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 Population Increased in 2020, Government Says — Statistics bureau offers no details, saying only that detailed data would be released in its coming once-a-decade census report.
- China Advances Space Station Ambition With Module Launch — Xi says Tianhe module’s launch marks an important step toward becoming powerful in science, technology and aerospace.
- Watch China Launch the First Module for Its New Space Station [Video] — China launched the main module of its first permanent space station into orbit, aiming to rival the much larger International Space Station and marking another milestone in its ambitious space program.
- Chinese Financial Regulators Issue Warning to Big Tech Firms — Regulators orders large technology companies including Tencent and JD.com to rectify financial business practices seen as risky.
- Beijing’s Squeeze on Fragile Real-Estate Developers Is Getting Real — Broad bank lending to the real-estate sector, and developers’ access to bond markets, are both being squeezed; the companies are increasingly dependent on large deposits from home buyers.
The Financial Times
- China launches first part of space station into orbit — Beijing looks to close gap with US to become a leader in exploring the cosmos.
- Big Four auditors squeezed between US and China — A fight over access to accounts of Chinese companies spells danger for PwC, Deloitte, EY and KPMG.
The New York Times
- China’s Internet Antitrust Push Leads to Corporate Clashes — Internet companies are using the threat of government action as a cudgel against rivals. That could make the Communist Party the ultimate arbiter over the industry.
- China and the Fall of Jack Ma’s Ant Group — Chinese regulators have a message for the finance sector: Tread carefully.
Caixin
- Morgan Stanley Set to Take Greater Control Over Two China Joint Ventures — U.S. investment bank has first right of refusal over purchase of stakes being sold by its partner, China Fortune Securities.
- Henan Sets Up $4.6 Billion Fund to Address Local Firms’ Debt Risks — Central China province acts to shore up businesses after a series of defaults last year shook investor confidence and rattled the bond market.
- In Depth: No More Regulatory Blind Eye for Internet M&A — Antitrust crackdown on China’s internet giants means closer scrutiny of the kind of deal-making that turned Alibaba and Tencent into tech kingpins.
- With IPO on Its Agenda, Syngenta Group Reports Accelerating Growth — Recently formed Swiss-based, Chinese-owned agricultural giant says its revenue and EBITDA rose about 20% year-on-year in first quarter.
South China Morning Post
- China-EU investment deal casts long shadow over Beijing’s vague sanctions against Europeans — When the European Union sanctioned four Chinese officials in March over suspected human rights violations in China’s far western region of Xinjiang, the response from Beijing was swift.
- China-Australia relations: as wine exports continue piling up at Chinese ports, Australian officials explore options — Chinese customs officials have continued to detain more Australian wine at ports of entry this year, while sales to China have plunged as Australian trade authorities consider ways to negotiate the release of shipments.
- China oil spill put at 400 tonnes, maritime agency says clean-up ongoing — About 400 tonnes of oil spilled into the Yellow Sea after a tanker was hit by another ship off China’s largest crude-receiving port on Tuesday, maritime authorities said on Thursday.
- China-Africa trade leaps in first quarter on post-pandemic rebound — Trade between China and Africa rose by 26.9 per cent in the first quarter of this year compared with 2020, helped by the recovery of economies after the devastating coronavirus pandemic.
Bloomberg
- China’s Surprise Bond Reprieve Raises Fears of Crunch in May — Fears of a selloff in China’s sovereign bond market have proved wrong, with traders now bracing for the pressure to build through May.
- Shock and Tears: Behind Vanguard’s Retreat From China Market — Vanguard Group Inc. staff who dialed into a video call from their desks on the 40th floor of the Shanghai World Financial Center last month were expecting a morale-boosting speech from regional head Scott Conking on how the U.S. fund giant would tackle the Chinese market after years of preparation.
- Human Rights, Defense and Turbines: What Biden Said About China — President Joe Biden spent most of his speech to Congress Wednesday focused on America’s domestic priorities, from taxes to health care. But sprinkled throughout were references to China, underscoring just how much he’s focused on the world’s second-biggest economy.
- How Ratings Agencies Ignored China Debt Risks Over Huarong — After the Lehman collapse, it’s another embarrassing black eye for the credit watchdogs.
Reuters
- China’s Big Five banks boost profits, but margins shrink — Five of China’s largest state-owned banks have reported higher first-quarter net profits, helped by a rebound in the country’s economy from the coronavirus pandemic.
- PetroChina posts best quarterly profit in seven years — SINGAPORE/BEIJING (Reuters) -PetroChina on Thursday reported its biggest quarterly profit in seven years, citing rising oil and gas prices and a recovery in Chinese fuel demand from last year’s deep coronavirus slump.
- Fed’s Powell: China’s approach to digital currency would not work in U.S — (Reuters) -China’s rapid development of a digital version of the yuan will not push the Federal Reserve to rush its own digital currency project, Federal Reserve Chair Jerome Powell said on Wednesday, adding that China’s approach would not work in the United States.
Other Publications
- Economist: China’s population appears to be shrinking — The implications for the country are enormous.
- Economist: Even doveish China-watchers in America are becoming hawkish — On this, the difference between the Biden and Trump administrations is small.
- Economist: Nominal spending figures understate China’s military might — Entry-level pay for soldiers is 16 times higher in America than in China.
- Economist: China’s growing military confidence puts Taiwan at risk — All-out conflict may not feel imminent, but America is deeply concerned.
- Economist: How TSMC has mastered the geopolitics of chipmaking — Make yourself indispensable to both America and China.
- Nikkei Asian Review: Alibaba ‘rectification’ marks slowdown of China’s internet economy — Big Tech takes nudge to focus on business services for growth.
- Nikkei Asian Review: China is its own worst enemy — By Minxin Pei. High likelihood that hubris will push Beijing toward folly.
- Nikkei Asian Review: China reboots the internationalization of its currency — By William Bratton. Beijing’s motivations are more geopolitical than economic.
- Foreign Policy: Give the U.S. Navy the Army’s Money — By Blake Herzinger. To meet challenges from China, the rule of thirds must be broken.
- Defense News: Hawley bill would spotlight Chinese electronics in defense systems — Defense contractors would be required to tell the Pentagon if China, Russia, Iran and North Korea made any of the printed circuit boards in systems they were supplying, under legislation Sen. Josh Hawley, R-Mo., introduced on Wednesday.
- The Atlantic: What a Crackdown Looks Like From Jail — Prodemocracy activists held in Hong Kong still see hope.
- Aljazeera: Duterte ‘reluctant’ to confront China over South China Sea row — Philippine president says Manila owes Beijing a ‘debt of gratitude’ but insists he will not compromise country’s sovereignty.
