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 President Xi Jinping Personally Scuttled Jack Ma’s Ant IPO — Senior government leaders were furious about wealthy entrepreneur’s criticisms of regulators; rebuke was the culmination of years of tense relations.
- China Congratulates Joe Biden on Election Victory — Foreign Ministry nods to win after more U.S. media project Arizona loss for Trump.
- Asia-Pacific Countries Push to Sign China-Backed Trade Megadeal — The 15-nation pact would create a second broad regional bloc without the U.S. as a member.
- Trump Bars Americans From Investing in Firms That Help China’s Military — Ban applies to 31 companies including state-run aerospace, shipbuilding and construction enterprises.
- Tencent Pledges Cooperation as China Scrutinizes Competition on Internet Platforms — Internet company’s revenue and earnings surge as pandemic lifts videogame business.
- Beijing Attacks America’s New Investment Blacklist — China’s government says measures are malicious, abusive and unreasonable.
- Beijing Slams Hong Kong Opposition as U.S. Threatens More Sanctions — China reacted to the mass resignation of pro-democracy legislators as it tightens its grip on the city.
The Financial Times
- China/Trump: banned camp — Latest executive order ratchets up an existing problem faced by investors.
- British ‘hong’ Swire drops out of Hong Kong’s stock index — Colonial era conglomerate’s replacement by Chinese delivery app marks shift to mainland.
- US ban on China military-linked stocks creates investor woe — Trump executive order poses compliance challenge for fund managers.
- China congratulates Joe Biden for winning US election — Beijing had held off acknowledging Democrat’s victory as Trump still refuses to concede.
- US investors barred from shares in China military-linked companies — Donald Trump keeps up pressure on Beijing despite US election loss.
- A creeping crackdown is under way in Hong Kong — Ousting elected lawmakers undermines key principles of democracy.
- Tencent revenue surges as Chinese antitrust regulators circle — Online gaming business continues to benefit from pandemic lockdowns.
The New York Times
- China Congratulates Biden on Presidential Victory — “We respect the choice of the American people,” a spokesman for the country’s Ministry of Foreign Affairs said, ending days of conspicuous silence about the election result.
Caixin
- Caixin Summit: Former Central Bank Chief Denies China Engages in ‘Debt-Trap’ Diplomacy — Zhou Xiaochuan reiterates China’s commitment to multilateralism while other countries ‘pass the buck’ on international support.
- Default by Henan Coal Mining Company Sends Tremors Across China — State-owned Yongcheng Coal fails to repay $151 million, setting off chain reaction through coal industry and disrupting bond sales and prices in other provinces.
- Caixin Summit: Biden Won’t Change China-U.S. Ties in Short Run, Says China’s Former Finance Minister — Lou Jiwei also says Beijing should look to normalize its monetary policy as the country pulls out of the pandemic.
- Strong China Rebound on Horizon as Consumption Revives, Banks Say — Goldman Sachs and UBS see GDP expanding 7.5% in 2021 while CICC projects 9% growth in post-pandemic environment.
- In Depth: The Local Governments on Track to Smash Rail Monopoly — Affluent provinces step into vacuum left as China’s national rail operator pivots to long-haul routes.
- American Air Restarts China Flights as Travel Curbs Ease — Carrier is allowed two flights a week from Texas to Shanghai, with Hainan Airlines and Sichuan Airlines also set to resume service.
- Pinduoduo’s Third-Quarter Revenue Jumps 89% — Upstart online retailer gains ground on Alibaba in post-pandemic China by targeting less-affluent buyers in smaller cities with bargain generic goods.
- PUBG Mobile Plans Return to India with New Game — The mobile version of “PlayerUnknown’s Battlegrounds” (PUBG Mobile), which was banned in September in India due to links with its Chinese publisher Tencent, will return to the South Asian country under a new name.
- EHang’s Aerial People-Mover Logs Maiden Flight in Seoul — Chinese aerial vehicle-maker EHang launched the maiden flight of its EHang 216 — the firm’s flagship self-flying people-mover — in South Korea on Wednesday.
South China Morning Post
- Coronavirus: China must win over global partners for post-pandemic economic recovery: analyst — How China manages its messages for a global audience is critical as the world struggles with decoupling, or duality, brought on by the coronavirus pandemic, according to a London-based China specialist.
- China’s military aims to use AI to dominate in cyber and outer space, Japanese think tank warns — The Chinese military is aiming to utilise cutting-edge technologies like private sector-developed artificial intelligence to enhance its offensive capability in domains such as cyberspace and outer space, a Japanese defence ministry think tank warned on Friday.
- Our tense rivalry with US will foster political volatility in China, warns domestic security chief — The rivalry between China and the United States will give rise to threats to Beijing’s political stability, a top Communist Party security official warned.
- China-Africa relations: Beijing says it will help pay for world’s largest free-trade zone — China says it will help to finance the development of an Africa-wide free-trade area, which on completion will be the world’s largest, spanning 55 nations with a combined GDP of US$3.4 trillion and about 1.3 billion consumers.
- China-Australia relations: dispute leaves 400 seafarers stranded with US$200 million of Australian coal held up — An estimated 400 seafarers and roughly 2 million tons of coal are stuck on ships off the northeast coast of China, as a spiralling diplomatic row with Australia threatens to turn into a humanitarian crisis.
- China’s air traffic climbs again in October as ‘golden week’, cheap deals drive recovery — China’s air travel industry continued to rebound in October as pent-up demand during the “golden week” holiday and so-called fly-at-will promotions boosted traffic.
- US-China tech war: who is the ‘virtuous’ man Xi Jinping says is a model for other businesspeople? — Chinese President Xi Jinping has invoked a Qing dynasty (1644-1911) industrialist as an example for the country’s entrepreneurs to follow as the Communist Party tries to harness the private sector to spur national development.
- South China Sea: China asks Asean for quick resolution to code of conduct — Chinese Premier Li Keqiang called for the quick conclusion of a code of conduct for the South China Sea during a summit with leaders of Southeast Asian countries, as Beijing seeks to consolidate its influence in the region amid growing pressure from the US.
- Trump bans US investments in what he calls Chinese ‘military-controlled’ companies, sending Hong Kong, China markets lower — Donald Trump upped the ante in his conflict with China even as he refused to concede the presidential election 10 days ago, with an overnight executive order banning American investments in companies with suspected ties to the “Communist Chinese military.”
- China’s Copyright Law sees biggest amendment in two decades, and omits highly controversial clause — A highly controversial clause in an amendment to China’s Copyright Law that would hand regulators great power was significantly played down when lawmakers passed the final version this week.
- China-Australia relations: ex-PM Malcolm Turnbull urges Canberra not to ‘buckle under pressure’ from Beijing — Australia should not “buckle under pressure” from an onslaught of trade actions from Beijing and change its stance on controversial bilateral issues with China, according to former prime minister Malcolm Turnbull.
- Budweiser, Anta Sports and food delivery giant Meituan get green light to join Hong Kong’s benchmark Hang Seng Index — Chinese online food delivery giant Meituan will become a major constituent of the Hang Seng Index from December 7, in a long-awaited move that will further raise the status of technology companies in Asia’s third-largest stock market.
- Hong Kong economy forecast to shrink by record 6.1 per cent for full year although coronavirus relief measures cushion blow — Hong Kong’s economy was expected to shrink by 6.1 per cent this year – the lowest on record – the government said on Friday after weighing the city’s performance in the first three quarters and the cushioning effects of its massive coronavirus relief measures.
- China Hi-Tech Fair shows post-pandemic innovation around AI, robotics, smart city — Hi-tech innovation for a post-pandemic world took centre stage in China’s biggest technology show, which kicked off its five-day run in Shenzhen on Wednesday, as the country’s economic recovery gains momentum.
Bloomberg
- China’s State Grid to Pay $3 Billion for Naturgy LatAm Assets — State Grid Corp. of China will pay 2.57 billion euros ($3 billion) for an electricity network company in Chile, its first overseas deal in almost a year and a move that resumes its expansion abroad.
- China-Australia Spat Strands 400 Seafarers as Human Crisis Looms — An estimated 400 seafarers and roughly 2 million tons of coal are stuck on ships off the northeast coast of China, as a spiraling diplomatic row with Australia threatens to turn into a humanitarian crisis.
- Hong Kong Sees GDP Contraction Near Low End of Forecast Band — Hong Kong’s economy will probably contract 6.1% this year, close to the lower end of the government’s forecast range, amid signs the city is starting to emerge from a deep recession spurred by political protests and then the coronavirus outbreak.
- Trump’s Taiwan, Hong Kong Support Poses Early Test for Biden — After Donald Trump’s election in late 2016, the then-president-elect took an unprecedented phone call from Taiwan’s leader Tsai Ing-Wen, shattering decades of diplomatic protocol and prompting angry protests from China.
- China’s Oil Giant Eyes New Supertankers to Shrink Fuel Glut — China’s biggest refiner is eyeing a creative strategy to help rid Asia of a persistent diesel glut — brand new supertankers usually reserved for crude oil.
- Trump Bans Investments in Firms Controlled by China Military — U.S. President Donald Trump signed an order barring American investments in Chinese firms owned or controlled by the military, the latest White House bid to pressure Beijing over what it views as abusive business practices.
- Hillhouse Says It Has No Interest to Take Soho China Private — Hillhouse Capital Management said it has no interest in taking Soho China Ltd. private. The Chinese property developer’s stock pared gains.
- Stress in China’s Credit Market Spills Over to Financial Stocks — The default of a Chinese coal miner has triggered mounting concern over the health of state-owned firms and their lenders.
- China’s $900 Billion Funding Gap to Provide Clue on Stimulus — Eyes are on China’s central bank for any signal of potential monetary easing, as a $900 billion funding shortage raises concerns over tighter liquidity.
- Tencent to Work With Regulators as Clampdown Looms — Tencent Holdings Ltd. pledged to work with Beijing and control an expansion into the fintech arena, to ensure it remains compliant as the government escalates oversight over the Chinese internet industry.
- China State Banks Said to Cut Corporate Bond Exposure Amid Rout — A number of Chinese banks are cutting their holdings of corporate bonds, with some focusing on notes sold by state-owned firms, after a string of defaults roiled the market, according to people familiar with the matter.
- World’s Biggest Free-Trade Deal Set to Be Signed This Weekend — Fifteen Asia-Pacific nations including China aim to clinch the world’s largest free-trade agreement this weekend.
- Traders Are Betting on Tencent Over Alibaba as Stocks Swing — Traders looking to cash in on the wild swings in Chinese internet stocks this week are betting that the two biggest firms will run in opposite directions.
- Hong Kong Has $6 Billion of IPOs on the Way Before Year End — Investors mourning Ant Group Co.’s suspended mega-listing can take consolation in the otherwise rude health of Hong Kong’s initial public offerings.
- U.K. Summons China Envoy, Declares Hong Kong Treaty Breach — The U.K. summoned China’s ambassador to protest the disqualification of pro-democracy legislators in Hong Kong, a move it said breaks the joint agreement on political and legal conditions in the former British colony.
- CK Hutchison to Use Tower Sale Proceeds for Share Buyback — Hong Kong conglomerate CK Hutchison Holdings Ltd., which just agreed to sell its Europe tower assets to Spain’s Cellnex Telecom SA for 10 billion euros ($11.8 billion), said it plans to use part of the proceeds to buy back shares that have slumped 28% this year.
- Tencent Climbs After Reassurances on China’s Internet Clampdown — Tencent Holdings Ltd. rose more than 2% after reassuring investors about an antitrust crackdown by Chinese regulators, in the most extensive public remarks by any of the country’s major technology companies since proposed regulations hammered their stocks this week.
- Nio Stock Surge Tops 1,000% as Tesla’s China Nemesis Gains Speed — A year ago, Nio Inc.’s dwindling cash and sputtering sales had the electric-car upstart on the brink of doom. Fast forward, and the stock’s 11-fold gain in 2020 has pushed the Chinese company’s market value past General Motors Co.
- Why Is China Regulating Big Tech Now? — The K-shaped recovery is proof of widening inequality. That doesn’t sit well with Beijing.
- Stranded Coal Ships Caught in Crosshairs of China-Australia Spat — At least 20 giant bulk carriers are anchored off the Chinese port of Jingtang and unable to offload millions of tons of Australian coal, the latest casualty of the growing diplomatic row between Canberra and Beijing.
- G-20 Looks to Deepen Debt Relief With China’s Coordination — Policy makers from the world’s largest economies are set to meet Friday to iron out the details of a plan for debt relief to the poorest countries battered by the Covid-19 pandemic.
- Canada Widens Welcome Mat for Hong Kongers Amid China Crackdown — Justin Trudeau’s government is easing immigration requirements for Hong Kong residents to settle in Canada in response to China’s crackdown in the former British colony.
- Huawei Prosecutors Let Accused Chinese Professor Return Home — A Chinese professor accused of stealing trade secrets for Huawei Technologies Co. will plead guilty to a reduced charge and be allowed to return to China, lawyers told a U.S. judge on Thursday.
Reuters
- Naturgy sells Chilean unit to China’s State Grid for $3 billion — Spanish power company Naturgy said on Friday it had agreed to sell 96% of its Chilean utility Compania General de Electricidad to China’s State Grid International Development for 2.57 billion euros ($3.04 billion).
- Vale, Chinese port sign $651 million deal on iron ore storage, processing — Brazil’s Vale and China’s Ningbo Zhoushan Port have signed a deal to invest around 4.3 billion yuan ($650.6 million) in iron ore storage and processing facilities in Zhejiang, a local government statement said on Friday.
- China drafts rules to govern its booming livestreaming sales industry — China’s internet watchdog has drafted rules for the first time to regulate the country’s livestreaming marketing industry, stepping up scrutiny on e-commerce marketplaces belonging to the likes of tech giant Alibaba Group and JD.Com.
- Analysis: Surprise defaults may slow global stampede into China bonds — A smattering of high-profile Chinese debt defaults this week may give bullish foreign investors pause and likely dampen the debt sales outlook, bankers and analysts said, as a bond market selloff revived worries about flaky government support.
- Next move unclear amid China curbs, says Hong Kong democrat, but ‘we will be back’ — The mass resignation of Hong Kong’s opposition lawmakers leaves the pro-democracy movement with no clear option in its fight against Communist Party rulers in Beijing, one of the outgoing legislators said on Friday, but she promised not to give up.
- China approves Shanghai Fosun’s unit to run human testing for BioNTech’s COVID-19 vaccine — Shanghai Fosun Pharmaceutical Group said on Friday that its unit has received clinical trial approval from China’s National Medical Products Administration for a COVID-19 vaccine candidate developed by German firm BioNTech.
- India, China close in on plan to end months of military standoff — Seeking to end a dangerous military standoff in the western Himalayas, India and China are formulating a plan that involves creating no-patrol zones, pulling back tanks and artillery, and using drones to verify the withdrawal, Indian officials say.
- China Unicom says Trump order to ban U.S. investments in Chinese firms may hit share price — China Unicom Hong Kong Ltd said on Friday the Trump administration’s executive order to ban U.S. investments in some Chinese firms will impact its controlling shareholder, and expects trading in its U.S. shares to be hit.
- As disputed Pakistan region votes, locals want share of Chinese investment boom — As night falls on a remote mountain road in northern Pakistan, Ijaz ul Haq, 22, is keeping his grocery store open longer than usual, hoping to cash in on a frenzied electoral campaign that has brought the nation’s interest upon this otherwise neglected region.
- China’s sweeping COVID controls put frozen food importers on ice — The WHO says the risk of catching COVID-19 from frozen food is low, but China has repeatedly sounded alarms after detecting the virus on packaging of products ranging from German pork knuckles to Ecuadorian shrimp, triggering disruptive import bans.
- China’s private refiner Xinhai to more than double refining capacity — China’s private refiner Xinhai Group expects to more than double its crude oil refining capacity by the end of 2021, a company spokeswoman said on Friday, which would make it the biggest oil processor in northern China’s Hebei province
- China urges U.S. to stop arbitrary suppression via U.S. investment bans — China is urging the United States to stop its arbitrary suppression of investments, foreign ministry spokesman Wang Wenbin told reporters on Friday, when asked about the ban on U.S. investments in firms linked to the Chinese military.
- Analysis: Grain grab – China’s global hunt for feed grains roils world market — Chinese feed producers, pig farmers and traders are reshaping the global grain market as they scour the world for supplies amid a domestic shortfall that sent local corn prices to record highs and is expected to fuel global food inflation in 2021.
- Former China finance minister says trade frictions with U.S. could remain under Biden — Trade frictions between the United States and China may not ease in the near term even if Joe Biden becomes president, former Chinese finance minister Lou Jiwei said on Friday.
- Breakingviews – Trump fires messy parting shot at Beijing — Donald Trump is firing a parting shot at Beijing. To stop more money from flowing into the People’s Republic, the lame-duck U.S. president signed an executive order to block U.S. investment in Chinese companies deemed to be military-backed. The decision creates another headache for American fund managers and momentum for further decoupling that may be hard to roll back.
- Australia expects ‘technical’ issues blighting trade with China to be resolved — Australia expects that “technical” issues disrupting trade with China will be resolved as soon as possible, deputy foreign affairs and trade secretary Christopher Langman said on Friday.
- Daimler to revamp China plant to make Actros trucks as sales surge — Germany’s Daimler AG and its China commercial vehicle partner Beiqi Foton Motor Co plan to invest 2.75 billion yuan ($415.32 million) to build Mercedes-Benz-branded Actros heavy trucks for the first time in China, a document showed.
- Factbox: List of 31 Chinese companies designated by the U.S. as military-backed — The Trump administration on Thursday unveiled an executive order prohibiting U.S. investments in Chinese firms that Washington says are owned or controlled by the Chinese military.
- China says hopes for IMF consensus on new SDR allocation — China’s top official at the International Monetary Fund said the United States was currently cautious about a new allocation of Special Drawing Rights, the IMF’s own currency, but he hoped a consensus for new allocation could be reached in the future.
- China suspends fish imports from Indian firm after coronavirus detected — China’s customs office said on Friday it will suspend imports from India’s Basu International for one week after detecting the novel coronavirus on three samples taken from the outer packaging of frozen cuttlefish.
- Chinese companies to build largest bridge in Brazil — A consortium of Chinese companies signed a contract with the government of Brazil’s Bahia state on Thursday to build a 12-kilometer (7.5-mile) bridge across the entrance of the bay opposite the city of Salvador.
Xinhua
- China’s new yuan loans rise in October — China’s new yuan-denominated loans hit 689.8 billion yuan (about 104.4 billion U.S. dollars) in October, a year-on-year increase of 28.5 billion yuan, data from the central bank showed Wednesday.
- 4-bln-yuan crystalline silicon project breaks ground in China — Construction of a high-purity crystalline silicon production project worth 4 billion yuan (604 million U.S. dollars) has started in southwest China’s Yunnan Province.
- Deals worth over 300 bln yuan expected to be signed at investment fair — A total of 380.5 billion yuan (44.19 billion U.S. dollars) worth of deals are expected to be signed at an investment fair which opened Friday in Shenyang, northeast China’s Liaoning Province, organizers said.
- Auction houses welcome China’s art collection market pilot reform — Major auction houses have welcomed China’s move to allow more foreign investment into the art collection market in Shanghai, as part of a pilot reform.
- China’s airliners maintain safe record with flight punctuality improving — China’s civil aviation sector maintained a safe record in October, with passenger and cargo volume striving to recover to pre-epidemic levels, the country’s aviation regulator said Friday.
- Chinese port city sees cross-border e-commerce orders soar during shopping festival — The northern Chinese port city of Tianjin saw its cross-border e-commerce orders surge during the Singles’ Day shopping promotions.
- China’s Hunan sees robust foreign trade growth — Central China’s Hunan Province saw robust foreign trade growth in the first 10 months of this year, customs data showed on Friday.
- Leading Hungarian bedding company sees huge potential in Chinese market at CIIE — Hungarian bedding company Naturtex is looking forward to expanding exports to China after its successful participation in the China International Import Expo (CIIE), according to the firm’s international business coordinator.
- China’s Ningbo Zhoushan Port, Brazil’s Vale to build joint company — China’s mega-port operator Ningbo Zhoushan Port Co., Ltd. has signed a deal with Vale International S.A. to establish a joint venture in east China’s Zhejiang Province, said the Chinese company.
- Lazada makes new Singles’ Day shopping festival record — Alibaba Group’s Southeast Asia flagship platform Lazada has made a new record for Singles’ Day shopping festival once again, with more than 40 million users and 400,000 brands and sellers participating in the one-day sales event this year across the region.
Other Publications
- The Economist: China is curbing imports of more and more Australian goods — It may have more than one motive.
- Nikkei Asian Review: China’s auto brands fail to shine in race with foreign rivals — Electric vehicles could shift consumer opinions as top leaders call for tech independence.