Caixin
Dec 01, 2021 08:17 AM

CX Daily: China Aviation Stocks Sink as Omicron Clouds Path to Normalization

A China Southern Airlines passenger plane is parked at Xiaoshan International Airport in Hangzhou, Zhejiang province, on Oct. 29. Photo: VCG
A China Southern Airlines passenger plane is parked at Xiaoshan International Airport in Hangzhou, Zhejiang province, on Oct. 29. Photo: VCG

Airlines /

China aviation stocks sink as omicron clouds path to normalization

Shares of major Chinese airlines dipped as the discovery of a new variant of Covid-19 triggered fresh travel restrictions and further obscured the aviation industry’s path to recovery.

To tackle the spread of the omicron variant — first identified in southern Africa early this month and designated a “variant of concern” by the World Health Organization (WHO) Friday — a growing list of countries have restricted flights and nonresidents traveling from some southern African countries.

But flight schedules between China and Africa look to remain stable for the time being.

Gambling /

Macao casino junket king Alvin Chau detained

Macao gambling tycoon Alvin Chau Cheok Wa was detained on allegations of criminal association, illegal gambling and money laundering, police in the special administrative region said Sunday.

Chau, chief executive and controlling shareholder of Macao’s casino operator Suncity Group Holdings Ltd., confessed to establishing overseas gambling platforms and carrying out illegal virtual betting activities, Macao police said Sunday at a press conference. Several of Chau’s associates were also arrested.

FINANCE & ECONOMY

Huarong is to raise as much as 42 billion yuan by selling shares to a group of strategic investors.

Huarong /

Huarong’s strategic investors set up private equity firm

China Huarong Asset Management Co.’s 18 strategic investors jointly formed a private equity firm to inject funds to the troubled bad-debt manager.

Zhongbaorongxin Private Equity Fund Co. Ltd. has registered capital of 14.8 billion yuan ($2.32 billion), according to the business registration database Tianyancha. Jia Biao, president of China Insurance Investment Co. Ltd., is listed as representative of the company.

China Life Insurance (Group) Co. is the largest shareholder of the new company with 19.61%. Additionally, the state-owned insurer acquired 1.96 billion of Huarong’s newly issued Hong Kong-traded shares.

Money laundering /

Central bank targets money laundering using virtual assets

A senior official of China’s central bank suggested establishing a governance mechanism to combat money laundering using virtual assets in the digital era.

With natural isolation from the real world and the nature of interconnectivity, virtual assets can easily become a money laundering tool for criminals, Gou Wenjun, director of the Anti-Money Laundering Monitoring and Analysis Center of the People’s Bank of China (PBOC), said at a financial security summit.

LGFVs /

Local government financing vehicles buy more land to fill hole in official coffers

As cash-strapped property companies became reluctant to bid for land, local government financing vehicles (LGFVs) have stepped in to help authorities make ends meet, but questions remain over whether their purchases can boost local revenues in real terms.

LGFVs have bought more land use rights nationwide starting in the third quarter when the cash crunch at some private property developers worsened, and in some places these vehicles became the major bidders. From July to Nov. 15, LGFVs bought 13.38% of land parcels by value across the country, up 4.38 percentage points from the January-to-June period, according to calculations by brokerage Zhongtai Securities Co. Ltd.

Quick hits /

China’s manufacturing rebounds with signs inflation easing

China issues regulations for settling capital market violations

BUSINESS & TECH

Faraday Future's FF91 electric car on display at the 2017 Consumer Electronic Show in Las Vegas, Nevada, Jan. 7, 2017. Photo: VCG

Electric cars /

Faraday Future disputes delisting concerns after failing to file earnings report

Troubled electric vehicle (EV) startup Faraday Future Intelligent Electric Inc. told stakeholders that its stock is not at risk of being delisted from the Nasdaq, after the bourse issued a warning letter over its failure to file earnings for the third quarter.

Shares of Faraday will be stuck with an “out of compliance” label unless the firm submits a compliance plan within 60 days and releases its earnings within 180 days, according to a Monday statement (link in Chinese) from the company. The company was added to the Nasdaq’s noncompliant companies list Nov. 17.

"We are confident that we will be back in compliance in the relatively near future,” Faraday said in the statement, which was published in Chinese and English on its WeChat account. The company said it was working with the bourse to resolve the issues.

Videos /

Alibaba's Youku wins copyright case against short-video app over clip sharing

Chinese video streaming firm Youku Tudou Inc., a unit of internet giant Alibaba, won a copyright infringement lawsuit it filed against TikTok-like app Kuaishou, with the victory coming after regulators vowed to tighten oversight of such violations by users on short video platforms.

Hong Kong-listed Kuaishou was ordered by the Beijing Internet Court Monday to pay Youku compensation of 460,000 yuan ($72,200) for allowing users to upload content from TV romance series “Skate Into Love” without Youku’s consent, according to a statement provided to Caixin by Alibaba Digital Media and Entertainment Group.

Education /

Chinese star of ‘American Factory’ documentary splurges $1.6 billion to build tech university

The Chinese star of Oscar-winning documentary “American Factory” is now turning his attention to education and plans to build a university with the goal of cultivating applied research and technical talent to bolster China’s self-sufficiency, seen as crucial in the country’s increasing tech rivalry with the U.S.

The Heren Charitable Foundation, founded by Fuyao Glass Industry Group Co. Ltd. Chairman Cao Dewang, who also leads the project, recently announced the signing of a strategic cooperation framework agreement (link in Chinese) for the university’s construction with the city government of Fuzhou in East China’s Fujian province.

WeChat /

Tencent opens WeChat further to rivals as app walls come down

Tencent Holdings Ltd. will soon allow WeChat groups to display links to external shopping sites such as Alibaba’s Tmall and Taobao, taking another step toward dismantling longstanding barriers erected across China’s most popular social media service.

Tencent will begin testing a function to allow group-chat participants to share links to third-party e-commerce platforms, the company said Monday in an official blog post. Directed by regulators, the company will eventually allow WeChat’s users more options for sharing content, though it didn’t elaborate. And it promised to let them tweak settings and take other steps to manage external sharing in the future.

Quick hits /

ByteDance ramps up push into property with 20% stake in real estate broker

Kaisa is next developer worrying China bond traders after rocky month

China gas tumbles most in a decade after ‘big miss’ on earnings

Energy Insider /

Tesla plans $188 million expansion of Shanghai factory

Tech Insider /

Tencent’s $7 billion game, Beijing’s new robotaxis

GALLERY

Nearly 1.5 million sit China’s civil service exam

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