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.
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The Wall Street Journal
- Beware Chinese Property Firms in Tech’s Clothing — Investors are willing to pay a premium for KE Holdings, trying to disrupt the world’s largest housing market, but the fast-rising valuation of the Chinese real-estate platform could limit its further upside—especially if the real-estate market itself hiccups.
- Successful With Chinese Startups, Sequoia China Launches a Hedge Fund — Venture capitalist Neil Shen’s Sequoia Capital China is setting up a hedge-fund business to leverage its record of choosing winners in Chinese technology.
- Pandemic Tech Spending in China Lifts Alibaba’s Cloud — Spending on China-based cloud services hit a record high in the second quarter as Chinese companies increased the use of online business tools in the aftermath of the coronavirus pandemic.
- U.S. Government Sells a Hong Kong Compound for $332 Million — The U.S. government agreed to sell a compound for consulate staff in one of Hong Kong’s most exclusive residential areas to a local developer for nearly a third of a billion dollars.
- Hong Kong Wins More Listings of U.S.-Traded Chinese Firms — The tally of U.S.-listed Chinese companies securing alternative listings in Hong Kong grew, as stock in China’s largest restaurant group started trading in the city and a major hotel chain began taking orders for its own offering.
- Western Businesses in China Fret as Geopolitical Risks Rise — The slump in relations between Beijing and the West has become the biggest worry for U.S. and European businesses operating in China, a pair of business groups said this week.
- TikTok, U.S. Discuss Ways to Avoid Sale — ByteDance, the video-sharing app’s Chinese parent company, is in talks with officials over possible arrangements that would avert a full sale of TikTok’s U.S. operations, according to people familiar with the matter.
- Pactiv Evergreen Discloses Potential FCPA Violations in IPO Filing — Pactiv Evergreen, a packaging maker that is preparing for an initial public offering, said it identified practices in a China unit that may have violated the Foreign Corrupt Practices Act, a U.S. anti-bribery law.
The Financial Times
- India and China meet to defuse Himalayan border tensions — Analysts warn ahead of talks in Moscow that border situation is on a ‘knife’s edge’.
- China’s tech and finance groups flock to Singapore — City’s tech allure burnished as barriers go up against Chinese groups in US and India.
- Wall Street brushes off political tensions to dig deeper into China — BlackRock, Citigroup, Vanguard and JPMorgan Chase have struck a succession of deals.
- US companies defy Trump’s threats about ‘decoupling’ from China — Businesses ignore president as economy rebounds, says American Chamber of Commerce.
- IPOs: the incredible story of China’s bottled water billionaire — How a onetime hawker of Chinese medicine’s answer to Viagra has become one of the country’s richest individuals.
- Kim Jong Un’s dependence on China grows as virus hits economy — Beijing will ensure North Korea has continued access to food and fuel, analysts say.
- China’s Middle East strategy comes at a cost to the US — Beijing gains in oil and influence as successive presidents in Washington withdraw.
The New York Times
- Chinese Ambassador ‘Likes’ an X-Rated Video. Awkward. — China demanded that Twitter investigate, suggesting that Liu Xiaoming’s account had been compromised. But the account has a history of unusual likes.
Caixin
- Exclusive: Goldman Sachs to Buy Out Partner in China Securities Venture — U.S. investment bank will end up with full ownership of the firm after taking over Gao Hua Securities’ 49% stake.
- China Sells 51% More Excavators in First 8 Months Than a Year Ago — Demand for heavy construction equipment reflects China’s push to bolster the economy by increasing investment in infrastructure projects.
- As Washington Restricts Tech, State-Owned Giant Gets Into Cloud Computing — China Electronics Corp. will only use domestic technology amid fears U.S. sanctions could damage sector reliant on imported hardware.
- Pairing Up on 5G Saves China Telecom and Unicom 60 Billion Yuan — The two carriers combined have as many 5G stations as frontrunner China Mobile.
- Huawei to Equip Its Smartphones with Harmony Operating System Next Year — Huawei plans to incorporate its homegrown Harmony operating system into its smartphones next year, as the embattled Chinese tech giant seeks to combat U.S. restrictions on buying core components and software from American suppliers, Reuters reported Thursday, citing a company executive.
- Tesla Model 3 Maintains Its Position as China’s Most-Sold EV Model in August — Tesla is no longer a niche electric vehicle (EV) brand in China, as sales of its domestically-built Model 3 have continued to grow in the world’s largest auto market.
- Alibaba Still Top Dog in China’s Cloud Services Market As Beijing Ups Ante in ‘New Infrastructure’ Plan — In the second quarter of 2020, Alibaba maintained its spot as the biggest cloud services provider in China, where total spending on such services climbed to a record high of $4.3 billion due to growing demand amid the Covid-19 pandemic and government stimulus measures.
South China Morning Post
- Hang Lung picks up US government’s Hong Kong assets for HK$2.56 billion, a 20 per cent discount to market valuation — Hang Lung Properties, led by a billionaire developer who frequently calls for dialogue between the United States and China, has stepped in to pick up the US government’s residential real estate asset in Hong Kong with a discount, just as US-China relations deteriorated to their worst in decades.
- US-China relations: People’s Daily defends decision not to run ‘factually inaccurate’ article by American ambassador — Chinese state newspaper People’s Daily has defended its decision not to publish an article submitted last month by the US ambassador to China on the grounds it was “full of loopholes”.
- China tech firms embrace inward economic pivot, but some wary of ‘technological isolation’ — China’s pivot to domestic production of hi-tech products is gathering pace as the country looks to shake off dependence on foreign technology in light of decoupling threats from the United States.
- Hong Kong’s Ocean Park to tap ‘staycation’ market with new activities, doesn’t expect to be profitable in a year — Hong Kong’s Ocean Park will introduce camping, hiking and yoga experiences in October to tap the evolving “staycation” market amid the coronavirus crisis, its new chairman has said, adding that he does not expect the loss-making business to be profitable in a year.
- China debates cutting US access to drugs as hostilities spike — In recent weeks, as the United States has ramped up its attacks on Chinese tech firms and the threat of financial decoupling has grown, government advisers in Beijing have begun debating a so-called nuclear option: cutting US access to medicines.
- China focuses on modern, efficient logistics system as Beijing plots response to ‘grim and complicated’ outlook — In the face of a “grim and complicated situation at home and abroad”, China is in need of a modern and efficient logistics system to enable both “domestic circulation” and “international circulation”, the country’s top economic task force has concluded.
- China urges neighbours to back its data security ideas, not the US’ — Chinese Foreign Minister Wang Yi has called on Southeast Asian nations to join Beijing’s new data security initiative to counter what China sees as Washington’s bid to curb Chinese tech around the world.
Bloomberg
- Huawei Revs Up Android Substitute as U.S. Curbs Hit Phone Sales — Huawei Technologies Co. introduced a more polished and expansive iteration of its HarmonyOS, the operating system it’s developing to replace Android and help China’s largest technology company navigate increasingly strict U.S. sanctions. It also announced plans to offer the software for other phone makers to put on their devices.
- Hong Kong’s Sun Hung Kai Sees More Headwinds Amid Pandemic — Sun Hung Kai Properties Ltd., Hong Kong’s biggest developer, reported earnings that missed analysts’ estimates and said it sees more economic headwinds from the pandemic and rising U.S.-China tensions.
- Top China Memory Chipmaker Still Can’t Wean Itself Off U.S. — China’s top flash memory chipmaker sees no easy way to replace U.S. chipmaking gear, underscoring how a further crackdown on the supply of American technology will devastate the local semiconductor industry.
- Electric Vehicle Sales in Europe Outperform U.S., China and Combustion Engines — While the region by region picture is mixed, the global view shows plug-in vehicles driving the industry’s growth.
- Hong Kong Arrests 15 People Tied to Next Digital Stock Surge — Hong Kong’s police force said it arrested 15 people in connection to last month’s surge in shares of Next Digital Ltd., the media company owned by vocal government critic Jimmy Lai.
- ByteDance Is Said Poised to Miss U.S. Deadline for TikTok Sale — ByteDance Ltd. is increasingly likely to miss a Trump administration deadline for the sale of its TikTok U.S. operations after new Chinese regulations complicated negotiations with bidders Microsoft Corp. and Oracle Corp., according to people familiar with the matter.
- Yum China Has Hong Kong’s Weakest Debut in More Than a Year — Yum China Holdings Inc. recorded the worst stock debut in more than a year among billion-dollar listings in Hong Kong.
- Pullback in China Stocks Has Investors Fearing Deeper Slump — Two months into China’s fastest stock rally in years, and the days of making easy money are ending.
- China’s Record Dollar-Bond Flood Leaves Buyers Wanting More — Demand for dollar bonds from Chinese issuers soared to a fresh high as the nation’s economic recovery gained momentum.
- China Plans Strategic Boost to Vast State Commodity Reserves — China’s next five-year plan beginning in 2021 will call for increases to its mammoth state reserves of crude, strategic metals and farm goods, said officials familiar with the discussions.
- China Renaissance Raises $600 Million Fund to Back Startups — China Renaissance Holding Ltd. raised $600 million in the final closing of its seventh fund, becoming one of the few firms with China exposure to this year lock up a U.S.-dollar fund amid rising political tension.
- Citigroup Ramps Up Back-to-Office Push in Hong Kong — Citigroup Inc. will send an additional 20% more staff back to work from Hong Kong premises starting next week as the city’s coronavirus cases dropped from record highs.
- Dollar’s Dominance Gives U.S. Upper Hand in China Fight — China’s latest threat to bar companies with ties to U.S. officials who visit Taiwan points to a weakness for Beijing in its sanctions battle with Washington: It can control its own borders, but the greenback rules the world.
- Hedge Funds at Sohn Make Bullish Bets on Long-Term Asian Growth — Hedge fund gurus are betting on the longer-term growth in Asia, picking winners from India to Japan and China as they look past market volatility brought on by Covid-19.
- European Firms in China Urge Fairer Treatment, Return of Workers — European firms called on China to allow competition in the large sectors of the economy still effectively closed to foreign companies and de-politicize the business environment.
- Impossible Foods Awaits China Nod as Beyond Meat Muscles In — American fake-meat maker Impossible Foods Inc. is concerned about how long it might take to get a regulatory nod to enter China, as rival Beyond Meat Inc. deepens its push into the world’s biggest meat-consuming nation.
- WeChat Users Can’t Second-Guess Trump’s Authority, U.S. Says — A group of WeChat users trying to block a U.S. ban of the Chinese “SuperApp” can’t challenge President Donald Trump’s authority to make national security decisions, the U.S. said.
- Soybean Futures Cap Longest Rally in 40 Years on China Demand — Soybean futures capped the longest rally in 40 years after top buyer China stepped up purchases and the outlook for this year’s U.S. crop deteriorated.
- H&M Says It’s Not Working With Any Garment Factories in Xinjiang — Swedish retailer Hennes & Mauritz AB says it’s not working with any garment factories in the Xinjiang region of China.
Reuters
- India plans to restrict copper, aluminium imports with an eye on China: sources — India is planning to raise surveillance of copper and aluminium imports while developing policies to curb shipments from China and other Asian nations to protect domestic producers, said two government sources and an industry official.
- U.S. cancels visas of more than 1,000 Chinese nationals deemed security risks — The United States has revoked visas for more than 1,000 Chinese nationals under a presidential measure denying entry to students and researchers deemed security risks, the State Department said on Wednesday, a move China called a violation of human rights.
- China’s EV sales rise for second month as overall market continues recovery — New energy vehicle (NEV) sales in China surged 26% on year to 109,000 units in August for their second consecutive month of gain, a promising sign for automakers that have invested heavily in the world’s biggest market for electric vehicles (EVs).
- Reform hopes rise as China focuses on inward economic shift — Chinese reform advocates are hoping President Xi Jinping’s proposed new economic model, expected to be the centrepiece of a key conclave next month, is an opportunity to quicken changes to spur domestic demand and tackle structural woes.
- European companies fear ‘arbitrary punishment’ amid China-Europe tensions, business groups says — European companies in China are increasingly afraid of “arbitrary punishment” amid a more politicized business environment, a European business industry group said on Thursday.
- U.S. firms in China increasingly fear bilateral tensions will last for years: survey — U.S. companies in China are increasingly fretful that trade tensions between the world’s two biggest economies will drag out over years and nearly a third said their ability to retain staff had been affected, a survey showed.
Xinhua
- China to further support new business forms and models, boost new types of consumption — China will take policy steps to boost new types of consumption by supporting new business forms and models, with a view to promoting economic recovery. The meeting also outlined plans to advance medical education in an innovative way to build a talent pool for protecting people’s health.
- China’s Jiangsu issues guideline to bolster nighttime economy — East China’s Jiangsu Province has announced a new guideline to build “nighttime commercial blocks” in the culture and tourism sectors, according to the provincial department of culture and tourism.
- Hong Kong’s service sectors post sharp declines in incomes in Q2 — Hong Kong’s service sectors witnessed sharp declines in income during the second quarter of the year due to the impact of the COVID-19 epidemic.
- China’s courier sector estimated to handle over 75 bln parcels in 2020 — China’s courier sector is expected to handle over 75 billion parcels this year, the State Post Bureau said Thursday.
- China announces plan to develop logistics, manufacturing sectors — Chinese authorities have announced an action plan to drive integration and innovation of logistics and manufacturing sectors, and maintain the stability of industrial and supply chains.
- China’s integrated circuit imports soar as demand rebounds — China’s imports of integrated circuits rose at a robust rate during the first eight months of the year, buoyed by a rebound in market demand, a commerce official said Thursday.
- China continues to be Namibia’s leading export market — China maintained the top spot as the leading export market for Namibian products, representing 40.1 percent of the total exports, the latest Namibia Statistics Agency (NSA) data for July showed.
- Private Chinese rocket maker raises 1.2 billion yuan — Private Chinese rocket maker LandSpace has completed its series C+ funding worth 1.2 billion yuan (about 175 million U.S. dollars), the company announced on Wednesday.
- Chinese shares retreat Thursday — Chinese shares continued to retreat Thursday, with the benchmark Shanghai Composite Index edging down 0.61 percent to close at 3,234.82 points.
Other Publications
- Forbes: China Drug Maker’s Shares Plunge On AstraZeneca Vaccine “Pause” — Shares in China drug maker Shenzhen Kangtai Biological Products plunged by 16.6% at the Shenzhen Stock Exchange on Wednesday on word that AstraZeneca has temporarily halted testing of a COVID-19 vaccine due to an unexplained illness during its Phase III trial.
- AP: China auto sales up 6% in August, down 15.4% year-to-date — China’s car sales rose 6% in August over a year earlier as the industry’s biggest market recovered from the coronavirus pandemic, but purchases for the year to date were off more than 15%, an industry group reported Thursday.
- Foreign Affairs: The Long Shadow of Xinjiang — Anger grows in Muslim countries at China’s treatment of the Uighurs.
