China Business Digest: Oracle-TikTok Deal Still in Doubt; STAR Market Warns Against IPO Pricing Collusion
Japan’s new prime minister signaled he will stick with his predecessor’s approach to China, and Beijing entered another round of border talks with New Delhi. Meanwhile, doubts emerged again about Oracle Corp.’s deal to take over TikTok’s U.S. operations after President Donald Trump said he may rescind his tentative approval.
— By Lu Yutong (firstname.lastname@example.org)
** TOP STORIES OF THE DAY
Exclusive: ByteDance founder could be the lone Chinese citizen on TikTok Global’s board
ByteDance Ltd. founder Zhang Yiming will likely be the only Chinese citizen on TikTok Global’s board, Caixin has learned (link in Chinese). Zhang will be joined by Arthur Dantchik, founder of Sig Asia Investment LLLP and William E. Ford, CEO of growth equity firm General Atlantic. They will be joined by a U.S.-based general manager from Sequoia Capital and a Walmart Inc. appointee.
New Japanese Prime Minister to stick with Abe’s approach to China
Japanese Prime Minister Yoshihide Suga has signaled with his cabinet picks that he will follow predecessor Shinzo Abe’s path on foreign policy, including an approach to China that balances economic ties with a tough response to perceived provocations.
Trump says ByteDance can’t keep control of TikTok in Oracle deal
U.S. President Donald Trump said he might rescind (link in Chinese) his tentative blessing for a deal between Oracle Corp. and ByteDance to create a new U.S.-based TikTok service, casting doubt on the agreement as Chinese state media signaled reluctance in Beijing. Speaking Monday in an interview on Fox News, Trump said he wouldn’t approve the deal if the Chinese company retains control of TikTok.
STAR Market warns investors against collusion on IPO pricing
China’s Nasdaq-style high tech stock market warned investors Monday against negotiating bid prices in their subscriptions to shares of initial public offerings, after Swancor New Materials got 7,000 lowball bids and raised just half its target amount.
HKEX prepares new platform to speed up IPO process
Hong Kong Exchanges and Clearing Ltd. (HKEX) is preparing to launch a new platform called “FiNI” to simplify the initial public offering (IPO) process and improve IPO efficiency, local media reported.
China’s Huazhu eyes foreign deals as global brands languish
Shanghai-based Huazhu Group Ltd., China’s biggest hotel operator, is moving to acquire foreign hospitality chains as the rapid recovery of the country’s domestic travel market gives it an advantage over ailing global rivals.
China and India holds their sixth high-level talks over border issues
China is holding its sixth round of high-level border talks with India, said Ministry of Foreign Affairs spokesman Wang Wenbing at a daily briefing on Monday.
Beijing reveals punishment for firms on unreliable entity list
China revealed penalties including restricting trade, investment and visas to punish firms, organizations or individuals on its “unreliable entity list,” which have been deemed to have damaged the country’s interests.
Cover Story: China moves to alter medical coverage for 300 million
The authorities have quietly set in motion a long-discussed plan to restructure the country’s medical insurance system that will affect more than 300 million urban residents, although the debate over several key elements continues to rage.
Two Chinese brokerages merge to compete with foreign players
Smaller brokerages Guolian Securities Co. Ltd and Sinolink Securities Co. Ltd. have agreed to merge, as Beijing encourages market consolidation to create stronger local securities firms that can compete with foreign players.
China is about to reduce its dependence on foreign natural gas
China’s natural gas imports may reach around 140 billion cubic meters in 2020, according to a new report, as the country steps up efforts to reduce its dependence on foreign natural gas. That would represent an annual growth rate of about 3.6%, down from the 6.9% growth in 2019, according to Caixin calculations.
** OTHER STORIES MAKING THE HEADLINES
Finance & Economy
• China held its one-year loan prime rate steady at 3.85% as expected on Wednesday, mirroring the central bank’s decision last week to keep borrowing costs on medium-term funding for financial institutions unchanged. (Reuters)
• China is directing authorities in East China’s Zhejiang province to start planning for energy and agricultural product stockpiles as part of a push to develop regional free-trade zones. (Reuters)
Business & Tech
• China, the world’s biggest automobile market, rolled out fresh policies to support hydrogen fuel cell vehicles to improve the industry’s supply chain and technologies, the finance ministry said on Monday. (Reuters)
• Chinese ride-hailing giant Didi Chuxing and electric vehicle manufacturer BYD plan to launch this year a test batch of a vehicle they designed for ride-hailing services. (Reuters)
• Dong Mingzhu, chairwoman and president of leading Chinese home-appliance maker Gree, has wrapped up her eighth livestream as part of a strategy to integrate online and offline sales channels. The eight livestreams have generated total revenue of 34.2 billion yuan ($5 billion).
• China has announced the nationwide rollout of a policy banning sex offenders from working at schools and kindergartens, which it plans to implement by opening up access to regional judicial records for sexual misconduct.
** ON THE CORONAVIRUS
• The novel coronavirus was found on the packaging of imported squid in northeastern Jilin province, health authorities in the city of Fuyu said Sunday. (Reuters)
• The Chinese mainland reported (link in Chinese) 12 new coronavirus cases for Sunday, up from the 10 infections a day earlier. All of them were imported, with three arriving in South China’s Guangdong province and two in Shanghai.
Caixin’s coverage of the new coronavirus
• As of Monday afternoon Beijing time, the number of global infections has reached 31 million, with the death toll topping 960,000, according to data from Johns Hopkins University.
Contact reporter Lu Yutong (email@example.com) and editors Michael Bellart (firstname.lastname@example.org) and Joshua Dummer (email@example.com)
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