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
- Behind China’s Decade of European Deals, State Investors Evade Notice — China’s government has been deeply involved—often from behind the scenes—in a wave of acquisitions across Europe over the past decade.
- China Greenlights Another Covid-19 Vaccine for Human Testing — A Chinese drugmaker, which is collaborating with AstraZeneca PLC on production of a coronavirus vaccine, has won approval from Chinese regulators to start testing one of its own vaccine candidates at home.
- China’s Economic Rebound Picks Up Pace — A rebound in global demand and the Chinese government’s supportive measures bolstered factory activity and helped push sentiment in the service sector to its highest level in nearly seven years.
- China Needs to Answer for Its North Korea Policy — Beijing has long avoided paying any kind of price for its acquiescence to the Kim regime’s games.
- How China Is Taking Over International Organizations, One Vote at a Time — China’s decade-long campaign to secure more clout at the United Nations is now helping shield Beijing from international scrutiny.
The Financial Times
- Amundi boss targets China’s wealth management boom — Europe’s largest asset manager has received regulatory permission to begin operating a joint venture.
- Why Washington’s clampdown on Chinese chipmakers could backfire — Administration not above provoking outrage from successful domestic sectors in name of national security.
- Renminbi set for best quarter since global financial crisis — Preliminary US-China deal and higher bond yields attract investors.
- The perils of life in Beijing’s backyard — Two enlightening new books describe the long shadow China casts over its southern neighbours.
- Pompeo to visit Vatican after criticising deal over Chinese bishops — Official visit by secretary of state could embroil Catholic church in growing tensions between US and China.
- Evergrande: the property group that has the market on edge — China’s biggest developer is fighting to convince investors it can cut its debts.
- Business must keep pushing for freedom in Hong Kong — Companies should find ways to reduce their vulnerability to Beijing.
- How likely is a US-Taiwan trade deal? — President Tsai Ing-wen takes risk in seeking to deepen ties with US and reduce reliance on China.
The New York Times
- Trump-Biden Debate Prompts Shock, Despair and, in China, Glee — The chaos of the event has left allies and rivals alike questioning the state of American democracy and the country’s place on the global stage.
Caixin
- China to Set New Rules to Keep ‘Too Big to Fail’ Banks From Bringing Down Financial System — Long-anticipated draft rules require systemically important banks to increase ability to absorb losses.
- As Debt Repayments Loom, China Developers Head Back to the Trough — Builders sold at least $47.6 billion of bonds in the third quarter, a record for the period, data from research institute show.
- China Evergrande Avoids $19 Billion Payback to Strategic Investors — Nation’s largest developer by assets dodges imminent cash crunch by negotiating a reprieve with investors including Suning Appliance, Amer International, Grandland Holdings and Anxin Trust.
- Hong Kong Exchange Chief to Step Down Early at Year-End — Charles Li, former oilfield worker, journalist, lawyer and investment banker, led dramatic overhaul that made HKEX the destination of giant ‘homecoming’ IPOs.
- China’s Robust Manufacturing Recovery Loses a Step, Caixin PMI Shows — Index slips to 53 in September despite new business expanding at the fastest pace since January 2011.
- China Moves to Normalize Monetary Policy Amid Stabilizing Economy — People’s Bank of China to make policy more precise and targeted as the ‘economy recovers steadily’ but will continue favoring manufacturing and small businesses.
- In Depth: REITs Come Rumbling Down China’s Rails — National rail operator confirms plans to launch real estate investment trusts to lighten its debt load, offering outsiders a chance to invest in three of its popular lines.
- As It Pushes Homegrown Satellite Navigation System, Government Also Starts Pushing Products — China Satellite Navigation Office releases list of 24 non-military items equipped with BeiDou that it recommends for businesses and consumers.
- As Pandemic Shutters Cinemas Around the World, China Wins First Global No. 1 Movie — War epic “The Eight Hundred” rides a domestic post-coronavirus bump to be the world’s highest grossing movie this year so far.
- Chinese Bitcoin Mining Machine Maker Ebang Establishes Canadian Subsidiary — Chinese bitcoin mining machine maker Ebang International has established a wholly owned subsidiary in Canada, paving the way for it to enter the digital asset trading business in the country as it strives to diversify its revenue streams.
- Tencent Leads Over $100m Funding in Pet Clinic Operator New Ruipeng — New Ruipeng Pet Healthcare Group Co., Ltd, a specialist providing medical care services for pets, said on Tuesday that it has pocketed “hundreds of millions of US dollars” in a funding round led by Chinese tech giant Tencent.
South China Morning Post
- Hong Kong’s August home price index drops by the most in six months as recession, Covid-19 sap investment appetite — Hong Kong’s prices for used residential property declined by the most in six months in August, as the coronavirus pandemic combined with the city’s worst recession on record in sapping investors’ appetite.
- China’s coronavirus recovery lays bare sharp regional economic disparity — China’s uneven regional economic development has been turbocharged by the coronavirus pandemic, despite a broad-based national recovery, representing a long-term challenge for the nation’s leaders.
- Alibaba’s cloud services business poised to turn a profit on back of China’s digital economy, global expansion — Alibaba Group Holding expects its cloud computing services business to become profitable before the company’s current financial year ends in March 2021, driven by demand from China’s fast-growing digital economy and strategic overseas expansion.
- Hong Kong retail sales drop 13 per cent in August, continuing 19-month downward spiral — Hong Kong retail sales plunged 13.1 per cent year on year in August, as the coronavirus pandemic continued to batter the struggling sector, marking a 19th consecutive month of contraction.
- US-China relations: Taiwan trade deal on Donald Trump’s radar, American lawmaker says — A group of Republican lawmakers seeking to counter national security and economic threats from mainland China is calling for the United States to open trade talks with Taiwan, a plan which is “very much” on the radar screen of the Trump administration, according to the congressman who leads the group.
- Global funds flee China’s stock market at the fastest quarterly pace in 15 months after making outsize profits for their portfolio — Global stock traders dumped Chinese equities by the most in 15 months during the third quarter, as they unwound their holdings of the shares that have made outsize gains for their portfolio.
- Jack Ma: China’s entrepreneurs must be ready for a globalised, digitalised world — Chinese entrepreneurs must ready themselves for a digitalised and globalised world and look beyond immediate difficulties, according to Alibaba founder Jack Ma.
- Hong Kong closer to launching unprecedented HK$22.4 billion investment vehicle with appointment of top executives — Hong Kong moved closer on Wednesday to launching an unprecedented HK$22.4 billion (US$2.9 billion) investment vehicle with six non-officials appointed to helm the initiative.
- US, Taiwan to team up on infrastructure projects in Indo-Pacific, officials say — The United States and Taiwan will work together on infrastructure projects in the Indo-Pacific region and Latin America, officials said on Wednesday, in a clear counter to Beijing’s massive regional investment plans.
Bloomberg
- Geely Brand Bets Europe Will Subscribe to and Share Chinese Cars — China’s Zhejiang Geely Holding Group Co. is expanding its reach in Europe’s auto market by launching its upmarket Lynk & Co brand aimed at consumers who want to subscribe to and share cars.
- Hong Kong Retail Slide Continued in August Amid Restrictions — Hong Kong retailers’ struggles eased slightly in August even as social-distancing measures were extended to combat the latest wave of coronavirus infections in the city.
- HSBC, ICBC, Citi Hired for Turkish Wealth Fund’s Debut Eurobond — Turkey’s sovereign wealth fund mandated international banks including HSBC Holdings Plc, Industrial Commercial Bank of China Ltd. and Citigroup Inc. for its debut Eurobond sale, according to people with direct knowledge of the matter.
- House Republicans Recommend Stiffer Response to China’s Rise — Congressional Republicans are urging key industries to shift supply chains away from China and calling for stricter limits on some China-related investments, according to a report out Wednesday.
- Hong Kong Stocks’ Yawning Gap Versus World Keeps Getting Wider — Stock investors lost more money in Hong Kong than in most places this quarter. Again.
- Alibaba Expects First Profit From Its Cloud Arm This Year — Alibaba Group Holding Ltd. foresees its cloud services arm turning profitable for the first time this year, a milestone for the decade-old business that underscores how Asia’s largest corporation expects a return to pre-pandemic levels as China’s economy rebounds.
- Amazon to Take Office Space From Citigroup in Singapore — Amazon Inc. is planning to take over some of Citigroup Inc.’s office space in Singapore at a time when a number of the e-commerce giant’s Chinese tech rivals expand in the city state.
- Millions Fly With China’s Airlines as Pandemic Drags on Others — The world’s harried airline bosses will look enviously to China this week as millions of people take to the skies for national holidays, helping Chinese carriers push even further ahead in their recovery from the pandemic.
- When a Bag of Pricey Pork in China Becomes a Luxury Holiday Gift — A video showing scores of furniture store employees lining up to receive a bag of fatty pork has gone viral in China, a show of how surging prices have turned swine meat into a luxury holiday gift.
- China’s Coal Industry Unflinching Over 2060 Zero-Carbon Goal — China’s massive coal industry isn’t worried about the nation’s plan to drastically cut carbon emissions by 2060.
- New Philippine Tax Adds More Pain to Pandemic-Hit Online Casinos — China-centric online casinos in the Philippines will incur more losses and more are expected to shut after a pandemic relief law imposed a new tax on the industry, a gaming authority official said.
- EU Leaders Will Call for Rebalancing Relationship With China — European Union leaders will on Thursday call for an economic rebalancing with China and greater reciprocity between the two sides, part of a rethink by Brussels over how to engage with the world’s second-largest economy.
- Micron Shares Fall After Chipmaker Halts Shipments to Huawei — Micron Technology Inc. shares fell after the largest U.S. chipmaker said it recently halted shipments to China’s Huawei Technologies Co.
- South China’s Monumental Tech R&D Hub Hit by Storms over Trade, Hong Kong — China’s Greater Bay Area is supposed to rival clusters like Tokyo Bay and San Francisco-Silicon Valley. But distrust of Beijing is throwing up obstacles.
- Macau Gaming Preview: Sept. Revenue Estimated to Drop by 86% — Macau casinos’ gaming revenue is expected to show only an incremental improvement for September after plunging more than 90% for five consecutive months, even after travel and visa curbs have been gradually relaxed by China.
Reuters
- Tesla to roll out China-made Model 3 cars with cobalt-free LFP batteries: sources — U.S. electric vehicle maker Tesla Inc is poised to start selling some Model 3 vehicles made in China equipped with cobalt-free lithium iron phosphate (LFP) batteries, two people familiar with the matter said.
- Ginseng piles up in Canada during pandemic despite Chinese demand — The pandemic’s crushing effect on international travel has grounded Canadian exports of ginseng, a root widely used in Asia to treat everything from the common cold to impotency, at a time when health is top of consumers’ minds.
- U.S., Taiwan to team up on infrastructure in pushback against China — The United States and Taiwan will work together on infrastructure projects in the Indo-Pacific region and Latin America, officials said on Wednesday, in an implicit pushback for China’s own massive regional investment plans.
- Exclusive: China preparing an antitrust investigation into Google – sources — China is preparing to launch an antitrust probe into Alphabet Inc’s Google, looking into allegations it has leveraged the dominance of its Android mobile operating system to stifle competition, two people familiar with the matter said.
- Luxury brands bank on a raring China market as pandemic lays waste to global demand — On the southern Chinese island of Hainan, a duty-free shopping paradise, mainland tourists keen to splurge will often patiently line up for an hour or more to enter a Gucci, Tiffany or other luxury brand store.
- Taiwan trade deal on Trump administration’s radar, lawmaker says — A group of Republican lawmakers seeking to counter national security and economic threats from China is calling for the United States to open trade talks with Taiwan, a plan which is “very much” on the radar screen of the Trump administration, according to the congressman who leads the group.
- Baidu-backed online tutor Zuoyebang seeks new funding at $10 billion valuation: sources — Chinese online education startup Zuoyebang has started a new fundraising drive at a valuation of $10 billion, said two people with direct knowledge of the matter, as investor appetite for the sector continues to surge amid the COVID-19 pandemic.
- China Evergrande rises 17.9% after deal with Hengda investors, unit applies listing — Shares of China Evergrande Group rose as much as 17.9% after the property developer reached a deal with some investors in its unit Hengda Real Estate to ease cash-crunch concerns.
- China issues draft loss-absorbing capacity rules for systemically important banks — China on Wednesday published draft rules that require its global systematically important banks to beef up capacity to absorb losses to head off financial instability.
- China’s Kangtai gets approval for clinical trial of coronavirus vaccine candidate — China’s Shenzhen Kangtai Biological Products said on Tuesday it planned to launch a clinical trial of its coronavirus vaccine candidate as soon as possible after it had obtained regulatory approval from the Chinese medical products regulator.
- We make the rules, Portugal tells U.S. after China threats — Portuguese leaders have criticised U.S. ambassador George Glass after he said they must choose between the United States and China or risk the consequences.
Xinhua
- China’s non-manufacturing PMI rises in September — The purchasing managers’ index (PMI) for China’s non-manufacturing sector came in at 55.9 in September, up from 55.2 in August, the National Bureau of Statistics (NBS) said Wednesday.
- China’s manufacturing PMI rises in September — The purchasing managers’ index (PMI) for China’s manufacturing sector came in at 51.5 in September, up from 51 in August, the National Bureau of Statistics said Wednesday.
- China’s central bank injects liquidity into market — China’s central bank on Wednesday continued to pump cash into the banking system via reverse repos to maintain liquidity.
- Xinjiang’s foreign trade up 1.1 pct in first 8 months — Northwest China’s Xinjiang Uygur Autonomous Region recorded more than 89 billion yuan (about 13 billion U.S. dollars) in foreign trade in the first eight months of this year, up 1.1 percent year on year, local authorities said.
- Shanghai hotels ready for CIIE guests — Shanghai’s hotels are prepared for exhibitors and guests for the third China International Import Expo (CIIE), which will be held from Nov. 5 to 10, authorities said Tuesday.
- Alibaba’s trade platforms attract over 68 mln companies worldwide — The trade platforms of Chinese e-commerce giant Alibaba Group have attracted over 68 million small and medium-sized enterprises (SMEs) from more than 200 countries and regions, the company said at an event.
- China’s benchmark power coal price edges up — China’s benchmark power coal price rose slightly during the past week.
- Chinese shares close mixed Wednesday — Chinese stocks closed mixed on Wednesday, with the benchmark Shanghai Composite Index down 0.2 percent at 3,218.05 points.
Other Publications
- Foreign Policy: American Leaders Sold a Dream of Changing China — Advocates of engagement are now downplaying the missionary impulse. That’s not what U.S. presidents said at the time.
- Nikkei Asian Review: Baidu fundraising puts $3bn value on smart device business — Chinese web search leader Baidu has brought in outside investors for its voice assistant and smart device business, setting the stage for a potential spinoff while valuing the operations at 20 billion yuan ($2.9 billion).
- Nikkei Asian Review: China’s SMIC stockpiles chip equipment to counter US restrictions — China’s top chipmaker Semiconductor Manufacturing International Co. is stocking up on production equipment and crucial replacement parts in a sign that it has been braced for months for the U.S. to tighten export restrictions, Nikkei Asia has learned.
- Science: Can China, the world’s biggest coal consumer, become carbon neutral by 2060? — The country is the world’s largest producer of carbon dioxide (CO2), accounting for 28% of global emissions, and its move may inspire other countries to follow suit. But observers warn that China faces daunting challenges in reaching its goals. Kicking its coal habit will be particularly hard.
- The Guardian: Big tech firms may be handing Hong Kong user data to China — Big technology companies may already be complying with secret Chinese requests for user information held in Hong Kong and ought to “come clean” about the vulnerability of the data they hold there, a senior US state department official has said.
