CX Daily: China Tries To Calm Skittish Investors Amid ‘Regulatory Storm’
Capital market /
In Depth: China tries to calm skittish investors amid ‘regulatory storm’
Chinese companies just endured a summer characterized by a “storm of regulation,” leaving their share prices facing a lot more uncertainty. Volatility surged, and many investors got their fingers burnt. Some cried foul, and some called for more predictability in decision-making regarding capital market regulations.
“Policies just came out without any warning and far exceeded expectations, be it inside or outside China,” complained one insider at a U.S.-traded Chinese company.
To quell such complaints, Vice Premier Liu He on Sept. 6 publicly asserted that China’s support for the private economy has not changed and will not change in the future. China, he declared, will let the private economy play a greater role in stabilizing growth and employment while promoting innovation.
Samsung workers protest shutdown of Ningbo shipyard
Workers protested Samsung Heavy Industries’ abrupt decision to shutter its 26-year-old Ningbo shipyard, demanding greater compensation as the South Korean company retreats from a low-profit operation.
Samsung Heavy Industries (Ningbo) Co. Ltd. plans to terminate staff and shut down the operation by year-end, the world’s third-largest shipbuilder said Monday. Thousands of workers gathered at the site, demanding more severance pay, according to video clips provided by workers. In a letter to employees, the company said the Covid-19 pandemic caused serious difficulties for the business.
FINANCE & ECONOMY
China will launch the so-called “southbound leg” of the Bond Connect program Sept. 24. Photo: VCG
Chinese investors to get connected to Hong Kong bond market
Certain institutional investors on the Chinese mainland will soon be able to trade offshore bonds in Hong Kong through a bond connect program that links the two markets, a step sure to attract more capital to the Asian financial hub.
China will launch the so-called “southbound leg” of the Bond Connect program Sept. 24, according to a statement jointly released Wednesday by the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority.
“It is conducive to the diversification of investment channels for mainland institutional investors, to the steady and progressive two-way opening up of the mainland financial markets, to the enhancement of Hong Kong’s competitive advantages and consolidation of Hong Kong’s status as an international financial center, and to the upholding of long-term prosperity and stability of Hong Kong,” the statement said.
Pension insurance funds /
Returns rise for China’s basic pension insurance funds
China’s basic pension insurance funds entrusted for investment achieved an annual return of 10.95% (link in Chinese) last year, the highest since 2016, according to data released Tuesday by the National Council for Social Security Fund (NCSSF).
The return was higher than 9.03% for 2019. According to the NCSSF, the average annual return was 6.89% from 2017 to 2020.
China’s economy weakens on delta outbreak and wary consumers
China’s economy weakened further in August after stringent virus controls curbed consumer spending and travel during the peak summer holiday break, worsening the growth outlook at a time when property curbs are also starting to bite.
Retail sales growth slowed sharply to 2.5% from a year ago, the National Bureau of Statistics said Wednesday, lower than the 7% estimate in a Bloomberg survey of economists. Industrial output rose 5.3%, versus the median estimate of 5.8%. Fixed-asset investment in the first eight months of the year was largely in line with projections, rising 8.9%. The unemployment rate was unchanged at 5.1%.
Hong Kong allows qualified mainland and Macao residents to forgo quarantine
Hong Kong Wednesday resumed a long-delayed program allowing qualified Chinese mainland and Macao residents to enter the city without going through mandatory quarantine, following Chief Executive Carrie Lam’s announcement early last week.
Under the program, up to 2,000 people a day will be allowed to enter the special administrative region, 1,000 through the Shenzhen Bay Port and 1,000 via the Hong Kong-Zhuhai-Macao Bridge Port.
Quick hits /
China Carbon Watch: Trading volume bounces back
BUSINESS & TECH
According to the action plan, employers should not limit their recruitment to male candidates only or give preference to men over women. Photo: VCG
Gender equality /
China’s new human rights plan aims for better protection of women, children
China pledged to better protect women’s and children’s rights, including eliminating workplace gender discrimination and strengthening protection of minors, according to the latest human rights action plan issued by China’s cabinet.
The State Council document, which sets targets for the period from 2021 to 2025, contains more detail on the protection of women’s and children’s rights compared with the previous plan. It includes measures to guarantee equal employment rights, alleviate the burden of child rearing on women, crack down on crimes against minors and prevent juvenile delinquency.
Stanford professors urge U.S. to quit targeting Chinese scholars
A group of Stanford University professors urged the U.S. Department of Justice to end a Trump-era criminal enforcement program targeting Chinese nationals and Chinese American scholars, arguing that the policy reflects racial profiling.
In an open letter to Attorney General Merrick Garland, 177 Stanford faculty members demanded termination of the so-called China Initiative. Launched in late 2018, the program was framed as combating economic espionage, intellectual property theft and other threats associated with China. It later broadened into U.S. academics with a focus on researchers with China origins.
Apple hopes cheaper iPhones will woo Chinese customers
Apple is looking to bolster its tight grip on China’s high-end smartphone market with the launch of cheaper iPhones with more storage capacity as smartphone-makers vie to fill the void left by Huawei.
On Tuesday, the U.S. tech giant unveiled its iPhone 13 series, including “Mini,” “Pro” and “Pro Max” versions, ranging from 5,199 yuan ($806.67) up to 8,999 yuan. The four models came in at 300 yuan to 500 yuan cheaper than their counterparts in the iPhone 12 series, launched last year.
Chinese internet firms told to tear down ‘walls’ that block links to rivals
Chinese internet firms have yet again been urged to stop blocking each other’s links — the so-called “walled gardens” technique used to protect their own digital ecosystem — in the latest of the flurry of government moves targeting tech sector practices deemed anticompetitive.
“We will urge related companies to follow requirements and open up links to each other’s instant messaging platforms step by step,” Zhao Zhiguo, the general director of the Ministry of Industry and Information Technology (MIIT) Information and Communication Management Bureau, said at a Monday press conference.
Quick hits /
China to form new China Power Equipment Group
China KFC operator warns third-quarter profits may be slashed in half on delta outbreak
Undeterred China vaccine-maker reapplies for Hong Kong IPO after rejection
Hot Topics /
Denmark lifts Covid restrictions, Chinese Embassy slams U.K. parliament’s ban on envoy, Putin self-isolates
Zhengzhou metro back on track
Thanks for reading. If you haven’t already, click here to subscribe.
- MOST POPULAR