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
- Investors Pull Cash From China’s Money-Market Behemoth as Yields Tumble — Beijing’s coronavirus-fighting measures push the yield of Ant Financial’s flagship fund to a record low.
- Chinese Stock Index Enters Positive Territory for the Year — A key Chinese index turned positive for the year, making it one of the few international stock benchmarks to show a gain for 2020, underlining the relative resilience of mainland shares.
- Return of Coronavirus Slams Beijing’s Already Hard-Hit Restaurants — Few businesses in China’s capital have been as hard hit by the coronavirus as restaurants, many of which were forced to shut for months, lay off employees and eke out an existence selling takeout meals.
- Japan Woos Hong Kong Business as Abe Cools to China — Beijing says it will protect investors’ rights in the territory, seeking to counter global concerns.
The Financial Times
- Bankers hunt for NY-listed Chinese companies to bring ‘home’ to HK — JD.com’s $4bn secondary offering this week could lead to many more, say advisers
- India rethinks strategic ties following border clashes with China — New Delhi likely to boost US relations and reduce reliance on commerce with its neighbour
The New York Times
- Will India Side With the West Against China? A Test Is at Hand — The United States and its allies have long wanted India’s help in confronting China. Now, a deadly border clash seems likely to push India in that direction.
- China Indicts 2 Canadians on Spying Charges, Escalating Dispute — Michael Kovrig and Michael Spavor were detained in 2018 amid heightening tensions between Canada and China.
- The Biggest Obstacle to China Policy: President Trump — Overseeing chaotic actions is a president whose goal with Beijing has been to secure a trade deal that would help him get re-elected.
Caixin
- Over 50 Billion Yuan Raised by China’s Local Governments Left Idle — More than $7 billion meant for infrastructure investment went unused due to a shortage of worthwhile projects and inefficient project management
- China Takes New Step to Power Up Hydrogen Fuel Vehicles — New document on hydrogen filling stations for the first time mentions liquefied form of the fuel, which is far cheaper to transport than traditional compressed hydrogen gas
- Trending In China: Tencent Uses Facial Recognition to Fight Gaming Addiction – Cue Happy and Angry Faces — In recent years, Chinese gaming regulators have come up with many methods, from real-name registration to setting time and spending limits on mobile games, to curb young gamers’ “addiction” and excessive screen time. Now, a new rule from internet giant Tencent may help the anti-addiction campaigners achieve more effective results. And that is all because of facial recognition technology that is being widely used across many sectors of the country.
- Zhenmeat Launches Plant-Based ‘Pork’ and ‘Crayfish’ to Cater to Chinese Tastes — Beijing-based startup, Zhenmeat, that produces plant-based ‘meat’ is elbowing its way into China’s nascent faux meat market with the launch of two new products which the company said are specifically designed to appeal to Chinese tastes, CNBC reported Thursday.
South China Morning Post
- China-India border clash pushes relations to new low, observers say — Relations between China and India are expected to deteriorate with frequent border crises despite both sides claiming to seek de-escalation on recent clashes, former diplomats and academics said.
- China protein milk powder imports from Australia, New Zealand jump but questions over use as a supplement for infants — The coronavirus outbreak has spurred a new demand in China for protein milk powder from Australia and New Zealand, but experts are concerned there is new danger in its use as a supplement for infants.
- Coronavirus: Hong Kong bankruptcies for May the worst since 2003 Sars epidemic, as experts paint dour picture of road ahead — Hong Kong has reported the biggest monthly surge in personal bankruptcies since the 2003 Sars epidemic, with experts warning the worst is yet to come as the Covid-19 crisis takes its economic toll.
- Coronavirus: tables tougher to come by as ‘revenge spending’ drives bookings bounceback at Hong Kong restaurants, insiders say — Buoyed by a “revenge spending” binge by consumers eager to resume normal life, Hong Kong’s battered food and beverage sector has recently seen restaurant bookings rebound to 80 per cent of pre-coronavirus numbers, even before Friday’s latest relaxation of social-distancing rules, industry figures have said.
- Why Hong Kong manufacturers struggle to revitalise factories in China’s Greater Bay Area — Hong Kong manufacturing firms with operations in China’s Greater Bay Area are struggling under the weight of burdensome regulations and are reluctant to make long-term investments to upgrade facilities because of uncertainty in the global business environment, according to a new report by the Chinese Manufacturers’ Association (CMA) of Hong Kong.
- ‘He’s not a spy or secret agent’: Michael Spavor charges in China concern North Korea watchers — Friends and North Korea watchers have expressed disappointment and concern after Chinese authorities announced spying charges against Michael Spavor, a Canadian entrepreneur and pro-engagement advocate known for his personal relationship with Kim Jong-un.
- China to step up US agriculture purchases under phase one trade war deal after Hawaii talks, sources say — China plans to accelerate purchases of American farm goods to comply with the phase one trade deal with the United States following talks in Hawaii this week.
Bloomberg
- Debt Woes Rise for China LVMH Wannabe as State Support Wanes — A troubled private firm that aspired to be China’s answer to LVMH is facing growing concern over its ability to repay debt.
- China Removes Doubt Over Salmon Causing New Outbreak in Beijing — China agreed with global experts that it’s unlikely food trade is responsible for causing a fresh outbreak of the coronavirus in Beijing, indicating it’ll no longer consider imposing restrictions.
- HSBC Hits Out at ‘Rumors’ With China Investment Pledge — HSBC Holdings Plc hit out at unspecified “internet rumors’ in China, pledging to continue to invest and support the Chinese economy as tensions grow.
- Liquor Maker Moutai Briefly Becomes China’s Biggest Stock — Chinese liquor giant Kweichow Moutai Co. briefly overtook Industrial & Commercial Bank of China Ltd. as the nation’s biggest stock by market value.
- China’s Most Speculative Stocks Rally to Highest in Four Years — China’s equity traders are chasing the bull market in China’s tech-heavy ChiNext Index, sending the gauge to a four-year high.
- Oil Ship Cluster Off China Grows With Swelling Onshore Tanks — The cluster of oil tankers off China’s coast is growing and the vessels are waiting longer to offload their cargoes amid a lack of onshore storage space after a buying spree earlier this year.
- China’s $3.5 Trillion Wealth Product Market Suffers Losses — Chinese investors and savers just experienced something that’s never happened before: losses on some of their 25 trillion yuan ($3.5 trillion) state bank issued high-yield wealth management products.
- China’s $136 Billion E-Commerce Haul Signals a Consumer Comeback — Alibaba Group Holding Ltd. and JD.com Inc. handled record sales of $136 billion during the country’s biggest online shopping gala of the post-pandemic era, suggesting China’s nascent consumer spending recovery has legs.
- China Fund Beating 99% of Peers Owns One Hong Kong Stock — The only Hong Kong-focused company worth owning is its stock exchange, says a top fund manager who first turned bearish on the city’s economy more than a year ago.
- China Asking Banks to Route Profit to SMEs Shows Lending Failed — Asking lenders to pass on their earnings to support small businesses shows China’s financial system was failing in the first place.
- Trump Says ‘Complete Decoupling’ From China Remains an Option — President Donald Trump said the U.S. could pursue a “complete decoupling from China” in response to unspecified conditions, his most forceful statement yet on the souring ties with Beijing.
- China Bonds Are Big Favorite for $438 Billion Europe Fund Giant — China learned valuable lessons from the 2015 currency-depreciation debacle that will ensure stability going forward, and that’s one reason Aviva Investors is a big fan of Chinese bonds.
- Africa Seen Getting More Debt Relief From China Than Bondholders — African countries may get debt relief from China more easily than private creditors amid a global push to blunt the economic impact of the coronavirus pandemic on poor nations, a Johns Hopkins University study shows.
- Fink Ranks China Among Biggest Opportunities for BlackRock — BlackRock Inc. Chief Executive Officer Larry Fink said China remains one of the firm’s top regions for growth despite uncertainties brought on by trade tensions with the U.S. and the virus outbreak.
Reuters
- China to revamp benchmark equity index, STAR as pursues growth — China will revamp its benchmark equity index by introducing more high-tech strength and removing loss-making companies, as it turns to its capital markets to bolster its economy against the impact of the coronavirus outbreak.
- China approves AIA application to convert mainland branches into life insurance unit — China’s banking and insurance regulator said on Friday that it had approved an application by insurer AIA Group Ltd to convert all its branches in mainland China into a wholly-owned life insurance subsidiary to be headquartered in Shanghai.
- Food exporters to China asked to declare produce is coronavirus-free — China’s customs authority has asked food exporters to the country to sign a declaration their produce is not contaminated by the novel coronavirus, three people who received a letter said on Friday.
- Samsung to relocate Chinese display production to Vietnam: media — Samsung Electronics is planning to shift much of its display production from China to its plant in southern Vietnam this year, state media said on Friday.
- Australia sees China as main suspect in state-based cyberattacks, sources say — Australia views China as the chief suspect in a spate of cyber-attacks of increasing frequency in recent months, three sources familiar with the government’s thinking told Reuters on Friday, a suggestion swiftly dismissed by Beijing.
- China seen keeping lending benchmark rate steady in June: Reuters poll — China is expected to keep its benchmark lending rate unchanged for the second straight month at its June fixing on Monday, a Reuters survey of traders and analysts found, after the central bank kept the borrowing cost of medium-term loans steady this week.
- China’s new marine fuel contract seen attracting strong industry, investor interest — China’s marine fuel futures contract that debuts on Monday on the Shanghai International Energy Exchange (INE) is likely to attract strong interest, despite weakened ship fuel demand amid the coronavirus pandemic, industry participants said.
- China says one-fifth of Belt and Road projects ‘seriously affected’ by pandemic — About 20% of projects under China’s ambitious Belt and Road Initiative (BRI) to link Asia, Europe and beyond have been “seriously affected” by the coronavirus pandemic, an official from China’s Ministry of Foreign Affairs said on Friday.
- U.S. senators unveil bill to curb foreign espionage, influence on campuses — A bipartisan group of U.S. senators introduced legislation on Thursday aimed at protecting research and innovation on U.S. campuses and preventing suspected theft of intellectual property by China and other countries.
- China’s Shandong Gold to buy Ghana-focused Cardinal Resources for $221 million — Shandong Gold Mining Co , one of China’s biggest gold producers, said on Thursday it would buy Ghana-focused miner Cardinal Resources Ltd for around A$321 million ($221 million) in cash.
- COFCO President Yu Xubo moves to head China General Technology — The president of COFCO, China’s top state grains trader, Yu Xubo, has left the company to head China General Technology Group, according to two sources and a company notice.
Xinhua
- Factbox: China’s progress on economic resumption — As efforts to contain COVID-19 continue, China is steadily reviving its economy. The following facts and figures indicate how the country is forging ahead in the economic sphere:
- Chinese banks report forex settlement surplus in May — China’s commercial banks saw a net forex settlement surplus of 169.3 billion yuan (about 23.87 billion U.S. dollars) in May, the country’s forex regulator said on Friday.
- China’s mid-year online shopping spree shatters sales records — Nearly 4.7 billion packages were handled by Chinese postal and courier companies during this year’s mid-year shopping spree, up more than 48 percent over the same period last year, official data showed on Friday.
- Big data report shows rising freight volume during online shopping bonanza — China’s freight delivery volume jumped 111 percent year on year during a recent online shopping promotion period, according to a report released Friday by Manbang, a leading domestic freight service platform.
Other Publications
- Foreign Affairs: China Won’t Win the Race for AI Dominance — In AI Superpowers: China, Silicon Valley, and the New World Order, which unsurprisingly became an instant bestseller, former Google China President Kai-Fu Lee argues that China’s unparalleled trove of data, culture of copying, and strong government commitment to artificial intelligence give it a major leg up against the United States. The Harvard University political scientist Graham Allison has recently argued that China’s embrace of what most Americans view as a nightmare surveillance state gives it a significant data advantage over the United States.
- Forbes: China Is Challenging Dollar Dominance At The Worst Possible Time For Donald Trump — China, poised to roll out its potentially game-changing digital yuan, is leading the way in development of bitcoin-like digital currencies. Governments around the world are scrambling to keep up with the changing nature of money, kicked off bitcoin a little over a decade ago and turbo-charged by Facebook just last year, provoking an outburst from U.S. president Donald Trump.
- Sixth Tone: China to Reduce Coal Consumption Amid Economic Downturn — In an announcement Thursday, the National Development and Reform Commission and five other government agencies said the country will eliminate substandard coal power projects and strictly control added power capacity from local coal burning. The decision is one of several steps Chinese authorities have taken in recent years to reduce coal’s contribution to the country’s energy mix to under 58% by 2020.
- Markets Insider: China Drops Energy Efficiency Targets Amid Covid-19 Crisis — During this year’s gathering of the National People’s Congress (NPC), the top legislative body dropped the annual growth figure. Also, the pandemic forced Beijing to drop another key measure concerning energy conservation. Although China’s premier Li Keqiang told the congress that the 13 percent target will be dropped, he did confirm the country’s commitment to decrease energy consumption per unit of GDP.
- Business Insider: Tesla sales in California plunged amid the coronavirus — now all eyes are on China to make up the difference — Despite the temporary shutdown of its main car factory — and resulting legal tussle with local authorities — investors have largely shrugged off the expected sales drop and potential to wreak havoc on Tesla’s next earnings report. The stock hit a record high in June, crossing the $1,000 threshold for the first time even as chief executive Elon Musk admitted it was probably overvalued. The confidence likely stems from China’s potential to make up for lost US sales.
- BBC News: How reliant is Australia on China? — Australia’s relationship with China is not a happy one at the moment. Canberra’s push for answers on the pandemic’s origins has angered Beijing. In the past month it has put in place some bruising sanctions and travel warnings. Many have urged Australia to reduce its economic reliance on China, but is this really an option?
- Automotive World: Strategic decisions strengthen Audi’s China business and model series management — The Supervisory Board made another strategic decision regarding Audi’s future direction this Thursday: The Chairman of the Board of Management is to be directly responsible for the company’s business in China. “The mobility of the future is developing rapidly in China. I am looking forward to the task of further expanding our presence in our largest market and actively shaping the transformation process in the Chinese automotive industry together with Audi China and our Chinese partners,” added Duesmann.
- SpaceNews: China launches third Gaofen-9 satellite, postpones Beidou mission — China launched a Gaofen-9 series Earth observation satellite and two smaller spacecraft Wednesday, a day after postponing a Beidou navigation satellite mission due to unspecified issues.
- Medical News Today: Air pollution decreased in China during initial response to COVID-19 — The human-influenced sources of nitrogen dioxide are all related to combustion: vehicle engines, power generation, and heating. As industries shut down and people stayed at home, these sources of combustion were less active. The researchers behind the study set out to analyze the effects of this response on nitrogen dioxide levels.
- Quartz: Europe’s worries about Chinese corporate takeovers appear to be unfounded — The Covid-19 pandemic, and ensuing recession, made European lawmakers panic that they were about to see history repeat itself. For months, EU officials warned of a wave of Chinese corporate takeovers in strategic industries, like aerospace and quantum technologies. In member states, lawmakers fast-tracked bills to bolster foreign investment screenings, and the EU announced tough new rules on foreign subsidies in its common market.
