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 Bounce Back From Worst-Ever Quarter — Auto sales in China increased 10.4% in the second quarter year over year, as dealers and auto makers began to repair the damage from a first quarter wrecked by the coronavirus.
- Traders Bet on Rally for China’s Markets — A dramatic rally in shares of Chinese companies has unleashed a frenzy of trading activity, with many investors positioning for an even bigger advance.
- China’s Energy Policy Is a Darker Shade of Green — China is simultaneously ramping up investment in both renewables and coal, raising uncomfortable questions for investors as well as climate activists.
- U.S.-China Tensions Rise Amid Hong Kong and Trade Concerns — While the U.S. deals with the novel coronavirus, racial injustice and a presidential campaign, tensions with China continue to unfold. WSJ’s Gerald F. Seib explains.
- China’s Markets Rally on Optimism Economy Is Shaking Off Covid-19 Pandemic — Authorities highlighted hundreds of operations making illegal loans against shares, showing that Beijing is eager to prevent stocks from overshooting.
The Financial Times
- Rise in China copper production suggests ‘robust’ recovery — Second consecutive increase in June feeds optimism for world’s second-biggest economy.
- Investors move in on China’s housing lottery scheme — Policy shuts out those low-income buyers that it was meant to benefit.
- Rising tension with China rings corporate Australia’s alarm bells — Spat with Canberra’s biggest trading partner casts cloud over businesses, from farms to banks and airlines.
The New York Times
- U.S. Imposes Sanctions on Chinese Officials Over Mass Detention of Muslims — The measure, over human rights abuses against mainly the Uighur ethnic group, is likely to ratchet up tensions between Washington and Beijing.
Caixin
- Chinese Tech Firm Spikes 1,000% in Debut Amid Market Frenzy — QuantumCTek sets a first-day record on STAR Market in a China bull market that’s swamping trading systems and fueling concerns about margin trading
- Chinese Brokerages Benefit From Stock Market Rally — June profits surge 78% from May for 36 publicly listed securities businesses on combined revenue gains of 86% as brokerage shares reach historically high levels
- Investors Fire Up Hong Kong IPO for E-Cigarette Specialist — Shares of Smoore International, a key developer of the technology behind the recent vaping craze, more than double on their first day of trading
- China Grants First Export License to Private Oil Company — China is fast approaching its crude oil storage capacity limit
- WeRide to Test Fully Autonomous Vehicles in Guangzhou — Chinese autonomous vehicle startup WeRide said Friday it has obtained the country’s first license to test fully driverless cars on designated open roads in Guangzhou, taking a step closer to its dream of transporting passengers with their “robotaxis” capable of tackling traffic emergencies by themselves.
- Tencent Leads $40 Million Investment in Online Art Educator — Chinese online drawing education startup Meishubao has secured $40 million in its series C+ funding round led by Tencent, which is also behind some of China’s better-known online educators including VIPKid and Yuanfudao.
- Alibaba Aims to Facilitate $1.4 Trillion in Sales Annually By 2024 — In his first public letter to investors as Alibaba’s chairman, Daniel Zhang charted a comprehensive blueprint for the Chinese e-commerce behemoth’s future growth.
South China Morning Post
- TSMC’s June sales shine after virus drives demand for data centre chips — Taiwan Semiconductor Manufacturing Co. posted monthly revenue that suggested June-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chip maker weather the pandemic and US curbs on its No 2 customer Huawei Technologies.
- China’s patent filings back on track amid Covid-19 disruptions — Patent filings in China rose slightly in the first half of this year even as the number of licences granted declined, according to the latest government data, reflecting the country’s efforts to recover from the disruptions caused by the Covid-19 pandemic.
- Taiwan hails defensive capability after US approves sale of missile upgrade — The United States has approved the US$620 million sale of a missile upgrade to Taiwan at a sensitive moment when Beijing has stepped up sabre-rattling against the island through various military drills.
- Coronavirus, US-China trade war see 95 per cent of American firms wanting to ditch Chinese suppliers — Jaded by two years of trade war tariffs, worried by the disruptive coronavirus pandemic and anxious about the crumbling US-China relationship, a vast majority of American buyers are looking to shift their supplier base away from China, new research shows.
- China loans hits record US$1.73 trillion in first half of 2020 after strong June as coronavirus recovery continues — New bank lending in China rose 22.3 per cent in June from May as authorities continued to boost credit and ease policy to get the world’s second-largest economy humming again after a sharp coronavirus-induced contraction.
- Australia keen on penning RCEP trade pact this year despite disputes with China — Australia has reaffirmed its commitment to signing the Regional Comprehensive Economic Partnership (RCEP) trade agreement despite rising political tensions with China – a key supporter of the treaty – possibly paving the way for a new platform for trade-conflict resolution between the two countries.
- Chinese officials bemoan ‘significant catch-up’ needed with US on chipmaking, as industrial decoupling looms — China must redouble efforts to improve its hi-tech production capabilities – particularly in semiconductor manufacturing – to safeguard national development in the face of increased pressure from the United States, Chinese officials and experts have said.
Bloomberg
- China’s Tough Talk on U.S. Sanctions Leaves Room to Cool Tension — By now it’s become a familiar pattern: the Trump administration takes an unprecedented action against China, Beijing vows retaliation and then life pretty much goes on as normal.
- Global Banks Risk Breaching China Law by Complying With U.S. — Global banks risk being caught between Beijing-backed penalties and sanctions being debated in the U.S. as Hong Kong’s autonomy becomes a volatile point of friction between the two superpowers.
- China Starts Taxing Its Citizens for Global Income — China has started tracking down some of its citizens living abroad to collect taxes, surprising expatriates who never had to pay levies back home on overseas income, according to people familiar with the matter.
- China’s Tahoe Is Said to Weigh $1 Billion Insurance Unit Sale — Tahoe Investment Group Co. is weighing a sale of its life insurance unit that could fetch about $1 billion, people with knowledge of the matter said.
- Global Air Travel Is Recovering With Big Domestic Boost in Asia — Air travel is slowly picking up globally thanks to a recovery in domestic flights, with countries in the Asia-Pacific region accounting for half of the top 20 markets, according to travel data analytics provider Cirium.
- People’s Bank of China Cuts Stake in Housing Development Finance — China’s central bank has sold at least some of its stake in India’s Housing Development Finance Corp., according to shareholder details filed with the exchanges.
- China’s ‘Too Sudden’ Bond Selloff Is at Mercy of Stock Rally — A brutal selloff that’s made China’s government bonds one of the world’s worst performers is showing no signs of ending any time soon.
- China-Connected Researcher Charged With Grant Fraud in U.S. — A researcher who worked at U.S. universities was charged with illegally using grant funding to develop scientific expertise for the Chinese government, the Justice Department said Thursday.
- China’s Chip Dreams at SMIC Cost Investors a Patriot’s Premium — A $7 billion share sale by SMIC shows the divergence between earnings and nationalism.
- Wall Street Pushes Back on U.S. Threats to De-list Chinese Firms — Vanguard Group Inc., the New York Stock Exchange and Nasdaq Inc. are pushing back on an escalating risk to their bottom lines: threats from Capitol Hill and the Trump administration to dramatically curtail U.S. investments in Chinese companies.
- Griffin Urges Cooperation Toward Uniform U.S. Listing Standard — Ken Griffin, head of the $33 billion hedge fund Citadel, called on U.S., Chinese and other foreign regulators to work together to provide better oversight of foreign companies listed on U.S. exchanges.
- TikTok Mulls Changes to Business to Distance Itself From China — Bytedance Ltd. said it’s evaluating changes to the corporate structure of its TikTok business as U.S. concerns grow over the parent company’s Chinese origins.
- BT, Vodafone Need 5 Years to Drop Huawei Without ‘Blackouts’ — BT Group Plc and Vodafone Group Plc told U.K. lawmakers they would need at least five years to swap out China’s Huawei Technologies Co. if the government decides on strict rules that would ban the company’s products from being used in 5G networks.
Reuters
- Hedge fund index dampens Chinese zeal for long-only bets — As Chinese individuals scramble into the country’s boiling stock market through long-only mutual funds, a newly-launched fund index shows how investment marathoners with risk-hedging tools can win out in China’s roller-coaster markets.
- China’s June refined nickel output rises 10.8% year on year: Antaike — China’s June nickel cathode output rose 10.8% year on year to 15,099 tonnes, Antaike, the research arm of the country’s nonferrous metals association, said on Friday.
- Honda invests in China’s CATL to jointly develop EV batteries — Japan’s Honda Motor Co Ltd will buy a 1% stake in Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) and the two will jointly develop EV batteries, the companies said on Friday.
- Japan Display aims to bring some panel production back from China after coronavirus — Japan Display Inc aims to bring some automotive panel production back to Japan after the novel coronavirus outbreak disrupted its supply chain in China, a company executive said on Friday.
- Surging truck sales boost China’s auto sector revival in June as economy upshifts — Auto sales in China rose 11.6% in June from a year earlier to 2.3 million units, driven largely by strong demand for trucks and other commercial vehicles as Beijing ramps up infrastructure spending to revive the economy.
- China Bohai Bank raises $1.78 billion in Hong Kong IPO: sources — China Bohai Bank has raised $1.78 billion after pricing its shares at HK$4.80 as it carried out the largest initial public offering in Hong Kong so far in 2020, two sources with direct knowledge of the matter said.
- Undeterred by coronavirus, China takes influence campaign online to win Taiwan hearts — As the coronavirus pandemic all but halts travel across the Taiwan Strait, China is taking its campaign pushing for “reunification” with Taiwan to the virtual world of live broadcasts, online conferences and video-making competitions.
- Gold to benefit if China recovers strongly from second virus wave: Goldman — Goldman Sachs expects gold to benefit if China, the world’s top retail buyer, recovers much strongly from a second wave of COVID-19 cases than the United States, and reinforced its $2,000 an ounce target for bullion prices.
- Explainer: Dollar peg is critical to Hong Kong amid U.S. threats, China worries — China’s national security law for Hong Kong and moves by the United States to begin withdrawing privileges enjoyed by the city under U.S. law have unsettled investors.
- Small China copper smelters shut as big get bigger: satellite data — Large copper smelters in China are boosting output and taking market share from smaller ones that are closing, data from satellite surveillance of copper plants showed.
- China’s aviation industry suffers $4.9 billion loss in second quarter on coronavirus jolt — China’s aviation industry sank further into the red, losing 34.25 billion yuan ($4.89 billion) in the second quarter, only slightly narrower than in the first quarter, underlining the colossal financial impact from the coronavirus pandemic.
- China state funds to cut stakes in PICC, some tech firms amid stock bull run — People’s Insurance Co (Group) of China (PICC) and three China-listed tech companies said their major state shareholders plan to reduce holdings – a move that comes amid a torrid bull run in China’s stock market.
- Top U.S. market’s audit watchdog gives gloomy forecast for quality bookkeeping at U.S.-listed Chinese firms — An official with the U.S. Securities and Exchange Commission’s (SEC) accounting oversight arm on Thursday said it sees “no prospects” of being able to properly do its job overseeing disclosures and preventing accounting fraud in China, amid ongoing consideration by the Trump administration of how to stave off the possible investor risk.
- China to boost investments, financing for water conservancy projects — China will deepen investment and boost financing mechanisms to expedite construction of water conservancy projects and improve its ability to guard against floods, state television reported on Thursday citing a meeting of the country’s state council.
- China’s slower meat imports seen worsening protein shortage — China’s dwindling pace of meat imports, thanks to its tough measures against coronavirus contamination, will provide further support for prices already buoyed by a severe shortage of pork, analysts said.
Xinhua
- China’s newly added social financing at 20.83 trillion yuan — China’s newly added social financing, a measurement of funds the real economy receives from the financial system, came in at 20.83 trillion yuan (about 3 trillion U.S. dollars) in the first half of this year, up 6.22 trillion yuan year on year, central bank data showed Friday.
- Chinese olive oil wins top award in int’l competition in Greece — An extra-virgin organic olive oil produced in China has won the top award at an international competition hosted in Greece recently, organizers said.
- China sees double-digit growth in broad money supply — China’s central bank said Friday the country’s M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 11.1 percent year on year to 213.49 trillion yuan (about 30.52 trillion U.S. dollars) at the end of June.
- Tianjin Port posts rise in cargo throughput in H1 — China’s Tianjin Port saw cargo throughput rise 1.7 percent year on year to 208 million tonnes in the first half of this year, according to the Tianjin Port (Group) Co., Ltd.
- China to raise gasoline, diesel retail prices — China will raise the retail prices of gasoline and diesel starting Saturday, the country’s top economic planner said Friday.
Other Publications
- Forbes: Winning The Race For China’s Students Comes At A Cost — The U.K. has overtaken the U.S. to become the most favoured destination for China’s students – but there’s a growing concern that the price may be too high. It’s becoming increasingly clear that the financial benefits are offset by a level of political interference and the compromises on academic freedom involved. And it’s not clear that it’s worth the cost.
- Forbes: Report: Trump Administration Poised To Ban Companies That Use Huawei Devices From Federal Contracts — The new rule, which is based on a 2019 law, would require companies that sell goods and services to the U.S. government to certify that they do not use any products, including telecommunications equipment and smartphones, made by Huawei and ZTE, Reuters reported.
- Washington Post: In deep trouble, Iran grabs a Chinese lifeline — The Islamic republic’s sanctions-battered currency is trading at an all-time low against the dollar. An outbreak of the novel coronavirus is killing more people each day than it did at its original peak earlier this year. And a series of explosions, suspected to be part of Israeli operations to damage Iran’s nuclear infrastructure, has exposed severe vulnerabilities in the regime’s ability to protect its most sensitive sites.
- Foreign Affairs: China’s Troubling Vision for the Future of Public Health — As the pandemic’s first epicenter, China has had a head start, and the vision its leaders have laid out—constant surveillance in the name of both biological and political health—is troubling. Democracies must develop a clear and distinct vision for the future relationship between health and security so that China’s approach does not become the world’s.
