China Business Digest: More Foreign Investors Can Tap China Listed Firms; China Eases Entry Rules for Some Foreigners
China’s cabinet pledges greater access for foreign investors to the country’s domestically listed companies. China reopens its border to foreign nationals for work and personal matters. Huawei executive says the company has enough communications gear inventory to carry on. Meanwhile, China’s BGI Group received an order for 1.5 million coronavirus testing kits from Ethiopia. And a major solar panel manufacturer is planning to spin off a subsidiary and list it on the STAR Market sometime over the next three years.
— By Lu Yutong (firstname.lastname@example.org) and Han Wei (email@example.com)
** TOP STORIES OF THE DAY
Cabinet vows to allow more foreign investment in listed companies
The State Council, China’s cabinet, said more foreign investors will be allowed to make strategic investments in domestically listed companies as part of efforts to invigorate the country’s capital market. A cabinet meeting Wednesday chaired by Premier Li Keqiang proposed a set of measures to improve corporate governance of listed companies and expand investment in the capital market.
Huawei has enough communications gear inventory to carry on
Huawei Technologies Co. said it has “sufficient” inventory for its communications equipment business while it seeks out supplies of smartphone chips that have been cut off by a Trump administration ban. Huawei is developing new consumer devices to offset the hit to its smartphone business and is still willing to buy from American companies, said Guo Ping, Huawei’s rotating chairman.
China lifts reentry ban on residence permit holders
Foreign nationals holding valid Chinese residence permits for work, personal matters and reunions will be allowed to enter China starting Sept. 28, the Chinese National Immigration Administration said Wednesday. The eased restrictions came six months after the country banned almost all inbound foreign nationals amid the Covid-19 pandemic.
China vows carbon neutrality by 2060 in major climate pledge
China President Xi Jinping said the country aims to be carbon neutral by 2060, as it tightens its greenhouse gas target, and spends more on green technologies in the next five years. The declaration represents a major pledge in the fight against climate change by the planet’s worst polluter.
Speaking during a virtual United Nations General Assembly on Tuesday, Xi also reiterated his goal for emissions to peak before 2030 and urged all nations to work toward a greener economic recovery from the Covid-19 pandemic.
China, India agree to stop sending new troops to Himalayan border
China and India have agreed to stop sending new troops to the front line of their disputed Himalayan border as the powerful neighbors try to deescalate tensions. (Bloomberg)
The two governments will refrain from unilaterally changing the situation on the ground and avoid any actions that may cause complications, they said in statements Tuesday, a day after holding a commander-level meeting.
China’s BGI wins 1.5 million coronavirus test kit order from Ethiopia
Ethiopia has agreed to purchase 1.5 million coronavirus testing kits that will be manufactured at a new domestic factory built by China’s BGI Group. (Reuters)
The factory, the first coronavirus test production facility in Ethiopia, which opened earlier this month, was designed to be able to make 6 million to 8 million tests a year.
China’s WH Group and Brazil’s JBS are behind surge in U.S. pork exports to China
U.S. pork exports to China have surged beyond pre-trade war levels, led by higher shipments from Brazil's JBS SA and China’s WH Group Ltd., owner of Smithfield Foods Inc. (Reuters)
JBS may have shipped 370% more U.S. pork to China this year through Aug. 31 than during the same period in 2017, while exports linked to WH Group rose 90.1%.
Caixin New Economy Index falls on drop in capital inputs
The Mastercard Caixin BBD New Economy Index, which measures the contribution of high value-added industries to China’s total economic inputs, came in at 30.4 in August, down from 31.5 the previous month. The decline came as capital and labor inputs dropped.
JinkoSolar eyes STAR Market IPO for its spin-off
JinkoSolar Holding Co. Ltd. announced it will spin off one of its subsidiaries based in East China’s Jiangxi province and list it on Shanghai’s STAR Market in the next three years. The subsidiary specializes in producing solar panels and related components.
** OTHER STORIES MAKING THE HEADLINES
Finance & Economy
• E-commerce giant JD.com Inc. plans to spin off JD Health, its healthcare arm, and list it in Hong Kong. The timing for the spinoff and listing will depend on market conditions.
• Ant Group Co. Ltd. (link in Chinese) submitted its listing document to Shanghai’s market regulator on Tuesday, bringing it one step closer to the Shanghai part of its planned dual listing. The document showed that the group’s preliminary gross profit for the first nine months of 2020 grew by somewhere between 67% and 73% year-on-year to a range of 66.8 billion yuan ($9.8 billion) to 69 billion yuan.
• China’s top graft-buster has launched an investigation into the chairman of China Everbright Industry Group Ltd., Zhu Huimin, authorities announced Wednesday.
Business & Tech
• Huawei Communications Co. Ltd. has cut its research and development investment in Australia and will axe local jobs amid mounting tech tensions and a ban on the company’s participation in the construction of the country’s 5G wireless network.
• PetroChina Co. Ltd.’s refinery in the city of Daqing has started processing it first batch of Russian crude oil transported via pipeline, the company said Tuesday. (Reuters)
• Japan remains a powerhouse of battery innovation, with Panasonic Corp., Toyota Motor Corp. and other names applying for more than one-third of international patents in the field. China ranked fourth in patent filings.
• Tencent plans to add a new aggregation service in its navigation app Tencent Maps, which will free users from jumping between apps to secure a ride during rush hour. The move comes as Tencent seeks to compete with Baidu Maps and Alibaba-backed Amap.
• China Petroleum & Chemical Corp. (Sinopec), Kuwait Foreign Petroleum Exploration Co. and the U.K.’s EnQuest Plc are among the bidders for Exxon Mobil Corp.’s U.K. North Sea assets as the U.S. oil giant seeks to exit the aging region. (Bloomberg)
** ON THE CORONAVIRUS
• Researchers found evidence of multiple superspreading events of Covid-19 infections in Hong Kong, suggesting that timely identification of superspreaders may be a key to stopping a second wave of the coronavirus pandemic.
• On Wednesday, the Chinese mainland reported (link in Chinese) 10 new coronavirus cases, up from six infections a day earlier. All of them were imported, with four in southern Guangdong province.
Caixin’s coverage of the new coronavirus
• As of Wednesday afternoon Beijing time, the number of global Covid-19 infections topped 31.6 million, including more than 971,000 deaths worldwide, according to data from Johns Hopkins University.
** AND FINALLY
Snow fell for the first time this autumn in the Changbai Mountains in Northeast China’s Jilin province, covering the volcanic Tianchi Lake.
The snow covering Tianchi Lake in the Changbai Mountains was as deep as half a meter.
** LOOKING AHEAD
Sept. 24: Trip.com reports quarterly results
Sept. 30: Release of Caixin China manufacturing PMI
Oct. 9: Release of Caixin China services PMI
Contact reporter Lu Yutong (firstname.lastname@example.org) and editors Yang Ge (email@example.com) and Michael Bellart (firstname.lastname@example.org)
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