Oct 02, 2021 05:00 PM

Weekly Must-Read: What’s Behind China’s Regional Power Outages

A high-voltage power transmission tower is installed in Harbin, Northeast China’s Heilongjiang province, in November 2020. Photo: VCG
A high-voltage power transmission tower is installed in Harbin, Northeast China’s Heilongjiang province, in November 2020. Photo: VCG

The Caixin Must-Read newsletter brings you the best of our coverage over the past week, handpicked by our editors.

# Power Crunch #

What’s Behind China’s Regional Power Outages

A coal shortage and a resurgent economy are forcing electricity rationing to industry and households alike

Analysis: Severe Coal Supply-Demand Imbalance Challenges Winter Supply

Many provinces impose power rationing as surging power demand runs into supply constraints; high prices and shortages of coal reflect past regulatory crackdown

Opinion: Supply/Demand Mismatch, Price Caps to Blame for China’s Power Shortage

Power generators are being squeezed by low prices, capacity constraints as demand far outstrips supply; conservation and emissions measures add to problem are but not to blame

Power Shortages Take the Juice Out of China’s Manufacturing, Caixin PMI Shows

Purchasing Managers’ Index rose to 50 in September, the second-lowest reading in 17 months as an electricity supply squeeze and rising raw material prices dampened factory production

# Cover Story #

China’s Assault on Big Tech’s ‘Walled Gardens’

Business growth models of Tencent, Alibaba, ByteDance and rivals face risks as government presses them to quit blocking links to one another’s services

# Gallery #

UNESCO Site Jiuzhaigou Completely Reopens


# Business #

In Depth: Local Governments Take Control of Evergrande’s Revenue From Home Presales

The change forces the heavily indebted developer to prioritize finishing construction on homes it has already sold over paying back its creditors

In Depth: Behind HNA’s Fall, a Web of Nepotism Spreading from New York to Hainan

Brothers of now-arrested Chairman Chen Feng and late co-founder Wang Jian wove a web of businesses that conducted secret dealings with bankrupt conglomerate

# Finance #

In Depth: How Evergrande’s Founder Played the Capital Markets

Hui Ka Yan had a knack for creating hype that drove the debt-ridden developer to a stratospheric valuation, allowing it to borrow ever larger amounts

In Depth: Evergrande Founder’s Poker Buddy Folds on Teetering Developer

Stalwart investor Chinese Estates unloads shares of world’s most indebted property developer as its tumbling stock price drive losses into the billions

Tip Sheet: Clues to Evergrande’s Fate May Lie With Past Rescues

Restructuring of HNA and Huarong could offer insights into what’s in store for embattled property developer

# World #

China’s Increasingly Inward Turn Could Bring ‘Negative’ Long-Term Impact, EU Firms Say

China should recommit to ‘increasing integration in global economy,’ chamber of commerce paper says


# China #

In Depth: How a ‘Patent Troll’ Ended Up Behind Bars

Li Xingwen has sued plenty of companies for violating his hundreds of patents. But his tactics in suing a pre-IPO company seem to have gone too far

# Region #

Power Outages Are Putting Lives at Risk in China’s Energy-Rich Northeast

In Liaoning province, 23 people require hospitalization after a power cut at a factory shut down ventilation, leading to carbon monoxide poisoning

Power Supply Squeeze Leads Several Chinese Provinces to Impose Restrictions

Hunan, Guangdong, Liaoning, Jilin and Heilongjiang are resorting to power cuts and rationing on industrial users, though some residents have also been affected

Zhejiang Orders Production Suspensions to Meet Energy Targets

Textile, dyeing and chemical fiber companies affected by China’s campaign to cut climate-changing greenhouse gas emissions

# Research & Analysis #

Global Tax Reform Is On Track, but Hurdles Remain

The final agreement on the tax reform will be released next month; EU-wide agreement and U.S. Congress approval are key

# Evergrande Crisis #

Heavily indebted China Evergrande Group, one of the country’s largest property developers, is suffering a liquidity crisis after years of running a highly leveraged business. The company’s troubles have already started to reverberate through China’s economy and markets around the world.

# Newsletter: Top Stories of the Month #

Caixin Global’s Top Stories of the Month newsletter brings you the most popular news coverage over the past month. If you would like to receive this free newsletter delivered into your email inbox monthly, please opt-in here.

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