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
- Chinese Banks’ Loan Issuance Slid in July — New loans stood at 260 billion yuan, below the 400 billion yuan expected by economists.
- Foxconn Posts Higher Profit, Record Revenue on AI Server Demand — AI server sales surged 60% sequentially in the second quarter.
- Tencent Profit Surges as Domestic Games Revenue Resumes Growth — The videogame and social-media company said net profit jumped 82% from a year earlier.
The Financial Times
- China’s bond market is sending a signal policymakers can’t ignore — The country’s central bank is concerned about anaemic domestic demand.
- Steelmaker Baowu warns Chinese producers in fight to survive severe downturn — Sector ravaged by weak demand and industrial production as crippling property market slump hits Asia’s biggest economy.
The New York Times
- China’s Extreme Fan Culture Makes Olympic Gold a Mixed Blessing — Fans have mobbed athletes in public and staked out their homes. State media outlets denounced their “visibly aggressive” behavior.
Caixin
- In Depth: Chinese Shippers’ Diverging Fortunes — China’s shipping industry is navigating starkly different waters.
- Extra Jobs and Higher Wages at Foxconn’s iPhone City For Latest Model — Foxconn is recruiting extra workers and offering higher wages at its Zhengzhou facility, the world’s largest iPhone factory in central China’s Henan province, in preparation for the September launch of Apple’s latest devices.
- Baowu, Rio Tinto’s Australian Iron Ore Project On Track to Begin Production Next Year — A $2 billion iron ore project in Australia jointly owned by Rio Tinto PLC and China Baowu Steel Group Corp. Ltd. is on track to begin production next year, according to an executive at the Anglo-Australian miner.
South China Morning Post
- Tencent profit jumps 82%, beating estimates after strong video gaming, ad growth — Tencent’s profit grew to US$6.6 billion in the second quarter while revenue rose 8 per cent to US$22.5 billion.
- EU subsidy raids on Chinese company Nuctech were legal, court rules — Landmark decision rejects firm’s assertion that complying with bloc’s regulation put it on collision course with mainland criminal laws.
- Why China’s risky bond rally has put PBOC on the offensive to optimise yields — The 10-year government bond yield tanked to a record low as wary investors and financial institutions snatched them up at an unprecedented rate, desperate for safe-haven investments.
Nikkei Asia
- Starbucks’ new CEO Brian Niccol inherits a China headache — Cafe chain faces sliding sales in No. 2 market as consumers turn thriftier.
- CATL markets itself directly to consumers in rivalry with BYD — Company showroom sports 50 EV brands from Tesla to Xiaomi, all with its batteries.
- Chinese central bank crackdown shakes bond market — Yields fluctuate after PBOC says measures have restored ‘reasonable levels’.
Bloomberg
- China’s Loan Drop Stokes Fears of ‘Balance Sheet’ Recession — China’s first bank loan contraction in nearly two decades has fanned fears the world’s No. 2 economy is careening toward a “balance sheet recession” as Japan did decades ago.
- China’s 48 Million Unbuilt Homes Threaten to Prolong Crisis — At least 48 million homes in China have been sold before construction has been completed, suggesting the country’s property crisis won’t be resolved anytime soon, according to a report from Bloomberg Intelligence.
- Chinese School Where Walz Once Taught Is Symbol of Xi’s Tighter Grip on Nation — A security guard outside Foshan No. 1 High School turned away Bloomberg News reporters who sought to inquire about Kamala Harris’s presidential running mate.
Reuters
- US Army intelligence analyst pleads guilty to selling military secrets to China — A U.S. Army intelligence analyst on Tuesday pleaded guilty to charges of conspiring to sell military secrets to China, the Department of Justice said.
- China probes rampant graft in funeral homes and services — China has uncovered widespread corruption in its funeral services industry, state media said on Wednesday, with offences such as illegal fees and cemeteries committed by long-time managers and officials of funeral homes.
- No respite for Chinese officials as economy shows new signs of weakness — A recent string of dismal indicators have dulled expectations for China’s economic performance in July, in an ominous sign for the rest of 2024 and pointing to the need for more stimulus measures beyond plastering over pain points in the world’s second-largest economy.
Other Publications
- Associated Press: An election in Kiribati provokes Western alarm about Beijing’s sway in Pacific atoll nation — People in Kiribati went to the polls on Wednesday for the first round of voting in a national election expected to serve as a referendum on rising living costs and the government’s stronger ties with China.
- The Guardian: Custody ruling in same-sex case hailed as LGBTQ+ milestone in China — Woman wins visiting rights to see daughter, but not son, in first recognition that child can have two legal mothers.
- CNBC: China expects air travel to hit a record in 2024 — Beijing’s projection comes in higher than the 619.6 million air passenger trips reported in 2023.
- BBC News: China firm claims world’s fastest-charging EV battery — Chinese car maker Zeekr says its new electric vehicle (EV) batteries charge faster than any of its rivals, including industry leaders Tesla and BYD.
- CNN: The West needs China for clean energy. It will pay a price to break free — The United States and Europe are racing to narrow China’s commanding lead in clean energy technologies, throwing subsidies at local manufacturers and hiking tariffs on Chinese imports in a strikingly protectionist turn.
