Caixin
May 20, 2021 09:08 AM
CX DAILY

CX Daily — Exclusive: Huarong Gets New President Amid Pressure on Bonds

Huarong /

Exclusive: Huarong gets new president amid pressure on bonds

China’s embattled bad-asset manager China Huarong Asset Management Co. Ltd. is getting a new president, filling a nearly six-month vacancy as the state-owned company’s bonds come under pressure amid closer scrutiny by investors.

Liang Qiang, a former deputy Communist Party chief and executive director at China Great Wall Asset Management Co. Ltd., was named Huarong’s next president and will start his duties soon, Caixin learned from people familiar with the matter.

Huarong’s domestic and offshore bonds fell again Tuesday following a media report that China is planning an overhaul of the company that will lead to significant losses to Huarong’s domestic and foreign bondholders.

Huawei /

Huawei appoints veteran phone executive to lead smart auto unit

Chinese telecommunications giant Huawei Technologies Co. Ltd. reshuffled its top executive leadership by appointing a veteran of its core smartphone business to head its smart car unit as the company shifts focus to cloud computing and automobiles.

Yu Chengdong, who served concurrently as CEO of Huawei’s consumer electronics business and Huawei Cloud, will lead the company’s smart vehicle business solutions unit, the company saidTuesday in an internal memo seen by Caixin.

Zhang Pingan, president of the cloud business unit, will take over Huawei Cloud’s chief executive role, while Yu will remain head of consumer electronics, which includes smartphones, according to the memo.

FINANCE & ECONOMY

Mining

Inner Mongolia's government set up a platform for people to report cryptocurrency mining projects so they can be shut down. Photo: VCG

Cryptocurrency /

China hits cryptocurrencies with double whammy

The cryptocurrency universe was hit by two dollops of bad news this week as authorities in the world’s biggest Bitcoin mining nation intensified a crackdown on the digital asset.

The Inner Mongolia autonomous region, which recently started a campaign to stamp out cryptocurrency mining to reduce carbon emissions, said (link in Chinese) Tuesday it set up a platform for residents to report on illegal projects.

The same day, three financial self-regulatory bodies issued a joint notice (link in Chinese) banning financial institutions and payment companies from directly or indirectly providing cryptocurrency services to customers, including accepting the currency as payment.

Bitcoin’s obstacles mount amid China cryptocurrency warning

Investment /

Snowball derivatives offer a risky bet on stock market stability

China’s stock markets have been rather tepid in recent months, increasing the popularity of an investment product that can offer healthy returns for those willing to bet on stability.

However, the products, which bring decent returns at best but crushing losses at worst, have some industry insiders worried.

The so-called snowball (雪球) products are high-risk barrier option (障碍期权) contracts whose value is based on an underlying asset, and an ideal payoff is conditional upon the asset’s price remaining within a certain range.

Covid-19 /

China rolls out single-dose Covid-19 vaccine in five eastern cities

China has started administering a single-dose adenovirus vector vaccine in at least five eastern cities, including the financial capital Shanghai as the country speeds up its immunization drive following a resurgence of coronavirus cases.

Starting earlier this month, residents in Shanghai and four cities in the neighboring province of Zhejiang, including Wenzhou, Shaoxing, Quzhou and Taizhou, were able to receive the Ad5-nCoV vaccine — also known as Convidecia — which was co-developed by the Chinese military and Tianjin-based biotech company CanSino Biologics Inc. (6185.HK), according to local media reports.

Zhang Wenhong: The roadmap to defeat the Covid-19 pandemic

Quick hits /

China’s $2.14 trillion of bonds coming due unnerves foreign investors

BUSINESS & TECH

1

Corruption /

Corruption dragnet snares another top official at regional steelmaker

A fourth top official at steelmaker Kunming Iron and Steel Group Co. Ltd. was caught up in an anti-corruption dragnet at the company, spotlighting the weak corporate governance often seen at big state-owned enterprises in China’s less-developed areas.

Dong Ruizhang, a vice president and member of the company’s Communist Party standing committee, was being investigated for “serious violations of discipline,” a phrase that almost always refers to corruption, according to a Monday announcement on the website of the party’s disciplinary body in Southwest China’s Yunnan province where the company is based.

Simultaneously, the Central Commission for Discipline Inspection (CCDI) said 25 managers from the company admitted to having “problems” but were either not punished or received light penalties.

High-speed rail /

Southeast Asia’s first high-speed rail project three-quarters complete

Indonesia’s first high-speed rail project, a 142 kilometer (88 mile) line being built by a Chinese-led consortium, is 73% complete and could start operation as soon as late next year, Indonesian President Joko Widodo said Tuesday.

During a visit to inspect the project, Widodo said he hoped Indonesia could acquire some of the China-developed technology being used to build the line for the construction of future lines in Southeast Asia’s most populous nation, China’s official Xinhua News Agency reported.

The line will connect the Indonesian capital of Jakarta with the city of Bandung, capital of West Java province.

Videos /

IQiyi’s losses narrow as streaming platform arrests membership decline

The share price of iQiyi Inc. climbed by more than 10% Tuesday after the Chinese video-streaming platform posted better-than-expected first-quarter earnings.

The Nasdaq-listed company's revenue rose 4.16% year-on-year to 7.97 billion yuan ($1.24 billion), according to its unaudited earnings report released before the market opened. The figure exceeded the average of analysts’ estimates, which was 7.67 billion yuan. The Netflix-like company more than halved its net loss to 1.27 billion yuan from 2.88 billion yuan in the equivalent period last year, the report said.

Space station /

China plans to complete space station within 2 years

China plans to complete construction of its first space station within two years, with a number of flight missions scheduled following the launch of the core module, said Hao Chun, head of the China Manned Space Engineering Office.

The announcement came Tuesday as the Tiangong space station’s core module, Tianhe, or “Heavenly Harmony,” completed its in-orbit testing of the single-module flight phase after being sent into orbit late last month.

Quick hits /

China’s shipbuilding giants set to combine

China Mobile aims to become first red-chip company on China’s main board

Energy Insider: China’s coal production on the rise as NDRC calls for market approaches to reduce pollution

Today's CX Daily was compiled and edited by Kevin Guo (xinguo@caixin.com).

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