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.
Paid subscribers automatically have this list emailed directly to their inboxes every day by 10 a.m. EST. Subscribe here.
The Wall Street Journal
- China Declares Cryptocurrency Transactions Illegal; Bitcoin Price Falls — The move reinforces China’s tough stance, the strongest to date from a major economy against the use of digital currencies.
- HNA Group Chairman Chen Feng, CEO Adam Tan Detained by Police — Chinese conglomerate says its operations aren’t affected, restructuring work continues.
- Biden to Host World Leaders at White House to Share China Concerns — Display of unity of U.S., Australia, India and Japan—known as the Quad—irks Beijing.
- Alibaba, Under Beijing Pressure, Moves to Sell Stake in State-Owned Broadcaster — Earlier this year, government officials told the company to come up with a plan to substantially cut back on its media holdings.
- Commerce Secretary Gina Raimondo Aims to Strengthen Business Ties With China — In interview, Raimondo says U.S. commercial engagement with China could ease political tensions; some China watchers are skeptical.
- China Needs to Kick its Coal Habit at Home, Too — Xi Jinping’s pledge to cease financing coal plants abroad is good for the environment and makes business sense, too. But progress at home is the real key.
The Financial Times
- China expands crackdown by declaring all crypto activities ‘illegal’ — Country’s central bank seeks to stop residents trading on overseas exchanges.
- IMF chief feels heat from staff and lawmakers over alleged pro-China bias — Allegations Kristalina Georgieva manipulated World Bank data have also fed a cultural divide about fund’s role.
- Quad group’s role under scrutiny after Aukus submarine deal — Alliance of US, Australia, Japan and India expected to turn to non-military initiatives, analysts say.
- Chinese booze baron jailed for life in latest warning to tycoons — The maker of Mao’s beloved ‘baijiu’ became enmeshed with Xi Jinping’s anti-graft crusade.
- Evergrande bondholders left in the dark as crucial deadline passes — Indebted Chinese property developer faces imminent default on $84m offshore coupon payment.
- Is it time to avoid investing in China? — While economic growth remains strong, Beijing’s crackdown on private business bodes ill for portfolio investors.
- Evergrande: overseas investors should beware payee of last resort status — Default is one thing, the bigger issue is whether a two-tier China bond market is emerging.
The New York Times
- Hong Kong Pushes Opposition to Run in Preordained Elections — China has already determined the outcome, but the government is pressuring opposition parties to participate to lend the vote legitimacy.
- Memoir Details How China Keeps Business in Line — A memoir by a well-connected businessman offers insights into the Communist Party’s thinking as it tightens its grip on the private sector.
- In Biden’s Foreign Policy, Friends and Foes Claim Echoes of Trump — President Biden’s speech at the U.N. was a stark contrast to President Donald J. Trump’s. But it came amid complaints that some of Mr. Biden’s policy moves echoed his predecessor’s approach.
- Afghan Uyghurs Fear Taliban Will Deport Them to China — Members of the ethnic group, seen by China as potential extremists, are afraid they will be sent there as part of a deal for economic aid.
Caixin
- HNA Chairman and CEO Taken In by Police — Company says Hainan cops have placed its executives under ‘coercive measures,’ which can include residential surveillance or detention.
- Former Chief of Chinese Liquor Giant Gets Life in Prison for Taking Bribes — Kweichow Moutai Group’s Yuan Renguo accepted $17.5 million for handing out lucrative distribution rights to China’s ‘national liquor,’ court finds.
- Zhejiang Orders Production Suspensions to Meet Energy Targets — Textile, dyeing and chemical fiber companies affected by China’s campaign to cut climate-changing greenhouse gas emissions.
South China Morning Post
- Huawei says US sanctions cause US$30 billion loss in its handset revenue a year — Huawei’s revenue in the first half of this year fell 29.4 per cent from a year ago to 320 billion yuan (US$49.5 billion).
- China’s video game companies vow to boycott overseas platforms and close loopholes for young gamers amid tighter limits — China’s state-backed gaming industry association and 213 video gaming companies pledged to follow Beijing’s mandate to fight video game addiction by filtering unhealthy content and boycotting overseas platforms.
- China to ‘deepen’ antitrust probe into mobile payment sector despite ‘interim progress’ — China’s central bank will “deepen” its antitrust investigations into the mobile payment sector, which has been dominated by a few private financial technology firms, despite “interim progress” made in the last year, its deputy governor said on Friday.
- Alibaba to sell stake in Chinese TV network at an estimated US$350 million loss — Alibaba Group Holding will divest its entire equity stake in a Chinese shopping and entertainment television network at an estimated loss of 2.3 billion yuan (US$356 million).
- HSBC, UBS among big banks to have cut exposure to China Evergrande as outlook worsens for debt-stricken developer — Big banks and fund managers have been heading for the exit and reducing their exposure to China Evergrande Group in recent weeks as the outlook has soured for the world’s most indebted property developer.
- Inquiry launched into role of British banks in Hong Kong in ‘suppression’ of rights — Britain’s All-Party Parliamentary Group (APPG) on Hong Kong will consider whether banks including HSBC helped China punish pro-democracy activists.
Bloomberg
- China Oversees Evergrande Accounts to Ensure Housing Gets Built — China’s housing regulator has stepped up oversight of China Evergrande Group’s bank accounts to ensure funds are used to complete housing projects and not diverted to pay creditors.
- China Lists 102 Examples of U.S. ‘Interference’ in Hong Kong — China has listed 102 ways the U.S. has interfered in Hong Kong since mass anti-government protests gripped the city in 2019, as the world’s largest economies continue to clash on everything from trade, to human rights and the coronavirus’ origins.
- China to Form Two Rare Earth Giants to Strengthen Pricing Power — China is planning to create two rare earth mining giants in an effort to gain better pricing power in global markets, according to people familiar with the matter.
- Wind Turbine Maker Plans First Big Chinese-Built Plant in Europe — Chinese wind turbine manufacturer Ming Yang Smart Energy Group Ltd. is planning to set up a major manufacturing facility in Germany in a bid to capture a chunk of Europe’s fast-growing renewable power market.
Other Publications
- The Economist: Why the head of the IMF should resign — A scandal over data and China has undermined her credibility.
- The Economist: In the West, China holds growing sway over Chinese-language media — WeChat is helping to amplify the Communist Party’s voice.
- The Economist: America is at last getting serious about countering China in Asia — But strengthening military alliances is not enough.
- The Washington Post: China’s Evergrande, facing collapse under debt mountain, decides silence is golden — By Friday afternoon in Asia, the group had not released any statements about a $83.5 million interest payment on an offshore bond that was due on Thursday.
- Quartz: Evergrande has missed some of its key bond payments. Now what? — The terms of the bonds—with a face value of nearly $2.03 billion—allow Evergrande a grace period of 30 days to make its payment.
