CX Daily: China’s Launch Of World’s Largest Carbon Market Has A Sputtering Start

Carbon /

In Depth: China’s launch of world’s largest carbon market has a sputtering start

China launched its long-awaited national carbon trading market, marking a major step by the world’s largest greenhouse gas emitter to realize ambitious climate goals.

With more than 2,000 power generation companies initially participating in the national emissions trading scheme (ETS), the market aims to put a price on greenhouse gas emissions to create pressure to reduce the amount produced.

These companies’ total annual carbon emissions are expected to reach 4.5 billion tons (link in Chinese), making the national ETS the largest in the world. On July 16, the ETS made its debut in Shanghai with an opening price of 48 yuan ($7.40) per ton of carbon dioxide equivalents. Its first transaction was sealed at 52.78 yuan per ton right after the market opened, higher than expected.

Tutoring /

Beijing moves quickly to apply new national tutoring rules

The Beijing municipal education authority plans to require after-school tutoring companies in the city to revamp their business and become nonprofits by the end of this year in accordance with a sweeping new national regulation targeting the industry, Caixin learned from government sources.

Beijing’s education commission told executives of leading tutoring companies to overhaul their operations and suggested shifting to senior high school tutoring, vocational training, lifelong education and other areas, sources said.

Opinion: Online games should be next in line for a crackdown

FINANCE & ECONOMY

Economy /

Opinion: How the tech reg landslide will impact China’s economy

"The era of internet platform companies’ freewheeling growth has passed," writes Vincent Chan, a China strategist at investment advisory firm Aletheia Capital, in an article. "It is unknown how they will develop and interact with regulators in the future, which may be vital for the development of China’s economy and capital market."

"The regulatory storm engulfing the platform companies may have just begun," writes Chan. "More firms are expected to be drawn in. It will take time to reach a balance between regulation and innovation."

"There are some points that deserve special attention," writes Chan.

Money laundering /

China and UAE team up to take on financial crime

China and the United Arab Emirates (UAE) agreed to share intelligence concerning money laundering and terrorist financing, according to a Tuesday statement released by the UAE’s central bank.

The UAE Financial Intelligence Unit and the China Anti-Money Laundering Monitoring and Analysis Center, an agency under the People’s Bank of China, signed a memorandum of understanding that will enable them to exchange information on investigations concerning financial transactions related to money laundering, terrorist financing and the persons or entities involved, the statement said.

Stocks /

Traders seek bargains in China stocks that dodged the clampdown

Investors are returning to Chinese stocks after Beijing’s regulatory crackdown triggered last month’s $1 trillion global sell-off. But this time they’re placing bets very selectively, in sectors that have found favor with policymakers.

The top two performers on the Hang Seng Index in the first three days of August are BYD Co. Ltd., an electric vehicle maker, and renewable energy products maker Xinyi Solar Holdings Ltd. They’re followed closely by Anta Sports Products Ltd., which has climbed more than 7% back toward a record high.

BUSINESS & TECH

Teenagers play basketball in July 2018 in Taizhou, East China’s Zhejiang province. Photo: VCG

Fitness /

China sets goals to make citizens fitter and sports industry bigger by 2025

With its athletes excelling at the Olympic Games, China issued a national fitness plan that sets ambitious goals for the proportion of residents exercising regularly to reach 38.5%, and the sports industry to be worth 5 trillion yuan ($773.6 billion) by 2025.

The plan was issued (link in Chinese) Tuesday by the State Council, China’s cabinet, as Chinese athletes continued to compete at the 2020 Tokyo Olympics, where they lead the gold medal tally. The plan spans 2021 to 2025 and is the latest of its kind to promote exercise and physical health as well as give the sports industry a boost.

E-cigarettes /

Another industry’s shares sink after state media criticism; this time it’s vapes

Shares of e-cigarette companies fell after a state media report criticized them for continuing to illegally sell their products to under-18s in the latest instance of such media attention tanking stocks.

Smoore International Holdings Ltd. shed as much as 7.8% in Hong Kong before erasing most of the loss after a Xinhua News Agency report late Wednesday on the ability of adolescents to obtain e-cigarettes.

Shenzhen Jinjia Group Co. Ltd., which also makes e-cigarettes, fell as much as 5.1% during the trading day and closed 4.83% lower in Shenzhen. Relx Technology Inc. dropped almost 5% Wednesday in New York.

Videos /

Investors lose interest in short-video platform Kuaishou

The price of Kuaishou Technology Co. Ltd.’s Hong Kong-listed shares plummeted to a record low Thursday, the day after the short-video giant announced a pullout from the U.S. market.

The company’s equities fell by 15.02% to close at HK$89.40 ($11.50), representing a nearly 80% decline from its record high of HK$415 soon after it completed a $5.4 billion initial public offering in February.

Kuaishou makes U.S. market retreat by shutting down rival app to TikTok

Glass /

China moves to rein in skyrocketing plate glass prices

China’s industry ministry moved to curb plate glass prices after high demand from the real estate sector and capacity limits pushed the key building material to highs last seen more than a decade ago.

Businesses have been urged to increase production, improve coordination across the supply chain and pay attention to the price of raw materials like quartz sand, soda ash and natural gas to restore price stability, the Ministry of Industry and Information Technology (MIIT) said in a statement (link in Chinese) Wednesday.

Quick hits /

Apple taps more China suppliers for its latest iPhones

Huawei CFO enters final extradition hearings facing steep odds

Algorithms in the crosshairs as authorities issue new commentary guidelines

Energy Insider /

Yangtze Power to take over two giant hydropower units; nonferrous metal production rises

GALLERY