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 Says ‘Please Stop Buying Our Bonds’ — Plunging bond yields are a symptom of economic weakness that are easier to fix than curing the country’s troubled economy.
- XPeng Loss Narrows on Higher Sales — XPeng’s second-quarter net loss narrowed on stronger sales, higher revenue from its collaboration with Volkswagen and improved margins.
- Tesla Gets Lower Tariff Rate as EU Eases Penalties on Chinese-Made EVs — Tesla is set to pay lower tariffs on electric vehicles exported from China to the European Union after the bloc revised penalties for carmakers amid an investigation into allegedly unfair subsidies from Beijing.
- Tariffs Are on the Table for U.S. Importers, Whatever the Election Outcome — U.S. companies are pulling away from China as Democrats and Republicans increasingly impose duties on Beijing.
- Chinese Developer Kaisa Makes Progress on Offshore Debt Restructuring — Chinese property developer Kaisa Group Holdings said it has made significant progress in restructuring its offshore liabilities, enabling the beleaguered company to offer billions of dollars in new debt and convertible bonds.
The Financial Times
- EU to hit Teslas imported from China with 19% tariffs — Brussels plans additional levy for electric vehicles made at the US carmaker’s Chinese factories.
- Chinese developer Kaisa reaches restructuring agreement — Company to issue $5bn of bonds and $4.8bn of convertible bonds.
- China gets creative to boost lending to tech start-ups — Beijing increases use of intellectual property as collateral to try to revive credit growth.
The New York Times
- Hit Chinese Video Game, ‘Wukong’ Seeks to Curb ‘Negative Discourse’ — Black Myth: Wukong tried to forbid influential overseas streamers from discussing “feminist propaganda,” Covid-19 and China’s video game industry policies.
- Global Trade Needs a China Alternative. India Needs Better Ports. — Efforts to build new ports and expand existing docks could determine whether India emerges as a legitimate option for global factory production.
Caixin
- Visa Waivers See Foreign Tourists Flocking Back to China — Big leap in visitor numbers to China but still not back to pre-Covid levels.
- In Depth: Domestic Carriers Add Global Routes as Foreign Rivals Quit China Amid Sluggish Demand, Russia Ban — Chinese carriers are focusing on adding flights to the Middle East, to bolster trade links and connect to major hubs.
- Shanghai Volant Secures Fresh Funding as eVTOL Sector Prepares for Take-Off — Startup rides investment wave as low-altitude economy race hots up.
South China Morning Post
- China targets cryptocurrencies, online game coins in intensified money-laundering crackdown — China’s highest judicial bodies on Monday made 13 revisions to its money-laundering law.
- China’s courier industry warned over spy threat amid national security drive — Ministry of State Security urges vigilance when sending and receiving goods, giving examples of document leak and biohazard threats.
- China AI: game company launches tool for creating 3-minute dramas with music and plot — Skyreels is able to generate characters, dialogues and storyline to create a short video, according to a demo by Kunlun Tech.
- China seeks to heat up economy with US$28 billion nuclear power investment in 11 reactors — China approved five new nuclear power projects in Shandong, Zhejiang, Jiangsu, Guangdong and the Guangxi Zhuang autonomous region on Monday.
- Chip war: China is 5 years behind global leading-edge production, report says — Leading global players remain years ahead of top Chinese companies in advanced chip manufacturing, according to US think tank ITIF.
Nikkei Asia
- India economic report card triggers debate over China investment — Influential annual review encourages Delhi to loosen FDI rules to boost growth.
- Black Myth: Wukong hits PS5s and PCs in Chinese industry ‘milestone’ — One of this year’s hottest console games raises hopes for sector’s development.
- Opinion: China’s EV makers can’t follow Japan’s ‘flying geese’ offshoring strategy — As domestic demand cools, automakers turn to exports but face protectionist headwinds. By Alicia Garcia-Herrero.
Bloomberg
- China May Let Local Governments Sell Bonds to Buy Homes — China is considering a new funding option for local governments to buy unsold homes after a series of rescue packages failed to prop up the market, according to people familiar with the matter.
- Huawei’s Smart Car Unit Valued at $16 Billion After Investment — Chinese tech firm Huawei Technologies Co.’s push into the electric vehicle market has received another boost, after an investment valued its auto solutions company at 115 billion yuan ($16 billion).
- US Firms Warn Against ‘Unprecedented’ Hong Kong Cyber Rules — US firms have warned that proposed cyber regulations could grant the Hong Kong government unusual access to their computer systems, highlighting the latest challenge to Western tech giants in the city.
Reuters
- Citic, CICC among 10 brokerages included in China’s Greater Bay Area wealth scheme, sources say — China and Hong Kong are set to expand a pilot wealth scheme that allows residents to invest cross-border by adding the first batch of 10 securities firms.
- China plans ‘bigger, stronger’ social security fund to aid ageing society — The fund, which was established in 2000, is a “strategic reserve fund for social security needs during the peak period of population aging and the ballast of my country’s social security system,” Ding said.
- PwC loses major client Bank of China amid regulatory probe — At least 50 Chinese firms, many of which are state-owned enterprises or financial institutions, have either dropped PwC as their auditor or cancelled plans to hire the firm in recent months.
Other Publications
- Foreign Policy: AI Enters the Critical Mineral Race — Can the technology give Washington the edge in a vital—and deeply competitive—industry?
- Foreign Policy: China’s Fragile Social Compact — On a return to Shanghai, our columnist takes note of how rising inequality is leading many Chinese to vote with their feet, and leave.
- Foreign Affairs: Stopping the Next China Shock — A Collective Strategy for Countering Beijing’s Mercantilism.
- The Washington Post: How Chinese investors tried to take over an Australian mining company — A struggle between an Australian mining company and Chinese investors has pulled back a curtain on the intensifying global conflict for rare-earth minerals.
