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
- Neurological Drugmaker BioShin Gets $60 Million to Tap Asia-Pacific Market — OrbiMed Advisors led the funding round for the Shanghai-based subsidiary of Biohaven Pharmaceutical, maker of Nurtec.
- Pentagon Can Help Beat China in 5G — Share its under-used spectrum so private businesses can use it commercially.
- Possible China Blacklist Adds More Uncertainty for U.S. Businesses — The division of the internet and technologies along national lines could weigh more heavily on smaller companies, which may find it difficult to compete in countries that prefer domestic competitors.
The Financial Times
- Business must keep pushing for freedom in Hong Kong — Companies should find ways to reduce their vulnerability to Beijing.
- How likely is a US-Taiwan trade deal? — President Tsai Ing-wen takes risk in seeking to deepen ties with US and reduce reliance on China.
- Chinese Communist party asserts greater control over private enterprise — Xi Jinping moves to strengthen role in wake of Covid-19 and heightened US tensions.
Caixin
- Bitter Winter Looms for China’s Northeast as Coal Industry Reforms Bite — Domestic supply shortages could mean the worst fuel deficit since industry rationalization started in 2016.
- Biopharma Firm Zai Lab Raises $825 Million in Hong Kong IPO — Nasdaq-listed company sees strong debut in Asian hub on investor interest in health care.
- Trip.com Jets Into Online Payments — With acquisition of a Shanghai-based licensee, China’s leading travel agent is following in the footsteps of e-commerce giant Pinduoduo and media unicorn ByteDance.
- Huawei Showcases Smart Car Technologies at Beijing Auto Show — Huawei has made an appearance at the Beijing International Automotive Exhibition 2020, sending a message that the Chinese telecoms equipment manufacturer wants to push further into the auto industry which is undergoing a technological revolution that will see cars become “smarter”.
- Chinese Drug Manufacturer InventisBio Bags $147m Led by Hillhouse Capital — Clinical stage, small molecule drugs maker InventisBio Inc., has garnered 1 billion yuan ($147 million) in a Series D funding round led by venture capital firm Hillhouse Capital.
- Profits of Weibo Soar Even as Revenue Falls — Chinese social media platform Weibo reported a jump of 92.6% in net profit in the second quarter of 2020, despite a 10% revenue decline.
South China Morning Post
- Beijing likely to reject Arm-Nvidia deal over US fears, says former Lenovo chief engineer — The former chief engineer of Chinese computer giant Lenovo Group believes Beijing may block Nvidia’s acquisition of SoftBank-owned chip architecture company Arm over fears that the technology would fall under US export controls.
- Geely gets nod to raise capital on Shanghai’s Nasdaq-like Star Market as carmaker remakes itself into tech company — Geely Automobile Holdings, China’s largest private carmaker and owner of Volvo Cars, has obtained regulatory approval for a secondary listing on Shanghai’s Nasdaq-like exchange for start-ups, as it redefines itself as a technology company with its line-up of 10 electric cars by 2025.
- Hong Kong-mainland China border could reopen soon as city seeks to recover from Covid-19 — Hong Kong is in advanced internal talks to reopen the border for local residents living in mainland China to return to the city, with officials hoping the move will help revive the beleaguered economy.
- Portugal rejects US warning of sanctions over Chinese investment as rivalry heats up — Lisbon has rebuffed a warning from the US ambassador that sanctions could be imposed on Portuguese companies with Chinese investment, the latest sign that rivalry between Washington and Beijing over Europe is intensifying.
- Mongolia joins China to become seventh member of Asia-Pacific Trade Agreement — Mongolia formally acceded to the Asia-Pacific Trade Agreement (APTA) on Tuesday, becoming the seventh member of the long-standing regional pact.
- China’s economic growth to be 2 per cent in 2020 but coronavirus to keep Asia’s growth at lowest since 1967, World Bank warns — The coronavirus pandemic is expected to lead to the slowest growth in more than 50 years in East Asia and the Pacific as well as China, while up to 38 million people are set to be pushed back into poverty, the World Bank said in an economic update on Monday.
- HK$500 billion in public works to be ramped up over five years to drag Hong Kong out of recession — About HK$500 billion (US$64.5 billion) in public works will be accelerated over the coming five years to pull Hong Kong out of recession, the city’s leader has pledged.
- China’s EV makers pour billions of dollars into research, output and marketing to catch up with Tesla on their home turf — Manufacturers and assemblers of electric cars in China, the world’s largest vehicle market since 2009, are sharpening their pitches and raising their game as they pour billions of dollars into research, sales and marketing to catch up with the industry leader Tesla in their home turf.
- Head of Hong Kong’s West Kowloon Cultural District Authority Duncan Pescod steps down — The CEO of Hong Kong’s multibillion-dollar arts hub in West Kowloon, Duncan Pescod, will step down, ending his six-year stint with its management body, the Post has learned.
- Coronavirus: more countries host final trials of Chinese-made vaccines — More than a dozen countries are signed on to host final phase trials of Chinese-made experimental Covid-19 vaccines, potentially putting China at the fore of national plans to immunise populations.
- Hong Kong, Macau residents spared trips under change allowing home-return permit applications while in mainland China — Hong Kong and Macau residents will be able to renew their home-return permits while in mainland China, sparing many from lengthy trips to apply from their place of residence, according to the Communist Party mouthpiece People’s Daily.
- Alibaba’s Tmall to upend China’s real estate industry by using the internet for the entire sales process from viewing to paying — China’s property developers, stymied by a months-long ban on showroom exhibitions and the worst economic growth pace in decades, are girding themselves for a new sales strategy in the age of the coronavirus — online sales.
- Artificial intelligence expert Zhu Songchun to return to China from US — A leading Chinese artificial intelligence researcher in the US has returned to the mainland as Beijing strives to become a global leader in the field.
- China looks beyond GDP growth rate as Beijing outlines five-year plan and 2035 vision amid rivalry with US — China is set to play down the nation’s headline growth rate to highlight “growth quality” and “security” in its development plan for 2021-25 and beyond, as Beijing tries to strengthen domestic weak links in preparation for a protracted rivalry with the United States, according to China’s government advisers.
- Chinese banks cut saving rates on foreign currencies to record lows amid global coronavirus fallout — China’s major state banks are cutting rates on foreign currency deposits to record lows as global interest rates enter negative territory on the back of monetary easing to counter the economic impact from coronavirus pandemic.
- Mergers afoot for China’s biotechnology industry as suppliers become attractive targets for Big Pharma — China’s fragmented outsourced drug discovery services market will see further consolidation as companies seek to grab market share amid a biotechnology boom.
Bloomberg
- China’s Too-Big-to-Fail Real Estate Giant Pulls Back From Brink — China Evergrande Group took a major step toward avoiding a cash crunch that had threatened to roil the nation’s $50 trillion financial system and reverberate across global markets.
- China Is Said to Mull Ways to Contain Evergrande Risks — China’s top financial officials are evaluating the risks posed by China Evergrande Group, according to people familiar with the matter, amid heightened investor concern that the world’s most indebted developer faces a cash crunch.
- U.S.-Led Indo-Pacific Bloc to Convene in Show of Unity to China — Japan will host a meeting next week of the foreign ministers of four of the Indo-Pacific region’s biggest democracies, in the so-called Quad group seen as a counter to China’s influence in the region.
- China Looks to Normalize Monetary Policy as Economy Stabilizes — China’s central bank is seeking to normalize monetary policy as the “economy recovers steadily,” in another sign that the country’s policy makers are gradually pulling back from the stimulus measures enacted amid the Covid-19 pandemic.
- Commodity Shipping Overcomes Covid on China Infrastructure Spend — Ships that transport coal and iron ore to China are seeing a surge in earnings as the nation’s demand for commodities rises, despite concerns about a resurgence in cases of Covid-19 in many parts of the world.
- Majority of Hong Kong Democrats Plan to Remain in Office — A majority of Hong Kong’s pro-democracy lawmakers plan to remain in office after China’s decision to extend their terms without a planned election.
- China Makes Slow Progress on U.S. Trade Deal as Purchases Slide — China reduced the pace of its purchases of U.S. goods in August, making slow progress in meeting the goals of its trade deal with the world’s biggest economy.
- Evergrande’s Race for Cash Could Avert Nightmare Scenarios — Credit investors are once again contemplating nightmare scenarios for China Evergrande Group. But the world’s most indebted real estate company has a series of funding options that could help it avoid a market-destabilizing cash crunch.
- China’s Top Climate Scientists Plan Road Map to 2060 Goal — The most ambitious climate goal the world’s ever seen now has a road map for how to arrive at it.
- Taiwan Bank Lending to Chinese Firms Declines Amid Uncertainty — Taiwanese banks’ contributions to offshore loans for mainland Chinese firms fell to their lowest levels in at least 10 years as lenders turn increasingly anxious to limit their credit exposure to the economic fallout of the pandemic and rising political tensions.
- TikTok, WeChat Security Threat Has Yet to Be Proven, Judges Say — Two federal judges have ruled this month that the Trump administration failed to prove Chinese-owned apps used by millions of Americans pose enough of a national security threat to justify a U.S. ban.
- Biden Set to Carve Own Brand of Tough-on-China Policy If Elected — Democratic presidential candidate Joe Biden is preparing to face tough questions in Tuesday’s debate on how he would approach China if he wins the White House in November.
- South Africa, China to Revamp 10-Year Strategic Cooperation Plan — South Africa and China are working on a new 10-year strategic program for cooperation, as the current one nears its end.
Reuters
- Chinese FAW Group’s talks to acquire Iveco held this year now on hold: sources — Chinese state-owned car maker FAW Group held talks to acquire Italian truck group Iveco earlier this year but these have now been put on hold, two people close to the matter said.
- Major Chinese banks make rare cuts to foreign currency deposit rates — Chinese commercial banks have made rare cuts to their foreign currency deposit rates in recent weeks to reflect the easier monetary policies of overseas economies grappling with the fallout from the coronavirus pandemic.
- More Chinese households believe house prices will rise — The number of Chinese households who believe home prices will rise grew to 25.1%, according to a survey by the central bank published on Tuesday, from 22.8% in a survey published in July.
- China real estate takes back seat as hopes pinned on consumption to drive recovery — China is tapping the brakes on property prices and cutting the availability of mortgage loans to spur households to spend instead of repaying debt, as policymakers try to ignite private consumption and stimulate the pandemic-stricken economy.
- China needs a raft of reforms to make new economic strategy work: government advisers — China will need a plethora of reforms if it is to make a new economic strategy that relies mainly on domestic consumption work, advisers to the Chinese cabinet said on Tuesday.
- China’s ‘dual-circulation’ model not a short-term response to COVID-19, U.S. frictions: adviser — China’s new “dual circulation” economic strategy proposed by President Xi Jinping is not a short-term measure to cope with the COVID-19 pandemic or frictions with the United States, an adviser to cabinet said on Tuesday.
- Chinese delivery firm ZTO Express up 9% in Hong Kong debut — Shares of Chinese delivery firm ZTO Express (Cayman) Inc were trading nearly 9% above their offer price as the stock debuted in Hong Kong on Tuesday.
- Sanctions-hit Huawei ramps up investment in Chinese tech sector — Huawei Technologies has built up stakes in Chinese semiconductor companies and other tech businesses as the world’s largest telecoms equipment maker bolsters its supply chain in the face of pressure from the United States.
- U.S. must stand up to China if Biden wins, focus less on trade, Krugman says — Democratic candidate Joe Biden should maintain a tough stance against China if he wins the U.S. presidential election, but focus more on industrial policy than trade tariffs, according to Nobel-prize winning economist Paul Krugman.
Xinhua
- Volkswagen Group China, joint ventures plan to invest 15 billion euros in e-mobility — Carmaker Volkswagen Group China announced on Monday that it is planning to invest a total of roughly 15 billion euros (about 17.5 billion U.S. dollars) together with its joint ventures in e-mobility between 2020 and 2024.
- Japan’s top 3 automakers still hampered by pandemic, China recovery trims losses — Japan’s top three automakers suffered year-on-year declines in global output in August owing to the continued adverse effects of the coronavirus pandemic, although recovering production in China helped trim losses, figures released Tuesday from the makers showed.
Other Publications
- CNBC: 5 charts show how much the U.S. and Chinese economies depend on each other — The U.S. and China have been major trading partners for years, and they rely on each other’s supply chain for input into goods and services consumed within their borders.
- CNBC: Chinese airlines may not be profitable even as domestic travel rebounds, says analyst — China’s air passenger volume could jump by 10% year-over-year during a critical holiday season that begins later this week — but that won’t help Chinese airlines turn profitable until international travel resumes, said an analyst.
- Nikkei Asian Review: Japan and Australia wary of China as RCEP talks enter last stretch — Economic fallout from COVID-19 gives impetus to negotiations on trade megadeal.
- Foreign Policy: Were They Lost Students or Inept Spies for China? — Two roommates traveling in Florida found themselves caught in the teeth of espionage fears.
- Axios: China is attracting global investors’ attention, boosting the yuan — The dollar strengthened against most of the world’s currencies last week, as traders bought the greenback expecting an end to the reflation trade, but China’s currency bucked the overall trend (pun intended) and is on pace for its strongest month against the dollar since 2008.
