CX Daily: China Forces Drugmakers to Cut Prices 51% to Get on Insurance List
China forces drugmakers to slash prices 51% to get on insurance list
Drugmakers agreed to cut prices on some of their newest drugs in China by an average of 51% to become eligible for reimbursement under government-backed insurance plans.
Some of most expensive drugs weren’t included in the annual negotiations for inclusion on the national reimbursement list, a signal to drugmakers from the National Healthcare Security Administration (NHSA), said Xiong Xianjun, director of the NHSA’s Medical Service Department, at a press conference Monday in Beijing.
Most of China’s 1.4 billion population are covered by state-run basic medical insurance systems, which can provide 60% to 90% reimbursement for basic medical costs. The state insurance programs mainly cover services in public hospitals and common diseases. The list of medicines covered by the programs has been updated annually with new entries since 2017.
FINANCE & ECONOMY
On Monday, the value of outstanding securities borrowing on the Chinese mainland stood at 129 billion yuan.
China sees first margin financing, securities borrowing deals under QFII program
China on Tuesday saw its first margin financing and securities borrowing deals by qualified overseas investors, marking a significant step forward in the country’s financial opening-up.
Using the recently revamped Qualified Foreign Institutional Investor (QFII) program and its yuan-denominated sibling, the Renminbi Qualified Foreign Institutional Investor (RQFII) program, investors who sealed margin financing and securities borrowing deals Tuesday included the Swiss banking giant UBS AG.
On Nov. 1, China eased restrictions within the QFII and RQFII programs to allow overseas institutional investors access to the country’s capital market, giving them more investment options, including margin financing and securities lending and borrowing.
China tightens corporate bond disclosure rules
China’s top bond regulators released new rules unifying information disclosure requirements for bonds issued by nonfinancial firms after the surprise default of a state-owned coal mining company sent shock waves through the world’s second-largest bond market.
The rules, which take effect May 1, specify essential documents to be disclosed for issuing bonds and major matters that issuers need to disclose during the term of a bond, according to a statement (link in Chinese) jointly released Monday by the country’s central bank, top economic planner and top securities regulator.
The statement also clarified the information disclosure responsibilities of bond issuers, underwriters, ratings agencies and other related parties.
Few people in China have coronavirus antibodies, study shows
People in China are extremely unlikely to have antibodies against the novel coronavirus, although those in areas affected by the initial outbreak early this year have a significantly higher probability, according to the country’s top disease control body.
The low rates of coronavirus antibodies among the general population reflect the country’s success in containing its Covid-19 epidemic, the China Center for Disease Control and Prevention (China CDC) said Monday in an online statement.
The organization said it conducted the first study on the prevalence of coronavirus antibodies in large groups of people in both the center of the outbreak and less-affected areas. Because antibodies are produced in response to infection and form specific shapes to fight particular invaders, they indicate that a person has previously contracted certain pathogens.
Legendary Chinese pianist Fou Ts’ong dies from Covid-19
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BUSINESS & TECH
The Mi 11 entered a presale phase Monday night before becoming available to the market on Jan. 1, founder and CEO Lei Jun said at the launch event. Photo: Xiaomi
Xiaomi rushes out new smartphone to grab hobbled Huawei’s market share
Xiaomi Corp. launched its latest flagship smartphone two months ahead of schedule, accelerating its drive to grab more market share in China from sanctions-hobbled Huawei Technologies and Huawei's recently spun off Honor budget brand.
The world’s No. 3 smartphone maker introduced its new high-end Mi 11 model Monday, 10 months after the February debut of its predecessor, the Mi 10. Xiaomi has usually waited about a full year between the launch of each new model in the series.
Xiaomi’s biggest domestic competitor, Huawei, is reeling from the effects of a crippling U.S. campaign that has cut off supplies of handset chips made with American technology.
Online tutor Xueba100’s executives go truant as company collapses
Private one-on-one tutoring company Xueba100.com appears to have collapsed, based on its sudden halt of most operations, leaving thousands of employees jobless and owed back wages, and students and parents seeking refunds for hours of prepaid tuition.
Just two months ago, another private tutoring company, Youwin Education, similarly crumbled, prompting hundreds of parents to turn up at the company’s Beijing headquarters to demand their money back.
The failures spotlight the difficulty of running profitable one-on-one online tutoring services and more broadly the cutthroat state of competition in China’s vibrant online education sector.
Educator TAL to raise $3.3 billion in private placement
Tesla’s dominant position in China could be threatened next year
Tesla Inc. is coming to the end of its first year selling China-made cars with a commanding position in the world’s biggest electric-vehicle market, but Elon Musk shouldn’t rest on his laurels.
While Tesla regularly topped monthly premium EV sales tallies this year, helped by the sedans churned out from its multibillion-dollar plant opened to much fanfare in Shanghai last December, 2020 was also marked by rivals catching up. In 2021, the breadth of the competitive attack that Tesla faces will be greater than ever.
Whether Tesla can defend its lead in China will be key to its wider growth and earnings trajectory. While still in its infancy, China’s electric-car market dwarfs that of other countries, and the government is intent on further expansion amid commitments to reduce fossil-fuel use.
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JD.com invests $103 million in produce wholesaler Dili Group
JD.com will spend HK$798 million ($103 million) to acquire a 5.37% stake in a produce wholesale market operator as part of the e-commerce giant’s effort to build its fresh-food supply system.
A wholly owned subsidiary of JD.com entered an agreement to subscribe for 478 million shares of Hong Kong-listed China Dili Group at HK$1.67 a share, according to a regulatory filing with the Hong Kong Stock Exchange.
The investment will make JD.com the second-largest shareholder of Dili Group, which operates 10 agricultural produce wholesale markets in China. The subscription price represents a 16.5% discount to Dili Group’s Dec. 24 closing price of HK$2.
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