CX Daily: Meituan Faces Fresh Regulatory Trouble Over Mobike Acquisition
Meituan faces fresh regulatory trouble over Mobike acquisition
China’s antitrust watchdog said it is investigating a previous acquisition by food delivery platform Meituan amid a regulatory tightening over the country’s freewheeling internet industry.
The investigation involves Meituan’s $2.7 billion deal in 2018 to acquire bike-sharing startup Mobike, the State Administration of Market Regulation (SAMR) said Monday in a statement, without giving specifics.
The announcement coincided with the release of Meituan’s second-quarter earnings report, in which the company warned that it may have to “make changes to its business practices and may be subject to a significant amount of fines.”
President Xi says more must be done to tackle monopolies
Meituan reports more red ink thanks to new businesses
FINANCE & ECONOMY
Yi Huiman at the Lujiazui Forum in Shanghai in 2020. Photographer: Qilai Shen/Bloomberg
Chinese regulator vows to root out ‘fake’ private equity funds
China’s securities regulator said it plans to rein in the country’s private equity and venture capital funds, stop public offerings disguised as private placements and fight embezzlement of assets.
The China Securities Regulatory Commission will work to root out “fake” private equity funds that are actually sold to the general public instead of targeted investors, Chairman Yi Huiman said in a speech to a fund-industry association. The CSRC will also crack down on money managers that illicitly take public deposits, offer loans or embezzle fund assets.
Top Chinese, U.S. climate envoys to hold meetings in Tianjin this week
China’s special envoy on climate change Xie Zhenhua will meet with his U.S. counterpart John Kerry in the northern city of Tianjin this week to discuss bilateral climate cooperation and the United Nations climate talks scheduled for later this year, according to the Chinese environment ministry.
It will be the pair’s second face-to-face meeting, with the previous in-person discussion taking place in Shanghai in April. Kerry is scheduled to arrive in Tianjin Tuesday and hold meetings with the Chinese side until Friday, according to a statement released Tuesday by the Ministry of Environment and Ecology.
Foreign aid /
China’s International Development Cooperation Agency takes over distribution of foreign aid
The China International Development Cooperation Agency (CIDCA) replaced the Ministry of Commerce to take the lead in distributing China’s foreign aid (link in Chinese), according to guidelines issued Tuesday.
The guidelines, jointly issued by the CIDCA, the Ministry of Foreign Affairs and the Ministry of Commerce, aim to clarify the CIDCA’s role (link in Chinese) in the administration of foreign aid, and specify the responsibilities of executive departments, in an effort to build a “unified, efficient and coordinated foreign aid management system,” a CIDCA statement said.
BUSINESS & TECH
A gamer playing Tencent’s Honor of Kings on mobile phone.
China hammers mobile gaming industry with tough new limits
China limited the amount of time children can play video games to three hours a week, a dramatic blow to the world’s largest mobile gaming market as Beijing continues to crack down on large tech companies.
According to new guidelines from the National Press and Publication Administration (NPPA), online gaming platforms can allow users under the age of 18 to play only from 8 p.m. to 9 p.m. Fridays, Saturdays, Sundays and public holidays, and never during the school week.
The stringent limits on youth gaming time will reduce video gaming companies’ user activity and income, though they maintain that minors account for only a small portion of their revenue. Shares of Chinese gaming stocks plunged Monday in the United States with NetEase falling 3.4%, Bilibili dropping 1.59%, and Tencent Holdings Ltd. down 1.1%.
Electric cars /
Evergrande electric car unit says ballooning losses may force production delays
As China Evergrande Group struggles with a financial crisis, the property developer’s electric car unit is offering little relief, saying that its ballooning first-half loss may force it to delay the start of mass production.
Hong Kong-listed China Evergrande New Energy Vehicle Group Ltd. had a 4.8 billion yuan ($745 million) loss, about twice as much as in 2020, according to its mid-term financial report (in Chinese), which was in line with preliminary figures offered earlier this month.
Moutai chairman ousted after just 18 months in the job
Kweichow Moutai Group Chairman Gao Weidong will be removed from his position at the legacy liquor giant after just 18 months in the top job as local authorities appointed a provincial energy bureaucrat to the role.
The Guizhou Provincial Government said Monday that it tapped Ding Xiongjun to serve as chairman and director of Moutai Group and its subsidiaries.
Hotpot chain Xiabu Xiabu comes to a post-pandemic simmer with 58% revenue boost
Hotpot chain operator Xiabuxiabu Catering Management China Holdings Co. Ltd. reported a 58.5% revenue gain to 3 billion yuan ($463 million) in the first half of 2021 as it stays on track to close about 200 loss-making restaurant outlets by year-end.
The Hong Kong-listed firm, which runs 1,077 restaurants under its flagship Xiabu Xiabu hotpot brand and higher-end Coucou label, cut its losses by 81% to 46.9 million yuan compared with a shortfall of 252 million yuan in the first half of 2020, when the Covid-19 outbreak forced it to close operations.
Quick hits /
China wind turbine maker to launch EV-charging robots
Nippon Steel riding Beijing policy tailwind to record profit
Editorial: What is the key to establishing a healthy government-business relationship?
Energy Insider /
Sinopec swings to profit on oil price rebound
Tech Insider /
GAC looks for private partners, Baidu tests new car, brain disorder startup raises $77 million
Some schools open as delta threat wanes
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