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
- Xi, Biden Prepare to Talk as U.S.-China Distrust Mounts — China presents its stance as neutral; the U.S. is likely to warn Beijing against any support of Russia.
- On China’s Internet, Rare Flash of Anger at Beijing’s Position on Ukraine — An editorial by China’s ambassador to Washington, later posted on Chinese social media, became the unlikely venue for a torrent of Chinese public anger against Beijing’s perceived support for Russia’s invasion of Ukraine.
- Chinese President Vows to Control Covid Outbreak With Smallest Cost — Xi Jinping says leaders must ‘minimize the impact of the Covid situation on economic and social development.’
- Overwhelmed by Omicron, Hong Kong Runs Out of Space for Its Dead — Crematoria work around the clock and coffins run short as death toll soars.
- China’s Housing Market Needs More Than Talk From Beijing — Forceful, if vague, language from Beijing has boosted developer shares and the broader stock market. But turning around the real economy will be tougher.
- Chinese Fund Managers Turn Poetic to Urge Patience After Stock Maelstrom — ‘The future belongs to the optimists,’ one domestic asset manager says.
- Hong Kong’s First SPAC Makes Its Debut — Aquila raised about $128 million; nine more SPACs, backed mostly by Chinese investors and entrepreneurs, have filed to list in the city.
The Financial Times
- Biden to warn Xi of US retaliation if China actively supports Russia — Leaders due to speak on Friday as rockets hit outskirts of Lviv in western Ukraine.
- Taiwan military drills take on greater urgency after invasion of Ukraine — Exercises on Dongyin island highlight anxiety about Beijing’s intentions and military preparedness.
- Ukraine gives Europe a key swing vote in the US-China rivalry — Beijing as mediator is a fantasy — European leaders must make clear the cost of China’s support for Moscow.
- China oil prices: stress signals for local refiners will not end soon — Accelerating inflation means Beijing has little leeway in allowing further fuel price hikes.
- Is China uninvestable, redux — Xi has backed off, for now.
- Hong Kong rich race to get their yachts out of the city — Residents are fleeing territory’s strict Covid measures but want to take their cars and boats with them.
The New York Times
- Biden Will Punish China if It Gives Military Aid to Russia, Blinken Says — President Biden plans to talk on Friday with Xi Jinping, who has a close partnership with Vladimir V. Putin and supports him in the Ukraine war.
- China’s Information Dark Age Could Be Russia’s Future — Russia and China have the tendency to learn the worst from each other: tyrants, famines, purges and, now, internet censorship.
- Zhou Guanyu Is About to Make Formula 1 History — After years in the lower racing series, Zhou will be China’s first driver on the grid at a Grand Prix, joining Valtteri Bottas on the Alfa Romeo team.
- The U.S. Is the Only Sanctions Superpower. It Must Use That Power Wisely. — If it overreaches, it might provoke a military response or create the incentive for its adversaries to create and foster their own alternative networks. By Henry J. Farrell and Abraham L. Newman
- China’s Xi Jinping Can’t Invent His Own Reality — Covid is becoming China’s equivalent of Ukraine. By Paul Krugman
Caixin
- Exclusive: Hong Kong Set to Ditch State Street as Manager of Tracker ETF — Hang Seng Bank’s investment management arm will take over running the fund, sources say.
- In Depth: China’s Tightening of Online Insurance Sales Starts to Bite — Rules introduced to stop misconduct and sales of risky products have forced some insurers to suspend or stop offering some personal insurance products on the internet.
- Analysis: Local Authorities’ Blind Spots Highlight China’s Delicate Covid Balancing Act — Blind spots in China’s zero-tolerance approach to Covid-19 highlight the urgent need for local governments to improve efficiency while cutting through red tape and minimizing the impact on people’s daily lives.
South China Morning Post
- China’s yuan strength becoming ‘increasingly uncomfortable’ for Beijing amid economic slowdown — China made its biggest push to weaken the yuan through its currency fixings this week as coronavirus-related curbs and rising commodity prices threatened to slow the economy.
- Ukraine invasion: China braces for effects of global fertiliser shortage on food security — A protracted war between Russia and Ukraine could damage the global fertiliser supply chain, putting pressure on grain prices and production in China during a key planting season.
- China ramps up US corn purchases as Ukraine war puts supplies at risk — China is ramping up corn purchases from the United States as Russia’s invasion of Ukraine snarls grain exports and puts spring plantings in doubt, pushing prices higher in Chicago.
Nikkei Asia
- China delays property tax trials, stressing stability over reform — With economy under strain, Xi Jinping plays it safe ahead of fall Communist Party congress.
- China’s Sany, Gotion turn to Swiss exchange after U.S. clampdown — Lepu Medical also plans to issue global depository receipts in double listing.
- Can the threat of sanctions firepower prevent a Taiwan crisis? — China has far more foreign-exchange reserves than Russia that West could freeze.
Bloomberg
- China Weighs Tencent Payments Overhaul, New License Requirement — Chinese authorities are considering requiring Tencent Holdings Ltd. to include WeChat Pay in a newly created financial holding company, part of an overhaul that may necessitate a new license for the ubiquitous mobile payments service, according to people familiar with the matter.
- China’s Low Elderly Vaccination Rate Shows Key Vulnerability — Only half of Chinese aged 80 and older are fully vaccinated against Covid-19, highlighting a key vulnerability as the country grapples with its worst outbreak since Wuhan and the prospect of reopening to the world.
- China’s Local Land Sales Plunge Nearly 30% in First Two Months — China’s local authorities saw their income from land sales contract almost 30% in the first two months of the year, showing how the continued housing slump is directly hurting government finances.
- Global Exodus From Chinese Markets Prompts Xi to Change Tack — It took one of the biggest stock-market routs in Chinese history, but President Xi Jinping may finally be heeding the concerns of international investors.
- Moving to U.K. From Hong Kong, Migrants Still Coming to Terms With New Lives — One year after Britain opened its door to Hong Kongers, those who have arrived are still coming to terms with the contours of their new lives.
Reuters
- Goldman says China high-yield developers’ default rate understates stresses — Chinese high-yield property issuers have by one measure defaulted on nearly a quarter of their outstanding bonds this year, Goldman Sachs analysts estimated.
- China to address market concerns about offshore listing rules — There is also no clarity on whether there will be a single point of regulatory contact for mainland companies wanting to list overseas or in Hong Kong.
Other Publications
- Politico Europe: EU has ‘very reliable evidence’ China is considering military support for Russia — EU official threatens trade measures against Beijing if the arms’ deliveries go ahead.
- The Economist: Is this the beginning of the end of China’s techlash? — The Communist Party softens its fiery rhetoric towards the tech industry.
