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
- Tennis Star Peng Shuai Denies Making Sexual-Assault Accusations — Chinese tennis star Peng Shuai denied accusing anyone of sexual assault, suggesting a global wave of concern for her safety and wellbeing was the result of misunderstandings.
- Hong Kong Voters Widely Shun Election for Beijing-Approved Candidates — Turnout at Sunday’s poll was a record low for legislative elections since the city returned to Chinese rule in 1997.
- China Job Cuts Mount in Sectors Hit by Tighter Rules — Technology, education and property companies are shedding employees, dimming the job prospects for college graduates.
- China’s Growing Access to Global Shipping Data Worries U.S. — Beijing can track cargo with little-known Logink system, potentially gaining intelligence and commercial advantage.
- Biden’s China and Climate Goals Clash Over Solar Panels — Expiring tariffs on Chinese imports have the administration facing a trade-off between cheap renewables and solar made in the U.S.
- Chinese EVs Want to Shock Global Markets Next — Despite being the world’s largest auto market, China has never been a big car exporter globally. It seeks to change that in a more-electrified future.
- Chinese Developer Kaisa Follows Evergrande Into Restructuring Talks — Kaisa says it didn’t pay sums due on dollar bonds, and has hired a restructuring adviser
- Rio Tinto Names Dominic Barton, Canada’s Ambassador to China, as Chairman — The miner is seeking to restore its reputation after blowing up ancient rock shelters in Australia
The Financial Times
- SenseTime: state support for AI listing sends mixed message — Investors are right to be wary of a company facing headwinds at home and in the US.
- China cuts lending rate as economic momentum falters — One-year loan prime rate cut for first time since April 2020 as property challenges intensify.
- SenseTime’s IPO rescued by Chinese state-backed funds — Beijing helps to relaunch listing of controversial artificial intelligence company after US blacklisting.
- Global investors pump money into Chinese equity ETFs — Strong growth and attractive valuations put 3 ETFs in top 20 worldwide for net inflows.
- How China’s global ambitions almost unseated an IMF chief — Beijing has unusual dual-track strategy to influence the multilateral bodies that underpin western capitalism.
The New York Times
- How China Uses Contractors to Spread Propaganda on Facebook and Twitter — New documents detail how Chinese officials tap private businesses for online information campaigns, offering a rare glimpse into how China’s vast bureaucracy works to spread propaganda online.
- Peng Shuai, Chinese Tennis Player, Denies Sexual Assault Claim — Peng Shuai said in an interview with a Singaporean newspaper that she had been misunderstood. She also said, “I’ve been very free all along.”
- Hong Kong Elections: How ‘Patriots Only’ Bolsters Beijing’s Grip — China’s crackdown has driven most of the city’s popular pro-democracy candidates either into police custody or exile. Officials have urged the public to vote, but turnout Sunday hit a record low.
- Can a ‘Very Confident’ Carrie Lam Salvage Her Legacy in Hong Kong? — Mrs. Lam is Hong Kong’s most unpopular leader ever, blamed for mass protests and a political crackdown. Yet she now appears reinvigorated, perhaps even ready for a second term.
Caixin
- China to Broaden Stock Connect Program to Incorporate Swiss, German Exchanges — Planned expansion of Shanghai-London Stock Connect program is part of continuing efforts to open China’s capital markets, securities regulator says.
- Offcn Education Plunges on Disclosure Probe — Offcn is being investigated by China’s securities watchdog on suspicion it didn’t properly disclose deals it did with related parties.
- Real Estate Services Provider KE Hits Back at Revenue Fraud Allegation — Short seller Muddy Waters said its calculations showed the company inflated revenue from commissions on home sales by over three-quarters.
- Cover Story: How China’s EV Battery King Is Defending Its Throne — CATL keeps the pressure on upstart rivals with billions of dollars of investments while dramatically expanding its business footprint.
South China Morning Post
- China tech crackdown: Hangzhou fines top influencer Viya a record US$210 million for tax evasion — The tax bureau of China’s e-commerce hub Hangzhou has fined leading e-commerce influencer Viya a record 1.34 billion yuan (US$210 million) for tax evasion, in a move bound to send shock waves across the country’s live-streaming industry.
- China’s capital concerns prompt calls to prevent ‘disorderly expansion and barbaric growth’ — China has doubled down on its de-risking campaign as the country’s economy faces strong headwinds, with “stability” being repeatedly stressed as the top priority in the nation’s economic policies.
- China’s Twitter-like Weibo kicks out ‘idiots’, ‘sissies’ and ‘tramps’ in username clean-up campaign — Chinese microblogging platform Weibo has announced that it will no longer tolerate usernames containing “vulgar” language such as “idiot” or “sissy”, telling users to either change their handles or risk having their accounts suspended, a move that comes in response to Beijing’s push to clean up internet content.
- Chinese firms scramble to register metaverse trademarks despite Beijing’s warnings of risks — Chinese businesses are rushing to register trademarks related to the metaverse, translated as Yuanyuzhou in Chinese, despite Beijing’s warnings over risks associated with the new concept, according to the latest trade registration data.
- Chinese rags-to-riches tycoon Xie Zhikun dies, aged 61 — The founder of the Zhongzhi Enterprise Group died of a heart attack in Beijing on Saturday.
Bloomberg
- Hong Kong Eyes New Security Law After Electing Loyalists — Hong Kong’s leader Carrie Lam touted plans to revive a controversial security law that ignited a political firestorm two decades ago, after completing an election to install a new legislature filled with Beijing loyalists.
- Foreign Diplomats Helped Lithuania Evacuate Staff From China — Diplomats from European Union member states and other countries helped their Lithuanian colleagues evacuate their embassy and leave China last week in an unexpected departure after Beijing demanded the return of their passes.
- China’s RiseSun Said to Weigh $1.6 Billion Battery Unit Sale — Chinese real estate developer RiseSun Holdings Co. is considering a potential sale of a unit that makes electric-vehicle batteries, according to people familiar with the situation.
- China Shares Fall for Second Day, Tracking Regional Selloff — Chinese shares broadly tumbled as investors were spooked by a setback for a U.S. bill that had been expected to boost climate spending, and Beijing’s plan to bar mainland traders from a stock link with Hong Kong.
- Biotech Firm Sirnaomics Targets up to $70.3m in Hong Kong IPO — Sirnaomics Ltd., an RNA therapeutics biopharmaceutical company, is offering 7.54 million shares at HK$65.9-HK$72.7 apiece in its Hong Kong initial public offering, the company said in a statement Sunday.
Reuters
- Alibaba climate tide can lift valuation boat — Alibaba’s big climate splash could have ripple effects on its valuation. The Chinese e-commerce titan at its annual investor day on Friday unveiled https://www.alibabagroup.com/en/news/article?news=p211217 bold carbon-neutrality goals for 2030 and beyond. Longer term, the efforts could bolster shareholder returns.
- Xi’s 2022 GDP target will be moment of truth — China is preparing to set its most important GDP target since the global financial crisis. The country faces an unprecedented swathe of economic challenges, implying a significant downward revision to growth goals from the “above 6%” for 2021 to something that signals sustained pressure on bad debt. What President Xi Jinping chooses will measure his power to drag China onto a less wasteful development path.
- Special Report: Amazon partnered with China propaganda arm — Amazon.com Inc was marketing a collection of President Xi Jinping’s speeches and writings on its Chinese website about two years ago, when Beijing delivered an edict, according to two people familiar with the incident.
Other Publications
- Economist: I live in China’s zero-covid world. It’s a nightmare — Draconian restrictions make for another sort of pandemic dystopia.
- The Washington Post: Asian stocks fall on concern about virus, tighter Fed policy — Asian stock markets followed Wall Street lower on Monday amid concern about the coronavirus’s latest variant and tighter Federal Reserve policy.
- The Diplomat: A Strategic Response to China’s Economic Coercion — China is the most willing to deploy the widest range of economic tools in response to a geopolitical conflict. What can the U.S. do?
- Nikkei Asia: China trails U.S. in creating unicorns, Hurun ranking shows — Two countries dominate, with nearly 75% of total; India in third place.
- The Hollywood Reporter: This Year, Hollywood’s China Relationship Finally Unraveled — It doesn’t matter how accommodating the industry may be — the next phase of the Xi Jinping era may be defined by less space for Western content.
