Beijing issues unprecedented guidelines calling for transparency, risk-management
China promotes high-profile law enforcer working with US in fentanyl fight to senior police job; US airlines ask Biden administration to block additional flights to China
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SCMP
China has released unprecedented guidelines aimed at promoting transparency, security, risk management, and vibrancy in its $9 trillion stock market. These guidelines, issued by the nation's cabinet, promise to foster high-quality development by enhancing supervision and mitigating risks. This initiative follows President Xi's emphasis on preventing systemic financial risk. The guidelines outline nine measures to develop the market, including protecting investors' interests and enhancing the quality of listed companies over the next five years.
Notably, China's state support for the stock market has entered a new stage, with supportive measures proposed by the China Securities Regulatory Commission being incorporated into State Council documents. President Xi stressed the importance of financial regulation having teeth and called for clarifying responsibilities and strengthening cooperation among financial regulators and industry authorities. The guidelines complement recent efforts to crack down on fraudulent listings and enhance investor returns through buy-backs and dividend payouts. Additionally, the document calls for stricter rules on information disclosure and corporate governance to boost investment value.
Regulators will also address abnormal trading and manipulation, strengthen supervision of high-frequency transactions, and impose severe penalties for malicious manipulation and short-selling. The document also advocates for fast-track approval of exchange-traded funds, expansion of index-based funds, and a higher proportion of stock-focused funds in the mutual fund industry.
China’s exports tumble 7.5% in March and imports also fall as demand slows
Associated Press
China's exports contracted by 7.5% in March compared to the previous year, while imports slipped 1.9%, according to customs data released on Friday. The decline in exports is attributed to a higher base of comparison with March 2020, when exports jumped 14.8% as the economy reopened after strict COVID-19 controls. The slowdown in exports is seen as a drag on China's economic growth, which has already been affected by a crisis in the property industry due to a crackdown on excessive borrowing. However, imports are expected to gain momentum as higher government spending boosts demand.
Scientists install encryption shield to protect advanced Chinese quantum computer from attack
South China Morning Post
China's Origin Wukong, the country's most advanced superconducting quantum computer, has developed new encryption technology to protect its operational data from potential attacks by other quantum computers. The technology, known as "post-quantum cryptography," aims to replace the conventional public-key cryptography system that could be vulnerable to quantum computer attacks. The "anti-quantum attack shield" was developed and used for the first time by Origin Quantum, the developer of the computer. The superconducting quantum computer, powered by a 72-qubit home-grown superconducting quantum chip, opened remote access to the world earlier this year.
South China Morning Post
China has pledged to strengthen its diplomatic ties with North Korea during a high-level meeting between officials from both countries. Zhao Leji, the chairman of China’s National People’s Congress, met with his North Korean counterpart to discuss increasing strategic coordination and deepening mutually beneficial cooperation. These discussions come as China sends a clear message of support to North Korea amid ongoing tensions with the US and its regional allies. The meeting also prompts speculation about a potential meeting between Chinese President Xi Jinping and North Korean leader Kim Jong-un later this year.
Japan to collaborate on Chinese payment services with joint QR code
Nikkei Asia
Japan is in talks with Southeast Asian countries and India to enable mutual access and use of QR code payment services by 2025. The Payments Japan Association, which operates Japan's standardized QR code payment system called JPQR, is also collaborating with individual Chinese digital payment services. The aim is to establish a unified standard for QR payments to streamline the process and make it more convenient for consumers. Currently, there are approximately 15,000 stores in Japan that have installed the JPQR system, but there is still room for growth. The association aims to introduce at least 100,000 stores by the end of the fiscal year.
Retired chair of Chinese state-owned Everbright Group indicted on bribery charges
Associated Press
Former chairman of China Everbright Group and ex-central bank executive Tang Shuangning has been indicted on charges of embezzlement and bribery. Tang was arrested in January on suspicion of embezzlement and bribery. He retired in 2017 and was expelled from the Communist Party in January. Tang is among many officials targeted in President Xi Jinping's anti-corruption campaign, which critics say is designed to remove his political rivals. Other senior bankers targeted include former Bank of China chairman Liu Liange, former Chinese central bank senior official Sun Guofeng, former China CITIC Bank president Sun Deshun and former Industrial and Commercial Bank of China executive Zhang Hongli.
China promotes high-profile law enforcer working with US in fentanyl fight to senior police job
South China Morning Post
China has promoted a senior police officer, Hu Binchen, who oversees cooperation with the US in the fight against fentanyl, to assistant public security minister. Hu, the director of the International Cooperation Bureau of the Ministry of Public Security, is widely regarded as the international face of China’s security forces. China and the US recently renewed bilateral law enforcement and security engagement following a summit between Chinese President Xi Jinping and US President Joe Biden. The promotion comes as a growing number of Chinese illegal immigrants are passing through the US-Mexico border, a development that Beijing has pledged to crack down on.
US airlines ask Biden administration to block additional flights to China
CNN
The US aviation industry has called on the Biden administration to pause the approval of additional flights to and from China, citing Beijing's "existing harmful anti-competitive policies" that hurt American airlines and workers. The request was made in a letter from industry lobby group Airlines for America, which represents major US carriers, and other unions representing aviation workers. The letter argues that the competitive disadvantage posed by China is harmful to US workers and businesses, and that if the growth of the Chinese aviation market is allowed to continue unchecked, flights will continue to be relinquished to Chinese carriers. In February, Washington allowed Chinese airlines to increase their direct passenger flights to the US in an effort to restore aviation services that had been affected by the pandemic. However, the letter claims that China imposed strict limits on market access during the pandemic and imposed rules that affected operations and the treatment of US airline crew. The letter also mentions that US carriers have been unable to use Russian airspace since Russia's invasion of Ukraine in February 2022, which has added time and costs to flights. China's Foreign Ministry responded to the request by saying that increasing direct flights was a consensus reached between Chinese leader Xi Jinping and US President Joe Biden.
The $2bn dirty-money case that rocked Singapore
BBC
A Singaporean court has begun handing out sentences in the case of 10 Chinese nationals charged with laundering $2.2bn, earned from criminal activities abroad. The case has raised questions about Singapore's struggle to welcome the super wealthy without also becoming a destination for ill-gotten gains. Singapore has become a haven for foreign businesses, with investor-friendly laws, tax exemptions and other incentives. The city-state's asset managers drew S$435bn ($311bn) from abroad in 2019, according to the country's market regulator. More than half of Asia's family offices, which manage private wealth, are now in Singapore. However, the case has spotlighted the country's struggle to strike a balance between welcoming wealthy individuals and preventing money laundering. While increased regulation will help, transparency poses a bigger challenge.
TikTok, under fire elsewhere, sees spike in Vietnam e-commerce
Nikkei Asia
The number of merchants on the TikTok app in Vietnam tripled last year, as did average sales, according to the company. E-commerce growth was driven by products such as motorbikes from VinFast and Samsung phones. TikTok now ranks as the country's No. 2 online marketplace behind Shopee, with vendors earning about $1.3bn in the past six months. TikTok is working with the Vietnamese government on a number of issues, including censorship, but has also been investigated for related matters.
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