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
- Nearly 1 Million Chinese People Have Received Drug Maker’s Covid-19 Vaccines — Sinopharm reports no adverse reactions in mass vaccinations but hasn’t presented evidence of efficacy in trials.
- U.S. Businesses in China More Optimistic With Biden Presidency — American companies hopeful bilateral relations stabilize, with some still concerned about employees’ health and safety in China.
- China’s Detention of Entrepreneur Raises Fresh Concerns About Vulnerability of Private Firms — Authorities have taken control of Sun Dawu’s businesses after his company and employees clashed with a state-backed rival.
- Trade Truths Will Outlast Trump — The president’s failed experiments with tariffs and bilateral deals helped validate old best practices.
The Financial Times
- Joyy shares jump after record plunge in wake of short-seller report — Unit of US-listed Chinese tech company was attacked by Muddy Waters.
- Why China could snarl global debt relief — A new common framework for restructuring looks great, but there are complications.
- China’s economic recovery jeopardises Xi’s climate pledge — The country’s post-pandemic revival has been stoked by coal-powered industry.
The New York Times
- How Steve Bannon and a Chinese Billionaire Created a Right-Wing Coronavirus Media Sensation — Increasingly allied, the American far right and members of the Chinese diaspora tapped into social media to give a Hong Kong researcher a vast audience for peddling unsubstantiated pandemic claims.
Caixin
- Carlyle Group to Invest More in China’s New Economy Sectors — Leading U.S. private equity firm to shift focus towards Chinese tech and renewables.
- China’s U.S. Treasury Holdings Drop to Lowest Since Early 2017 — Chinese holdings of U.S. debt have fallen for four months in a row.
- China Sells First Negative-Yielding Sovereign Bonds — In $4.7 billion borrowing, China’s sale of bonds with terms of 5, 10 and 15 years is wildly oversubscribed, resulting in minuscule yields.
- Yongcheng Coal Bond Default Probe Expands to More Institutions — Financial intermediaries under investigation include Industrial Bank, China Everbright Bank and Zhongyuan Bank, regulator says.
- Caixin Summit: Equity Chief Who Backed Lenovo’s Global Push Still Bullish on China — Bill Ford hopes the Biden administration will recognize U.S., China will stay intertwined for years to come.
- U.S. Executives in China Looking Forward to Biden Administration — AmCham Shanghai president said survey results show businesses expect president-elect to stabilize U.S.-China relationship.
- China’s Stumbling Sprint to Semiconductor Self-Sufficiency — Country has hosed cash into a sector filled with small companies without the talent or know-how to grow into the titans it wants.
- In Depth: Silver Dollar or Plug Nickel? Debt-Challenged Chip Giant Takes Investors on Roller Coaster Ride — Tsinghua Unigroup’s bonds have crashed several times this year on concerns about the $24 billion it owes, reflecting a bigger issue facing China’s inexperienced microchip industry.
- NetEase Posts 27.5% Increase in Third-Quarter Revenue — Chinese video game giant beats estimates as it continues to benefit from a demand surge amid the Covid-19 pandemic.
- China to Attack Unfair Competition With New Ministry-Level Task Force — Continuing regulatory crackdown, State Council assigns 17 central government ministries to help rein in tech giants’ online dominance.
- WeWork’s China Rival Completes U.S. Backdoor Listing — Ucommune Group Holdings Ltd., a Chinese shared workspace provider sometimes called the WeWork of China, has completed a backdoor listing in the U.S. after failing to make a more traditional IPO earlier this year.
South China Morning Post
- China keeps benchmark loan rate steady for seventh straight month — The one-year loan prime rate (LPR) was kept unchanged at 3.85 per cent, while the five-year LPR remained at 4.65 per cent.
- Huawei leads the world in wireless communication patents in 2020, ahead of Qualcomm — report — The Shenzhen-based company filed 8,607 wireless patents in the January to October period.
- China’s regulators put up a fence around risks as technology’s surging influence threatens to overshadow finance in fintech — Over the past five years, China’s household debt levels grew at a pace similar to the US ahead of the global financial crisis.
- Hong Kong stocks complete third week of gains in biotech-driven rally while auto stocks fuel markets in mainland China — Hang Seng Index rose 0.4 per cent for a third weekly advance to highest level since March, auto stocks powered Shanghai Composite Index.
- China to set up conference system to oversee unfair market practices after drafting guideline to shackle tech titans — The system will be led by the State Administration for Market Regulation, with representatives from 17 parties and ministries, cabinet circular shows.
- Shanghai maps out course to raise listed companies’ quality in a bid to burnish financial hub credentials — Shanghai will encourage listings of hi-tech companies, market-based asset restructuring and get tough on delisting, according to a 17-point guideline.
- Chinese social media Joyy refutes Muddy Waters’ fraud claim, saying its metrics are ‘commonly used’ by live-streaming industry — Livestreaming has become a key revenue engine for companies in the internet sector, Joyy said in a statement.
- China’s Belt and Road Initiative may damage world’s oceans, or help save them — Construction of new ports, and expansion of existing ports, could lead to a loss of coastal marine habitat equivalent in size to 69,500 football fields.
Bloomberg
- China Oil Giants Said to Mull Deal for Exxon Field in Iraq — China’s oil giants China National Petroleum Corp. and CNOOC Ltd. are considering acquiring Exxon Mobil Corp.’s remaining stake in an oil field in Iraq, which could fetch at least $500 million, according to people familiar with the matter.
- Fosun’s Unit Rallies on Debut After Biggest India Pharma IPO — Gland Pharma Ltd. rallied in its trading debut on Friday after the initial public offering of the Chinese-owned drugmaker raised $873 million in India’s biggest-ever IPO by a pharmaceutical firm.
- Japan Allocates $2.4 Billion to Beef Up Supply Chains — Japan is continuing its efforts to diversify its supply chains and beef up factories at home after Covid-19 and trade wars exposed the risk of being too concentrated in outside markets including China.
- China Deepens Probe on Banks After Busted Bond Deal — China’s market regulator expanded its investigation into bond sales for a state-backed coal miner that unexpectedly defaulted on payments last week, dragging in a number of banks, rating and accounting firms.
- China Reaches Out to Key U.S. Allies After Biden Election — China’s top diplomat will seek to shore up ties with two U.S. allies next week, as the countdown to the end of President Donald Trump’s administration prompts a recalibration of Beijing’s relations with close neighbors.
- Taiwanese Businesses Boost Investment Into China During Pandemic — Taiwanese businesses boosted investment into China this year, despite Taipei’s push to reduce economic reliance on its giant neighbor amid a U.S.-China trade war and a growing military threat from Beijing.
- Chinese Crypto Mogul Emerges After Probe That Forced OKEx Halt — The founder of one of the world’s largest Bitcoin exchanges broke a month-long silence to proclaim his innocence Friday, making his first comments since a Chinese police probe forced OKEx to briefly suspend withdrawals of all cryptocurrency assets.
- Hong Kong Police Probe Campus Protest for Security Crimes — Hong Kong police are investigating a campus protest over suspected violations of a security law imposed by China’s central government, fueling growing concerns about curbs on freedom of expression in the Asian financial center.
- PBOC Set to Look Through Credit Pain as it Tapers Stimulus — China’s central bank remains on course to taper its emergency support even as a string of defaults by government-linked companies sends tremors through the credit markets.
- U.S. Firms Turn Upbeat on China After Biden Win, AmCham Says — Just over half of American companies are more optimistic about doing business in China on expectations of better trade relations with the U.S. under a Biden administration, according to a survey from the American Chamber of Commerce in Shanghai.
- China’s Joyy Rises 17% After Contesting Muddy Waters Report — The stock of Joyy Inc. surged after the Chinese livestreaming video giant disputed allegations of fraud by short seller Muddy Waters, saying its analysis showed a fundamental misunderstanding about the fledgling industry.
- China’s Trade Pressure on Australia Will Likely Fail — For many countries, the argument for diversifying exports and supply chains is suddenly a lot more persuasive.
- China Cosmetics Firm Yatsen Jumps After $617 Million IPO — Chinese cosmetics company Yatsen Holding Ltd. rose 75% in its trading debut after raising $617 million in a U.S. initial public offering priced at the top of a marketed range.
- Soybeans Edge Higher as China Demand, Brazil Weather Weighed — Soybean futures closed higher after swinging between gains and losses as investors weighed global scarcity against signs of beneficial weather in Brazil, the world’s top producer and exporter. Soybean oil extended a rally to a six-year high, and grains declined.
- China Defies Elon Musk’s Warnings and Pushes Ahead With Hydrogen — Tesla Inc. Chief Executive Officer Elon Musk has spent years mocking the idea of using hydrogen fuel cells rather than electric batteries to power next-generation green vehicles. “Fuel cells = fool sells,” the boss of the world’s top electric-car maker tweeted in June.
Reuters
- Beijing seeks talks on joint inspection of U.S.-listed Chinese firms — China’s securities regulator said on Friday it looked forward to holding discussions with its U.S. counterparts as soon as possible on “specific plans” to conduct joint inspections of Chinese firms listed in the United States.
- Daimler, Geely mull China as production hub for hybrid powertrains — Daimler AG and Geely Holding on Friday said China could emerge as a manufacturing and export hub for hybrid powertrains jointly developed for Volvo and Mercedes-Benz cars.
- Chinese minister to visit South Korea amid hopes for Xi trip, North Korea talks — China’s foreign minister will visit South Korea next week for talks that will include North Korea and the novel coronavirus, the South Korean foreign ministry said on Friday, as the region prepares for possible changes under a new U.S. administration.
- China court accepts application to restructure parent of BMW’s local partner — A Chinese court has accepted an application from a creditor of Huachen Automotive Group Holding Co Ltd seeking the restructuring of the parent of BMW AG’s joint venture partner Brilliance China Automotive Holdings Ltd .
- Plan to raise China’s retirement age sparks anger — A decision by the Communist Party of China to raise the retirement age under a long-term economic and development plan has sparked anger on social media in fast-greying China.
- Saudi Arabia and Russia in tight race to become China’s top oil supplier in 2020 — Saudi Arabia and Russia are in a tight race to become China’s top oil supplier in 2020, with both countries boosting crude exports to the economic powerhouse even as the coronavirus pandemic hit global demand for oil this year.
- China says has given $2.1 billion of debt relief to poor countries — China has extended debt relief to developing countries worth a combined $2.1 billion under the G20 framework, the highest among the group’s members in terms of the amount deferred, the country’s Finance Minister Liu Kun said on Friday.
- Japan aims to expand CPTPP trade pact as UK, China eye membership — Japan aims to expand a major regional free trade pact called the CPTPP, Prime Minister Yoshihide Suga said on Friday, potentially catering for China’s and Britain’s interest in joining the deal.
- Most U.S. companies in China optimistic about Biden administration: business group — Over 60% of American businesses in China are more optimistic about doing business in China after the results of the United States presidential election, according to a business group survey released on Friday.
- China-led shift to electric vehicles to help end ‘oil era’: study — An aggressive China-led shift to electric vehicles is expected to slash global oil demand growth by 70% by 2030 and will help bring an end to the “oil era”, according to research by the Carbon Tracker think tank published on Friday.
- Main rival to Canada PM Trudeau says he would be tougher on China, may boycott some goods — Canadian Prime Minister Justin Trudeau’s main rival in an election that could come as early as next year on Thursday said he would toughen the country’s stance on China, including potentially boycotting some goods produced there.
- China’s carbon neutrality pledge undermined by coal power plans: study — China’s plan to build more coal-fired power “contradicts” its pledge to go carbon neutral by 2060 and risks creating 2 trillion yuan ($303.60 billion) in stranded assets, according to new research published on Friday.
Xinhua
- Shanghai’s paid-in foreign investment up 6.2 percent in Jan.-Oct. — Shanghai’s paid-in foreign investment rose by 6.2 percent year on year in the first ten months of the year, authorities said Thursday.
- Consumption a greater driver for Chinese economy in 2021 — Private consumption could emerge as a greater driver of the Chinese economy in 2021 with the release of increased precautionary savings and a full recovery of the job market, according to a research report from Morgan Stanley.
- China’s Hubei sees tourism boom in autumn, winter — Central China’s Hubei Province, once hard hit by the COVID-19 epidemic, has received more than 53 million tourists since a tourism promotion event was launched on Aug. 8.
- 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.
- 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 shares higher at midday Friday — China’s major stock indices ended higher in the morning session Friday, with the benchmark Shanghai Composite Index up 0.1 percent at 3,366.54 points.
Other Publications
- RWR Advisory: China’s CCCC Bidding on Strategic Paraguay-Parana Waterway Project — On November 18, a Paraguayan official from the Ministry of Public Works confirmed that a subsidiary of China Communication Construction Company (CCCC), Shanghai Dredging Co., is among five companies still under consideration for a bid to expand and manage a 1,238-kilometer (km) section of the 3,300 km Paraguay-Parana waterway, situated in Argentina at the confluence of the Parana and Paraguay rivers and the Rio de la Plata.
- Nikkei Asian Review: Ant Group IPO-linked Chinese funds to return $9bn to investors — Asset companies also seek approval to set aside 18-month lockup requirement.
- The Economist: Why commercial ties between Taiwan and China are beginning to fray — The relationship that helped build China’s economy faces new challenges.
- Foreign Affairs: China Has Made Drone Warfare Global — The United States Must Join the Market or Be Left Behind.
- POLITICO: Export credit talks collapse amid U.S.-China frictions — China is a member of the International Working Group on Export Credits, but did not sign onto the joint statement.
- DefenseNews: When China’s predatory investments go unnoticed — By Rep. Jim Banks In May, I introduced legislation to temporarily restrict acquisitions of U.S. companies and assets by the People’s Republic of China (H.R. 6706).
- POLITICO: China’s tech authoritarianism too big to contain — Democracies will need to work together to counter China’s military-industrial complex.
