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
- Jack Ma’s Ant Group Produces $3.5 Billion Profit in Six Months as IPO Looms — The Chinese financial-technology giant backed by billionaire Jack Ma earned roughly $3.5 billion over a recent six-month period, showing how lucrative the company’s business has been as it gears up for a blockbuster IPO.
- Alibaba’s Online Orders Soar During Coronavirus, Fueling a Sales Recovery — The Chinese e-commerce giant says its fiscal first-quarter profit more than doubled from the same period a year earlier, mirroring the results of U.S. tech giants that have thrived as disruption from the coronavirus pandemic accelerated a migration online.
The Financial Times
- Hong Kong/investment banking: Chinese wall — China’s mainland dealmakers prepare to seize an opportunity.
- Huawei fears, Chinese banks in HK, office future — After US sanctions, staff fear lay-offs.
The New York Times
- After Covid, China’s Leaders Face New Challenges From Flooding — Unusually heavy rains have wreaked havoc in central and southwestern China, leaving hundreds dead and disrupting the economy’s post-pandemic recovery.
Caixin
- In Blow to Loan Sharks, China’s Top Court Slashes Legal Private-Lending Rates — Decision aims to stamp out usury and help lower borrowing costs for small businesses and individuals.
- China Stocks Are Bright Spot in $21 Billion Loss by World’s Largest Sovereign Fund — Norway’s fund reports 7.7% growth in China stocks for first half despite major losses elsewhere due to volatility in world equity markets.
- 4Paradigm Joins IPO Rush in Chinese AI — Company founded by Baidu veteran will look to list on STAR Market sometime next year, founder says.
- Native Chinese, Including Haidilao Founders, Carve Out Major Niche on Singapore Rich List — Hot-pot power couple Zhang Yong and Shu Ping once again top the ranking, accompanied in the top 10 by Mindray co-founder Li Xiting and Sea Ltd.’s Forrest Li.
- Bargain Australian Mine Boosts Chinese Coal Miner’s Waning Profits — Yancoal Australia managed to grow its profits 7% thanks to acquisition of additional 10% of Moolarben coal mine.
- Livestreaming Breeds New Generation of Legal Disputes — It may look like fun and games, but China’s livestreaming industry has quickly become a multibillion-dollar business filled with everything from self-made stars giving beauty advice to real-time gamers in multiple locations squaring off in the virtual realm.
- Chinese Electric Carmaker Kandi Explores North America Factory — Kandi Technologies Group, a lesser-known Chinese budget electric carmaker, is exploring establishing an electric and off-road vehicle plant in North America.
South China Morning Post
- Hong Kong Justice Secretary’s Standard Chartered mortgage is under scrutiny as US sanctions on city officials sever banking ties — Two of the seven Hong Kong officials sanctioned by the United States government have outstanding mortgages held with international banks, obligations which are coming under scrutiny as financial institutions move to sever ties with them to comply with US regulations.
- Hong Kong’s WTO threat against US ‘Made in China’ ruling puts city in uncharted waters — On April 24, 1986, when Hong Kong became an independent member of the global trading system in its own right, Michael Cartland stood up from his erstwhile British colleagues within the European Community’s delegation and walked over to take Hong Kong’s seat between Haiti and Hungary.
- New HK$33.7 billion gateway linking city to economic opportunities in Greater Bay Area opens next week — The much-delayed border checkpoint allowing closer ties between Hong Kong and the Greater Bay Area in mainland China is expected to finally open next week, but only for cargo because of the coronavirus.
- China keen to boost cooperation with Asean, top diplomat tells Singaporean leader — China is keen to work with its Southeast Asian neighbours to promote regional stability and boost the economy, Beijing’s top diplomat said on Thursday in Singapore.
- US to probe alleged dumping of Chinese trailer chassis and sub-assemblies — The US Commerce Department on Thursday said it had initiated an investigation into alleged dumping of Chinese-built chassis and sub-assemblies for trailers and truck semi-trailers into the United States market, and whether Chinese producers were receiving unfair subsidies.
- China-EU special summit to have trade focus, as US election looms — Chinese President Xi Jinping will hold a video summit with some European Union leaders in mid-September that is set to put trade in the spotlight just weeks before the US presidential election, the South China Morning Post has learned.
- India-China tension: New Delhi tightens curbs on visas, universities to limit Beijing’s influence — India is stepping up its curbs on Chinese activity in the country, adding extra scrutiny for visas and reviewing Beijing’s links with local universities, as relations between the two nations continue to nose-dive.
- Business critical: half of SMEs in Hong Kong give themselves six months at most without more support from government, survey finds — Nearly half of Hong Kong’s small and medium-sized enterprises do not expect to survive beyond the next six months in the face of the coronavirus, without any fresh government support.
Bloomberg
- Hong Kong Cruise Operator Halts Debt Payments — A cruise ship operator controlled by Malaysian tycoon Lim Kok Thay suspended all payments to creditors, triggering a 36% drop in the company’s shares and denting investor confidence in Lim’s wider business empire.
- Evictions Loom for Hong Kong Retailers Offered Little Relief — Retailers everywhere are feeling the pinch from the pandemic, though none quite as much as shop owners in Hong Kong like Don Leung.
- Tencent-backed Food Delivery Giant Meituan Posts Sales Beat — Meituan Dianping’s quarterly revenue beat analysts’ estimates as demand for takeout services bounced back from the disruptions caused by the coronovirus pandemic in China.
- Alibaba Investors Swap U.S. Shares for Hong Kong Amid Crackdown — Several of Alibaba Group Holding Ltd.’s biggest investors have converted billions of dollars in U.S. shares for Hong Kong stock in part to avoid potential U.S. sanctions and de-listings of major Chinese technology companies.
- Japan, India and Australia Are Said to Seek Supply Chain Pact — Japan, India and Australia are seeking to build stronger supply chains to counter China’s dominance as trade and geopolitical tensions escalate across the region, according to people in Tokyo and New Delhi with knowledge of the matter.
- China’s Yuan Gains Versus Dollar and Peers as Optimism Prevails — China’s yuan rallied beyond a key level versus the greenback for the first time in seven months while outperforming Asian peers, as investor confidence gets a boost on planned trade talks with the U.S.
- China Gears Up for Record-Breaking U.S. Crude Haul in September — U.S. oil exports to China are set to reach a record next month in a sign that Beijing is stepping up purchases to meet its commitments under a landmark trade deal reached earlier this year.
- Carlyle-Backed Adicon Is Said to Pick Banks for Hong Kong IPO — Adicon Clinical Laboratories Ltd., a Chinese lab operator backed by Carlyle Group Inc., has picked banks for its Hong Kong initial public offering, according to people familiar with the matter.
- Jack Ma’s Ant Said to Target $225 Billion Valuation in IPO — Billionaire Jack Ma’s Ant Group plans to file for dual listings in Hong Kong and Shanghai in the next few weeks, targeting a valuation of about $225 billion, people familiar with the matter said, in an effort to pull off the world’s largest initial public offering.
- China Divestment Will Hurt U.S. Companies and Investors, Too — The nation’s successful stimulus has been a critical ingredient in the global markets recovery.
- Life Is Getting Much Harder for Huawei — Life got a lot harder for Huawei this week, and the potential fallout from the U.S.-China tech war substantially more destructive.
- Xi’s Crusade on Food Waste Triggers Rare Anxiety Over Supplies — A new national campaign against food waste in China has sparked a rare bout of speculation over the government’s ability to safely feed its 1.4 billion citizens when faced with floods, epidemics, locusts and rising tensions with some of its biggest trading partners.
- China Just Killed Its $491 Billion Private Loan Market — By lowering the rate ceiling, policy makers are shutting down a key funding channel for small businesses.
- Alibaba Earnings Growth Doesn’t Spell E-Commerce Recovery — China’s biggest e-commerce company had only sedate growth at its core business. The real boom lay elsewhere.
- Crypto Assets of $50 Billion Moved From China in the Past Year — About $50 billion in cryptocurrency assets have left China in the past year, a possible indication that investors are dodging rules that limit how much capital they’re allowed to transfer from the nation, according to new research by blockchain forensics firm Chainalysis.
Reuters
- China promised to follow Phase One trade deal, Pompeo says — China has promised to follow the Phase One trade deal reached with the United States, Secretary of State Mike Pompeo said on Friday, despite a delay in talks to review progress on the deal.
- China’s Pinduoduo operating loss widens, U.S. shares set to slide — Chinese e-commerce company Pinduoduo reported a bigger second quarter operating loss as it grappled with pandemic-related costs, while sales also disappointed, sending its U.S.-listed shares down nearly 13% before Friday’s Wall Street bell.
- China Baowu Steel to take control of stainless steelmaker TISCO — China Baowu Steel Group, the country’s top steelmaker by output, has agreed to take a controlling stake in Taiyuan Iron & Steel (Group) Co Ltd (TISCO) in the latest consolidation of the country’s mammoth steel sector.
- China will step up efforts to make breakthroughs in key technologies: Xi — China will step up efforts to make breakthroughs in key technologies, President Xi Jinping said, according to state TV on Friday.
- Stymied at home, Korea’s mom and pop investors charge into China tech stocks — South Korean retail investors are stampeding into Chinese stocks in record numbers, ploughing hundreds of millions of dollars into a tech sector rush far removed from punishing taxes and regulations on investment at home.
- China govt-backed class actions take aim at corporate fraud – with limits — China wants its army of mom-and-pop investors to take corporate fraudsters to task with landmark class action lawsuits, but heavy government involvement means they are not likely to be as common as in other legal systems, lawyers and investors said.
- Drugmakers slash prices to win China’s bulk-buy contracts: state media — Drugmakers have slashed prices by up to 95% to win state contracts in China’s largest bidding round of its drug procurement programme, state media said on Thursday.
- China’s budget EV maker Kandi eyes setting up North American manufacturing plant — Chinese battery and electric car maker Kandi Technologies Group Inc said on Thursday it is actively exploring setting up an electric and off-road vehicle manufacturing plant in North America.
Xinhua
- China’s central bank injects liquidity into market — China’s central bank Friday pumped cash into the banking system via reverse repos to maintain liquidity.
- Guangdong carbon market closes higher — Carbon emissions allowances closed at 28.12 yuan (4.07 U.S. dollars) per tonne Friday, 0.07 percent up from Thursday, at China Emissions Exchange (Guangzhou), the largest local carbon market in China.
Other Publications
- AP: Bannon’s Chinese host an irritant to Communist Party — Guo Wengui left China in 2014 during an anti-corruption crackdown led by President Xi Jinping that ensnared people close to Guo, including a top intelligence official.
- Axios: China’s high-stakes vaccine moment — There’s a lot at stake for China in this urgent moment — but also beyond it. The country has invested heavily in R&D over the past two decades, aiming to become a scientific powerhouse on the global stage — especially in biotechnologies.
- Economist: Tencent Video battles iQiyi in China’s streaming wars — But the two big Chinese streaming platform may onc day settle into a cosy duopoly.
- Nikkei Asian Review: Fear of backlash pushes China to crack down on frothy markets — Chinese officials are clamping down on speculative stock and metal trading on fears that investor anger in the wake of any financial collapse would stoke discontent with the government.
