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
- How a Fortunate Few Airlines Profit in a Pandemic: Lots of Cargo — Of the world’s 30 largest airlines, just four reported profits for the April-June quarter, and not from carrying passengers. All are based in export-heavy South Korea or Taiwan, benefiting from strong global demand for Asia-made goods.
- China Fines Luckin Coffee and Dozens of Firms That Helped It Inflate Results — China’s top commerce regulator fined Luckin Coffee Inc. and dozens of companies that helped the coffee chain inflate its sales and expenses, wrapping up a monthslong investigation into the once-highflying company.
- Macau Casino Stocks Still Face Long Odds — Macau is open to Chinese gamblers again but it may have trouble bringing in high rollers.
- China’s Attack on ‘Unreliable Entities’ Is a Double-Edged Sword for Beijing — China has been slow to retaliate against U.S. commercial restrictions this year, an illustration of the fact that the options available to it aren’t great.
- Where Trump and Biden Stand on China — The hard line the U.S. has taken on China in recent years is likely to continue no matter whether President Trump or Democratic challenger Joe Biden wins the presidential election.
- U.S. Charges New York Police Officer With Acting as Agent for China — A federal indictment says New York police officer Baimadajie Angwang served as an intelligence asset to officials stationed at the Chinese consulate and used his position to provide them with access to senior members of the NYPD. He pleaded not guilty.
- TikTok’s Zero Hour: Haggling With Trump, Doubts in China and a Deal in Limbo — After months of maneuvering over the future of TikTok, it took last-minute phone calls to persuade President Trump to sign off in principle on the outlines of an agreement to keep the app operating in the U.S. Even that outcome—an M&A deal like no other—remains uncertain.
- Chinese Leaders Split Over Releasing Blacklist of U.S. Companies — Beijing has sped up development of a list that could be used to punish American technology firms, but some Chinese officials are mindful of moving too aggressively and say a decision should wait until after the U.S. election.
- Trump Administration Moves to Head Off Any Military Sales to Iran — The Trump administration outlined an array of new measures that are intended to preclude China and Russia from selling weapons to Iran and to block the shipment of goods that might be used for its missile programs.
- Auditors to Stop Inspecting Factories in China’s Xinjiang Despite Forced-Labor Concerns — Western companies that rely on products from China’s Xinjiang region have turned to supply-chain auditing firms amid concerns about the use of forced labor. But some auditing services are stopping their work in the region, pointing to a lack of access and transparency as a barrier to properly vetting labor practices.
- TikTok and Oracle Spar Over Ownership, Threatening Deal — The role of TikTok’s Chinese owner in a newly created company pairing the app with Oracle remains a point of contention despite signs of a final agreement over the weekend.
The Financial Times
- First TikTok then gaming as a crucible of US-China rivalry — Games make for splendid tech attack surfaces but there is a way to neutralise the fight.
- China ETFs: Ant implant — Exchange traded funds are just getting started in the country, and the potential market is huge.
- Asset managers set to launch China’s first Star 50 Index ETFs — The funds will track the top 50 companies on Shanghai’s answer to Nasdaq.
- What Trump’s TikTok deal learnt from China’s approach to apps — ‘When it comes to cyber-governance there are better models for the US to adopt’.
The New York Times
- China’s ‘Big Cannon’ Blasted Xi. Now He’s Been Jailed for 18 Years. — The Communist Party accused Ren Zhiqiang of being disloyal. His lengthy sentence underscores Xi Jinping’s crackdown on dissent among the elite.
- TikTok Deal Trips Over U.S.-China Power Struggle — Companies involved in a deal to resolve TikTok’s future publicly clashed over the arrangement, while President Trump threatened to block any deal that left the service in Chinese hands.
Caixin
- HKEX Prepares New Platform to Speed Up IPO Process — ‘FiNI’ platform would be a step toward IPO trading the first day after pricing rather than the fifth day, bringing Hong Kong market in line with rival bourses.
- STAR Market Warns Investors Against Collusion on IPO Pricing — Swancor New Materials gets 7,000 matching lowball bids and raises just half its target amount; panel of China’s new high-tech board cites evidence of investors following top institutions’ lead.
- New-Energy Vehicle Maker Raises $1.47 Billion Ahead of Rumored IPO — The round for WM Motor, thought to be the biggest ever for a Chinese electric car firm, was led by state-owned SAIC Motor and included a hodgepodge of state-backed funds.
- End of ‘Made in Hong Kong’ Brand Expected to Hurt Businesses, but Not Trade — New labeling rule mandates goods exported to the U.S. from the city must be designated as ‘Made in China’.
- Youth-Focused Budget Cosmetics Brand Eyes U.S. IPO — Perfect Diary was China’s No. 2 cosmetics-maker last September with a 2.7% market share.
- U.S.-China Shipping Rates Move Into Calmer Waters — After a sharp spike to record highs over the past three months, prices are now cooling following government action and the reintroduction of idled capacity.
- Tencent’s Navigation App Plans to Add Taxi-Hailing Feature to Compete with Baidu Maps, Alibaba-Backed Amap — Tencent plans to add a new aggregation service in its navigation app Tencent Maps, which will free users from jumping between apps to secure a ride during rush hour, according to a report published on Tencent’s own news portal.
- JD.com Healthcare Unit Plans Hong Kong IPO — E-commerce giant JD.com plans to spin off JD Health, its healthcare arm, and list it in Hong Kong, amid an ongoing migration by U.S.-traded Chinese companies to bourses closer to their home market.
- Hong Kong-Headquartered Plant-Based Food Producer Green Monday Closes $70 Million Funding Round — Plant-based food company Green Monday Holdings has raised $70 million in a new funding round led by U.S. investment firm TPG’s The Rise Fund and Hong Kong-based conglomerate Swire Pacific, in a sign that investors are betting on a future in which plant-based protein alternatives will grow in popularity as a new healthy lifestyle.
- China-focused IDG Capital in Market For New $550m Venture Fund — IDG Capital, a venture capital firm that focuses on Chinese businesses, is seeking to raise up to $550 million for a new VC fund, according to its latest filing with the US Securities and Exchange Commission.
South China Morning Post
- China’s Trump Card: Cryptocurrency and Its Game-Changing Role in Sino-US Trade — The US dollar will cease to be the de facto world currency as globalisation retreats, so China and the United States should work together to create a globally used cryptocurrency – a strategy that would weaken the dollar, encourage American exports and help balance trade between the two superpowers.
- Beijing woos global bond investors by making it easier to get money in and out of China — China says it will let foreign bond investors transfer money into and out of the country more freely, allowing them easier access to the onshore bond market, in Beijing’s latest move to deepen financial links with the outside world.
- Trump and Beijing face off again: Both don’t like ByteDance’s Oracle deal but for different reasons — US President Donald Trump and Beijing are at loggerheads over ByteDance’s deal with Oracle and Walmart for its US TikTok assets, with Trump wanting US control to safeguard national security and Beijing reluctant to approve a deal that looks like a US victory.
- US-China tech war: battle over semiconductors, Taiwan stokes trade feud — As voters in the United States prepare for the presidential election on November 3, the South China Morning Post is exploring the potential ramifications for China. The 12th part in the series looks at the importance of semiconductors in the deteriorating US-China relationship. Read the entire series here.
- China vs US: welcome to two new world orders as the UN turns 75 — Two visions of the international order are expected to be at the forefront on Tuesday when the leaders of the world’s two biggest economies address the United Nations General Assembly.
- Beijing’s EU envoy criticises unfriendly business environment for Chinese companies — Beijing’s top diplomat in Brussels on Monday accused the European Union of creating a regulatory environment that is hostile to Chinese companies, even as China and the EU try to finalise a major investment deal by the year’s end.
- China’s man in Washington: a veteran with the trust and training for turbulent US times — The sudden departure of the US ambassador to China Terry Branstad has prompted questions about the fate of his Chinese counterpart in Washington, Cui Tiankai.
- Hong Kong to widen Bond Connect, add products to direct more global capital towards China’s fixed-income products — Hong Kong, the largest offshore trading centre for the renminbi, plans to strengthen its role as mainland China’s gateway to the global capital markets, as it expands its transborder investment channel to augment the country’s bond market and attract overseas funds.
- US-China trade war casts long shadow over WTO leadership race — As the race for leadership of the World Trade Organisation (WTO) moves into its second phase, candidates are walking on eggshells, with the US-China trade war casting a long shadow over the highly-politicised proceedings.
- Coronavirus supply chain disruptions easing for companies in south China — Manufacturing supply chains in southern China have improved significantly since March when the country was still grappling with the coronavirus crisis, but companies are still reporting disruptions in terms of transport and logistics, a survey on Tuesday showed.
- China is behind billion dollar debt restructure for Angola, analysts say — China is believed to be the mystery lender behind a reprofiling of Angola’s loans, helping the Southern African country unlock US$1 billion and a further US$765 million from the International Monetary Fund (IMF).
Bloomberg
- Singapore, Hong Kong Top Asia Destinations for Suspect Funds — Singapore and Hong Kong were the biggest destinations for suspect transactions in Asia, even though the financial centers saw just a small fraction of an estimated $2 trillion in potentially dodgy money flows revealed in a report.
- ‘Homecoming’ Hong Kong Second Listings Raise Another $2 Billion — Chinese courier service giant ZTO Express Cayman Inc. and drug developer Zai Lab Ltd. raised a combined HK$15.7 billion ($2 billion) in their second listings in Hong Kong, according to people familiar with the matter, adding to the flurry of share sales in the financial hub by U.S.-traded firms from the Asian nation.
- China Sets Weaker Yuan Fix in First Sign Record Rally May Slow — China set its daily yuan fixing at a weaker-than-expected level, the first signal that policy makers may want to rein in this quarter’s rapid appreciation.
- Credit Suisse, UBS Fight for China Bankers in Talent War — A battle for financial talent is intensifying in China, one of the few places worldwide where global banks are firmly in hiring mode.
- Carlyle Co-Founder Says U.S.-China Relations at Lowest Since ‘89 — Carlyle Group Inc. co-founder David Rubenstein said U.S.-China relations are at their lowest since the 1989 Tiananmen crackdown, but are likely to improve after the U.S. elections.
- Hong Kong Extends Social Distancing Measures for Another Week — Hong Kong will extend virus-related social distancing measures for another week amid persisting signs of hidden Covid-19 transmission, Chief Executive Carrie Lam said.
- China Luxury Spend Seen to Jump 30% This Year in Industry Relief — Chinese demand for luxury goods is projected to grow as much as 30% this year as high-income mainland shoppers drive the country’s post-pandemic economic rebound.
- Chinese Hotel Giant Eyes Foreign Deals Amid Global Weakness — China’s biggest hotel operator is looking to acquire foreign hospitality chains as the rapid recovery of the country’s domestic travel market puts it at an advantage to ailing global peers.
- Regulating TikTok Will Be Hard Even If It’s Based in America — What principles should guide U.S. policy toward Chinese technology?
- Coal’s Last Refuge Tumbles With China’s Renewable Energy Plan — Beijing’s latest energy policy will sharply increase wind and solar, but can’t save the climate on its own.
- U.S. Keeps Investing in China as Value Investing Dies — Government data vastly underestimate Americans’ exposure to Chinese stocks.
- China’s Carbon Market Plan May Let Coal Plants Keep Polluting — In a rush to start the world’s biggest carbon market, China is looking to have a more lax approach to emissions rather than cut greenhouse gases in the short-term.
- Xi Push to End Poverty Helps Anchor Party Support in Rural China — Almost a year ago, 26-year-old Luoba Nijinmo moved her family into a brand-new housing estate called “Gratitude Community” in southwest China — her last step to being officially lifted out of poverty.
- Oracle Deal for TikTok in Doubt After Trump, China Remarks — Doubts emerged Monday about Oracle Corp.’s deal to take over TikTok as President Donald Trump said he may still renege on his approval and the Chinese government signaled reluctance through state-owned media.
- Global Covid Vaccine Plan Moves Ahead, Without China for Now — An $18 billion initiative to deploy future Covid-19 vaccines around the world is moving into the next phase with 156 countries and regions taking part in the program, but China joining the U.S. on the sidelines, at least for now.
Reuters
- Biden adviser says unrealistic to “fully decouple” from China — Democrat Joe Biden would seek to reset the terms of economic and technology ties with China while combating unfair practices and aggressively enforcing U.S. trade laws, a senior foreign policy adviser to the former U.S. vice president said on Tuesday.
- China to step up financial support for supply chains — China will step up support for key firms engaged in supply chains in advanced manufacturing, services and trade sectors, the central bank and other state agencies said in guidelines issued on Tuesday, amid a deepening rift with the United States.
- China’s consumption will take time to return to normal growth: Premier Li — It will take time for Chinese consumption to return to normal growth, Premier Li Keqiang said on Tuesday.
- Exclusive: China sharply expands mass labor program in Tibet — China is pushing growing numbers of Tibetan rural laborers off the land and into recently built military-style training centers where they are turned into factory workers, mirroring a program in the western Xinjiang region that rights groups have branded coercive labor.
- Coronavirus dampens seasonal cheer in China’s Christmas production hub — At the Yiwu Fuye Christmas factory in eastern China, workers are stitching and testing out Santa Claus toys, checking they play a Christmas tune at the press of a button.
- Rio Tinto to develop bonded area operations for blending iron ore at Dalian port — Anglo-Australian miner Rio Tinto has signed a pact to jointly develop its first bonded area operations to blend iron ore in China’s port of Dalian, the company said on Tuesday, as it moves to widen offerings for customers across Asia.
- China should raise costs to deter speculative foreign money – People’s Daily — China should raise the costs of short-term, cross-border money flows to buffer its financial markets from speculative capital, said Zhu Min, head of the National Institute of Financial Research at Tsinghua University, as cited by the People’s Daily.
- Beijing unlikely to approve Oracle, Walmart’s TikTok deal: Global Times — China is unlikely to approve an “unfair” deal Oracle Corp and Walmart Inc said they have struck with ByteDance over the future of video-streaming app TikTok, the state-backed Global Times newspaper said in an editorial.
- China amends customs supervision on crude oil imports to improve efficiency — Chinese customs said on Tuesday it will amend the way it supervises crude oil imports as part of a broader effort to boost efficiency, allowing cargoes to clear customs before quality inspections have been finalised.
- Chinese tech giant Tencent’s WeChat app sees downloads surge before U.S. ban — Chinese tech giant Tencent’s WeChat messaging app has seen a surge in downloads in the United States since Friday after Washington confirmed it would push ahead with a planned ban of the app, data showed on Tuesday.
- China to promise ‘more’ in new climate pledges, government advisor says — China will promise to “do more” to reduce greenhouse gas emissions in new pledges to be delivered to the United Nations before the end of this year, Xie Zhenhua, the country’s top climate change advisor, said on Tuesday.
- Genscript Biotech says Chinese customs raided offices, shares at 20-month low — Genscript Biotech Corp said customs raided its offices in China in connection with an investigation into suspected violations of import and export regulations, sending the firms’ shares plummeting to a 20-month low.
- Sequoia Capital China raising $2.2 billion in new yuan fund, say sources — Investor Sequoia Capital China is raising at least 15 billion yuan ($2.2 billion) in a new yuan-denominated fund, people with knowledge of the matter said, building a war chest as the world’s second-largest economy recovers from a virus-induced slump.
- China’s property developers seek to dodge new rules with shift of debt off balance sheets — China is tackling unbridled borrowing in the real estate development sector anew with caps for debt ratios. But sources at developers say a rush to get around the rules by moving more debt off balance sheets is on.
Xinhua
- Chinese economy makes relatively swift recovery: ECB article — The Chinese economy made a relatively swift recovery after bottoming out in the first quarter of the year due to the COVID-19 pandemic, according to an article published by the European Central Bank (ECB) on Monday.
- U.S.-listed Chinese firms post mixed performance — U.S.-listed Chinese companies saw mixed trading on Monday, with five of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day in losses and another five on the rise.
- Chinese shares close lower Tuesday — Chinese stocks closed lower Tuesday, with the benchmark Shanghai Composite Index down 1.29 percent, at 3,274.3 points.
Other Publications
- POLITICO: How Trump’s Shot at WeChat Could Hit Americans Instead — The president frames his ban on the app as a national-security issue. Maybe. But it also curtails Americans’ free rein to use the network they invented.
- Nikkei Asian Review: China’s subsidies to fast-track development of fuel cell vehicles — The Chinese government said Monday it will roll out subsidies to companies developing core fuel cell technology in a bid to boost the country’s competitive advantage in producing the hydrogen-propelled autos.
- Nikkei Asian Review: US uses defense diplomacy to woo Bangladesh away from China — The U.S. has stepped up efforts to entice Bangladesh into buying more of its military hardware in recent weeks, as it hopes to win over an “emerging” ally in South Asia, where China has been expanding its economic influence.