China Business Digest: BlackRock Shutters China Private Funds; Beijing Warns of Consequences for Stockholm’s Huawei Ban
BlackRock is closing some of its private funds in China to comply with local regulations as it prepares to launch a mutual fund business in the country. Huawei released its premium Mate40 line of phones as chip supplies were cut by the U.S. China is demanding that Sweden revoke its ban on Huawei, warning that Swedish companies could face consequences. Meanwhile, 17 strategic investors won the right to subscribe for nearly $600 million of shares in investment bank CICC’s Shanghai IPO.
— By Guo Yingzhe (firstname.lastname@example.org) and Han Wei (email@example.com)
** TOP STORIES OF THE DAY
BlackRock prepares for mutual fund business in China
Global money manager BlackRock Inc. is liquidating some of its Chinese private funds to comply with local regulations as it shifts its focus to its new mutual fund business in the country. (Read the full story.)
Huawei releases Mate40 series as U.S cuts chip supply
Huawei Technologies Co. Thursday unveiled its long-anticipated Mate40 line of premium phones, the first release since the Trump administration fully cut off the Chinese telecom giant from major chip suppliers. The Mate40 series is also potentially the last major release powered by Huawei’s self-designed advanced chips.
Online educator Yuanfudao raises $2.2 billion as valuation doubles
China’s online tutoring startup Yuanfudao said it raised $2.2 billion in two recent funding rounds that gave the Beijing-based company a valuation of $15.5 billion, the highest among global education technology upstarts. The company is among the major players in China’s online education market which has seen a boom amid the Covid-19 pandemic.
China warns that Swedish companies could suffer from Huawei ban
The Chinese foreign ministry warned Sweden that it should revoke its ban on Huawei Technologies Co. Ltd. to avoid negative impact on Swedish businesses operating in China.
“With no evidence, Sweden takes national security as a pretext to slander Chinese companies, openly oppress Chinese telecom companies, and politicize normal economic cooperation,” Chinese foreign ministry spokesperson Zhao Lijian said Wednesday at a press briefing.
CICC’s Shanghai IPO welcomed by strategic investors
Seventeen strategic investors, including an Alibaba Group Holding Ltd. arm and sovereign wealth fund Abu Dhabi Investment Authority, have won the right to subscribe to about 3.96 billion yuan ($594 million) of shares in the Shanghai IPO for leading local investment bank China International Capital Corp. Ltd. (CICC), according to a CICC filing (link in Chinese) on Wednesday.
Central bank official urges stricter data protection
Data protection should not be delayed, Fan Yifei, a deputy governor of China’s central bank, said at a Wednesday conference (link in Chinese). He said some consumers and financial institutions lack awareness about data protection the dangers of data leaks.
** OTHER STORIES MAKING THE HEADLINES
Economy & Finance
• China’s gold-backed exchange-traded fund (ETF) market continued expanding as both total gold holdings and assets under management in the ETFs hit record highs in September, data from the World Gold Council show.
• China’s central bank fined six state-owned bank branches a combined 41.9 million yuan ($6.3 million) earlier this week for infringement of consumers’ personal information rights as the country is making its first national legislation on the protection of personal information. (Read the full story.)
• China’s Ministry of Natural Resources has said people from the countryside who settle in cities can inherit the right to use homestead from their parents, a clarification that could boost the country’s urbanization. (Read the full story.)
• China’s fiscal revenue grew 4.7% year-on-year in the third quarter, returning to growth after shrinking for two consecutive quarters, data from the Ministry of Finance showed Wednesday. (Read the full story.)
Business & Tech
• Miniso Co. Ltd., a Chinese budget household and consumer goods retailer, has opened its first store in Paris in a renewed effort to increase its presence in Europe, following a New York IPO last week. (Read the full story.)
• Intel Corp.’s NAND memory business may be largely based in China, but the company decided against Chinese buyers for the unit’s recent sale, with some speculating it picked a South Korean firm to avoid a Washington veto. (Read the full story.)
• Renrenche Internet Technology Inc. was one of China’s hottest tech unicorns backed by investors including Goldman Sachs Group Inc. and Tencent Holdings Ltd. Now the car trading platform could sell itself for a little over $1,000. (Bloomberg)
• Swedish telecoms giant Ericsson reported 38% year-on-year growth in its third-quarter operating income amid some governments’ restrictions on rival products from Huawei.
• Police across China this year opened more than 8,800 investigations into cross-border gambling by the end of September, according to (link in Chinese) the Ministry of Public Security. The total funds involved in those cases exceed 1 trillion yuan.
• China will not resume inbound and outbound group tours for now due to the risk of new Covid-19 waves this autumn and winter, the Ministry of Culture and Tourism said Wednesday (link in Chinese).
• As of Wednesday afternoon Beijing time, the number of coronavirus infections globally exceeded 41.2 million, with the death toll surpassing 1.1 million, according to data compiled by Johns Hopkins University.
** AND FINALLY
The first joint exhibition of three of China’s major Buddhist grottoes, the Mogao Caves, Yungang Grottoes and Longmen Grottoes, opened Sunday at the Luoyang Museum in Luoyang, Central China’s Henan province.
A visitor examines elaborate paintings in a replica cave from the Mogao Caves, a World Heritage site listed by UNESCO in 1987.
** LOOKING AHEAD
Quarterly financial results:
Oct. 28: ZTE
Oct. 29: BYD
Contact reporter Guo Yingzhe (firstname.lastname@example.org) and editors Yang Ge (email@example.com) and Joshua Dummer (firstname.lastname@example.org)
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