Caixin
Jun 03, 2021 09:20 AM
CX DAILY

CX Daily: The $15 Billion Chinese Fast Fashion App You’ve Never Heard Of (Part 1)

Fast fashion /

In Depth: The $15 billion Chinese fast fashion app you’ve never heard of (Part 1)

Karen Vera, 20, used to buy her clothes from well-known fast fashion chains like Zara and H&M, or online retailers like Asos.

These days, the New Jersey college student is more likely to turn to a rapidly growing Chinese company that few people over 30 have heard of.

The platform, Shein, is arguably the most disruptive entrant into the global fast-fashion industry in decades, challenging the business models of its Western rivals. The company targets young women and teenage girls through its website and mobile app, selling a far wider range of trendy clothes than its competitors at a fraction of the price.

Covid-19 /

Guangzhou’s new Covid cases are more transmissible, less obvious, frontline doctor says

The Covid-19 cases in the recent flare-up in Guangzhou are more transmissible than cases found early in the pandemic, and more visible symptoms are taking longer to appear, according to a frontline doctor in the southern Chinese metropolis.

Cai Weiping, chief infectious disease specialist at Guangzhou Eighth People’s Hospital, which is handling the city’s Covid cases, told Caixin that the recent cases have a much higher viral load than those found in early 2020, which means it is passed more easily from person to person.

Related: South China Covid-19 outbreak cancels flights, slows seaborne freight handling

Hong Kong turns to carrot and stick to boost sluggish vaccination drive

Chinese vaccines fall behind in going global, former CDC chief says

FINANCE & ECONOMY

1

China’s benchmark deposit rates remain the cornerstone of its system for steering how much interest banks pay deposit holders. Photo: VCG

Deposit rates /

Exclusive: China is likely to lower cap on banks’ deposit rates

China plans to change how it sets the ceiling on banks’ deposit rates, possibly leading to a lower cap, knowledgeable sources told Caixin.

The move marks Beijing’s latest effort to ease fierce competition for deposits among banks, which previously forced some to raise lending rates, clashing with the government’s initiative to boost the economy by lowering businesses’ borrowing costs.

Under a new plan, the upper limit of deposit interest rates will be set by adding a certain number of basis points to the central bank’s benchmark deposit rates, rather than multiplying the benchmark rates by a specific number, the sources said.

China-U.S. /

Liu He and Janet Yellen discuss China-U.S. economic relationship

China’s Vice Premier Liu He spoke with U.S. Treasury Secretary Janet Yellen via video link Wednesday about the relationship between the world’s two largest economies.

The two sides exchanged views on the state of macroeconomy and on cooperation between the U.S. and China, as well as how to work together with other countries, the state-run Xinhua News Agency reported.

Loans /

China steps up pressure on financial institutions to limit property lending

China’s banking regulator is stepping up pressure on financial institutions to control the growth of real estate loans after it imposed a cap on property lending by big banks in December, according to an official of the China Banking and Insurance Regulatory Commission's (CBIRC).

Some medium to small regional banks are still seeking to gain market share while the big banks are reducing outstanding property loans as a proportion of total loans in compliance with the December order, Liu Zhongrui, an inspector at the CBIRC statistics department, said Tuesday in a press briefing.

Yuan /

Chart of the Day: Hong Kong’s yuan deposits grow on appreciation-induced attraction

Yuan deposits in Hong Kong rose to the second-highest level in about five years in April, boosted by the currency’s appreciation against the U.S. dollar and the growing internationalization of the yuan.

Deposits denominated in the yuan in Hong Kong, a major offshore market for the Chinese currency also known as the renminbi, rose to 782 billion yuan ($122.6 billion) at the end of April, the second-highest level since February 2016 after January’s 798 billion yuan, according to data released Monday by the Hong Kong Monetary Authority, the city’s de facto central bank.

Related: China is digging deep into its currency toolkit to manage yuan

Quick hits /

China seeks to strengthen money laundering law with higher fines, broader scope

BUSINESS & TECH

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People try out Huawei smartphones at a HarmonyOS launch event on Wednesday in Shanghai. Photo: VCG

Huawei /

Embattled Huawei pins hopes on self-developed challenger to Android, iOS

Is the world ready for another major smartphone operating system to compete with the dominant pair of Google’s Android and Apple’s iOS?

Embattled Chinese smartphone-maker Huawei Technologies hopes the answer is “yes” as it prepares to unveil the first models using its homegrown Harmony operating system at an event late Wednesday. The company is making the move largely out of necessity, following U.S. sanctions that have cut off its access to many of the most important features on the Android system it used up until now.

But the company will face a long uphill battle, and is following in a trail that has claimed casualties in the likes of software titan Microsoft and former leading cellphone maker Nokia.

Tutoring /

China fines 11 tutoring companies $4.94 million for fraud and false ads

China’s market regulator fined 11 tutoring companies 31.5 million yuan ($4.94 million) for false advertising and pricing fraud as authorities tighten the screws on the country’s after-school training industry.

New York-listed New Oriental Education & Technology Group Inc., TAL Education Group and OneSmart International Education Group Ltd. and Hong Kong-listed Scholar Education Group were among the companies penalized.

Batteries /

Battery maker CATL tops 1 trillion yuan in market cap

Chinese battery maker Contemporary Amperex Technology Co. Ltd. (CATL) topped 1 trillion yuan ($157 billion) in market cap Monday as the electric vehicle boom drives up battery demand.

CATL closed at 434.1 yuan a share Monday, giving it a market value of nearly 1.01 trillion yuan. It was the first company on the tech-focused ChiNext board in Shenzhen to reach that mark and the eighth in the entire Chinese mainland stock market. CATL closed 2% lower Tuesday at 425.34 yuan.

CATL is China’s largest electric vehicle battery maker, accounting for more than 50% of the market. It also topped the global market for four consecutive years.

Tencent /

Tencent’s Honor of Kings is hardly honorable, says youth group

Tencent may rein over China’s gaming market with its hugely popular Honor of Kings title, but a major civic group thinks the company is hardly honorable.

The Beijing Teenagers Law Aid and Research Center said Tuesday it is suing Tencent to “promote the better implementation of China’s newly revised Law on the Protection of Minors.” The law came into force the same day as the announcement, which also happened to be International Children’s Day.

Quick hits /

JD.com debuts chartered cargo flights to Thailand

Ant Group’s investment in Myanmar fintech Wave Money fails to materialize

Energy Insider /

Energy Insider: China tightens environmental scrutiny of polluting projects; world’s second-largest hydropower station closer to completion

Hot Topics /

Lawmaker floats three years of maternity leave, first human case of bird flu, and the dawn of ‘flexible’ retirement

Sinovac vaccine gets emergency WHO approval, a Mexican cartel’s war on police, South Korean youths’ views on marriage

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

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