CX Daily: ChiNext Rejects First IPO Applicant Since Listing Revamp
ChiNext turns down first IPO applicant since listing revamp
China’s tech-savvy ChiNext board in Shenzhen rejected a share sale application filed by a Jiangsu-based software developer, the first such decision since the decade-old board revamped its listing regime in August to allow registration-based initial public offerings (IPOs).
The ChiNext board of the Shenzhen Stock Exchange said Wednesday that it turned down the IPO application of Jiangsu Netin Technologies Co. Ltd. citing the applicant’s failure to meet requirements for listing and information disclosure.
The rare decision sparked speculation that the board is tightening control over new share sales after a listing boom since it adopted the more market-oriented IPO system. The ChiNext board replaced its old approval-based IPO system in August with a new registration-based system, a move seen to compete with the newly created Nasdaq-style STAR Market in Shanghai.
FINANCE & ECONOMICS
A user checks a personal credit report at a self-service kiosk supported by the PBOC credit reporting system.
Credit information /
Experian plans to exit Chinese mainland market
Global personal credit reference giant Experian plans to exit the Chinese mainland market and is talking with potential buyers about selling its China business. Its departure will leave a credibility vacuum in a chaotic but important sector, industry analysts say.
Analysts attributed Experian’s planned departure to Chinese regulators’ cautious attitude toward foreign players in the personal credit information market. In a disorderly competition with excessive collection and abuse of personal information by some local big data companies, foreign players that focus on compliance are at a disadvantage, they said.
Experian, with its Asia and Pacific business contributing about 8% of group profit, has been suffering huge losses and a shrinking market share in China, several industry participants said.
China among 15 nations to sign Asian trade megadeal Sunday, with opening for India
Ministers from 15 countries in the Regional Comprehensive Economic Partnership agreed Wednesday to sign the long-awaited trade deal at a summit Sunday, leaving the door open for reluctant India to return later.
The 15 nations “have concluded negotiations and will sign the RCEP Agreement this Sunday” at the summit, Mohamed Azmin Ali, Malaysia’s international trade and industry minister, said in a statement.
The deal — which encompasses Japan, China, South Korea, the 10 members of the Association of Southeast Asian Nations, Australia and New Zealand — will create Asia’s largest free trade zone, covering 30% of global gross domestic product and trade. It will be Japan’s first free trade framework with China and South Korea, two vital trading partners.
Major Chinese state-owned bank uses blockchain to sell $3 billion of bonds
China Construction Bank, one of the nation’s big four state-owned banks, partnered with Hong Kong-based fintech firm Fusang to launch the sale of $3 billion of debt securities using blockchain in the hope of reducing service costs traditionally associated with financial intermediaries.
The digital bonds, which will be listed on the Fusang Exchange, a Malaysia-based bourse that also facilitates the trading of cryptocurrencies, can be bought for bitcoin or U.S. dollars, according to a joint company statement Wednesday. The bonds will be sold in the form of certificates of deposit, which global investors can buy for as little as $100 and promise an annualized interest of Libor plus 50 basis points, or a half percentage point, at maturity, the statement said.
China credit growth slows in October on holiday factor
China’s credit growth slowed in October after months of strong rebound, mainly reflecting the week-long national holiday that halted business activities.
Chinese banks issued 689.8 billion yuan ($104.3 billion) of new loans in October, 28.5 billion yuan or 4.3% more than the same time last year but 60% less than in September. Total social financing grew 1.42 trillion yuan, down 61% from the previous month. The figure is largely in line with the median forecast in a Caixin survey. M1 growth, a leading indicator of the economy, rose to a new high of 9.1% year-on-year in October since Jan 2018.
Quick hits /
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BUSINESS & TECH
An American Airlines Group Inc. Airbus A319 plane taxis after landing at Reagan National Airport in Arlington, Virginia, U.S., on April 6. Photo: Bloomberg
American Air plots China return, joining Delta, United
American Airlines Group Inc. is set to resume service to China Wednesday, bringing to 10 the number of weekly flights by U.S. carriers as they rebuild operations suspended early this year because of the coronavirus.
American will fly twice weekly between Dallas-Fort Worth International and Shanghai Pudong International airports, with a stop in Seoul, a spokeswoman for the carrier said. The airline will fly to Beijing’s new Daxing International Airport, rather than the previous destination of Beijing Capital, when the Beijing route resumes March 27.
U.S. airlines suspended service to China in February as the spread of the coronavirus slammed the brakes on international travel. They have been bringing flights back as customer demand rose and the U.S. government approved flights.
ByteDance asks U.S. court to intervene in forced TikTok sale
ByteDance Ltd., the Chinese owner of TikTok, asked the federal appeals court in Washington to intervene to prevent the U.S. government from requiring it to sell the popular video-sharing app or face a ban in America.
The Beijing-based company is seeking to block an order forcing it by Thursday to sell its most important international business, a viral video service with upwards of 100 million users in the U.S. The Trump administration issued an executive order banning TikTok in the U.S. on national security grounds and demanded that the Chinese company cede control of TikTok to American investors.
A deal was eventually struck to sell about 20% of a new TikTok entity to Oracle Corp. and Walmart Inc., but that agreement is now in limbo after a legal challenge of the Trump administration’s ban and after Democratic former Vice President Joe Biden won the U.S. presidential election.
Baidu takes aim at ByteDance, Tencent with internal video merger
Search giant Baidu Inc. combined its two short-video units into one business as it eyes a larger slice of a $19.3 billion market dominated by Tencent and ByteDance.
Baidu said Wednesday in a press statement that it integrated staff from Haokan and Quanmin into a single department to be overseen by Haokan's chief, Song Jian. Specifics of the plan were thin, but a company source told Caixin both brands would continue to operate as different products.
Baidu’s ambitions in the short-video market notwithstanding, one former senior Baidu manager told Caixin they thought the company had fallen too far behind Douyin and Kuaishou to ever catch up.
Five trapped in mining incident in coal-rich Shanxi province
A flooding incident at a mine in North China’s Shanxi province owned by one of the nation’s top power producers left five people trapped inside, the second such case this month in the coal-rich region.
The flooding occurred about 2:50 a.m. Wednesday in the city of Shuozhou, according to a news report posted on the city’s official website. Some 91 people were working at the time, though 86 managed to safely emerge from the mine by the time of the posting at around 11 a.m. the same day. The five other people remained trapped inside, it said. No updates had been provided as of 2:30 p.m. Thursday. The mine is located in Baitang township of the Pinglu district of Shuozhou.
The mine where the accident occurred is operated by a company whose name translates to Maohua Wantong Raw Coal Co. Ltd., which is 70% owned by a unit of Huadian Power International Corp. Ltd., one of China’s leading power producers.
Quick hits /
Wuliangye to open restaurant at Causeway Bay in Hong Kong
Chinese chipmaker SMIC sees record profits despite U.S. pressure
Chart of the Day: Toll road operators move back into revenue fast lane
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