CX Daily: U.S. Blacklists Chinese State-Run Electronics Giant Over Venezuelan Collaboration
U.S. blacklists state-run electronics giant over Venezuelan collaboration
The U.S. added state-run China National Electronic Import-Export Co. (CEIEC) to a growing blacklist of Chinese companies that are banned from buying American products, citing the company’s ties to a Venezuelan government that has been at loggerheads with Washington for years.
The move marks a shift in an ongoing U.S. policy by blacklisting a company for reasons other than national security. Previously, Washington mostly cited national security as its main reason for adding a steady stream of Chinese high-tech enterprises to an “entity list” that required special licenses for them to keep buying from U.S. suppliers.
In the latest announcement, the U.S. accused CEIEC of providing technical products and assistance to the administration of Venezuelan President Nicholas Maduro, including software, training and other technical expertise. It singled out the Chinese company for its work with the Venezuelan National Telephone Co., the country’s main telecom carrier that Washington accuses of frequently blocking access to internet sites run by independent media and Maduro’s political opponents.
FINANCE & ECONOMY
A number of local regulatory officials have already been placed under investigation for their roles in the financial wrongdoing that led to Baoshang Bank’s collapse.
Exclusive: Probe of failed Baoshang Bank shifts focus to top executives
Several top executives at failed regional lender Baoshang Bank Co. Ltd. have been detained as part of an investigation by the government of the Inner Mongolia autonomous region into the bank’s collapse, sources with knowledge of the matter told Caixin.
A task force set up recently to focus on identifying individuals responsible for the lender’s problems has interviewed more than 100 employees and conducted detailed investigations of more than 10 top executives, more than half of whom have been detained, the sources said.
Li Xianping, former Communist Party secretary and chairman of the board of supervisors of Baoshang Bank, is one of the key figures under investigation and has been handed over to the police, Caixin learned from sources with knowledge of the matter. A source inside the bank said Li was found to have more than 10 properties in Beijing with a combined value running into hundreds of millions of yuan.
Green bonds /
HKEX launches platform to promote disclosure on green bonds
Hong Kong Exchanges and Clearing Ltd. (HKEX) launched its Sustainable and Green Exchange (STAGE) Thursday as Asia’s first multi-asset sustainable investment product platform, supporting fast-growing global demand for sustainable finance.
The STAGE platform currently is only an online product repository, providing information on issuers’ sustainable investment products, rather than an exchange where such products are traded.
“STAGE will connect market participants, issuers and investors, providing a one-stop shop for reliable green data and products, helping to drive growth potential, transparency and access to Asia’s exciting green and sustainable financial market,” said Wilfred Yiu, HKEX’s head of markets.
Exclusive: Defaulting coal mining company’s debt restructuring plan faces creditor backlash
Coal mining company Wintime Energy Co. Ltd. Monday released a debt-for-equity swap proposal as part of a draft restructuring plan that has faced a significant creditor backlash, knowledgeable sources told Caixin.
As of Nov. 22, a total of 714 creditors reported that Wintime owed them 49.8 billion yuan ($7.6 billion), according to Wintime’s filing (link in Chinese) with the Shanghai Stock Exchange.
In a preliminary review, Shanghai-listed Wintime confirmed about 36.4 billion yuan of the debt, 30.9 billion yuan of which was categorized as unsecured, according to the draft restructuring plan seen by Caixin. Some of the unsecured debt would be swapped for equity, which means creditors would exchange the debt they are owed for an equity stake in Wintime, according to the plan.
China names two medical experts as provincial party chiefs
China appointed two medical experts as the top Communist Party leaders in two provinces, showing that the government increasingly values officials with public health expertise as the country continues to fight the Covid-19 pandemic.
Yin Li, 68, currently Sichuan province governor and a health professional with diverse international experience, was named the party leader of the southeastern coastal province of Fujian. Hainan province governor Shen Xiaoming, a pediatrics expert, was appointed party leader of the nation’s southernmost island province.
Quick hits /
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BUSINESS & TECH
A Long March 5 rocket carrying the Chang’e 5 lunar probe blasts off on Nov. 24 from the Wenchang Space Launch Center in Wenchang, South China’s Hainan province.
China’s moon probe lands successfully
China successfully landed a probe on the moon as part of a mission to collect the first lunar samples since the 1970s, the country’s space agency said Tuesday.
The Chang’e-5 spacecraft touched down on the lunar surface at just after 11 p.m. Beijing time Tuesday, according to the official Xinhua News Agency, which cited the China National Space Administration.
The landing concludes the probe’s 112-hour journey from Earth, Xinhua said. Chang’e-5 aims to bring back rocks and soil from the lunar surface so that scientists can learn more about how the moon formed.
Huawei’s 5G deal with Indonesia spearheads its Southeast Asia push
Largely shunned in the West, Huawei Technologies ramped up its activities in Southeast Asia where governments have maintained a neutral economic stance amid tensions between the U.S. and China.
The Chinese telecommunication equipment leader recently entered an agreement with Indonesia to develop talent in 5G technology and related fields. The company will assist in training 100,000 people to become proficient in digital technology, such as in the cloud and 5G sectors. Huawei will deploy its internal know-how in employee training, based on the memorandum of understanding. For Indonesia, the memorandum is the first of its kind that the government has entered into.
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After landlords and tenants demand cash from rental giant, workers join the fray
Besieged online rental giant Danke Apartment could be facing a new source of pain, with employees telling Caixin they plan to take the company to court over unpaid wages.
With a business model based on rental arbitrage that has been compared to WeWork, the money-losing business is accused of failing to make monthly and quarterly payments to the landlords from which it rents properties, even after it encouraged tenants to pay rent up front using long-term loans from a partner bank.
The upshot, according to security staff at Danke’s Beijing headquarters, is that some 300 disgruntled landlords and tenants have been showing up each day demanding overdue rent, refunds and compensation.
JD raises $3.5 billion in biggest Asia health-care IPO
JD Health International Inc. raised HK$27 billion ($3.5 billion) after pricing Asia’s biggest health-care initial public offering at the top end of a marketed range.
The unit of Chinese e-commerce operator JD.com Inc. priced its sale of 381.9 million shares at HK$70.58 apiece, according to terms for the deal obtained by Bloomberg. The company is due to start trading Dec. 8 in Hong Kong.
The IPO is also the largest of this year’s first-time share sales in Hong Kong, excluding the secondary listing by JD Health’s parent company in June, according to data compiled by Bloomberg. It values the medical unit at $28.5 billion, according to the terms.
Quick hits /
Beijing drops plan to criminalize criticism of Chinese medicine
China State Grid sees new coal plant restrictions after 2026
Top maker of electric-car charging stations gears up for Shenzhen IPO
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