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’s Rebound Helps Lift Japanese Businesses — As the coronavirus pandemic continues to pummel the world’s major economies, Japan’s corporate giants are pinning their hopes on the one market that is really rebounding: China.
- China’s Households Are Shouldering the Burden of Its Recovery — The nexus between banks, households and real estate has helped lift the Chinese economy back from the pandemic, but it compounds the country’s vulnerabilities too.
- Russia, China Rush to Fill Covid-19 Vaccine Void Left by the West’s Cautious Approach — While the U.S. and Europe await the results of large-scale clinical trials before deploying coronavirus vaccines, some other nations are moving much faster with emergency-use rollouts of experimental Chinese and Russian candidates.
- China Raises $6 Billion in Dollar-Bond Sale — China raised $6 billion with its latest international bond sale, matching a record set last year, ahead of economic data that is likely to show growth is recovering toward pre-pandemic levels.
- China Drugmaker Gives Unproven Covid-19 Vaccine to Students Going Abroad — China is expanding distribution of coronavirus vaccines outside of clinical trials, with a state-owned company offering them to students going abroad amid a campaign by officials to boost public confidence in homegrown inoculations.
- WeChat Threatens Free Speech — The defense of the Chinese social-media app gets it precisely backward.
- Indonesia Weighs Approving Chinese Covid-19 Vaccines for Emergency Use — Indonesia is taking steps toward approving emergency usage of Covid-19 vaccine candidates from China,a senior health official said, a move that would make it the second country outside China to do so.
The Financial Times
- Trade floes and China’s Arctic shipping route to Europe — It’s a stretch to think the opening of an ice-free passage is going to make a big difference to container shipping.
- Beijing’s first bond offer to US investors draws record demand — China’s economic recovery proves strong lure for funds despite tensions with Washington.
- 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.
Caixin
- Mysterious 32-Minute Glitch Leaves Shenzhen Bourse Traders on Hold — Multiple investors said they failed to receive timely confirmation from the stock exchange when placing or cancelling orders.
- September Credit Growth Signals Stronger 3rd Quarter GDP, Central Banker Says — China’s push to bolster economy by funneling loans to businesses reflected in robust gain last month by newly added social financing, People’s Bank of China reports.
- China’s Consumer Inflation Slows — CPI rose 1.7% year-on-year in September, while PPI declined 2.1%.
- Debt-Ridden Freight Firm Dips Into Capital to Pay Back Creditors — Shanghai-listed Antong plans to issue 2.88 billion shares as it continues with its court-ordered reorganization.
- Late to Switch On, Apple Tunes Into China’s Homegrown Nav System — New iPhone 12 Series now compatible in 5G with GPS rival BeiDou.
- Chip Equipment Giant ASML Says Some Sales to China Don’t Require U.S. License — CEO says products using less-advanced deep-ultraviolet technology don’t require Washington’s approval if they are shipped direct from the Netherlands to China.
- Told to Register as a Mainland-Based Company, Taobao Taiwan Decides to Shut Down — Local regulators gave the e-commerce retailer an ultimatum in August after establishing it was controlled by Hangzhou-based Alibaba.
- China’s Oppo makes play for European growth as Huawei slips — Chinese smartphone maker Oppo is seizing on the headwinds facing compatriot Huawei Technologies to pursue rapid growth in Europe, where it recently inked a deal with the EU’s largest mobile carrier to sell 5G handsets.
- How Can China Protect Personal Data? — In a joint paper written by Xu Chenggang, a professor at Cheung Kong Graduate School of Business, set out important developments in China’s approach to property rights, and in particular how they pertain to data protection.
South China Morning Post
- China-Cambodia free trade deal highlights Beijing’s push for economic influence in Southeast Asia — The relatively speedy free trade deal that China sealed with Cambodia this week to cut tariffs and boost investment highlights Beijing’s intention to strengthen its economic influence among Asean members amid a growing rivalry with the United States in the region.
- China steelmaker Sinosteel increases Australian iron ore stake after merging with Baowu Steel — Chinese steel producer Sinosteel is doubling down on the Australian iron ore market with a deal to buy half of Australian-listed explorer Fenix Resources’ production just days after being taken under the wing of mega Chinese steelmaker China Baowu Steel Group.
- China has expanded the shipyard where its nuclear submarines are built, satellite imagery shows — New satellite analysis has found that China has expanded its capacity for building nuclear-powered submarines at one of its largest shipyards.
- TSMC keeps mum over Huawei licence amid rising demand for chips on 5G smartphones, mobile networks — Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chip maker, said on Thursday that it did not ship any products to Huawei Technologies after September 15, when new US trade restrictions on the Chinese telecommunications giant took effect.
- Chip maker TSMC’s record profit beats forecasts ahead of new iPhones — Taiwan Semiconductor Manufacturing Co (TSMC) reported a stronger-than-expected 36 per cent increase in profit, buoyed by orders from its largest customers, including Apple, ahead of new iPhone shipments to consumers.
- Xiaomi’s CEO aims to be No.1 smartphone vendor in Europe, edging out Huawei, over next few years — Chinese smartphone maker Xiaomi Corp wants to become the No. 1 smartphone vendor in Europe in the next few years, edging out leading Chinese rival Huawei Technologies, which is currently battling US sanctions.
- China’s inflation hit 19-month low in September as pork prices cool — China’s official consumer price index (CPI) rose 1.7 per cent in September from a year earlier, down from 2.4 per cent in August, the National Bureau of Statistics (NBS) said on Thursday.
- No paper, no cups: China’s local authorities further tighten their belts as coronavirus, tax cuts weigh heavy — Local governments across China have been forced to further tighten their belts this year because of the damage caused by the coronavirus pandemic, with one slashing non-essential items by as much as 60 per cent.
Bloomberg
- Hong Kong-Singapore Travel Bubble to Reopen Financial Hub Links — Singapore and Hong Kong will open their borders to one another for the first time in almost seven months, exempting people in both cities from compulsory quarantine in an agreement that will reinstate links between Asia’s two premier financial hubs.
- U.S. Buyers Fuel Bumper Demand for China’s $6 Billion Bond — China drew more than $27.2 billion in orders for its $6 billion dollar bond, underscoring strong demand for its sovereign debt in an environment of low yields across the world.
- Clock Ticks For Banks to Follow Trump’s Hong Kong Sanctions — The countdown has begun on whether banks will be ensnared in the Trump administration’s sanctions on Chinese and Hong Kong officials, singled out for contributing to a clampdown on political freedoms in the Asian hub.
- Hong Kong Stocks Slide Most in 3 Weeks With Tech Firms Leading — Hong Kong stocks fell the most in more than three weeks, with tech shares leading losses.
- Billionaire Rides Cooking Oil Dominance to Record China IPO — Kuok Khoon Hong has pulled off a remarkable second act. The billionaire sold shares of his China business in the biggest ever initial public offering on the Shenzhen Stock Exchange, thanks to the most popular cooking oil brand in the country.
- China Defends Tibet Labor Practices as U.S. Increases Scrutiny — Chinese officials defended their labor practices in Tibet, in the face of growing concerns about rights abuses in the region and the Trump administration’s appointment of a senior official to scrutinize Tibetan affairs.
- Asia Doesn’t Need to Choose Between U.S. and China, Panel Says — Asian powers are in a position to avoid choosing between the U.S. and China as they build deeper ties with each other, a panel of regional politicians and experts said, amid a battle for influence between the world’s two biggest economies.
- Uniqlo Owner Sees Return to Pre-Pandemic Profit on Asia Rebound — Asia’s largest retailer Fast Retailing Co. sees profits growing slightly beyond analysts’ expectations this fiscal year, driven by a robust recovery from the Covid-19 pandemic in the Uniqlo owner’s key China and Japan markets.
- Trudeau Riles China 50 Years After His Father Forged Ties — China lashed out at Canada after Prime Minister Justin Trudeau vowed to stand up to Beijing’s “coercive diplomacy.”
- Tencent-Backed Miniso Raises $608 Million in U.S. IPO — Miniso Group Holding Ltd., the Chinese budget household and consumer goods retailer, raised $608 million in a U.S. initial public offering priced above a marketed range.
- Evergrande Deal Misses Target After Founder Cut Out 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 had the opposite effect.
- China’s Sinovac May Start Philippine Vaccine Trials This Year — China’s Sinovac Biotech Ltd. may start Covid-19 vaccine trials in the Philippines before the end of the year, the chief of the Southeast Asian nation’s food and drug agency said.
- Hong Kong Denounces U.S. ‘Made in China’ Label Demand to WTO — Hong Kong demanded the U.S. withdraw its pending regulation to label goods manufactured in the city as ‘Made in China,’ expressing its “strong objection” to the requirement at a meeting of the World Trade Organization.
- Evergrande Investor Leans Toward Seeking $3 Billion Payment — 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.
- China September Inflation Slows as Food Price Gains Moderate — China’s consumer inflation slowed in September, driven by a moderation in food price gains.
- China Airline Sets Record With $2.4 Billion Convertible Bond — A rare mega deal by a Chinese airline is set to revive the country’s convertible bond market, after volatile trading dried up issuance of the popular securities.
- China Sells $6 Billion of Dollar Bonds Amid U.S. Tensions — China drew bumper demand for a dollar bond sale amid growing uncertainties over the U.S. elections and tensions with Washington.
- Fastly Plummets After Tension Over ByteDance Curbs Sales — Fastly Inc. plunged in late trading after saying that Chinese internet giant ByteDance Ltd., its No. 1 customer, spent less than predicted in the third quarter on cloud computing services as a result of rising U.S.-China trade tension.
- Bytedance Moving to Bigger Singapore Office Amid Expansion Plan — ByteDance Ltd., the Chinese owner of video app TikTok, is moving to a bigger office in Singapore’s financial district, paving the way for it to make the city-state its beachhead for the rest of Asia.
Reuters
- Analysis: Stepped up Chinese scrutiny increases investment risk of ‘Beast’ Ant — As Ant Group was working in August towards its giant IPO, at least two smaller Chinese banks with existing ties to the fintech firm decided to stop sourcing new consumer loans from it, people with knowledge of the matter said.
- China raises $6 billion as U.S. investors look past political tensions — China has raised $6 billion in a dollar bond issue that was offered to U.S. investors for the first time just weeks before the Nov. 3 election, a term-sheet reviewed by Reuters showed.
- Exclusive: Trump administration to consider adding China’s Ant Group to trade blacklist – sources — The U.S. State Department has submitted a proposal for the Trump administration to add China’s Ant Group to a trade blacklist, according to two people familiar with the matter, before the financial technology firm is slated to go public.
- China says U.S. abusing concept of national security to oppress foreign companies — China said on Thursday the United States was abusing the concept of national security to oppress foreign companies, following reports that Washington may blacklist Chinese financial technology firm Ant Group.
- China threatens countermeasures for U.S. sanctions warning to banks over Hong Kong — China’s foreign ministry said that China will take countermeasures if the United States insists on going down the wrong path, when asked about a U.S. warning to banks over the crackdown in Hong Kong.
- China’s inflation struggles to perk up despite broader recovery — China’s factory gate prices fell at a faster-than-expected pace in September and consumer inflation slowed to its weakest in 19 months, underscoring the challenges still facing China as it recovers from the COVID-19 pandemic.
- Breakingviews – CICC seeks edge in increasingly cutthroat market — Investment banking in China is becoming increasingly cutthroat. To keep up, China International Capital Corp wants to raise about $1 billion in a Shanghai secondary listing. The capital could help it fend off Wall Street rivals and fund mergers as officials push industry consolidation. As local peers also race to become super-brokerages, a lot is riding on the flotation.
- IMF’s Georgieva says private creditors, China need to fully participate in debt relief — International Monetary Fund Managing Director Kristalina Georgieva on Wednesday called for increased participation in debt relief for poor countries by private creditors and China, saying this was key to its success and a potential framework for debt restructurings.
Xinhua
- China sees higher aggregate financing to real economy at end-September — The outstanding aggregate financing to the real economy (AFRE) reached 280.07 trillion yuan (about 41.54 trillion U.S. dollars) at the end of September, up 13.5 percent year on year, according to the People’s Bank of China.
- China’s consumer inflation eases, factory-gate prices fall further — Retreating food prices eased China’s consumer inflation growth in September, while factory price decline widened, official data showed Thursday.
- China’s PPI down 2.1 pct in September — China’s producer price index (PPI), which measures costs for goods at the factory gate, fell 2.1 percent year on year in September, the National Bureau of Statistics (NBS) said Thursday.
- Xinhua Headlines: World economy faces “difficult climb” amid pandemic, with China’s growth as beam of hope — The world economy has been undergoing a deep recession this year amid the mounting fallout from the COVID-19 pandemic. Yet China is the only major economy that has registered positive growth, indicating the country’s significant role at a time of crisis.
- Canton Fair commences online in China’s Guangdong — The 128th edition of the China Import and Export Fair, popularly known as Canton Fair, kicked off online in south China’s Guangdong Province on Thursday.
- Chinese shares close lower Thursday — Chinese stocks closed lower on Thursday, with the benchmark Shanghai Composite Index down 0.26 percent, at 3,332.18 points.
Other Publications
- Business Insider: Nio will surge 85% as Tesla’s China success is a ‘rising tide lifts all boats’ phenomenon, JPMorgan says — That thinking led the bank to upgrade shares of Nio to “overweight” and assign a $40 price target on the stock, representing potential upside of 85% from Tuesday’s close.
- Foreign Policy: Counter China by Making Guam a State — More than a partisan move, statehood would be a foreign-policy masterstroke.
- Nikkei Asian Review: In depth: Cheap China EV selling twice as fast as Tesla Model 3 — Just launched Wuling Hongguang Mini proves popular in less affluent regions
