Beijing trains sights on China’s vast finance sector with new anti-corruption body;China hopes US firms can ‘play a strong role’ after top executives visit Beijing
China firms issue record US$14 billion convertible bonds as market revives
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Beijing trains sights on China’s vast finance sector with new anti-corruption body
South China Morning Post
Beijing has established a new anti-graft entity that will exclusively target the finance sector. The new body, named the Central Financial Discipline Inspection and Supervision Working Commission, was announced by China’s top anti-corruption body, the Central Commission for Discipline Inspection (CCDI). The creation of the watchdog follows the conclusion of a recent party conclave attended by the ruling Communist Party’s political elite, who outlined hundreds of policy goals for the next five years, including a pledge to “bring all financial activities under supervision”. The CCDI has also continued its crackdown on corruption in the financial sector, detaining 32 senior financial regulators, bankers and executives in the first six months of this year.
https://www.scmp.com/news/china/politics/article/3271494/beijing-trains-sights-chinas-vast-finance-sector-new-anti-corruption-body?utm_source=rss_feed
China hopes US firms can ‘play a strong role’ after top executives visit Beijing
South China Morning Post
A group of US executives, led by FedEx CEO Raj Subramaniam, met with Chinese Vice-Premier He Lifeng and Foreign Minister Wang Yi in China on Monday. The executives, who are part of the US-China Business Council, were in Beijing to gain insight into China's economic reforms following the conclusion of the third plenum. The Chinese officials expressed hope that the influential lobby group could help US firms "play a strong role" in China's economy. The visit comes as US-China relations are in the spotlight ahead of the US presidential election, with Donald Trump already proposing high tariffs on Chinese products.
https://www.scmp.com/economy/global-economy/article/3271511/china-hopes-us-firms-can-play-strong-role-after-top-executives-visit-beijing?utm_source=rss_feed
China firms issue record US$14 billion convertible bonds as market revives
South China Morning Post
Chinese companies have raised a record $14bn in offshore convertible bonds this year as they seek alternative funding options while interest rates remain high. Offshore convertible bonds from mainland China accounted for 22% of global deals, with Alibaba Group raising $5bn in May and Ping An Insurance finalising a $3.5bn transaction last week. The amount raised this year is up 1,588% from the same period in 2023, when just $829.3m was raised in convertible bonds. The increase in Chinese convertible bond issuance is giving hope to deal makers that capital market activity will start to pick up, particularly in Hong Kong where IPOs are at a 15-year low.
https://www.scmp.com/business/banking-finance/article/3271510/china-firms-issue-record-us14-billion-convertible-bonds-market-revives?utm_source=rss_feed
US-China battle for Olympic gold medal dominance: pools are key battlegrounds in Paris
South China Morning Post
The United States and China are expected to battle for dominance in the pool and gymnastics arena at the 2024 Paris Olympics. According to Nielsen's Gracenote forecast, the US is projected to win 37 gold medals, while China is predicted to win 36 golds. The US has traditionally excelled in athletics and swimming, while China is strong in diving, table tennis, weightlifting, and badminton. The two countries are also likely to compete in the women's 3x3 basketball event. China is the world's top-ranked team, but the US won the gold medal in Tokyo in 2021.
https://www.scmp.com/sport/china/article/3271488/us-china-battle-olympic-gold-medal-dominance-pools-are-key-battlegrounds-paris?utm_source=rss_feed
China’s leaders have floated the idea of raising the retirement age. It hasn’t gone down well
CNN
China has announced plans to gradually increase its statutory retirement ages, which are currently among the lowest in the world. The move is an attempt to address the challenges posed by an ageing population and a pensions funding crisis. The retirement age for men in urban areas is 60, while for women it is 50 or 55 depending on their occupation. The government did not provide specific details of the changes, but a government think tank has estimated that the retirement age will eventually be 65. The plans have generated backlash on social media, with concerns about delayed access to pensions and fewer job opportunities for younger workers.
https://edition.cnn.com/2024/07/23/business/china-retirement-age-backlash-intl-hnk/index.html
Palestinian factions sign reconciliation deal in China-brokered talks
Nikkei Asia
Fourteen Palestinian factions have signed a reconciliation deal in Beijing, raising hopes that they will put aside their political rivalry which has lasted for 17 years. The factions, including Hamas and Fatah, have agreed to form an interim national reconciliation government to rule postwar Gaza. This is the latest initiative mediated by China, following the country’s restoration of diplomatic relations between Saudi Arabia and Iran last year. However, analysts are sceptical about how much this will change the situation on the ground, suggesting that the signing reflects China’s diplomatic ambitions more than the reality in the Middle East.
https://asia.nikkei.com/Politics/International-relations/Palestinian-factions-sign-reconciliation-deal-in-China-brokered-talks
China moves closer to launching flying taxi services as EHang seeks Beijing’s go-ahead
South China Morning Post
Chinese flying taxi manufacturer EHang has moved closer to launching commercial services in mainland China after the Civil Aviation Administration of China (CAAC) accepted its application for an air operator certificate. EHang said the CAAC is reviewing its application for a license to provide domestic air transport services. EHang is working with the CAAC to establish a new operating system for pilotless aerial vehicles. The CAAC granted EHang’s EH216-S the country’s first production certificate for a passenger-transport electric vertical take-off and landing aircraft earlier this year.
https://www.scmp.com/tech/tech-trends/article/3271569/china-moves-closer-launching-flying-taxi-services-ehang-seeks-beijings-go-ahead?utm_source=rss_feed
China’s Baosteel to buy out Nippon Steel’s 50% stake in auto steel venture
Associated Press
Chinese steelmaker Baosteel will acquire Nippon Steel's 50% stake in their joint venture for $242m. The venture, Baosteel Nippon Steel Automotive Steel Sheets, focused on producing steel for the auto industry. Demand for steel in China has weakened as the country's auto industry moves towards electric vehicles, and property construction has slowed during an industry downturn. Japanese automakers are the venture's main customers, but they are facing fierce competition in the Chinese market. Nippon Steel is currently being sued by Baosteel for an alleged patent violation.
https://apnews.com/article/china-nippon-steel-baosteel-ussteel-9b91969921132b934a40f63a70327629
How foreign firms can stay on their feet in China’s dynamic market
South China Morning Post
Foreign companies operating in China must exercise vigilance regarding data security and the protection of trade secrets, as political control and regulatory scrutiny have increased, and rising labour costs complicate business, according to economist Yuhan Zhang. Writing in the South China Morning Post, Zhang said that foreign companies must remain innovative and differentiate their products to avoid price wars, while engaging effectively with central and local governments and collaborating with local companies. Foreign chambers of commerce should also be used to maintain communication with Chinese policymakers, Zhang added.
https://www.scmp.com/opinion/china-opinion/article/3271266/how-foreign-firms-can-stay-their-feet-chinas-dynamic-market?utm_source=rss_feed
China seeking hi-tech solutions to disaster relief challenges
South China Morning Post
China is increasing the use of technology, such as satellites and radar, for disaster relief work as extreme weather events become more frequent. The country now has more than 900 satellites in orbit, which are widely used to monitor natural disasters and help with relief and reconstruction efforts. China has established a complete system of operational satellites for disaster relief and prevention, but improvements are still needed. The country also needs more satellites capable of obtaining clear images, as well as further synergies with data from multi-source satellites, in order to improve the monitoring of natural disasters.
https://www.scmp.com/news/china/science/article/3271523/china-seeking-hi-tech-solutions-disaster-relief-challenges?utm_source=rss_feed
Alibaba's Taobao takes on Temu, Shein with free overseas shipping
Nikkei Asia
Alibaba's flagship retail platform, Taobao, aims to challenge cross-border e-commerce rivals Temu and Shein by introducing free overseas shipping for apparel orders. The initiative will begin from 3 August and initially be offered to shoppers in Singapore, Malaysia, South Korea, Taiwan, Hong Kong and Macao. Returns will also be covered by Taobao, with returned items sent back to one of the company's overseas warehouses rather than the vendor. The move is part of the company's efforts to persuade more merchants to take part and its wider ambition to increase its market share amid fierce competition.
https://asia.nikkei.com/Business/Retail/Alibaba-s-Taobao-takes-on-Temu-Shein-with-free-overseas-shipping
Why mainland China’s ride-hailing economy is a cautionary tale for Hong Kong
South China Morning Post
An op-ed in the South China Morning Post argues that if ride-hailing platforms such as Uber are to be legalised in Hong Kong, their pricing and commission rates must be regulated. The author states that private companies cannot be allowed to engage in a price war, as this impacts drivers' incomes, and suggests that the minimum charge should be maintained at the same level as for taxis. Furthermore, the author argues that ride-hailing drivers should be required to obtain a commercial driving licence to improve road safety and avoid accidents.
https://www.scmp.com/opinion/letters/article/3271405/why-mainland-chinas-ride-hailing-economy-cautionary-tale-hong-kong?utm_source=rss_feed
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