CX Daily: Four Things To Know About China’s Latest Crackdown On Cryptocurrencies

Cryptocurrencies /

Four things to know about China’s latest crackdown on cryptocurrencies

As Bitcoin mania grips the world, China has opened a new front in its war on cryptocurrencies.

From the miners that produce the virtual assets and the local governments that host them, to the exchanges that provide the trading platforms and the financial institutions that facilitate the traders who use them, everyone is under attack.

The aim — to crush speculation that could threaten financial stability, prevent fraud and money laundering, and choke off a booming crypto mining industry that’s jeopardizing efforts to cut power consumption and curb pollution.

Bitcoin hammered again as China continues cryptocurrency crackdown

Didi /

Didi accused of failing to disclose warning to delay IPO in class action suit

Didi Global Inc. was accused of misleading investors in two class action lawsuits in the U.S., with one arguing that the ride-hailing giant did not disclose a warning from China’s internet regulator to delay its New York IPO until it had reviewed its network security.

The claim, which if proven could put the Chinese firm in breach of U.S. disclosure rules, further complicates the impact of Beijing’s national security crackdown on Didi’s domestically dominant ride-hailing app, Didi Chuxing. Company representatives did not respond to multiple Caixin requests for comment Wednesday.

Timeline: Didi’s rocky road

Didi plunges below IPO price as China expands crackdown

FINANCE & ECONOMY

Decorations at Tiananmen Square in Beijing to celebrate the CPC centenary.

Leadership /

Xi calls for world leaders to cooperate in addressing global challenges

Chinese President Xi Jinping called for global political leaders to strengthen coordination and cooperation, align the interests of their own people with those of people around the world and move toward building a community with a shared future for mankind.

Xi made the call in a keynote speech Tuesday via a video link from Beijing at the Communist Party of China (CPC) and World Political Parties Summit, a virtual meeting of more than 500 leaders of political parties and political organizations from 160-plus countries. The summit is hosted by the CPC’s International Department.

“From the perspective of ‘one’s own country first,’ the world is a small and crowded place with fierce competition all the time,” Xi said. “From the perspective of sharing a common future, the world is broad with opportunities for cooperation everywhere.”

IPO /

Hong Kong to shorten IPO process to attract listings

The Hong Kong Stock Exchange is planning to shorten the time between the pricing of a company’s IPO and its trading debut to two days from five as part of efforts to make the listing process more efficient and lure more companies to go public in the city.

The revamp will happen through a new web-based service called Fast Interface for New Issuance (FINI), which will enable IPO market participants, advisers and regulators to interact digitally and coordinate more effectively throughout the IPO process, according to a statement released Tuesday by the bourse operator, Hong Kong Exchanges and Clearing Ltd. (HKEX). The change is slated to take place in the fourth quarter of next year at the earliest.

Trade /

New Zealand open to talking with economies interested in joining CPTPP trade pact

New Zealand is open to engaging informally with other economies that have shown interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an 11-country free trade agreement, New Zealand’s Ambassador to China and Mongolia said in an interview with Caixin.

Clare Fearnley, a fluent Chinese speaker who has spent almost 16 years of her diplomatic life in North Asia, said the “CPTPP’s objectives of maintaining and growing open rules-based trade have contributed to the post-Covid economic recovery not only in the Asia-Pacific region, but also beyond.”

Quick hits /

Road to COP26: Unlocking the power of fintech to tackle the global climate challenge

BUSINESS & TECH

Shengdu provides home renovation services in seven provinces and municipalities. Photo: VCG

Property /

Realty giant KE remodels itself with $1.2 billion renovation purchase

Leading residential property agent KE Holdings Inc. agreed to buy Shengdu Home Renovation Co. Ltd. for as much as 8 billion yuan ($1.24 billion) in one of its biggest purchases yet and the first major one since the death of its founder in May.

Founded nearly two decades ago in the eastern coastal city of Hangzhou, Shengdu provides home renovation services in seven provinces and municipalities, KE said in its announcement late Monday. KE owns the Lianjia residential real estate agency chain as well as the newer online Beike. It added its own home renovation services product, Beiwoo, to its lineup in 2019.

Antitrust /

China’s tech companies slapped with another series of 500,000 yuan antitrust fines

China’s market regulator issued another series of 500,000 yuan ($77,338) fines against some of the country’s biggest tech enterprises in 22 antitrust cases.

Companies including Alibaba Group Holding Ltd., Tencent Holdings Ltd. and Suning.com Co. Ltd. were found to have broken Article 21 of China’s Antimonopoly Law, the State Administration of Market Regulation (SAMR) said Tuesday in a statement.

The provision requires businesses to make a declaration to the State Council, China’s cabinet, when they plan to merge with or acquire other businesses in a way that could give them excessive control over the market.

Pollution /

Hundreds of Chinese companies still pumping out too much pollution, inspections find

Almost one out of every two Chinese companies inspected by regulators was found to have numerous air pollution issues, with those in the building materials and chemical and pharmaceutical sectors among the biggest culprits, according to the environment ministry.

Of the 1,582 companies inspected in 30 cities in May, 882 were found to have a total of “1,940 issues related to air pollution of the environment,” according to a statement released Monday by the Ministry of Ecology and Environment.

The inspections targeted companies in highly-polluting “key industries” including iron and steel, petrochemicals and building materials.

Energy /

Shanghai Electric shares fall 4.8% as regulator launches disclosure probe

Investors deserted energy and industrial equipment manufacturer Shanghai Electric Group Co. Ltd. after the Chinese securities regulator said it was probing its failure to disclose information in the wake of the company’s revelation in May that it was owed billions of yuan in repayments.

Shares of Shanghai Electric fell 4.8% Tuesday after its late Monday announcement (link in Chinese) that it was being investigated by the China Securities Regulatory Commission over violations of disclosure rules. No details were given.

Quick hits /

Weibo denies report of plans to take company private

Tencent uses facial scanning to force minors to stop gaming at night

Trending in China: Aerospace executive detained after attack on scientists

Energy Insider /

Energy Insider: Shanghai Electric probed for disclosure violations; Sinopec builds China’s largest carbon-capture project

Hot Topics /

China marks anniversary of start of war with Japan, Xi’s call for cooperation, South Korean development

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