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.
Paid subscribers automatically have this list emailed directly to their inboxes every day by 10 a.m. EST. Subscribe here.
The Wall Street Journal
- Germany Retains China Ties Despite Rising Geopolitical Tensions — German Chancellor Olaf Scholz will be the first Western leader to visit Beijing this week as leader Xi Jinping leans toward Russia.
- Investors Lose Taste for Pricey Chinese Liquor as Xi Renews ‘Common Prosperity’ Call — Popular stocks of baijiu makers plummeted in October.
- Chinese iPhone City Locks Down to Curb Foxconn Covid Crisis — Local governor urges tighter restrictions after weekslong struggle to contain the virus leads to mounting worker desertions.
- Hong Kong Touts Its Reopening to Wall Street Despite Covid Controversies, Typhoon — City’s financial summit drew executives from Goldman Sachs, Morgan Stanley—but featured little debate.
- Hong Kong Editors Go on Trial for Sedition Over Interviews With Activists — Two top editors of closed online outlet Stand News face a 20-day trial after being arrested by national security police last year.
The Financial Times
- Global bankers ‘very pro-China’, says UBS chair — Colm Kelleher makes remarks at Hong Kong financial forum designed to woo international investors.
- Chinese stocks boosted by planned rollout of CanSino’s inhalable Covid vaccine — Market rallies on hopes of looser coronavirus lockdown measures and travel restrictions.
- Shein copycats chase its explosive growth — Rivals seek to ride coattails of Chinese fast-fashion giant set to become world’s biggest specialist clothes seller.
- Hong Kong struggles to persuade CEOs it is open for business — Events intended to attract finance leaders overshadowed by remaining Covid rules.
- Republicans slam Pentagon plan to pull permanent F-15 force from Okinawa — Lawmakers argue that withdrawal of fighter jets will send wrong signal to China about US deterrence in the Indo-Pacific.
The New York Times
- After Covid Lockdown, Fear and Unrest Sweep iPhone Factory in China — Hundreds of workers are said to have fled, afraid of being forced into quarantine with inadequate food and supplies.
- Opinion: How China Lost America — When future historians look back on 2022, they will have a lot to choose from when they ask the question: What was the most important thing that happened that year? Was it Brexit, Chexit, Ruxit or Trumpit? By Thomas Friedman
Caixin
- PBOC Chief Hopes for ‘Soft Landing’ for China’s Housing Market — Central bank Governor Yi Gang’s comments are seen as response to worries about a prolonged real estate crisis that has plagued the world’s second-largest economy.
- In Depth: Will Fosun’s $2.2 Billion Steel Unit Sale Save the Conglomerate? — Offloading Nangang Iron & Steel may be the beginning of the end, or a fresh start for the debt-laden giant.
- Naspers Denies Report It’s Selling Its Tencent Stake to Citic — Largest shareholder of Chinese social media giant with 28% maintains its plan for gradual sell-down after making billions over two decades.
South China Morning Post
- John Lee urges global banks to ‘get in front’ of the queue for business as Hong Kong ‘puts the worst’ behind it — The conference at the Four Seasons Hotel is packed with panels and fireside chats with global bankers and fund managers.
- Shenzhen backed to ‘pioneer’ China’s national tax reform, sets off property alarm bells in Hong Kong — China’s technology hub of Shenzhen has been backed to undertake ‘major national tax reform and research’, but the news fuelled market speculation in neighbouring Hong Kong.
- China’s second, third-tier cities lead the way in economic recovery as zero-Covid holds up Beijing, Shanghai — Beijing’s economy grew by 0.8 per cent in the first three quarters this year compared to the same period last year, while Shanghai’s recorded a 1.4 per cent decline, as China’s first-tier cities struggled under the stringent zero-Covid policy.
Nikkei Asia
- China bans paper land deals that drive up hidden local debt — Localities could see fiscal freeze worsen without sales to investment vehicles.
- Opinion: China will not overpower U.S. if it keeps losing efficiency — Washington is exploiting key vulnerabilities with trade and tech decoupling. By Minxin Pei
Bloomberg
- Hong Kong’s Wall Street Summit Avoids Talk on China Risks — As Wall Street’s biggest bosses gathered on a panel at Hong Kong’s big financial comeback summit, one major topic was avoided: China’s growing risks.
- How a Mysterious China Screenshot Spurred a $450 Billion Rally — Nobody is quite sure who wrote it, when it was written or if it’s even true. But a screenshot of four paragraphs detailing a China reopening plan was enough for traders to scoop up stocks for two days running.
- China Solar Giant Sees Further Turmoil in US Market Next Year — The world’s largest solar company warned that stricter US import requirements for panel shipments will continue to create disruptions to the American market through next year.
- Opinion: Hong Kong Bankers Fear Their Careers Are Coming to an End — Finance isn’t what it used to be in Xi Jinping’s new China. By Shuli Ren
Reuters
- Worries over Germany’s China dependency overshadow Scholz trip — His one-day visit on Nov. 4, will make Scholz the first G7 leader to visit China since the start of the COVID-19 pandemic and the first to meet Chinese President Xi Jinping since he consolidated his grip on power at a Communist Party Congress.
- U.S. says China resisting nuclear talks after Xi vow to boost deterrent — Despite the lesson of the Cuban missile crisis 60 years ago, China has shown no interest in discussing steps to reduce the risk posed by nuclear weapons, senior U.S. officials said on Tuesday, after Chinese leader Xi Jinping signaled last month that Beijing would strengthen its strategic deterrent.
- Hong Kong, struggling to revive hub status, sells ‘China advantage’ to global banks — Some of the world’s biggest banking bosses, including Goldman Sachs’ David Solomon and Morgan Stanley’s James Gorman, were in Hong Kong for the first time in almost three years for the summit.
- Auditor exodus at embattled China property firms triggers governance concerns — Auditors of at least 14 Hong Kong-listed Chinese property firms have exited this year, securities filings showed, raising governance concerns about the debt-ridden developers several of whom are yet to publish long-pending financial results.
Other Publications
- The Economist: Xi Jinping promises financial stability. He is not delivering it — China’s property crack-up causes problems elsewhere.
- Rest of World: Vietnam is luring tech giants out of China with flashy infrastructure projects — Even as Apple and others move suppliers in, the boom has its skeptics.
- Axios: FCC commissioner says government should ban TikTok — The Council on Foreign Investment in the U.S. (CFIUS) should take action to ban TikTok, Brendan Carr, one of five commissioners at the Federal Communications Commission, told Axios in an interview.
