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.
The Wall Street Journal
- China Auto Sales Recovery Rolls Into Second Month — May auto sales in China were up 14.5% from a year earlier, driven by heavy discounts and promotions, as pent-up demand and promotions extended April’s rebound from a 21-month losing streak.
- Hong Kong’s Bid for Chinese Tech Listings Gets $6.6 Billion Endorsement — Hong Kong’s status as a venue for major Chinese technology companies got a boost, as shares in mobile-games group NetEase jumped on their debut in the city, while e-commerce company JD.com fixed a price for its own $3.9 billion offering.
The Financial Times
- Chinese tech group NetEase soars on $2.7bn Hong Kong debut — US-China tensions expected to start wave of big listings in city
- The mystery document holding up China’s sale of Anbang hotels — A legal fight over the ownership of US assets threatens to embarrass the Chinese Communist party
- China turns to steel to galvanise post-Covid economy — Rampant demand boosts price of key ingredient iron ore
- Taiwan tech companies’ exit from China fuels $25bn investment drive — Pandemic hasn’t stopped Quanta, Innolux and others from building factories at home
The New York Times
- China’s Street Vendor Push Ignites a Debate: How Rich is It? — The premier’s suggestion to empower a “stall economy” and focus on low-income workers leads some to ask whether the world’s No. 2 economy is as prosperous as it seems.
Caixin
- Scandal-Hit Kangde Xin Faces New Probe Over Bonds — Securities regulator starts new investigation into violations of information disclosure rules
- China’s Credit Growth in May Hits Two-Year High — Total social financing expands 12.5%, beating economists’ estimates, as central bank policies aim to ease capital pressures on virus-stricken businesses
- Bona Film’s Cinema Chief Dies After Falling Off Building — Huang Wei’s death comes as China’s film industry gets hammered due to closure of most cinemas during nation’s Covid-19 outbreak
- Solar-Panel Maker Trina More Than Doubles in Shanghai Debut — Energy storage leader raises $325 million to increase photovoltaic module output
- Trending in China: Chinese Students Barred From Using Common Computer Code As US Sanctions Bite — Students at Harbin Institute of Technology and Harbin Engineering University recently discovered that they can no longer access MATLAB, a widely used coding language for technical computing, with their college accounts (Source: TMT Post). In an email to affected students, MathWorks, the company that developed MATLAB, wrote that they are “prohibited from providing technical or customer support” to the two institutions “due to recent U.S. government regulations.”
- Court Freezes Luckin Founder’s Direct Stake in Limousine Business — Action against embattled Lu Zhengyao took place in April, according to Ucar Inc., shortly after Luckin’s disclosure of massive fraud
- EU Privacy Watchdog Sets Its Sights on TikTok — Newly appointed TikTok CEO Kevin Mayer could face heat over privacy issues in Europe after the EU set up a task force to look at the short form video app.
South China Morning Post
- China’s talent gap in rural e-commerce will hit 3.5 million by 2025, report projects — Chinese e-commerce platforms have been zooming in on expansion in the country’s rural areas and lower-tier cities amid the slowdown in the country’s major cities like Beijing and Shanghai, but they are facing a major barrier: a shortage of skilled talent, according to a report.
- JD.com set to raise US$3.88 billion from Hong Kong secondary listing at HK$226 a share amid rising US-China tensions, sources say — JD.com, one of China’s largest e-commerce sites, looks set to price its secondary listing in Hong Kong at HK$226 a share (US$29.16) after investors clamoured to participate in the offer.
- China’s global trade bazaar is going online to survive — The world’s largest trade fair is going online, and the salespeople of Ningbo MH Industry Co have been drafted in to a live-streaming boot camp.
- Over 30,000 Hong Kong companies enjoy six-month repayment holiday on HK$380 billion in loans under HKMA scheme to help them survive economic slump — Hong Kong’s banks have so far granted about 30,000 companies a six-month repayment holiday for a combined HK$380 billion (US$49.03 billion) in loans to help them cope with the dire economic slump, according to the city’s de facto central bank.
- China’s massive Hainan free-trade port plan raises questions over global trading rules compliance, experts say — While the world is dotted with free-trade and special economic zones, few are on the scale of Hainan, China’s most populous island, covering an area only slightly smaller than Taiwan, and home to more than 9 million people.
- Why 5G is considered an essential element in China’s autonomous driving road map — When Chinese autonomous driving start-up WeRide conducted a remote driving test using 4G wireless networks two years ago, the results were underwhelming: the top speed reached within safety parameters was only 5km per hour.
- Hong Kong’s office market is hollowing out as vacancy rate hits 10-year high. Who can save the landlords? — Hong Kong’s office landlords are facing the biggest crunch in a decade as rents slide and vacancy rate surges in the city’s notoriously pricey market.
Bloomberg
- Billionaire Zhou Eyes China Online Lending With Bank Stake — Billionaire Zhou Hongyi is making a grab for a share of China’s lucrative online lending market, which is dominated by Jack Ma’s Ant Financial and Tencent’s financial unit.
- Copper’s Bull Run Depends on China Demand, Supply Outlook — A further leg for the rally may depend on coronavirus-related supply disruptions in Latin America and Indonesia.
- China Power Giants Prepare for World’s Biggest Carbon Market — China’s state-owned power giants have been asked to prepare reports on historical emissions that officials will use to set up the world’s largest carbon market, according to people familiar with the request.
- Tesla Tops $1,000 for the First Time Amid Ramping China Demand — Tesla Inc. shares eclipsed $1,000 for the first time ever on Wednesday as ramping demand for the company’s Model 3 in China led Wedbush analysts to tout the “massive”’ market opportunity and its ongoing battery efforts.
- China’s Global Trade Bazaar Is Going Online to Survive — The world’s largest trade fair is going online, and the salespeople of Ningbo MH Industry Co. have been drafted in to livestreaming bootcamp.
- China Keeps Buying American Soybeans Despite Tougher Talk — China continues to buy American soybeans despite worsening rhetoric from President Donald Trump over Hong Kong.
- Hong Kong’s NWS Seeks Direct Access to Chinese Distressed Debt — NWS Holdings Ltd., a unit of one of Hong Kong’s biggest property developers New World Development Co., has applied for a license to manage distressed loans in China, according to people familiar with the matter.
- Crypto Exchange Binance to Launch Quarterly Bitcoin Futures — Binance Holdings Ltd., the top spot cryptocurrency exchange by trading volume, is adding to its suite of derivatives products with quarterly Bitcoin futures.
- Chinese Metals Giant Cuts Oil Team in Singapore After Few Months — Amer International Group Co., the Chinese metals giant founded by copper tycoon Wang Wenyin, laid off the two employees it hired this year to set up an oil trading desk in Singapore, according to people with knowledge of the matter.
- U.S. Lawmakers Propose $25 Billion to Help Chip Industry — U.S. lawmakers proposed an estimated $25 billion in funding and tax credits to strengthen domestic semiconductor production and counter rising technological competition from China. The effort would support companies building plants in the U.S. and buying chipmaking equipment, while sponsoring research and development into “cutting edge semiconductor” production, according to information provided by the office of Representative Michael McCaul, a Texas Republican.
- Zoom Reactivates Account of Chinese Pro-Democracy Activists — Zoom Video Communications Inc. said it reactivated the account of a U.S.-based group of Chinese pro-democracy activists, after earlier closing the account “to comply with local laws.”
- When 3,000 Pigs Fly: Aviation Tycoon Gets Boost in Pandemic — The coronavirus has wreaked havoc on commercial aviation, but Alexey Isaykin’s cargo carrier has been fully loaded.
- PBOC Is Trying to Stop Easy Money From Landing in the Wrong Hands — The PBOC knows the pitfalls of loose monetary policy all too well.
- Apple Analysts Grow More Optimistic on 5G Prospects and Recovery — Apple Inc. analysts have grown more positive on the company’s prospects, pointing to the upcoming launch of a 5G version of the iPhone, as well as continued growth in its services business.
- Trade Barriers Most Harmful in Times of Crisis, BOE Finds — The pandemic has acted as a shock to both demand and supply, making it deeper than the trade collapse of 2008-09, a review of research published on the central bank’s staff blog Thursday found. While global value chains have amplified spillovers between different countries, protectionist measures can disrupt the production of medical supplies.
- Hong Kong Share Sale Boom Yields Little in Fees for Bankers — Hong Kong’s share sale bonanza isn’t all it appears, at least for the arrangers.
- Alibaba, TikTok Owner Expand in Hong Kong as Banks Pull Back — Chinese tech firms are expanding their footprint in Hong Kong even as the pandemic prompts some banks to consider scaling back in the world’s most expensive office market.
- Hong Kong Defends Dollar Peg for 5th Day Amid Strong Inflows — Hong Kong’s de facto central bank intervened for the fifth consecutive day as the local currency traded at the strong end of its trading band.
Reuters
- China needs to do more on market access, Merkel tells Li — German Chancellor Angela Merkel stressed in a video conference with Chinese Premier Li Keqiang that Beijing needs to take action to open up its market and treat foreign companies fairly, her spokesman said on Thursday.
- China curbs coal imports after 5 months of record inflows: sources — China has stepped up customs checks for coal imports, leading to lengthy processing delays at ports, four sources familiar with the matter said, as the country seeks to bolster the domestic coal industry.
- China, U.S. should resume timely communication on trade: China adviser — China and the United States should resume timely communication on trade and other issues, an adviser to the Chinese cabinet said on Thursday, stressing that the world’s two biggest economies are too intertwined to be decoupled.
- Softbank-owned Arm’s China JV rejects allegations against CEO — The Chinese joint venture of SoftBank Group Corp-owned Arm Ltd rejected on Thursday allegations of misconduct made by its investors against its CEO and said it would take legal action, escalating an internal spat.
- Chinese smartphone brands in India turn to expensive imports as plants struggle: sources — China’s Xiaomi Corp and Oppo are importing some smartphone models into India as their local plants struggle to get back to production levels needed to meet demand that built up during lockdown, sources familiar with matter said.
- Cheek by jowl: China pork crisis spurs pig farms’ return to cities — China is building industrial pig farms near its urban areas, reversing years of policies to relocate the livestock over waste concerns, as the government prioritises food security over the environment after African swine fever decimated its herds.
- Tesla wins China approval to build Model 3 vehicles with LFP batteries: ministry — Tesla Inc has received government approval to build Model 3 vehicles in China equipped with lithium iron phosphate (LFP) batteries, a document on Ministry of Industry and Information Technology website showed.
- U.S. says plywood imports from Vietnam may circumvent duties on Chinese goods — The United States on Wednesday said it would examine whether hardwood plywood imports completed in Vietnam using Chinese components are circumventing U.S. duties on imports from China, a move that could see similar duties on Vietnamese imports.
Xinhua
- China central bank continues to inject liquidity via reverse repos — China’s central bank on Thursday continued to pump cash into the banking system via reverse repos to maintain liquidity.
- Beijing has over 21,000 5G base stations — Beijing has put 3,729 5G base stations into operation so far this year.
- Tianjin customs special supervision areas see 55.86 bln yuan in foreign trade in Jan.-April — Total imports and exports by customs special supervision areas in north China’s Tianjin Municipality reached 55.86 billion yuan (about 7.89 billion U.S. dollars) from January to April this year, local authorities said Wednesday.
- China-Mongolia border port sees surge in China-Europe freight trains — A total of 810 China-Europe freight trains passed through the border port of Erenhot in north China’s Inner Mongolia Autonomous Region between Jan. 1 and June 9 of this year, an increase of 23.7 percent year on year, according to the local railway operator.
- Economic Watch: China doubles down on oversight of listed companies — China has renewed its commitment to improving the quality of listed companies as the country, with the world’s second-largest equity market in value, continues to deepen market-oriented financial reforms.
Other Publications
- CNBC: U.S. pressure could accelerate growth for markets in Greater China — U.S. pressure on Chinese stocks looks set to accelerate the growth of capital markets in Hong Kong and mainland China, as investors remain intent on chasing opportunities in the world’s second-largest economy.
- CNN Business: Chinese shoppers are giving luxury brands some hope — (Hong Kong) Chinese shoppers are finally starting to snap up high-end handbags, shoes and jewelry again, giving the luxury goods industry hope that a recovery from the coronavirus pandemic is on the way. But leading brands still face a tough road ahead, and will likely have to rethink the way they do business to withstand a damaging, worldwide hit to sales this year, as well as a shift in shopping habits in many recession-scarred economies.
- The Verge: Apple pulls podcast apps in China after government pressure — Apple has removed Pocket Casts, the popular iOS and Android podcast client, from the App Store in China. The Cyberspace Administration of China has determined that it can be used to access content deemed illegal in the country, and has demanded that Apple remove the app as a result. It’s the second major podcast app to be removed from China’s App Store this month.
- PingWest: Exclusive: ByteDance Cuts Domestic Engineers’ Data Access to TikTok, Other Overseas Products — Multiple internal sources confirmed to PingWest that ByteDance has recently implemented a restriction on domestic employees’ access to code bases for overseas products.
- CSIS: Decoupling Between Washington and Western Industry — There are some signs that because of the trade war and other risks, some American companies are diversifying their supply chains; however, it appears that the vast majority of companies from the United States – and the broader West – are not heeding this call. Instead, there is a growing gap – or decoupling – between Trump administration aims and Western business behavior.
- Yicai Global: Trust Funds’ Risk Assets in China More Than Doubled in First Quarter to USD91 Billion — Chinese trust funds’ assets deemed to carry a degree of risk have more than doubled in the past year to CNY643.1 billion (USD91 billion) due to the economic turmoil caused by the novel coronavirus pandemic, according to new data.
- Forbes: China To Grow Stronger In Latin America In Aftermath Of Covid-19 Pandemic — Chinese economic influence in Latin America is likely to gain strength in the post-pandemic era, with the Asian country playing a key role in regional infrastructure projects and investing in sectors like power generation and mining, according to M&A advisors, industry sources and academics.
- Foreign Affairs: How to Make Trade Work for Workers — By Robert E. Lighthizer. The new coronavirus has challenged many long-held assumptions. In the coming months and years, the United States will need to reexamine conventional wisdom in business, medicine, technology, risk management, and many other fields. This should also be a moment for renewed discussions—and, hopefully, a stronger national consensus—about the future of U.S. trade policy.
