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
- China Joins Global Initiative to Provide Covid-19 Vaccine to Poor Countries — China has said it will take part in a global effort to distribute Covid-19 vaccines to poorer countries, Beijing said Friday, making it the most prominent nation to join a World Health Organization initiative the U.S. has rebuffed.
- Alibaba Stock Hits Record — The recent rally has lifted Alibaba’s market value above $800 billion, cementing its position as one of the world’s most valuable technology companies and opening a gap between it and Tencent.
- Chinese Exports to the U.S. Get a Lifeline From Coronavirus-Related Demand — Chinese shipments of virus-related goods to the U.S. have helped the country offset sharp drops in its top export categories due to Washington tariffs and the pandemic-linked economic downturn.
The Financial Times
- Renminbi jumps by most in more than 4 years as China returns to work — Markets buoyed by economic recovery and possible Biden US election win.
- Domestic travel over Golden Week boosts China’s economic recovery — Worries remain over consumer spending despite rise in number of internal trips.
- China blurs lines between private and state business — Entrepreneurs are being pressed to support political objectives.
The New York Times
- Elliott Broidy, a Top Trump Fund-Raiser, Charged in Foreign Influence Case — Federal authorities accused him of conspiring to violate lobbying laws in his unsuccessful efforts to resolve an investigation into the embezzlement of the Malaysian investment fund 1MDB.
- Trump threatens more tariffs on China in a second term — President Trump vowed to once again punish China with tariffs if he won re-election, claiming his strategy of heavily taxing Chinese products had forced Beijing to make trade concessions and helped American farmers.
- China Gives Away $1.5 Million to Test Digital Currency — Shenzhen rolls out biggest trial yet of the virtual yuan, handing out 50,000 digital coupons to spend at local shops.
- Exclusive: China Takes Another Step Toward Fixing Its Corruption-Plagued Rural Credit Unions — More than 10 provinces submit plans to clean up the troubled financial institutions.
- Exclusive: Dozens Probed at China’s Largest Oilfield Over Alleged Theft — Some 30 people, including over 20 PetroChina employees, are being investigated for stealing oil.
- Travel Rebounds Over China’s National Day Holiday — Eight-day holiday saw some 637 million trips nationwide, 80% of previous year’s level.
- Top Official at Regional Brewer Under Investigation — Beijing Yanjing Brewery says its Chairman Zhao Xiaodong is being probed for illegal work-related behavior, and can no longer perform his duties.
- Chinese Muji Challenger Plans to Raise up to $562.4 Million in U.S. IPO — Miniso, a Chinese budget household and consumer goods retailer, is planning to raise up to $562.4 million in its initial public offering (IPO) on the New York Stock Exchange (NYSE), becoming the latest Chinese company to enter the U.S. capital market despite mounting geopolitical tensions between the world’s two largest economies.
South China Morning Post
- China’s services sector remained strong in September due to continued recovery in domestic supply, demand — A continued recovery in domestic supply and demand saw sentiment within China’s services sector remain positive for a fifth consecutive month in September, a new survey released on Friday showed.
- Hong Kong’s troubled food trucks to keep rolling for another year, but operators ask why officials still don’t know recipe for success — Hong Kong’s food trucks can keep plying their trade for at least another year after the Covid-19 pandemic hammered businesses, but an industry group leader said some operators felt the government just wanted to avoid taking responsibility for killing off the programme.
- American Chamber of Commerce in Hong Kong, operating at a deficit for past four years, sells pricey office space in Central — The American Chamber of Commerce in Hong Kong (AmCham) has said goodbye to its grade A office space in Central, selling the property after suffering four years of deficits totalling more than HK$5.6 million (US$723,000), the Post has learned.
- Hong Kong maternity leave to extend by four weeks from December 11, but unions say more must be done for working mothers — Four more weeks of maternity leave for Hong Kong mothers will become a reality on December 11, it was revealed on Friday, but unionists who pushed for the reform say the city can and should go further in supporting working women.
- China Evergrande’s 30 per cent discounts get world’s most indebted developer within sight of sales goal, allay cash crunch fears — China Evergrande Group said a nationwide marketing campaign comprising 30 per cent discounts has brought it closer to hitting its ambitious full-year sales goal, as the world’s most indebted property developer pulls out all the stops to generate cash to repay debt.
- China’s SOE reforms must encourage competition and provide subsidy transparency, state economist says — China needs to make substantial reforms to its army of state-owned enterprises (SOEs) by introducing more competition and building a government subsidy system that is transparent and in line with international best practices, according to a prominent state economist.
- What is China’s plan to meet Xi Jinping’s economic vision for ‘socialist modernisation’ by 2035? — A healthy economic growth trajectory is expected to be key to plans for how Xi Jinping’s vision for China to “basically achieve socialist modernisation” by 2035 will be laid out at a key meeting in late October.
- China relies on private security firms to keep workers and projects safe in Africa, report says — China is relying heavily on private security contractors to protect its belt and road projects, citizens and diplomats in Africa, according to a report by a global policy think tank.
- China starts diplomatic drive to win over Southeast Asian countries — China is launching a charm offensive in Southeast Asia after the United States launched a Mekong river partnership in the region.
- China not among major central banks in talks on global digital currency principles — China was not included in recent talks among central bankers from developed nations on potential collaboration involving central bank digital currencies (CBDCs) that are technologically complementary and can coexist within a wider international payments ecosystem.
- China’s Shenzhen giving away millions in sovereign digital yuan to test technology and boost consumption — China’s fastest-growing city will start giving local residents 10 million yuan (US$1.47 million) worth of the country’s new sovereign digital currency via a lottery this weekend – the latest move in a series of trials to test and promote the new digital yuan.
- Travellers return to the sky as China’s Covid-19 outbreak comes under control, boosting ‘golden week’ flights by 13 per cent — China’s aviation industry took a step closer towards full recovery, as more people took to air travel during the nation’s “golden week” public holiday, encouraged by a rigorous testing regime, social distancing and the wearing of masks that brought the coronavirus outbreak under control.
- China ‘golden week’ holiday spending rebounds from coronavirus with daily spending up 4.9 per cent on year — A surge in spending over China’s “golden week” holiday has highlighted an encouraging rebound in consumption after the coronavirus pandemic ravaged the economy early in the year.
- Vanguard Returns $21 Billion in Assets to China’s State Funds — Vanguard Group Inc. returned about $21 billion in managed assets to government clients in China as part of a global shift to focus on low-cost funds for individual investors, according to people familiar with the matter. BlackRock Inc. and Amundi SA are being considered to manage a portion of the funds returned by Vanguard.
- Evergrande’s $21 Billion Sales Blitz Fails to Impress — China Evergrande Group pulled out all the stops to boost sales during the nation’s Golden Week holiday, slashing apartment prices by as much as a third and pressuring staff at even its electric vehicles unit to sell homes or face salary cuts.
- China’s Holiday Travel Is Back to 80% of Pre-Pandemic Level — Travel in China rebounded over the eight-day holiday period this month as the nation displayed further evidence that it is overcoming the coronavirus pandemic, with about 637 million trips made, government data show.
- Half a Billion Trips Show China’s Economy Moving Past Covid — Hotel prices shot up, ride-hailing apps crashed, tickets to the Great Wall sold out: after more than nine long, housebound months, almost half a billion Chinese people are taking a vacation.
- Hong Kong Small Cap Sinks 90% Amid Margin Call Speculation — A Hong Kong company whose board includes a brother of former U.S. President George W. Bush plunged suddenly Friday, fueling speculation of a margin call.
- China’s Yuan Climbs, Stocks Gain in Upbeat Return for Traders — China’s yuan strengthened and stocks rose on mainland exchanges in a positive start to the month for traders returning to work after an eight-day holiday.
- Thailand in Talks With Russian, Chinese Developers for Vaccines — Thailand is in talks with several Chinese, Russian and U.K. vaccine developers to secure viable inoculations against the coronavirus as soon as they became available — a key element in the country’s effort to reopen its tourism-reliant economy.
- China’s Growth Story Isn’t What It Seems: Diana Choyleva — The tailwinds that powered the nation’s economic rise are turning into headwinds, and Xi Jinping risks undermining the key drivers of success.
- China Bonds Signal Minsky Moment Has Been Avoided — Bonds are doing exactly what you’d expect in a recovering economy. It’s the Treasury market that looks manipulated now.
- China Inc. Set for Biggest U.S. IPO Year Since ‘14 Amid Spat — Chinese companies are choosing to make their market debuts in the U.S., even as Beijing and Washington spar over everything from trade and coronavirus to audit access.
- Dual Flu-Covid Nasal Spray Vaccine to Start Trial in Hong Kong — An experimental dual vaccine for both influenza and the new coronavirus delivered via a nasal spray will enter human studies in Hong Kong next month, a top infectious diseases doctor said.
- Evergrande’s Steep Holiday Discounts Could Squeeze Margins — China Evergrande Group shares fell after the embattled developer completed about 71% of its sales target in the two months through October, offering its steepest discount in history that could squeeze margins.
- Hong Kong’s Woes to Help Japan Woo Financiers, Top Official Says — China’s crackdown on Hong Kong and new limits on overseas workers in Singapore could help Japan raise its profile as a global financial hub, despite its higher taxes, according to Japan’s new vice finance minister.
- China’s cabinet says country still faces great employment pressure: state media — China’s cabinet said the country still faces great pressure on employment and supportive policies will continue, state broadcaster CCTV reported.
- China finds African Swine fever in piglets in Chongqing — China’s agriculture ministry confirmed on Friday African Swine Fever in piglets illegally transported to the southwestern city of Chongqing, the first reported outbreak since July 25.
- China expects to meet poverty alleviation goal, sustainability the next test — President Xi Jinping beamed down benevolently from a poster in the new flat of unemployed Jigu Gatie, provided by the Chinese government as part of efforts to tackle poverty nationwide.
- China seeking first-mover advantage in building digital currency: senior Japan official — China is seeking to win a first-mover advantage in its efforts to develop a digital version of its currency, Japan’s top financial diplomat said on Thursday.
- China’s Xinjiang sees surging cross-border e-commerce trade — Urumqi customs in northwest China’s Xinjiang Uygur Autonomous Region cleared nearly 25.2 million cross-border e-commerce lists worth 106 million U.S. dollars from January to August, up 370 percent and 390 percent respectively year on year.
- China to stabilize employment, boost NEV industry — The State Council, China’s cabinet, on Friday stressed measures to further stabilize employment to ensure the completion of its annual target.
- Factbox: China’s progress in economic resumption — China’s success in containing COVID-19 means the economy is in a steady revival mode. The following facts and figures indicate how the country is forging ahead in resuming work and production:
- China’s courier sector sees business volume jump over 50 pct during holiday — China’s courier sector reported an increase of over 50 percent in its business volume during the recent eight-day holiday, the State Post Bureau said on Friday.
- China’s steel mills see profits drop in first 8 months — China’s major steel companies saw their profitability down in the first eight months, the latest data showed.
- Hainan posts surging duty-free sales during National Day holiday — Customers select products at a duty-free shop in Haikou, south China’s Hainan Province, Oct. 4, 2020. China’s resort island province of Hainan raked in 1.04 billion yuan (about 155 million U.S. dollars) in duty-free sales during the National Day holiday, an increase of 148.7 percent year on year, according to customs authorities. (Xinhua/Pu Xiaoxu)
- Chinese shares close higher Friday — Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 1.68 percent at 3,272.08 points.
- The Economist: Iran wants a “strategic partnership” with China — For China, Iran is just one piece on a large chessboard
- Nikkei Asian Review: China’s support for Belarus’ Lukashenko masks Belt and Road qualms — Embattled strongman undermines his usefulness to Beijing by alienating West.
- Space: China selects 18 new astronauts in preparation for space station launch — According to government plans, the nation will start putting together its first full-fledged crewed space station around 2021.