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 Eyes Shrinking Jack Ma’s Business Empire — The state could take a bigger stake in the billionaire’s businesses as regulators beef up oversight of the powerful tech sector.
- China Blocks U.S. Government’s $332 Million Sale of Hong Kong Luxury Apartments — Transaction can’t be completed without written consent of Chinese government, buyer says it has been told by authorities.
- China’s Top Credit Rater Barred From New Business for Three Months — Chengxin had an AAA rating on state-owned coal miner Yongcheng when it defaulted.
- New Cases Challenge China’s Targeted Covid-19 Strategy — Latest infection clusters come as country prepares for explosion of travel around Lunar New Year holiday.
The Financial Times
- EU and China agree on new investment treaty — Deal brings 7 years of negotiations to a successful close, but risks EU tensions with US.
- China plots ‘rectification’ drive to bring Jack Ma’s Ant Group to heel — Beijing to carve out fintech’s most lucrative units into tightly regulated holding company.
- Hong Kong activists detained in China sentenced to up to 3 years — Group of 10 pro-democracy protesters will be jailed in mainland after arrest during escape attempt to Taiwan.
The New York Times
- A Chinese Covid-19 Vaccine Has Proved Effective, Its Maker Says — Sinopharm, a state-controlled company, said its candidate had a 79 percent efficacy rate in interim late-stage trials. But the announcement left crucial questions unanswered.
- China Has All It Needs to Vaccinate Millions, Except Any Approved Vaccines — Across the country, local governments plan to inoculate 50 million people against the coronavirus by early next year. But the vaccines have not officially been approved.
Caixin
- BMW’s Chinese Partner Cancels Hong Kong Share Pledge Amid Debt-Dodging Complaints — Brilliance Auto pulls the plug after defaulting on debts totaling $1 billion as investors decry offloading of assets.
- China Cuts Red Tape to Spur Growth in Market-Making for Interbank Bonds — Reform is aimed at increasing liquidity and improving market pricing.
- Yongcheng Coal Default Leaves Ratings Agency Banned From Ratings for Three Months — Chengxin International Credit Rating gave top marks to coal company’s bonds just before its market-rattling default.
- Guangzhou Rural Lender Scraps Listing Plan After Corruption Probes — Planned Shenzhen flotation was launched by former chief Wang Jikang, who later resigned and came under indictment for corruption.
- China and EU Announce Agreement on Investment Pact — Under the agreement, China will reportedly open up multiple industries to EU firms, including manufacturing, construction, advertising, air transport, maritime services and telecoms.
- Exclusive: Fosun Will Partner With Germany’s BioNTech to Make Covid Vaccine in China — The two drugmakers will begin their partnership by rolling out German-made vaccine in early 2021.
- Power Generators Grapple With Debt as Industry Consolidation Gathers Steam — Power giant Datang takes huge loss as it clears subsidiary’s debt in prelude to handing company to a rival.
- China Eastern Unit Completes Maiden Passenger Flight With Domestically Built Plane — OTT Airlines plans to operate fleet of mostly Chinese-made aircraft in boost to state-owned COMAC’s bid to challenge Boeing and Airbus.
- Chinese Chipmaker’s Shipments Surge 650% on Strong Domestic Demand — Tianjin Phytium benefits from accelerated construction of advanced systems and government push for more home-grown technology.
- Nasdaq-Listed Digital Healthcare Firm 111’s Unit Eyes STAR IPO After $79 Million Fundraiser — A subsidiary of Nasdaq-listed Chinese digital healthcare platform 111 Inc has secured 515 million yuan (almost $78.8 million) in new funding at a pre-money valuation of 10 billion yuan ($1.5 billion), as the unit plans an initial public offering (IPO) on Shanghai’s STAR Market.
- Electric Vehicles Specifically Designed for Ride-Hailing Will Soon Hit China’s Roads — The purpose-built D1 electric taxi, developed by China’s Didi Chuxing and automaker BYD, will soon hit the country’s roads.
- Satellite Services Firm Seeks up to $506 Million Through Share Sale — Shanghai-listed China Satellite Communications, a subsidiary of state-owned China Aerospace Science and Technology, which offers satellite communications and broadcasting services worldwide, has announced a plan to raise up to 3.3 billion yuan ($506 million) by selling shares to a group of investors.
South China Morning Post
- China-EU investment deal: leaders conclude marathon negotiations via video link — The European Union and China have concluded their marathon negotiations for an investment pact, the bloc’s leaders announced on Wednesday after a video call with Chinese President Xi Jinping.
- China’s Xi Jinping vows new push to revitalise rural economy in post-coronavirus world of uncertainty — China has vowed to provide more forceful support for the agricultural sector and revitalise rural areas, saying they are the “bedrock for a new era of development” in which Beijing aims to make the economy more self-reliant and insulate it from external uncertainty.
- China’s 2019 GDP revised down, shrinking the base for 2020 growth calculations — The size of China’s economy and its growth rate for 2019 are slightly smaller than Beijing previously announced, the National Bureau of Statistics (NBS) said on Wednesday after its annual revision of economic data.
- China-EU investment deal: Beijing relents on human rights but will it shift on trade unions? — China will pursue the ratification of key global human rights conventions starting next year as a compromise on a forced labour controversy that once stalled investment deal talks with the European Union, according to EU documents of their ongoing negotiations.
- Coronavirus: people in China ‘the most willing among 15 countries to take a vaccine’ — Chinese citizens are the most willing to get vaccinated against Covid-19 among people in 15 major economies worldwide, according to a new poll by the World Economic Forum.
- China-Australia relations: Canberra’s plan to scrap research accord labelled ‘act of revenge’ over trade dispute — China has called Australia’s plan to scrap a research agreement between the Victorian government and Jiangsu province an “act of revenge” over trade disruption that is fast threatening Australia’s economic growth.
- China-EU investment deal: draft text shows Beijing to broadly open market to European firms, but some sectors remain off limits — An imminent investment treaty will crack open large swathes of the Chinese economy to European firms, but a recent version of the negotiating text suggests that Beijing intends to ensure some important sectors remain off limits.
- As US moves to renewable energy, wind turbines from Xinjiang may get caught in political tempest — At the new Las Lomas wind project in southwest Texas, French energy giant Engie’s wind turbines will soon deliver hundreds of megawatts of clean power to Microsoft.
- Almost half of Japan technology firms diversifying supply chains away from China, survey shows — Over 40 per cent of Japanese companies the government recognises as possessing sensitive technology linked to security are shifting their manufacturing bases and sources of parts supplies from China in a bid to diversify their supply chains, according to a Kyodo News survey.
- China-Australia relations: from Kazakhstan to Serbia, winemakers vie for piece of Chinese market amid trade dispute — Kazakhstani winemaker Zeinulla Kakimzhanov is pleased with the fresh inquiries he has been getting from Chinese wine importers in recent months.
- Hang Lung’s HK$2.6 billion purchase of US government’s 37 Shouson Hill Road villas runs into diplomatic snag in US-China spat — One of Hong Kong’s biggest real estate transactions of 2020 has been caught in the crossfire of souring US-China diplomatic relations, as the United States consulate failed to get its sale of luxury villas on The Peak recognised by the city’s Land Registry.
- Hong Kong takes a tentative step towards paperless home sales, with New World’s proptech platform for The Pavilia Farm — Days before Hong Kong’s typical weekend sales launch of residential property, Sammy Po Siu-ming would arm himself with thousands of cashier’s orders for a quaint ritual in the world’s costliest real estate market.
- US sanctions killed the old Huawei. What will the reborn one look like? — It may be premature to write Huawei’s obituary, but one thing is clear – the company we once knew is no longer.
Bloomberg
- EU and China Seal Investment Agreement to Open Chinese Market — The European Union and China announced the political approval of a long-sought agreement to open the Chinese market further to EU investors, marking an economic victory for both sides.
- Xi Sees Threats to China’s Security Everywhere Heading Into 2021 — In Xi Jinping’s China, nearly everything is becoming a national security issue.
- China Stymies Sale of U.S. Consulate Staff Site in Hong Kong — China has halted the sale of the U.S. consulate staff compound in Hong Kong, citing Washington’s failure to secure approval from Beijing for the $332 million deal.
- Mainland Cash Chasing Hong Kong Stocks After Record Year — In a year disrupted by a global pandemic, political upheaval and abrupt setbacks for some of Hong Kong’s biggest stocks, investors point to one constant as to why 2021 looks brighter: relentless levels of money coming in.
- Fake Halal Meat Scandal in Muslim-Majority Malaysia Fuels Anger — A meat-fraud scandal is roiling Malaysia after a local news outlet uncovered a cartel that allegedly bribed customs officials in order to smuggle in all kinds of meat and label it halal, triggering outrage in the Muslim-majority country.
- Singapore Begins Covid Vaccinations as One of Asia’s First — Singapore started its planned vaccination exercise with a group of healthcare workers getting the first shots, making the city-state one of the first countries in Asia to begin protecting its population from the coronavirus.
- Europe’s Big Investment Deal with China Is a Mistake — For the sake of an agreement with Beijing, the EU has snubbed the incoming Biden administration and damaged the transatlantic cause.
- Mythical Hedge Fund Hindsight Capital Scores Big in 2020 — In a year when the pandemic made life hard, but making money wasn’t, the mythical hedge fund still managed to dazzle with these winning trades.
- Human-Run Hedge Funds Trounce Quants in Year Defined by Pandemic — Turns out, the hedge fund industry’s swashbucklers haven’t been made obsolete by the machines just yet.
- China Just Wiped Off GDP the Size of Ghana in Latest Revisions — China revised down its official GDP growth rate for 2019 to 6% from 6.1%, mainly due to a lower estimate for manufacturing output, a change that will make it slightly easier for officials to report economic expansion this year.
- China’s Central Bank Reiterates It Will Avoid Sharp Policy Exit — China’s central bank reiterated its pledge to avoid a sudden shift in monetary policy while it maintains necessary support for the economy’s recovery.
- Singapore’s Top Developer Woes Grow Over China Investment — The internal woes of Singapore’s second-largest listed developer, City Developments Ltd., continued to escalate after a second board member resigned over disagreements on an investment in China.
- Jack Ma Has Lost $11 Billion in Two Months on China Scrutiny — Jack Ma’s net worth has tumbled by almost $11 billion since the end of October as China stepped up scrutiny of his empire and the country’s tech behemoths.
Reuters
- EU seeks to rebalance China ties with investment agreement — BRUSSELS (Reuters) -The European Union and China agreed on Wednesday to an investment deal that will give European companies greater access to Chinese markets and help redress what Europe sees as unbalanced economic ties.
- Xi says China, EU investment deal will offer better business environment — China’s President Xi Jinping said on Wednesday an investment deal with the EU will offer bigger markets and a better business environment for both Chinese and European investments, the official Xinhua news agency reported.
- Factbox-Whats and whys of the EU-China investment agreement — The European Union and China agreed an investment pact on Wednesday, which Brussels believes will help redress what it sees as imbalanced economic ties.
- India says talks with China yet to make progress to end border standoff — Talks between India and China have yet to make headway to end a standoff on a disputed section of their Himalayan border, India’s defence minister said on Wednesday, as thousands of troops from both sides faced a freezing winter in the mountains.
- Ukraine signs up for China’s Sinovac vaccine, with doses expected soon — KYIV (Reuters) -Ukraine has signed contract to buy 1.8 million doses of China’s Sinovac COVID-19 vaccine, the presidential office said on Wednesday, with the shots expected in “the shortest possible time”.
- China fines JD.Com, Alibaba’s Tmall, Vipshop for irregular pricing — China’s market regulator said on Wednesday it has fined JD.Com Inc, Alibaba’s Tmall and Vipshop 500,000 yuan ($76,657) each for irregular pricing.
- China sentences HK activists to up to three years in jail for border crossing — A Chinese court sentenced 10 Hong Kong activists to between seven months and three years in jail on Wednesday for illegally crossing the border, in a case that has drawn international attention and concern over the defendants’ treatment.
- China’s Fosun to set up JV with BioNTech to make COVID-19 vaccines-Caixin — Shanghai Fosun Pharmaceutical Group will set up a joint venture with Germany’s BioNTech to produce COVID-19 vaccines in China, financial magazine Caixin reported on Wednesday.
- China to expand scope of legislation targeting money laundering, terrorism financing- PBOC — China’s central bank said on Wednesday it will put non-bank payment institutions, internet micro-lenders and consumer finance companies under the scope of anti-money laundering and anti-terrorism financing supervision.
- China’s Yahua agrees five-year deal to supply lithium to Tesla — China’s Sichuan Yahua Industrial Group Co Ltd said on Tuesday it had signed a deal to supply battery-grade lithium hydroxide to U.S. electric vehicle (EV) manufacturer Tesla Inc for the next five years.
- China-U.S. ties hold up property deal with Hong Kong consulate, Hang Lung says — Hong Kong developer Hang Lung Properties said it was unable to complete the purchase of a property owned by the U.S. consulate as scheduled on Wednesday because it involved foreign affairs between China and the United States.
- Singapore arrests man who spied for China in United States — Singapore authorities arrested a man on his return to the city-state on Wednesday after he was jailed for spying for China in the United States, saying they would investigate whether he posed a security risk.
- China seeks better protection of Yangtze river with landmark law — China is seeking to further protect the ecology and environment of the Yangtze river, the longest in Asia, in the country’s first set of legislation aimed at guarding the resources of a specific river basin.
- FTSE Russell could delete more Chinese companies after U.S. bolsters executive order — Global index publisher FTSE Russell said it may delete more Chinese companies from its global benchmarks, after the Trump administration on Monday strengthened an executive order barring U.S. investment in Chinese firms with alleged military backing.
Xinhua
- China’s Hainan opens 3 offshore duty-free shops — Consumers shop at a newly opened duty-free shop in Sanya, south China’s Hainan Province, Dec. 30, 2020. Three new offshore duty-free shops opened on Wednesday in south China’s island province of Hainan to promote tax-free consumption, according to the provincial department of commerce.
- China revises preliminary calculation of 2019 GDP — China’s gross domestic product (GDP) in 2019 was revised to 98.65 trillion yuan (about 15.1 trillion U.S. dollars), official data showed Wednesday.
- Yearender-Economic Watch: China expected to fine-tune monetary policy to boost recovery — China is expected to fine-tune its monetary policy next year to achieve the dual tasks of boosting economic recovery and forestalling financial risks, analysts said.
- China’s copyright industry’s added value exceeds 7 trillion yuan — The added value of China’s copyright industry reached 7.32 trillion yuan (about 1.12 trillion U.S. dollars) in 2019, registering a year-on-year increase of over 10 percent, according to the Chinese Academy of Press and Publication.
- China’s ice, snow industry reaches 423.5 bln yuan in 2019 — China’s ice and snow industry reached 423.5 billion yuan (about 64.85 billion U.S. dollars) by the end of 2019, said a report released at the ice and snow industry expo in northeast China’s Jilin Province.
- China’s Shanxi closes 163 coal mines in five years — Shanxi, a major coal-producing region in north China, has shut down 163 coal mines and eliminated 146.05 million tonnes of annual coal production capacity over the past five years.
- Across China: China’s ceramics hub rises above trade woes — From regular COVID-19 updates to client visits, Zheng Pengfei’s social media posts offer a glimpse into how his ceramics business has fared through much of the past year.
- Feature: E-commerce brings Salvadoran coffee, Chinese consumers closer amid pandemic — At Christmas time, coffee pickers at El Salvador’s mountaintop coffee plantations are busy filling baskets with the bright red berries used to produce the Central American country’s famed gourmet brew.
- Japan’s Nikkei gains for 2nd straight year to book highest year-end finish since 1989 — Tokyo stocks closed lower at the end of the final trading session of the year on Wednesday, as investors opted for profits following the Nikkei’s more than 2 percent advance and near 30-year closing high the previous day.
- German shares almost unchanged at start of trading on Wednesday — German stocks were almost unchanged at the start of trading on Wednesday, with the benchmark DAX index losing 10.39 points, or 0.08 percent, opening at 13,750.99 points.
- Tokyo stocks close lower on final trading day, Nikkei advances 20 pct in 2020 despite pandemic — Tokyo stocks closed lower at the end of the final trading session of the year on Wednesday, as investors opted for profits following the Nikkei’s more than 2 percent advance and near 30-year closing high the previous day.
- Chinese shares close higher Wednesday — Chinese stocks closed higher on Wednesday, with the benchmark Shanghai Composite Index up 1.05 percent, at 3,414.45 points.
Other Publications
- The Washington Post: Apple’s longtime supplier accused of using forced labor in China — New documents show Lens Technology, which makes iPhone glass and is owned by China’s richest woman, received Uighur Muslim laborers transferred from Xinjiang.
- The Economist: The Great Mall of China: The next big thing in retail comes with Chinese characteristics — Chinese apps are to 21st-century shopping what American malls were to last century’s.
- The Diplomat: Signing of the RCEP and the Future Asian Order — China is set to be a major beneficiary of the new agreement.
- Foreign Policy: Washington Still Wants China to Be a Responsible Stakeholder — Despite heated language, the U.S. goals haven’t changed.
