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
- Apple Counts on 5G to Boost iPhone Fortunes in China — Apple is launching its 5G-enabled smartphones as China’s economy is rebounding faster than the rest of the world but also at a time of increasing tech nationalism amid heightened trade tensions with the U.S.
- Should Fiscal Policy Get More Chinese? — Chinese public investment is rightly panned as inefficient, but new IMF research suggests the rich world inch a bit further in China’s direction.
- Australia Worries Coal Is China’s Next Target as Ties Fray — Australia is “working through normal diplomatic channels” to clarify reports in two trade publications that Chinese authorities have told several state-owned steelmakers and power plants to stop importing Australian coal.
- What China and Russia Could Reap From Covid-19 Vaccine Diplomacy — As wealthier countries buy up supplies of Western drugmakers’ Covid-19 vaccines that are still in development, China and Russia are offering their fast-tracked shots to poorer nations. Here’s what they’re hoping to get in return. Illustration: Ksenia Shaikhutdinova
- An Unpopular IPO Rule Hands Chinese Banks Big Windfalls — When China rolled out its own Nasdaq-style listings venue, regulators forced investment banks to buy stocks in the companies they took public. That unusual requirement is now paying off big time.
- Exiled Chinese Businessman’s Manhattan Apartment Is Put in Bankruptcy — A palatial Manhattan residence occupied by exiled Chinese businessman Guo Wengui has been put under bankruptcy protection amid a legal dispute over the multimillion-dollar apartment in the Sherry-Netherland Hotel.
- China Growth Limits Global Economic Damage From Pandemic, IMF Says — The global economic collapse caused by the coronavirus won’t be as severe as estimated earlier, the International Monetary Fund predicted, though the recovery will be long and arduous.
The Financial Times
- Shenzhen/Huawei: the other Bay Area — There is an uncharacteristic urgency in China’s reaction to US attacks on its tech sector.
- China’s stock market value hits record high of more than $10tn — Equities boosted by strength of country’s economic recovery following coronavirus.
- Evergrande tumbles 17% as share placement falls short — Stock slides after indebted Chinese developer raises just over half its $1bn target.
- Chinese banks are chasing Anil Ambani through the UK courts — Chinese creditors allege one of India’s best-known tycoons has the means to repay loans.
- China braced for lose-lose scenario as US election fuels unease — Beijing fears Trump triumph will further sour relations but Biden victory could pose tougher long-term challenges.
- Evergrande highlights risks in China’s offshore bond market — It is unfathomable that the property giant will be allowed to implode, given the effect on banks and the macro economy.
- Tussle over Taiwanese group raises fears of Chinese infiltration — Scandal-hit Tatung shows challenge of balancing national security against governance.
- The global economic recovery is dramatically uneven — China leads the way, while the rest of the world lags behind.
- Ant Group under scrutiny over exclusive sale of shares in IPO — Chinese company sold exposure via its mobile payments platform in deal with 5 funds.
The New York Times
- In City Where China Welcomed the World, Xi Prepares for a Colder One — China’s leader, Xi Jinping, speaking in the early trading center of Shenzhen, emphasized domestic innovation amid tensions with the United States.
- China to Set Protection Fund for Booming Payments Industry — Central bank plans 1 billion yuan fund to deal with risks, repay consumer deposits if needed.
- Four Things to Know About the State’s Role in China’s Private Investment Market — In a shrinking VC and PE industry, government ‘guidance funds’ intended to spur industrial development play an increasingly prominent role.
- Lenovo Is Once Again the King of PC Sales — Leading Chinese player benefits from pandemic-induced work- and study-at-home trends in the third quarter.
- China’s Car Sales Pick Up More Speed — September sales rise 12.8% compared with the same period last year.
- Chinese Mobile Phone Users Watch Nearly 2 Hours of Short Videos a Day — Pandemic pushes more entertainment consumption online for 818 million users of ByteDance’s Douyin, Tencent’s Kuaishou and rival apps, industry study finds.
- State-Owned Automaker SAIC Has Tesla in Its Sights — SAIC Motor Corp. Ltd., China’s largest carmaker, has Tesla in its crosshairs.
- Meituan Unveils First ‘Artificial Intelligence’ Run Shop — Chinese food delivery app Meituan-Dianping is taking its online retailing business to a level where “no one has been.”
- Chinese Biotech Firm EdiGene Nabs $67m From Sequoia, IDG, Others — Chinese novel gene-editing platform EdiGene Inc has raised 450 million yuan ($67 million) in its Series B round funding led by Chinese healthcare industry focused private equity fund 3H Health, according to a company statement on October 13.
South China Morning Post
- China-US relations: Pompeo calls for think tanks in America to show all foreign funding — The US has requested that think tanks and other foreign policy organisations operating in the country voluntarily disclose any foreign funding, citing influence concerns about China and Russia.
- Hong Kong’s mid-sized developers seek to create markets in unlikely niches to survive city’s worst economic slump on record — Hong Kong’s real estate developers, particularly mid-sized companies that rely on a narrow segment for their sales, are diversifying their product offerings to find potential revenue in new market niches to help them survive the city’s worst recession on record.
- What does China’s September loan data mean for the economy and the yuan? — China’s central bank published its monthly money supply and bank lending data on Wednesday, showing the People’s Bank of China’s efforts to walk a delicate balance between facilitating an economic recovery and avoiding excessive stimulus.
- Midea, Gree and Haier make up 80 per cent of the value of China’s top 10 appliance makers in industry that out sells the world — China’s top 10 appliance makers, which are also the world’s largest by market capitalisation, are a highly concentrated lot.
- Global container shortage drives spike in shipping rates, but brings windfall for Chinese manufacturers — Freight carriers are facing a shortage of shipping containers amid a wave of demand for delivery by sea, helping drive up rates and increasing supply chain costs for some businesses across Asia.
- Chinese tech hub names top 40 leading reform lights — Authorities in the southern Chinese city of Shenzhen have recognised 40 people for their contribution to the transformation of the once sleepy fishing village into a thriving technology hub over the last four decades. The recipients come from a range of sectors in the city, from manufacturing, telecommunications, medical care, equipment and nuclear power to fashion and art. They also include people who pioneered implementation of the reform and opening-up policy. A notable absence from the….
- Which central bank will launch world’s first digital currency? — The race among central banks to launch sovereign digital currencies is heating up. China has made considerable progress, with hopes of using its nascent digital currency to help internationalise the yuan, but several other nations are warming to the idea of relying less on cold, hard cash in more flexible payment systems.
- Chinese steel mills begin ‘diverting’ Australian coking coal as Canberra seeks clarification on reported ban — At least four major Chinese steel mills have started diverting orders of Australian coking coal to other countries as a ban on shipments takes effect, analysts said.
- Greater Bay Area: Hong Kong’s stricken tourism industry cannot wait for mainland visitors to return, but will they come back? — Hong Kong’s tourism industry, reeling from months of social unrest that kept visitors away through the second half of last year, was dealt a major blow when Covid-19 struck early this year, closing borders and halting international travel.
- Tencent plans to exercise its option to lift its stake in Vivendi’s Universal Music, in a move to diversify from gaming and China — Tencent Holdings is planning to increase its stake in Universal Music Group by a further 10 per cent before the option expires in January, according to people familiar with the matter.
- MI5 Chief Says U.K. Plans to do More to Tackle China Threat — The head of MI5 said the U.K.’s domestic spy agency wants to “do more” to tackle Chinese activities that threaten the intellectual property of British companies and universities.
- Can China Keep Its 2060 Carbon-Neutral Promise? — The world’s biggest emitter of greenhouse gases says it will be carbon-neutral by 2060. It’s a momentous undertaking — and a tall order.
- China’s Credit Growth Stayed Robust in September on Recovery — China’s credit continued to grow robustly in September, reflecting government efforts to add stimulus and stronger demand as the economic recovery continues.
- Evergrande Deal Misses Target After Founder Cut Out Rich Friends — China Evergrande Group broke with precedent this week by excluding friends of billionaire founder Hui Ka Yan from a closely watched share sale, a strategy that was designed to bolster investor confidence in the embattled developer but may have instead done the opposite.
- Xi Plays a Long Game on Tech as U.S. Squabbles — Xi Jinping is sticking to the plan. After four years of parrying with President Donald Trump, the Chinese leader shows no intention of scaling back his ambitions to supplant the U.S. as the dominant tech power.
- China Targets U.S. Buyers with $6 Billion Dollar Bond Sale — China is pressing ahead with a dollar bond sale amid growing uncertainties over U.S. elections and tensions with Washington.
- Xi Rallies China Behind Shenzhen as Tech Fight Heats Up — President Xi Jinping vowed to press ahead with plans to gain the global lead in technology and other strategic industries, despite expanding efforts from the U.S. and its allies to check China’s rise.
- Evergrande Investor Leans Toward Seeking $3.4 Billion Repayment — China Evergrande Group’s largest strategic investor is leaning toward demanding repayment of the $3.4 billion it’s sunk into the embattled developer, according to people familiar with matter, adding pressure on the company as it races to cut its massive debt load.
- Foxconn Must Confess Its Trumpian Failure in Wisconsin and Move On — To chart a path forward after this debacle, the Taiwanese giant must first reconcile with its past.
- China Wind Giants Surge More Than 20% on Aggressive Proposal — Chinese wind power equipment makers advanced as the industry proposed an aggressive installation plan that would boost capacity 14-fold through 2060 to help the country reach its goal of being carbon-neutral by then.
- China Is Buying Up Record Chunks of Japan’s Debt Mountain — China went on a record-buying spree of Japanese bonds over the summer months, snapping up $20.9 billion of the low-yielding debt to spur talk that it’s diversifying reserves.
- ASML Stays Positive Despite Being Caught by U.S., China Rift — ASML Holding NV, a crucial supplier to Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co, is sticking to an optimistic outlook despite the pandemic and increasing tensions between China and the U.S.
- China Stocks Stall Near 5-Year High After Xi’s Big Address — Xi Jinping failed to provide any fresh incentives for stock traders to push Chinese shares to a 5-year high when he delivered a much-anticipated speech in Shenzhen.
- China’s $1 Trillion Wealth Fund to Step Up Soured Asset Sales — China’s $1 trillion sovereign wealth fund is moving to tackle a growing pile of troubled investments such as its stake in embattled commodity trader Noble Group Holdings Ltd., even as the coronavirus pandemic makes any asset sales more difficult.
- Tesla Beefing Up Its Public, Government Relations Teams in China — Tesla Inc. is hiring public and government relations staff in China as the world’s biggest car market becomes a more important source of income for the top electric-vehicle maker.
- Hong Kong Housing Project Oversubscription Shows Pent Up Demand — A new residential project in Hong Kong has been oversubscribed by more than 33 times in the first week of sales, underscoring demand for housing in the world’s most expensive property market.
- Westpac to Cut More Than 150 Jobs as Bank Exits China, India — Westpac Banking Corp. is cutting more than 150 jobs as Australia’s second-largest lender consolidates its international operations, according to people familiar with the matter.
- The World’s Largest Potential IPO Is Under Threat — Billionaire Jack Ma’s Ant Group is said to be seeking a valuation of about $250 billion as it plans a dual listing in Hong Kong and Shanghai, which could raise at least $35 billion.
- China Bolsters Trade Dominance by Enduring Virus and Trump — China is cementing its status as the world’s dominant trading nation, confounding warnings that a once in a century pandemic combined with simmering tensions with the U.S. would derail that status.
- China, Russia Join UN’s Human Rights Body as a Saudi Bid Fails — China, Cuba and Russia were elected to the UN Human Rights Council despite vehement opposition from activists and organizations who say the countries’ governments are among the worst offenders of human rights globally.
- Exclusive: Huawei in talks to sell parts of its Honor smartphone business – sources — Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.
- BHP says Chinese coal customers have made deferment requests — BHP Group has received deferment requests from Chinese coal customers, Chairman Ken MacKenzie said on Wednesday, after reports that China had put a freeze on accepting Australian coal amid trade tensions between the two countries.
- China’s third quarter GDP growth expected to improve: PBOC official — China’s third-quarter GDP growth is expected to improve from the previous quarter, Ruan Jianhong, an official with the People’s Bank of China (PBOC), told a press conference on Wednesday.
- China coal supplies to tighten this winter on import curbs, strong demand — China’s coking and thermal coal markets are set to tighten over the remainder of 2020 as stringent import restrictions curb supply at a time of robust demand from heavy industry, and with the winter heating season about to kick in.
- Australian politician tells inquiry Chinese visa scheme was a scam — An Australian politician at the centre of a corruption probe told an inquiry on Wednesday that he had received envelopes full of thousands of dollars in cash at his parliament office as part of a scheme for Chinese nationals to fraudulently acquire visas.
- China opens anti-subsidy probe on U.S. polyvinyl chloride imports — China’s commerce ministry said on Wednesday it launched an anti-subsidy investigation on polyvinyl chloride imports from the United States starting from Oct. 14.
- Chinese exports, imports to be on robust uptrend in coming months: UK thinktank — Chinese exports and imports will stay a robust uptrend in the coming months, a study released by the British thinktank Oxford Economics said Tuesday.
- Spotlight: Global economy faces long, uncertain recovery, with China’s growth bright spot — Global economy is on track to experience a deep recession in 2020 amid the ongoing COVID-19 pandemic, with China being the only major economy that will see growth this year, the International Monetary Fund (IMF) said Tuesday.
- China’s new yuan loans rise in September — China’s new yuan-denominated loans hit 1.9 trillion yuan (about 281.59 billion U.S. dollars) in September, a year-on-year increase of 204.7 billion yuan, central bank data showed on Wednesday.
- China’s newly added social financing grows in September — China’s newly added social financing, a measurement of funds the real economy receives from the financial system, came in at 3.48 trillion yuan (about 515.76 billion U.S. dollars) in September, up by 963 billion yuan year on year, central bank data showed on Wednesday.
- China’s autonomous agricultural machinery sales surge — China’s sales of self-driving agricultural machinery equipment and systems reached more than 11,700 units in the first half of this year, posting strong year-on-year growth of 213 percent.
- Finnish textile services company expands business in China — Finnish textile services group Lindstrom said on Wednesday it would become the market leader in workwear rental and cleanroom business in China following its acquisition of U.S. Cintas group’s business in China.
- Sri Lanka’s exports to China grow 31.92 pct in September: government — Sri Lanka’s exports to China grew 31.92 percent in September year on year as total monthly export revenue crossed 1 billion U.S. dollars for the third time this year, the country’s Export Development Board (EDB) said on Tuesday.
- Chinese shares close lower Wednesday — Chinese stocks closed lower on Wednesday, with the benchmark Shanghai Composite Index down 0.56 percent to end at 3,340.78 points.
- CNBC: China is snapping up Japanese government bonds, and it’s not just for the returns — China bought 1.46 trillion yen ($13.8 billion) in medium to long-term Japanese government bonds on a net basis between April and July. That was 3.6 times more than the same period last year.
- Aljazeera: US plans to sell more drones, missiles to Taiwan: Report — Officials told Congress on Tuesday that the Trump administration was planning to sell MQ-9 drones and a coastal defensive missile system to Taipei, sources familiar with the situation told Reuters. The possible sales follow three other notifications on Monday that drew a rebuke from China.
- Foreign Policy: China Learns the Hard Way That Money Can’t Buy You Love — Few countries have soured more rapidly against China than Australia, as decades of influence-building by Beijing come to naught.
- Foreign Policy: Merkel’s China Reset Is Mostly Hollow — Washington shouldn’t expect—and may not need—a coordinated policy with Berlin.
- OilPrice: China Books 12.7% Rise In Oil Imports Jan-Sept — China imported 416 million tons of crude oil during the first nine months of the year, up 12.7 percent on the year, in the latest positive sign for oil demand despite the pandemic.