CX Daily: China Vows to Tighten Oversight of Overseas Listed Firms After Didi Probe

Scrutiny /

China vows to tighten oversight of overseas listed firms after Didi probe

China will step up scrutiny of overseas traded Chinese companies, the State Council said Tuesday, shortly after regulators put the newly listed ride hailing giant Didi Global Inc. under a cybersecurity investigation.

The State Council, China’s cabinet, issued new guidelines to crack down on illegal activity in the securities market. According to the document (link in Chinese), China will strengthen oversight of Chinese companies listed abroad and improve regulations for cross-border data flows and security.

In the document, the cabinet pledged to set up a supervisory system to tackle risks and emergencies related to overseas listed companies. Rules for overseas listings will be revised, the State Council said.

Analysis: Didi’s fate and China’s overseas share sale policies

FINANCE & ECONOMY

Last year, China’s social insurance fund, which includes the basic state pension funds run by provincial-level governments, reported the first annual deficit on record. Photo: VCG

Pension /

China commits to raising retirement age as pension shortfall looms

China laid out its strategy to tackle its looming pensions crisis over the coming five years as a rapidly aging society and a shrinking workforce threaten the sustainability of the existing system.

The government will further expand the coverage of the basic state pension insurance system managed by provincial-level governments, encourage the growth of the occupational pension and private pension sectors, and delay the legal retirement age, according to the 14th five-year work plan (link in Chinese) released by the Ministry of Human Resources and Social Security last Tuesday. The plan doesn’t provide detailed policies or give a timetable for raising the retirement age.

Trade /

China-U.K. business group says ties are strong, growth prospects are good

Business ties between China and Britain remain strong with excellent prospects for future growth, participants said at a virtual meeting attended by Chinese Premier Li Keqiang and senior U.K. business leaders Tuesday.

“U.K.-China trade has increased against all odds; investment is also on the rise,” Li said through an interpreter. “These trends show that between China and the U.K. there are not just shared interests, but space for growth.”

The meeting was attended by representatives from 25 companies including HSBC Holdings PLC, BP PLC, Jaguar Land Rover Ltd., AstraZeneca PLC, Reckitt Benckiser Group PLC, Jardine Matheson Holdings Ltd. and Rio Tinto PLC.

China-EU /

Beijing willing to hold China-EU summit as soon as possible

Chinese President Xi Jinping said Monday that China is willing to hold this year’s China-EU summit “as soon as possible” with European leaders in a bid to expand bilateral cooperation.

During a virtual meeting with French President Emmanuel Macron and German Chancellor Angela Merkel, Xi said China is also ready to organize high-level dialogues in the fields of strategy, economy and trade, culture, digital and climate change, according to a statement released by the Chinese foreign ministry.

Securities /

Court gives nod to restructuring of state-linked Peking University Founder Group

A Beijing court approved a plan for the restructuring of state-linked Peking University Founder Group Corp. and four of its units, according to a statement (link in Chinese) released Monday by the court-appointed administrator managing the process.

The court’s approval marks a substantial step for the once high-flying Chinese conglomerate as it works to crawl out from the heap of debt it amassed during a wild expansion spree.

Quick hits /

Chinese companies see surge in offshore ESG bond issuance

Shrinking capital investment drives down Caixin New Economy Index

Third lockdown imposed on Southwest China border town after delta variant appears

BUSINESS & TECH

Wu Jingang joined SMIC in 2001 and rose to his most senior role in its research arm in 2014. Photo: VCG

SMIC /

Key researcher leaves Chinese mainland’s leading chipmaker

Semiconductor Manufacturing International Corp. (SMIC) said a key member of its research team is leaving the company, compounding what has so far been a turbulent year for the Chinese chipmaker.

Wu Jingang resigned as the Hong Kong and Shanghai-listed foundry’s vice president of research and development citing personal reasons, SMIC said in a Monday stock filing (link in Chinese).

The company veteran of 20 years spearheaded the development of the fin field-effect transistor (FinFET) technology that helped SMIC to develop smaller and more powerful chips, according to a person close to the enterprise.

Visas /

China urges U.S. to reconsider alleged visa denials to hundreds of grad students

China urged the U.S. to reconsider its denial of study visas to more than 500 Chinese science and engineering graduate students following a report published by the official China Daily.

Most of the students, who are planning master’s or doctoral studies, applied for their visas after U.S. President Biden took office in January, according to the state-run media outlet’s report, which cites an unnamed source familiar with the matter.

Debt /

Alibaba joins $1.36 billion state-backed bailout of debt-ridden Suning.com

After months of financial turbulence, cash-strapped e-commerce giant Suning.com Co. Ltd. announced an 8.8 billion yuan ($1.36 billion) bailout by a consortium backed by Alibaba Holdings Co. Ltd. and several government funds.

The bailout comes in the form of an equity transfer deal involving four major shareholders, including the founder of Suning.com’s parent, Zhang Jindong, who transferred a 16.96% stake in the Jiangsu province-based company to a fund created by the rescue consortium, according to a company filing (link in Chinese) published late Monday.

Chips /

China’s Wingtech buys troubled top U.K. chipmaker

Chinese-owned Dutch semiconductor company Nexperia said it acquired Britain’s largest chipmaker, the financially troubled Newport Wafer Fab (NWF), a step that could further China’s ambitions to build up its sector for high-tech chips that power most modern electrical devices.

No value was given for the transaction, though CNBC reported it was worth about 63 million pounds ($87 million).

Nexperia’s Chinese owner Wingtech Technology Co. Ltd. confirmed the deal in its own separate announcement (link in Chinese) Monday, though it said the deal is subject to customary closing conditions.

Quick hits /

Steelmaker Baowu picks Honeywell to power its decarbonization push

HNA sued over missed payments on $23 million apartment mortgage

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