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.
Want this emailed directly to your inbox? Send us an email at contact@thewirechina.com to sign up.
The Wall Street Journal
- China Quarterly Car Sales Shift Out of Reverse for First Time in Two Years — China’s car market recorded its first quarter of year-over-year sales growth in two years as a broad economic recovery bolstered consumer confidence and discounts boosted demand, especially for electric vehicles.
- Tencent Powers Up With a Game-Streaming Super Platform — China’s two largest game-streaming companies will merge into a Twitch-like giant under the control of Tencent, giving the company another avenue to promote its wares.
- China Exports Supercharged by Medical Equipment and Work-From-Home Gear — China’s exports and imports both posted strong gains in September, as a recovery in global and domestic demand provided another boost to the world’s second-largest economy.
The Financial Times
- China must take action now on net zero pledge — There must be short-term emissions cuts along with commitments to be carbon neutral by 2060.
- Renminbi gains as China strengthens — Array of economic and political factors points to a continued rise in the Chinese currency.
- Chinese imports hit record dollar amount in September — Latest trade figures underline country’s economic recovery from coronavirus.
- Zambia resists Chinese pressure on arrears — Africa’s second-biggest copper producer has become a crucial test case for efforts at debt relief.
- Chinese groups go from fish to chips in new ‘Great Leap Forward’ — Beijing semiconductor push draws companies from sectors such as seafood and autoparts.
- China’s vaccine diplomacy has broader aims — Beijing is attempting to portray itself as a good global citizen.
- Samsung pulls BTS-branded products from online Chinese platforms — Comments made by a member of the K-pop boy band about Korean war spark fury on social media in China.
Caixin
- Chinese Policy Lender Agricultural Development Bank Picks New Chief — Qian Wenhui, vice chairman and president since 2018, will fill the chairman vacancy after Xie Xuezhi retires.
- China’s Exports Haven’t Grown This Fast in 18 Months — Imports surged 13.2% year-on-year in September, far beyond expectations.
- China’s GDP Growth Likely Recovered to 5.5% in Third Quarter, Caixin Survey Shows — Survey ahead of government data for September shows economy continued to bounce back from pandemic.
- SAIC Motor Devises Plan to Wrest Electric Vehicle Sales Crown From Tesla — China’s largest carmaker is developing a new assembly platform for vehicles that don‘t run on fossil fuels.
- New-Energy Vehicle Resurgence Turbocharges BYD Profits — China’s electric vehicle sales rebounded 67.7% year-on-year in September.
- Beijing Speeds Up Efforts to Shake Up State-Owned Enterprises — New three-year initiative will see companies from China’s massive state-run sector encouraged to sell 5% of themselves or more to strategic investors.
- China Eastern Gets $4.6 Billion Capital Injection From New Investors — Four state-backed companies will acquire almost a third of the airline giant, easing its debt burden amid the Covid-19 business slump.
- Can China Fix Its Troubled Start-up Investment Sector? — In the first half of 2020, China’s 1,069 venture capital (VC) and private equity (PE) funds raised 431.8 billion yuan ($64.3 billion). The figure is down 29.5% from a year ago and part of an extended slide which started in 2017, resulting in a 32.8% drop in the number of deals, according to data from Zero2IPO Research.
- Chinese Edtech Firm Huohua Siwei Bags $100m Series E2 Led by Tencent — Beijing-headquartered online K12 mathematics and science education platform Huohua Siwei has announced the completion of a $100 million Series E2 round led by Chinese tech giant Tencent Holdings’ investment arm Tencent Investment, the latter announced on WeChat on Monday.
South China Morning Post
- Shenzhen’s sovereign digital currency giveaway attracts 2 million applicants in China’s latest test of virtual yuan — Nearly 2 million people in Shenzhen, 15 per cent of the southern technology hub’s total population, signed up to take part in the latest trial for China’s sovereign digital currency.
- Brazil mining giant Vale agrees deal with China port to expand iron ore handling capacity — Brazilian iron ore mining giant Vale has struck a deal with Chinese state-owned port operator Ningbo Zhoushan Port to create additional capacity to handle iron ore shipments at Shulanghu Port as it moves to increase its market share in China.
- How a Thai railway could fast-track China’s interests in Southeast Asia — China and Thailand are set to sign a contract vital to the construction of a 253km (157-mile) high-speed rail link in the Southeast Asian nation that could eventually connect the two countries.
- China’s stocks sustain rally after vaulting past US$10 trillion mark, Hong Kong cancels trading on typhoon warning — China’s stocks edged up, extending the gain from the biggest rally in three months, as investors assessed the strength of the nation’s economic recovery and the prospect of more US stimulus packages. Hong Kong cancelled trading in stocks and derivatives due to a typhoon warning.
- Where have all the buyers gone, as Hong Kong is poised for 12,000 new homes to flood the market in the next three months? — Hong Kong developers, looking for a strong finish to the year on the back of new project launches, could see their hopes dashed, as analysts fear the market may be unable to fully absorb the new supply amid the possibility of a fourth wave of coronavirus outbreak that could pummel the city’s economy further.
- ‘Indo-Pacific Nato’: China’s Wang Yi slams US-led ‘Quad’ as underlying security risk at Malaysia meeting — Strategic cooperation between the United States, Japan, Australia and India in the form of the Quadrilateral Security Dialogue is part of Washington’s effort to build an “Indo-Pacific Nato”, China’s Foreign Minister Wang Yi said on Tuesday, warning that the initiative would severely undermine regional security.
- US election: China’s trade gap with United States was 43 per cent bigger in September than when Donald Trump took office — China’s trade surplus with the United States was 43.6 per cent larger last month than in January 2017 when Donald Trump was sworn into office, according to the final monthly trade figures released by Beijing before November’s US presidential election.
- Qingdao coronavirus outbreak ‘won’t derail’ China’s economic recovery — A coronavirus outbreak in the eastern city of Qingdao, home to one of the world’s busiest ports, “won’t derail” China’s economic recovery but does represent a stern reminder of the dangers that still lie ahead.
- China leads way as IMF says global economic recession ‘less severe’ than previously thought — The world economy will experience a “less severe though still deep” recession this year than previously expected, as prospects have worsened significantly in some developing economies while large advanced economies have reported stronger-than-expected growth out-turns, the International Monetary Fund (IMF) said on Tuesday.
- Chinese drug maker offers experimental Covid-19 vaccines to students heading overseas — A Chinese drug maker is offering its experimental Covid-19 shots to students heading overseas to study, even though the vaccines are still in clinical trials, according to mainland media reports.
- Chinese President Xi Jinping urges push towards hi-tech independence — Chinese President Xi Jinping has urged the nation’s technology industry to become more self-reliant as the sector faces “unprecedented” international trade and security headwinds.
- China’s imports post biggest surge since before coronavirus pandemic, as trade recovery gathers steam — China’s trade economy continued to grow strongly in September, with its customs bureau announcing the strongest import growth since December on Tuesday, sending monthly inbound shipments to an all-time high of US$203 billion.
- Greater Bay Area: bigger homes, wide open spaces, is this Hong Kong’s ticket to beat housing shortage? — As Hong Kong tries to reboot its economy amid the coronavirus pandemic, can the Greater Bay Area provide opportunities that are ripe for the taking? In the second of a three-part series ahead of the city leader’s policy address, Lilian Cheng and Gigi Choy look at whether the region is the answer to Hong Kong’s housing woes. Read part 1 here.
Bloomberg
- Oil Rises Above $40 After Recovery in Chinese Crude Imports — Oil edged higher as data showed Chinese crude imports rose last month, a positive sign for global demand.
- China Looking at Giving Students Vaccines Still Being Tested — One of China’s leading vaccine developers is working on a plan to inoculate students going overseas with Covid-19 shots that are yet to get regulatory approval, according to people familiar with the matter, as the country pushes scientific boundaries in the race for a viable immunization.
- China Aerospace Firm AVIC Raises US Alarm Over Ties to GE, Airbus — AVIC builds more than war machines. It runs a civilian business that makes airliners, private jets and parts — some in tandem with American companies.
- Evergrande Seeks $1.1 Billion From Share Sale to Repay Debt — China Evergrande Group is seeking as much as HK$8.43 billion ($1.09 billion) in a share placement, accelerating efforts to shore up its balance sheet after a liquidity scare that rattled investors and Chinese regulators last month.
- China Dollar Bond Orders Hit Six-Month Low Amid Heavy Supply — Demand for Chinese dollar bonds sank to the lowest level since a pandemic-induced selloff roiled global credit markets in March, a sign of investor fatigue after a record order splurge.
- Audi to Build Electric Cars Geared to Chinese Buyers From 2024 — Volkswagen AG’s Audi is expanding its partnership with Chinese manufacturer FAW as the German premium brand seeks to build more battery-powered cars geared to customers in its largest market.
- China Bolsters Global Trade Dominance by Surviving Virus, Trump — China is cementing its status as the world’s dominant trading nation, confounding warnings that a once in a century pandemic combined with simmering tensions with the U.S. would derail that status.
- China Tech Stocks Seen a Better Bet Than U.S. Peers Under Fire — Chinese internet stocks will keep outperforming their U.S. counterparts in the months ahead as regulatory challenges to America’s technology giants mount in Washington and Brussels, according to some investors.
- South China Sea Remains Volatile, Philippine Military Chief Says — The situation in the South China Sea remains volatile and uncertain amid “aggressive actions” by China and as the U.S. patrols the area to ensure freedom of navigation, the Philippines’ military chief said.
- India Opens New Bridges Near China Border, Heightening Tensions — India opened dozens of new bridges — many of them providing all-weather access along its disputed border with China — in a move that could provoke a fresh round of tensions.
- Australia Seeks Clarity From China Over Import Ban for Coal — The Australian government is seeking clarification from Beijing on reports that China has suspended purchases of Australian coal amid heightened diplomatic tensions between the two countries.
- Car Sales in China Shine as Rest of World Reels From Virus — Demand for cars in China is going from strength to strength, making the automobile market in Asia’s biggest economy a lone bright spot as the coronavirus pandemic puts a damper on sales in Europe and the U.S.
- Europe Can Win Electric Car Sales Race If It Learns From China — Sales of electric vehicles in Europe are growing at such a pace that the continent looks increasingly likely to outpace China in the near future.
- HSBC Is Left Off First China Dollar Bond Deal Since 2017 — HSBC Holdings Plc was left off the list of banks arranging China’s sovereign dollar debt sale for the first time since the nation returned with big annual deals in 2017.
- China’s Stock Market Tops $10 Trillion First Time Since 2015 — Chinese domestic equities are worth more than $10 trillion for the first time since 2015, when a record crash erased half the market’s value in months and saddled millions of investors with losses.
- Guolian, Sinolink End Plan to Create $13 Billion Broker — Guolian Securities Co.’s effort to acquire bigger rival Sinolink Securities Co. has ended after the firms couldn’t agree on terms to create a $13 billion Chinese broker in the consolidating industry.
- China’s Exports Gain, Imports Surge in September Amid Reopenings — China’s exports rose for the fourth straight month in September while imports surged, pointing to further recovery in the month for global trade and a robust domestic rebound.
- Xi Urges Higher Quality Growth in Swing Through China’s South — President Xi Jinping urged a greater focus on quality to overcome increased global uncertainty, as he began a sweep through China’s southern manufacturing powerhouse of Guangdong.
- China Set to Price $6 Billion Bond Deal as Soon as Wednesday — China’s government is expected to price a potential $6 billion bond sale as early as Wednesday, ahead of possible volatility from U.S. elections next month.
- China Is Unlikely to Carry Out Its Threat to Ban Australian Coal — When it comes to critical commodities, Beijing rarely follows through on its threats.
- Hong Kong Stocks See Hope in Xi’s Greater Bay Area Plan — Stocks are probably correct to anticipate economic positives from the president’s plans for the Greater Bay Area.
- As Trump Declines in the Polls, Currency Traders Bet on the Yuan — The president’s diminishing poll numbers have been a good thing for China’s yuan.
- Dalio Says ‘Time Is on China’s Side’ in Power Struggle With U.S. — Bridgewater Associates founder Ray Dalio said China has an advantage over the U.S. on a range of issues.
- China’s Quiet Experiment Let Millions View Long-Banned Websites — In a quiet experiment of just two weeks, China provided millions of people access to long-forbidden foreign websites like YouTube and Instagram. The trial appears to signal the Communist government is moving toward giving the country’s citizens greater access to the global internet — while still attempting to control who sees what.
- Hedge Funds, China Should Give More Debt Relief, World Bank Says — The Group of 20 nations should extend debt relief to the poorest nations through the end of next year, and hedge funds and China should participate more in the efforts, World Bank President David Malpass said.
- India Court Seeks Chinese Banks’ View on Anil Ambani’s Plea — An Indian court has reached out to a group of Chinese banks that are trying to recover money from Anil Ambani, in the latest twist in a personal bankruptcy case against the former billionaire.
Reuters
- Tesla cuts prices of Model S in United States, China — Tesla Inc said on Tuesday it cut the price of its Model S “Long Range” sedan by 4% in the United States, days after the electric-car maker reported record quarterly deliveries.
- Timeline: China and Australia commodities trade tensions — Australia’s ties with top trade partner China soured in 2018 when it became the first country to publicly ban China’s Huawei [HWT.UL] from its 5G network, and worsened after Canberra called for an enquiry into the origins of the coronavirus.
- EU imposes tariffs on aluminium products from China — The European Union will impose duties of up to 48% on imports of aluminium extrusions from China midway through an investigation into whether Chinese producers are selling at unfairly low prices.
- China’s central bank drafts rules for fund to help manage risks of third-party payment firms — China’s central bank issued draft rules on Tuesday for setting up a fund of up to 1 billion yuan ($148.47 million) to help manage the risks of third-party payment companies, such as Ant Group’s Alipay and Tencent Holdings Ltd’s WeChat Pay.
- Audi to launch new electric vehicle venture with China’s FAW — German premium automaker Audi AG said on Tuesday it had signed a memorandum of understanding with China’s state-owned FAW Group to launch a venture to make premium electric vehicles (EVs).
- US should follow EU and China in setting carbon-neutral target: UN’s WMO — The United States should join the European Union and China in setting ambitious goals to become carbon neutral, the head of the U.N.’s World Meteorological Organization (WMO) said on Tuesday.
- China’s imports, exports surge as global economy reopens — China’s imports grew at their fastest pace this year in September, while exports extended strong gains as more trading partners lifted coronavirus restrictions in a further boost to the world’s second-biggest economy.
- Australian politician sought to broker Chinese deals in Pacific islands, inquiry hears — An Australian politician who was in a secret relationship with the premier of the country’s biggest state economy sought to broker deals and set up government meetings for Chinese businessmen wanting to establish a casino and businesses in the Pacific islands, a corruption inquiry was told on Tuesday.
- China says will make ‘necessary’ response to U.S. arms sales to Taiwan — China’s foreign ministry said on Tuesday that it would make a “legitimate and necessary” response to further U.S. arms sales to Chinese-claimed Taiwan, after source said the White House was moving forward with three sales of advanced weaponry to Taiwan.
- China’s iron ore, copper imports rise in September from August — China’s imports of major commodities including iron ore, copper, oil and soybeans rose in September from a month earlier. Coal imports eased.
- China September trade surplus with U.S. narrows to $30.75 billion — China’s trade surplus with the United States stood at $30.75 billion in September, Reuters calculations based on Chinese customs data showed on Tuesday, down from a $34.24 billion surplus a month earlier.
- China’s top climate think tanks push for more cuts to coal use and emissions: report — China’s leading climate think tanks are pushing for cuts to carbon emissions and coal use over the next five years, according to speeches and a major report China’s top experts on climate change and emissions issued on Monday.
- Leading banks still bullish on yuan despite policymakers’ nudge — China’s move to cool a rising yuan stands little chance of stopping further gains, international banks say, as the strength of the world’s second-biggest economy and a near-record yield advantage drive big and steady inflows.
Xinhua
- China’s robust post-COVID economic growth contributes to global recovery — As the Golden Week holiday further perked up China’s economy, observers expect China to make greater contributions to global economic recovery and development.
- China foreign trade up 7.5 pct in Q3 — China’s foreign trade increased 7.5 percent year on year in the third quarter of this year, official data showed Tuesday.
- Shale gas production soars in SW China base — The shale gas base of China National Petroleum Corporation (CNPC) in southwest China has consolidated its status as the country’s biggest shale gas producer, with daily production exceeding 20 million cubic meters in part of a demonstration zone.
- China’s auto sales continue to see double-digit growth — China’s auto sales last month rose 12.8 percent year on year to 2.57 million units as the market warmed alongside government policies to spur consumption, data from an industry association showed on Tuesday.
- Grain trade conference to be held in China’s Fujian — A conference on the grain trade will be held later this month in Fuzhou, capital of east China’s Fujian Province, authorities said on Tuesday.
- Tokyo stocks close higher after solid China trade data lifts mood — Tokyo stocks closed higher Tuesday as despite a marginally higher start on the back of Wall Street’s lead, only to slip in later trade due to the yen’s strength, the market was ultimately bolstered by Chinese trade data for September.
- Chinese shares close higher Tuesday — Chinese stocks closed higher on Tuesday, with the benchmark Shanghai Composite Index up 0.04 percent, at 3,359.75 points.
Other Publications
- Washington Post: China hawks encounter powerful opponent: U.S. companies — Industry groups are fighting some restrictions on tech trade with China, saying the costs are too high.
- Nikkei Asian Review: Pakistan politicians fear losing strategic islands to China — Pakistan’s federal government has triggered a political uproar after taking direct control of two islands previously under the regional government of Sindh province.
- Foreign Affairs: China Thinks America Is Losing — Washington Must Show Beijing It’s Wrong.
- Defense News: US advances three arms sales packages to Taiwan — The administration sent Congress an informal notification that it plans to sell Taiwan the systems amid rising tensions between China and Taiwan, but also the United States.
- The Atlantic: How Milk Tea Became an Anti-China Symbol — The Milk Tea Alliance is emblematic of the frustration many young people feel toward Beijing’s grating assertiveness in the region.
- The Diplomat: Uzbekistan Teams Up With China on Poverty Reduction — Tashkent’s quick move to partner with China on poverty reduction indicates that Beijing is now the model for such efforts.
- Axios: Vaccine initiative now covers almost entire world, but not U.S. or Russia — China’s entry into the COVAX initiative means the list of non-participants in the global effort to develop and distribute coronavirus vaccines has dwindled down to Belarus, Kazakhstan, Malaysia, Russia, the U.S. and five small island countries or micro-states.
