Caixin
Oct 20, 2021 09:58 AM
CHINA

CX Daily: The Volatile Cocktail Stirring Up China’s ‘Baijiu’ Market

 
 

Liquor /

In Depth: The volatile cocktail stirring up China’s 'baijiu' market

The new top man at the world’s most valuable liquor company means business.

During a shareholders meeting last month, Kweichow Moutai Co. Ltd.’s new Chairman Ding Xiongjun pledged a series of long-term changes to make the distiller the first Fortune Global 500 company based in Guizhou, one of China’s poorest provinces.

But the market faces slowing sales growth, increasing regulatory scrutiny of stocks seen as bloated with capital and a potential industrywide consolidation.

VPN /

Beijing gets green light to open VPN services to foreign investors

The municipal government of Beijing won approval from the State Council to give foreign investors limited access to virtual private networks (VPNs), a sector the Chinese government has been closely monitoring since 2017 over cybersecurity concerns.

The State Council, China’s cabinet, announced on its website (link in Chinese) Monday a decision to allow foreign telecom companies to establish joint ventures, their ownership capped at 50%, to provide VPN services to foreign businesses operating in Beijing.

FINANCE & ECONOMY

 

Xi Jinping

Common prosperity /

Full Text: Xi Jinping's speech on boosting common prosperity

Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president, addressed China’s commitment on common prosperity at the 10th meeting of the Central Committee for Financial and Economic Affairs in August. Excerpts of the speech were published by party journal Qiushi Friday.

“To achieve common prosperity for 1.4 billion Chinese people, we must take concrete, long-lasting actions,” Xi said. “It does not mean simultaneous prosperity for everyone or the same level of affluence across the country. The degree of prosperity of different groups and regions and the time of achieving prosperity may vary. Common prosperity entails a process of moving forward amid developments and must be constantly promoted for continuous success.”

Wealth management /

First batch of banks begin cross-border wealth management connect services

The first batch of banks began providing services under the wealth management connect (WMC) trial program Tuesday morning, allowing certain residents on the Chinese mainland, Hong Kong and Macao to make cross-border investments.

On Tuesday, retail investors in the two special administrative regions invested 15.4 million yuan ($2.4 million) in mainland wealth management products, and 17.7 million yuan of mainland investment went the other way, according to a statement (link in Chinese) from the Guangzhou branch of the central bank.

Jobs /

Battling youth unemployment, China to open more coveted civil service jobs to fresh grads

The Chinese government plans to offer more positions to candidates who will take the civil service examination starting in late November, with nearly 70% of vacancies open to fresh college graduates next year, according to the National Civil Service Administration (NCSA).

The country aims to recruit 31,200 people (link in Chinese) through its 2022 National Civil Service Examination, an increase of more than 5,000 over last year, according to a NCSA statement on Thursday. The jobs on offer are in 75 government agencies and 23 institutions directly attached to them.

Covid-19 /

Authorities scramble to control multiregion Covid outbreak linked to infected tourist group

Health authorities in China are scrambling to control a multiregion Covid outbreak linked to a group of eight people who tested positive after traveling together to Inner Mongolia and Gansu province.

Cases connected to the group have been reported in at least four provincial-level regions, including Beijing, according to local health authorities.

Quick hits /

Hong Kong regulator probes PwC on Evergrande audit

Singapore life insurers have little or no exposure to Evergrande fallout

Opinion: As nature fights back, world needs to mobilize to cut emissions

BUSINESS & TECH

longread10

Representatives of more than 400 creditors participated in a meeting, claiming more than 100 billion yuan ($15.5 billion) of debts.

Representatives of more than 400 creditors participated in a meeting, claiming more than 100 billion yuan ($15.5 billion) of debts.

Chips /

Exclusive: Seven investors in Unigroup takeover talks

Tsinghua Unigroup Co. Ltd. is in talks with seven strategic investors including state-owned China Electronics Corp. and e-commerce giant Alibaba Group, Caixin learned.

The talks suggest that the restructuring of the once high-flying chipmaking conglomerate to resolve massive debt woes is accelerating. Unigroup, majority owned by Tsinghua University in Beijing, held its first meeting with creditors online to review its debt obligations, the company said in a statement Monday on its official social media account.

Representatives of more than 400 creditors participated in the meeting, claiming more than 100 billion yuan ($15.5 billion) of debts, an attendee told Caixin. Although Unigroup’s businesses are generating less than 100 billion yuan in annual revenue, the company still has the capacity to repay the debts, the person said.

Alibaba /

China’s warring internet giants start dismantling their barriers

Internet giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd. are starting to tear down the walls that divide them.

Shoppers buying goods on Alibaba’s internet shopping platform Taobao will soon be able to share their shopping carts on group chats and Facebook-like “Moments” pages in China’s most-used social media app, Tencent-run WeChat, for the first time, Caixin learned. Alibaba is testing the new function and expects to launch it Oct. 27 ahead of the annual “Double Eleven,” China’s Black Friday shopping extravaganza, the company told Caixin. Tencent declined to comment.

Tax evasion /

Chinese actress’s ex fined $5 million for his part in tax evasion scheme

Zhang Heng, the former partner and agent of troubled Chinese actress Zheng Shuang, has been fined 32.27 million yuan ($5 million) for helping Zheng hide her income and evade tax obligations amounting to more than 43 million yuan.

Zhang, who exposed the actress for tax evasion on social media in late April after a falling-out, was found to have taken part in covering up Zheng’s sky-high salary for her role in the drama, “A Chinese Ghost Story” in December 2018, enabling the actress to evade taxes, according to a notice (link in Chinese) published Monday on the website of the State Taxation Administration’s Shanghai branch.

Quick hits /

Huawei wins contract for Saudi energy storage project as it expands into new businesses

China rebuts report it tested nuclear-capable hypersonic missile

JD Logistics goes plane shopping to tap air freight demand

Energy Insider /

Baosteel, Toyota face patent infringement suit by Nippon Steel

GALLERY

Olympic flame lit for Beijing Winter Games

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