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
- Ant IPO Sets Off $3 Trillion Scramble Among Small Investors — More than 5 million individuals in mainland China have placed orders for shares; investors also piling on in Hong Kong.
- U.S. Blacklists Iranian, Chinese Companies Accused of Helping Iran Evade Energy Sanctions — The country files forfeiture actions against Iranian missiles seized recently by U.S. Navy.
The Financial Times
- China turns to domestic demand to power economy — Xi Jinping’s administration will focus on ‘self-sufficiency’ in a range of technological sectors dominated by the US.
The New York Times
- China’s Leaders Vow Tech ‘Self-Reliance,’ Military Power and Economic Recovery — The Communist Party’s Central Committee endorsed an ambitious policy program that looks far beyond the coronavirus pandemic.
- As the West Stumbles, ‘Helmsman’ Xi Pushes an Ambitious Plan for China — China’s leader emerged from a key Communist Party meeting newly emboldened, outlining a road map for the country for years to come. Some have warned of overreach.
Caixin
- China’s Next Five-Year Plan Downplays Rapid GDP Growth, Emphasizes Tech Independence — An outline of the plan highlights the role that the ‘dual circulation’ strategy will play in policymaking through 2025.
- Coal Transport Profit Sank by a Quarter This Year, Rail Freight Group Says — Operator of China’s busiest coal transport line suffers as economy shifts to cleaner energy.
- Troubled Private Tutor Yousheng Loses Lifeline Amid Escalating Crisis — Jewelry maker Jinzhou Cihang bails out of $74.4 million white-knight takeover as Beijing-based education company faces massive demands for refunds.
- Taiwan’s UMC Pleads Guilty in U.S. Trade-Secret Theft Case — Maker of semiconductor chips agrees to cooperate in further probe of China’s Fujian Jinhua and pay $60 million fine in two-year-old Justice Department prosecution.
- Haier Smart Home Sees Profit Drop as Revenue Grows — Despite revenue growth, Haier Smart Home, a subsidiary of Chinese home appliance giant Haier Group, reported a drop in net profit in the first three quarters of 2020.
- ByteDance Doubles Down On Education — TikTok owner ByteDance is upping the ante by increasing its presence in China’s highly competitive online educational market. The tech giant is creating a standalone brand that will take over all of its education products, as demand for e-learning has soared amid the Covid-19 pandemic.
- Chinese Biotech Firm Gracell Nets $100m From Wellington, OrbiMed, Others — Chinese clinical-stage biopharmaceutical firm Gracell Biotechnologies Inc. has completed a $100 million Series C round co-led by the US investment company Wellington Management, New York-based OrbiMed Healthcare Fund Management, and VC firm 5Y Capital (formerly Morningside Venture Capital), the investee company said on Wednesday.
South China Morning Post
- Ant Group: Investors pour US$3 trillion into world’s largest IPO with frenzied bids in Hong Kong and Shanghai retail offerings — The largest initial public offering (IPO) in global financial history broke records in Shanghai and Hong Kong, soaking up more than US$3 trillion from retail investors, setting off frenzied bids for the shares of Ant Group.
- China GDP targets may resume for 2021-25, state planner says — China may resume setting annual economic growth targets over the next five years after abandoning the practise in 2020, the country’s top economic planning agency said on Friday.
- Hong Kong Disneyland: park gets sixth managing director since opening, as former chief financial officer returns from Hasbro — The revolving door at the top of Hong Kong Disneyland’s management ranks has turned yet again, with the loss-making theme park announcing a new managing director on Friday.
- China GDP: what is it and why is it important? — China’s gross domestic product (GDP) is the value of all goods and services produced within the country over a certain time period. Only final goods and services sold for money are included.
- China regional GDP data shows growing economic divide, exacerbated by coronavirus — Holding cups of hot milk tea or carrying shopping bags filled with sports shoes or smartphones, tens of thousands of residents and tourists packed Shanghai’s Nanjing Road pedestrian shopping street last weekend, most not wearing masks as they swarmed onto the Bund promenade to enjoy the night view of the city.
- China-Australia relations: Canberra lashes out at China’s barley duties at WTO — Australia lashed out at China’s anti-dumping duties on its barley exports in a statement made at the World Trade Organization (WTO) this week, Geneva sources said.
- China-US tension: military officials meet to discuss how to avoid all-out conflict amid rising temperature — Chinese and American defence officials have agreed to hasten talks during a potential crisis this week in a move described by analysts as crucial to preventing all-out conflict between the world’s largest militaries.
- China embraces rising capital inflows as rivalry with US intensifies — Beijing is relishing its current role as a darling for global investors, despite rising tensions with Washington, as large inflows of portfolio and fixed-asset investment funds make their way into China.
- Huawei marks first drop in China shipments since 2014 amid US sanctions, sees market share shrink — Huawei Technologies saw its shipments in China decline in the third quarter this year for the first time since 2014 after being hit by the latest round of US sanctions in August, according to research firm Canalys.
- Hong Kong’s economy shrinks by 3.4 per cent in third quarter as latest wave of coronavirus pandemic batters drivers of growth — Hong Kong’s economy shrank by 3.4 per cent in the third quarter as compared to a year ago as the coronavirus pandemic continued its stranglehold on key drivers of growth such as tourism and consumption.
- Hong Kong takes ‘Made in China’ label row with US to World Trade Organization — Hong Kong formally launched legal procedures at the World Trade Organization’s dispute-settlement unit on Friday against the United States requirement for city-produced exports to be labelled “Made in China”.
Bloomberg
- Here’s What Economists Are Saying About China’s New 5-Year Plan — Economists zeroed in on China’s focus on quality economic growth and its technology ambitions in the 14th five-year plan released Thursday.
- In China, Big Tech Isn’t the Enemy. It’s the Strategy — Beijing’s five-year plan is determined to ensure the success of domestic technology giants. Foreign firms are on notice.
- China’s Mega Banks Pare Profit Drops as Economy Recovers — China’s largest state-owned banks trimmed their profit declines in the third quarter after the nation’s economy bounced back and the government eased pressure on its $45 trillion banking system.
- West African Oil Fortunes Diverge Along With Europe and China — For a glimpse of the growing disparity in the oil market’s recovery, look at crude sales from West Africa.
- Record Planeloads of Live Hogs Flown Into China to Boost Herds — China is flying in record numbers of pigs to improve genetics and boost productivity while rapidly rebuilding the nation’s hog population after it was decimated by African swine fever.
- China Investors See U.S.-China Feud Continuing Past Election — As U.S. voters prepare for next week’s presidential election, Chinese investors have already decided what they think the outcome will be: the continued decoupling of the world’s two largest economies.
- Apple iPhone Delay Hurt China Sales, Leaving a Lot Riding on 5G — Apple Inc. on Thursday reported its lowest revenue in China since 2014, causing concern the company is losing momentum to homegrown rivals in one of its most critical markets.
- China Focuses on Building Its Own Core Tech as U.S. Curbs Supply — China said it needs to build its own core technology because it can’t rely on buying it from elsewhere, as the Communist Party laid out plans for greater economic self-sufficiency.
- Apple Shares Decline After iPhone Sales Miss, China Drops 29% — Apple Inc. shares fell 4.5% in early trading on Friday, the day after it reported iPhone sales that missed Wall Street estimates and said revenue in China slumped.
- Chinese Auto Firms Urged to Lift Game Amid Foreign Competition — Chinese carmakers and their vast network of auto-parts suppliers need to become more competitive in order to fend off increasing competition from Tesla Inc. and foreign battery and chip manufacturers, an industry group said.
Reuters
- Column: China’s aluminium juggernaut may be running out of road – Andy Home — Another month, another Chinese aluminium production record.
- Hong Kong recession shows signs of slowing as China economy expands — Hong Kong’s long recession showed signs of easing in the third quarter, with a gradual improvement in domestic and external demand from an improving Chinese economy, an easing of the COVID-19 outbreak and stronger financial market activity.
- China’s banks seen facing persistent bad loan pressures after third-quarter earnings drop — China’s largest state-owned lenders will see bad loan pressures persist in coming quarters as some borrowers face difficulties in repaying loans after months of inactivity, analysts said on Friday after a slew of banks posted lower quarterly earnings.
- China to increase incomes, expand middle class in 2021-2025- state planner official — China will increase the incomes of low-income groups and expand middle class over the 2021-2025 period, Ning Jizhe, the vice head of the National Development and Reform Commission, said at a news conference in Beijing on Friday.
- Xiaomi grabs smartphone marketshare in third quarter as Huawei wobbles: data — Chinese smartphone maker Xiaomi Corp grabbed market share in China and Europe in the September quarter as rival Huawei Technologies’ dominance slipped due to U.S. sanctions, market data showed.
- Exclusive: Julius Baer plans wealth management joint venture in China – sources — Swiss private bank Julius Baer Gruppe AG plans to set up business in China in partnership with a local financial firm as part of its strategy to boost growth in Asia, people with direct knowledge of the matter told Reuters.
- China must commit to battery recycling in electric vehicle boom: Greenpeace — China needs to step up the recycling and repurposing of batteries for electric vehicles in order to ease supply strains and curb pollution and carbon emissions, environmental group Greenpeace said on Friday.
- Wary of security issues, Japan’s government moves to shut China out of its drone supply chain — Japan may effectively shut off China from supplying drones to its government to protect sensitive information, according to six people in government and the ruling party familiar with the matter, as part of a broad effort to bolster national security.
Xinhua
- Volkswagen profit in Q3 driven by growing sales in China — Following losses of more than one billion euros in the first half of the year, Volkswagen recorded earnings before tax of around 2.4 billion euros (2.8 billion U.S. dollars) by the end of the third quarter (Q3), Germany’s largest carmaker announced on Thursday.
- China’s central bank injects liquidity into market — China’s central bank pumped cash into the banking system through open market operations to maintain liquidity Friday.
- Chinese yuan strengthens to 6.7232 against USD Friday — The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 28 pips to 6.7232 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.
- Development of smart airports in China takes wing — China’s civil aviation industry has seen progress in developing smart airports, according to a senior official of the Civil Aviation Administration of China (CAAC).
- Interview: China int’l import expo to substantially promote trade, says Hyundai Motor executive — The China International Import Expo (CIIE) will substantially promote trade across the border amid the prolonged COVID-19 pandemic that has weakened global trade, an executive of a South Korean automaker has said.
- Brazilian juice maker looks to China expo to bolster business — Brazilian maker of organic tropical fruit juices DNA Forest is eager to expand its business to the “other side of the world” by taking part in the upcoming China International Import Expo (CIIE).
- China’s goods, services trade surplus tops 157 bln yuan in September — China’s international trade in goods and services surplus stood at 157.3 billion yuan (about 23.1 billion U.S. dollars) in September, official data showed on Friday.
- China to export light rail trains to Mexico — A light rail train that will be exported to Mexico has rolled off the assembly line in Changsha, capital of central China’s Hunan Province.
- Coca-Cola, Chinese dairy giant Mengniu register joint venture — Chinese dairy giant Inner Mongolia Mengniu Dairy (Group) Co., Ltd. and Coca-Cola (China) Investment Limited have officially registered a joint venture, Mengniu said on Friday.
- Chinese shares close lower Friday — Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down 1.47 percent, at 3,224.53 points.
Other Publications
- Carnegie Endowment for International Peace: Reorienting China Policy By Working With Europe — Europe and the United States have adopted new courses on China policy over the last four years. Yet actual results are still lagging behind China’s many actions and initiatives.
- Nikkei Asian Review: Chinese cities race for subsidies in fuel cell gold rush — Authorities and automakers join hands to plan new industry hubs.
- Nikkei Asian Review: Chinese oil majors show momentum, aided by pipeline sale — Sinopec regains pre-COVID profits, while coal sales rebound in September.
- The Economist: If China’s economy is so strong, why isn’t its currency stronger? — The government may be using commercial banks as proxies to suppress the yuan.
- Foreign Policy: The U.S. Finally Has a Sputnik Moment With China — Fear of Beijing’s technological prowess is driving deep policy shifts.
- Axios: SoftBank CEO under fire for text messages on business turmoil — Former WeWork CEO Adam Neumann won a Delaware court motion to remove redactions on select text messages between Son and Marcelo Claure, the SoftBank COO and WeWork executive chairman, as part of his lawsuit against SoftBank for bailing on its $3 billion tender offer for WeWork shares. The most explosive message was related to SoftBank’s desire to delay the $3 billion payable in the tender by one month, which SoftBank had blamed on regulatory approval delays.
