Caixin
Jun 22, 2021 09:20 AM
CX DAILY

CX Daily: China’s Sichuan to Shutter Crypto Mining in Sweeping Crackdown

Sichuan accounted for 10% of China’s crypto mining capacity in April 2020, behind only Xinjiang’s 36%.
Sichuan accounted for 10% of China’s crypto mining capacity in April 2020, behind only Xinjiang’s 36%.

Crypto mining /

Sichuan to shutter crypto mining in sweeping crackdown

Another major cryptocurrency mining hub in China is moving to kick miners out of its territory as part of a sweeping clampdown amid regulatory concerns over the industry’s huge energy consumption and potential financial risks.

Several documents signed by government agencies in southwest China’s Sichuan province circulated online in recent days outlining plans to shutter all crypto mining sites in the province. One of the documents set June 25 as the deadline to complete inspections and cut power supply to the operations. It listed names of 26 projects that have been inspected.

The Sichuan provincial energy bureau told Caixin Friday that the agency was still verifying the authenticity of the documents. But separate industry sources said they are genuine.

WMP /

Cover Story: The lagging overhaul of China’s $3.9 trillion bank WMP sector

Halfway through what’s supposed to be the final year of a transition to sweeping new rules covering asset management in China, the $3.9 trillion bank-based sector of the industry is deeply mired in a struggle to accomplish all it needs to by the end of 2021.

Wealth management products (WMPs) issued by banks, which account for a third of the $13 trillion industry, face the most dramatic transition under the new rules. While some of the WMP units newly created by banks under the regulations have made significant progress in revamping their businesses, sketchy practices remain, according to industry experts.

FINANCE & ECONOMY

REIT

Analysts said the REITs were well received because the projects they fund were screened by the authorities and are all of relatively high quality. Photo: VCG

REITs /

China’s fund markets mark new milestone as long-awaited REITs debut

China’s mutual fund markets reached another milestone Monday as the first publicly offered infrastructure-focused real estate investment trusts (REITs) made their debut on the Shanghai and Shenzhen exchanges more than a decade after the initiative was first proposed, marking the government’s latest efforts to encourage the nonstate sector to finance infrastructure spending.

REITs usually focus on commercial real estate investments, but the nine new trusts are involved in infrastructure projects in sectors including garbage disposal, biomass power stations, industrial parks, toll roads, and warehousing and logistics facilities. They raised a total of 30 billion yuan ($4.6 billion) and attracted subscriptions from 1.5 million investors.

Carbon futures /

China seeks to move up launch of carbon futures market, official says

The Guangzhou Futures Exchange will accelerate efforts to launch a carbon futures market, said Gao Li, a spokesperson of the China Securities Regulatory Commission (CSRC).

The CSRC plans to have the exchange conduct research and investigations and improve the trading rules for carbon futures, Gao said at a press conference (link in Chinese) Friday.

Covid-19 /

South China city to test all 8 million residents after delta variant found

Dongguan kicked off citywide Covid-19 testing Monday after two new infections with the delta coronavirus variant were reported over the weekend in the Guangdong province city.

A 30-year-old woman surnamed Li tested positive for Covid-19 Friday. She has the delta variant, which was first identified in India, according to the local health authorities in the southern metropolis of more than 8 million residents. Another patient, a 19-year-old male student surnamed Jia, had been in close contact with Li and was diagnosed with Covid-19 Sunday, the authorities said.

Related: China vaccination drive passes 1 billion dose mark

BUSINESS & TECH

618

E-commerce /

New Chinese brands sparkle in ‘6.18’ e-commerce marketing event

New domestic startups beat legacy foreign and hometown brands in hundreds of categories during this month’s mid-year “6.18” e-commerce marketing event, according to data from a major e-commerce platform.

In total, 459 brands that have been on the market for less than three years won sales in their segments on Tmall.com in the first 15 days of June, according to the e-commerce platform, which is owned by Alibaba Group Holding Ltd.

The 6.18 promotion centers on June 18 but typically stretches for weeks. Many of this year’s best performers came from domestic startups targeting young Chinese consumers’ evolving tastes — including those that make difficult lives easier.

Electronics /

Used electronics seller Aihuishou jumps 23% in NYSE debut

The share price of Aihuishou International Co. Ltd., a mobile phone recycling and second-hand sales platform, jumped by more than 20% on its first trading day on the New York Stock Exchange as the Chinese company embarked on a lucrative initial public offering (IPO).

The JD.com Inc.-backed enteprise’s American depositary shares (ADSs) soared by as much as 28% from their listing price of $14 when trading began Friday before settling back to close up 22.93% on the day at $17.21.

Swine fever /

Swine fever variants lead to mass outbreaks across China

New, difficult-to-detect variants of the African swine fever virus circulating in China have spread the disease to pig herds across the country this year, leading to rising incidents of mass infection on farms and stepped-up control measures to stop swine fever’s further spread into livestock supply chains.

Since late last year, provinces including Henan, Shandong, Hebei, Jiangsu and Guangdong, as well as the Guangxi Zhuang autonomous region, have reported new outbreaks. Farms have reported that infected pigs typically show only mild symptoms in the early stages but have a longer incubation period, making it difficult to diagnose the disease before mass infection spreads across farms.

Wines /

Australia to refer China to WTO over wine tariffs

Australia is taking China to the global trade arbiter over anti-dumping duties on its wines.

Australian Trade Minister Dan Tehan said he had consulted with Australian winemakers, and will refer China to the World Trade Organization (WTO) for dispute resolution to vigorously defend their interests.

Quick hits /

EV enthusiasm may have overpriced auto stocks

Editorial: Vocational education needs greater respect

Market mystified by energy-drink maker’s skyrocketing stock

Energy Insider /

Energy Insider: New rules to regulate commodity price indexes; power consumption jumps in southern China

Thanks for reading. If you haven't already, click here to subscribe.

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

Share this article
Open WeChat and scan the QR code