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
- Trump Issues New Ban on Alipay and Other Chinese Apps — President said the apps can access private information from their users, which could be used by the Chinese government.
- Chinese Regulators Try to Get Jack Ma’s Ant Group to Share Consumer Data — Request is part of Beijing’s crackdown on what it believes is Ant’s unfair advantage over other lenders.
- WHO Criticizes China for Stymying Investigation Into Covid-19 Origins — U.N. agency called out Beijing after its scientists weren’t given permission to enter China to probe the pandemic.
- China Hands Rare Death Sentence to Former Asset-Management Head — Lai Xiaomin was found guilty of bribery, embezzlement and bigamy; his punishment comes as crackdown on the financial sector intensifies.
- NYSE Takes Heat After Flip-Flop on Chinese Companies — Some investors felt whiplash from the moves; the three telecom stocks have gone on a wild ride.
- Hong Kong Police Arrest 53 Opposition Figures Over Alleged Subversion — An American lawyer was also taken away. Operation is the biggest since the sweeping national security law was imposed six months ago.
The Financial Times
- US/China app bans: purple haze — Biden should clarify whether he will roll back executive orders targeting Chinese business.
- How will Joe Biden react to the EU-China deal? — Accord will have irked new administration, but they may still co-operate with Brussels.
- Alibaba plans to raise up to $8bn in dollar bond sale — Deal comes at delicate time for group but could be one of biggest for Chinese corporate debt market.
- Hong Kong police round up dozens of pro-democracy politicians — US citizen among those detained in one of biggest purges under Beijing’s security law.
- China blocks WHO team sent to probe Covid’s origins — International investigation stymied by lack of access to Wuhan amid calls for transparency.
- Trump moves to ban Chinese payment apps including Alipay — US president ratchets up tech tensions with Beijing days before Joe Biden’s inauguration.
- The world should be wary of ‘feeding crocodiles’ in China — Hong Kong protesters have watched their free international city be snuffed out.
- China’s crackdown on Ant is not without risks — Beijing must continue to allow private enterprise and innovation to thrive.
The New York Times
- Hong Kong Police Arrest Dozens of Pro-Democracy Leaders — The 53 officials and activists were detained under the national security law for their efforts to choose candidates to run in the city’s legislative elections.
- Here Are the 8 Chinese Apps Trump Banned — The White House took a surprise parting shot at China on Tuesday by banning the popular Chinese payment service and other applications.
- China Sentences Huarong’s Lai Xiaomin to Death — The judgment against Lai Xiaomin, a former chairman of Huarong Asset Management, followed a shift away from capital punishment for white-collar crimes.
Caixin
- China Raises Overseas Lending Limit to Curb Yuan’s Strength — A tide of overseas money flowing into the country has helped fuel the currency’s rally in recent months.
- China Moves Performance Goal Posts for Banks — New system intended to bolster support for national economic policies links top bankers’ pay to meeting metrics on serving the ‘real economy’.
- A Chinese Economic Data Calendar for 2021 — Though the post-epidemic recovery still faces a long road ahead, this year could be the start of a more vibrant period of economic growth for the country.
- China Writes Hainan Free Trade Port Plan Into Law — Draft legislation following a pilot program will make the southern island province China’s largest free trade area with zero tariffs, low tax rates and a simplified tax system.
- Minuscule Demand Isn’t Stopping Money-Losing Flexible-Screen Firm From Eyeing Shanghai IPO — Royole is hoping investors buy into its story that there will be a big market for its products, eventually.
- China Slams Trump Order Banning Alipay, WeChat Pay — Order is the outgoing administration’s latest bid to use national security powers against China’s technology companies.
- Music Stops for Alibaba’s Xiami Streaming Service — The service will stop all streaming on Feb. 5 after its struggle to maintain a strong enough music catalogue to keep users interested.
- China’s Electric-Vehicle Makers Switching to Cheaper Batteries as Subsidy Cut Looms — Local giant BYD joins Tesla in making the change in some of their models to lithium iron phosphate batteries, which are 15% cheaper than the widely used ternary lithium power cells.
- Hong Kong Casino Operator Reports $13.4 Million in Cash Missing From Korean Resort — Reports of the missing money coincide with Tuesday’s death sentence of Lai Xiaomin, who once led China Huarong Asset Management, one of the company’s creditors.
- Tencent Doubles Down in Betting on AI Chip Company Enflame Tech — Shanghai-based startup raises $279 million, doubling valuation to $1.67 billion and continuing winning streak for AI companies raising venture funds.
- Death Sentence for Former Top Financial Official Whose Corruption Shocked Nation — A Chinese court has sentenced a former top financial official to death after he was found guilty of bribery, bigamy, and embezzlement.
- Sequoia-Backed Chinese E-Cigarette Brand RLX Files for $100m US IPO — RLX Technology, a Chinese e-cigarette brand backed by Sequoia Capital China, has filed with the US Securities and Exchange Commission (SEC) for an initial public offering (IPO) to raise $100 million – likely a placeholder amount subject to change.
South China Morning Post
- China ‘in close communication’ with WHO on Covid-19 origins mission — Beijing says it is communicating with the World Health Organization on arrangements for its team to visit China to investigate the origins of Covid-19, after the scientists learned at the last minute that they had not yet been granted entry.
- Chinese vaccines and more China-funded infrastructure on agenda for Nigeria — Nigeria is in talks to procure China-made coronavirus vaccines, the West African country’s foreign minister said during Chinese counterpart Wang Yi’s visit on Tuesday.
- UK’s Benenden School, once attended by Princess Anne, to open its first Chinese campus in Guangzhou in 2023 — A British boarding school once attended by the Queen’s daughter, Princess Anne, is to open its first campus in mainland China after teaming up with an education group based in Hong Kong.
- EU should not let others interfere in relations with China, Wang Yi says — Chinese Foreign Minister Wang Yi called on Europe not to be swayed by other nations in its relations with Beijing, following the conclusion of a major investment treaty between China and the EU that has alarmed Washington.
- China rejects Mike Pompeo’s challenge to its ‘near-Arctic nation’ claim — Beijing has rejected US Secretary of State Mike Pompeo’s attack on its claim to be a “near-Arctic state”, as the two countries continue to spar over China’s role in the region.
- US-China ties: Biden has limited time to repair Trump’s damage, say analysts — With US President-elect Joe Biden set to be sworn into office within weeks, US-China watchers are upbeat that the incoming administration could provide fresh opportunities to mend ties with Beijing and increase its commitment to Asia.
- Coronavirus: World Bank cuts global growth estimate, but sees big Chinese recovery — The World Bank on Tuesday downgraded its outlook for the global economy, and warned the situation could deteriorate if Covid-19 infections accelerate or the vaccine roll-out is delayed.
- China moves to curb yuan rally pressure due to hot money and export concerns — The rapid appreciation in the yuan’s exchange rate has resulted in capital inflows and given rise to concerns about its effect on exports and China’s manufacturing competitiveness, with policymakers making moves this week to curb its ascent.
- China’s services sector activity expanded at slower pace in December as coronavirus outbreaks tempered recovery — China’s services sector activity expanded at a slower pace in December, a private sector survey showed on Wednesday, as sporadic coronavirus outbreaks tempered the recovery in consumer confidence and weighed on new business growth.
- China’s scrap-steel imports ‘symbolic’ after two-year ban lifted, will not reduce need for iron ore — China’s first deals to import scrap steel since lifting a two-year ban on it last week are “symbolic” and do not signal that the country is set to significantly reduce its demand for iron ore as the key steelmaking ingredient, according to analysts.
- Hong Kong fourth wave: residents feeling pinch of coronavirus pandemic not allowed to dip into MPF pension scheme early — Hong Kong residents struggling financially amid the coronavirus pandemic will not be allowed to dip into their pension funds early, though the welfare department will ease the threshold for the unemployed to apply for social security aid, the government has said.
- Hong Kong’s stock exchange operator HKEX topples Chicago’s CME as world’s most valuable as US-China rift brings in more listings — Hong Kong Exchanges and Clearing (HKEX) has overtaken Chicago-based CME Group as the world’s largest bourse by market capitalisation, as hopes of more listings of Chinese technology giants bolsters its prospects.
- Greater Bay Area tourism plan lauded, but experts warn rifts between Hong Kong, mainland China remain — Beijing’s ambition to catapult the Greater Bay Area economic zone, which includes Hong Kong and Macau, into a cultural and tourism hub through youth engagement will have to first address the cross-border political divide, academics and experts have said.
- Donald Trump signs order banning transactions with 8 Chinese apps, including Alipay — US President Donald Trump on Tuesday signed an executive order to ban transactions with eight Chinese software applications, citing national security concerns that the programs could provide Americans’ personal data to the Chinese government.
Bloomberg
- Jack Ma Fades From Public View as China Cracks Down — The fintech industry could feel the greatest impact of Beijing’s tighter enforcement.
- Beijing Sends Stark Message to Biden With Hong Kong Crackdown — China’s unprecedented arrest of dozens of leading Hong Kong opposition figures illustrates the depth of Joe Biden’s challenges with Beijing. By the time he becomes U.S. president, there might not be much democracy left to save in the Asian financial hub.
- Hollywood Losing Ground to Chinese Movies in Biggest Market — Box office collections by foreign films in China more than halved in 2020, posing a tough challenge for Hollywood in one of the few major markets to be recovering from the pandemic.
- Hong Kong Arrests U.S. Citizen, Dozens More Under Security Law — Hong Kong arrested dozens of opposition figures under a controversial national security law, an unprecedented crackdown that included an American lawyer, as authorities work to quash any dissent that remains in the former British colony.
- WHO Issues Rare Rebuke to China for Delaying Virus Team — The World Health Organization expressed disappointment with China for delaying the travel of experts to the Asian country to investigate the origin of the virus, in a rare instance of public criticism from the international organization.
- Trump Targets Ant’s Alipay, WeChat Pay in Latest App Bans — President Donald Trump signed an order banning U.S. transactions with eight Chinese apps including Ant Group Co.’s Alipay and Tencent Holdings Ltd.’s digital wallets, riling Beijing days before he’s slated to leave office.
- NYSE’s Second-Guessing on China Delistings Sows Confusion — Almost two months after President Donald Trump said he’s cutting off U.S. investment in companies tied to China’s military, confusion reigns on Wall Street over how to interpret his order. One certainty: Savers are losing billions.
- Buffett Loses Spot on Wealth List to China’s Bottled-Water King — Zhong Shanshan is setting new wealth records.
- China Acts to Slow Gains by Strongest Yuan in Almost Three Years — There are growing signs that Beijing is keen to slow the ascent in China’s currency after it surged to the highest level since mid-2018 against the dollar.
- Alibaba Plans to Sell Up to $8 Billion Bonds in Show of Strength — Alibaba Group Holding Ltd. is looking to raise as much as $8 billion selling dollar bonds as early as next week, according to people familiar with the matter.
- China Says U.S. Flip Flops ‘All the Time’ Amid NYSE Reversals — China said the U.S. “has been flipping flopping all the time” and urged it to respect market principles after investors were whipsawed by uncertainty over the status of three major Chinese telecommunication giants traded on the New York Stock Exchange.
- S&P Dow Jones Says It’ll Cancel Deletion of China Telco ADRs — S&P Dow Jones Indices said it will no longer delete the U.S.-listed shares of three Chinese telecom firms from its benchmarks, a move that was set to take effect on Thursday.
- Work-From-Home Won’t Hurt Hong Kong Office Market, JPMorgan Says — The shift to working from home may not harm office demand much in the world’s most expensive property market, as companies and workers brush against the limitations of the arrangement.
- How Beauty-Boosting Shots Made Two Women Billionaires — Fiona Cai is an internet host from Nanchang, China, who livestreams the nation’s pop songs to several thousand social-media followers. She’s 28 but spends about 1,000 yuan ($155) each month for a skin booster injection.
- Global Switch’s Chinese Owners Said to Mull $11 Billion Sale — The owners of Global Switch Holdings Ltd. are exploring a sale that could value the London-based data center operator at 8 billion pounds ($10.9 billion) or more, people with knowledge of the matter said, potentially extending the list of major overseas investment disposals by Chinese investors.
- China Sentences Ex-Finance Chief to Death on Corruption — China condemned the former chairman of China Huarong Asset Management Co. to death on charges of taking bribes, one of the most severe sentences to stem from President Xi Jinping’s anti-corruption drive.
- A Business Tycoon and Bigamist Gets the Death Sentence in Debt-Ridden China — The harsh penalty against Lai Xiaomin is likely a warning to others in the sprawling state-run financial sector to stick to their duties.
- China’s Biden Plan Can Be Seen in EU Trade Deal — The new U.S. administration wants to repair the global alliances Trump ravaged, but Beijing won’t make that easy.
- China’s Dreams of Self-Reliance in High-End Manufacturing Depend on Japan — Rising ambitions on the mainland to compete in high-end manufacturing are creating a boom for machinery companies.
- China Turns to New Commerce Minister as U.S. Tensions Simmer — Wang Wentao has the investor-friendly background that one might expect from China’s next commerce minister. But it’s political credentials that might be key to his success amid increasing hostility with the U.S.
- Mnuchin Told NYSE He Disagrees With Reversal on Chinese Stocks — Treasury Secretary Steven Mnuchin called NYSE Group Inc. President Stacey Cunningham Tuesday to express his disapproval with the exchange’s suprise decision to spare three major Chinese telecommunications companies from being delisted, according to two people familiar with the matter.
Reuters
- NYSE may make second U-turn on China telecom delistings amid confusion over policy — The New York Stock Exchange is reconsidering its plan to allow three Chinese telecom giants to remain listed, the latest twist to a saga amid confusion over rules set by the Trump administration and tension within Washington on China policy.
- Italy’s CNH and China’s FAW in talks over truckmaker Iveco — CNH Industrial is in talks with China’s FAW over the future of truckmaker Iveco, the Italian-American group said on Wednesdy after sources told Reuters it had revived previously aborted negotiations.
- China notifies Mekong River neighbours it is holding back waters — China has notified downstream neighbours it is holding back the Mekong River flow at a hydropower dam on the waterway’s upper reaches for 20 days, as part of a new data-sharing pact, the Mekong River Commission (MRC) and Thailand said on Wednesday.
- China suspends poultry imports from France due to bird flu — China has stopped poultry imports from France due to highly pathogenic H5N8 bird flu from Jan. 5 to protect the country’s animal husbandry sector, the General Administration of Customs said on Wednesday.
- Indonesia governor believes drone behind security scare was made in China — The governor of Indonesia’s South Sulawesi said on Tuesday an autonomous underwater vehicle (AUV) found in the waters off his province that has sparked concern about a potential security breach or espionage attempt appeared to be made in China.
- China notifies Mekong River neighbours it is holding back waters — China has notified downstream neighbours it is holding back the Mekong River flow at a hydropower dam on the waterway’s upper reaches for 20 days, as part of a new data-sharing pact, the Mekong River Commission (MRC) and Thailand said on Wednesday.
- China’s central bank says it will make policy flexible, targeted in 2021 — China’s central bank said on Wednesday it would make its monetary policy flexible, targeted and appropriate in 2021, focusing on supporting small firms as the economy recovers.
- GM’s 2020 China sales drop for third year as pandemic hits market — General Motors Co’s vehicle sales in China fell 6.2% in 2020, as the U.S. automaker suffered a prolonged sales slowdown in the world’s biggest auto market.
- China says it will respond to planned Taiwan, U.S. defense talks — China said on Wednesday it would make a “necessary response” to a planned military dialogue between the United States and Chinese-claimed Taiwan, saying it firmly opposed the event.
- Trump bars U.S. transactions with eight Chinese apps including Alipay — U.S. President Donald Trump on Tuesday signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s Alipay mobile payment app, the White House said, escalating tensions with Beijing two weeks before President-elect Joe Biden takes office.
- Exclusive: Alibaba plans $5 billion bond this month amid regulatory scrutiny – sources — China’s Alibaba Group Holding Ltd plans to raise at least $5 billion through the sale of a U.S. dollar-denominated bond this month, four people with knowledge of the matter said, amid regulatory scrutiny of co-founder Jack Ma’s empire.
- China says to take necessary measures to safeguard rights of app firms banned by U.S. — China said on Wednesday it would take necessary measures to safeguard the legitimate rights of companies, after U.S. President Donald Trump signed an order banning U.S. transactions with eight Chinese apps.
- China supports Hong Kong authorities in fulfilling duties — China said on Wednesday it supports Hong Kong authorities in the fulfilment of their duties after Hong Kong police arrested 53 people in a swoop on pro-democracy activists.
- S&P Dow Jones to no longer remove ADRs of Chinese telecom companies — S&P Dow Jones Indices said on Wednesday it will no longer remove ADRs of three Chinese telecom giants from its benchmarks after the New York Stock Exchange said this week it no longer plans to delist them.
- Chinese fund managers rush to capitalize on investors’ green fever — Chinese money managers are rushing to launch new energy funds, seeking to capitalize on investors’ green fever which has been fuelled by President Xi Jinping’s carbon neutrality pledge.
- China’s Sinopec builds first phase of new shale gas field in Sichuan — China’s Sinopec Corp said on Wednesday it had completed building the first phase of a new shale gas field, Weirong, in southwestern Sichuan province with an annual production capacity of 1 billion cubic meters of natural gas.
- Mnuchin tells NYSE chief he disagrees with reversal of Chinese delisting plans -source — U.S. Treasury Secretary Steven Mnuchin phoned New York Stock Exchange President Stacey Cunningham to tell her he disagrees with the NYSE’s decision to reverse course on delistings of three Chinese telecoms firms, a source familiar with the matter said on Tuesday.
- China urges calm and restraint after Iran enrichment announcement — China urged calm and restraint on Tuesday after Iran said it had resumed 20% uranium enrichment at an underground nuclear facility, which breaches a 2015 nuclear pact with major powers, including China.
Xinhua
- SF Airlines expands global air cargo network to 77 destinations — SF Airlines, China’s largest air cargo carrier, has expanded its global network to 77 destinations at home and abroad, according to the cargo airline.
Other Publications
- Nikkei Asian Review: Russia deepens China ties with expanded energy exports — Doubling of coal trade aimed to supplant that with Australia.
- Axios: Global textile watchdogs struggled to raise alarms in Xinjiang — The world has learned of China’s sweeping system of forced labor in the Xinjiang garment industry not through fair trade organizations but through independent researchers, journalists and the testimonies of former detainees.