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 Lands a Probe on the Moon as It Pursues Space Ambitions — Mission aims to bring back lunar samples, and Beijing plans manned base on moon in coming years.
- China and Korea Clash Over Pandas and Pickled Vegetables — Internet users get heated over symbols of national pride for the two nations.
- China Panel Calls for More Federal Trade Commission Authority in Approving Mergers Involving Foreign Money — The U.S.-China Economic and Security Review Commission proposes the FTC conduct a deeper study of a potential deal.
- Biden’s Economic Team Charts a New Course for Globalization, With Trumpian Undertones — The president-elect’s advisory picks have grown circumspect about pitfalls Trump highlighted.
- JD Health Raises $3.5 Billion From Hong Kong’s Red-Hot Capital Markets — More than 120 companies have raised $44.6 billion through IPOs and secondary listings in Hong Kong this year, the highest since 2010.
The Financial Times
- US and EU may struggle to unite on how to tackle China — For all the talk of co-operation, there could be some messiness when it comes to the fine print.
- Emerging market cycle shows that quality wins over long-term — Slower macroeconomic expansion will ensure quality growth retains a premium.
- Shares in China’s Xiaomi drop after $4bn fundraising — Smartphone group plans to use proceeds to boost market share as Washington curbs hit rival Huawei.
- Chinese state-backed funds invest in US tech despite Washington curbs — Groups strike deals in sensitive sectors even as new rules enacted over security concerns.
- Joe Biden considers appointing a White House tsar for Asia — Move would signal importance of region for incoming US administration amid China tensions.
- China rating agencies stand by SOEs despite default spree — Rankings reflect politics and implicit government backing for state-owned companies.
The New York Times
- Mr. Biden, Keep the Pressure on Hong Kong — We are democracy activists. We call on Washington to forge a new China policy that prioritizes human rights over other interests.
- Is China Laying Claim to Kimchi, Too? Some South Koreans Think So — When a state tabloid suggested that China had set a global standard for kimchi, social media users accused Beijing of misappropriating a Korean culinary staple.
- China Lands Chang’e-5 Spacecraft on Moon to Gather Lunar Rocks and Soil — The mission will now collect samples, aiming to return with them to Earth by mid-December.
Caixin
- Exclusive: Probe of Failed Baoshang Bank Shifts Focus to Top Executives — As financial rescue winds down, investigation into lender’s collapse turns to role of senior management.
- Exclusive: Defaulting Coal Miner’s Debt Restructuring Plan Faces Creditor Backlash — Wintime Energy looks to restructure $5.5 billion of debt.
- HKEX Launches Platform to Promote Disclosure on Green Bonds — STAGE information exchange is Asia’s first platform for multi-asset sustainable investments as Hong Kong sets out to become green finance hub.
- U.S. Blacklists State-Run Electronics Giant Over Venezuelan Collaboration — CEIEC’s addition to Washington’s ‘entity list’ means the company will be cut off from its U.S. suppliers unless they get special licenses.
- Top Maker of Electric-Car Charging Stations Gears Up for Shenzhen IPO — Qingdao Teld New Energy holds over a quarter of the market.
- Free of Huawei Ties, Honor Brand Enters Talks With Qualcomm — Honor was sold two weeks ago by its U.S. sanctions-hobbled parent in bid to save the low-cost smartphone specialist.
- Baidu Leads China in AI Patent Applications and Ownership — Baidu has submitted more artificial intelligence (AI) patent applications and secured more approvals for such patent filings than any other company in China, the Chinese tech giant said in a statement on Tuesday, citing research conducted by two units affiliated to the Ministry of Industry and Information Technology (MIIT).
- Chinese Biopharma Firm Pegbio Nets $122m in Pre-IPO Round From YF Capital, Yingke, Others — Pegbio, a Suzhou-based biopharmaceutical company that specialises in innovative drugs for diabetes and obesity, announced on Tuesday that it has secured around 800 million yuan ($122 million) in a pre-IPO round co-led by Jack Ma’s YF Capital, private equity firm Yingke PE, and life sciences-focussed investment firm TF Capital.
- NEV Makers Nio and Xpeng Keep Revving Up Sales, But Investor Unimpressed — Shares of Nio and Xpeng tumbled in the latest trading session, giving back some of their massive gains from the last few months, even as the pair of electric vehicle startups reported robust deliveries for November.
South China Morning Post
- China’s former trade chief hits out at ‘groundless’ claims country cannot join CPTPP — Beijing’s former top trade negotiator has dismissed as “groundless” claims that China would not meet strict criteria to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the long term.
- ‘Painful’ exit of Chinese member leaves WTO appeals body without a judge and trade dispute cases in limbo — For the first time since the World Trade Organization was set up 25 years ago, its Appellate Body, dubbed the top court for world trade, will have no serving judges after the departure of the Chinese member, curbing the WTO’s capacity to handle disputes.
- US, China should address trade gap, humanity’s shared challenges like coronavirus and climate change, former trade envoy Long Yongtu says — The world’s two biggest trading nations ought to resume regular dialogue at strategic and operational levels to prevent disputes from spiralling out of control, avoiding the kind of quarrel that led to the ruinous two-year-long US-China trade war, China’s former top trade envoy has said.
- US-China relations: Biden says trade-war tariffs to remain in place for now as alliance building comes first — US president-elect Joe Biden confirmed that he will not make any “immediate moves” to lift the tariffs that the Trump administration has imposed on imports of Chinese goods before a full review of the existing phase-one trade deal and consultations with US allies, despite China’s hopes that it would be able to renegotiate the trade agreement with the new US administration.
- China faces uphill struggle to win over Mekong neighbours — China has tried to calm the dispute about dam-building and water resources management along the Mekong with a number of conciliatory gestures, but observers say it faces an uphill struggle to win over its neighbours.
- Beijing is China’s only shining northern city as centre of economic gravity moves south — All Chinese cities north of the Yangtze River, except Beijing, are in relative decline as the centre of economic gravity in the world’s second biggest economy quickly shifts southward.
- China expects US to ease some restrictions on exchanges under Joe Biden, military adviser says — China is expecting the United States to ease some restrictions on exchanges between the two countries when US president-elect Joe Biden takes office as part of efforts to repair the relationship, according to a Chinese military adviser.
- China’s online lender Lufax recalibrates business model as regulators clamp down on Big Tech lending — Lufax Holding is overhauling the way it digitally matches borrowers and lenders as China clamps down on Big Tech companies extending credit in the world’s second-largest economy amid fears the platforms could be a source of financial instability.
- China-Australia relations: what could bring their bilateral battle to an end? — A positive exchange between China and Australia last week sparked hope that their frosty relationship could be starting to thaw, as Australian Prime Minister Scott Morrison commended China for lifting its citizens out of poverty and China acknowledged the recognition.
- Hong Kong airport’s US$1.5 billion bond oversold by 10 times as investors clamour to bet on post Covid-19 travel recovery — Airport Authority Hong Kong (AAHK), the operator of the city’s airport, said on Wednesday that it has raised US$1.5 billion by selling perpetual debt to help fund the completion of its mega third-runway project.
- Alibaba logistics arm Cainiao to speed up Covid-19 vaccine shipments with China’s first cold chain air freight service — Cainiao Smart Logistics Network, the logistics arm of Chinese e-commerce giant Alibaba Group Holding, has announced that it is launching China’s first regular cross-border medical cold chain route, which will be able to transport Covid-19 vaccines.
- China sets limits on personal data collection by live-streaming, short video-sharing services — Personal information gathered by live-streaming and short video-sharing services will be strictly limited, according to new rules introduced by Beijing, signalling the government’s determination to clean up unauthorised data collection by internet platforms.
- Qualcomm’s new flagship 5G chip embraced by major Chinese smartphone makers – except Huawei — When US 5G chip leader Qualcomm introduced its latest flagship offering for next-generation smartphones on Tuesday, one customer was conspicuous by its absence.
Bloomberg
- Biden’s Crisis-Tested Economy Team Charged with Driving Recovery — President-elect Joe Biden on Tuesday announced the team that will take on one of the key early challenges of his presidency: keeping the U.S. economy’s recovery from the coronavirus on track.
- U.K. Clears Pfizer Covid Vaccine for First Shots Next Week — The U.K. became the first western country to approve a Covid-19 vaccine, with its regulator clearing Pfizer Inc. and BioNTech SE’s shot ahead of decisions in the U.S. and European Union.
- Petrobras CEO Calls Net Zero a Fad, Echoing Exxon’s Focus on Oil — Petrobras is pledging a 25% cut in carbon emissions by 2030, but that hasn’t stopped Chief Executive Officer Roberto Castello Branco from dismissing pledges by peers to completely neutralize their carbon footprints two decades later.
- Specter of Cashless Gambling Drives Junkets Away From Macau — Macau saw revenue plummet by $27 billion this year as pandemic travel curbs kept lucrative Chinese gamblers away. While visitors are slowly returning, a potentially bigger threat is unnerving operators in the world’s biggest casino hub: the prospect China’s central bank-backed cryptocurrency, the digital yuan, will be introduced to the enclave.
- HSBC’s Loyal Hong Kong Investors Find Redemption in 51% Rally — Fear of owning HSBC Holdings Plc shares is turning into a fear of missing out on a major rally.
- China Seeks to Protect Farmland in Battle for Food Security — China, the world’s top food consumer, is stepping up efforts to safeguard the nation’s grain areas as part of a drive to protect supplies at a time when the coronavirus pandemic is disrupting global markets.
- Philippines Eyes China, Russia For Early Vaccine Access — The Philippines expects to start administering coronavirus vaccines as early as the first quarter of next year, pinning its hopes on China and Russia as its own procurement policies hamper efforts for early access.
- Hong Kong Activist Joshua Wong Jailed 13.5 Months Over Protest — Hong Kong activist Joshua Wong urged supporters to “hang on” after he was sentenced to more than a year in jail for leading a protest outside police headquarters last year, prompting angry cries outside the court in one of the most high-profile cases in the government’s crackdown on the pro-democracy movement.
- China Coking Coal Surges as Covid Throttles Mongolia Border — Coking coal prices in China have soared to a four-year high after a new Covid-19 outbreak slowed border crossings from Mongolia.
- U.S. Urged to Do More Against Rising Threat of Assertive China — The U.S. should ratchet up its demands of China to include equal access for companies and media, stricter monitoring of Beijing’s activities at the United Nations and preventive action to safeguard American interests in technology and finance, a bipartisan panel told Congress on Tuesday.
- JP Morgan Asset Sees Opportunities in Japan Internet Sector — JP Morgan Asset Management’s outperforming Japan equity fund sees growth opportunities in the information and communications sector as the country lags in adopting key tools like e-commerce and digital payment.
- Australia Economy Set for Rapid Recovery After Exiting Recession — Australia’s recovery is poised to accelerate as cashed up households — joined by Victorians released from Covid-19 lockdown — fuel a spending boom, after the economy exited its first recession in three decades.
- Covid Amped Up Food Delivery and the Waste It Creates Around the World — All the food we’ve ordered in this year has created even more waste.
- The Future of Finance Is in Wealth Management and Retail Trading — A look at the data shows where the industry’s money is being made.
- Believe in Global Reflation? The Dollar Does — When the world economy is generally healthy, we can expect the greenback to weaken, and that’s exactly what’s happening.
- China Default Fears Curb Year-End Sales of New Dollar Bonds — Demand for Chinese debt is falling amid investor concern over a string of defaults by state firms and the pressure of U.S. sanctions on some of the nation’s firms.
- How taking a company private sent this Hong Kong family’s fortune soaring — Woo’s strategic shift has boosted the dynasty’s fortune to $20.2 billion
- JD Unit Raises $3.5 Billion in Biggest Asian Health-care Listing — JD Health International Inc. raised HK$27 billion ($3.5 billion) after pricing Asia’s biggest health-care initial public offering at the top end of a marketed range.
- China Resources Mixc Said to Raise $1.6 Billion in Hong Kong IPO — Property management company China Resources Mixc Lifestyle Services Ltd. has raised $1.58 billion after pricing its Hong Kong initial public offering at HK$22.30 per share, the top of a marketed range, according to people familiar with the matter.
- Covid-19 in Australia Ends a Lucky Economic Era, Recession or Not — Covid-19 slammed the door on an era that was already closing in Australia. The next one won’t be so easy.
- Oil-Hungry Asia Lures Armada of Tankers Carrying U.S. Crude — A fleet of around 20 tankers laden with U.S. crude oil is expected to leave for Asia this month as the region continues to outpace the rest of the world in its recovery from the Covid-19 pandemic.
- China State Grid Sees New Coal Plant Restrictions After 2026 — New coal power plants in China will face severe restrictions after 2026 as the country pivots to a carbon-neutral future, according to a researcher with the nation’s main grid operator.
- Robinhood Shows the U.S. Stock Market Is Like China’s — A rising share of retail investors would be a good thing for Wall Street. No one knows that better than mainland traders.
- Ray Dalio Eyes Class Struggle as He Ponders U.S. Tipping Point — Ray Dalio turned to class and power struggles in the latest installment of his ongoing series on the changing world order, wondering if the U.S. is at a tipping point that could move it from what he says is “manageable” tension to a full-blown revolution.
- U.S. Accuses China of Seeking to Undo North Korea Sanctions — A senior U.S. official accused China of violating United Nations sanctions against North Korea, actions that he said go against a global consensus and undermine efforts to get the isolated regime to give up its nuclear weapons.
- Biggest U.S. Solar Manufacturer Wants to Keep Trump’s Tariffs — America’s biggest solar manufacturer wants President-elect Joe Biden to preserve the Trump administration’s tariffs on imported panels or add other measures to help compete against China.
- Chinese Researcher to Plead Guilty in Harvard Cancer-Cell Case — A Harvard-sponsored Chinese researcher accused by U.S. officials of trying to smuggle 21 vials of cancer cells taken from a Boston hospital has agreed to plead guilty to a lesser charge and will be permitted to return to China, federal prosecutors said.
- Netflix Plans to Double Spending on Original Content in Asia — Netflix Inc. is planning to double its spending on original content in Asia next year to help stay ahead in a crowded streaming market, where billionaires including China’s Pony Ma and Hong Kong’s Richard Li are seeking to expand their presence.
- Copper Powers On as Bulls Say Rally is One for the History Books — Copper extended a rally after capping the longest stretch of monthly advances in almost a decade, with prices headed for the highest close in seven years in London as China’s recovery continues and supply risks stack up.
- China Becomes a Bigger Mark on NATO Radar Screen With New Report — The North Atlantic Treaty Organization took another step toward making China a strategic focal point after the alliance published a report stressing Chinese geopolitical threats.
- Copper-Gold Ratio Breaks From Treasury Yields in New Normal — The relationship between the copper-gold ratio and Treasury yields, one Jeffrey Gundlach’s favored indicators, looks broken.
- EU Leaders Plan Appeal to Biden to Rebuild Transatlantic Ties — The European Union plans a sweeping proposal for transatlantic cooperation to U.S. President-elect Joe Biden in a bid to repair relations soured by Donald Trump.
- Nikola CEO Overhauls Trevor Milton’s Vision, Forges New Path — Since taking the wheel at Nikola Corp. in September, Mark Russell has been adamant the electric-truck startup doesn’t need a deal with General Motors Co. to survive. Now he has to prove it — and fast.
- India Begins Talks With Farmers’ Groups as Protests Simmer — The government of Prime Minister Narendra Modi started talks with dozens of farm leaders Tuesday to end widespread demonstrations that have erupted against the imposition of new agricultural laws.
- Germany Says Nord Stream 2 Picked a Ship to Finish Gas Pipeline — Nord Stream 2 has picked a ship to finish laying sections of its pipeline under the Baltic Sea, a German agency overseeing the work said, indicating the Russian company has found a way to get around U.S. sanctions that have halted the project.
- Citi Flashes Warning on S&P 500 ‘Overshoot’ Rally: Taking Stock — A record-setting November for the S&P 500 Index is renewing anxiety about how long the advance will last, and some signs indicate the market may be poised for a breather.
- TikTok Nears Yet Another Deadline — Can it keep running out the clock?
- Venezuela Oil Exports Almost Triple Even as U.S. Adds Sanctions — Venezuela almost tripled its crude oil exports even as the U.S. continues to tighten sanctions against companies seeking to do business with its ruling regime.
- OECD Cuts Global Forecast, Warns Governments to Maintain Support — The resurgence of the coronavirus pandemic has dramatically weakened the global recovery and it could get a lot worse if governments withdraw support too soon or fail to deliver effective vaccines, the OECD warned.
- VW Puts Audi at Center of Taking on Tesla With EVs, Software — Whether Herbert Diess gets the contract extension he’s seeking from Volkswagen AG or not, the chief executive officer has positioned one division of the automaker to carry out his fixation with beating Tesla Inc. at its own game.
- Dirty Fuel Demand Jumps With More Pollution Kits on Ships — An increase in vessels being fitted with pollution-reducing kits and unusually strong demand for container shipping is providing a boost to the dirtiest marine fuel.
- OPEC+ Talks Delayed as Split Deepens Between Key Gulf Allies — OPEC+ talks were delayed for two days to give ministers more time to reach a deal, after a long and tense meeting on oil production broke down without an agreement.
Reuters
- Investors should bet on Chinese cyclicals: Warburg Pincus’ China JV — Chinese cyclical stocks should see a rapid recovery in valuations as investors, betting on economic revival, move into sectors such as banking and construction and out of expensive tech shares, an executive of Warburg Pincus’ China mutual fund venture said.
- Timeline: Major milestones in Chinese space exploration — China successfully landed a spacecraft on the moon’s surface on Tuesday in a historic mission to retrieve lunar surface samples, Chinese state media reported.
- China says it will accelerate implementation of RCEP trade deal — China will accelerate the implementation of trade liberalisation measures promised under the Regional Comprehensive Economic Partnership (RCEP) deal, state media quoted the cabinet as saying on Wednesday.
- WeChat blocks Australian Prime Minister in doctored image dispute — The Chinese social media platform WeChat blocked a message by Australia Prime Minister Scott Morrison amid a dispute between Canberra and Beijing over the doctored tweeted image of an Australian soldier.
- China says U.S. is adopting discriminating policies on Chinese firms — China said on Wednesday that the United States is adopting discriminating policies towards Chinese firms, in response to the U.S. House of Representatives backing a bill that could block Chinese firms from U.S. securities markets.
- U.S. House seen approving bill blocking Chinese firms from U.S. markets — The U.S. House of Representatives is expected to pass legislation this week that could prevent some Chinese companies from listing their shares on U.S. exchanges unless they adhere to U.S. auditing standards, congressional aides said.
- Canada’s Teck looks to boost Chinese coal sales amid stalled Australian shipments — Canada’s Teck Resources looks to boost shipments of steelmaking coal to China next year, Chief Executive Don Lindsay said on Tuesday, hoping to take advantage of unofficial curbs on Australian imports that have stranded dozens of shipments.
- ‘Wolf warrior’ artist turns new chapter in Chinese propaganda artwork — A young, bespectacled computer graphic artist unknown outside China has found instant notoriety overseas after a computer-generated image of his sparked a row between Beijing and Canberra.
- China’s manufacturing recovery masks strains on smaller factories, export uncertainty — Chinese industrial activity has snapped back to pre-coronavirus growth levels, with factory surveys hitting multi-year highs in November, but the headline expansion masks struggles for smaller firms and looming pressures for exporters.
- UK urges Hong Kong and China to stop stifling opposition — Britain urged the Hong Kong and Beijing authorities to stop their campaigns to stifle opposition, issuing a statement on Wednesday as three Hong Kong activists including Joshua Wong began their prison sentences.
- Biden says will not kill Phase 1 trade deal with China immediately: NYT — Joe Biden will not immediately cancel the Phase 1 trade agreement that President Donald Trump struck with China nor take steps to remove tariffs on Chinese exports, the New York Times on Wednesday quoted the U.S. president-elect as saying.
- Daimler, Foton say will start making Mercedes Benz trucks in China — Germany’s Daimler AG and its China commercial vehicle partner Beiqi Foton Motor Co Ltd will invest 3.8 billion yuan ($579.21 million) to make Mercedes Benz-branded heavy duty trucks in Beijing, the companies said on Wednesday.
- Chinese banks’ improved third-quarter earnings show nascent turnaround — Earnings of Chinese banks in the third quarter slipped by a smaller margin than in the prior quarter, signalling a potential turnaround for a sector whose valuations are near five-year lows.
- JD.com, SF, Carlyle among bidders for CJ Group’s $1 billion China logistics business: sources — Chinese online retailer JD.com, delivery company SF Group and Carlyle are bidding for South Korean conglomerate CJ Group’s China logistics business in a deal that could fetch over $1 billion, people familiar with the matter said.
Xinhua
- China’s agricultural fair sees trade volume reach 41.8 bln yuan — The 18th China International Agricultural Trade Fair concluded Monday in southwest China’s Chongqing Municipality, with the trade volume amounting to 41.8 billion yuan (about 6.35 billion U.S. dollars).
- SCO plans to enhance financial cooperation, continue consultations on establishing SCO Development Bank — The Shanghai Cooperation Organization (SCO) on Monday announced plans to further enhance financial cooperation, and expressed willingness to continue consultations on the establishment of the SCO Development Bank and the SCO Development Fund (Special Account).
- Beijing sees booming cybersecurity industry — Beijing’s cybersecurity industry is booming, with its industrial scale hitting 64.52 billion yuan (about 9.8 billion U.S. dollars) last year.
- Taiwan’s leading bookstore Eslite expands e-commerce — Taiwan-based major bookstore chain Eslite launched its new e-commerce platform Eslite Online Tuesday, extending its online business from books to general merchandise.
- Huawei’s “Seeds for the Future” program enhances ICT skills for Tanzania’s university students — A Tanzanian government senior official has commended Huawei’s “Seeds for the Future” program, saying the program is improving the quality of ICT education for university students in the east African nation.
- China’s iconic sedan brand Hongqi posts strong sales — Sales of Hongqi, a car brand under China’s leading automaker FAW Group Co., Ltd., have more than doubled in the first 11 months of the year to 178,100 units, the company said Tuesday.
- Intel, Google Cloud collaborate to help enterprises’ hybrid, multi-clouds deployment — Intel and Google Cloud on Monday announced their collaboration to simplify enterprises’ ability to adopt and deploy cloud-first business models using their existing self-managed hardware.
- Tokyo stocks close slightly higher on vaccine progress — Tokyo stocks closed slightly higher Wednesday as market players took a cue from expectations for access to COVID-19 vaccines following the benchmark Nikkei’s close at a 29-year high the previous day.
- China’s logistics sector maintains expansion in November — China’s logistics sector sustained steady expansion in November as broader economic recovery consolidates, data from the China Federation of Logistics and Purchasing showed on Wednesday.
Other Publications
- POLITICO: How America got outmaneuvered in a critical mining race — POLITICO’s Global Translation’s podcast explores China’s decades-long strategy to secure vital materials such as cobalt, and U.S. efforts to catch up.
- Foreign Policy: Cutting Through the Hype on Asia’s New Trade Deal — The RCEP truly is a China-style trade agreement: platitudinous and ineffective.
- Nikkei Asian Review: The fight over China’s law to protect personal data — Legislation aims to address public concerns but industry fears vague rules.
- CNN: China has promised millions of coronavirus vaccines to countries globally. And it is ready to deliver them — In the coming months, China will be sending hundreds of millions of doses of coronavirus vaccines to countries that have conducted last-stage trials for its leading candidates. Chinese leaders have also promised a growing list of developing countries priority access to its successful vaccines.