Apr 02, 2020 09:25 PM

China Business Digest: Debate Intensifies Over 2020 GDP Target; Investors Shrug Off U.S. Stock Sell-Off

Starting this week, Caixin Global will run a daily news digest to give readers a quick rundown of the top China business and finance stories, plus whatever is driving markets for the day. Please let us know if you have any feedback.

Chinese stocks rose after U.S. markets tumbled over the latest coronavirus developments. Meanwhile, debate is heating up in China over whether the country should set a GDP growth target for this year, or suspend the traditional practice amid huge uncertainties surrounding the global pandemic.

— By Timmy Shen (hongmingshen@caixin.com)

** ON THE CORONAVIRUS

Global cases surge

The new coronavirus has continued to run rampant around the world, with nearly 940,000 infections reported as of Thursday afternoon Beijing time, according to data compiled by Johns Hopkins University. The pandemic has claimed more than 47,000 lives so far.

Europe has been hit hard, with nine European countries — Italy, Spain, Germany, France, the U.K., Switzerland, Belgium, the Netherlands and Austria — remaining on the list of the top 15 countries with the most recorded infections.

The U.S. continues to struggle

The U.S. still has the most coronavirus cases of any country, reporting over 216,000 cases — almost double the number of the second-worst hit country Italy. As of Thursday afternoon in China, the U.S. had recorded more than 5,000 deaths and over 8,600 recoveries, according to the Johns Hopkins data.

Other virus news

• Medical expert Zhang Wenhong says 18% to 31% of coronavirus cases are asymptomatic.

• China’s health authorities began regular updates Wednesday of national tallies for asymptomatic cases. Yet the numbers so far do not reveal the true scale of this category of individuals.

• China’s local authorities will be allowed to pump up sales of special-purpose bonds this year to bolster the government’s firepower in supporting the economy.

• In Europe and the U.S., discussions are heating up over whether people should wear masks (link in Chinese). Here’s our related in-depth story.

• China’s air pollution may have been reduced as factories suspended operations, but the pandemic’s harm may extend to the country’s recycling effort. (Bloomberg)

• A new study by a Chinese team has found that cats (link in Chinese) are more likely than dogs to get infected by the coronavirus. Sorry Whiskers.

** TOP STORIES OF THE DAY

Debate over GDP growth target

A debate has intensified over whether China should set a GDP growth target for this year.

Yu Yongding, an influential economist and former central bank adviser, said that China should set a relatively realistic GDP growth target, while Ma Jun, a current central bank adviser, suggested that China should abandon its usual practice of setting a target this year due to great uncertainties facing the country’s economy.

China stocks rise after U.S. sell-off

Despite another major sell-off in New York, Chinese investors weren’t feeling as unsettled about the latest coronavirus developments.

The Chinese mainland’s benchmark Shanghai Composite Index closed 1.69% higher Thursday, while the Shenzhen Component Index jumped 2.28%. Hong Kong’s Hang Seng Index edged up 0.84%.

Japan’s Nikkei 225 Index was down 1.37% at close, while South Korea’s Kospi Index finished the day up 2.34%.

** OTHER STORIES MAKING THE HEADLINES

• Smartphone-maker Smartisan founder Luo Yonghao debuted his livestreaming sales show on Wednesday, gaining tremendous attention and big sales, but China’s consumer watchdog warns that the practice has been creating mounting risks and complaints.

• Foxconn, one of Apple Inc.’s most important manufacturing partners, reassured investors it can still get the latest 5G-enabled iPhones ready for an autumn launch. (Bloomberg)

• A new centrally administered state-owned enterprise has been set up, with main businesses including real estate, hotels, healthcare and insurance.

• China will help its overseas students return home if necessary, the foreign ministry said (link in Chinese).

** AND FINALLY

The coronavirus has forced many people to do things they otherwise wouldn’t, including the de-facto leader of Myanmar, Aung San Suu Kyi, who recently joined Facebook. In a Wednesday post on her account, she wrote that she really didn’t want to join Facebook, but needed a faster and more effective way to communicate with the people about Covid-19. Somewhere Zuck is smiling.

Aung San Suu Kyi

** THE WEEK AHEAD

April 3: Caixin China services PMI

April 4: Qingming Festival

Contact reporter Timmy Shen (hongmingshen@caixin.com) and editors Doug Young (dougyoung@caixin.com) and Michael Bellart (michaelbellart@caixin.com)

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