Caixin
Mar 04, 2021 09:36 AM
CX DAILY

CX Daily: What’s in Store for China’s Economy After the Pandemic

Economy /

Q&A: What’s in store for China’s economy after the pandemic

As 2021 is the first year covered by China’s new five-year plan, all eyes are on the country’s economic development and policy changes.

China’s top policymakers have pledged to maintain continuity in macroeconomic policies this year by not making any “sudden turns” amid the recovery from the pandemic.

In an interview with Caixin, Yang Weimin, a deputy director of the economic committee of the national committee of the Chinese People’s Political Consultative Conference (CPPCC), talked about China’s economic outlook for 2021, unwinding the country’s stimulus policies, expanding consumer spending and maintaining the manufacturing industry’s share of GDP. The CPPCC’s national committee is the country’s top political advisory body.

Antitrust /

China fines tech superstars’ group-buying platforms for ‘deceptive pricing’

China’s market regulator gave a slap on the wrist to group-buying platforms backed or run by Alibaba, Pinduoduo, Meituan, Didi Chuxing and Tencent for “deceptive pricing” Wednesday.

Alibaba-invested Nice Tuan, Didi’s Chengxin Youxuan, Pinduoduo’s Duo Duo Maicai, and Meituan Select all copped the maximum penalty of 1.5 million yuan ($232,000), while Tencent-backed Shixianghui was fined 500,000 yuan.

The regulator accused the firms of using their large capital reserves to “disrupt market order” through excessive price subsidies, and warned them not to burn money to grab market share in order to price gouge later.

FINANCE & ECONOMY

Two Sessions /

Two Sessions 2021: Chinese leaders gear up to release next five-year plan

Chinese lawmakers will congregate in Beijing later this week to review a key national plan that will guide policy through the next five years and beyond.

Officials from across the country will descend on the Great Hall of the People, a vast state palace on the western side of Tiananmen Square, to attend the annual political meetings known as the “Two Sessions.”

The term refers to the gatherings of the National People’s Congress, China’s legislature, which begins Friday; and the Chinese People’s Political Consultative Conference (CPPCC), which starts Thursday. The Two Sessions will conclude next week with the expected ratification of China’s 14th Five-Year Plan, which will run through 2025, as well as the approval of more distant national goals for 2035.

Wang Tao: What economic agenda will the Two Sessions set?

Confiscated criminal cash should go to central government, top China lawyer says

PMI /

Caixin services PMI adds to evidence of faltering economic recovery

Services activity in China grew at a slower clip and inflationary pressure mounted last month, a Caixin-sponsored survey showed Wednesday, adding to evidence that the economic recovery might be losing momentum as growth in manufacturing also reportedly slowed.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, declined to 51.5 in February from 52 the previous month, hitting the lowest level since April 2020. Readings above 50 indicate expansion.

The drop in the services index is in line with a slowdown in manufacturing expansion last month. The Caixin China manufacturing PMI, released Monday, declined to 50.9 from 51.5 in January. The Caixin China General Composite PMI, which covers both the manufacturing and services sectors, slid to 51.7 from 52.2.

Hong Kong /

Hong Kong Exchange’s new CEO wins regulatory approval

The Securities and Futures Commission of Hong Kong approved the appointment Tuesday of Nicolas Aguzin as the new chief executive officer of Hong Kong Exchanges & Clearing Ltd. (HKEX).

Aguzin, the CEO of JPMorgan Chase and Co.’s International Private Bank, will take office as chief of Hong Kong’s stock exchange May 24 for a term of three years.

He will replace Charles Li, also a former JPMorgan banker, who announced his resignation in May and left at the end of last year after a decade at the helm.

Hong Kong explores listings for blank-check entities

Green finance /

China works to refocus standards for green finance

China’s financial industry is on the hook to help address the nation’s role as the world’s top emitter of climate-changing greenhouse gases. Now it needs to sort out just what assets or investments will actually help achieve the national goal of carbon neutrality by 2060.

The China Financial Standardization Technical Committee is leading efforts to revise standards for green bonds, Caixin learned. Some industry participants suggest establishing a separate standard for climate bonds. At present, there is no unified international green finance classification standard, said Zhu Jun, director of the International Department of the People’s Bank of China.

Cover Story: The green finance challenge facing China’s banks

Quick hits /

UBS seeks to raise stake in China joint venture to 67%

Rise in capital inputs pushes up Caixin New Economy Index

Biden’s trade agenda emphasizes climate, pandemic, cooperation

BUSINESS & TECH

huolala

A woman surnamed Che died from severe head injuries that occurred when she hit the ground after falling from the moving van. Photo: VCG

Logistics /

Police find no evidence woman who fatally fell from Lalamove van was attacked

A 23-year-old woman who sustained fatal injuries after falling from the passenger’s side window of a hired moving van had argued with the driver before the incident, but there were no signs of any physical attack, according to a police report released Wednesday.

The incident involving a van operated by the service Lalamove, or Huolala in Chinese, in the Central China city of Changsha captured national headlines shortly after it occurred last month due to the unusual circumstances and implication of a threat to women’s safety. The case also superficially resembled two high-profile murders involving female passengers who were raped and killed by male drivers while using Didi Chuxing car services three years ago.

In the Lalamove case, a woman surnamed Che died from severe head injuries that occurred when she hit the ground after falling from the moving van. The van’s driver, surnamed Zhou, was detained on charges related to loss of life.

Macao /

Macao sees nascent rebound in gambling but still faces stacked deck

Just as it rebounds from its worst-ever downturn, the world’s biggest gambling hub of Macao is bracing for more difficulties as Beijing rolls out changes to limit cross-border activities and casino operators get set to renew their licenses.

The city’s casinos bounced back to post 7.3 billion patacas ($915 million) in revenue last month, up 36% year-on-year, marking the first growth since September 2019, according to data from the city’s Gaming Inspection and Coordination Bureau.

But the figure is still down nearly 70% from February 2019, indicating a full recovery is still a long way off. In February last year, the city ordered all entertainment venues including casinos to suspend business for 15 days, kicking off a long and painful period for the group.

Patent /

China beats U.S. in patent filings for second straight year

China captured the top spot in 2020 among international patent applications for the second consecutive year, a United Nations ranking released Tuesday shows, demonstrating once again how Asia is leading the tech innovation in the new normal.

Chinese applicants submitted 68,720 patent requests last year, up 16% from 2019 despite the coronavirus pandemic, according to data from the World Intellectual Property Organization (WIPO). China's Huawei Technologies, the world's leading telecommunications equipment manufacturer, remained the top applicant for the fourth straight year. The U.S. remained in second place, with filings inching up 3% to 59,230.

Corruption /

Another executive at China’s largest oil field probed for graft

A senior official at the Changqing oil field of state-owned China National Petroleum Corp. (CNPC) was placed under investigation in the latest of a series of graft scandals that have haunted the country’s largest oil field for nearly a decade.

Tang Xin, chief coordinator and head of the production operation department of CNPC’s Changqing oil field, was detained in mid-January, separate sources told Caixin. Investigators raided Tang’s home and found millions of yuan of cash allegedly obtained from bribes, sources said.

Quick hits /

Shaanxi’s new ‘super large’ coal mine ticks another regulatory box

Geely urges scrapping of costly ban on rail transport of electric vehicle batteries

BAIC BluePark to debut first electric vehicle powered by Huawei lidar technology in April

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