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
- U.S. Accuses Two Hackers of Stealing Secrets From American Firms for China — The two accused hackers also probed the cyber defenses of at least four American companies working on coronavirus treatment and testing in recent months, the indictment alleged.
- How Jack Ma’s Ant Group Went From Business Disrupter to Chinese Tech Champion — Ant Group’s coming IPOs could be among the world’s largest in history, with the company aiming for a market valuation in excess of $200 billion, a person familiar with its plans said.
The Financial Times
- China bonds: offshore energy — The higher yielding investments are riskier than they might appear.
- Senior US senator pushes for new tools to rein in China — Chairman of foreign relations committee says Washington lacks ‘long-term’ strategy.
- Australia taps China ‘knowledge boom’ despite espionage fears — Number of partnerships on scientific research increased 13% last year.
- The UK cannot afford to self-isolate from China — Business supports greater engagement coupled with evidence-based safeguards.
The New York Times
- Froth Returns to China’s Stock Market, Echoing the 2015 Crisis — Chinese stocks are surging. Foreign investors have rushed in. University graduates and factory workers are opening up trading accounts. Is disaster on the horizon?
- U.S. Orders China to Close Its Houston Consulate in 72 Hours — The Trump administration told Chinese diplomats in Texas to clear out by Friday. Beijing warned it would retaliate.
- Banned Chinese Companies Deny Allegations They Abused Uighurs — Several firms that were blacklisted by the U.S. Commerce Department said they had found no evidence of forced labor or other abuses.
- Beware the ‘But China’ Excuses — Just because U.S. politicians and tech giants are blaming China, doesn’t mean we should be scared.
Caixin
- In Depth: Want a Loan? Forget the Bank, China’s Tech Giants Are at Your Service — Firms like Didi Chuxing and Meituan Dianping are using the data they hold on millions of customers to sell them loans, insurance and wealth management products.
- Eight Fintech Projects to Be Trialed in Shanghai ‘Regulatory Sandbox’ — Pilot program for new regulations aims to encourage innovation in fintech industry.
- China Moves to Overhaul Supervision of $3.1 Trillion Insurance Industry — Local regulators will take over 64 property insurers as banking and insurance commission resumes project of decentralizing authority for efficiency gains.
- Biotech Startup Everest Medicines Files for Hong Kong IPO — Company completed $310 million series C fundraising last month.
- In Depth: What Will Chinese Apps Do After India Ban? — Tech companies face a tough decision after being kicked out of a giant, lucrative market nurturing home-grown industry: Exit, or find local joint-venture partners.
- China Disputes Report of Retaliation Against Nokia and Ericsson — As Europe weighs following U.S. and U.K. in barring Huawei from 5G networks, Foreign Ministry calls invoking national security an ‘erroneous practice’.
- Chinese Electric Car Startup Hozon Eyes Shanghai IPO by 2021 — Lesser-known Chinese electric vehicle startup Hozon Auto plans to go public on Shanghai’s Nasdaq-like high-tech STAR Market by the end of 2021, the company said in a WeChat post on Monday.
- Li Ka-Shing’s Horizon Ventures Leads Funding Round in Fake-Milk Maker — Hong Kong’s richest man has a taste for vegan ice-cream.
- Chinese Video Giant iQiyi Eyes Southeast Asian Markets with Three New Hires — Nasdaq-listed video streamer iQiyi has hired three industry veterans to help it better navigate key Southeast Asian markets.
South China Morning Post
- China-Australia decoupling could damage ‘mutual benefits’ from joint scientific research, study says — A push for decoupling between China and Australia could jeopardise not only trade, but knowledge and commercial benefits gleaned from growing research collaboration, a new report said on Tuesday.
- Hong Kong’s Cathay Pacific delays aircraft deliveries, slowing cash burn amid Covid-19 travails — Cathay Pacific is burning about half as much cash, HK$1.5 billion (US$194 million) a month, as it did when the Covid-19 pandemic first hit the industry, the airline said on Wednesday, pointing to a deal with Airbus to delay aircraft deliveries and talks with Boeing to do the same.
- Tighter rules, sky-high prices in Shenzhen will send homebuyers flocking to ‘investor paradise’ Huizhou, say analysts — The southern Chinese city of Huizhou could become a “paradise” for investors from nearby Shenzhen after the latter tightened its rules for home purchases last week, and with the travelling time between the two cities set to be cut by half next year.
- Taiwan’s parliament passes proposal to rebrand China Airlines — Taiwan’s parliament has passed a proposal to rebrand the island’s largest airline to avoid confusion with carriers on the Chinese mainland.
- Hong Kong’s biggest shopping centre Harbour City offers rent concessions and shocks tenants with lease renewal terms — The owner of Hong Kong’s biggest shopping centre is offering its tenants additional rent concessions, with a catch: extend the leases for at least 18 months in a market facing a third wave of coronavirus infections.
- US dollar payment system debate continues, can America cut China off from Swift? — Debates continue among Chinese officials and analysts as to whether the United States has the ability and willingness to reduce or even completely cut off China’s access to the US dollar system, reflecting a sense of uneasiness in Beijing about the potential ramifications of a financial war with Washington.
- National security law: Japanese firms rethinking value of staying in Hong Kong, poll finds — Japanese companies in Hong Kong are considering downsizing or even pulling out of the city due to concerns over the national security law, a survey suggests.
Bloomberg
- China Vows Retaliation After U.S. Shutters Houston Consulate — China vowed retaliation after the U.S. forced the closure of its Houston consulate, in one of the biggest threats to diplomatic ties between the countries in decades.
- Chinese Fintech Firm Lufax Said to Target $3 Billion in U.S. IPO — Chinese fintech giant Lufax, backed by Ping An Insurance Group Co., is targeting to raise at least $3 billion in a U.S. initial public offering, according to people familiar with the matter.
- Xi’s Radical Stock Reforms Shield China Firms From U.S. — A plan by President Xi Jinping hatched in late 2018 to liberalize China’s constrained stock market and prevent home-grown tech firms from flocking to New York is turning out to be a prescient move.
- China-U.S. Dispute Over Consulate Puts Market Watchers on Edge — The latest tensions between China and the U.S. have put investors on edge and caused concern that a possible worsening of ties will dampen enthusiasm for riskier assets, market watchers say.
- China Fuel Flood Has Asia’s Gasoline Recovery Teetering — Asian oil refiners, beware. China’s churning out cheap gasoline and it’s pulling the rug from under the sector’s recovery.
- Nestle Adds Chinese Water Brands to List of Possible Disposals — Nestle SA is considering selling a bottled water business in China as the world’s largest food company sheds underperforming brands.
- Tesla Slashes Deposit for China Customers to Just $143 — Tesla Inc. lowered the deposit that buyers in China have to put down on its cars, seeking to keep sales momentum in the face of intensifying competition and reductions in the government’s electric-vehicle subsidies.
- Xi Says China on ‘Correct Side of History,’ Urges Innovation — President Xi Jinping called on companies to step up innovation and help stabilize employment, reflecting an urgency to bolster China’s economy in the face of the coronavirus outbreak and U.S. efforts to restrict access to key technologies.
- Chinese Credit Fuels Debt Crisis in Africa — After years of borrowing on easy terms, many countries in the region are saddled with debt they can’t repay.
- College Pals From China Became Among Most Prolific Hackers Ever, U.S. Says — Justice Department accuses pair of hacking Covid-19 research, military secrets and dissidents
- Investors Waiting for China Inc. Bailouts Will Be Disappointed — Investors holding out hope for bailouts are sure to be disappointed.
- Ant’s IPO Is Less Important Than Bottom Line for Alibaba, Jack Ma — As its core business slows, the online retailer’s quarterly earnings are tied to its fintech affiliate, which is preparing an IPO.
- Macau Casinos Likely to Post $1 Billion Loss in June Quarter — Macau casino operators are expected to post a loss of over $1 billion collectively in their earnings before interest, tax, depreciation and amortization for the quarter ended June 30, according to a Bloomberg survey of analyst estimates.
- Polysilicon Makers Shares Soar After Blast at Chinese Plant — One of the world’s biggest producers of polysilicon — a key ingredient for solar power systems — shut a major plant in China after it suffered a series of explosions, according to a person familiar with the incident.
Reuters
- China’s Didi Chuxing launches standalone, cheaper ride-hailing service — China’s Didi Chuxing said on Wednesday it has launched a new standalone ride-hailing service that targets younger customers and offers cheaper rides compared to its main app.
- China may shut U.S. Wuhan consulate after U.S. orders its Houston mission closed: source — China is considering ordering the closure of the U.S. consulate in the central city of Wuhan, a person with direct knowledge of the matter said on Wednesday, after Washington told China to shut its consulate in the city of Houston.
- Japan to discuss easing immigration curbs with China, South Korea, Taiwan – NHK — Japan’s government has decided to begin discussions over easing immigration restrictions with China, South Korea and Taiwan, public broadcaster NHK reported on Wednesday.
- Danish shipper Maersk to stop taking waste to China, Hong Kong from Sept — Denmark’s A.P. Moller-Maersk, the world’s top container shipping firm, said on Wednesday it would stop accepting solid waste shipments bound for China and Hong Kong from September.
- Shanghai’s remodeled index still not reliable benchmark for the world’s No.2 stock market — China revamped its Shanghai share index on Wednesday for the first time in 30 years, but critics say the changes don’t go far enough to fully address distortions in the benchmark of the world’s second biggest stock market.
- China central bank to pause easing as economy recovers, wary of over-stimulus: sources — China’s central bank does not see an immediate need to ease monetary policy further, but will keep conditions accommodative to support a recovery in the world’s second-largest economy, four policy sources told Reuters.
- China’s Didi Chuxing says it currently has no plans for IPO — China’s dominant ride-hailing firm Didi Chuxing said on Wednesday that an initial public offering (IPO) was not its top priority, and the company did not have any related plan for the moment.
- China’s first-half solar panel output jumps 15.7%, industry body says — China produced 59 gigawatts (GW) worth of solar panels in the first half of the year, up 15.7% from a year ago, an official with the country’s solar industry association said on Wednesday, with the sector barely affected by the coronavirus outbreak.
- China allocates flood relief fund to farmers, agriculture production — China has allocated a 330 million yuan ($47 million) disaster relief fund to help farmers and agricultural production in southern provinces, as large parts of the country suffer the worst flooding in decades.
- Marriott sees Greater China occupancy rates returning to pre-virus levels by early 2021 — Hotel operator Marriott International said it expected room occupancy rates in Greater China to rise to 60% next month and forecast it could recover to pre-coronavirus levels by the start of 2021, as domestic travel in the country ticks up.
- Chinese genetics company BGI denies U.S. human rights accusations — The Chinese parent of two companies added to a U.S. economic blacklist over allegations of conducting genetic analyses used to further the repression of China’s minority Uighurs has denied wrongdoing.
- Want to make profits from coffee in China? It’s actually a grind — Looking outside her Beijing coffee shop where seven other nearby cafes including a Starbucks compete for customers, Huang Ying is simply glad to still be in business.
- China’s Huatai joins chase to bank rich retail investors trading offshore — China’s Huatai Financial Holdings has big plans for a billion-dollar overseas push, said chief executive Levin Wang – it aims to overtake top players like Futu Holdings in the fast-growing market for Chinese retail investors trading offshore.
- U.S. Senate report accuses China of ‘digital authoritarianism’ — China is using its technological rise to develop “digital authoritarianism” to conduct surveillance, control the internet and censor information not just within its borders, but around the world, a U.S. Senate report said on Tuesday.
- China requires negative COVID-19 tests for arriving air passengers — Passengers of China-bound flights must provide negative COVID-19 test results before boarding, China’s aviation authority said on Tuesday, as the government looks to further reduce the risk of imported coronavirus cases amid increased international travel.
- Pompeo and Johnson discussed China’s actions in Hong Kong and Xinjiang — U.S. Secretary of State Mike Pompeo and British Prime Minister Boris Johnson discussed China’s actions in Hong Kong and its treatment of Muslims in Xinjiang, according to a British summary of the discussion.
Xinhua
- China boosts employment with major cut in social insurance contributions — China has slashed social insurance contributions paid by enterprises amid efforts to boost the job market hit by COVID-19, officials said Tuesday.
- Tianjin port posts rise in iron ore imports in H1 — China’s Tianjin port saw iron ore imports rise 13.6 percent year on year to around 37.86 million tonnes in the first half of this year, according to Tianjin Customs.
- China’s agricultural product wholesale prices edge down — The wholesale prices of China’s agricultural products edged down Wednesday, according to the Ministry of Agriculture and Rural Affairs.
- Interview: Apple to work closely with Chinese suppliers for carbon-neutral plan — Apple Inc. was very impressed with China’s determination and investment in environmental protection, and looking forward to working closely with Chinese local suppliers to achieve the carbon-neutral plan by 2030, a senior executive of the company said on Monday.
Other Publications
- Forbes: China’s Richest Tech Billionaires Are Selling Their Shares While The Markets Are Hot — China’s top three tech tycoons have recently pared back their holdings in the companies they founded by selling or transferring shares worth billions of dollars. Alibaba’s Jack Ma, Pinduoduo’s Colin Huang and Tencent’s “Pony” Ma Huateng appear to be taking advantage of overheating markets in the U.S. and Hong Kong to cash out when shares are trading at historical highs, analysts say.
- Axios: Exclusive: Under fire from Washington, TikTok pledges U.S. job growth — TikTok plans to add 10,000 jobs in the U.S. in the next three years as user growth explodes, spokesperson Josh Gartner told Axios.
- Foreign Policy: There Is No Arctic Axis — As observers speak of a new Cold War between the United States and China, policymakers seem to misunderstand Sino-Russian relations in the Arctic as an alliance.
- POLITICO: Canada urged to define Uighur abuses in China as genocide — Irwin Cotler, a former Liberal justice minister, is urging Canada’s Parliament to become the first to define China’s “mass atrocities” against the country’s Uighur minority as genocide.
- Nikkei Asian Review: China must fulfill its duties under debt forbearance plan — G-20 falls short in helping virus-stricken emerging nations. As fears of a second coronavirus wave cloud the outlook for the global economy, particularly in developing countries that lack resources to handle the crisis on their own, major economies do not seem to be treating the situation with the sense of urgency it requires.
- The Diplomat: Pakistan Warns Chinese TikTok, Blocks Singaporean Bigo Live App — Pakistani authorities cited widespread complaints about “immoral, obscene and vulgar” content on the apps.
- The Washington Post: The U.S. has a stronger hand in its tech battle with China than many suspect — Washington is playing a stronger hand in this tech competition than some analysts have realized. U.S. companies still control the commanding heights, even after rapid Chinese advances. As a result, America’s ability to constrain China, at least in the near term, is greater than generally appreciated.