy the boldest creations of Asian cinema. “The Sales Girl” by Janchivdorj Sengedorj won the Uncaged Award for Best Feature Film, outperforming other participating films from 7 different countries.

🟦 TOP NEWS

1. 2022 MONGOLIA INVESTMENT CLIMATE STATEMENT. (U.S. Embassy in Mongolia)

2. ‘The Sales Girl’ film wins award from New York Asian Film Festival. (MONTSAME)

3. New World Bank Country Director for China, Mongolia and Korea. (MONSTAME)

4. USAID-WHO Partnership Strengthens Health Systems to Combat COVID-19 in Mongolia. (U.S. Embassy in Mongolia)

5. UN Secretary-General to pay official visit to Mongolia. (MONTSAME)

6. Mongolia, How The "Switch To Austerity” Sparked A National Uprising. (WorldCrunch)

👃 GLIMPSE OF MONGOLIA

About: The Mongolian snuff bottle, a.k.a. Khöörög, is an accessory primarily used by men to show hospitality and good intention when greeting someone. If someone hands you over their Khöörög, slightly loosen its cap, sample the snuff, and return it without screwing the cap back on.

• Khöörögs are made with precious stones, such as chalcedony, mane, jasper, agate, turquoise, etc.

• Mongolians carry snuff boxes in colorful silk bags called Daalin.