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 Fines Alibaba, JD.com, Vipshop Over Pricing Complaints — The fines, though nominal, continue China’s campaign to rein in the powerful tech sector.
- Chinese Markets Shined This Year, Signal a Repeat in 2021 — Nation to benefit from post-pandemic rebound as well as from funds sloshing around the world’s financial system and low interest rates.
- Xi’s China Crafts Campaign to Boost Youth Patriotism — Slick videos on social media with a nationalistic message are notching millions of views.
- China Heads Into 2021 With Wind at Its Back — Chinese economic strength seems likely to continue in 2021 as global trade keeps recovering and consumers regain confidence.
- China Finishes Off a Wild Year With More Manufacturing Growth — The economy also showed strength outside its factories.
- Cold War With China Is Avoidable — Today’s challenge is different. Beijing has economic power Moscow could only dream of.
The Financial Times
- Hong Kong media mogul Jimmy Lai sent back to jail — Pro-democracy activist’s bail rescinded days after Chinese state media slams his release.
- The big questions for Big Tech in 2021 — Regulation and retention will determine whether Facebook, Google, Alibaba and their peers continue to clean up.
- China approves first domestic Covid-19 vaccine for general use — Sinopharm claims 79% efficacy but concerns remain over lack of trial data transparency.
- What is in the EU-China investment treaty? — Deal improves level playing field for European investors, while Chinese companies benefit from new openings.
- Climate efforts have entered a tricky new phase — Governments need to turn emission reduction pledges into action.
The New York Times
- Jobs, Houses and Cows: China’s Costly Drive to Erase Extreme Poverty — China has spent heavily to help its poorest citizens, an approach that few developing countries can afford and even Beijing may struggle to sustain.
- Trump Was Briefed on Uncorroborated Intelligence About Chinese Bounties — The unverified intelligence echoes a similar report, deemed credible by the C.I.A. but dismissed by the president, that Russian military agents had offered payments for attacks on Americans in Afghanistan.
Caixin
- Allianz Group Exits China Pacific Insurance Joint Venture — Munich-based global insurance giant set up a wholly owned China unit in January under the government’s financial opening-up policies.
- Update: China Steps Up Money Laundering Oversight With New Rules — Nonbank financial institutions including payment companies will also have to comply with the proposed regulations.
- China Clears Annuity Funds to Pour $45.9 Billion More Into Stocks — Liberalized investment rules covering $475 billion of retirement assets also adds Hong Kong, removing mainland-market limitation.
- Electric-Car Battery Giant to Turbo-Charge Capacity With $6 Billion Investment — CATL plans to ride NEV growth by boosting output at manufacturing centers in three Chinese provinces.
- Beijing Restarts Coal-Fired Power Plant as Extreme Cold Grips Capital — Huaneng Beijing Thermal Power Plant was shut down four years ago to give the capital clean energy credentials.
- JD.com, Alibaba’s Tmall and Vipshop Fined for Manipulative Pricing — China’s market watchdog on Wednesday said it has fined the operators of JD.com, Alibaba’s Tmall marketplace and Vipshop 500,000 yuan ($76,500) each for illicit pricing activities, the latest move in Beijing’s clampdown on monopolistic practices in the e-commerce sector.
- Chinese Fake Meat Startup Hey Maet Closes New Funding Round as Competition Intensifies — Chinese plant-based meat startup Hey Maet has raised tens of millions of yuan in a new funding round, the third since its establishment in March this year, in a demonstration of investors’ growing bet on a future in which faux meat could please the palates of foodies while providing sufficient nutrients.
South China Morning Post
- China’s rich face million dollar question: stay and risk losing assets, or face the coronavirus abroad? — While some affluent Chinese would like to emigrate to escape a perceived harsher environment for private entrepreneurs at home, they are increasingly reluctant to do so – at least in the next few years – because of concern about the coronavirus pandemic in popular destinations abroad, consultants and businesspeople say.
- China-EU investment deal: ‘landmark’ treaty greeted with a shrug by underwhelmed analysts — The China-EU investment deal agreed to in principle on Wednesday has been greeted with a shrug by economists, with some questioning whether an under-pressure European Commission has oversold a deal that will not significantly move the needle in economic terms.
- China’s new microlending curbs do not address underlying issue of household debt and borrowing, analysts say — New rules intended to rein in China’s booming microlending market may force a number of online platforms out of business, but analysts say it will do little to curb rising household debt, nor completely stop young people from borrowing.
- China averts liquidity squeeze by pumping US$92 billion of funding into banks over five weeks to spare the havoc on bonds — China’s central bank has pumped enough cash into the banking system to convince government bond investors that the worst is finally over.
- China economy 2020 review: the highs and lows of a coronavirus-hit 12 months — Like most of the world, China’s economy has endured a turbulent year brought on by the wide reaching impact of the coronavirus.
- China’s economic activity slowed modestly in December, new data shows — China’s economy activity slowed modestly in December, led by declines in the manufacturing and services sectors, but remained relatively strong, according to new sentiment data released on Thursday.
- Shenzhen to focus on chips, AI and biomedicine to grow GDP 40 per cent over five years in the face of US hostility and economic slowdown — Shenzhen, the southern boomtown hand-picked by Chinese President Xi Jinping as a model “socialist” city, has set lofty development and technology goals in a blueprint for 2025 and beyond, painting itself a bright future despite challenges from US sanctions and slowing economic growth at home.
Bloomberg
- Hong Kong’s Top Court Sends Tycoon Jimmy Lai Back to Jail — Hong Kong’s highest court sent tycoon Jimmy Lai back to jail as he fights national security charges, in a decision that also signaled plans to interpret provisions the Beijing-drafted law used to charge him.
- Bubble Tea Chain Naixue Said to Raise Funds at $2 Billion Value — The owner of bubble tea chain Nayuki, also known as Naixue’s Tea in Chinese, has completed a new funding round that values the company at nearly $2 billion, according to people familiar with the matter.
- China Caps Bank Loans to Real Estate to Curb Systematic Risk — China’s regulators will impose caps on banks’ lending to the real estate sector for the first time, in their latest efforts to prevent systematic risks after a series of property curbs in recent years did little to damp buyer enthusiasm.
- China Is Said to Weigh Requiring Ant to Sell Finance Investments — Chinese regulators are studying plans to force Ant Group Co. to divest equity investments in some financial companies, curbing the company’s influence over the sector, according to a person familiar with the matter.
- China’s Yuan, Stocks Climb to New Highs in Bullish End to Year — China’s stocks and the yuan rose on the final trading day of 2020 on signs an economic recovery is on solid footing.
- EU, China Give Political Nod to Market-Opening Investment Pact — The European Union and China announced the political approval of an agreement to open the Chinese market further to EU investors, marking a major step in talks that began in 2013.
- China Averts Cash Squeeze That Was Wreaking Havoc on Bonds — China’s central bank has pumped enough cash into the banking system to convince government bond investors that the worst is finally over.
- Xi Sees Threats to China’s Security Everywhere Heading Into 2021 — In Xi Jinping’s China, nearly everything is becoming a national security issue.
- These Are 2020’s Winners and Losers in Asia Stock Markets: Chart — Success in containing the coronavirus and the composition of national benchmark indexes were two of the key factors separating winners and losers among Asia’s stock markets this year. Relatively better control of Covid-19 and heavier weightings of technology stocks helped South Korea and China stand out as the two best-performing markets, with their main equity indexes rising about 31% and 25%, respectively. In contrast, cyclical-heavy Singapore had the worst-performing share gauge in the region
- China’s Bottled Water King Dethrones Ambani as Asia’s Richest — Zhong Shanshan is a private billionaire who’s rarely quoted in the press.
- China is Making it Harder to Solve the Mystery of How Covid Began — Investigators may never know how Covid-19 emerged in the country — and how to stop it from happening again.
- 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.
Reuters
- China asks all internet platforms to investigate fintech operations — China’s banking and insurance regulator on Thursday said all internet platforms should investigate their fintech businesses to ensure they comply with regulatory requirements, and rectify any failings as soon as possible.
- Explainer-What we know about China-made vaccines — China was ahead in the global race to develop coronavirus vaccines with the most candidates in late stage of trials earlier in the year and its first approval of a homemade shot for the general public came on Thursday, yet with no detailed efficacy data.
- China jails 29 Taiwanese deported from Spain for fraud — A Beijing court sentenced 29 people from Taiwan who had been deported from Spain to up to 14 years in jail on Thursday for telecoms fraud, part of a series of deportations decried by Taiwan as an abuse of human rights.
- China iron ore surges over 50% in 2020, up for second straight year — Chinese iron ore futures advanced on the last trading day of 2020 to log a 54% jump this year, their second straight annual gain, supported by supply concerns and China’s robust steel demand despite the coronavirus pandemic-led disruption.
- Apple removes 39,000 game apps from China store to meet deadline — Apple removed 39,000 game apps on its China store Thursday, the biggest removal ever in a single day, as it set year-end as deadline for all game publishers to obtain a licence.
- China holds sway in Nepal as rival communist factions create crisis — Alarmed that a political crisis in Nepal could endanger China’s strategic interests and Belt and Road projects, a Chinese Communist Party emissary has held days of talks to try to stop the Himalayan country’s ruling communist party from tearing itself apart.
- China to release more meat from state reserves as holidays near — China will release more meat from state reserves to boost supply, commerce ministry spokesman Gao Feng told a regular news briefing on Thursday, readying for a jump in consumption over the approaching Lunar New Year holiday.
- Chinese delegation met with leaders of Nepal’s ruling party, opposition — A Chinese delegation to Nepal met with the leaders of both the ruling party and the opposition, China’s foreign ministry spokesman Wang Wenbin said on Thursday.
- China tells U.S. politicians to stop using Xinjiang to interfere in its affairs — China on Thursday urged U.S. politicians to stop using issues in its Xinjiang region to interfere in its affairs, after the United States demanded the release of a Uighur doctor.
- Exclusive: Chinese regulators probe Ant Group’s equity investments – sources — Chinese regulators are reviewing equity investments held by Ant Group Co Ltd in dozens of companies, three people with knowledge of the matter said, intensifying a crackdown on billionaire Jack Ma’s financial technology empire.
- Pakistan to purchase 1.2 million COVID-19 vaccine doses from China’s Sinopharm — ISLAMABAD (Reuters) -Pakistan will purchase 1.2 million COVID-19 vaccine doses from China’s Sinopharm, a minister said on Thursday, the first official confirmation of a vaccine purchase by the South Asian country as it battles a second wave of infections.
- China issues five million tonne clean marine fuel export quotas for 2021: traders — China has issued 5 million tonnes of clean marine fuel export quotas in the first release for 2021, to five companies including a private refiner, according to two trading sources with knowledge of the matter.
- China’s factory recovery moderates as higher costs slow business — China’s factory activity expanded in December as hot export demand fueled a recovery in the world’s second-largest economy from the coronavirus slump, although higher labour and transport costs slowed the pace of growth.
- U.S. warships transit Taiwan Strait, China denounces ‘provocation’ — TAIPEI/BEIJING (Reuters) -Two U.S. warships sailed through the sensitive Taiwan Strait on Thursday drawing protest from Beijing, the second such mission this month and coming almost two weeks after a Chinese aircraft carrier group used the same waterway.
- Breakingviews – China’s gravy train will bypass Wall Street — Investment bankers will have a great chance in 2021 to apply their well-honed skills at talking up opportunities and downplaying league tables. The easiest money from selling Chinese shares in New York is destined to fade. And profitably pushing further onto the mainland will be hard work.
- EU agrees investment deal with China to rebalance ties — 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.
- France’s Macron says dialogue between EU and China now stronger — French President Emmanuel Macron said on Wednesday that relations between the European Union and China had strengthened in recent years, following an investment deal that will give European companies greater access to Chinese markets.
- Factbox-Whats and whys of the EU-China investment agreement — BRUSSELS (Reuters) -The European Union and China agreed an investment pact on Wednesday, which Brussels believes will help redress what it sees as imbalanced economic ties.
- China says EU investment deal gives legally binding market-access commitments — Chinese companies will receive binding commitments of access to the EU market under a new investment agreement, while China will open up its financial, manufacturing and services sectors to the 27-nation bloc, a Chinese government official said.
- 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.
- 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.
Xinhua
- China plans tourism development for Greater Bay Area — China has recently rolled out a comprehensive development plan on the cultural and tourism development for the Guangdong-Hong Kong-Macao Greater Bay Area, said the Ministry of Culture and Tourism on Wednesday.
- U.S.-listed Chinese firms trade higher — U.S.-listed Chinese companies roughly traded higher on Wednesday with all the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on an upbeat note.
- China tightens regulation for loans to real estate sector — China’s regulators on Thursday announced a policy to tighten regulation for loans to the real estate sector and home mortgage loans to guard against systemic risks and improve the stability of the financial system.
- China’s non-manufacturing PMI falls in December — The purchasing managers’ index (PMI) for China’s non-manufacturing sector came in at 55.7 in December, down from 56.4 in November, the National Bureau of Statistics (NBS) said Thursday.
- China’s non-financial ODI down 3.1 pct in January-November — China’s non-financial outbound direct investment (ODI) went down 3.1 percent year on year in the first 11 months of the year, official data showed Thursday.
- Chinese shares close higher, finish 2020 on upbeat note — Chinese stocks closed higher on the last trading day of 2020, wrapping up the unusual year on an upbeat note.
- Chinese shares close higher Thursday — Chinese stocks closed higher on Thursday, with the benchmark Shanghai Composite Index up 1.72 percent, at 3,473.07 points.
Other Publications
- Nikkei Asian Review: Global banks see US-China tensions halting deal-fees boon in 2021 — Foreign firms say accounting rules will push listings to mainland and Hong Kong.
- Nikkei Asian Review: China’s digital yuan threatens sprawling Alibaba empire — Official currency could hobble growth by crippling payments operation.
- The Economist: Chinese trustbusters’ pursuit of Alibaba is only the start — Beijing has put online giants on notice.
- Axios: Scoop: Trump administration declassifies unconfirmed intel on Chinese bounties — The Trump administration is declassifying as-yet uncorroborated intelligence, recently briefed to President Trump, that indicates China offered to pay non-state actors in Afghanistan to attack American soldiers, two senior administration officials tell Axios.
- POLITICO: Intel on China bounties called ‘less’ credible than Russia payments — “Very thin” and “rumors” are how one senior official described the intelligence report that Beijing is plotting to kill American troops in Afghanistan.
- The Economist: Extreme poverty is history in China, officials say — Inequality is a different matter.