Caixin
Oct 29, 2021 10:30 AM
CX DAILY

CX Daily: JD.Com’s Rocky Road To Take The Finance Out Of Its Fintech Unit

JD.com /

In Depth: JD.com’s rocky road to take the finance out of its fintech unit

The abrupt suspension of the Ant Group IPO in November last year has reverberated across China’s fintech sector and caused dozens of casualties, one of which has been the fintech arm of JD.com, a leading Chinese e-commerce company. Known back then as Jingdong Digits Technology Holding Co. Ltd. (JD Digits), the company was later forced to abandon its IPO plan in the middle of the process.

While Nasdaq-listed JD.com Inc. has long been widely seen as one of China’s top online retailers, the growth path of its fintech arm has been anything but consistent. Even its name has changed several times. It started as JD Finance as early as 2013, before changing monikers to JD Digits in November 2018.

A little more than two years after that, JD Digits changed its name again. Since January, it has been rebranded as JD Technology.

Evergrande /

Hong Kong luxury villa linked to Evergrande’s Hui pledged for loan

An associate of Hui Ka Yan, chairman of troubled China Evergrande Group, recently put up a luxury house in Hong Kong for loan collateral as the billionaire and his property empire face an escalating debt crisis.

A property on Hong Kong Island’s Black’s Link trail, known for its wealthy communities and expansive views, was pledged Oct. 19 to the local branch of China Construction Bank, documents from the city’s Land Registry showed. Market observers estimate the property’s value at HK$700 million ($90 million).

FINANCE & ECONOMY

 

Bonds /

Overseas investors in Chinese bonds get four more years of tax breaks

Policymakers decided to extend a tax break for overseas investors in China’s onshore bond market for four years as enthusiasm for the market’s relatively high yields continues to grow.

Overseas institutional investors’ income from bond interest will be exempt from corporate income tax and value-added tax (VAT) until the end of 2025, according to a statement issued after a State Council executive meeting chaired by Premier Li Keqiang. The exemption, launched in 2018, was originally scheduled to expire in early November.

The extension aims to encourage foreign investment in China, according to the statement.

Tax /

China’s hard-hit smaller manufacturers given more time to pay their taxes

China’s cabinet gave micro, small and midsize manufacturing enterprises the option to take up to three months longer to pay their fourth-quarter taxes.

The State Council’s decision aims to provide more financial breathing room to these enterprises, which have been hit by rising commodity prices and production costs, according to a readout (link in Chinese) of a cabinet executive meeting Wednesday. The measure is expected to defer about 200 billion yuan ($31.3 billion) in taxes until the following quarter.

Futures /

China’s coal futures continue dropping amid price cap talk

China’s thermal coal futures fell by the daily limit of 10% Wednesday as the country’s top economic planner reportedly is moving to cap the price of the fossil fuel to ease a power shortage.

The most-active thermal coal contract on the Zhengzhou Commodity Exchange fell to 1,144.6 yuan ($177) a ton, extending a decline that drove the contract down 30.5% in a week.

Violations /

Four local governments violated debt policy on eight projects, audit finds

Four local governments with high debt risk violated rules in construction of government buildings, hotels and convention centers, China’s State Council found in an audit of local governments’ spending.

A rule implemented in 2017 banned local governments and organizations from building venues and facilities with accommodation, conference, catering and other reception functions. With local government debt rising, the central government ordered local governments with high debt levels to vigorously reduce operating expenses of government offices and outlays for construction.

Quick hits /

China targets vegetable hoarders after cost of spinach surges

China tells U.S. to stop playing ‘Taiwan card’

BUSINESS & TECH

The signing ceremony of strategic cooperation between Yili group and Ausnutria held in Beijing. Photo: Yili

Diary /

Chinese dairy giant Yili files plan to buy one-third of rival Ausnutria

Shares of Chinese dairy giant Inner Mongolia Yili Industrial Group Co. Ltd. edged up a whisker Thursday on news the company would try to buy a 34.33% stake in Hong Kong-listed rival Ausnutria Dairy Corp. Ltd. as a way into the goat milk powder market.

According to an exchange filing Wednesday, Yili signed deals with a group of Ausnutria shareholders — including Citic Agricultural Industry Fund Management Co. Ltd. and Dutch Dairy Investments HK Ltd. — to pay HK$6.25 billion ($803.56 million) for their combined 531 million shares in the company via its wholly owned subsidiary Hong Kong Jingang Trade Holding Co. Ltd.

Shanghai-listed Yili will also buy an additional 90 million new shares in Ausnutria via Jingang, the filing added, saying that the share acquisition deals will make Yili the biggest shareholder in Ausnutria.

Education /

China’s capital takes aim at tutoring industry segment that escaped crackdown

China’s capital is tightening oversight on after-school tutoring companies that offer courses on subjects outside the core school curriculum, Caixin learned, as part of the ongoing national campaign to take some of the pressure off the country’s notoriously overworked students.

The change marks the expansion of a local crackdown on the industry to a segment that had until recently escaped the sweeping education reforms that have shaken up China’s after-school tutoring industry.

Magnesium /

Magnesium prices down 40% in key China production hub as lights come back on

Prices of magnesium in China’s key production region have dropped as much as two-fifths from a record high in September as smelters ramp up output amid ongoing concerns about a global supply shortage.

The cost of the key raw material, which is a widely-used alloying element in the production of aluminum for cars and bikes, soared last month as power shortages forced local authorities in Northwest China’s Shaanxi province to halt or limit production at many factories.

Batteries /

EV-battery maker CATL’s third-quarter profit surpasses expectations

Chinese electric vehicle battery-maker Contemporary Amperex Technology Co. Ltd. (CATL) posted gains of around 130% in both revenue and profit amid surging demand for new-energy vehicles (NEV) in the world’s largest auto market.

In the three months through September, the company’s net profit attributable to ordinary shareholders totaled 3.3 billion yuan ($515.8 million) on revenues of 29.3 billion yuan, according to its latest earnings report Wednesday.

Quick hits /

New-energy billionaires race up China’s rich list

China’s wind giant sees demand boom resuming after 2021 pause

Tim Hortons China hits 300 stores undeterred by listing delay

GALLERY

The building of Tesla’s Shanghai Gigafactory

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