China Business Digest: China Has Already Begun Deploying Covid-19 Vaccines; ChiNext Debutants Surge Under New IPO Rules
China has quietly allowed emergency use of domestically developed Covid-19 vaccines since late last month. Meanwhile, the stocks of 18 companies surged in their debut Monday on Shenzhen’s Nasdaq-like ChiNext board under relaxed IPO rules. And ByteDance is set to sue the U.S. over its TikTok ban. Also, Chinese electric-car maker Xpeng is looking to raise up to $1.2 billion in its upcoming U.S. IPO.
— By Mo Yelin (email@example.com)
** TOP STORIES OF THE DAY
Debutants surge up to 500% on China’s already sizzling tech board
A medical instrument manufacturer and a cable-maker surged more than 500% in their debuts on China’s ChiNext board on Monday. They were among a flood of new offerings trading under revamped rules that remove daily price limits for new stocks.
A batch of 18 firms traded for the first time under so-called registration-based IPOs, gaining by an average 158% as of the mid-day break. Ningbo KBE Electrical Technology Co. Ltd. rose as much as 581% from its offering price, while Contec Medical Systems Co. Ltd. soared more than 500% before paring its gains. (Bloomberg)
ByteDance to sue over U.S. TikTok ban
ByteDance Ltd. (link in Chinese) said over the weekend it will take legal action on Monday to challenge a ban on its popular TikTok short video app imposed by U.S. President Donald Trump. Earlier this month, Trump signed an executive order prohibiting transactions with ByteDance starting from mid-September.
Xpeng seeks up to $1.2 billion in U.S. IPO
Chinese electric-car maker Xpeng Motors (link in Chinese) said in a Friday U.S. filing that it plans to sell 85 million American depositary shares for $11 to $13 each in its upcoming New York IPO. If shares price at the top of that range, it would raise up to $1.27 billion.
Platinum Equity in talks to buy HNA’s Ingram for $7 billion
U.S. private equity firm Platinum Equity is in advanced talks to buy HNA Group Co. Ltd.’s Ingram Micro Inc. in a deal that values the technology distributor at about $7 billion, including debt, according to people with knowledge of the matter. (Bloomberg)
In Depth: How Chinese developers became entangled in LA bribery case
An investigation of corruption allegations against a Los Angeles city councilman brought to light a multimillion-dollar bribery scheme involving several Chinese developers seeking his backing for lucrative property deals in the U.S.’ second-largest city.
BlackRock green-lit to set up joint venture in China
BlackRock Inc. and Singapore’s Temasek Holdings Pte have received approval to get into the asset-management business in China with one of country’s biggest banks, China Construction Bank Corp., the national banking regulator announced on Saturday.
** OTHER STORIES MAKING THE HEADLINES
• SZ DJI Technology Co., Ltd. (link in Chinese), the leading Chinese drone-maker, said it was informed by the U.S. International Trade Commission that the agency decided not to enforce a ban on its drones in the U.S., representing a victory for the company in its two-year patent war with U.S.-based rival Autel Robotics Co. Ltd.
• Fresh data showed China’s wheat imports more than doubled in the first seven months of the year from the same period in 2019 due to increasing demand for high-quality grain, a spokesman for the Ministry of Commerce said.
• Ant Group (link in Chinese), the fintech affiliate of e-commerce giant Alibaba Group Holding Ltd., plans to set up a consumer finance company in the southwestern Chinese city of Chongqing, a move that aims to boost its fast-growing online lending business ahead of a widely expected blockbuster IPO.
• Several of Alibaba’s biggest investors have converted billions of dollars in U.S. shares into Hong Kong stock in part to avoid potential U.S. sanctions and delistings of major Chinese technology companies.
• Chinese digital consumer finance firm 360 Finance reported that second-quarter revenues ballooned 50% year-on-year to 3.3 billion yuan.
• Chinese Premier Li Keqiang said the country’s economy might end up growing this year, state media reported Sunday, despite the impact of the Covid-19 pandemic. (Reuters)
** ON THE CORONAVIRUS
• China has been authorizing emergency use of some domestically developed Covid-19 vaccines since late last month, a Chinese health official confirmed (link in Chinese) in a TV interview on Saturday. These vaccines were used by some high-risk groups, such as frontline medical workers and civil servants, according to the official.
Separately, Chinese Premier Li Keqiang announced Monday that the country will prioritize countries around the Mekong River for its aid once Covid-19 vaccines are available.
• As of Monday afternoon Beijing time, the number of coronavirus infections globally surpassed 23.4 million, with the death toll passing 809,000, according to data compiled by Johns Hopkins University.
• The Chinese mainland reported (link in Chinese) 16 new symptomatic Covid-19 infections on Sunday, up from 12 a day earlier. All of the new cases were imported. The mainland also added 27 asymptomatic cases.
** AND FINALLY
Beijing residents finally got a chance to get a taste of Taco Bell after the U.S. chain opened its first restaurant in the capital’s Liangmaqiao neighborhood. In addition to the brand’s signature tacos, the store will offer exclusive local selections such as rice bowls, seasoned chicken and taco pizza.
** LOOKING AHEAD
Release of second-quarter financial results:
Aug. 26: Bilibili and Xiaomi
Aug. 28: BYD and ZTE
Contact reporter Mo Yelin (firstname.lastname@example.org) and editors Yang Ge (email@example.com) and Michael Bellart (firstname.lastname@example.org)
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