Caixin
Oct 26, 2020 11:59 PM

China Business Digest: Ant Group Prices $40 Billion IPO; China Imposes Sanctions Against U.S. Defense Giants

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Ant Group priced its shares at about $10.30 each, giving it a market value of more than $300 billion. China will impose sanctions on Boeing Co., Lockheed Martin Corp. and Raytheon Technologies Corp. over U.S. arms sales to Taiwan. Meanwhile, Douyin and Kuaishou, two of China’s most popular short-video apps, are weighing IPOs in Hong Kong.

— By Lu Yutong (yutonglu@caixin.com)

** TOP STORIES OF THE DAY

Ant Group sets share prices for world’s largest IPO

Ant Group Co. Ltd., the fintech affiliate of e-commerce giant Alibaba Group Holding Ltd., priced its dual listing on the Hong Kong Stock Exchange at HK$80 ($10.32) and on Shanghai’s STAR Market at 68.8 yuan ($10.30) a share, according to regulatory filings released Monday.

China’s domestic scheduled flights increase 20% for winter/spring season

Nearly 200 domestic and foreign airlines planned 94,800 passenger and cargo flights every week for the 2020 winter and 2021 spring seasons, including 86,700 domestic flights (excluding Hong Kong, Macao and Taiwan) each week, up 20.2% year on year, data (link in Chinese) from the Civil Aviation Administration of China shows.

China to sanction Boeing, Raytheon, Lockheed over arms sales to Taiwan

China will impose unspecified sanctions on Boeing Co.’s defense unit, Lockheed Martin Corp. and Raytheon Technologies Corp. after the U.S. State Department approved $1.8 billion in arms sales to Taiwan last week.

Two Chinese short-video giants eye Hong Kong IPOs

ByteDance Ltd.’s Douyin and Tencent-backed Kuaishou, two of China’s most popular short video apps, are planning initial public offerings in Hong Kong, according to people familiar with the matters.

China has completed 71% of its agriculture imports target under Sino-U.S. trade deal

China has purchased over $23 billion in U.S. agricultural products this year as of Friday, approximately 71% of its annual target under the Sino-U.S. phase one trade agreement with the U.S., with sales of several goods at all-time highs, according to a report released by the United States Trade Representative and the U.S. Department of Agriculture on Friday. The report also suggested China has implemented at least 50 of the 57 technical commitments under the deal.

Financial sector should avoid ‘wrong paths’ of speculation, bubbles and Ponzi schemes, vice president says

China’s finance industry should stay off the “wrong paths” of speculation, self-circulating financial bubbles and Ponzi schemes, and serve the real economy, focusing on preventing financial risks, Vice President Wang Qishan said a pre-recorded speech played to a financial summit on Saturday.

SOE overseer in Guizhou nets 24.5 billion yuan from selling shares of liquor giant Moutai

The local branch of the state-owned enterprise overseer in Southwest China’s Guizhou province generated (link in Chinese) at least 24.5 billion yuan in the third quarter by selling 16.75 million shares in liquor-maker Kweichow Moutai Co. Ltd., China’s most valuable listed company.

The move could prop up market sentiment over the Guizhou government’s ability to repay its debt, Pacific Securities Co. Ltd. said in a report.

Parent company of BMW joint venture partner defaults on $149 million bond

Brilliance Auto Group Holdings Co. Ltd., parent of BMW AG’s main Chinese joint-venture partner, failed to repay a 1 billion yuan bond that matured on Friday, as the state-owned carmaker continues to struggle with growing financial problems.

The carmaker had asked its creditors to give it an extra 90 days to make the payments, according to a source from a private fund manager that held the bond.

Digest Stock Chart 1026

** OTHER STORIES MAKING THE HEADLINES

Finance & Economy

• The yuan’s recent appreciation is “relatively mild,” but companies should prepare for risks brought by currency volatility, a deputy head of the State Administration of Foreign Exchange (SAFE) told a briefing on Friday.

• The State Administration of Foreign Exchange is considering loosening some restrictions on cross-border investment under its Qualified Foreign Limited Partnership program, a deputy SAFE head said on Friday.

Business & Tech

• U.S. Magistrate Judge Laurel Beeler on Friday rejected the administration of Donald Trump’s request to let its restrictions on WeChat proceed while the Justice Department appeals the Sept. 19 order she issued at the behest of users of the messaging app. (Bloomberg)

• Italy has prevented telecommunications group Fastweb SpA from signing a deal for Huawei Communications Co. Ltd. to supply equipment for its 5G core network, Reuters reported, citing three sources close to the matter, the clearest sign yet Rome is adopting a tougher stance against the Chinese group.

• China’s State Administration for Market Regulation has launched a joint campaign with over a dozen other agencies to crack down on illicit activities including unfair competition on e-commerce platforms and the trading of counterfeits and wild animals, the official Xinhua News Agency reported Sunday. The campaign will last through December.

• Tesla is recalling 50,000 Model S and Model X vehicles in China that were manufactured in the U.S. between 2013 and 2018 over potential suspension problems. This is Tesla’s fourth recall of cars exported from the U.S. to China.

• Shanghai-based SmartSens Technology Co. Ltd., which specializes in the design of CMOS image sensing chips for smart clarity and smart pixel, has raised approximately 1.5 billion yuan in a funding round co-led by a clutch of investors including a national chip fund and Xiaomi Corp.

• China’s crude steel production is expected to hit 1 billion tons this year, a deputy head of the China Iron and Steel Industry Association said at a briefing Monday. The country produced 996 million tons of steel in 2019.

• Real estate private equity firm Gaw Capital Partners announced Friday that it has formed a joint venture with Chinese delivery firm Manbang Group to develop smart logistics properties and facilities across China.

** ON THE CORONAVIRUS

• The Chinese mainland reported (link in Chinese) 137 asymptomatic Covid-19 cases on Sunday in Kashgar in the northwestern part of the Xinjiang Uygur autonomous region. That cluster was linked to a person who was found to have the virus a day earlier.

The country also added 20 new symptomatic infections for the same day, all imported, with 11 of them in Shanghai.

 Read more 
Caixin’s coverage of the new coronavirus

• As of Monday afternoon Beijing time, the number of global coronavirus cases has topped 43 million, with more than 1.15 million deaths, according to data from Johns Hopkins University.

** LOOKING AHEAD

Quarterly financial results:

Oct. 28: ZTE

Oct. 29: BYD

** AND FINALLY

Singaporean biotech start-up TurtleTree Labs has won the Entrepreneurship World Cup 2020, a flagship event of a nonprofit foundation set up by Saudi Arabia’s Crown Prince Mohammed bin Salman, out of some 175,000 participants for making tasty milk … without help from cows or humans.

TurtleTree’s milk products are made in laboratory, and “winning this competition highlights the importance of sustainable food production,” its co-founder Lin Fengru said. (Straits Times)

 

Contact reporter Lu Yutong (yutonglu@caixin.com) and editors Yang Ge (geyang@caixin.com) and Joshua Dummer (joshuadummer@caixin.com)

 Read more 
China Business Digest: China Sets Up $22.5 Billion State-Owned South-to-North Water Diversion Group; Hong Kong Connect Opens China ETF Market to Global Investors

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