CX Daily: Six Things To Know About China’s ‘Southbound Bond Connect’ Program

Bonds /

Six things to know about China’s ‘Southbound Bond Connect’ program

More than four years after China launched the northbound channel of a bond connect program that allows overseas investors to trade bonds on the Chinese mainland through Hong Kong, the southbound leg was finally launched Sept. 24.

On the first day of trading, more than 150 deals were made via the Southbound Bond Connect between more than 40 mainland institutional investors and 11 Hong Kong market makers. The transactions covered almost all major types of bonds on the Hong Kong market, with a total volume of about 4 billion yuan ($620 million).

The launch of the southbound leg finally completes the two-way program. It is expected to broaden the types of investment alternatives available to mainlanders, further inject mainland capital into Hong Kong and attract more companies to issue bonds in the Asian financial hub.

FINANCE & ECONOMY

Energy /

As power outages continue, Li Keqiang urges greater energy self-sufficiency

China should improve its self-reliance in energy supply, Chinese Premier Li Keqiang said Saturday at a meeting of the national energy committee as regions across the country grapple with power shortages and blackouts.

He also noted that the country should set a phased timetable and a roadmap for its carbon emission peak target, according to the state-run Xinhua News Agency.

Since late September, many parts of China have suffered severe electricity supply shortages, with local governments imposing power cuts and rationing on industry users and residents.

Wang Tao: Why is China suffering a power shortage?

Inspection /

China starts inspection of financial regulators, state banks

Chinese authorities are kicking off an inspection of the nation’s financial regulators, biggest state-run banks, insurers and bad-debt managers for the first time in six years as Beijing steps up efforts to root out corruption in the $54 trillion financial system.

A team led by the Central Commission for Discipline Inspection will start a two-month anti-graft check of the China Banking and Insurance Regulatory Commission (CBIRC), and accept complaint reports from whistleblowers until Dec. 15, according to a statement released late Monday.

Rainfalls /

More northern China regions hit by heavy rains, risking coal supply

While severe flooding in northern China’s Shanxi province caused landslides and the closing of dozens of coal mines, neighboring Shaanxi province also suffered heavy rains that overtopped dams.

The unprecedented deluges and flooding in the coal-rich region add to a massive national power crisis as the two provinces together supply nearly half of China’s coal.

Quick hits /

IMF board decides to keep Georgieva as chief after data scandal

BUSINESS & TECH

Huawei flagship store on Nanjing Road, Shanghai. Photo: VCG

Smarting from dismal phone sales, Huawei looks to logistics and energy

Huawei Technologies Co. Ltd. is further expanding its business beyond its core telecom gear and electronics offerings into the logistics and energy industries just a few months after the company opened a lab dedicated to coal mining technology.

The Shenzhen-based company has created four new divisions known as “corps,” a Monday internal note reads. Xun Su will be CEO of the Customs and Port Corps, Ma Yue of the Smart Highway Corps, Charles Yang of the Data Center Energy Corps, and Chen Guoguang of the Smart Photovoltaic Corps. The last two will report to Hou Jinlong, the president of Huawei Digital Power Technologies Co. Ltd.

Biodiversity /

Xi pledges cash to help developing countries support biodiversity

China’s President Xi Jinping pledged Tuesday to set up a fund with an initial contribution of 1.5 billion yuan ($232.5 million) to support biodiversity in developing countries.

Xi made the announcement during a speech delivered at a United Nations biodiversity conference in the southwestern city of Kunming, Yunnan province. He said China calls on and welcomes other parties to contribute to the biodiversity fund.

Fraud /

Businessman gets life sentence for defrauding Xinjiang breeder

A businessman behind a 2.4 billion yuan ($372 million) deal to help a money-losing Xinjiang-based livestock breeder avoid delisting four years ago was sentenced to life in prison for contract fraud.

The case involved a 2017 restructuring deal between Xinjiang Tianshan Animal Husbandry Bio-Engineering Co. Ltd. and Guangdong Elephant Advertising Co. Ltd. Shenzhen-traded Tianshan Animal Husbandry, which develops cattle breeding and genetic improvements, had reported losses for two straight years and faced being kicked off the exchange. To prevent that, the company agreed to acquire ChiNext-traded Elephant Advertising for stock and cash.

Coca-Cola /

Coca-Cola plans to stay nimble to take on hip local brands

Facing challenges from domestic brands and rising production costs, a bottler of Coca-Cola Co., one of the world’s largest nonalcoholic beverage makers, says it can remain competitive in China’s soft-drink market thanks to its strong sales network and ability to rapidly connect new products with consumers.

The remarks by Su Wei, president of Swire Coca-Cola Ltd. during an interview Sunday with Caixin, came as several local upstarts are becoming increasingly popular with Chinese consumers, even though they sell some of their products at higher prices than Coca-Cola.

Quick hits /

China aims to give online cosmetics sales a makeover

Sino-U.S. natural gas deal offers fuel for a thaw in relations

Syngenta $10 billion China IPO plan paused for earnings data

Energy Insider /

State Grid secures power supply amid energy shortage

Tech Insider /

Xiaomi bulks up, Huawei sprawls

GALLERY