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 Urges New Era of Mass Migration—Back to the Countryside — In antipoverty push, President Xi wants to repopulate rural towns with entrepreneurs and consumers; ‘there was hope in our hometown’.
- GOP Report, Like Biden, Urges Multilateral Approach to China — Republicans on Senate Foreign Relations Committee recommend putting aside differences with Europe that have rankled ties.
- Business Roundtable Chief Urges Biden to Ease Trump’s Tariffs on China — Head of influential group says rolling back levies could revive trade talks.
- Chinese EV Maker Nio Is Accelerating Too Fast — The reviving electric-vehicle market has revved Nio back up, but investors are letting the adrenaline rush go to their heads.
- Tesla Rival Nio Posts Sharply Higher Sales — Shares of Chinese electric-vehicle maker have soared this year.
- Local Shoppers Are Luxury Brands’ Hedge Against Covid-19 — In a reversal of long-term trends, sales to European and American consumers will be stronger than to the Chinese in 2020.
The Financial Times
- China pharma shares fall as western rivals lead in vaccine trials — Groups including CanSino look to developing markets to gain edge.
- Chinese tech group joins list of companies to default on bond issue — Tsinghua Unigroup is highest profile state-owned enterprise to default in recent weeks.
- China aims for more sway over copper prices with futures launch — Analysts say renminbi-denominated contracts open to foreign investors could become global benchmark.
- Foreign investors pile back into booming China — Beijing says country is a ‘safe harbour’ after its rapid recovery from the pandemic.
The New York Times
- Why Do Chinese Liberals Embrace American Conservatives? — It’s less about foreign policy than the culture wars.
Caixin
- Another Day, Another Chinese Corporate Bond Default — Display panel manufacturer fails to pay $10 million in interest on two notes.
- Everbright Unit Takes Over Hong Kong Brokerage — Buying the remaining 30% of Sun Hung Kai Financial will help Everbright develop cross-border wealth management, the company said.
- HKEX to Slash IPO Settlement Time to 1 Day From 5 — New system would make Hong Kong bourse one of the world’s quickest from pricing to trading debut, perhaps luring more listings.
- SOE Bond Defaults Show Up on Radar of China’s Top Economic Planner — Local governments should step up supervision of borrowing by state-owned enterprises, NDRC says after a series of high-profile defaults.
- China Tells Farmers Not to Misuse Farmland in Nod to Food Supply Concerns — New guidelines call for farmland to be prioritized for grain production, not other economic purposes.
- Q&A: Huawei’s Man in Sweden Talks Tech Bans and Free Competition — Kenneth Fredriksen says restricting use of the Chinese company’s equipment in the country’s 5G network will have negative consequences, including ‘loss of competitiveness and innovation power’.
- E-Commerce Upstart Pinduoduo Plans to Raise New Funds Through Sales of Convertible Bonds and ADSs to Boost Growth — U.S.-listed Chinese e-commerce upstart Pinduoduo plans to raise $1.75 billion through the sale of convertible senior notes, according to a company statement released Tuesday.
- Satellite Startup GalaxySpace Worth $1.2 Billion After Latest Funding — GalaxySpace, a Beijing-based startup that makes broadband communications satellites, on Tuesday announced the completion of a new funding round which pushed its value to 8 billion yuan ($1.2 billion), reflecting growing investor interest in an emerging field of space-related companies.
- YTO Express Workers Lease Accounts to Criminals, Compromising 400,000 Users — Five employees at a major Chinese package delivery company leased their internal employee accounts to criminal groups, compromising more than 400,000 users’ personal information.
South China Morning Post
- Taiwan rejects licence renewal for Beijing-friendly tycoon’s news channel — Taiwan refused on Wednesday to renew the licence of a news channel widely seen as pro-China, effectively shutting it down, citing evidence of interference from a Beijing-friendly tycoon amid fears over China’s campaign to win support on the island.
- Hong Kong rolls out red carpet to offer city as Asian family offices hub to manage the fortunes and investments of wealthy clans — Hong Kong, with a record number of multimillionaires among the city’s population, is rolling out the red carpet to attract family offices to use the city as a regional hub for managing the fortunes and investments of wealthy clans.
- China’s semiconductor dream takes a hit as local authority takes over ‘nightmare’ Wuhan factory — A cash-strapped Chinese semiconductor factory described by its former chief executive as a “nightmare” has been taken over by the Wuhan government in a setback for China’s pursuit of chip autonomy.
- China-Australia relations: Canberra reached out to Beijing at ‘every possible level’, minister says — Australia has “reached out at every possible level and pathway in terms of writing to Beijing” in a bid to repair fraying tensions with China, but will not budge on its criticism of “international human rights obligations”, trade minister Simon Birmingham said on Wednesday.
- China-Australia relations: wine piling up keeping Sydney exporter awake at night ahead of peak season — Australian wine exporters should be preparing for their peak selling season, the months preceding Christmas and Lunar New Year celebrations in China. They are instead watching stockpiles of product mount in warehouses as its biggest market clamps down on shipments from the country.
- China-Europe rail trade imbalance growing due coronavirus, demand for PPE — The coronavirus may have pushed China’s freight shipments to Europe via rail to record highs, but far fewer trains have returned with European products, according to data from China’s state railway operator and external analysts.
- China-Australia relations: Beijing blames Canberra for trade spat, citing grievances from Huawei to Taiwan — China has rejected Australia’s claim that the “ball is in its court” regarding resolution of their escalating trade dispute, providing a long list of alleged offences that have “greatly hurt the feelings of the Chinese people”.
- HSBC is in from the cold as China’s finance ministry adds bank in latest €4 billion bond sale after previous exclusion — HSBC is one of a dozen banks chosen to manage the latest international sale of Chinese sovereign bonds after it was left off a dollar-denominated sale last month for the first time since the country resumed issuing international debt in 2017.
Bloomberg
- SEC Pushes Urgent Plan That Could Delist Chinese Companies — The U.S. Securities and Exchange Commission is pushing ahead with a plan that threatens to kick Chinese companies off U.S. stock exchanges, setting up a late clash between Washington and Beijing as the Trump administration winds down.
- China Euro Bond Draws Bumper Demand Amid Low Borrowing Costs — Investors’ thirst for euro bonds from the Chinese sovereign shows no sign of abating, as the nation once again pulled in huge orders for a triple-tranche sale in the common currency.
- Tencent Is Said to Invest in Online Education Startup Udemy — Chinese technology company Tencent Holdings Ltd. is a lead investor in a funding round that valued the online education startup Udemy Inc. at more than $3 billion, according to people familiar with the matter.
- Here’s a List of 31 Chinese Firms Named in U.S. Investment Ban — Here are the 31 firms identified by the U.S. Department of Defense as “Communist Chinese military companies” operating directly or indirectly in the U.S.
- China’s Credit Jitters Deepen a Selloff in Government Bonds — The credit default shock waves rippling through China are hurting demand for sovereign bonds, with market watchers seeing the slide lasting the rest of 2020.
- JPMorgan Indexes Exclude New Debt From Sanctioned Chinese Firms — JPMorgan Chase & Co.’s widely followed debt indexes will exclude new bonds from Chinese companies that fall under sanctions announced last week by Donald Trump’s administration.
- China’s Li Emphasizes Economic Stability Amid Global Recession — Chinese Premier Li Keqiang expressed confidence in the economy, highlighting its stability in a world mired in recession and grappling with a resurgence in coronavirus infections.
- Electric-SUV Maker Nio to Add Sedans as Tesla Rivalry Heats Up — Chinese electric-SUV maker Nio Inc. is expanding into sedans, intensifying its rivalry with Tesla Inc. and its popular Model 3 in the world’s largest electric-vehicle market.
- Ex-Hong Kong Lawmakers Arrested in Latest Blow to Opposition — Three ex-Hong Kong lawmakers were arrested in connection with a disruptive protest in the legislative chamber, as the Beijing-backed government ramps up pressure on the city’s beleaguered opposition.
- China Will Make Data Rules Unless Biden Reverses Trump’s TPP Failure — It’s all about data. The U.S. needs to get back into the Trans-Pacific Partnership, or watch Beijing make the rules.
- Figuring Out China’s Next SOE Default Is a Scary Guessing Game — In China, bondholders once had a good rule of thumb for picking safe, state-owned investments. It no longer applies.
Reuters
- China’s top hotpot chain Haidilao accelerates expansion even as pandemic bites — China’s biggest hotpot chain Haidilao will open more than 400 new restaurants in 2020, exceeding initial estimates by about a third, even as the coronavirus pandemic batters its and the sector’s profits.
- Malaysia in deal with China for COVID-19 vaccine development — Malaysia said on Wednesday it has signed an agreement with China to cooperate on the development of a safe and efficacious vaccine, as part of efforts to combat the COVID-19 pandemic.
- China’s INE considers Singapore for marine fuel futures delivery: sources — The Shanghai International Energy Exchange (INE) is considering using oil storage sites in Singapore owned by PetroChina Co as a delivery point for its low-sulphur fuel oil futures contract, according to two sources with direct knowledge of the matter.
- ‘Better off thanks to China’: German companies double down on resurgent giant — German industrial robot-maker Hahn Automation plans to invest millions of euros in new factories in China over the next three years, keen to capitalise on an economy that’s rebounding more rapidly than others from the COVID-19 crisis.
- China’s oil buying binge to run on in 2021 as tank operators, refiners stock up — China’s commercial oil stockpiling sector, which emerged as a key swing buyer of crude as prices plunged earlier this year, is setting plans to grow again in 2021, supporting a further boost in imports.
- China’s irritated trade partners push back on coronavirus food tests — Major food-producing countries are growing increasingly frustrated with China’s scrutiny of imported products and are calling on it to stop aggressive testing for the coronavirus, which some say is tantamount to a trade restriction.
- Daimler to develop next-generation engines with China’s Geely — German car maker Daimler said on Tuesday it will cooperate with China’s Geely to build next-generation combustion engines for use in hybrid vehicles.
- China’s CNOOC to add six LNG storage tanks at Binhai terminal — China’s biggest offshore oil and gas producer CNOOC Group will add 1.62 million cubic metres of storage capacity for liquefied natural gas (LNG) at its Binhai terminal in the eastern province of Jiangsu.
- Beyond Meat launches plant-based minced pork in China — Beyond Meat Inc on Tuesday launched plant-based minced pork in China, as the faux meat maker seeks to tap into the growing demand for its products in the lucrative Asian market.
- Germany accuses Russia, China of stalling over North Korea fuel sanctions — Germany accused Russia and China on Tuesday of preventing a United Nations Security Council committee from determining whether North Korea has breached a U.N. cap on refined petroleum imports by the isolated Asian state.
- Brazil to receive China’s Sinovac COVID-19 vaccine, eyes Pfizer candidate — Brazil’s Sao Paulo state is set to begin importing the first of 46 million doses of China’s Sinovac vaccine against COVID-19 this week, while the federal government takes a more cautious approach with a vaccine developed by Pfizer Inc.
- Limited impact seen from Trump investment ban on military-linked Chinese firms — President Donald Trump’s directive barring U.S. investments in Chinese companies linked by Washington to China’s military is unlikely to deal the firms a serious blow, experts said, due to its limited scope, uncertainty about the stance of the incoming Biden administration and already-scant holdings by U.S. funds.
- Japan, Australia reach security pact amid fears over disputed South China Sea — Japan and Australia agreed on a breakthrough defence pact on Tuesday allowing reciprocal visits for training and operations, and voiced concern over the disputed South China Sea, where China is extending its military influence.
Xinhua
- McDonald’s to invest heavily in Chinese coffee market — McDonald’s coffee brand McCafe has announced a plan in Shanghai to invest 2.5 billion yuan (about 381.6 million U.S. dollars) in its coffee market in China in the next three years.
- China Development Bank to make huge loans for forest ecology — The China Development Bank (CDB), one of the country’s policy banks, has pledged to step up financial support for forestry ecological construction during the 14th Five-Year Plan period (2021-2025).
- China’s fiscal revenue down 5.5 pct in first 10 months — China’s fiscal revenue plummeted in the first 10 months of this year, down 5.5 percent year on year to around 15.85 trillion yuan (about 2.42 trillion U.S. dollars), official data showed Wednesday.
- China mulls measures to mitigate corporate bond default risks — China will tighten supervision and strengthen cross-department coordination to mitigate risks of corporate bond defaults, the country’s top economic planner said.
- China stresses importance of implementing RCEP trade pact as scheduled — The State Council, China’s cabinet, on Wednesday stressed the importance of domestic efforts to put the Regional Comprehensive Economic Partnership (RCEP) into practice as scheduled.
- Every company should have a China strategy, experts say — Every company should dedicate a chapter of its business strategy to the Chinese market, expert panelists said at an online seminar titled “Hints for a successful strategy in a changing scenario,” which was organized by the Milan-based Italy China Foundation on Tuesday.
- China’s largest land port sees record number of China-Europe freight trains — The number of China-Europe freight trains inbound and outbound via Manzhouli, China’s largest land port, has surpassed 3,000 so far this year, a record high despite the impact of COVID-19, railway authorities said Wednesday.
- Kenyan trade group head lauds Chinese construction firms — The presence of Chinese firms has boosted Kenya’s construction sector, the head of the Institution of Engineers of Kenya (IEK) said on Wednesday.
- Chinese ride-hailing giant DiDi starts operation in Argentina — Chinese ride-hailing app DiDi launched operation in Argentina on Tuesday.
Other Publications
- Macro Polo: Inflection Point: Making China’s EV Industry More Competitive — China has made no secret of its aspiration to lead the global electric vehicle (EV) industry and transform the automotive industry in the process. This is apparent in the 15-year plan on EVs that was released on the heels of Xi Jinping’s commitment to hit peak emissions before 2030 and carbon neutrality by 2060.
- Barron’s: China’s Retail Sales Continue to Climb. What Investors Need to Know. — China’s main economic indicators—including the much-watched retail sector—continued to expand in October, though regulatory turmoil in the white-hot tech space has muddied the outlook for several leading players.
- Nikkei Asian Review: How China’s e-commerce giants enable illegal online gambling — Illegal business has exploded amid COVID-19 pandemic.
- Nikkei Asian Review: Jack Ma vs. the Party: Inside the collapse of the world’s biggest IPO — The charismatic founder has long clashed with China’s leadership. It was only going to end one way.
- Axios: The U.S.-China split in space — This separation in space means the U.S. and China sometimes pursue different technologies and goals, and build separate international collaborations.
- CNBC: China is outpacing the U.S. when it comes to tackling climate change — here’s how it happened — Since President Donald Trump took office in 2017, the U.S. has stepped back from its international climate commitments by leaving the Paris Agreement and rolling back dozens of Obama-era climate policies, leaving a void in international climate leadership that China aims to fill.
