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
- India Bans More Chinese Apps as Part of Its Digital Campaign to Pressure Beijing — Tensions continue to simmer between two countries following deadly border clash earlier this year.
- China Drugmakers Face Pressure to Prove Their Covid-19 Vaccines Work — The companies haven’t released results of late-stage trials while data from Western drugmakers show three candidates to be highly promising.
- Regulatory Pressure Mounts on Coal Miner that Rattled China’s Bond Market — Investigation into state-owned Yongcheng Coal is escalated to country’s securities regulator.
The Financial Times
- China and Japan to resume coronavirus-hit business travel — Governments also forge ahead with multilateral trade deals as they seek to strengthen ties.
- Letter from Seoul: Alibaba’s big disconnect — Beijing’s regulatory overhaul imperils ecommerce group’s top position in the local online shopping space.
- Hong Kong leader vows to deepen ties with Beijing — Carrie Lam uses annual address to hit back at overseas critics for interfering in city.
- Germany frets over its corporate dependency on China — Carmakers are particularly susceptible to pressure from Beijing.
- China sends a message with Australian crackdown — Pressure by Beijing offers a glimpse of the road map for a more illiberal order.
The New York Times
- Pope Calls Uighurs ‘Persecuted,’ Prompting Pushback From China — In a new book, Pope Francis mentioned the crackdown on the Muslim minority group for the first time. Beijing rejected his characterization as “groundless.”
- After Trump, Biden Faces Pressure to Stand Up to China by Embracing Taiwan — In his final days in office, President Trump is trying to undermine Beijing by showing support for Taiwan. President-elect Biden will likely follow a similar path — without the pugnacity.
Caixin
- China Tightens Rules for Scandal-Hit Trust Sector Amid Campaign to Contain Risks — Final version of new regulations will go into effect on Jan. 1 as part of broader effort to improve corporate governance in financial sector.
- Interbank Regulator Finds Signs of Illegal Behavior at SOE That Roiled Bond Market — Evidence of potentially illegal activity at Yongcheng Coal has been passed to China’s securities regulator.
- Chinese Pension Fund Return Shatters Records — Funds entrusted for investment gained 9% in 2019.
- Yongcheng Coal Gets Nine-Month Reprieve to Repay Defaulted Bonds — Henan SOE agrees to pay half now on $152.4 million of bonds that were due Nov. 10 while seeking extensions on 5 other short-term bonds and several medium-term notes.
- China Takes Aim at Underage Splurging on Livestreamers — Companies will be forced to cap the amount that viewers can spend on their favorite performers and prohibit minors from spending money on the platforms.
- China Calls for Fair Treatment After India’s Latest Ban on Chinese Apps — Relations between the Asian giants’ remain cold after border clashes turned bloody this summer.
- China-Backed Effort to Create World’s Largest Iron Mine Is Going Nowhere — Chinese-Singaporean consortium that hoped to bring new momentum has brought more press releases than it has real investment.
- China’s Xiaoice Chatbot Business Set to Raise ‘Hundreds of Million Yuan’ — Popular Microsoft spinoff taps NetEase and Northern Light Venture Capital as it sets up to run as an independent business.
- China’s Uber-Like Truck Platform Raises $1.7 Billion for Business Expansion — Long-haul powerhouse Manbang is set to ramp up challenge to Didi and Lalamove in same-city deliveries ahead of planned IPO.
- Chinese Online Language Educator 51Talk Speaks the Language of Profit — Chinese online language-training platform 51Talk continued to make money in the third quarter, as the company ramped up its marketing spend to enhance its brand awareness.
- Facing U.S. Sanctions, Huawei May See Global Smartphone Share Slump to 4% in 2021 — Huawei may see its global smartphone market share fall to just 4% next year, as it struggles to lessen the effects of a crippling U.S. campaign that limits supplies of handset chips made with American technology to the Chinese tech giant, according to TrendForce.
- Chinese LGBTQ Dating App Owner BlueCity Acquires Youth-Focused Gay Platform Finka — BlueCity, the operator of China’s largest LGBTQ dating app Blued, has accelerated efforts to acquire assets to broaden its services since its U.S. initial public offering (IPO) in July.
South China Morning Post
- Japan calls on China to take ‘positive action’ on Diaoyu maritime dispute in talks — Beijing said it was keen to build a good working relationship with Japanese Prime Minister Yoshihide Suga, even as Japan’s leader challenged China’s assertive behaviour in the East China Sea.
- China’s Liu He vows Beijing will not give up economic opening with ‘dual circulation’ strategy — Vice-Premier Liu He, the top economic adviser to President Xi Jinping, has reiterated that China’s new focus on its domestic market and technological independence does not mean it is cutting links with the rest of the world.
- ‘China wants to lead, rather simply join’: top Australian diplomat takes aim at Beijing’s foreign policy — Australia’s top-ranking foreign affairs bureaucrat has issued a thinly veiled swipe at China for blocking Australian exports, accusing Beijing of disregarding international perceptions as it wields an increasingly assertive foreign policy.
- Coronavirus: Sinopharm applies for regulatory approval from China to launch vaccine, state media reports — A front runner among China’s coronavirus vaccine developers has filed for approval to officially launch its product, after rival vaccines in the United States and Britain got a head start in proving the high efficacy of their candidates.
- US dollar-yuan exchange rate: what is it and why is it important? — What is the yuan’s exchange rate with the US dollar?
- Hong Kong widens Connect stock links for global funds to tap Star Market, tying city’s financial future closer to China’s heft — Hong Kong will broaden its cross-border investment channels with mainland China’s stock exchanges, offering the city as the stepping-off point for international funds to gain access to one of the world’s best-performing capital markets.
- Cost of buying a bigger home is putting Chinese couples off having a second child, survey finds — Buying a bigger home to raise more children is so expensive that parents in China are deciding against having a second baby, undermining government efforts to boost the population, according to a new survey.
- Which Chinese city will be the biggest loser in 2020? It’s not Wuhan — Tianjin, one of China’s four municipalities, is expected to drop out of the country’s top 10 cities in terms of economic size this year for the first time since records began.
- China’s interest in Pacific trade deal sets stage for new US showdown after Xi Jinping ups the ante — On the heels of signing the world’s biggest free trade deal, President Xi Jinping’s announcement that China “will actively consider” joining a formerly American-backed accord has sent a ripple of intrigue across the Pacific Rim.
- China-Australia relations: termination of free trade deal ahead of review unlikely despite tensions, experts say — Bilateral tensions between China and Australia are unlikely to jeopardise the China-Australia Free Trade Agreement (ChAfta) when it is up for its five-year review next month, trade experts say.
- Hong Kong leader’s HK$500 million youth unemployment plan raises doubts, as some accuse Carrie Lam of ‘knowing nothing about city’s young people’ — The Hong Kong government has pledged more than HK$500 million (US$64.5 million) to create thousands of jobs for young people in the technological and entrepreneurial sectors in the Greater Bay Area, as the city’s leader launched her latest bid to tackle soaring youth unemployment and promote integration with mainland China.
- Aberdeen floating restaurant gets starring role in plans for tourism, leisure hub in southern Hong Kong Island — The southern part of Hong Kong Island will be transformed into a tourism and leisure hub including a revitalised Jumbo Floating Restaurant, Chief Executive Carrie Lam Cheng Yuet-ngor announced in her policy address on Wednesday.
- Hong Kong leader pledges to rebuild confidence and restore trust in long-awaited policy address — Hong Kong’s leader unveiled a lengthy policy blueprint on Wednesday aimed at rebuilding confidence in a city beset by political turmoil and financial uncertainty, promising to restore constitutional order and accelerate economic recovery.
- Hong Kong policy address key takeaways: cutting through Carrie Lam’s 30,000-word blueprint to put city ‘back on track’ — Hong Kong leader Carrie Lam Cheng Yuet-ngor’s fourth policy address was her most overtly political yet – and the lengthiest, tying Leung Chun-ying’s record for longest policy blueprint ever.
- Microsoft said to launch Xbox Series X game console in China next year after getting certified — Microsoft Corp’s next-generation Xbox Series X is expected to be released in China next year, according to analysts, after a recent decision by mainland regulators to grant the company a certification for an unnamed video game console.
Bloomberg
- U.S. and China Need to Start Talking Again — However fierce their competition, the increasingly bitter rivals must keep looking for bargains to strike.
- Nintendo Adds Sharp as Assembler of Popular Switch Game Console — Nintendo Co. has added Sharp Corp. as an assembler of its Switch console, according to people directly involved in the matter, as it works to stabilize production and hedge against U.S.-China trade tensions.
- China Confirms Watch List Targeting Taiwan Independence Backers — China confirmed it’s compiling a global watch list of Taiwanese independence backers it plans to “punish,” marking an escalation in Beijing’s pursuit of its critics.
- HSBC Shares Surge on Dividend Bets as Turnaround Gains Steam — HSBC Holdings Plc shares surged as much as 8% in Hong Kong trading on optimism Europe’s biggest lender may soon resume paying dividends as a turnaround gathers speed.
- China Stocks Retreat the Most in 3 Weeks on Liquidity Jitters — China stocks fell by the most this month on concern that liquidity conditions in the financial system are not strong enough to support recent gains.
- H.K. to Expand China Trading Link to Star Board, Biotech (1） — Hong Kong will expand the scope of its trading link to Chinese bourses, a move that will give both local and international investors access to a wider range of securities.
- Singapore Pushes Digibanks in Face of China, U.S. Crackdown — Singapore’s financial regulator will stick with its plans to award digital banking licenses by the end of the year, undeterred by tightening scrutiny in China and the U.S. that’s hitting major Chinese applicants.
- Xiaomi Slides After Internet Services Slowdown Mars Sales Surge — Xiaomi Corp. fell as much as 4.2% Wednesday after disclosing internet services revenue grew at its slowest pace in three years, prodding investors to cash in gains from the Chinese smartphone maker’s 2020 rally.
- India Blocks Several Alibaba Apps in Widening Chinese Blacklist — India banned another 43 Chinese apps including some of Alibaba Group Holding Ltd.’s key shopping services, expanding its mobile blacklist to more than 200 applications.
- JD Unit Seeks up to $3.5 Billion in Asia’s Biggest Health IPO — JD Health International Inc. is looking to raise as much as $3.5 billion in its Hong Kong initial public offering in what would be Asia’s biggest health-care listing on record.
- China’s Li Sees Economy Returning to ‘Proper’ Range Next Year — China will likely return to a more “proper” range of economic development next year, Premier Li Keqiang said, indicating a strong rebound in growth after this year’s pandemic slump.
- ZTE Corp.’s Designation as Security Threat Affirmed by U.S. FCC — The U.S. Federal Communications Commission affirmed its decision to designate ZTE Corp. as a national security threat over concerns telecommunications gear made by the Chinese company could be used for spying.
- China Is Trying to Protect Consumers — and Economic Stability — Beijing is trying out new rules to protect households in credit markets. A lot depends on getting them right.
- Lam Faces Pandemics-to-Politics Test in Key Hong Kong Address — Hong Kong’s leader Carrie Lam faces no shortage of issues to tackle when she delivers her delayed economic policy address Wednesday after another tumultuous year for the Asian financial hub.
Reuters
- Chinese foreign minister arrives in South Korea amid talk about Xi visit — Chinese Foreign Minister Wang Yi arrived in South Korea for talks on Wednesday amid talk of a trip to Seoul by Chinese President Xi Jinping.
- Japan’s Suga calls for stable ties with China in first high-level meeting — In his first high-level meeting with Beijing, Japanese Prime Minister Yoshihide Suga said stable ties with China were important, as his country pursues a balancing act with its neighbour.
- China’s imports of U.S. soybeans surge in October — Chinese imports of U.S. soybeans surged almost three-fold in October on a year-on-year basis, customs data showed on Wednesday, as cargoes booked following a Phase 1 trade deal between the United States and China arrived in the country.
- Exclusive: India import hurdles hit Apple iPhone, Xiaomi devices from China, say sources — India’s tight control of quality clearances for electronic goods from China slowed the import of Apple’s new iPhone model last month and held up other products made by companies like Xiaomi, according to two industry sources.
- China’s CO2 emissions will be higher in 2020 than in 2019, says IEA’s Birol — China’s greenhouse gas emissions will increase in 2020 compared to 2019 as they have rebounded after the COVID-19 outbreak, the head of the International Energy Agency said on Wednesday.
- China’s Xi wants to build good relations with Suga: China FM — Chinese President Xi Jinping wants to build good working relations with his Japanese counterpart Yoshihide Suga, China’s foreign minister said on Wednesday.
- Chinese buyers look to cancel U.S. soybean orders as processing margins shrink — Some Chinese soybean importers and processors are looking to cancel deals signed for U.S. cargoes for December and January shipment, after crushing margins collapsed following a steep rally in Chicago futures, three trade sources said.
- BioNTech, Fosun start Phase II trial of COVID-19 vaccine in China — BioNTech and Shanghai Fosun Pharmaceutical said on Wednesday they would launch a Phase II clinical trial of BioNTech’s experimental COVID-19 vaccine in China.
- China and Indonesia sign $1.5 billion thermal coal deal — China will buy $1.467 billion worth of thermal coal from Indonesia next year, the Indonesian Coal Mining Association (APBI) said on Wednesday.
- Japan PM Suga says stable Japan-China ties are important — Japanese Prime Minister Yoshihide Suga said on Wednesday a stable relationship with China was important.
- Nestle sells Yinlu business in China amid portfolio cleanup — Nestle has agreed to sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co Ltd, a company controlled by the family of Yinlu founder Chen Qingshui, the world’s largest packaged food group said on Wednesday.
- At China’s premier internet conference, few address the regulatory elephant in the room — China’s annual World Internet Conference is usually a forum for luminaries from the country’s online giants and government bodies to discuss pressing issues of the day.
- China construction machinery industry cheers strong 2020 sales but outlook uncertain — China’s strong construction machinery sales are expected to continue until at least early next year but could be hobbled by any slowdown in Beijing’s recent infrastructure investment drive, industry executives said.
- Luxury fans in China chase neat shot of investment with vintage Moutai liquor — As luxury spending rebounds in China, consumers with money to burn have a new habit beyond fancy bags and watches: a taste for collector editions of fiery domestic liquor Moutai, not to drink but to hold onto as a rapidly appreciating investment.
- Analog Devices shares dip as Huawei ban complicates 5G growth in China — Analog Devices Inc on Tuesday forecast fiscal first-quarter revenue that beat Wall Street expectations, but the chipmaker’s shares dipped as executives said sales to Huawei Technologies Co Ltd would cease.
- China economic activity can return to reasonable range in 2021: Premier Li — China’s premier Li Keqiang said on Tuesday he expects economic activity in the country can return to a reasonable range next year, after the impact of the coronavirus pandemic on GDP growth in 2020.
- Britain warns tech firms over risks of China expansion — Britain’s digital and technology firms must be wary of the ethical, legal and commercial risks of expanding into China and accepting Chinese investment, according to a UK government website.
- Japan and China agree to restart business travel, coordinate on East China Sea — Japan and China agreed on Tuesday to restart coronavirus-hit business travel this month and to continue talks on disputed isles in the East China Sea, in the first high-level dialogue since Japan picked a new leader in September.
- 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.
Other Publications
- Nikkei Asian Review: China aims to shake US grip on chip design tools — Synopsys and Cadence veterans join local startups amid Beijing tech push.
- Nikkei Asian Review: Evergrande unit’s shares hit by report of Beijing EV investigation — China launches nationwide review of electric-vehicle projects.
- Nikkei Asian Review: In 165 countries, China’s Beidou eclipses American GPS — Beijing extends its data reach into space and sea.
