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.
Want this emailed directly to your inbox? Send us an email at contact@thewirechina.com to sign up.
The Wall Street Journal
- New Zealand Halts Live Cattle Shipments After Vessel With 5,800 Cows Sinks — Dozens of sailors are missing and dead cattle are floating in the sea after a large cargo ship sinks in the East China Sea. Accident is drawing global attention to the business of trading and shipping livestock in giant vessels with multiple floors of penned animals.
- China Launches Experimental Spaceplane — China has claimed success in the secretive launch of an experimental spaceplane. The rocket-mounted reusable spacecraft was lofted into orbit from the Gobi Desert, the official Xinhua News Agency said.
- Courier Stocks Are a Sure Bet in a Pandemic, Right? Not So Fast — Another big investment in a Chinese courier company by Alibaba highlights the long road to industry consolidation—and profits—for investors, even in a pandemic.
The Financial Times
- Yum China/eating out: recipes for disappointment — A realignment of restaurant shares with diminished prospects in China is simmering.
- Apple commits to freedom of speech after criticism of China censorship — iPhone maker approves new policy after shareholder pressure.
- China raises scrutiny of financial holding groups ahead of Ant IPO — Cabinet passes rules requiring non-bank companies in sector to apply for licences.
- Laos faces sovereign default as forex reserves dip below $1bn — Finance ministry asks China for advice on restructuring its debt.
- A tale of two Hong Kongs: Beijing cracks down while the financial hub thrives — Ant Group’s IPO will take place against a backdrop of the dismantling of the territory’s pro-democracy movement.
The New York Times
- English Premier League Terminates China TV Agreement Amid Dispute — The world’s most-watched sports league said it had canceled its biggest overseas broadcast deal, worth over $700 million. It was already facing heavy costs from coronavirus disruption.
Caixin
- Yuan Could Remain Strong Against Dollar Until Well Into 2021, Analysts Say — China’s economic recovery, a generally weak dollar and a widening spread between the two countries’ interest rates have driven the yuan to appreciate since late May.
- Japanese Firm to Set Up First Fully Foreign-Owned Money Broker in China — Regulator approves Ueda Yagi Tanshi to provide intermediary services including facilitating fundraising and foreign exchange trading.
- Livestock Breeder’s 9-Day Stock Surge Spurs Hype Warning From Regulator — Money-losing Tianshan Animal becomes darling of small investors buying a cheap stock in hopes of profiting from new rules on Shenzhen’s ChiNext board.
- Post-Epidemic Demand Drives China Home Sales to Grow at Faster Clip — Sales by China’s 100 leading property developers rose 30.7% in August, the fifth straight monthly increase.
- Wuhan’s Troubled $18.5 Billion Chipmaking Project Isn’t as Special as Local Officials Claimed — City said the project had the mainland’s only machine able to make 7-nanometer chips. But a Shanghai company has about 10 of them, sources said.
- China’s Zijin One Step Closer to Losing $1 Billion-a-Year Gold Mine — Papua New Guinea court upholds government taking control of rich Porgera mine, though Zijin and Canadian partner Barrick vow to continue fight against decision.
- Four Chinese Execs Break Into Fortune’s 40 Under 40 Tech List — Four Chinese tech entrepreneurs have been ranked among the big names in Fortune’s 40 Under 40 list this year. The list honors the world’s most influential people under the age of 40 in various industries ranging from finance to entertainment.
- Tesla Challenger Nio Doubles Its August Deliveries to Record High — Chinese electric vehicle startup Nio said that its August sales grew to a record high, a day after its peer Li Auto reported record deliveries for the month, as demand for NEVs seems to be growing following the Covid-19 pandemic.
- Green Light for NGOs to Sue Polluting Companies — Shenzhen will become China’s first city to legally empower non-governmental organizations (NGOs) to file lawsuits for environmental violations.
South China Morning Post
- Ngozi Okonjo-Iweala’s US passport will not help her chances in WTO leadership race, Chinese trade experts say — Confirmation that the Nigerian candidate to lead the World Trade Organisation (WTO) holds an American passport does not work in her favour under the current geopolitical conditions, according to various Chinese trade experts.
- China may ditch US Treasuries as decoupling risk looms: Global Times — China could gradually cut its holdings of US Treasury securities by about 20 per cent to US$800 billion, the state-backed Global Times reported on Friday, as Beijing continues to weigh options to insulate itself from tensions with Washington.
- Hong Kong’s exit from recession is in the market, space, jobs and labour force of the Greater Bay Area, financial secretary says — The Greater Bay Area (GBA) of southern China can provide Hong Kong with the potential market and the growth driver for taking the city’s economy out of its worst recession in decades, and a grant by local authorities to funds start-ups is still up for grabs, said Financial Secretary Paul Chan Mo-po.
- SoftBank is said to consider bid for TikTok in India amid tech tensions between Beijing and New Delhi — SoftBank Group is exploring assembling a group of bidders for TikTok’s India assets and has been actively looking for local partners, according to people familiar with the matter.
- China pitches services trade fair as proof of ‘unwavering confidence in opening up’ to foreign firms — President Xi Jinping is expected to speak on Friday at the opening of a massive trade fair in Beijing – the first such large-scale event on Chinese soil since the coronavirus pandemic began – as the central government tries to project the image of opening up its market to foreign companies after bringing the outbreak under control.
- China’s rare earth exports to the US could fall by a third as global demand drops 5 per cent this year amid coronavirus, analysts say — The coronavirus pandemic is expected to result in a 5 per cent decline in global demand for rare earths this year, with China’s exports to the US falling anywhere between a quarter and a third, according to analysts.
- WeChat users want to see evidence behind Trump’s ban on app — WeChat users who sued President Donald Trump seeking to block his executive order banning the Chinese messaging app in the US on national security grounds asked to see the evidence supporting his decision.
- China’s yuan gains foothold in iron ore deals, could increase Chinese self-reliance, analysts say — Iron ore miners‘ and steel producers’ increasing use of the Chinese yuan will increase its internationalisation, reduce China’s vulnerability to any possible US financial sanctions, and help the domestic economy in line with the new “dual circulation” strategy.
- US, Taiwan seek ‘like-minded’ democracies to remake global supply chains and shift from reliance on China — The United States and Taiwan said on Friday they were seeking “like-minded” democracies to join a shift in global supply chains during the coronavirus pandemic, as Washington looks to accelerate a move away from economic reliance on China.
- US trade deficit with China wider than May 2016, when Donald Trump accused China of ‘greatest theft in history’ — The United States’ trade deficit with China has crept back up close to pre-coronavirus levels after narrowing when the outbreak battered the Chinese economy.
- Hong Kong’s next round of Covid-19 relief funding will be under HK$30 billion, aimed at hardest-hit sectors, source says — The next phase of Hong Kong’s coronavirus relief package is expected to involve less than HK$30 billion (US$3.9 billion) aimed at businesses most battered by the pandemic, leaving out sectors deemed to be less affected, such as retail and property management, the Post has learned.
- Huawei has had to make constant tweaks to products to cope with US bans, founder Ren Zhengfei says — Huawei Technologies’ founder Ren Zhengfei said that the Chinese telecoms giant has had to change a multitude of parts and tweak algorithms in its products to cope with Washington’s increased restrictions covering the export of US origin technology to the company.
Bloomberg
- Yum China Raises $2.2 Billion in Hong Kong Second Listing — Yum China Holdings Inc. has raised HK$17.3 billion ($2.2 billion) in its Hong Kong listing, joining the growing ranks of U.S.-listed Chinese firms selling shares in the financial hub.
- AbbVie Inks $2.9 Billion Cancer Deal With China’s I-Mab — U.S. drugmaker AbbVie Inc. and Chinese drug developer I-Mab agreed to collaborate on a cancer treatment in a deal that could be worth more than $2.9 billion.
- Xi Says Party Can’t Be Split From Masses in Rebuke to U.S. — Chinese President Xi Jinping said nothing will come between the Chinese people and the Communist Party that has governed them for more than 70 years, setting a defiant tone in the face of criticism from the U.S.
- China Allows for Stronger Yuan as Xi Turns Focus to Home — Beijing is allowing faster gains in the yuan as it seeks to cheapen imports and bolster weak consumer spending.
- London’s Housing Market Lures Hong Kongers Seeking Safe Haven — Wealthy Hong Kong residents seeking to escape the city’s political upheaval are flocking to London, offering a potential lift to the capital’s ailing luxury housing market.
- China Banks Plan $29 Billion in Bond Sales to Replenish Capital — Chinese banks are planning near record bond sales this month to replenish capital levels weakened by a surge in cheap loans to struggling businesses and sliding earnings.
- Chinese Magic Leap Rival Raises Funds From Kuaishou, Sequoia — Chinese augmented reality headset maker Nreal raised $40 million in a fundraising round led by Tencent Holdings Ltd.-backed video startup Kuaishou, bankrolling its expansion into the nascent field of projecting digital objects onto the real world.
- China Can’t Afford to Let Debt Limits Cause a Property Crash — The industry is too important to the economy for the government to squeeze credit to the point where it causes defaults.
- China Developers Face Harsh Liquidity Test as Curbs Loom — Chinese developers are facing the biggest liquidity test in more than four years, exacerbating challenges brought on by stringent funding restrictions and a prolonged profitability drop.
- Beijing Looks to Fashion Show and Bar Festival to Boost Spending — Chinese consumers have been hit hard by the pandemic, with many still uncomfortable about heading out to eat or shop. Beijing City is hoping that a fashion show, harvest festival or bar culture celebration will convince reluctant shoppers to open their wallets.
- Japan’s Ultimate Insider Faces Test Navigating U.S.-China Feud — A picture of U.S. President Donald Trump beams down from the wall of Yoshihide Suga’s office. The two men are standing side by side in the photo, a token of the long-time Japanese chief cabinet secretary’s global stature.
- China Semiconductor Threat Sparked a $100 Billion Chip Rout — Stocks sellers didn’t show much discretion Thursday as the major indexes tumbled. But the outsize chipmaker rout may have had its origin in a move by China.
- TikTok’s Latest Challenge Lies in a Patent-Friendly Texas Court — Add patent lawsuits to the list of headaches for China’s ByteDance Ltd. and its TikTok unit.
Reuters
- U.N. experts decry Hong Kong security law in open letter to China — U.N. human rights experts have told China a new security law for Hong Kong “infringes on certain fundamental rights” and voiced concerns that it could be used to prosecute political activists in the former British colony.
- US, Taiwan seek ‘like-minded’ democracies in supply chain shift from China — The United States and Taiwan said on Friday they were seeking “like-minded” democracies to join a shift in global supply chains during the coronavirus pandemic, as Washington looks to accelerate a move away from economic reliance on China.
- Malaysia won’t extradite Uighurs to China, minister says — Malaysia will not entertain requests to extradite ethnic Uighur refugees to China and will allow them safe passage to a third country should they feel their safety is at risk, a minister has said.
- China planning building spree in Tibet as India tensions rise, sources say — China is planning a more than 1 trillion yuan ($146 billion) push to accelerate infrastructure investment in Tibet, including new and previously announced projects, three sources familiar with the matter told Reuters.
- Indian and Chinese defense ministers set for meeting in Moscow over border row — The defense ministers of India and China are expected to hold talks in Moscow later on Friday, government officials said, the highest level face-to-face political contact since tensions flared along their disputed mountain border in May.
- China’s Sinopec awards ten-year gas tender to Qatargas: sources — China’s Sinopec Corp has awarded a 10-year tender to buy 1 million tonnes of liquefied natural gas annually from Qatargas, two industry sources with knowledge of the matter said on Friday.
- Exclusive: White House asks U.S. agencies to detail all China-related funding — The White House has asked U.S. government agencies for extensive details of any funding that seeks to counter China’s global influence and business practices, or supports Beijing, amid growing tensions between Washington and Beijing.
- China fines five financial firms $47 million for misconduct — China fined five financial institutions a total of 320 million yuan ($47 million) on Friday, as the country’s watchdog steps up a crackdown on financial misconduct to tame systematic risks.
- China’s auto sales to grow slightly in next five years, industry body predicts — China’s auto market, the world’s biggest, is expected to grow only slightly in the next five years, the country’s top auto industry body said on Friday.
- Exclusive: Taking power – Chinese firm to run Laos electric grid amid default warnings — The poor, small Southeast Asian country of Laos is set to cede majority control of its electric grid to a Chinese company, as it struggles to stave off a potential debt default, people with direct knowledge of the agreement said.
- Chinese teenager Yin wins third straight title after turning pro — Shanghai teenager Yin Ruoning won her third successive tournament at the start of her professional career with a one-stroke victory at the China LPGA’s Mitsubishi Heavy Industries Orient Masters on Friday.
- ‘Big probability’ of China, India defence chiefs meeting: Global Times editor — There is a “big probability” that the defence ministers of China and India will meet in Moscow amid renewed border tensions, the editor-in-chief of influential Chinese newspaper Global Times said on Friday.
- China’s international schools struggle as teachers, students remain stuck abroad — China’s international schools are reopening this month but will be short of key elements – teachers and pupils.
- China’s ByteDance buys UIPay to leverage e-payment capabilities at home — ByteDance, the owner of popular short-video app TikTok, said it has acquired a Chinese third-party payment service UIPay in a bid to leverage its domestic payment capability.
- China’s August exports seen keeping solid momentum; imports flat: Reuters poll — China’s exports likely posted a second month of solid gains in August as more of its trading partners relaxed coronavirus lockdowns and reopened their economies, while imports edged back into growth, a Reuters poll showed on Friday.
- Gamers left reeling as India pulls plug on Tencent’s PUBG in China spat — For tens of millions of Indian gamers, Tencent’s PlayerUnknown’s Battlegrounds (PUBG) videogame was a welcome distraction from the coronavirus pandemic.
- Tencent to engage with Indian authorities to ensure continued availability of apps — Chinese gaming and social media group Tencent Holdings Ltd said on Thursday it takes the protection of user privacy and data seriously, in response to India’s banning of Chinese apps.
- Factbox: Indo-China trade relations in focus as border face-off intensifies — India banned 118 more mostly Chinese apps on Wednesday, a move that could intensify simmering tensions between the two countries following a recent deadly skirmish at a disputed Himalayan border site, and raising concerns about the longer-term impact of $82 billion of trade.
- China’s energy giants tiptoe into renewables — China’s state energy producers outlined initiatives to develop hydrogen and wind power after their earnings slumped along with the oil price in the first half but their renewables projects could take years to materialise.
Xinhua
- Egypt, China’s Huawei discuss electricity network’s transformation to smart grid — Egypt and China’s tech giant Huawei on Thursday discussed the gradual transformation of Egypt’s electricity network to a smart grid, Egyptian Ministry of Electricity and Renewable Energy said.
- Chinese shares close lower Friday — Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down by 0.87 percent to close at 3,355.37 points.
Other Publications
- Coin Telegraph: Digital cold war? United States and China vie for blockchain supremacy — Two nations, two visions of the financial future: “The tech cold war is here — and the US isn’t winning,” wrote Ripple co-founder Chris Larsen in an opinion piece for The Hill recently.
- The Economist: Why is Wall Street expanding in China? — It may be a step on the way to China becoming a financial superpower.
- Axios: The fashion world looks to China — The fashion industry is reeling from the stunning blow dealt by a global pandemic that closed stores, largely ended international travel, and caused consumer demand for its products to shrivel. All paths to recovery lead through China.
