Good Morning. Welcome to The Wire’s daily news roundup. Each day, our staff gathers the top China business, finance, and economics headlines from a selection of the world’s leading news organizations.
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The Wall Street Journal
- Property Developer China Evergrande Erases Market Losses — The company had sought to assuage investor concerns about its liquidity following a steep selloff, and some investors took advantage of its distressed U.S.-dollar-bond prices to scoop up the junk-rated debt.
- China’s Yuan Is Riding High as Economy Recovers, Foreign Investors Pump In Money — The yuan is closing out its strongest quarter against the dollar in more than a decade, boosted by optimism over China’s economic outlook and by the country’s comparatively high interest rates.
- Chinese Retailer JD.com’s Health-Care Business Plans Hong Kong IPO — JD Health filed an application to go public in Hong Kong, in a deal that people familiar with the situation said could raise at least $3 billion.
- U.S. Sets Export Controls on China’s Top Chip Maker — The U.S. action threatens to cut off SMIC, which is at the heart of Beijing’s efforts to compete in advanced technology, from equipment used to manufacture chips.
- Chinese Property Developer Decries Fabricated Documents After Selloff — China Evergrande Group said documents circulating online about a corporate restructuring involving a key subsidiary were fake, after they spurred a steep selloff in the Hong Kong-listed real-estate developer’s bonds and shares.
- TikTok Download Ban Is Blocked by Judge — The federal judge’s move gives the Chinese-owned app a short-term victory as it scrambles to ensure its future while caught in a battle of brinkmanship between global superpowers.
- Chip Maker Kioxia Calls Off $16 Billion IPO After Huawei Fallout — The Japanese semiconductor maker called off what was to have been one of this year’s biggest stock offerings, after earlier saying that U.S. export restrictions on China’s Huawei Technologies were hurting its business.
- China’s Export Machine Looks Inward as Global Risks Rise — President Xi Jinping wants to encourage domestic consumption as a hedge against potential commercial or geopolitical disruption, but merchants in the export-oriented city of Yiwu face hurdles to selling more goods at home.
- Chinese Companies Head Home to Raise Money, as Beijing’s Relations With U.S. Fray — China’s most ambitious and fastest-growing companies once flocked to U.S. markets to raise money. Since November, eight that originally went public in New York have added listings in Hong Kong.
- Xi Says China Will Continue Efforts to Assimilate Muslims in Xinjiang — China’s leader declared success in his approach to governing the region of Xinjiang, signaling no letup in the Communist Party’s forceful campaign to assimilate millions of ethnic Muslims on the country’s northwestern frontier.
- Where Trump and Biden Stand on Trade — President Trump has called tariffs “the greatest negotiating tool in the history of our country.” His challenger, Joe Biden, says he will rethink the use of tariffs and try to create a united front to confront China.
- A Tale of Two Chinese Economies — Beijing is promoting export-led growth as the domestic recovery lags.
The Financial Times
- Cockamamie TikTok deal fails on every measure — National security concerns are not met and its arbitrary interventionism is Beijing-esque.
- VW and Chinese partners pour €15bn into country’s electric car market — German group steps up battle with Tesla as it plans 15 electrified models for Beijing market by 2025.
- HSBC shares rebound after China’s Ping An increases its stake — Bank’s biggest shareholder raises holding despite Sino-US tension.
- The new gold rush: western investors offset soft eastern demand — As ETFs helped push the price to record highs, Indian and Chinese consumers are selling the precious metal.
- A Chinese filmmakers’ playbook: data analysis and diplomacy — Huanxi Media must navigate censorship as well as the challenges of the streaming era.
- Vast Chinese debt market requires big reforms — Investors in high-yielding onshore bonds face series of regulatory, legal and trading risks.
- US-China tensions put Kioxia’s $3.2bn IPO on ice — Company postpones what would have been Japan’s biggest listing this year.
- China’s Golden Week to test tourist demand after Covid-19 — Industry forecasts 600m trips during traditional busy period for travel and spending.
- Global carmakers bet on China’s electric vehicle rebound — VW and Nissan among those showcasing clean energy offerings at annual Beijing motor show.
The New York Times
- China’s Economy Comes Roaring Back, Led by Wealthy Consumers — Big crowds at places like the Beijing auto show are a sign of good news, but China needs its less affluent to spend more before its growth engine can return to full speed.
- Brushing Off Criticism, China’s Xi Calls Policies in Xinjiang ‘Totally Correct’ — Mr. Xi made the remarks at a meeting on the region of western China, suggesting that the Communist Party remains committed to drastically changing Uighurs and other Muslim minorities.
- China Gives Unproven Covid-19 Vaccines to Thousands, With Risks Unknown — Drug company workers, government officials and others have been injected outside the usual testing process. More will be soon, bewildering experts who worry about potential ill effects.
- Japan Is Paying Firms to Make Things at Home. But China’s Pull Is Still Strong. — Japan is attempting a delicate balancing act as the pandemic has underlined the risks of the world’s economic reliance on Beijing.
- China Is on a Building Binge, and Metal Prices Are Surging — Iron ore, nickel, copper and other metal prices are rising as China restarts construction, and the global economy could benefit.
Caixin
- China Expands Access to Qualified Foreign Investment Programs — QFII and RQFII systems to be combined in long-signaled overhaul of rules designed to further open China’s capital markets to foreign investors.
- Indebted, Money-Losing Household Goods Maker Can’t Find $80 Million of Its Merchandise — Shenzhen-listed Lonkey accuses two of its partners of losing its products. They say they never signed on to work with the company.
- JD.com’s Latest Tonic Comes Bottled in Health Unit IPO — JD Health plans to raise up to $2 billion in Hong Kong listing, as e-commerce giant’s fintech unit also seeks IPO on Shanghai STAR Market.
- Asset Swap Gives Lift to China’s Boeing Challenger — AVIC Aircraft has acquired three assets from companies connected to its state-run controlling shareholder.
- Cover Story: Why TikTok May Be Back to Square One With Trump — A U.S. judge temporarily blocked a key part of Trump’s ban on Sunday, even as ByteDance has yet to form a plan that would satisfy either Washington or Beijing.
- Chinese Electric Vehicle Startup Xpeng Receives Investment to Build Production Base in Guangzhou — Guangzhou GET Investment, which is wholly owned by Guangzhou Economic and Technological Development Zone, has agreed to invest 4 billion yuan ($590 million) to support Chinese electric vehicle startup Xpeng’s future development, as the carmaker begins exploring business opportunities in overseas markets.
- Video Site Operator Mango Plans to Raise $660 Million to Expand Content Library — Mango Excellent Media Co. Ltd., the operator of Chinese online video platform Mango TV, said Monday that it plans to raise 4.5 billion yuan ($660 million) through a share sale that will enable it to expand its content library and establish new technological platforms amid intensifying competition with rivals iQiyi, Youku and Tencent Video.
- Chinese Biotech Firm Creative Biosciences Raises $88m From IDG, CDH, Others — Chinese early-stage cancer screening solutions developer Creative Biosciences (Guangzhou) Co., Ltd, on Sunday announced that it has pocketed 600 million yuan ($88 million) in a Series C round led by healthcare-focused private equity firm Tsing Song Capital.
South China Morning Post
- China’s Xpeng unveils a flying car prototype in its debut at the premier trade show of the world’s largest vehicle market — Xpeng Motors, armed with cash from its US$1.7 billion New York stock sale last month, said it’s developing a flying car to sharpen its research into mobility, electrification and digitalisation.
- Do Chinese Covid-19 vaccines work, and which countries will get them? — China is among the world’s front-runners in developing Covid-19 vaccines. Its indications that mass production of vaccines is imminent has raised questions about capacity, efficacy and availability.
- Hong Kong expats get windfall amid coronavirus gloom: rents likely to fall 10 to 15 per cent in world’s costliest place for foreigners to live — New Zealander Darryl Parrant was pleased when he renewed the lease on his 800 sq ft flat in Hong Kong’s affluent Mid-Levels area.
- Coronavirus: Hong Kong finance chief pushes for lead role in global supply chain, technology amid pandemic, but economists suggest city ill-suited for the task — Hong Kong’s finance secretary has asked for a policy rethink of the city’s strategy for surviving Covid-19 and a rapidly shifting geopolitical landscape, warning of a slow economic recovery amplified by border closures unlikely to be reversed any time soon.
- China’s state-owned media pour vitriol on ByteDance-Oracle deal, indicating Beijing approval could be a pipe dream — Ever since news hit that ByteDance had agreed a deal with Oracle Corp and Walmart for its US TikTok operations to satisfy White House demands, there has been a stream of critical commentaries from China’s state-owned media, throwing the agreement into further doubt.
- China’s population crisis: Beijing must address its falling births and ageing workforce — A crisis is looming for China. The country’s workforce is greying and its population will soon begin shrinking – if it is not already. This is set to create big problems for the world’s most populous country.
- China says it has completed development of CAP 1400 third-generation nuclear technology — China has completed the development of a third-generation nuclear technology that could help cut greenhouse gas emissions by millions of tonnes a year, the State Power Investment Corporation announced on Monday.
- US elections: Who is better for the stock markets of China and Hong Kong, a Democrat or Republican president? — As voters in the United States prepare for the presidential election in November, the South China Morning Post takes a look at the correlation between the occupant of the Oval Office and global stock markets. In this 14th part of the series, Yujing Liu looks at 40 years of market data to see whether a Democrat or Republican was better for the markets in China and Hong Kong.
- China’s industrial giants see profit growth for fourth straight month in August, but still down in 2020 — China’s industrial giants saw their monthly profits grow for a fourth consecutive month in August, while remaining negative over the first eight months of the year.
- Tech collaboration between mainland and Hong Kong is key to fostering innovation, experts tell forum — Hong Kong and mainland China should seek technological cooperation to foster innovation, according to speakers who participated in the Global Innovation and Technology Forum held in Hong Kong, Chengdu and Singapore on Monday.
- Cryptocurrency helps ship 1 trillion yuan out of China to casinos, gambling every year — At least 1 trillion yuan (US$145.5 billion) worth of funds flows out of China into gambling activities every year, aggravating the country’s economic and financial security risks, according to a senior official at the Ministry of Public Security.
- Guangzhou begins airport expansion as city jostles with Shenzhen and Hong Kong for aviation dominance — Guangzhou is speeding up plans to become the leading aviation hub in the Greater Bay Area, as the city’s Baiyun International Airport started a third phase of expansion on Sunday.
- Chinese city seeks technological breakthroughs to help nation survive restrictions imposed by United States — Chengdu, the capital of Sichuan province, used to be known as a laid-back city full of teahouses and mahjong – a food paradise with a particular chilli flavour and plenty of cute pandas. But bustling construction in the far south urban area tells another story – the city is building itself into a national innovation centre that will help tackle technological bottlenecks hampering China’s development.
Bloomberg
- China’s Sina Agrees to Go Private in Sweetened $2.6 Billion Deal — Sina Corp. agreed to go private after an entity led by its chairman, Charles Chao, boosted its offer for the Chinese social media company to $43.30 a share in cash.
- Tesla’s $25,000 Car Doesn’t Worry Biggest Rivals in China — Tesla Inc.’s plan to build a $25,000 car within the next three years doesn’t seem to have fazed China’s most-promising electric vehicle startups, with executives at the Beijing Auto Show saying Elon Musk can bring it on.
- China’s Top Leaders to Meet Oct. 26 to Discuss Economic Plans — China’s top leaders will meet Oct. 26-29 to draft economic and social policies for the next five years, as President Xi Jinping prioritizes domestic consumption and innovation to counter the threat of decoupling from the U.S.
- China Foreign Investors Cheer New Rules on Derivatives, Debt — China has taken another step toward opening its financial system to the rest of the world by expanding the range of investment options available to foreigners.
- Coronavirus Pandemic: China Is Experiencing a K-Shaped Economic Recovery — The migrant laborers who lost their jobs received no benefits and aren’t counted as unemployed.
- Beijing Restricts Frozen Food Import From High-Risk Covid Places — China’s capital city urged companies to halt imports of frozen food from countries that have been severely hit by the pandemic as fears continue to mount over the possibility of transmission through packaging.
- China Wants to Rely Almost Entirely on Pork Produced at Home — China, the top pork consumer, has set a long-term goal to be almost completely self-sufficient in the staple, with big hog farms dominating the industry, as the nation seeks to reduce its dependency on food imports.
- Trump Is Still Trying to Pressure Merkel Into Banning Huawei — U.S. President Donald Trump’s administration is maintaining pressure on Chancellor Angela Merkel to exclude Huawei Technologies Co. from Germany’s fifth-generation wireless network, though a high-level American official received no guarantees the Chinese supplier would be shut out at meetings in Berlin last week.
- Oil Market in a Muddle From Mixed Messages on Demand, Glut — China’s oil stockpiles are near a record despite the return of traffic jams and rising industrial activity.
- Crypto Broker Sees Users Drawn to Bots to Beat Volatile Trading — A fledgling Chinese brokerage is betting that investors will flock to bot trading to capitalize on the price swings in the $300 billion cryptocurrency market.
- Ping An Seeks to Manage $100 Billion Offshore as Demand Rises — Ping An Insurance (Group) Co., China’s largest insurer by market value, is tapping growing global demand for Chinese assets to expand its offshore asset management business as competition with foreign entrants intensifies.
- China’s Rebound Lost Momentum in September, Early Data Show — China’s economic rebound showed signs of plateauing in September, weighed down by lackluster home and car sales, a weaker stock market and worsening business confidence.
- China’s August Industrial Companies’ Profit Rises 19% on Year — August profit was 612.8 billion yuan ($89.8 billion), China’s National Bureau of Statistics said on website.
- China Is Too Weak to Retaliate Against U.S. Economy — There’s a reason it hasn’t followed through on so many of its blistering threats of economic retaliation against the U.S.
- Nissan May Return to Profit in 2021 If Momentum Holds Up — Nissan Motor Co. expects to return to profitability in 2021 if the current momentum continues, with demand in China already bouncing back from the pandemic, Chief Executive Officer Makoto Uchida said.
- Tesla’s Nemesis in China Is a Tiny $5,000 Electric Car From GM — Known globally for its trucks and muscle cars, General Motors Co. has scored a surprise hit in China with its local partners: a petite electric vehicle that sells for less than $5,000.
- Ray Dalio Sees Enemy Within as He Ponders U.S.-China Clash — Ray Dalio used the latest installment of his ongoing series on the changing world order to identify clear red lines that, if crossed, could result in a deadly war between China and the U.S., but the real enemy in the conflict may lie within.
Reuters
- China to tighten supervision of country’s booming online insurance business — China’s banking and insurance regulator issued draft rules on Monday to rein in risks accumulated in country’s booming online insurance sector.
- China’s leaders to endorse lower 2021-2025 growth target at key meeting: sources — China’s leaders are poised to endorse a lower economic growth target for Beijing’s next five-year plan compared with 2016-2020, as authorities navigate growing challenges fuelled by a deepening rift with the United States, policy sources said.
- China’s biggest automaker SAIC to have nearly 100 new EV models by 2025 — SAIC Motor, the biggest automaker in China, plans to have nearly 100 new energy models with its partners by 2025, its president Wang Xiaoqiu said on Monday.
- Volkswagen, Chinese ventures to invest 15 billion euros in electric vehicles — Volkswagen AG said on Monday it and three local joint ventures plan to invest around 15 billion euros ($17.44 billion) in electric mobility in China, the world’s biggest car market, between 2020 and 2024.
- China’s factory activity likely grew at slightly faster pace in September: Reuters poll — China’s factory activity likely expanded at a slightly faster pace in September, a Reuters poll showed on Monday, as the economy extends a steady recovery from the coronavirus crisis.
- Chinese investors flock to newly-launched funds targeting Ant IPO — Chinese investors are pouring into newly-launched mutual funds targeting Ant Group’s upcoming initial public offering, underscoring strong demand for technology shares at a time when Chinese tech firms are facing increasing U.S. scrutiny.
- SMIC’s Hong Kong shares tumble after U.S. tightens export restrictions — Hong Kong-listed shares of Semiconductor Manufacturing International Corp fell more than 7% on Monday after the United States imposed restrictions on exports to China’s biggest chip maker, citing a risk of military use.
- Beijing autoshow: China’s back, EVs booming, outlook uncertain — China’s auto market has rebounded smartly from the COVID-19 crash in recent months, executives said on Saturday, as a rare in-person trade show was dominated by talk of recovery in the world’s biggest car market.
- China’s Changan Ford JV sales to grow this year, company official says — Chongqing Changan Automobile Co said on Saturday that sales of the Changan Ford joint venture will grow this year.
- China’s GAC, BMW expect China sales to grow this year — Chinese automaker GAC and Germany’s BMW expect sales to grow this year in China, the world’s biggest auto market, as consumption revives from COVID-19 lockdowns, officials said on Saturday.
- Audi considering electric car venture with China’s FAW: Automobilwoche — German premium brand Audi is in talks with long-term partner FAW Group [SASACJ.UL] about creating a second joint venture to build electric cars on its PPE platform in China, Germany’s Automobilwoche reported on Saturday.
- China needs to step up global financial integration: FX regulator — China needs to further open its capital markets and financial industry to avoid being globally isolated, a senior foreign exchange regulator said on Saturday.
- Some 3,500 U.S. companies sue over Trump-imposed Chinese tariffs — About 3,500 U.S. companies, including Tesla Inc, Ford Motor Co, Target Corp, Walgreen Co and Home Depot have sued the Trump administration in the last two weeks over the imposition of tariffs on more than $300 billion in Chinese-made goods.
- India unlikely to revoke PUBG ban despite Tencent license withdrawal – source — India is unlikely to revoke a ban on PlayerUnknown’s Battlegrounds (PUBG) following PUBG Corp’s decision to withdraw the mobile game’s publishing rights in the country from China’s Tencent , a senior government official said on Friday.
Xinhua
- Economic Watch: China’s industrial profits continue to see steady growth as economy firms up — Profits of China’s major industrial firms totaled 612.81 billion yuan (about 90 billion U.S. dollars) last month, increasing by 19.1 percent year-on-year.
- Chinese yuan strengthens last week — China’s yuan strengthened against a basket of currencies last week, according to the China Foreign Exchange Trade System (CFETS).
- Xinhua Headlines: Leading Chinese fintech injects fresh impetus into world economy — As many small and medium-sized enterprises (SMEs) worldwide have been hit hard by the COVID-19 pandemic, fintech is expected to provide them opportunities to shake off the negative impact and thus inject new momentum into the global economic recovery.
- Factbox: China’s progress in economic resumption — China’s success in controlling COVID-19 means the economy is in a steady revival mode. The following facts and figures indicate how the country is forging ahead in resuming work and production:
- China further eases foreign access to domestic capital market — China has further opened up its domestic capital market to foreign investors by introducing revised rules for the country’s major inbound investment schemes.
- ICBC Singapore, DBS jointly provide Singapore’s first SORA-pegged club loan to Olam — The Singapore Branch of the Industrial and Commercial Bank of China (ICBC Singapore) partnered with the DBS Bank (DBS) in providing Singapore’s first club loan pegged to the Singapore Overnight Rate Average (SORA) for the global food and agri-business Olam International Limited (Olam), according to a press release from DBS on Monday.
- Sino-German forum discusses future of NEV cooperation — The Sino-German Forum on Cooperation and Development of New Energy Vehicles (NEVs) was held Monday in Haikou, capital of south China’s Hainan Province.
- China’s tourism industry recovers steadily amid epidemic control — Data from China’s Ministry of Culture and Tourism showed a positive trend in the recovery and development of the country’s tourism industry, with epidemic control measures in place.
- China to promote high-quality development of animal husbandry industry — The General Office of the State Council has issued a guideline on promoting the high-quality development of the animal husbandry industry, outlining priorities to boost the sector’s efficiency and competitiveness.
- Trade commitments between Hong Kong, Brunei to take effect — A spokesman for the Hong Kong Special Administrative Region (HKSAR) government said on Monday that the commitments relating to Hong Kong and Brunei Darussalam, an Association of Southeast Asian Nations (ASEAN) member state, under the trade and investment agreements between Hong Kong and ASEAN, will enter into force on Oct. 20.
- Fourth CIIE starts registration of business exhibitors — The fourth China International Import Expo (CIIE) has opened registration for its business exhibition, the organizer said on Monday.
- South China’s Hainan free trade port launches first inter-continental shipping line — The Hainan free trade port in south China’s Hainan Province on Monday launched its first inter-continental shipping line linking the port with Australia and other Asia-Pacific countries.
- Kenya to focus on China as key destination for exports — Kenya plans to focus on the Chinese market in order to boost its exports in the next few years, an official said on Monday.
Other Publications
- Nikkei Asian Review: Chinese cleaning robot startup Gaoxian raises $22m — Gaoxian Automation Technology Development, which operates commercial cleaning robot brand Gaussian Robotics, has raised 150 million yuan ($22 million) in its Series B+ financing round.
- Brookings: Lessons from the Trump administration’s policy experiment on China — Propelled by an electoral victory and a conviction that previous American policy on China had failed, the Trump administration ushered in a significant shift in America’s approach toward China upon entering office.
- OilPrice: Russia Remains China’s Top Oil Supplier — Russia was the biggest exporter of crude oil to China last month, for the second month in a row, Reuters reported, citing Chinese customs data. Saudi Arabia came second, but its exports to the world’s top importer fell by 300 percent in August.
