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 Says It Has Met Its Deadline of Eliminating Poverty — A Communist Party milestone is announced with little fanfare, as the final few counties in a nationwide drive are declared poverty-free.
- Boeing and Airbus Bicker While China Reaches for the Sky — The U.S. and EU have a common interest in ending their fight over airplane manufacturing.
- China Ordains First Bishop Since Renewing Pact with Vatican — Sign of improved ties was followed by friction over pope’s comments on China’s treatment of Uighur Muslims.
- Xiaomi’s Gain at Huawei’s Expense Might Not Last — Xiaomi’s performance last quarter was buoyed by the struggles of rival Huawei. Investors seem to expect those gains will be permanent.
The Financial Times
- China live-streaming: virtual money — As tech giants reassess business models, investors should do the same with their expectations.
- China scrubs internet posts on positive economic impact of Covid-19 — Academic’s suggestion that country would profit from pandemic sparks online backlash.
- China tightens grip on booming livestreaming sector — New rules come as Beijing seeks to increase control over country’s huge internet groups.
- Lessons from China’s decision to halt Ant Group’s giant IPO — Intervention by Beijing might spur entrepreneurs to take a lower profile.
- China launches mission to bring back moon rocks — The country’s accelerating space programme raises concerns of an extraterrestrial arms race.
- China’s renminbi on course for record six-month run — Country’s economic recovery and higher interest rates lure investors into currency.
- String of defaults tests safety net for Chinese bonds — Incidents shake investors’ faith that local governments will always bail out state-owned borrowers.
The New York Times
- What Does China Think U.S.-China Relations Should Look Like? — Why we published an Op-Ed by a Chinese official.
- Cooperative Competition Is Possible Between China and the U.S. — A former vice foreign minister of China proposes a way forward for the world’s two leading powers.
- China Says It Remains Open to the World, but Wants to Dictate Terms — China’s leader, Xi Jinping, is pursuing a strategy to make the country’s economy more self-sufficient, while making other places more dependent on it than ever.
Caixin
- U.K. Pension Fund’s Chinese Portfolio Managers See More Foreign Money Flowing Into China — A quick post-Covid economic recovery and relatively high returns are attracting more foreign investors to Chinese stocks and bonds.
- Zhou Xiaochuan Suggests China and Singapore’s Digital Currency Cooperation Should Start With Retail — Ex-PBOC chief says focusing on retail sales would be safer and more efficient way of trialing digital currency.
- Baoshang Bank Cleared to Start Bankruptcy Proceedings — Failed regional lender with $32 billion financial black hole will be China’s first commercial lender to be liquidated via judicial process.
- After Jack Ma’s Tirade, Alibaba’s Grateful Zhang Soothes Market Watchdogs — Chairman and CEO thanks government for encouragement, pledges support for regulation.
- Covid-19 No Barrier to Top Toy Retailer Going Public This Year — Pop Mart wins approval for Hong Kong listing against declining sales at its brick-and-mortar stores.
- In Depth: Lack of Coordination, Cooperation Plague Self-Driving Car Navigation Services — Vast numbers of satellite base stations are being built as companies rush to develop their own national networks.
- Xiaomi-Backed Smart Wearables Maker Huami Sees Profits Slump Despite Revenue Growth — Huami, a wearable high-tech device maker which is part of Chinese electronics giant Xiaomi’s ecosystem, could not escape a financial quandary in the third quarter, as it enjoyed modest growth in revenue and shipments but suffered a dramatic drop in profit.
- Baidu Maps Illegally Using Other Chinese Firm’s Mapping Info, Court Finds. — An intellectual property court has ordered search giant Baidu to pay a fine of 64.5 million ($9.82 million) by the end of the week for continuing to use another company’s digital maps after the licensing contract expired.
- U.S.-Listed Chinese Electric Scooter Maker Niu Rides to Higher Profits — U.S.-listed Chinese electric scooter maker Niu Technologies saw both their revenue and profits grow in the third quarter as the startup sold significantly more products globally.
- Chinese E-Commerce Firm Ruhnn Focusing on Online Celebrities Sees Losses Narrow — Ruhnn Holding Ltd., a Chinese company that promotes e-commerce through key opinion leaders (KOLs), saw a decrease in revenue in the third quarter as sales slowed, but its net losses narrowed due to lower fulfillment spending, the cost of third parties processing and delivering orders.
- China’s Kaixin Nears 1000% Annual Gain on Electric Vehicle Rally — A jump in premarket trading for Chinese electric vehicle maker Kaixin Auto Holdings will bring total gains to the stock close to the 1,000% mark as investors’ euphoria with the sector lifted industry shares across the globe.
South China Morning Post
- US Treasury Secretary pick Yellen faces huge challenge to reconcile China trade policy, support American economy — Janet Yellen will step into a difficult role as US Treasury Secretary, facing the immediate need to support a domestic economy at risk of slowing significantly due to the latest surge in the coronavirus pandemic, while beginning the delicate task of reversing some Trump-era trade measures imposed on China and other countries, analysts said.
- As much as US$500 million of Australian coal sit on ships off China’s coast as spat between nations shows no sign of easing — More than US$500 million worth of Australian coal is on ships anchored off Chinese ports, as a diplomatic spat between the two countries cuts into trade, idles a portion of the world’s dry bulk carriers and threatens to spiral into a humanitarian crisis.
- ‘It’s hard for women over 50 to find jobs’: retirement age revision plans in China spark anger — Xiao Xue, a stay-at-home mother in Shanghai, is excited she will be celebrating her 50th birthday next year because she will be eligible to receive pensions.
- China reminds EU to chart its own course as European leaders reach out to Biden — China called on the European Union to keep charting its own course on Beijing on Monday as US president-elect Joe Biden reached out to the bloc’s political leaders to build a transatlantic alliance.
- China’s Premier Li Keqiang orders provincial governments to ‘tell the truth’ about economic conditions — Chinese Premier Li Keqiang has told local government officials they must “tell the truth” about regional economic conditions so they can take the necessary steps to create more jobs, spur consumption and expand “effective investment”.
- Taiwan starts building submarine fleet amid military threats from Beijing — Taiwan has started building its first domestically developed submarine, with a US combat system, as it tries to boost the self-ruled island’s defences against increasing military threats from Beijing.
- China must boost education quality ‘to avoid middle income trap’, rising inequality — China must improve enrolment and the quality of high school education, particularly in rural areas, if it is to transition to a high-income country, researchers say.
- China debt: Beijing may cut belt and road lending due to domestic pressure, to ensure future of project — President Xi Jinping last week doubled down on China’s commitment to his grand foreign policy project, the Belt and Road Initiative, but opinions are split over the sustainability of such investment amid a backdrop of rising debt at home.
- China-Australia relations: ex-foreign minister says Canberra must drop adversarial approach to fix ‘frozen’ relationship — Only a herculean shift in foreign policy, a change of government or major external event will thaw a “frozen” relationship between China and Australia that has been damaged by a lack of diplomacy from Canberra that has compounded over the past three years, according to former Australian foreign minister Bob Carr.
- Former MTR chairman and minister Fred Ma enters fray as tussle for Convoy sharpens in Hong Kong’s biggest fraud case — One of Hong Kong’s best known public figures has entered the boardroom tussle for control of a company at the heart of the city’s biggest fraud case, days before a crucial shareholders meeting to determine the fate of Convoy Global Holdings.
- Xiaomi posts 34 per cent rise in revenue on back of overseas growth as Huawei leaves a gap — Xiaomi Corp, one of the world’s largest smartphone vendors, on Tuesday posted a 34.5 per cent increase in third-quarter revenue on the back of strong growth overseas, but warned of potential supply chain constraints during this quarter.
- TikTok maker ByteDance launches a new casual game store and indie publisher to take on Tencent and NetEase — With the recent launch of a new casual gaming platform and independent games publisher, TikTok maker ByteDance is continuing a push into an entertainment segment in China long dominated by competitors Tencent Holdings and NetEase.
Bloomberg
- Carson Block’s ‘Insane Alpha’ Fades in Bad Year for Shorts — Carson Block is having an unusually tough time betting against Chinese stocks.
- Japan and China Agree to Restart Two-way Travel by End November — The foreign ministers of China and Japan agreed at a meeting in Tokyo to lift some virus-related travel restrictions by the end of the month, while also re-stating their differences over disputed islands in the East China Sea.
- Tiffany’s Earnings Gain Shows Demand Boost From China, Online — Tiffany & Co. had strong earnings growth in one of its last reports before being taken over by LVMH, helped by a resurgence of demand in China and e-commerce.
- China Debt Defaults Set to Top 100 Bln Yuan for a Third Year — China’s corporate debt defaults are set to exceed 100 billion yuan for a third consecutive year, underscoring the pandemic’s disruption of a government campaign for greater fiscal stability.
- Xiaomi’s Sales Grows Fastest in Two Years After Huawei Slide — Xiaomi Corp. posted its fastest pace of revenue growth in more than two years after the Chinese smartphone giant grabbed market share from Huawei Technologies Co. when American sanctions deepened.
- U.K. Looks at Huawei Install Ban Next Year to Placate Hawks — The U.K. is considering a ban on the installation of Huawei Technologies Co. 5G equipment as soon as next year to appease hawks pushing for tighter restrictions on the Chinese network equipment maker, according to people familiar with the matter.
- These AAA Bonds Are Tumbling as China Default Fears Spread — A string of defaults by Chinese state-owned companies has sent shockwaves across the world’s second-largest credit market.
- JD’s Logistics Unit Said to Mull IPO at $40 Billion Valuation — JD.com Inc.’s logistics unit is considering an initial public offering that could raise at least $5 billion, according to a person familiar with the matter.
- Rally 2.0 On for Emerging Markets as Stocks Add $8 Trillion — The much-awaited rally 2.0 in emerging-market stocks may already be under way.
- Asian Stocks Are Luring the Biggest Foreign Flows Since 2013 — Foreign investors are piling money into major Asian equity markets outside of China at the fastest pace in seven years this quarter, as vaccine successes add to the global risk-on mood.
- China and Japan Race to Dominate Future of High-Speed Rail — Japan and China are racing to build a new type of ultra-fast, levitating train, seeking to demonstrate their mastery over a technology with big export potential.
- SoftBank-Led Round Values Uber-Like Truck Startup at $12 Billion — Full Truck Alliance has raised $1.7 billion from investors including SoftBank Group Corp. and Tencent Holdings Ltd., a major cash infusion for the Uber-like trucking startup ahead of a potential initial public offering.
- York Capital to Spin Off $2.7 Billion Asia Hedge Fund Firm — York Capital Management’s move to exit most of its hedge fund business will lead to the creation of a new Asia-based firm with $2.7 billion of assets, according to a letter to investors.
- China Credit Stress Shines Spotlight on Private Stock Deals — An increasingly popular fundraising tool in China is offering a potential lifeline for cash-strapped companies, as a string of high profile defaults tightens scrutiny of the country’s credit market.
- China’s Record Farm-Goods Spree May Still Miss Pledge to U.S. — The Asian nation is expected to buy a record $27 billion worth of farm-related goods from the U.S. in the 12 months ending Sept. 30, the Department of Agriculture said in a report Monday. That’s $8.5 billion more than the agency projected in August, and would make China the biggest American agricultural market for the first time since fiscal 2017, before the trade war.
- U.K. Law May Fine Carriers 10% of Sales for Breaching Huawei Ban — The U.K. government has proposed a law that will fine phone companies as much as 10% of sales or 100,000 pounds a day ($133,000) if they break new telecom security rules, including the forthcoming ban on Huawei Technologies Co.’s equipment for 5G networks.
- U.S., China Shouldn’t Force Others to Choose Sides: Morrison — Australian Prime Minister Scott Morrison has warned that intensifying competition between the U.S. and China is pressuring other nations to choose sides, and urged the superpowers to give governments “more room to move.”
- SEC Pressures China Firms’ Listings, Warning of Accounting Risks — Securities and Exchange Commission officials are pressing Chinese companies with stock trading in the U.S. to make sure investors are aware of the potential risks they face because of limits on American regulators’ ability to review their books.
- China Exceeds WTO Corn Quota For First Time as Demand Soars — China surpassed for the first time ever an annual corn-import quota set by the World Trade Organization as the second-largest economy continues to buy grain to feed a growing hog population.
- Philippines Is in Talks With 4 Vaccine Makers for Purchase — The Philippines is in talks with four vaccine makers including AstraZeneca PLC and Sinovac Biotech Ltd. for advanced purchases, as one of Southeast Asia’s virus hotspots targets to secure 60 million doses next year.
- Tesla’s Relentless Surge Propels EV Peers Amid Growing Optimism — The rally in electric-vehicle stocks received a fresh boost of confidence on Monday from Wedbush Securities, which said there is now a “major inflection” in EV demand globally.
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.
- China approves four coal mines in Xinjiang region — China’s National Energy Administration had approved four coal mine projects in western Xinjiang region to ensure stable energy supply, it said in online statements.
- Britain warns tech firms over risks of China expansion — The British government launched a website on Tuesday warning digital and technology firms of the ethical, legal and commercial risks of expanding into China and accepting Chinese investment.
- Analysis: China’s bond defaults show Beijing’s war on debt is back — A spurt of missed debt repayments by three Chinese state-owned firms – a coal miner, a chipmaker and an automobile company – has shaken local markets and heightened speculation that a campaign to wean the economy off heavy credit is back.
- China tells Britain to curb double standards on six-monthly Hong Kong reports — China urged Britain on Tuesday to curb its colonial mindset, hypocrisy and double standards, in a response to its series of six-monthly reports on the former colony of Hong Kong.
- China’s Manila mission says ‘dangerous’ U.S. creating chaos in Asia — China’s embassy in the Philippines has denounced the United States for “creating chaos” in Asia, after a visiting White House envoy backed countries in disputes with China and accused Beijing of using military pressure to further its interests.
- Sweden’s Scania to start making trucks in China after acquisition — Swedish truck maker Scania, a unit under Volkswagen AG’s commercial vehicle arm Traton SE, has bought a truck company in China to start making vehicles for the first time in the world’s biggest auto market, it told Reuters.
- China calls launch a success as robotic spacecraft heads to moon — China hailed as a success its pre-dawn launch on Tuesday of a robotic spacecraft to bring back rocks from the moon in the first bid by any country to retrieve lunar surface samples since the 1970s, a mission underscoring Chinese ambitions in space.
- Pope, for first time, says China’s Uighurs are ‘persecuted’ — In a new book, Pope Francis for the first time calls China’s Muslim Uighurs a “persecuted” people, something human rights activists have been urging him to do for years.
- China gives pledge on access for COVID origins probe: WHO — The World Health Organization (WHO) has had assurances from China that an international field trip to investigate the origins of the new coronavirus will be arranged as soon as possible, its top emergency expert said on Monday.
Xinhua
- National Retail Federation expects U.S. holiday sales to grow despite pandemic — The National Retail Federation (NRF) on Monday forecasted that holiday sales during November and December will increase between 3.6 percent and 5.2 percent over 2019 despite uncertainty due to COVID-19.
- China’s pension fund reaps 9 pct investment return — China’s basic pension fund saw a return on investments of 9.03 percent last year, the Ministry of Human Resources and Social Security said Tuesday.
- China to boost financial cooperation with Singapore: officials — China will strengthen cooperation with Singapore to promote greater financial connectivity, according to officials.
- China’s Chongqing to see further financial opening-up — China will support the southwest Chongqing Municipality in playing a bigger role in the country’s financial opening-up, according to Shanghai Securities News.
- China sees robust growth in commercial aerospace industries — The number of Chinese enterprises in commercial aerospace industries has exceeded 160, according to an international aerospace forum held in Wenchang City, south China’s island province of Hainan on Tuesday.
- China Mobile, China State Construction ink strategic 5G integration agreement — China Mobile and China State Construction Engineering Corporation on Wednesday signed a strategic cooperation agreement to enhance the complementarity of resources, technologies and markets.
- China vows to expand global free trade area network — China will step up efforts to expand the free trade area network across the world to enlarge its “circle of friends”, according to China’s Commerce Minister Zhong Shan.
- Xinjiang’s border port sees record China-Europe freight trains — The number of China-Europe freight trains entering and leaving via Horgos Port in northwest China’s Xinjiang Uygur Autonomous Region has exceeded 4,000 so far this year, a record high despite the impact of COVID-19, customs authorities said Tuesday.
- China’s freight service firm Manbang raises 1.7 bln USD — Manbang Group, China’s leading domestic freight service platform, raised 1.7 billion U.S. dollars in its latest round of fundraising, the company announced Tuesday.
- Tokyo stocks close at 29-year high on U.S. presidential transition — Tokyo stocks ended sharply higher Tuesday, with the benchmark Nikkei stock index closing at its highest level since May 1991, as investor sentiment boosted after the U.S. federal agency greenlighted Joe Biden’s presidential transition.
- Chinese shares close lower on Tuesday — Chinese stocks closed lower on Tuesday, with the benchmark Shanghai Composite Index down 0.34 percent to 3,402.82 points.
Other Publications
- Global Times: Chinese private satellite firm Galaxy Space attracts new funds — Chinese satellite company Galaxy Space has completed a new round of fund-raising that could push its market value to almost 8 billion yuan ($1.22 billion), making it the first unicorn enterprise in China’s commercial space and satellite internet industry.
