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
- U.S. Firms Get Another Boost From China — Consumers spending big on cars, skin cream and soda help GM, Estee Lauder and others offset sales hit elsewhere by Covid-19.
- Chinese Rival to ByteDance Plans Multibillion-Dollar IPO in Hong Kong — Tencent-backed Kuaishou Technology is aiming for a roughly $50 billion valuation.
- Toyota, Honda Rely on Resurgent China for Growth — Japanese car makers more than double profit forecasts as recovery from pandemic picks up pace.
- Toyota Gains From Revived Car Market in U.S., China — CFO Kenta Kon says concern remains about the worsening coronavirus situation in the U.S. and Europe.
- China Irate After U.S. Removes ‘Terrorist’ Label From Separatist Group — China blames East Turkestan Islamic Movement for violence in remote Xinjiang region; scholars say group is defunct.
- A Still-Divided U.S. Makes Confronting China Harder — The election’s result is still unclear, but divided government—and a persistent political divide—could complicate attempts to shore up the U.S.’s leverage with Beijing.
- China’s Big Squeeze Puts Banks Under Rising Pressure — There is no prospect of a meaningful recovery for China’s large banks while interest-rate policies leave lenders under pressure.
- Beijing Strangles Hong Kong Even Tighter — A new proposal would destroy any semblance of the city’s autonomy and its residents’ freedom.
The Financial Times
- Australia tells exporters to find other markets after rise in China tensions — Canberra warns businesses that relations with Beijing are unlikely to improve soon.
- Ant Group/Alibaba: inspect an insect — Beijing’s scrutiny means potential investors will read risk warnings in future prospectuses more carefully.
The New York Times
- Australia Quiet on First Foreign-Meddling Arrest, but Target Is Clear — The suspect, who has been active in Chinese-Australian groups, was charged under laws against foreign interference that were seen as a response to China.
- As China Casts a Pall Over Hong Kong, Some See Opportunity — Boosters of growing ties with the mainland see greater business potential. But as the delayed Ant Group I.P.O. shows, peril comes with that promise.
Caixin
- Bloomberg Launches Index for Chinese Bonds That Foreign Investors Usually Avoid — New Index aims to track highly liquid yuan-denominated bonds issued by companies, local governments and financial institutions.
- ‘China’s Miramax’ Gets Green Light for Homecoming Listing — Bona Film Group to relist in Shenzhen, three years after leaving the Nasdaq.
- China’s Other TikTok-Like App Sensation Sprints Toward Hong Kong IPO — Kuaishou’s newly filed prospectus shows a company with explosive revenue growth, even as its losses also balloon.
- Another Chinese Distiller Tops 1 Trillion Yuan Valuation — Shenzhen-listed Wuliangye Yibin joins Shanghai-traded Kweichow Moutai in top market-cap club amid strong liquor demand.
- Not Just Trending Videos, ByteDance Invests in E-Literature Firm IReader — ByteDance is further expanding into the e-book market with a sizable investment in one of China’s largest digital literature companies.
- Alibaba Sale of $128 Million in Shares of Medical Firm Raises Questions Over Ant Group — A unit of e-commerce giant Alibaba Group Holding Ltd. has sold some of its shares — worth nearly 850 million yuan ($128 million) — in medical checkup services provider Meinian Onehealth Healthcare Holdings Co. Ltd.
- ByteDance Goes on Hiring Frenzy in China — ByteDance is embarking on a hiring spree in China despite facing pushback in some of its overseas markets as the company accelerates its business expansion.
- Nio Tops GM in Market Value, Buoyed by Bets on Electric Future — Chinese electric car maker Nio Inc. now has a bigger market valuation than 112-year-old General Motors Inc., as investors bet on strong growth in electric vehicle adoption in the people’s republic over the next five years.
South China Morning Post
- China’s central banker remind the global markets that the yuan’s challenge to the US dollar is still very much on — Investors wondering how China plans to evolve its financial markets in the coming years need look no further than the commentary from the weekend’s Bund Summit in Shanghai for guidance.
- China accuses US of double standards as it drops ETIM from terrorism list — The US State Department has removed the East Turkestan Islamic Movement (ETIM) from its list of terrorist organisations, a move a Chinese analyst says could encourage attacks against China.
- Tencent insists it is a collaborator, not a disrupter, of China’s financial markets — Tencent Holdings’ president said the company is working closely with regulators to make it clear that it is not bringing disruption to the industry, but collaboration.
- US measures against Hong Kong unlikely to be rolled back under a Joe Biden presidency, analysts say — Donald Trump’s earlier moves to sanction Hong Kong officials and end the city’s special trade status are unlikely to be rolled back, even if his challenger Joe Biden secures the US presidency, political watchers say.
- US-China rivalry: Biden likely to boost ties with Asian allies to keep Beijing in check, observers say — A Joe Biden presidency is unlikely to mean a reduction in the United States’ efforts to contain China as regardless of who is in the White House, Washington will continue to boost ties with its Asian allies to keep Beijing in check, observers say.
- 5G has been heralded as a tech game changer but consumers in China are underwhelmed by spotty coverage and hard sell — As a busy Beijing-based banker, Kelvin Li relies heavily on his smartphone for messaging, email, and video calls during his frequent business trips, but he finds that reception can be spotty on his travels.
- Coronavirus: China extends ban on foreign visitors to eight more countries, including India, France and Russia — China has suspended entry for foreign visitors from a further eight countries as it seeks to prevent importing the coronavirus.
- China-Australia relations: looming ban on Australian goods clouds Shanghai import expo — China’s informal ban on at least seven Australian products, set to take effect on Friday, is casting a pall over an import expo in Shanghai where the central government is trying to project an image of promoting free trade and goodwill.
- China’s Genshin Impact, TikTok top world’s mobile game, app charts in October — Genshin Impact soared to the top of the charts as the world’s most profitable mobile game in October, as ByteDance-owned TikTok remained the most downloaded app globally in the same month, according to a new report.
- China’s semiconductors: Latest US export controls may hinder ambitions to catch up — Tighter US export controls on emerging technologies will prove a new barrier to China’s goal of catching up to the west in advanced semiconductor manufacturing and a Biden Administration would be unlikely to roll them back, say analysts.
Bloomberg
- Xi Eyes Sub-5% Growth Rate in New Vision for Chinese Economy — President Xi Jinping is signaling his long-term vision for the Chinese economy likely requires it to expand at a average pace of less than 5% a year, well below the historical trend over the past 30 years.
- Why China Changed the Rules on Jack Ma’s Ant Group — A turnabout in rhetoric from Chinese authorities — and new rules they slapped suddenly on its lucrative consumer-loan business — signal the once-fertile landscape for the fintech industry has changed. The first casualty was Ant’s $35 billion mega-listing on the eve of its debut in Shanghai and Hong Kong.
- Australian Exporters on Edge as China Trade Deadline Arrives — Australian exporters are on high alert on Friday as the deadline arrives for traders in China, its biggest market, to stop buying at least seven categories of the country’s commodities.
- NYU, Duke Retain Lucrative Students With China-Based Campuses — NYU Shanghai, Duke Kunshan, and others host scholars unable to travel because of the pandemic.
- UBS Sued for $500 Million by Chinese Tycoon Over Deal Gone Awry — Guo Wengui, a wealthy Chinese businessman with close ties to Steve Bannon, stepped up his fight to claim $500 million from UBS Group AG that he lost after the bank called in a margin loan.
- China Starts Talking Stimulus Exit Again as Economy Recovers — China’s central bank once again raised the topic of exiting its monetary easing policies, in sharp contrast to the U.S. and Europe, where a resurgence in virus cases has forced governments there to consider more stimulus.
- StanChart CEO Says Biden More Likely to Engage With China — Standard Chartered Plc Chief Executive Officer Bill Winters said a new U.S. administration led by Joe Biden would be more likely to engage with China to defuse some of the tensions that have been building over the past four years.
- Shipping Camels to China Is Goal of Sudan’s $140 Million Port — A Chinese-built port for shipping livestock from Sudan’s Red Sea coast will be completed by year-end, the latest African component of Beijing’s Belt and Road Initiative, a Sudanese company official said.
- Pfizer Says U.S. Has Requested Information on China Operations — Pfizer Inc. has received informal requests from the U.S. Securities and Exchange Commission and Department of Justice for information on its China operations, according to a regulatory filing dated Nov. 5.
- Jack Ma Had It Right About One Thing — Fintech isn’t the biggest risk to a creaking financial system. It’s part of the solution.
- U.S. Will Need Japan More as China Tensions Rise, Suga Aide Says — Friction between the U.S. and China means Washington will need Japan more than before, regardless of who wins the presidential election, according to a foreign policy adviser to Prime Minister Yoshihide Suga.
Reuters
- Richemont bets big on China, partnering Alibaba to invest in Farfetch — Richemont said a $1.1 billion partnership with Alibaba to invest in online luxury retailer Farfetch and its new Chinese marketplace would further drive sales in its biggest and fastest growing market.
- Toyota, Honda double profit outlook as China rebounds from pandemic — Japan’s two biggest car manufacturers, Toyota Motor and Honda Motor on Friday more than doubled their operating profit forecasts, helped by recovering demand in China as it rebounds from the coronavirus pandemic.
- Investors march back into China bets after Ant IPO halt, U.S. vote — The shock suspension of Ant Group’s massive share offering and a possible Joe Biden U.S. presidency have become fresh tailwinds for China’s stock market, as investors rush to snap up a piece of an economy recovering rapidly from the coronavirus pandemic.
- Hong Kong leader Lam discussed coronavirus, economic relief with Beijing — Hong Kong leader Carrie Lam said on Friday she had discussed coronavirus controls and economic relief measures with mainland Chinese officials during her three-day trip to Beijing and that the central government has welcomed her proposals.
- China’s central bank says Ant’s IPO suspension is to safeguard consumer, investor interests — The decision to suspend Ant Group’s planned initial public offering in China was based on a comprehensive consideration about safeguarding the interests of financial consumers and investors, a senior central bank official said on Friday.
- Exclusive: GM thinks bigger in China with plan to import full-size SUVs — General Motors Co plans to sell full-size sport-utility vehicle (SUV) models in China for the first time, and will import a range of models to beef up its product lineup into the world’s biggest car market, its China chief told Reuters.
- China’s central bank says it won’t be hasty with policy changes — China’s central bank will consider policy changes as the economy recovers, but it will not make hasty moves and any shifts would be based on accurate economic assessments, a vice governor of the People’s Bank of China (PBOC) said on Friday.
- China’s Hengfeng Bank ex-chairman Cai sentenced to death with two-year reprieve — A Chinese court sentenced on Friday the former chairman of Hengfeng Bank, Cai Guohua, to death with two-year reprieve after convicting him of abuse of power, corruption, embezzlement, receiving bribes and illegal loans, the court said.
- China’s exports seen maintaining momentum; import growth cools: Reuters poll — China’s foreign trade is expected to have grown quite strongly in October due to a recovery in global markets and the domestic economy, a Reuters poll showed, but there are fears that the coronavirus upsurge overseas could slow trade in coming months.
- Ford’s Chinese ventures October sales jump as SUVs, vans lead demand recovery — Ford Motor Co’s Chinese ventures reported higher vehicle sales for October from a year earlier, as strong demand for sport-utility vehicles (SUVs) and vans continued to support its recovery in the world’s biggest auto market.
- China expects service imports to reach $2.5 trillion over five years: Shanghai Securities News — China’s Ministry of Commerce expects the country’s service imports to reach $2.5 trillion over the next five years, the official Shanghai Securities News said, citing a report from the ministry.
- AstraZeneca’s COVID-19 vaccine to begin clinical trials in China: executive — AstraZeneca Plc plans to start early and mid-stage clinical trials of its COVID-19 vaccine candidate in China this year, a senior executive said on Friday, as it prepares a global rollout of the vaccine.
- Apple must face shareholder lawsuit over CEO Cook’s China sales comments — Apple Inc has been ordered to face a proposed class-action lawsuit by shareholders who accused Chief Executive Tim Cook of concealing falling demand for iPhones in China, resulting in billions of dollars of investor losses.
- Alibaba beats sales forecasts on China e-commerce growth — Alibaba Group beat third quarterly revenue estimates on Thursday, driven by e-commerce growth after China emerged from coronavirus lockdowns, and said it was assessing the suspension of its affiliate Ant Group’s listing.
Xinhua
- Standard Bank says holding of CIIE indicator of China’s economic recovery — Africa’s largest bank by asset, Standard Bank, said the holding of the China International Import Expo (CIIE) sends a strong signal that China’s recovery was underway following the negative impact on the global economy by the COVID-19 pandemic.
- China vows to further strengthen financial support for real economy — China will continue to encourage financial institutions to make interest concessions appropriate for the real economy with more targeted measures, a senior official said Friday.
- China Exim Bank ups financial support for CIIE buyers — The Export-Import Bank of China (China Exim Bank) on Friday signed contracts on-site with 45 enterprises participating in the ongoing third China International Import Expo (CIIE), providing a total of more than 53 billion yuan (about 800 million U.S. dollars) of financing.
- China’s expanding domestic market “good news” for Italian companies: Italy China Foundation — China’s decision to expand its domestic market is good news for Italian companies to export their products to China, the Milan-based Italy China Foundation said Thursday in a statement.
- Autonomous driving startup Pony.ai raises 267 mln USD in latest funding — Pony.ai, an autonomous driving startup based in the southern Chinese city of Guangzhou, announced Friday that it has raised 267 million U.S. dollars in its series C funding, which pushes the company’s valuation up to more than 5.3 billion U.S. dollars.
- Hong Kong stocks close 0.07 pct higher — Hong Kong stocks closed up 17.05 points, or 0.07 percent, to 25,712.97 points on Friday.
- Chinese shares close lower Friday — Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down 0.24 percent, at 3,312.16 points.
Other Publications
- Nikkei Asian Review: TikTok owner ByteDance in fundraising talks for $180bn valuation — Existing investors Sequoia and General Atlantic could contribute to $2bn target.
- The Economist: China’s “dual-circulation” strategy means relying less on foreigners — Xi Jinping sees the creation of fully domestic supply chains as a matter of national security.
- POLITICO: The 5G challenges the next White House will inherit — U.S. carriers don’t have the right airwaves or network architecture for widespread 5G use just yet.
- BBC: Boohoo, H&M and Nike deny Uighur forced labour allegations — Fashion brands including Boohoo, H&M and Nike have denied using products made with the forced labour of Uighur Muslims in China. The brands, which included The North Face, were speaking to MPs conducting an inquiry.
