CX Daily: Saving the Lonely Skywalkers
Cover Story: Saving the lonely skywalkers
In 2018, the Skywalker hoolock gibbon was listed among the world's 25 most endangered primates. According to a primatologist’s studies, there are fewer than 150 Skywalkers living in China, mainly in the tropical rainforests of Yunnan. The population is less than 10% of the number of wild giant pandas. There are also a small number of clusters in Myanmar, but their situations are largely unknown.
The remaining Skywalkers in China live in separate clusters with impassable barriers between them created by human activities. Many family groups and individuals are isolated, making it more difficult for them to interbreed and threatening the future of the species, experts said.
Scientists and preservationist are trying various methods using modern technologies to help isolated Skywalkers, which are usually monogamous and take years to breed offspring, to expand their living territory and find new partners. However, the clock is ticking for rescuing the Skywalkers from extinction, forcing scientists into a race against time.
JD Logistics gets its Hong Kong IPO back on schedule
More than two months after making its first public filing for a Hong Kong IPO, the logistics arm of e-commerce giant JD.com Inc. filed an updated prospectus that showed it earned its first-ever profit even as competition heated up in this year’s first quarter.
A source close to the deal told Caixin the listing for JD Logistics Inc. ran into some headwinds last month after sector leader S.F. Holding Co. Ltd. issued a surprise announcement saying it swung to a massive loss in this year’s first quarter from a profit a year earlier. S.F.’s Shenzhen-listed shares lost about 20% of their value in the weeks since that announcement.
FINANCE & ECONOMY
Major Chinese state firms told to keep a closer eye on their derivatives trading
China major nonfinancial state-owned enterprises (SOEs) were ordered to take a hard look at their derivatives-trading subsidiaries to make sure they can handle risks and afford the losses of buying and selling risky financial instruments.
The State Council’s State-owned Assets Supervision and Administration Commission (SASAC), which oversees China’s central government-administrated nonfinancial SOEs, said Friday in a statement (link in Chinese) that some of the SOEs had not performed thorough enough examinations before approving the financial derivatives trading activities of their subsidiaries.
This lax oversight left these companies in violation of SASAC rules (link in Chinese) released last year. The rules ban the subsidiaries of the SOEs it regulates from trading financial derivatives if they have an unusually high liabilities-to-assets ratio and have reported losses for each of the previous three years.
Patchy risk disclosure earns Shanghai Pudong Development Bank a slap on the wrist
Shanghai Pudong Development Bank Co. Ltd. (SPD Bank), one of China’s largest joint-stock commercial banks, has been fined 7.6 million yuan ($1.2 million) for breaching regulatory requirements when selling investment products.
The fine was announced in a statement (link in Chinese) released Friday by the China Banking and Insurance Regulatory Commission (CBIRC)’s Shanghai bureau, and followed mounting investor complaints about the bank. The regulator did not specify SPD Bank’s misconduct or the products involved.
The fine came two weeks after the CBIRC accused the bank of failing to fully disclose the risks of a private placement investment product to investors.
Tencent-backed insurtech firm Waterdrop aims to raise up to $360 million in U.S. IPO
Waterdrop, a Chinese insurance technology startup backed by Tencent, is planning to raise as much as $360 million in an IPO on the New York Stock Exchange as U.S. securities regulators impose tougher auditing standards on U.S.-listed foreign businesses.
The Beijing-based company is selling 30 million American depositary shares (ADSs) priced between $10 and $12 apiece, according to an updated prospectus filed Friday with the U.S. Securities and Exchange Commission (SEC).
Founded in 2016, Waterdrop runs an online platform connecting insurance companies with users as well as a medical crowdfunding platform that aims to help patients with severe illnesses raise money to pay hefty medical bills.
China’s policy banks miss deadline to file last year’s annual reports
China’s three policy banks, the China Development Bank (CDB), the Agricultural Development Bank of China (ADBC) and the Import-Export Bank of China, all missed Friday’s Ministry of Finance deadline (link in Chinese) to file their 2020 annual reports.
Another policy financial institution, China Export & Credit Insurance Corp., also known as Sinosure, missed the deadline as well.
Quick hits /
Strong earnings season fails to lift China’s range-bound market
China Huarong seeks to reassure investors that it can repay debt
Fidelity slashes Ant Group valuation after China’s tech crackdown
BUSINESS & TECH
HNA units’ $15 billion in losses show the challenges in store for restructuring China’s profligate conglomerates
HNA Group Co. Ltd.’s 13 listed companies reported combined net losses amounting to nearly 100 billion yuan ($15 billion) for 2020 as they set aside enormous sums to absorb potential losses from the Chinese conglomerate’s bankruptcy restructuring.
The sheer size of the reported losses offers a clearer picture of the challenge that HNA’s restructuring poses to government efforts to deal with the hidden financial risks built up by its sprawling private conglomerates. The single bankruptcy restructuring case, which covers HNA and 320 of its related companies, is the culmination of the years that the conglomerate spent trying to crawl out from under the heap of debt it amassed during a global buying binge that at one point swelled its total assets to 1.2 trillion yuan.
State rail operator blamed for Beijing Labor Day chaos
Passengers at one of China’s busiest railway stations were left stranded at the weekend after strong winds caused a power outage just as throngs of residents tried to leave the capital for the Labor Day holiday.
On Saturday — the first day of a national holiday that runs until May 5 — more than 30 high speed railway trains from Beijing to Wuhan, Xi’an, Changsha and further afield were delayed, and a further 16 were canceled.
The culprit was strong winds in Dingzhou, a city in Beijing’s bordering Hebei province, which led to a power failure that caused “various delays” on the Beijing-Guangzhou high-speed railway — a vital route that spans China’s east coast — the Beijing West Railway Station operator said in a short Weibo post (link in Chinese) around lunchtime Saturday.
Illegal fuel trade probe detains six employees of BP’s South China venture
Police detained six employees of a BP PLC (NYSE: BP) joint venture in South China as part of an investigation into suspected illegal fuel trading.
The detentions, made in mid-April but revealed here for the first time, were among hundreds across the fuel supply chain of the southern province of Guangdong made during a probe into illicit sales of light cycle oil (LCO), a lower-taxed fuel sometimes blended with diesel to make it go further.
Scandal-hit TV, film producer in hot water for faulty financial reporting
Film and TV production company Beijing Jingxi Culture and Tourism Co. Ltd. will be slapped with an “ST” label, signifying “special treatment,” to flag the risk to investors after its stock resumes trading on May 6, according to its Friday filing (link in Chinese) to the Shenzhen Stock Exchange.
Quick hits /
Kao recruits web influencers to sell cosmetics in China
Which money-losing electric-car makers have tied up with Huawei?
Editorial: Protecting personal information needs to become China’s new normal
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