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
- Didi’s Revenue Falls After Beijing’s Crackdown Hurts Its China Business — The ride-hailing company’s China mobility business—which includes its core ride-hailing operations—was the main cause for the drop.
- As Chinese IPOs Stumble, Investors Look Elsewhere in Asia — India, South Korea and Southeast Asia have become sources of alluring, big-ticket initial public offerings.
- Top Chinese Quant Fund Apologizes to Investors After Recent Struggles — High-Flyer Quant uses artificial-intelligence technology to pick domestic yuan-denominated stocks.
- SenseTime Shares Jump in Hong Kong Market Debut — U.S. government had added SenseTime to an investment blacklist that barred Americans from buying shares in the firm.
The Financial Times
- Hong Kong and China defend police raid on Stand News after US condemnation — Washington calls for release those arrested following raid at pro-democracy media outlet.
- SenseTime shares jump more than 20% on delayed Hong Kong IPO — China’s biggest AI company had been forced to postpone listing after US put it on investment blacklist.
- Chinese loans deter poor nations from seeking debt relief, says Paris Club chair — Creditor body’s Emmanuel Moulin says bilateral borrowing risks disrupting efforts to ease pandemic-hit finances.
- Didi’s business deteriorates sharply following China probe — Chinese ride-hailing group suffers $6.3bn loss following regulatory scrutiny.
The New York Times
- China Keeps 13 Million in Xi’an Under Strict Lockdown — The severe measures in Xi’an have prompted concern, as residents complain on social media of having trouble ordering food online.
Caixin
- Regulator Summons CICC Staff Over Lenovo’s Scrapped Listing Plan — Investment banking chief and four others criticized for inadequate due diligence in assessing Lenovo’s eligibility for STAR Market.
- Stock Investors Take Shine to JinkoSolar After Shanghai IPO Approved — The New York-listed panel-maker’s shares are up since China’s securities regulator greenlighted its major unit’s Shanghai listing.
- Unigroup Clears Major Hurdle in Massive Revamp — Creditors and shareholders endorse $9.42 billion bailout led by JAC Capital and Wise Road Capital, overcoming resistance from 49% owner Zhao Weiguo.
South China Morning Post
- Elon Musk denies SpaceX satellites are blocking space in wake of Chinese complaints about Tiangong’s near miss — Elon Musk has rejected claims that SpaceX’s satellites are taking up too much room after China complained its Tiangong space station had suffered two near-misses.
- China’s regulator cites investment bank CICC for negligence in arranging Lenovo’s US$1.8 billion IPO on Star Market — China’s securities regulator has taken the nation’s largest investment bank to task for underwriting the US$1.8 billion initial public offering (IPO) by Lenovo in Shanghai, in a move that sends another chilly gust through the capital markets.
- China’s smallest firms failing at historic pace as 4.37 million close up shop and registrations plummet — About 4.37 million of China’s smallest businesses permanently shut their doors in the first 11 months of the year – more than three times the number of new ones that opened during the same time, according to data obtained by the Post.
Bloomberg
- Didi Reveals $4.7 Billion Loss Ahead of 2022 Hong Kong Debut — Didi Global Inc. disclosed a $4.7 billion loss after revenues shrank in the September quarter, revealing the rising cost of a series of regulatory actions that will force China’s ride-sharing leader to shift its listing to Hong Kong next year.
- Hong Kong Editors Charged With Sedition, US Criticizes Raid — Just yesterday the outlet said it would cease operations following a police raid on its office and seven arrests.
- Chinese AI Maven Worth $4 Billion After SenseTime Debut Sizzles — SenseTime Group Inc. co-founder Tang Xiao’ou has become one of the world’s richest people, after the Chinese AI champion blew past concerns about American sanctions to surge as much as 23% on its Hong Kong debut.
Reuters
- Exclusive: Chinese bishops, priests brief Hong Kong clerics on Xi’s view of religion — Chinese bishops and religious leaders briefed senior Hong Kong Catholic clergymen on President Xi Jinping’s vision of religion with “Chinese characteristics” in an unprecedented meeting organised by the mainland’s representative office in the city, according to four clerics.
- HSBC gets approval to buy out China life insurance joint venture — HSBC said on Thursday it had received regulatory approval in China to take full ownership of its life insurance joint venture in the country, as it continues to expand its non-core banking services.
Other Publications
- The Economist: How Japan sees China — Mighty, but also dangerously overconfident.
- The Economist: Even in secret, China’s leaders speak in code — Chinese bureaucrats have to learn to read between the lines.
- The Economist: New research counts the costs of the Sino-American trade war — It has been a lose-lose ordeal.
- The Economist: Can American firms rid their supply chains of Xinjiang goods? — Possibly. Just don’t tell China.
- Nikkei Asia: Analysis: China’s mandarins face 25% pay cut as ‘alchemy’ fades — Local governments can no longer sell land rights for easy cash.
- Protocol: China’s nationalistic cancel culture is out of control — Chinese social media became a lot more nationalist and uglier this year. And it could be even uglier in the future.
- The Information: Why Sequoia Capital Will Split From Star Chinese Partner — We predict the U.S. venture powerhouse and its Chinese affiliate, led by star deal maker Neil Shen, will move to part ways next year as the Chinese government extends a regulatory crackdown on tech companies and U.S. investment firms grow more reluctant to pour money into China. By Kate Clark and Shai Oster
