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’s Champion Chip Maker Checks if Co-CEO Still Wants to Work There — SMIC shares fell after reports one of its leaders planned to resign, which was news to the company, and MSCI moved to evict it from its indexes.
- MSCI Drops Chinese Stocks on U.S. Blacklist — The move, affecting stocks in seven Chinese companies, will take effect by the close of business on Jan. 5.
- Huawei Gets Conditional Green Light in Germany as Government Approves Security Bill — New network-security legislation is latest setback for U.S. effort to rein in Chinese tech giant.
- Congress Punts on China Stocks — A vague bill leaves accounting details to regulators and lobbyists.
- Coercion in Xinjiang’s Cotton Fields — The West needs wider controls on Chinese imports produced with forced labor.
- The Contradictions of China’s Real-Estate Boom Can’t Keep Going — Real-estate developers provide much-needed economic activity and land purchases. A squeeze on their balance sheets by the government would have impacts on international markets.
The Financial Times
- Shares of China’s biggest chipmaker drop on reports co-CEO has quit — Departure would be latest blow to semiconductor group SMIC following US sanctions.
- BioNTech set to become first foreign jab to enter China market — Vaccine to face competition from homegrown producers including Sinovac and Sinopharm.
- China insists Trump sanctions will not deter foreign investors — MSCI has announced it will follow Nasdaq, FTSE Russell and S&P on exclusions from indices.
- Australia takes China to WTO over barley tariffs — Beijing imposed tariffs of 80% on the crop after bilateral relations deteriorated.
- China’s power is rising in an unstable world — Japan and Europe must step up to stabilise the global order.
- Tomorrow’s world in charts: Gen Z, climate change, China, Brexit and global trade — Data visualisation of the political, economic and business challenges of the next five years.
- ‘A future in which China no longer needs the world but the world cannot spin without it’ — At the same time as seeking control of world supply chains, Xi wants the local economy to provide for itself.
- MSCI drops seven Chinese companies from indices — Action follows Trump ban on US investors buying shares in groups with China military ties.
- China’s online health platforms boom in wake of coronavirus — Demand for virtual consultations and drug sales driven by gaps in country’s healthcare coverage.
- China stocks: Darwinian selection — Well-intentioned reforms are fraught with difficulties.
- China suspends top credit rating agency as defaults hit market — Regulator says Golden Credit failed to justify some of its ratings and upgrades.
- China’s industrial production rises at fastest rate this year — Analysts upgrade full-year growth forecasts on rapid coronavirus recovery.
The New York Times
- China Charges Hong Kong Activists Caught Fleeing to Taiwan — The group has been denied access to lawyers hired by their families, raising fears in Hong Kong.
- When China Battles the World’s Biggest Coal Exporter, Coal Loses — Australia’s close relationship with coal reaches back to 1797. This year may mark the end of an era.
Caixin
- China to Dominate World IPO League in 2020, Report Says — The Hong Kong and Shanghai bourses expected to rank second and third among their global peers for funds raised.
- Detergent Giant Blue Moon Cleans Up in Hong Kong IPO — Profit boost from Covid-19 disinfectant sales pushes shares 13% higher to raise $1.2 billion.
- Nasdaq to Remove Four Chinese Companies From Indexes — U.S. bourse joins other index compilers in responding to a Trump investment ban on enterprises allegedly linked to the People’s Liberation Army.
- Private Chemical Producer Fails to Repay Bonds on Time but Avoids Default Label — Chinese chemical producer cuts a side deal to privately repay holders of $145 million of bonds while canceling their registration with Shanghai Clearing House.
- China to Get 100 Million Doses of Pfizer-BioNTech Vaccine — Deal with domestic player Fosun for ‘initial supply’ leaves door open to local production in future.
- China’s First DRAM Chipmaker ChangXin Memory Raises $2.39 Billion — Fundraising by key player in China’s strategic semiconductor initiative taps state capital and private investors.
- As Community Buyer Groups Dig in for Discounts, Suppliers and Stores Fight Back — China’s community group-buying phenomenon has gained such momentum that suppliers and brick-and-mortar retailers are fighting back.
- China to Deploy Low-Speed Maglev Train on Tourist Route — China on Tuesday rolled out its new-generation middle-to-low-speed magnetic levitation (maglev) train, which will be deployed on a tourist route in the southern city of Qingyuan, according to China Daily.
South China Morning Post
- Coronavirus: Chinese samples, data can provide key to pathogen’s origin, WHO team says — A German scientist who is part of a small team of experts assembled by the World Health Organization to investigate the origins of the coronavirus says he plans to sift through samples and medical data from China to help determine where the bug first jumped from animals to humans and which species it came from.
- China reassures public of ‘balanced’ coal supply for winter as provinces cut back power to factories — China’s economic planning agency has shrugged off domestic concern about higher coal prices due to tight supply, saying there is enough in reserve for winter despite reports that provincial governments have ordered reductions in power use.
- China manufacturing: everything you need to know — China is the world’s largest manufacturer in terms of output and has gained a reputation as the “world’s factory” soon after its accession to the World Trade Organization (WTO) in 2001.
- Rent a holiday home for 20 years for US$1,000: how one Chinese town is trying to revive the rural economy — A government-backed experiment aimed at revitalising the rural economy in eastern China is offering cheap farmhouse rentals to city residents.
- Is China really ready to back a nuclear arms-free Southeast Asia? — China has signalled that it is ready to work with its neighbours to create a nuclear weapons-free zone in Southeast Asia, after more than two decades of objections to a regional agreement.
- China’s largest battery maker CATL plans to build a US$5 billion Indonesia plant as Widodo extends overture to Elon Musk — Contemporary Amperex Technology (CATL), China’s largest producer of automobile battery packs, plans to build a US$5 billion plant in Indonesia to establish a beachhead in the world’s fourth-most populous nation as electric vehicles gain popularity.
- US satellites to track Chinese dams on Mekong river, as it likens ‘threat’ facing Southeast Asia to South China Sea — Threats to Southeast Asian unity on the Mekong are as “existential” as those in the South China Sea, according to the United States, which this week launched a project that will use satellites to track water levels at Chinese dams along the river.
- Chinese spenders offer Phuket hope amid the wreckage of Thailand’s tourism industry — Gasping for tourists in the middle of a peak season devoured by the coronavirus pandemic, the bar, hotel and tour operators scraping by in Phuket, Thailand, are praying vaccines will open global borders before they are forced to close their businesses.
- China debt: will self-disclosed scandal bring back ratings credibility after series of bond defaults? — China’s authorities have renewed efforts to restore the credibility of home-grown bond rating services and rebuild the country’s credit culture with the previously rare public exposure of a string of scandals and punishments.
- Chinese-Venezuelans desperate to extend China stay as authorities tighten rules on visa extensions — Time is running out for Liang Lintao and tens of thousands of other naturalised Venezuelans who returned to China in recent years but could be forced to return to the troubled South American country when their visas expire, under new Chinese restrictions.
- China eases foreign investment restrictions on negative list ahead of latest EU talks — China has further reduced the number of sectors and industries that are off-limits to both Chinese and foreign investors in its latest so-called negative list for market access.
- China-Australia relations: Canberra ‘very concerned’ over reports of ‘discriminatory’ coal ban — Canberra is seeking clarification from Beijing over reports that it has blocked Australian coal imports, in what could be a “breach” of China’s commitments as a member of the World Trade Organization (WTO).
- Hong Kong’s Ocean Park hanging on by its government lifeline after revenues fall 59 per cent, operating deficit doubles — Revenue at Hong Kong’s Ocean Park has plunged by 59 per cent and its operating deficit has doubled, according to its latest annual report, following a financial year marked not only by extensive coronavirus-related closures, but also months of anti-government protests.
- Philanthropists, champions of social responsibility lead 2020 honours list in DHL-SCMP Hong Kong Business Awards — Tan Siu-lin, founder of the Luen Thai Group of company and one of Hong Kong’s best-known philanthropists, has been honoured for a lifetime of contributions to industry and his charitable donations by the city’s oldest and most prestigious business awards.
- Secondary flotations of US-listed Chinese firms buoy 2021 outlook as Hong Kong lands second place in world IPO rankings — Fundraising soared 24 per cent to a 10-year high on Hong Kong’s stock exchange in 2020, as a record surge of secondary listings by US-listed Chinese companies pushed the city to second place behind New York in the global ranking of destinations for initial public offerings (IPOs).
- SMIC appoints former TSMC R&D head as executive director, highlighting need for pragmatism amid push for home-grown tech — A boardroom shake-up at China’s leading wafer foundry Semiconductor Manufacturing International Corporation (SMIC) could be an attempt to bring stability to a national chip champion trying to reduce the country’s reliance on core US semiconductor technology.
Bloomberg
- Physical Oil Rally Powers on Amid Strong Chinese, Indian Demand — Asian buyers are snapping up oil at higher prices than last month, helping to bolster physical crude markets across the world and underpin a rally in futures.
- Taiwan, Biden and China’s High-Tech Ambitions — What’s going on at China’s largest chipmaker?
- China Charges H.K. Activists Over Attempted Flight to Taiwan — China has charged Hong Kong activists detained for more than three months over their attempt to flee to Taiwan.
- Hong Kong’s Lalamove Said to Seek Funds at $8 Billion Valuation — Hong Kong’s on-demand logistics and delivery firm Lalamove is seeking a new funding round at $8 billion valuation, according to people with knowledge of the matter.
- Southeast Asia Covid-19 Vaccine Tracker: Who Gets What, When — In the evolving race for Covid-19 vaccines, Indonesia has taken the apparent lead in Southeast Asia with the delivery of vaccines from China’s Sinovac Biotech Ltd. this month.
- Chinese E-Commerce Group Buying Increases Power of Local Leaders — Tech companies aim to cash in on a trend of neighbors coordinating on online purchases.
- China Secures 100 Million Doses of BioNTech Shot — A Chinese drugmaker has secured 100 million doses of the coronavirus vaccine co-developed by Pfizer Inc. and BioNTech SE, as the country seeks overseas shots in addition to home-made ones to ensure immunization for the world’s most populous nation.
- Hong Kong’s Coolest Neighborhood Is Also One of Its Poorest — The pandemic is transforming Hong Kong’s Sham Shui Po district — and triggering concerns about gentrification.
- U.S. Steps Up Scrutiny of Chinese Built Dams on Mekong Basin — The U.S. is increasing scrutiny of Chinese dams along the Mekong River, its latest move aimed at helping Southeast Asian nations push back against Beijing.
- Thiel-Backed SPAC Said to Weigh Tokopedia Deal — Bridgetown Holdings Ltd., the blank-check company backed by billionaires Richard Li and Peter Thiel, is considering a potential merger with Indonesia’s e-commerce giant PT Tokopedia. Bloomberg’s Manuel Baigorri reports on “Bloomberg Markets: China Open.” (Source: Bloomberg)
- China Inc.’s IPO Haul From the U.S. and at Home Tops Records — China Inc raised money at home and overseas in initial public offerings like never before, buoyed by the country’s early emergence from the pandemic.
- Hillhouse’s Latest IPO Returns 2,000% and Creates a Billionaire — Pan Dong used to be a teacher at a university in Guangzhou, China. Fast forward two decades, she’s now one of the nation’s richest women.
- Chinese Clothing Giant Defaults on Second Domestic Yuan Bond — A troubled Chinese clothing firm has defaulted on two domestic bonds in 24 hours, in the latest sign of financial stress among the country’s weaker private companies.
- China’s Coal Industry Pushes Back Against 2060 Net-Zero Target — The dirtiest fossil fuel dominates the economy, but it’s at odds with the nation’s goal to be carbon neutral by 2060.
- China Eyes Economic Goals for Next Year as Debt Levels Soar — China’s leaders are likely to convene this week to lay out their economic priorities for 2021, with analysts expecting a renewed focus on slowing the pace of debt growth and insulating the economy from tensions with the U.S.
- Global Fishing Talks Blow 2020 Deadline as China, India Balk — The World Trade Organization announced it will miss a 2020 deadline to secure an agreement prohibiting subsidies that threaten the sustainability of global fishing, as countries including China and India hold out for an exemption.
- China’s Tougher Delisting Rules Send Weakest Stocks Plunging — China’s weakest stocks faced another blow after exchange regulators issued tougher rules to weed them out of the market.
Reuters
- UK says credible evidence of forced labour in China’s Xinjiang region — Britain said on Wednesday there was credible, growing and troubling evidence of forced labour among Uighur Muslims in China’s Xinjiang region.
- Exclusive-Suspected Chinese hackers stole camera footage from African Union – memo — As diplomats gathered at the African Union’s headquarters earlier this year to prepare for its annual leaders’ summit, employees of the international organization made a disturbing discovery.
- Australia ups ante in China trade row with WTO challenge of barley tariffs — Australia launched a formal appeal to the World Trade Organization (WTO) on Wednesday seeking a review of China’s decision to impose hefty tariffs on imports of Australian barley.
- China regulator says should consider digital data tax for tech firms — China should consider imposing a digital tax on technology companies that hold copious amounts of user data, a securities watchdog official was quoted as saying by Beijing News, in the latest sign of widening government scrutiny of the sector.
- China’s Xugong Group set to get $2.3 billion from GIC, others in SOE mixed-owner reform -sources — Xugong Group Construction Machinery Co Ltd is set to receive about 14.8 billion yuan ($2.26 billion) from backers including GIC Pte Ltd, sources said, in one of China’s biggest mixed-owner reforms of a state-owned enterprise (SOE).
- Rio Tinto to invest $10 million in low-carbon steel with China’s Baowu — Rio Tinto Ltd said on Wednesday it plans to invest $10 million in low-carbon steelmaking projects over the next two years in an effort to fight climate change with China Baowu Steel Group.
- SMIC says board aware co-CEO Liang intends to resign — China’s biggest chipmaker SMIC said on Wednesday its board is aware that Mong-song Liang intends to resign from his co-chief executive role.
- Japan posts record run of export declines on soft U.S., China demand — Japan’s exports fell in November, dashing expectations for an end to the two-year run of declines, largely due to weaker U.S.- and China-bound shipments and suggesting a slower pace of recovery for the world’s third-largest economy.
- China reduces items on the negative list for market access — China has further reduced the number of sectors and industries that are off-limits to both Chinese and foreign investors in its latest so-called negative list for market access.
- Analysis: China to crank up anti-trust heat on Big Tech after unprecedented fines — China’s unprecedented anti-trust squeeze on its technology giants is only just beginning.
Xinhua
- U.S. imports from China surge in 2020 despite tariffs, pandemic: media — Despite the Trump administration’s tariffs on Chinese goods and the ongoing COVID-19 pandemic, U.S. imports from China are surging as the year 2020 draws to a close, The New York Times reported on Monday.
- China releases shortened negative list for market access — Chinese authorities on Wednesday released the 2020 negative list for market access, which cut the number of items on the list to 123 from 131 in the previous year.
- Factbox: Data highlights of Chinese economy in Jan.-Nov. period — Unveiled on Tuesday, China’s key economic indicators for November presented the latest signs of strengthening recovery, as consumption and investment return to normal levels and the country heads toward world-leading positive growth.
- China’s FDI inflow scores 8-month growth streak — Foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 5.5 percent year on year to 98.7 billion yuan (14.38 billion U.S. dollars) in November, the Ministry of Commerce said Tuesday.
- Foreign trade of east China’s Jiangxi up 14.9 pct in Jan-Nov — The foreign trade of east China’s Jiangxi Province rose 14.9 percent to 366.3 billion yuan (about 56 billion U.S. dollars) in the first 11 months of 2020, expanding nearly 4.4 percent from last year’s total volume, according to Nanchang customs.
- German pump giant to build plant in east China city — The Wilo Group, one of the world’s leading providers of pumps and pump systems, has signed an agreement to build a plant in the eastern Chinese city of Changzhou.
- China Molybdenum buys 95 pct stake in DRC copper-cobalt mine — China Molybdenum Co., Ltd. has acquired a 95-percent stake in the Kisanfu copper-cobalt mine in the Democratic Republic of Congo (DRC) from U.S.-based Freeport-McMoRan Inc. for 550 million U.S. dollars.
Other Publications
- Nikkei Asian Review: China rethinks the Jack Ma model — Alibaba, Tencent and a host of internet giants face new scrutiny from the Party.
- Nikkei Asian Review: China to rein in COVID spending in sign of economic confidence — Beijing shifts focus to taming of ‘gray rhino’ financial system risk.
- Nikkei Asian Review: Tencent placates Beijing with ‘public interest’ games for China — Other Chinese developers also try to ease concerns over young players’ addiction.
- Nikkei Asian Review: China’s top chipmaker hires sought-after former TSMC executive — Industry veteran Chiang Shang-yi to guide SMIC through US sanctions.
- Foreign Policy: Lloyd Austin Isn’t Who You Think He Is — The “silent general” has never been very quiet on policy. That’s exactly why Biden picked him as defense secretary—and why Washington’s foreign-policy establishment is wary.
- The Atlantic: Being a Democrat on China’s Doorstep — How does a country balance its values and its interests when it shares a border with a powerful autocracy?
