China Business Digest: Authorities Limit International Flight Capacity From High-Risk Areas; UnionPay Launches Digital Bankcard
China’s manufacturing sector continues to recover, expanding at its fastest pace in more than nine years, a Caixin-sponsored survey shows. India overtook Mexico to become the country with the world’s third-highest coronavirus death toll. China will limit the passenger capacity of international flights to or from high-risk virus transmission areas to no more than 75%.
— By Tang Ziyi (email@example.com)
** TOP STORIES OF THE DAY
Caixin China manufacturing PMI hits over nine-year high for second straight month
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rose to 53.1 last month from 52.8 in July, reaching a high not seen since the start of 2011. The PMI remained in expansionary territory for the fourth month in a row.
China limits international flight capacity from high-risk areas
China will limit the passenger capacity of international flights to or from places deemed to be at high risk of Covid-19 transmission to no more than 75% (link in Chinese) in an effort to contain imported coronavirus cases, the Civil Aviation Administration of China said Tuesday.
UnionPay launches digital bankcard
Chinese financial services company UnionPay teamed with 17 banks to launch a digital bankcard, allowing users around the world to apply for the virtual cards without actually visiting a bank and use them through various platforms.
China’s new tech export restrictions could have impact beyond TikTok
China’s new tech export restrictions not only add uncertainty to the sale of TikTok’s U.S. operations but also could affect exports of broader consumer tech products such as drones and cellphones.
U.S. college expels 15 visiting Chinese government-backed scholars
The University of North Texas has terminated its exchange program consisting of 15 visiting researchers from China who were working at the university backed by Chinese government funding, according to local media reports on Monday. The termination effectively ended those researchers’ ability to remain in the U.S.
Yuan’s jump to one-year high tests China’s tolerance for gains
A surge in China’s yuan to a more than one-year high is testing the central bank’s appetite for currency strength. The yuan jumped as much as 0.46% to 6.8168 a dollar on Tuesday, the strongest level since May 2019, as the dollar traded at a two-year low. (Bloomberg)
Soybeans climb to two-year high on China demand, U.S. crop woes
Soybean futures in Chicago advanced for the sixth day to the highest level since June 2018 on strong demand from China, worries about deteriorating U.S. crop conditions and a weakening dollar. (Bloomberg)
Nio boosts size of share sales amid electric-car stock frenzy
China’s Nio Inc. boosted the size of its capital raising by almost 20% as investors rush to stock sales by EV makers. The New York-listed firm sold 88.5 million American depositary shares at $17 apiece, according to an emailed statement Monday. It initially planned to sell only 75 million shares. (Bloomberg)
Midea overtakes Gree for China’s air conditioner crown
Gree Electric Appliances Inc. of Zhuhai lost its crown as China’s largest air-conditioner maker after sales of the product in the first half of this year fell far short of those by rival Midea Group Co. Ltd.
Feed producer’s sales surge as pork prices remain high
Shenzhen-listed New Hope Liuhe Co. Ltd., a major Chinese animal feed producer, reported that revenue from its pork business more than tripled in the first half versus the same period a year earlier, as pork prices remained high amid an ongoing industry recovery from the deadly African swine fever crisis.
** OTHER STORIES MAKING THE HEADLINES
Finance & Economy
• Hong Kong’s securities regulator said Monday that a court had issued arrest warrants for Ho Ming Hin and Simon Suen Man, who allegedly manipulated share sales of Hong Kong-listed construction company Ching Lee Holdings Ltd.
• Embattled private investment conglomerate China Minsheng Investment Group Corp. Ltd. has undergone a personnel shakeup and appointed a new team of executives, Caixin has exclusively learned from sources with knowledge of the matter.
• Standard Chartered PLC has created a new position that will oversee business in China’s Guangdong-Hong Kong-Macao Greater Bay Area to fuel its expansion in the region.
• Industrial and Commercial Bank of China Ltd., one of China’s four biggest state-owned commercial banks, said its net profits dropped 11.2% year-on-year in the first half this year as the lender lowered costs of loans for businesses amid the pandemic.
Business & Tech
• Real estate giant China Evergrande Group reported its net profits shrank by more than 50% in the first half compared to the same period last year amid the pandemic.
• Around 13.7 billion yuan of Tianqi Lithium Corp.’s non-current liabilities will come due within a year, adding financial burden to the cash-strapped Chinese lithium giant.
** ON THE CORONAVIRUS
• On Monday, the Chinese mainland reported 10 new Covid-19 cases with symptoms (link in Chinese), all of which were imported, according to China’s top health body.
Caixin’s coverage of the new coronavirus
• As of Tuesday evening Beijing time, the number of coronavirus infections globally exceeded 25.5 million, with the death toll surpassing 850,000, according to data compiled by Johns Hopkins University.
• On Monday, India surpassed Mexico to become the country with the third-highest death toll globally. Also in India, former President Pranab Mukherjee on Monday died at the age of 84 after being diagnosed with the coronavirus.
** AND FINALLY
Wuhan, the city that was once at the heart of China’s coronavirus epidemic, opened all of its schools and kindergartens Tuesday as the autumn semester began. After being forced to stay at home for months, about 1.4 million students are expected to restart classes, despite virus control measures that include avoiding large gatherings and wearing masks to and from school, according to local authorities.
A volunteer helps two students cross a street Tuesday in front of an elementary school in Wuhan, Central China’s Hubei province.
** LOOKING AHEAD
Sept. 3: Release of Caixin China services PMI
Contact reporter Tang Ziyi (firstname.lastname@example.org) and editor Yang Ge (email@example.com)
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