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
- Global Stocks Slide on Fears Over Fresh Virus Outbreaks — Stock futures and international indexes fell, as investors questioned whether fresh outbreaks of the new coronavirus could hold back global economic recovery.
- EV Battery Makers’ Euro Trip Could End in China — Shares of Korean battery makers are on a tear thanks to new rules to promote EVs in Europe. China could be a spoiler, however.
- Chinese Consumers Add Fuel to Factory-Led Economic Recovery — Chinese consumers stepped up to make big-ticket purchases, pushing up home prices and auto-sales numbers and prompting economists to increase their growth outlook for the world’s second-largest economy.
- Huawei, the Grid and Uranium Independence — As the U.S. secretary of energy, my department is doing important work to secure critical energy supply chains that are also overexposed to imports from foreign adversaries like China, Iran, and Russia.
- China a Bright Spot for U.S. in Gloomy Global Trade Picture — China has retaken its mantle as America’s largest trading partner, emerging as a rare bright spot for U.S. farmers and other exporters as the pandemic limits global commerce.
- King Dollar Is a Deadly but Dangerous Trump Card in U.S.-China Fight — If the U.S. chooses to, it could seriously damage China in the financial realm—and China has little capacity to retaliate. Using such powerful tools carries risks, however.
- American Express Gets Nod to Start Operating Card Network in China — China’s central bank gave American Express the green light to start operating a card-clearing network that will process transactions in yuan, giving the U.S. card company greater access to the country’s spenders.
- Over 1,300 Chinese Medical Suppliers to U.S.—Including Mask Providers—Use Bogus Registration Data — Over 1,300 Chinese medical-supply companies, many providing masks and respirators in the pandemic, listed on their FDA registrations a U.S. agent without proper contact information, a Wall Street Journal analysis found.
The Financial Times
- How coronavirus is changing global shipping routes — The pandemic has put intense pressure on the flow of ships from Asia to the west.
- China’s biggest chipmaker bets on Shanghai listing — SMIC’s return home from New York comes as company struggles to reach the cutting edge.
The New York Times
- Intruders Try to Kidnap a Chinese Appliance Tycoon — China’s state media identified the victim as He Xiangjian, the billionaire behind the brand Midea, painting a picture of a caper gone wrong in the low-crime country.
- China’s Economy Faces Another Hurdle: Darkened Movie Theaters — The country’s more than 12,000 cinemas have remained stubbornly closed. Reopening them is politically difficult, as the order to keep them shut came from none other than Xi Jinping, China’s top leader.
- Break the China Habit? Lobsters, Lights and Toilets Show How Hard It Is — The risks of relying economically on the Asian superpower have never seemed clearer. But as the world tries to get moving again, it needs China more than ever.
- Faced With Crisis and Re-election, Senate Republicans Blame China — Politically endangered Republicans are scrambling to make their contests referendums on China rather than the coronavirus pandemic.
Caixin
- Securities Regulator to Make It Easier to Invest in Brokerages — CSRC to relax rules on qualifications of major shareholders, lowering threshold for investment
- Tencent Buys 10.4% of Warner Music — Internet giant Tencent and its music subsidiary, Tencent Music Entertainment, have acquired 10.4% of the ordinary shares of Warner Music, in their latest effort to access the music libraries of the world’s biggest recording labels.
- Exclusive: Former Securities Regulator Sentenced to 12 Years — Xiong Guosen, former head of Hunan Securities Regulatory Bureau, said to be convicted of bribery and insider trading after secretive four-year investigation
- Segway Owner Ninebot to Sell China’s First CDRs on STAR Market — Xiaomi-backed scooter maker wins approval to raise $293 million in Shanghai and plans to launch robot delivery service via WeChat or an app
South China Morning Post
- China confirms more than 40 per cent of population survived on just US$141 per month in 2019 — More than 40 per cent of China’s population earned only about 1,000 yuan (US$141) per month last year, the top economic data agency confirmed on Monday, setting the stage for further debate over the income gap in the world’s second largest economy.
- Coronavirus: WeChat, Alipay deny helping government identify 350,000 users who visited Beijing food market — Chinese digital payment apps WeChat Pay and Alipay have both denied a claim circulating online that they had provided the government with the user data of 350,000 people who had been to Beijing’s Xinfadi wholesale food market, the centre of the latest coronavirus outbreak in the country.
- Coronavirus impact: China’s auction of 1 trillion yuan of special treasury bonds to begin this week, sources say — The Chinese government will begin auctions this week of a planned issue of 1 trillion yuan (US$141 billion) of special treasury bonds to help finance recovery from the coronavirus pandemic, sources told Reuters on Monday.
- China and US can still cooperate as competitors, Beijing’s former top trade negotiator says — Despite growing tensions, China and the United States must find a way to cooperate because their economies are too intertwined to decouple, according to a former top Chinese trade negotiator. “At a time when the [coronavirus] pandemic is still threatening global cooperation, I think it’s even more important to uphold and carry forward a spirit of cooperation,” Long Yongtu, head of the Chinese team that negotiated the country’s 2001 entry into the World Trade Organisation, told a seminar.
- Coronavirus: wheels come off China’s mask-making gravy train, as low-end manufacturers count their losses — In April, as China’s mask-making juggernaut was cranking up, Changzhou machinery part manufacturer Mo Xiaoyi stockpiled meltblown fabric and nonwoven fabric, both essential mask materials, at peak prices.
- A US$6 trillion tidal wave of quantitative easing is coming, but it won’t buoy Hong Kong home prices – here’s why — Hong Kong’s homebuyers are unlikely to see a repeat of the 278 per cent surge in property prices seen over the past 12 years, because a contracting economy, rising unemployment and heightened political tensions are expected to dilute a fresh wave of quantitative easing (QE).
Bloomberg
- EU Challenges China’s Trade Expansion With Landmark Tariff — The European Union fired a warning shot at China over its global trade ambitions with an unprecedented tariff decision to counter Chinese subsidies to exporters.
- China Speeds Up IPO Reform, Widens Daily Cap for Some Stocks — China is accelerating a much-delayed shakeup of its market for initial public offerings, which may lead to explosive demand for new stocks.
- China’s Slow Reboot Points to Hard Road Back for Global Economy — The fragile recovery in China’s economy is pointing to a long road back for the rest of the world too.
- Warburg Pincus-Backed Group Is Said to Near 58.com Buyout Deal — A Warburg Pincus-backed investor group is in advanced talks to acquire 58.com Inc. in a deal valuing China’s biggest online classifieds firm at more than $8 billion, people with knowledge of the matter said.
- Oil Extends Losses on Fears Second Virus Wave Will Hit Economy — Oil fell again as a fresh coronavirus outbreak in China, and increases in cases elsewhere, spurred concerns that a second wave of the virus will derail a nascent economic recovery.
- China’s Tech Champions Have Big Homegrown Problems — For a top chipmaker like Tsinghua Unigroup, even the blessing of the “paramount leader” can’t ensure success.
- Why China’s Missing Out on Trillions in Sustainable Investment — Every Thursday at 9:00 p.m. for the past two years, around a dozen Chinese finance veterans and regulators have held a video call to talk about pushing the nation’s companies to meet environmental, social and governance standards. This was supposed to be the year their efforts paid off.
- China Eastern Air Announces Plan to Create Hainan-Based Carrier — China Eastern Airlines intends to establish a new airline in Hainan along with a group of other investors to take advantage of planned free-trade area and tourism growth, it says in a filing to the Hong Kong stock exchange.
- Hong Kong’s Rich Are Preparing for a Worst-Case Scenario — One Hong Kong businessman moved $10 million to Singapore and plans to transfer more. Another is eyeing London property, worried that prices in Hong Kong are too high. Well-to-do families across the city are opening offshore bank accounts and applying for alternative passports.
- PBOC Liquidity Stance Leaves Banks Looking for More Action — The People’s Bank of China supplied banks with 200 billion yuan ($28 billion) in fresh liquidity Monday while letting some previous loans expire, leaving the financial system needing further injections if a looming cash crunch is to be avoided.
- Asia Electronics Sector Booms, Bucking Global Economic Slump — Global trade data in the Covid-19 era has been generally abysmal, but look a little closer and the electronics sector that fires Asia’s trade engines could be headed for a pretty good year.
- World’s First 5G Networks Still More Patchy Than Powerful — Fifth-generation networking hype has been in full force since Qualcomm Inc. declared “5G is here, and it’s time to celebrate” in February of last year. The reality, however, has required patience from consumers due to the time needed to roll out the new networks and the dearth of applications to put additional speed to compelling use.
- Air Travel Rebound Still Years Away as Virus Lingers, Kayak Says — Travel demand probably won’t return to last year’s levels until about 2023 because of the lingering impact of Covid-19, according to travel-search site Kayak.
- Firms Line Up to List in Hong Kong as Market Reopens: ECM Watch — Companies are lining up to list in Hong Kong as a dry spell for initial public offerings comes to an abrupt end with two multi-billion dollar listings.
Reuters
- China halts European salmon imports over suspected link to virus outbreak — China has halted imports from European salmon suppliers amid fears they might be linked to a coronavirus outbreak at a Beijing market, although experts say the fish itself is unlikely to carry the disease.
- Delta has received approval from Shanghai government to resume flights — Delta Air Lines has received approval from the Shanghai government to resume flights from June 18, a company spokeswoman said on Monday, paving the way for the carrier to resume services to China after months of suspension due to COVID-19.
- Hong Kong security law will not be retroactive: Chinese official — Hong Kong’s national security legislation will not punish people retroactively, a senior Chinese official said on Monday, touching on a key question raised by local residents, diplomats and foreign investors over the controversial law.
- Tesla’s China car registrations up 150% month on month in May — U.S. electric vehicle maker Tesla Inc’s China car registrations in May jumped 150% month on month, data from auto consultancy LMC Automotive showed.
- Breakingviews – Tencent’s China car deal defies and disappoints — Tencent is driving a deal that both defies and disappoints. A consortium led by the Chinese internet giant has agreed to buy New York-listed car comparison site Bitauto for $1.1 billion, the same price it proposed months ago. Globally, buyers have tried to cut lower prices on deals etched out before the pandemic. But the outlook for China’s auto market is rosier than before. From that perspective, Tencent is getting a bargain.
- China May property investment quickens, sales rebound — Real estate investment and sales in China both quickened in May, pointing to continuing momentum as the property sector gradually recovers from the impact of the coronavirus outbreak.
- China finalizes new IPO rules for Shenzhen’s ChiNext startup board — China has finalised new rules for companies looking to list on Shenzhen’s ChiNext board, streamlining the listing process and allowing IPO pricing to be fully determined by the market.
- China Moly chairman steps down, takes M&A role in reshuffle — China Molybdenum Co chairman Li Chaochun has resigned from his position but will remain vice chairman and chief investment offer in a management shuffle, the mining company said late on Friday.
- China’s iron ore futures rise as port inventory falls further — China’s iron ore futures rose on Monday as spot prices hovered near 10-month highs supported by falling portside stockpiles, but gains were capped by signs of weakening local demand for steel products. The Dalian Commodity Exchange’s most-traded September iron ore closed the morning session up 1.0% at 770 yuan ($108.63) a tonne. Most-active July iron ore on the Singapore Exchange, however, fell 1.3% to $100.86 a tonne.
Xinhua
- Chinese car products marketplace Car House Holding files for U.S. IPO — Car House Holding, which operates an online marketplace of automotive products in China, filed on Friday for an initial public offering (IPO) on the U.S. stock market.
- China’s transportation services speed up recovery in May — China’s cargo transport industry reported growth last month as business activities further resumed, industry data showed.
- Volkswagen car deliveries fall 34 pct in May, Chinese market recovering — Worldwide vehicle deliveries by German carmaker Volkswagen fell by almost 34 percent to around 609,400 vehicles in May year on year, the company announced on Friday.
- China’s job market remains generally stable in May — China’s job market remained generally stable in May, with the surveyed unemployment rate in urban areas standing at 5.9 percent, official data showed Monday.
- China’s fixed-asset investment down 6.3 pct in Jan.-May — China’s fixed-asset investment declined 6.3 percent year on year to 19.92 trillion yuan (about 2.8 trillion U.S. dollars) in the first five months of 2020, the National Bureau of Statistics said Monday.
- China’s property investment down 0.3 pct in first five months — China’s investment in property development edged down 0.3 percent year on year in the first five months of 2020, narrowing from the 3.3-percent decline during the January-April period, the National Bureau of Statistics (NBS) said Monday.
- China to issue 100 bln yuan of special government bonds for COVID-19 control — China will issue 100 billion yuan (about 14.1 billion U.S. dollars) of special government bonds for COVID-19 control measures in a bid to balance epidemic control with economic and social development, the Ministry of Finance (MOF) said Monday.
- State Grid to invest 24.7 bln yuan in new infrastructure this year — The State Grid Corporation of China announced Monday it will invest 24.7 billion yuan (about 3.48 billion U.S. dollars) in new infrastructure across the country this year.
- China’s major property developers see rising sales in May — Sales of China’s leading property developers saw robust growth in May, an industry report showed.
- China’s retail sales down 2.8 pct in May — China’s retail sales of consumer goods declined 2.8 percent year on year in May, narrowing from a drop of 7.5 percent in April, the National Bureau of Statistics said Monday.
- China’s housing market remains stable in May with mild price increase — China continued to see a generally stable housing market in May, with home prices in 70 major cities showing mild month-on-month increases, official data showed Monday.
Other Publications
- Nikkei Asian Review: China takes battle for cryptocurrency hegemony to new stage — At a meeting of the Chinese People’s Political Consultative Conference, a political advisory body, at the Great Hall of the People in Beijing from May 21, 10 members proposed a plan to create a digital currency consisting of the Chinese yuan, Japanese yen, South Korean won and Hong Kong dollar.
- Nikkei Asian Review: China’s rich seek ways to move cash abroad before yuan weakens — “There is no room for negotiation today,” a black-market currency dealer said when approached on West Nanjing Road, a bustling commercial strip in Shanghai, last week. “It’s going to be 7.2 yuan to the dollar.”
- American Shipper: US-China airline quarrel exacerbates supply shortage for cargo — The air service dispute between the U.S. and China over resuming passenger air travel will have spillover effects for airfreight shippers and other areas of trade as the relationship between the countries deteriorates, industry and legal experts say. Limiting flights from each country perpetuates the shortage of cargo capacity resulting from the extensive shutdown of passenger operations due to the coronavirus outbreak and sets the stage for potential Chinese retaliation against other industry sectors.
