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
- Copper Hits Two-Year High on China Rebound — Strong manufacturing data from China and a weakening U.S. dollar pushed copper prices to their highest level since June 2018.
- The Delicate Task of Dealing With China’s Most Debt-Burdened Property Giants — Reducing leverage may be good for some Chinese property developers, but cash-starved local governments are desperately dependent on their land purchases.
- China’s Truck Makers Keep on Truckin’ — This hasn’t been the best year for many vendors of discretionary consumer goods. But truck makers in China are pulling in a record haul.
- China’s Central Bank Endorses New Reference Rates for Financial Markets — China’s central bank said Monday that it would make interbank repo rates by depository institutions a key reference for setting prices in the nation’s financial market, in its latest move toward interest-rate reform.
The Financial Times
- Medical equipment boost for Chinese exports could be shortlived — More competition from overseas and risk of recession pose threat to ‘health silk road’ ambitions.
- WeChat ban deals another blow to America’s ethnic Chinese — A lawsuit challenging the order argues it breaches rights to freedom of expression, religion and due process.
- Why Trump no longer talks about the trade deficit with China — President has shifted his language after failing to achieve a core 2016 campaign promise.
- China’s clampdown on use of Mongolian in schools sparks protests — Documents reveal plan by government of Inner Mongolia to use Chinese-language textbooks.
- Hong Kong Covid-19 mass testing sows distrust among activists — Pro-democracy campaigners stoke fears DNA samples will be sent to Beijing.
- Trump ban on Chinese drone parts risks worsening wildfires — Only a quarter of possible controlled burning has been carried out because of order.
The New York Times
- TikTok Deal Faces Complications as U.S. and China Ratchet Up Tit-for-Tat — China’s new export rules, which could delay or scuttle a sale of TikTok, have further turned giant companies into pawns in a geopolitical struggle.
- India and China Face Off Again at Border as Troops Move In — After months of efforts to defuse tensions, soldiers rushed to shout in each others’ faces again. Though the confrontation wasn’t bloody, where it happened was significant.
- China Detains Australian Host for Chinese State TV — The detention of Cheng Lei, who has long appeared on business programs for China’s international broadcaster, could add to tensions between Australia and China.
- Trump’s Tariffs? Coronavirus? China’s Exports Are Surging Anyway — Chinese companies account for a greater share of goods sold abroad, showing their tremendous strength despite mounting challenges.
Caixin
- Exclusive: Embattled Investment Firm CMIG Replaces Top Brass as It Cleans House — China Minsheng Investment Group has appointed a new team of senior executives as it seeks to recover from a budget busting debt binge
- Standard Chartered Creates New CEO Position for China’s Greater Bay Area — Veteran Anthony Lin will assume the position to help the bank ‘capture the significant opportunities’ in the region
- Chinese Bottled Water Giant Nongfu Spring Prices $1.08 Billion HK IPO — Flotation will value China’s largest packaged water supplier at $31 billion with share trading set to start Sept. 8 even as pandemic hurt profit and revenue earlier this year
- Bank of China Posts Record Profit Drop on Large Bad Loan Provision — State-owned lender almost doubles funds set aside for asset impairment to $9.69 billion in the aftermath of the pandemic and projects further increase in credit risks in the second half
- Chinese Short Video Platform Kuaishou Increases Livestreaming E-Commerce Investment with Massive Incubation Plan — TikTok rival Kuaishou is upping the ante in plans to boost its booming e-commerce business, as a growing number of people cash in on livestreaming to sell products on the Chinese short video platform.
- Bilibili Buys Stake in Film Maker As It Strives to Broaden Content Offering — Nasdaq-listed video streaming platform Bilibili is making an equity investment in Hong Kong-traded film production company Huanxi Media in an attempt to enrich its content offering beyond anime, comics and games.
South China Morning Post
- Australia does not know why journalist Cheng Lei was detained in China, minister says — Australia’s trade minister Simon Birmingham said Canberra did not know why Chinese authorities had detained Australian citizen Cheng Lei, as he warned that the risks for Australian businesses engaged with China had changed.
- China’s small factory activity strengthened in August thanks to rise in production, new orders, export sales — China’s manufacturing sector showed further recovery in August, with production, new orders and also export sales improving in a new survey released on Tuesday.
- ByteDance founder Zhang Yiming reconsiders TikTok options after new China rules — As US President Donald Trump threatened to ban the operations of hit short video app TikTok in America, Chinese parent ByteDance’s choices seemed to be limited to selling the business for US$20 billion to US$30 billion or leaving empty-handed.
- Coronavirus: China’s migrant workers determined to stay in cities as most see ‘no hope’ in rural hometowns — Most of China’s migrant workers will stay in cities despite the impact of the Covid-19 pandemic on jobs and incomes because there are fewer opportunities in their economically-backward hometowns, a new report has found.
- Widodo, Xi look to strengthen China-Indonesia ties in trade and tackling coronavirus — Joko Widodo has told Xi Jinping that Jakarta is hoping for a stronger relationship with Beijing, in a call the Indonesian president made after his Chinese counterpart sent a letter marking the 70th anniversary of ties between the two nations.
- China’s sovereign digital currency plans must be globally compatible to internationalise the yuan, analysts say — China is set to expand the testing of its new sovereign digital currency later this year or in early 2021, but analysts say the design of its technological platform needs to be made compatible with those of other countries if the digital yuan is to play a role in international transactions.
- China-US relations: Donald Trump planning more curbs on students, says Mike Pompeo — US Secretary of State Mike Pompeo has said that Donald Trump is weighing more restrictions on Chinese students in the US in the “coming weeks and months”.
- Coronavirus: Hong Kong retail sales drop 23.1 per cent but supermarkets buck trend again — Hong Kong’s retail sales shrank 23.1 per cent year on year in July, marking the 18th straight month of contraction, as the third wave of coronavirus infections continued to pummel the struggling sector.
- Meituan Dianping steps up recycling drive amid deluge of plastic waste in China — Meituan Dianping, China’s leading e-commerce platform for services, is ratcheting up efforts to build a green supply chain for packaging, as the world’s second-largest economy combats a growing plastic waste problem.
- China must reform financial markets to ward off US financial sanctions, think tank urges — China should make its own financial markets big enough and open enough to foil any attempt by the United States to decouple financially, according to a semi-official Chinese research group.
Bloomberg
- Oil Climbs Near $43 a Barrel With Renewed Support From Dollar — Oil rose to trade near $43 a barrel in New York, buoyed by a weaker dollar and better-than-expected economic data from China.
- Merkel’s Top Diplomat Warns on Chinese ‘Threats’ Over Taiwan — Chancellor Angela Merkel’s top diplomat warned his Chinese counterpart against “threats” toward European allies, as the top official from Beijing reinforced his accusation that a Czech lawmaker’s visit to Taiwan had crossed a line.
- Geely Auto Moves Closer to Potential $2.9 Billion China Listing — Geely Automobile Holdings Ltd., the Chinese carmaker controlled by Volvo Cars owner Li Shufu, may raise as much as 20 billion yuan ($2.9 billion) via a listing on Shanghai’s Star board.
- Europe Isn’t Immune from U.S.-China Trade Tensions — Tech companies could suffer collateral damage.
- U.S. Opens Economic Front in Campaign to Expand Ties With Taiwan — The U.S.’s decision to launch economic talks with Taiwan opened a new front in Taipei’s effort to push back against increased pressure from Beijing.
- China Broker Pressured H.K. Staff on Virus Test, Union Says — China’s Founder Securities Co. drew criticism from a labor union for pressuring its staff in Hong Kong to participate in the government’s campaign to get everyone in the financial hub tested for the coronavirus.
- China’s Charm Offensive Undermined in Beijing — China is proving to be its own worst enemy in countering the barrage of criticism coming from the U.S. campaign trail.
- Yuan’s Jump to One-Year High Tests China’s Tolerance for Gains — A surge in China’s yuan to a more than one-year high is testing the central bank’s appetite for currency strength.
- Carlyle Buys Stake in Chinese Health-Care Firm for $260 Million — Carlyle Group agreed to invest 1.78 billion yuan ($260 million) to buy a minority stake in Shenzhen Salubris Pharmaceutical Co., bringing its announced investment in health-care companies in Asia this year to almost $1 billion.
- Japan, Australia and India to Launch Supply Chain Initiative — The trade ministers of Japan, India and Australia agreed Tuesday to work toward achieving supply chain resilience in the Indo-Pacific region, following reports that the three nations are looking to work together to counter China’s dominance on trade.
- Hong Kong Retail Woes Continued in July Amid Third Virus Wave — Hong Kong’s retailers came under renewed pressure in July as a third wave of coronavirus infections led the government to introduce renewed social-distancing measures, further stifling tourism, shopping and eating out.
- China’s Push to Limit Mongolian Language Sparks Protests — Chinese government efforts to replace the language of instruction in schools in Inner Mongolia appear to have backfired, prompting parents and students to boycott classes and take to the streets in protest, videos from human rights activists showed.
- Macau Awaits Travel Recovery as August Gaming Revenue Falls 95% — Macau casinos suffered further pain as gaming revenue dropped more than 90% for the fifth straight month, with executives awaiting a recovery after China’s gradual relaxation of travel and visa curbs.
- How China Made the Netherlands Question Its Free-Market Beliefs — When the Dutch government invested in home-grown chipmaker Smart Photonics this summer, it was a departure for a country with a hands-off approach to business.
- Hong Kong’s Lam Urges Virus Tests Despite Public Skepticism — Hong Kong Chief Executive Carrie Lam encouraged the city’s more than 7 million citizens to get tested for Covid-19 as part of a new mass testing drive, despite low official registrations.
- Iran Crisis Countdown Hits Pause as Diplomacy Kicks Into Gear — With U.S. elections just two months away, China, Europe and Russia will play for time in an attempt to prevent the Trump administration’s maximum-pressure campaign on Iran from descending into even deeper conflict.
- Evergrande Shares Fall After Debt Continues to Pile Up — China Evergrande Group’s shares fell the most in two weeks after the company said its debt load increased from the end of last year, falling short on a pledge to remake itself as a leaner company.
- Former Co-Head of Hong Kong IPO Appraisal Joins Crypto Company — Lin Shi, a former Hong Kong stock exchange executive who helped to vet initial public offerings, has joined a cryptocurrency platform that is seeking to provide securitized token listings.
- You Think FAANG Is Distorting the S&P? Try Alibaba, Tencent, Meituan — Alibaba, Tencent and Meituan dominate Chinese stock indexes. Investors are scrambling to diversify.
- U.S. Underscores Taiwan Arms Pledge Through Declassified Cables — The U.S. released Reagan-era diplomatic cables on Monday that underscore Washington’s commitment to Taiwan’s future being determined free of coercion from China.
- Veolia Pounces on Rival to Create Waste Giant to Counter China — Veolia Environnement SA moved to buy its biggest rival in a bid to create a global waste and water giant and stay ahead of looming competition from China.
Reuters
- China-backed development bank AIIB appoints veteran European as first chief economist — The China-backed Asian Infrastructure Investment Bank (AIIB) appointed veteran Swedish economist Erik Berglof as its first chief economist on Tuesday.
- China suspends barley imports from Australia’s largest grain exporter — China said on Tuesday it had suspended barley imports from Australia’s largest grain exporter, a ruling that threatens to inflame bilateral tensions.
- Special Report: Pentagon’s latest salvo against China’s growing might – Cold War bombers — On July 21, two U.S Air Force B-1B bombers took off from Guam and headed west over the Pacific Ocean to the hotly contested South China Sea. The sleek jets made a low-level pass over the aircraft carrier USS Ronald Reagan and its escorting fleet, which was exercising nearby in the Philippines Sea, according to images released by the U.S. military.
- Geely Auto seeks $3 billion Shanghai STAR Market listing — Geely Automobile Holdings plans to raise 20 billion yuan ($2.93 billion) from a public share sale on Shanghai’s Nasdaq-style STAR Market to invest in new car models and technologies, exchange filings showed on Tuesday.
- Scientists see downsides to top COVID-19 vaccines from Russia, China — High-profile COVID-19 vaccines developed in Russia and China share a potential shortcoming: They are based on a common cold virus that many people have been exposed to, potentially limiting their effectiveness, some experts say.
- China online education firm Yuanfudao to raise $1.2 billion to nearly double valuation: sources — Chinese online education platform Yuanfudao is set to raise $1.2 billion in a new funding round which will value it at about $13 billion, according to two people with direct knowledge of the issue.
- Geely and GM venture both wade into China’s pickup truck competition — Zhejiang Geely Holding Group as well as General Motors Co’s Chinese venture are planning to launch their first pickup truck models, intensifying competition in a segment dominated by Great Wall Motor .
- Stocks of TikTok U.S. suitors hit by fears of China block — Shares of TikTok U.S. suitors Microsoft Corp, Oracle Corp and Walmart Inc fell on Monday after China’s move to restrict some technology exports spurred worries Beijing might block any deal for the video app’s U.S. assets.
Xinhua
- China’s int’l trade fair to help resist global economic shrinking: Egyptian expert — China International Fair for Trade in Services (CIFTIS) to be held in Beijing in early September is a good move to help resist the global economic recession amid the COVID-19 pandemic, an Egyptian expert has said.
- World CFOs more upbeat on China’s economy than that of U.S.: survey — The world’s leading chief financial officers struck a more positive tone for China’s economic outlook than that for the United States, the first time in the history of the corps of executives, the Q3 CNBC Global CFO Council Survey has showed.
- Inner Mongolia pledges 400 mln yuan to promote dairy industry — North China’s Inner Mongolia Autonomous Region will invest 400 million yuan (about 58.7 million U.S. dollars) to promote the development of the dairy industry, according to the regional department of agriculture and animal husbandry.
- Tokyo stocks end flat as trading house stocks’ rise offset by profit-taking, China’s PMI data adds support — Tokyo stocks ended essentially flat Tuesday as trading house-linked stocks finding favor was offset by selling for gains although sentiment was underpinned by solid manufacturing data from China.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Tuesday, according to the Ministry of Agriculture and Rural Affairs.
Other Publications
- Forbes: A Mindset Shift In China For The Future Of Fashion And Its Supply Chain Shock — After Covid-19, we’re coming to a final setback in how we’re thinking of producing, using and disposing of apparel. Fashion is one of the key contributors to global pollution and waste, where it has now come to a dead end.
- Business Insider: Chinese And Saudi Oil Giants Book Mammoth Losses — U.S. shale producers can take some comfort in the fact that their counterparts elsewhere have not been doing much better. Saudi and Chinese oil and gas giants have been booking massive losses, too, proving that Covid-19 is a pandemic of equal opportunity.
- POLITICO: In China, the ‘Great Firewall’ Is Changing a Generation — Fang’s decision to have her diary published internationally unleashed a backlash in China—and not from the Communist Party, but from Chinese citizens online. The critics, mostly young people, accused Fang of failing to highlight the Chinese government’s success in containing the outbreak, and of being a tool for “anti-China forces.”
- Nikkei Asian Review: Thailand shelves China submarine deal after public backlash — Thai Prime Minister Prayuth Chan-ocha has delayed the purchase of China-made military submarines for a year after public opposition sparked a reversal of a controversial funding decision.
- Axios: China is censoring Hollywood’s imagination — By censoring American blockbusters, Beijing believes it can prevent American and global audiences from imagining the Chinese Communist Party as a major threat, and from viewing the targets of China’s repression as victims worthy of sympathy.
- The Diplomat: Cracks in China-Europe Relations Run Deep — Looking at Europe-China ties since the 1990s it becomes clear that the recent tension is driven by deeper structural factors — and is therefore likely to stick.
