China Business Digest: Cathay Pacific Plans State-Backed Bailout; China’s Daily Domestic Air Trips Top 1 Million
Hong Kong’s flagship carrier Cathay Pacific has announced a $5 billion recapitalization plan. Meantime, China’s air passenger traffic showed continued signs of recovery, with daily domestic trips topping 1 million for the first time in months. Meanwhile, electric-car maker BYD got the green light to export 150 million N95 respirators to California.
— By Mo Yelin (firstname.lastname@example.org)
** TOP STORIES OF THE DAY
Daily domestic air travel recovers to 60% of pre-pandemic level
China recorded 1 million daily domestic air passenger trips (link in Chinese) for the first time since January on Friday, official data showed. During the day, a total of 1.04 million such trips were made domestically, equal to about 61.5% of the level a year ago.
Cathay Pacific to get $5 billion state-backed bailout
Hong Kong’s flagship carrier said Tuesday it is working on a plan to raise HK$39 billion ($5 billion) from the Hong Kong government and its shareholders, as it struggles amid the coronavirus pandemic. After the deal, the government will own 6.08% of Cathay.
BYD ready to ship 150 million masks to U.S.
U.S. officials have approved N95 respirators made by Chinese electric-vehicle maker BYD, clearing the way for the firm to ship 150 million masks to California as part of a $1 billion deal. California Governor Gavin Newsom said on Tuesday BYD’s first shipment of masks is expected to arrive in the coming days, and will be handed to frontline health workers to help protect them from Covid-19.
Online health care startup WeDoctor eyes $900 million in Hong Kong IPO
WeDoctor, the online health care startup backed by internet giant Tencent, plans to file an IPO prospectus with the Hong Kong Stock Exchange by October, Caixin has learned (link in Chinese) from a source familiar with the deal. JPMorgan, Credit Suisse and China Merchants Bank will underwrite the deal, which aims to raise $900 million at a company valuation of $5.5 billion.
Chip startup backed by display giant BOE raises big funds
Beijing-based Eswin, which was founded a year ago, confirmed to Caixin (link in Chinese) that it has raised over 2 billion yuan ($283 million) from investors including Legend Capital Co. Ltd., a sister company of PC giant Lenovo Inc., and IDG Capital. Eswin’s chairman and CEO is Wang Dongsheng, who resigned as chairman of BOE Technology Group Co. Ltd. in June last year.
** OTHER STORIES MAKING THE HEADLINES
• Cai Guohua, former chairman of joint stock lender Hengfeng Bank Co. Ltd., could face a possible life sentence in his trial that begins Tuesday in East China’s Shandong province. He faces multiple charges related to a three-year-old cleanup of the troubled bank.
• David Webb, a well-known Hong Kong activist investor whose investigations into corporate malfeasance triggered regulatory probes and made him a minor celebrity in the city, said he has prostate cancer.
• The total revenue of the 37 brokerages listed on the Chinese mainland dropped by about half in May from the previous month to 16 billion yuan amid turbulence in the stock and bond markets caused by the coronavirus pandemic.
• Two Tencent executives will take key management positions at China’s largest movie-ticket selling platform Maoyan (link in Chinese), in which the internet giant holds a 14% stake, as the company deepens its footprint in the movie industry.
• Passenger vehicle sales in China increased by 1.8% (link in Chinese) in May to reach over 1.6 million, data from China Passenger Car Association showed. This is the first time China saw monthly year-over-year car sale growth in nearly two years.
** ON THE CORONAVIRUS
• As of Tuesday afternoon Beijing time, the number of coronavirus infections globally surpassed 7.13 million, with the death toll passing 406,000, according to data compiled by Johns Hopkins University.
• New Zealand said it would end its social distancing requirements after reporting zero active cases of Covid-19 for over two weeks, indicating it has achieved its goal of eliminating the virus.
• On Monday, the Chinese mainland reported three new symptomatic coronavirus cases (link in Chinese), all imported, according to official data. No new deaths were reported. The mainland added 21 new asymptomatic cases on the same day.
• Large-scale Covid-19 testing in the city of Mudanjiang, Northeast China's Heilongjiang province, has revealed 19 new asymptomatic carriers (link in Chinese), local authorities said Monday. The testing program was carried out from June 1 to Sunday and covered 650, 000 people.
Contact reporter Mo Yelin (email@example.com) and editors Yang Ge (firstname.lastname@example.org) and Joshua Dummer (email@example.com)
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