CX Daily: Hong Kong-Mainland Deal Opens Door to Solving China’s Cross-Border Bankruptcy Issues

Bankruptcy /

In Depth: Hong Kong-mainland deal opens door to solving China's cross-border bankruptcy issues

Just after South Korea’s Hanjin Shipping Co. Ltd. filed for bankruptcy protection in its home country in August 2016, the company petitioned courts in 43 countries to try to prevent creditors from seizing its vessels.

The chaotic, high-profile demise of Hanjin — one of the shipping industry’s biggest collapses — was among the incidents that have prompted repeated calls from Chinese academics and judges for China to create a system for cross-border bankruptcies involving companies and assets both inside and outside the country.

The Chinese mainland took a step toward establishing such a system last month with the signing of an agreement with Hong Kong on cross-border bankruptcy and restructuring proceedings that aims to give liquidators better access to information needed to maximize the value of recovered assets.

Elephants /

Wild elephant trek traced back to shrinking habitat, experts say

A herd of 14 wild Asian elephants is still on the move in Southwest China’s Yunnan province, heading 1.9 kilometers northeast from Saturday to Sunday, local authorities said, as their unusual journey triggers online discussion and experts agree that loss of habitat is a motivating factor.

Surveys and monitoring in recent years show that the Asian elephants’ traditional habitat has become small and patchy, and rubber plantation expansion has caused them to hunt for better grounds.

FINANCE & ECONOMY

Li Bo, deputy governor of the People's Bank of China, will be the third deputy managing director of the IMF from China. Photo: VCG

IMF /

PBOC official tapped to be next IMF deputy managing director

The International Monetary Fund (IMF) proposed making People’s Bank of China (PBOC) Deputy Governor Li Bo its next deputy managing director, about two months after he took his current position at the central bank.

Li’s appointment, set to take effect Aug. 23, will fill the vacancy soon to be left by Zhang Tao, who plans to step down Aug. 22 after a five-year tenure, according to an IMF statement Monday.

Li, 48, is a financial industry veteran who has spent 14 years in several positions at China’s central bank. He left the PBOC in 2018, and the following year was named vice mayor of Chongqing municipality amid a wave of appointments of financiers and financial regulatory officials to senior local government positions.

IPO /

Futures trading software-maker seeks Shenzhen IPO

Chinese derivatives trading software provider Webstock Information Systems Co. Ltd. applied for an IPO on Shenzhen’s Nasdaq-style ChiNext board, its second attempt to list shares there.

The Shenzhen Stock Exchange received Webstock’s listing application Friday. The company plans to issue as many as 13.34 million shares, or at least 25% of its expanded total of shares, according to the company’s initial prospectus (link in Chinese) released on the exchange’s website.

Chinese regulators are accelerating efforts to expand the derivatives market to meet investors’ growing demand for hedging tools.

Central bank /

China’s economy is stabilizing and improving, PBOC says

China’s central bank provided a more positive outlook of the economy, saying it’s showing more stability and improvement even though domestic and global risks remain.

The People’s Bank of China will step up its coordination with global economic policies and prevent “external shocks,” the monetary policy committee said in a statement Monday at the conclusion of its quarterly meeting. The committee reiterated that China’s prudent monetary policy will be targeted and reasonable, and the central bank will keep liquidity reasonably ample.

Quick hits /

Opinion: A proposal to scale up global carbon pricing

Wild ride for top manager shows challenges in China shares

BUSINESS & TECH

Online grocer Dingdong priced its U.S. IPO at the bottom on an estimated range. Photo: VCG

E-grocers /

Update: Chinese online grocer Dingdong’s shares close flat in NYSE debut

Shares of Chinese online grocer Dingdong Maicai closed flat in their debut Tuesday on the New York Stock Exchange after the company radically slashed the size of the initial public offering (IPO) and priced it at the bottom of an expected range.

The stock opened at $28 a share, up 19% from the IPO price of $23.50, and climbed as high as $29.99 before closing at $23.52. At the end of the day, the Chinese startup had a valuation of $5.5 billion, compared with the $5.1 billion valuation after an investment last month by SoftBank’s Vision Fund II.

Dingdong raised $95.7 million in the IPO, selling 4.07 million American depositary shares (ADSs). That was down 70% from the 14 million ADSs the company initially aimed to sell. The IPO was priced at the bottom of the expected range of $23.50–$25.50. The company also cut underwriters’ options for overallotment shares to about 611,000 from the 2.1 million shares previously planned.

Batteries /

Investors stay bullish on battery-maker CATL amid tie-up with Tesla

The share price of Contemporary Amperex Technology Co. Ltd. (CATL), China’s biggest manufacturer of electric-car batteries, soared to record highs after it extended a supply deal with Tesla Inc.

The Shenzhen-listed company’s equities briefly rose as high as 519.60 yuan ($80.46) Tuesday before closing up 2.96% at 508.51 yuan, notching a new closing record for the third successive trading day. The stock has gained 25.8% so far this year.

The spike indicates that investor enthusiasm for Chinese electric vehicle stocks has not diminished significantly in the wake of a “digital recall” of almost 300,000 Tesla vehicles.

Property /

CapitaLand sells controlling stakes in six Raffles City projects to Ping An

Singapore real estate group CapitaLand Ltd. is selling partial stakes in six commercial property projects in Chinese mainland cities to Ping An Life Insurance Co. for less than 33 billion yuan ($5.1 billion).

The portfolio, comprising Raffles City projects in Shanghai, Beijing, Ningbo, Chengdu and Hangzhou, is valued at 46.7 billion yuan, CapitaLand said. The Singapore company said it will retain 12.6% to 30% stakes in each project and will continue to provide asset management services and earn fee income.

Chips /

Chinese CPU designer Loongson wants to raise $500 million in STAR Market IPO

Loongson Technology Corp. Ltd. filed for an IPO Monday on Shanghai’s Nasdaq-style STAR Market, as the central processing unit (CPU) designer looks to raise 3.5 billion yuan ($544 million) amid a government drive to cut reliance on overseas technology suppliers.

The proceeds from the IPO will be used for research and development of chips and graphics processing units and for replenishing working capital, according to the company’s prospectus (link in Chinese).

Quick hits /

BeiGene cleared for $31 billion STAR Market IPO

Six Chinese among finalists for U.S. science award

Baidu-Geely EV venture hires Cadillac’s former lead designer

Energy Insider /

Energy Insider: China expects to raise residential electricity prices; carbon market to expand to eight industries; Tesla recalls cars

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